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Start A Carpet Cleaning Business

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By: Scam Risk - Expert Reviewer

How To Start A Carpet Cleaning Business (in 2021): 11 Things You Need To Know!

In this review, I want to cover everything you need to know about how to start a carpet cleaning business.

And while we’re on the topic…

The information that I’m going to share with you is the exact same data that over 83.7% of readers have found crucial in deciding what direction they want to take about making money in this industry.

But before we get started…

I know that you probably have a few pre-conceived concerns about starting a carpet cleaning business, but when you finish this review, I’m sure you will be confident in whatever choice you make.

So, with that said, let’s jump right in!

Table of Contents

Is Carpet Cleaning A Good Business To Start?

Carpet cleaning companies are mobile, so they can be more flexible and cost-effective than businesses with physical locations.

Instead of worrying about keeping a store open, you can be on the move meeting with clients and cleaning homes, offices, and other places, and above all, be your own boss.

A carpet cleaning company may be the right business for you if you can pay attention to detail and want to start with a small investment.

Towards the end of this article, you’ll find answers for some of the most frequently asked questions on how to start a carpet cleaning business and other online alternatives.

But most importantly, you’ll be shown a system that many others have used to build their own business to over $40,000 a month in mostly passive income.

How To Start A Carpet Cleaning Business: Overview

Businesses that specialize in carpet cleaning offer residential, commercial services, or both. These services include deep-cleaning carpets, rugs, and upholstery.

Some companies offer additional services, such as carpet dyeing or carpet restoration.

These businesses have access to professional-grade equipment, which isn’t available to the average homeowner or business owner.

They can do a deeper cleaning to remove stains and dirt from carpets that other retail products cannot.

You can have one person and a cleaning van, or you could have several employees.

Unfortunately…

Since carpet cleaning isn’t something clients need every day or even monthly, you need a steady client base.

Industry Summary

The carpet cleaning industry, according to IBIS World, will bring in $5.4 Billion in 2019.

Between 2015 and 2019, there was a greater demand for carpet cleaners due to increased disposable income rates and the growing number of households formed.

At the same time, there was a decrease in vacant offices, which resulted in a higher demand for commercial cleaning services.

In 2019, there were 34,852 carpet-cleaning businesses, with 69,840 employees.

Industry Trends

The number of offices occupied and disposable income correlates to the demand for carpet cleaning services. Office buildings make up nearly a third of commercial cleaners.

Therefore, an economy that negatively affects carpet cleaning businesses could have significant consequences.

Franchise cleaning companies account for 10 percent, despite not having a large share of the market. Commercial franchises only have a 2 percent annual turnover rate.

Many carpet cleaning clients return to the carpet cleaning business repeatedly. This allows them to build a large client base.

Carpet cleaning businesses can lose as many as 55 percent of customers due to poor service and poor work.

A carpet cleaner who provides quality service, shows up on time, and performs well can build a loyal client base for a steady income source.

Who Is The Target Market For Your Carpet Cleaning Business?

It is possible to target different markets depending on your business’s specialization. Commercial carpet cleaners work with property managers and offices.

They may also work with stores and other professional spaces. However, a commercial carpet cleaner might not work with residential customers.

Others specialize in residential carpet cleaning only and do not do commercial work.

The target market for a carpet cleaner could be homeowners, tenants, landlords, or commercial property owners.

Skills, Experience, And Education Useful In Running A Carpet Cleaning Business

Starting a carpet cleaning business does not need a degree un in business, but it would require business owners to have some skills and experience as in the following:

Mechanical knowledge. Carpet cleaning equipment is often used and needs regular maintenance. Carpet cleaning business owners will experience less downtime if they can repair and service their equipment.

You can also save money on costly repairs by diagnosing and fixing a mechanical issue yourself.

Physical strength. The physical demands of transporting and cleaning carpets require someone strong enough to carry them around several times per day.

