How to Start a Carpet Cleaning Business: Start to Finish Guide

1. Choose a carpet cleaning business name

Your name is one of the first things people recognize about your service business brand, so it’s important to get it right. Make sure your carpet cleaning business name:

• Describes the services you offer
• Makes people feel positively about your business
• Is easy to say and remember
• Is unique in your area and stand out from competitors

READ MORE: Get inspired with these cleaning business name ideas

Here are just a few examples of carpet cleaning company names to inspire you:

• We Scrub Your Rug
• Capital Carpet Cleaning
• Clear Carpets
• Carpet Cleansers
• Rug Rinsers
• Refresh Your Rug

READ MORE: 8 successful cleaning business stories that’ll inspire you

Once you’ve chosen a name, you can design a branded logo to match. Then, use your name and logo on your new business plan, business cards, website, social media, and other marketing materials.

2. Write a business plan

A business plan determines how your carpet cleaning company will operate. This plan also clarifies your short and long-term goals and defines a strategy to achieve them.

Your carpet cleaning business plan should include components such as:

• Cover page with your business name, basic branding, and date of establishment
• Executive summary (a single-page recap) of the entire business plan
• Business overview describing your carpet cleaning business
• The type of carpet cleaning business you’ll run  (e.g., residential carpet cleaning service for homeowners, commercial carpet cleaning for businesses)
• A complete services list showing your offers (e.g., carpet and rug cleaning, furniture and upholstery cleaning, curtain cleaning, steam cleaning, inspection cleaning)
• Pricing strategy with rates for your carpet cleaning services
• Market analysis showing what area or neighborhoods you’ll serve and who your ideal customer is
• Competitive analysis of other local carpet cleaning businesses in a similar niche
• Marketing plan for reaching your ideal customers and winning new contracts
• Employee planning with any roles you’ll need (e.g., cleaning technician, team lead, office manager) and a hiring timeline
• Financial projections and cash flow strategy for your first year of business, including your income, expenses, and salary

If you plan to secure funding from a bank or lender, a business plan sets you up for success.

Get a complete guide to writing a business plan from the Small Business Administration.

Pro Tip: Do you want to clean carpets but feel hesitant to make all the business decisions yourself? Consider buying into a carpet cleaning franchise. You’ll have support and resources from the parent company and get access to valuable brand resources from day one.

3. Get training and certification

Carpet cleaning isn’t quite as simple as buying equipment and finding customers. You’ll also need the right training to ensure you’re doing a good job—and performing work safely.

Take a carpet cleaning training course and learn the best ways to clean, including which types of products to use on which stains. The Institute of Inspection Cleaning and Restoration Certification (IICRC) offers a carpet cleaning certification program to help you get started.

If you want on-the-job experience, talk to a carpet cleaning business in a neighboring city. You might be able to volunteer or apprentice with another crew to see how they work.

You can also clean friends’ and neighbors’ carpets for free or at a discounted rate. That way, by the time you get your first client, you’ll already have carpet cleaning experience under your belt.

4. Open a business bank account

Before you start accepting payment on completed work, open a business bank account to keep your personal and company finances separate. This makes everything much easier when it’s time to file your taxes and deduct business expenses.

Next, set up a reserve fund that can cover at least 90 days’ worth of business expenses. It’ll be a big help if you run into any cash flow problems or unpaid invoices later on.

It’s also a good idea to get a qualified small business accountant who can help you manage your finances. You can always do it yourself, but you might find it easier to outsource the financial or bookkeeping part of your business to an expert.

5. Secure business funding

Starting any new business costs money, and carpet cleaning requires initial investments. You can get the startup capital you need through resources like:

• Government funding: The U.S. Small Business Administration (SBA) offers funding programs like small business loans and investment capital. The Government of Canada also offers business grants and financing.
  
• Business loan: Apply for a small business loan or line of credit with your local bank or credit union. You may also be able to get a startup loan from a friend or family member. Make sure that you understand any interest or repayment terms up front.
  
• Credit cards: A business credit card can help with cash flow during startup. Get one with a low interest rate and rewards for every dollar spent, and pay it off every month.
  
• Jobber Grants: The Jobber Grants program offers $150,000 in available funding to recognize excellence in small home services businesses.
  
• Equipment financing: You may be able to get financing on your carpet cleaning equipment if you’re buying it new, or buy used equipment instead to cut costs.

