Dirt is almost everywhere. And for all the mess it creates, homes and businesses are willing to pay for cleaner carpets. This desire offers an opportunity to start a business of your own.
But starting a carpet cleaning and upholstery business calls for strategic equipment investments and profit management. With a solid grasp of the financials, you can help your venture prosper.
DryMaster Systems has been helping aspiring business owners get into the carpet and upholstery cleaning business for over a 27 Years. By signing up as a DryMaster™ Affiliate, you’ll have exclusive access to our superior technology, marketing and advertising methods, and personalized technical support at each and every step of the way.
Most importantly, we’ll teach you the ropes so you won’t have to worry about how much it costs to start a carpet cleaning business.
Opportunities Abound in the Carpet Cleaning Industry
Carpet cleaning is a lucrative business venture.
The North American Industry Classification System reports that there are over 40,000 carpet cleaning businesses in the country, raking in $5 billion of revenue in 2018.
Allied Market Research predicts that the global cleaning services market will grow at an annual compound growth rate of more than 6 percent, reaching $74 billion by 2022.
Carpets are an essential part of residential properties and commercial complexes. As carpets become a staple for interior floors, it calls for a higher demand for maintenance. And as a prospective carpet cleaning business owner, this can ensure a steady flow of customers.
But where do you start?
Going Solo or Starting a Carpet Cleaning Franchise?
Any carpet cleaning business owner has faced the dilemma of whether they should start their own independent cleaning business or become a franchisee for a larger cleaning company. Ultimately, your decision will depend on what you want to achieve.
Starting a carpet cleaning franchise comes with greater name recognition and, in turn, broader audience reach. Moreover, being a franchisee provides exclusive access to your parent company’s business model and contracts. But this comes with many strings attached such as work territory restrictions with saturating many franchisees at the same territory, tremendous and ridiculous start up costs of franchise and license fees, royalties fees and share your profits and following protocol established by your franchisor.
On the other hand, some entrepreneurs prefer a hands-on approach when building their own carpet cleaning business from scratch. By starting an independent business, you won’t have to spend for franchise fees. You can call the shots on everything related to your venture. But as the owner, it comes with the responsibility of getting exposure and earning referrals for your business.
DryMasters Systems has years of experience helping new business owners jumpstart their careers in the carpet cleaning industry. Thinking of starting your business all on your own? Diving in head-first without experience is risky, difficult, and leaves you without a lot of resources. DryMasters Systems has designed a free carpet cleaning business guide to give you the resources to make your business thrive without any strings attached, work territory restrictions or annoying monthly fees. DryMasters affiliates have constant support for business and technology questions. If you are considering operating your own business, DryMasters is ready to help you along every step of the way.
Computing the Cost of Goods and Services
As a carpet cleaning startup, you’ll need to consider how you want to structure your service to help it mature and evolve. Create a business plan that answers these concerns:
- Who is your target audience?
- How will you attract them to your business?
- What are your short-term and long-term financial goals?
- How will your business earn profit?
A successful business plan includes a company description, an extensive market analysis, details about your business operations, and thorough financial projections. By building your cleaning business from a proper blueprint, you can get a clearer look at your finances and determine how much it costs to run a carpet cleaning business.
The equipment you buy will depend on the cleaning method you will use. The most common type of cleaning methods are hot water extraction (HWE) and low moisture carpet cleaning.
- HWE cleaning equipment – If you opt for HWE equipment, you can start with a portable “extractor” package, which costs between $2,000-$4,000. The price can vary, depending on the machine’s pump pressure rating. Those who follow the steam cleaning method will recommend models with higher ratings because of their strong soil-removing properties. Truck-mounted carpet cleaning equipment follows the hot water extraction method, and you can obtain a basic mechanical unit for $20,000-$30,000.
- Low moisture carpet cleaning – Low moisture carpet cleaning equipment are relatively cheaper than their HWE alternatives. It is a cost-effective carpet cleaning method that uses significantly less water than extraction and speeds up the carpet drying process. You can obtain the equipment for about $3,000-8,000.
Cleaning Solvent Costs
As one of the least expensive items, you can get a spot and stain removal kit for about $130. Rug cleaning solvents, on the other hand, cost about $25 per gallon. And if you rely on steam cleaning methods, you can pay less for the cost of detergent.
Haul your cleaning equipment from your location to your customer’s area with ease. For good measure, choose a van or truck with a camper shell to protect your equipment from theft. Depending on the model, year, and condition of the van, you can get a used truck or van for about $15,000.
Insurance, Licensing, and Bonding
Business insurance costs may run high, but they are a crucial investment. As a carpet cleaning business owner, you’ll need to protect your company from financial loss stemming lawsuits, theft, property damage, vandalism, and employee injuries.
Insureon provides an estimate to represent the typical costs of upholstery cleaning insurance. These include:
- General liability insurance, which covers the cost of lawsuits for property damage as well as bodily and reputational injuries. This can cost you $361 to $750 in annual premiums.
- A business owner’s policy can reimburse your equipment, supplies, or property if they get lost, damaged or stolen. This policy costs about $1,041 to $1,675 every year.
- Obtain coverage for your equipment while in transit or at a customer’s location. Starting at $500, you can get a contractor’s equipment insurance to cover your gear when you’re away from your premises.
- Commercial auto insurance acts like a personal auto policy that pays for accidental damages. They cost an average of $2,234 to $2,841 in annual premiums.
- By paying only about $100, you can get a janitorial/surety bond to safeguard your contracts and reimburse your customers if they incur losses.
Establishing a strong financial infrastructure is crucial when starting a new business. By tracking your costs and staying up-to-date on financial information, you can grow your carpet cleaning company.
Let DryMaster Systems help you achieve financial freedom. As a full-fledged carpet cleaning business owner, you can be your own boss and make an impact by keeping homes and establishments clean. DryMasters affiliates not only have access to DryMasters’ premiere machines and technology, they have access to constant online and telephone support to answer all of your business and technology questions. DryMasters is ready to help your business succeed.
Contact us today.