A business plan is the backbone of any business, and a carpet cleaning business is no different.
If you don’t have a clear plan for how you’re going to get customers and make money, your business will quickly fizzle out.
Fortunately, if you take the time to write a solid business plan, you’ll give yourself a much better chance of success.
In this article, we’ll cover all that you need to know about creating a carpet cleaning business plan.
Read on to learn more.
What Is a Carpet Cleaning Business Plan?
Growing a carpet cleaning business isn’t without challenges. After all, you’re entering a $3.8 billion market with more than 31,000 businesses already in operation.
With so much competition, it’s essential that you have a plan for making your business stand out. That’s where a business plan comes in.
A business plan is a document that outlines your business goals, strategies, and tactics. It’s important to have one because it forces you to think about the long-term health of your business.
Creating a business plan can seem daunting, but it doesn’t have to be. Below, we’ll give you a step-by-step guide for writing a carpet cleaning business plan.
Why Should You Start Your Own Carpet Cleaning Business?
Before we get into the nitty-gritty of writing a business plan, let’s take a step back and answer a bigger question: why start your own carpet cleaning business in the first place?
For many people, the answer is simple. Carpet cleaning businesses offer a unique blend of several key factors, including:
- Low startup costs: You can start a carpet cleaning business with as little as $500.
- Recurring revenue: Carpet cleaning is a service that customers will need on a regular basis. This allows you to build a business with a steady stream of income.
- Flexibility: Carpet cleaning businesses can be operated full-time or part-time, making them perfect for people who want the flexibility to set their own hours.
- Scalability: If you build a successful carpet cleaning business, there’s always the potential to grow and scale.
Wall-to-wall carpeting is standard in almost all residential and commercial structures constructed after the 1960s. These homeowners want to make what they already own endure as long as possible.
This is particularly true for carpeting, as it is a large investment due to the high replacement costs and the ongoing cyclical slowdown of the global economy.
The essential circumstances that are present in the world today have not only contributed to the expansion of the carpet cleaning industry, which now boasts billions in annual revenues, but they have also created the need for entrepreneurs to enter this burgeoning market.
What to Include in Your Carpet Cleaning Business Plan?
When thinking about business plans, most people immediately imagine lengthy, intricate documents stuffed with graphs and data. But it doesn’t have to be that way.
One of the most effective and simplest ways to get started on your business plan is to find a template and fill it in with your own information. This will give you a roadmap to follow as you write your plan.
Your business plan should essentially consist of the following sections:
- Executive Summary
- Initial Costs
- Summary of Market Analysis
- Pricing and a Financial Plan
- Marketing and sales
Let’s discuss what you need to write in each of these sections in more detail.
1. Executive Summary
The executive summary is a concise summary of your business. Here, you only have to describe the issue you resolve for your clients in one line.
An example of an executive summary could be “Transform your home’s carpets from a dirty and stained breeding ground for bacteria into a sparkling and welcoming first impression for family, friends and guests with our professional carpet cleaning services.”
Include a thorough description of how you address that issue, emphasizing the features of your company that set you apart from your rivals.
You can, for instance, mention that your offer includes eco-friendly services, individualized customer service, or flexible payment options.
2. Initial Costs
Whether you want to work independently or purchase a franchise will determine the initial costs of starting your business.
Since each of the two business models has its pros and cons, you need to carefully consider which one is the best for you.
Since you are on your own when you operate an independent carpet cleaning business, you will be responsible for everything, including establishing the business, getting equipment, training staff, and customer acquisition.
You’ll need to purchase a van, which you can use both for transport and to store your equipment. You’ll also have
Let’s look at some of the costs that can be involved in this situation:
- Equipment and Supplies: Some essential parts of a carpet cleaning kit include a professional vacuum, a steaming carpet cleaner, a specialized spotting kit, and detergents. This equates to an initial investment of around $3,000.
- Vehicle: You’ll need a vehicle (preferably a van) to get around and store your equipment. You can purchase a used van for as little as $2000, but add in fuel and maintenance costs, and you’re looking at an ongoing expense of $100 per week.
- Licenses and Permits: Depending on your state, you may need multiple licenses and permits to operate your carpet cleaning business, which can cost anywhere from $100 to $500.
- Insurance: If you are working on your own, plan on spending at least $30 per month on insurance. The cost increases proportionally with the number of employees.
- Employee Salary: This will depend on the number of employees working for your carpet cleaning business. The standard hourly rate for a cleaner’s base income in the United States is currently estimated to be $11.99.
3. Market Analysis Summary
Identify your target customer first before you move on to the rest of your market analysis summary.
Targeting homeowners or property managers is a good strategy if you want to start a residential cleaning business.
On the other hand, if you specialize in commercial carpet cleaning, the people who use your services may include hotel managers, commercial property managers, and Airbnb users.
After this, you will analyze the elements that can affect your bottom line, including:
- Strengths: What sets you apart from your competitors?
