How Much Does it Cost to Start a Carpet Cleaning Business?

Many homeowners have wall-to-wall carpeting. Since cleaning carpets isn’t an easy chore, majority of them are willing to pay to professional carpet cleaning companies to take care of it.

This means that a carpet cleaning business can prove to be a lucrative venture. Unfortunately, starting a carpet cleaning business isn’t easy as it calls for large startup capital, equipment investments, profit management, and sound marketing strategies. In this post, we are going to show you the cost of starting a carpet cleaning business.

carpet cleaning business

Solo or Franchise

When you are thinking to step into the carpet cleaning industry, you have two choices – go solo or work with a franchise. Franchising is a good option for people who aren’t capable of enduring the hardships that come with starting their own venture. However, if you want to maintain complete control over all the aspects of your business operation and keep the share of your profits all to yourself, then you should run your own business.

Costs to Consider

  • Equipment Costs

You can’t just walk into a home with a vacuum and expect to clean the carpet to a standard your client would expect you to. So, you will obviously need high-tech equipment to carry out the professional cleaning work. Two methods that are most commonly used for cleaning carpets include low moisture carpet cleaning and hot water extraction.

  • Low Moisture Carpet Cleaning Equipment Costs

Low moisture carpet cleaning is a cheaper alternative to hot water extraction. The cost of low moisture carpet cleaning equipment is between $3,000 and $8,000.

  • Hot Water Extraction (HWE) Cleaning Equipment Costs

If you want to clean carpets with hot water extraction, you can opt for a portable extractor package. You can find a good one at about $4,000 while economical ones generally cost between $2,000 and $3,000. If you are going to use the steam carpet cleaning method, you should purchase models with higher ratings as they can remove soil more effectively.

You can also use truck-mounted cleaning equipment for hot water extraction carpet cleaning and this equipment generally costs between $20,000 and $29,999.

Transportation Costs

You will need a truck or van to transport your staff and equipment from your office to your client’s home. You might be able to get a used van or truck for about $14,000-$17,000.

Cleaning Agent Costs

Cleaning agents are less expensive than other items and you may get a spot removal kit for about $120. Rug cleaning solvents cost about $23 per gallon.

Licensing and Insurance

Licensing costs vary depending on the state so we can’t provide a figure here. On the other hand, business insurance costs usually run high. Business insurances are important as they protect your business from financial loss that may result from employee injuries, property damage, vandalism, and lawsuits.

There are different insurance policies you may require for your business. The cost of each is given below:

  • General Liability Insurance – $361 to $750 annually
  • Business Owner’s Insurance – $1,000 to $1,700 annually
  • Contractor’s Equipment Insurance – starts from $500 and up to $10,000
  • Commercial Auto Insurance – $2,200 to $2,800 annually

We have discussed some of the costs of starting a carpet cleaning business. In addition to these costs, you should also determine other costs like renting an office, marketing expenses, and payroll, etc. Before starting your own business, carefully consider all these costs to ensure that you have the funds to manage them.

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