Is Carpet Cleaning a Profitable Business?

August 26, 2021

Although the industry is overlooked, deep cleaning and spot cleaning the carpet are essential to a clean place.

Between removing dust mites, bacteria, fur, and other allergens, professional carpet cleaning has many benefits. As a result, it can help improve breathing and reduce the risk of triggering allergies or a cold. Thinking of expanding your business? Find out how profitable spot cleaning or carpet cleaning can be for your cleaning company.

Getting Started

Starting a cleaning business is easier than you think. However, it is important to do research on how to start a cleaning business, but differentiating the cleaning service is the first step. Since offices, houses, and many buildings contain carpets, carpet cleaning is both a residential and commercial business.

Choosing to specialize in a niche cleaning such as carpet and upholstery is a great start. Specialization has lower competition rates and better hire rates. Spot cleaning is also a necessity in the cleaning business, so focusing on these details will be the key to a successful carpet cleaning business.

Not only is specialization good for competition, but it is also cost-effective for start-up costs. The difference in equipment and competition can make a huge difference in starting a business.

Starting a Franchise

Cleaning franchises are a great alternative for beginning business owners who might not have the capacity to start one from scratch. Cleaning franchises are a popular choice for business beginners, and they’re also low-cost to start.

  • Popular Carpet Cleaning Franchises include:
    • OpenWorks
    • Kwik Dry Carpet & Air Duct Cleaning
    • Steamatic Restoration and Cleaning
    • Office Pride Commercial Cleaning Services
    • Chem-Dry Carpet Cleaning International
    • The Maids

There are many more franchises depending on your location, so it is best to do thorough research to see which franchise would match your image the most. The cheapest franchise out of these six options would be Openworks, with a $9000 minimum required. There are cheaper options available, therefore it is beneficial to research the various franchises available in your area. A simple google search will show you most of the franchises in your area that you can look into starting.

Determining the Budget

The key to starting a successful carpet cleaning business is to determine a good budget to start operations. Overall, a carpet cleaning business will cost around $20,000 at minimum to start from scratch. Of course, depending on the size of the business, the industry, and your business goals, the start-up costs may go as high as $100,000.
Some costs to consider while determining the spot cleaning budget can include:

  • Equipment/Tools
  • Licensing/Permits
  • Insurance
  • Advertising

Equipment and Tools

Since carpet cleaning is a specialized service, purchasing equipment and tools will not be as costly as other cleaning businesses. For most carpet cleaning businesses, start-up equipment can start at $500 for smaller models and upwards of $5,000 for larger machines. You can find a list of different options and price points on Amazon.

  • Focus on investing in quality equipment such as:
    • vacuum cleaner
    • carpet extractor
    • carpet cleaner
    • defoamer
    • carpet rake
    • detergents/soap

Choosing the perfect equipment for spot cleaning and carpet cleaning can be difficult, so do your research on different types of tools that fit your budget and type of business.

Licensing and Permits
There are many other options for a cleaning business if choosing a franchise isn’t in the plan. Choose to register the cleaning business with a license or apply as a Limited Liability Company (LLC). Acquire a general business license for around $75 or register as a Sole Proprietorship, which costs from $30-$60.

Making a pros and cons list for each option is a good way to narrow down the options and choose the best fit.

Insurance is an absolute necessity for starting a business. Learning about insurance can seem complicated, but it’s important to note that general liability insurance can range from $500 to $1000 per year. If you hire employees to work for you, you will need to factor in the costs for workers’ compensation insurance as well. Lastly, since carpet cleaning involves using expensive equipment, you will want to consider getting a quote for tools and equipment to cover your pricier machines.

Marketing a New Business

In order to create a successful and lucrative business, people must come to know about it first. It is important to pay attention to advertising a new business.

Grow and expand the customer base through different types of advertising. Promoting through social media is a cost-effective (sometimes free) way to spread the word about the new carpet cleaning business. Interact with customers through various social media such as Twitter, Facebook, and Instagram to increase engagement.

Not to be overlooked, word-of-mouth advertising is one of the most profitable ways to market any cleaning business. The key to growth is working consistent jobs with customers and getting referred to others who are in need of the same service.

Other effective ways of advertising can be through print and digital, which can cost upwards of about $100-$1000. Advertising such as printing flyers and online ads are perfect examples of print and digital advertising, but this can be time-consuming and a waste of materials. For a more budget-friendly, fast, and effective method, consider advertising on Craigslist or Facebook marketplace to reach new customers. Facebook groups are an easy way to discover businesses or homeowners in need of carpet cleaning.

Is a Carpet Cleaning Business Worth It?

Overall, research has shown that as of 2020, the carpet cleaning industry is valued at $4.5 billion, and business owners are walking away with lots of profit. Since almost every home, office, school, etc. have carpet, therefore, they will eventually need to get it professionally cleaned. Not only does professional carpet cleaning improve air quality, but it also improves people’s breathing and allergies.

Therefore, starting a carpet cleaning business can become a profitable journey. Gathering accurate research and higher quality equipment will help aid you on the path to cleaning success.

See our other blog posts for more tips on starting, organizing, and growing your cleaning business.

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By Lei Kimura