6. Register and license your business

You’ll need to take care of business registration and licensing to ensure your operations are in line with legal requirements. Follow the steps below to get started.

Business registration

Head to your local registry to register your carpet cleaning business in a specific town, county, or city. The registration process varies depending on where you live:

• United States: Trademark your business name and register your domain name.
  
• Canada: Register and trademark your business name. You can skip this step if the business’s name is the same as your personal name.
  
• United Kingdom: Check your name availability, then register the name and business.
  
• Australia: Register with the Business Registration Service, ASIC, or a private service provider. Skip this step if the business’s name is the same as your personal name.

Learn about your area’s registration process by searching “COUNTRY + business registration” on Google. You can also check with your local government’s business registration division.

Business structure

As part of the registration process, you’ll also need to choose a business structure. Options for your business’s legal entity include:

• Sole proprietor (U.S., CA) or sole trader (UK, AU)—common for solo business owners
  
• Partnership (U.S., CA, UK), joint venture, or co-operative (AU)—for 2+ owners
  
• Limited liability company or LLC (U.S.), corporation (CA), limited company or limited partnership (UK), or company (AU)—an option to protect personal assets

You’ll also need an employer identification number (EIN), especially if you plan to pay employees or business partners. This number is important for taxes, so request your EIN early to avoid any trouble with the Internal Revenue Service.

Business license

A carpet cleaning business license allows you to legally work in your area. Even if it’s optional where you live, it’s still a good idea to have one. Taking this step solidifies your business and builds trust with customers.

Reach out to your local Chamber of Commerce or the Small Business Administration (SBA) to see if you need a license and what kind you should get.

7. Learn how to price your services

Next, it’s time to decide how much to charge for your carpet cleaning services.

Carpet cleaning typically costs 16–28¢ per square foot, but this is a ballpark estimate. Business owners can adapt this rate based on how they want to charge per project. Options include:

• Hourly rate
• Flat rate
• Per room rate
• Square footage rate
• Specialty service rate

For example, if the average bedroom is 130 square feet, you can safely charge $20.80–$36.40 per bedroom. However, you might find that per room costs lower the amount you make per job site. In that case, consider charging a flat service rate (such as $75), for any site visit.

Factors to consider in carpet cleaning prices

You can figure out how much a job will cost by considering your expenses. This includes:

• Calculating your labor hours
• Adding payroll expenses, overhead, and other fees
• Factoring in profit margin
• Knowing how much supplies per job cost
• Adding any required taxes

READ MORE:How much to charge for cleaning services

8. Buy carpet cleaning equipment

You’ll need professional carpet cleaning equipment to run your new business. Here’s a shopping list to get you started:

9. Get carpet cleaning business insurance

Small business insurance protects your carpet cleaning company in case of any damage, accidents, or other problems. It’s a good idea to get your own insurance—and it may even be required in your area.

Here’s the minimum coverage to include in your carpet cleaning insurance policy:

• General liability insurance in case of personal injury or property damage
• Commercial property insurance to cover your office and carpet cleaning equipment
• Business income insurance to keep your business running after an incident or disaster

You can get these bundled together as a business owner’s policy. You may also want extra coverage in case of situations like vehicle damage, employee injuries or complaints, lawsuits, or criminal damage.

Take time to research the right insurance plan, and interview various providers in your area to make sure that you get an affordable, competitive monthly rate.

10. Market your business and get your first customers

Most people only require carpet cleaning once or twice a year. That means you’ll need to focus on reaching new customers and building a list of repeat clients.

You can start securing new business by following these carpet cleaning marketing strategies:

• Encourage word of mouth marketing from satisfied customers by setting up a referral program and asking for online reviews.
  
• Build a carpet cleaning website where potential customers can learn about your services, see before-and-after photos of cleaned carpets, and book services online.
  
• Set up social media profiles on Facebook, Twitter, or Instagram to introduce your business to the community and show off your work. Use platforms where your ideal customers spend time online, and regularly post content and engage with followers.
  
• List your business on lead generation sites and online directories where potential clients search for carpet cleaners, like Google Business, Yelp for Business, and Bing Places.
  
• Print carpet cleaning flyers or leave door hangers to reach potential customers door-to-door in the areas where you’d like to work.
  
• Partner with other local businesses like house cleaners or realtors to find potential customers. Carpet cleaning is a great add-on for deep cleaning services. Additionally, realtors may need your business for staging.