- Weaknesses: What do your competitors do better than you?
- Opportunities: Identify any trends in the industry that you can take advantage of.
- Threats: Is there anything that may negatively affect your business?
- Suppliers: Who will you get your supplies from?
- Customers: Identify as many potential customers as possible so that you aren’t dependent on a small clientele.
- Substitutes: Check how many businesses can replace your services with less expensive alternatives.
- Direct competitors: Conduct research on the businesses in your area that offer the same service to find the market segment with the most growth potential.
You need some industry knowledge to complete this section. Download at least one or two industry studies (preferably updated in 2020) or analyses performed by regional organizations in your area in addition to investigating possible competitors to learn what they do and what services they offer.
Make a comprehensive list of the services you can offer your customers using the information you collected while researching your competition.
You can consider the following:
- Carpet cleaning
- Upholstery cleaning
- Stain removal
- Odor control
- Pet hair removal
- Water damage restoration
- Hypoallergenic treatments
- Floor waxing
- Oriental rug washing
In this section of your business plan, you will specify the geographic region in which you will conduct business.
Ideally, you should cover an area that is large enough to supply you with a steady stream of customers.
However, it is in your best interest to research the competitors operating in the same region as you. This will help you understand how you can place yourself on the market and attract customers.
While doing so, you should consider your route’s costs and establish clear restrictions.
This way, you lessen the likelihood of spending more time driving to your customers’ locations than actually cleaning carpets.
6. Pricing and Financial Plan
Most carpet cleaning businesses set costs per room or square foot, though some may charge by the hour.
This section of your business plan should include a pricing strategy based on the services you offer, your target market, and your location.
It is important to determine reasonable pricing for your services after considering all your costs (including taxes) and your financial objectives.
While reviewing your competitors’ offers is a good idea, it is not in your best advantage to base your pricing strategy only on what other businesses charge for their services.
Instead of significantly affecting your business decisions, knowing what competitors charge should help you position your business in the market and give you a general idea of how to price your services.
When you have decided on your costs, you can start creating a financial strategy.
Include some sales projections in this section, such as the number of clients you can accept each day, the amount of money you can make each week, month, or year, the cost of providing the services which create this income, and how you will manage cash flows.
7. Marketing and Sales
Working backward is the most effective strategy for handling marketing and sales concerns.
When developing the business plan for your carpet cleaning company, you should begin with the goals you want to attain to determine the right marketing goals for your company.
Let’s say that by the end of the year, you aim to have ten contracts under your belt. This means that you (or your salesman) should have conversations with at least 40 to 50 prospective customers.
You will need to have made at least 500 contacts before you can expect even half that number of meetings.
It is important to be realistic about how you will generate leads and land customers. This part of your business plan should clearly state how you plan to reach your target market.
Your marketing strategy will involve creating a brand identity and deciding on the marketing channels you will use to reach your target market.
These may include online channels such as social media and search engine optimization or offline channels such as print advertising, flyers, and word-of-mouth marketing.
This section should cover the administrative duties you’ll manage as your business expands. You should initially focus on these three key areas:
- Appointment Scheduling
This may seem easy at first, but as you add more clients, you’ll need to commute between locations, map out the best routes, and perhaps even set up shifts to cover all appointments.
Set aside some time in your calendar to search for online solutions that can keep you organized.
Look for an app that will make it simple to schedule projects, notify clients automatically, manage invoices, and calculate payroll. This will save you valuable time in the long run.
- Team Direction
Even if you launch your carpet cleaning business yourself, you’ll need to hire staff to support you as the company grows.
You want to be ready because moving from working for yourself to managing teams comes with extra duties.
Look for individuals with experience in the customer service and cleaning industries. You’ll need to train your staff on your specific methods and how to provide exceptional customer service.
You should also be able to delegate tasks so that you’re not bogged down with the business’s day-to-day operations.
This will give you more time to focus on the bigger picture and long-term objectives for your company.
You should also schedule training sessions for your employees. By making sure that your employees are the best at cleaning carpets and offering great customer service, you will increase customer satisfaction and repeat business.
These sessions should cover topics such as the most effective way to clean carpets, how to upsell customers on other services, and how to handle customer complaints.
What Should You Know Before Starting A Carpet Cleaning Business?
How to Start a Carpet Cleaning Business Single-Handedly?
A well-composed business plan is crucial for your business’s success. By taking the time to develop a solid plan, you will be able to map out a path to profitability and identify any potential roadblocks along the way.
Daleyza knows a lot about carpets! She has worked with carpets for over 7 years and can help with things like putting them in, keeping them clean, and replacing them. She really likes carpets and spends most of her time learning about new ways to work with them. When she’s not learning about carpets, she enjoys reading books. She’s really good at helping people choose the right carpet for their homes and making sure they’re happy with it. If you want to know more about carpets, Daleyza is the person to talk to!