How to Start a Carpet Cleaning Business

• Private Homes.
• Commercial Spaces like office buildings, auto showrooms or hotels, to name a few.
• Public spaces like libraries, houses of worship, or schools.

Additionally, it is important to highlight that the equipment that is required to deep clean carpets, can also effectively clean upholstery. This dual effectiveness can help open business opportunities for fabrics on boats, RVs or automobiles, among others. Many industries coordinate their services with a carpet cleaning/upholstery cleaning professional. They are great referral sources and include –

• Wedding Planners.
• Caterers.
• Restaurant Owners.
• Party Planners.
• Hotel Banquet Managers.

How Does a Carpet Cleaning Business Generate Income?

The ways in which to generate income (and thus, profit) varies. The two basics methods –

• Charging per square foot — although the rate varies by location, the average rate per square foot for carpet cleaning services is an approximate $.30 per sq. ft.
• Charging an hourly rate — depending on location, deep carpet cleaning hourly rates range between $75 and $150 per hour. Hourly fees are generally used in contract work with large corporations, or public entities because these types of customers will provide the most consistent and their cleaning jobs are larger. This generates more money for just one stop.

Step #1 — Research and Identify Your Target Market

From a comprehensive perspective, each homeowner, car owner, boat owner or business owner is a potential customer. However, to learn how to open a carpet cleaning business effectively requires you to narrow down the definition of your target market definition. Although you can add portions of the carpet cleaning industry as you grow and expand, it is best to start a carpet cleaning business with a clearly defined and manageable target market.

A carpet cleaning business owner must remain organized enough to maximize their profit-making opportunities. This commitment to organization starts when you begin to research valuable industry insights and government data, all available online. This information helps you to determine your carpet cleaner startup strategy. Consider these research sources –

• FirstResearch.com — FirstResearch.com’s parent company is Dun & Bradstreet. First Research is a renowned market analysis provider to help professionals obtain data to make prudent business decisions.
• IBISWorld.com — IBISWorld is the brainchild of Phil Ruthven, a brilliant thinker way ahead of his time, who began to synthesize market research and business data for business executives as a decision-making tool.

FirstResearch.com and IBISWorld.com typically charge a fee (which is well worth it) for their insightful industry reports. The federal government provides a free U.S. Census Bureau American FactFinder tool that is quite helpful as you continue your market and neighborhood research.

Step #2 — Create a Detailed Business Plan

When you have gathered relevant market data and have determined your defined your target market and startup strategy, it is time to create your carpet cleaning action plan — which is more often referred to as a business plan! A comprehensive business plan should anticipate and plan for the many moving parts required to successfully start, and maintain, a carpet cleaning business. Begin by considering the following  –

• The timeline required to accomplish your carpet cleaning business objectives.
• The defined target market.
• How to launch your website — your digital footprint.
• Your business model.
• Your initial startup costs.
• The legal entity under which the carpet cleaning business will operate. This is an extremely important issue as your choice will dictate your tax obligations as well as how personally liable you will be should business issues and financial problems occur.
• The responsible parties and how will they contribute to the operation of the business.
• Your marketing efforts.
• Financial Projections.
• Additional funding to meet your objectives.

These noted examples are just a partial list of the details required to complete a comprehensive business plan. Fortunately, there are business support service organizations that offer new business owners and entrepreneurs.

Step #3 — Understand Your Carpet Cleaning Business Startup Costs

A carpet cleaning business can be opened in one of two ways. You can choose to open a franchise or open your brand of carpet cleaning services. Franchise fees, according to the Institute of Inspection Cleaning & Restoration Certification (IICRC) generally cost between $20,000-$50,000+. Either way though, there are startup fees that are required for franchise owners or independent operators alike. The following equipment is generally required and will likely vary as the choices vary–

• Carpet cleaning equipment.
  • A commercial-grade rug cleaner with attachments, extra-long water hoses to reach water supply, and a size-able holding tank for wastewater – $3,500+.
    • An equipment mounted truck is likely to cost more than $30,000 alone!
  • Cleaning solvents — this line item can cost upwards of $400 as a startup supply.
• Reliable transportation from which to work – $5,000-$30,000.
• Commercial Insurance, Business Registration & Business licenses. It is best to reach out to the legal experts regarding these startup necessities – $500-$2,000.
• Website development and marketing – $1,000.

Financing Your Startup Carpet Cleaning Business

There are many ways to fund a startup business. Some entrepreneurs choose to use their savings or retirement savings to finance the necessary startup expenses. Many others rely on the more lenient business loans and lines of credit with super quick funding times. Consider the following for your carpet cleaning business –

• A stated income business line of credit
• A business loan that requires no collateral
• A no documentation business line of credit

A Typical Day in the Life of a Carpet Cleaning Business Owner

Any business owner must always be prepared for the next decision or customer complaint. The owner of a carpet cleaning business is no different. On any given day, a carpet-cleaning owner could find himself or herself –

• Networking and finding ways to expand their customer roster.
• Supervising employees and solving daily-unanticipated events.
• Operating cleaning equipment when necessary.
• Ensuring supplies are adequate to meet upcoming business needs.
• Managing the business side of the business — i.e. invoicing, paying bills, and ensuring all other business obligations are active and up to date.
• And everything else possible.