Experience in the cleaning industry. For best results, any carpet cleaner will be able to explain the chemical and technique differences.

The Institute of Inspection, Cleaning and Restoration Certification is a non-profit certification body that certifies the cleaning and restoration industry.

Attention to detail. It’s all about the details when you clean carpets. Cleaning carpets is all about details.

Management skills. Experience and management skills are essential when carpet cleaning companies grow in size. The owner doesn’t have to supervise employees, but they must manage the team and make sure employees use their time efficiently for the business to grow.

Customer service experience. Previous customer service experience is a key advantage for carpet cleaning companies. It will help them answer calls and address customer concerns. Customers are often returning customers, so providing a positive customer experience with every carpet cleaning is crucial.

Marketing skills. Marketing carpet cleaning businesses require some expertise. Business owners can save money if they do all or part of the marketing.

Costs To Start A Carpet Cleaning Business

Even though a carpet-cleaning business doesn’t need a traditional storefront location, it must be mobile. This can result in additional costs.

Start-up costs can vary depending on what equipment is needed and whether or otherwise you may be able to find a deal to purchase a pre-owned van. It’s possible to cut costs by buying used or refurbished equipment. It costs between $500 and $85,000 to start a carpet-cleaning business.

There are common startup costs associated with starting a carpet cleaning business:

  • Transport equipment using a van
  • Carpet cleaning equipment: a portable, truck-mounted or hot-water extractor used for steam cleaning, dry-foam or cleaning system, a vacuum cleaner, or any professional-grade cleaning unit
  • Cleaning products & solvents

Steps To Starting A Carpet Cleaning Business

Step 1: Write A Business Plan For Your Carpet Cleaning Service.

Next, you need to prepare a plan for your business. A business plan will not only be required by banks but also, according to multiple studies, it will increase your chances of starting and maintaining a successful business.

Step 2: Form A Business Entity.

Business entities refer to the legal organization of a business. There are four types of business entities available: sole proprietorship, partnership, Limited Liability Company (LLC), and corporation.

Each entity has its own pros and cons, including liability exposure, costs, and administrative needs.

Step 3: Name The Business.

You might find it tricky to pick the right name for a business. When looking for a business name, make sure it’s easy to remember and memorable to customers.

Step 4: Select Your Location.

Although most carpet cleaning businesses don’t require a storefront, they still need somewhere to do business. Many small businesses operate from their homes. If you don’t have permission to move, check the covenants and zoning.

Step 5: Apply For Business Licenses And Permits.

The owner of a carpet cleaning company will likely need to obtain several permits and business licenses. Although this is not the norm, there are some instances where local governments will require that carpet cleaners have specific cleaning licenses to dispose of wastewater.

Step 6: Find Financing.

It is one thing to have a business idea and run it well, and another to fund it. The cost to start a new carpet-cleaning business is pretty low.

However, funding can be challenging. Banks will require borrowers to have excellent credit and invest between 15 and 25% of their money for the initial costs to start a carpet cleaning business.

Step 7: Open A Business Bank Account.

You will easily track your business’s income and expenses by keeping your personal finances separate from your business bank and credit card accounts.

Step 8: Get Your Marketing Plan In Place.

Carpet cleaning business marketing expenses can vary depending upon the method and whether or not the marketing is done in-house.

A website with high-quality images of the work done by a business is a powerful marketing tool. They don’t have to be expensive.

While word-of-mouth marketing can be a great way to gain new clients, it takes some time before you can show the quality of your work to customers.

You can also market via social media, Google Reviews or Yelp, targeted direct mail, and print advertising.

Step 9: Get Insured.

To fully protect your carpet cleaning business, you will need multiple insurance policies.

  • General liability insurance covers clients if they are ever injured or their property is damaged.
  • Commercial property coverage can be used to cover business equipment that has been damaged by fire, flood, etc.
  • When a business employs employees, workers’ compensation insurance is necessary. It pays for lost wages and medical costs if an employee gets hurt while on the job.
  • It is necessary to insure the van as well as its drivers with automobile insurance. Make sure your current policy covers commercial activity if you plan on using a personal vehicle.
  • A surety-bond may be something worth considering. A surety contract protects customers and businesses if they need to pay for damages.

Prices for insurance policies can vary depending on many factors.

These may include the location of the business, the equipment that is being insured, and the number of employees.

To have a better idea about your potential insurance costs, ask for quotes from different insurance companies.

Compare policies and consider coverage limits and deductibles to choose the right one.

Step 10: Hire Employees.

Depending upon the size of your carpet-cleaning business, multiple employees may become necessary.

PayScale says that carpet cleaners average $13.20 per hour or $35,370 per annum. Apart from budgeting for employee salaries, you should also budget to cover other expenses such as unemployed contributions, health insurance, and paid time off.

There are several steps to take before you hire an employee.

Step 11: Set Up An Accounting System.

It is essential to have an accounting system that supports your carpet cleaning company’s long-term success.

Being on top of taxes will keep your business from getting in trouble with the government. However, the numbers can be used to track trends, cash flow and maximize profits.

How Much Can You Potentially Make Owning A Carpet Cleaning Business?

The income of carpet cleaning businesses varies based on their location, type of work, and clientele.

With a carpet-cleaning business, it is possible to make $50,000 to $75,000. Some companies make higher amounts each year.

Some carpet cleaning franchises, such as Chem-Dry, say that their franchises may earn as high as $94,000 per annum.

More Things To Consider Before Starting A Carpet Cleaning Business

Although a carpet cleaning business does not require a traditional shopfront, it will still need to invest in its equipment.

Carpet cleaning is a technical job and involves chemicals. It is best to work with an apprentice before you go out on your own.

You can then be sure that this is the right opportunity.

You will need to train if you are unable to find an apprenticeship.

Carpet cleaning companies have increased their services to include hard surface, window, and air duct cleaning.

This is an excellent opportunity to boost sales, especially that many people have switched to hardwood floors and laminates.

Also, you will need to decide if you want to start your own business or purchase an existing franchise.

Each option has its pros and cons. You may have to pay more upfront cost for a franchise than for an already established business. There are, however, many perks to buying a franchise.

You will have greater control over all aspects of your business when you start it yourself. Although it could take some time to establish your reputation, you can still build a loyal customer base and make your business profitable with excellent customer service.

What Is Our #1 Recommendation For Making Money In 2021?

Our review team has come across a program in the real estate industry that is next level!

Although it’s not real estate in the traditional sense, it’s all digital.

Yup, Digital Real Estate!

With digital real estate, you have the opportunity to completely walk away from your 9-5 job!

Sound too good to be true?

Of course it does!

But it isn’t…

In fact, business owners wish they had this skill!

What exactly is this skill?

Well, basically you are acting as a conduit for small business to increase their bottom line.

What we mean is…

You are helping these businesses grow!

But how?

All you have to do is build and rank a website and forward certain jobs off to a business owner in town, you could even email it to them!

This works for literally any service based business… ie: tree service, plumbing, towing, and carpet cleaning.  

How Do You Get Paid And How Much?

Simple, after you forward the jobs off to a business owner and he makes closes the deal, you simply ask to agree to a WIN-WIN arrangement.

A fair price to charge per lead, depending on the industry is 10-20%… let’s just use the carpet cleaning industry for example and go by worst case scenario.

Let’s say you build and rank the site and only 30 jobs requests a month come in. The average carpet cleaning job is anywhere from $175-$250!

So, let’s just $200 to make the math easy.

That means at bare minimum you have an asset worth $600 per month!

Now what if you had just 10 of these sites… or maybe 20… or even 100?

See why they call it digital real estate now?

The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.

Truly passive income!

The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.

You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.

Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.

Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.

Now, we know you probably have tons of questions… 

So, check this out to learn more.

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