How to Start a Carpet Cleaning Business In 2024

Carpet cleaning businesses are both profitable and evergreen. That means you can make money 365 days a year. 

This is a great business to get into since carpet are found everywhere, in homes, offices, and commercial spaces; and they all need regular cleaning creating a never ending demand for this service.

Running your own carpet cleaning business also allows you to have maximum flexibility in both your time and the size of your business.

Whether you are looking to run a small operation or a scalable business, carpet cleaning offers you the opportunities for both.

 

Market Demand and Growth Potential

It is estimated that there are over 255 million homes in the USA and Canada. Research shows that the carpet cleaning industry had an estimated market size of over 55 Billion in 2022 and was only expected to grow from there. 

What does that mean for you? There's a-lot of carpets out there and a lot of customers willing to pay to get them cleaned. 

Profit Potential: How Much Can You Make?

With an industry average cost of 0.25 - 0.50 per square foot of carpet cleaned. You can expect to charge anywhere from $250 to $500 per house. The average rate charged for a full house cleaning is around $380. 

That's over $700 per day if you do just 2 jobs! And because of the low cost to run this business your profit will be high (75-80%) that means most of the money you charge will stay in your pocket after your expenses. 

Purpose of This Guide: Step-by-Step Support for New Entrepreneurs

This article is a practical, beginner friendly guide to help you understand the steps needed to start your carpet cleaning business. 

Be assured that you do not need extensive experience or a large budget to start this business, the good news for you is that most successful carpet cleaning businesses are small local companies that started out just like you! 

Customers don’t want a global corporation cleaning their home, they want someone they trust. That's where you have an advantage. 

Don’t forget to read all the way to the bottom of this article for our recommended next steps to start! 

 

Creating a Simple Business Plan That Works

• Outline Key Components: Include all essential parts of a business plan, such as target customer demographics, services offered, budget, and financial goals.
• Budget Planning: Cover startup costs, equipment costs, licensing, marketing, and daily operating expenses. Mention budget templates to help manage finances.

You’ll find a lot of articles and blogs out there telling you to write a business plan, usually in that long, formal format that feels like writing a massive book report—the kind you might have paid a friend to help with back in high school. 

We're here to tell you while it doesn't hurt to go in depth on your business plan, sometimes a simple plan that you can continue to add to down the road is a better way to start. 

Key Elements Of Your Business Plan

 

1. Target Customer

This section should be in your business plan as it will help you when it comes to marketing. Its easier to sell your services when you know who you're talking to. 

• Are you planning on selling your services to residential homeowners, commercial office buildings, apartment complexes, high end, low end, etc. 
• Who is living or owning these spaces you plan to sell to? The elderly, young families, real estate management companies? 

 

2. Services Offered

It is important to decide on what services you are going to offer in the beginning, this will help you get an idea of what equipment you need, training is required, pricing structure and potential revenue. 

• We recommend offering carpet cleaning and upholstery cleaning services when you first start your business. This means you can clean the floors and the furniture.
• You can also get special chemicals to remove spot stains like urine or coffee. You can charge even more for these services as they often take more time. 

3. Budget

Budget is likely the most important part of your business plan. Keep it simple. 

• Startup Costs: How much will it cost you before you can start making money. 
• Operating Costs: How much does it cost you to run the business day to day.
1. Monthly Costs: Monthly costs are any expenses that don't change month to month, like insurance.
2. Variable Costs: Variable costs are for expenses that vary in amount each month like gas, chemicals and advertising. 
• Projected Revenue: How much money you plan to make.
1. Income streams: List your services here.
2. Pricing strategy and Volume: Provide a basic estimate of how many jobs you expect per month or quarter, and at what average rate.
3. Break-Even Analysis: Calculate the monthly revenue needed to cover all costs, helping you set realistic financial targets.

 

4. Financial Goals

Provide a summary of the financial goals for the first year (e.g., covering startup costs, reaching a certain profit margin, or securing a commercial contract).

We are all here to build value and make money. So the key here is:

1. Who you are selling to. 
2. What you are selling. 
3. How much you are charging. 
4. How much you need to sell to be profitable. 

Figure all that out and you are well on your way to success. 

 

Purchase Essential Equipment and Supplies

It can be difficult to understand what's nice to have and what's a need to have when it comes to carpet cleaning equipment.

Equipment to Start a Carpet Cleaning Business

1. Carpet cleaning machine: 
• You need a machine to clean the carpets, there are many different types from shampoo machines to agitating brush rollers, but we recommend only 1 option for beginners. That is a hot water extraction machine. These machines clean the carpet using a special wand that sprays high pressure water on the carpet and vacuums the water up at the same time sucking the dirt out with it. These are affordable machines, powerful, and versatile for people starting out of their car. 

Note: Stick around to the end of this article to see our recommended machines for new businesses. 

1. Hose and Wand Package: 
• This wand is what you will use to move over the carpet and clean, it attaches to your machine via 2 hoses. 1 is a solution hose that sprays the clean water, the other is a vacuum hose that sucks up the dirty water. 
2. Upholstery Tool:
• This is a small handheld tool that replaces the carpet wand when you are cleaning upholstery furniture like couches or loveseats. 
3. Chemicals and pump sprayer: 
• You will need a couple chemicals to help remove stains when cleaning carpets. 
1. Prespray: This is a spray that goes over the full carpeted area before cleaning to help loosen dirt and grime for easier cleaning.
2. Brown Spot Remover: This is for hard to remove coffee stains or first stains.
3. Urine Remover: This chemical is pretty self explanatory. 
• Pump sprayer: This is for spraying your chemicals on the affected areas. 
4. Accessories:
• These are tools that make your cleaning easier. Some to mention are a small brush, water bucket, hose and tool bag, measuring cup, furniture sliders, and corner guards. 

Equipment For Growth

Once you have your business up and running or if you are ambitious from the start you can invest a little bit more into a couple more tools that will speed up your cleaning, improve your quality of work, and ultimately make you more money. 

1. Commercial Vacuum Cleaner: 
• This will help get most of the dirt out of the carpet before you even run your extractor machine. Making the job quicker and more effective. 
2. Air Mover:
• This is like a large fan that helps with the drying process. Hot water extraction can take a while to dry and if you can dry your carpets faster than the competition, your customers will pay handsomely for it. 
3. Floor Buffer:
• This is an upright machine that spins a circular disk around on the carpet to agitate the chemicals in the carpet helping for a deeper clean and quicker job times. 

Get the Right Training and Certifications

When launching your carpet cleaning business, it’s important to develop the right skills, gain practical experience, and acquire certifications that build credibility. Training will not only help you provide excellent service but also reassure clients that they’re hiring a knowledgeable, trustworthy professional. Here’s how to get started:

Skill Development

To run a successful carpet cleaning business, you’ll need a mix of technical and customer service skills:

• Equipment Handling: Learn the ins and outs of operating carpet cleaning machines, vacuums, and specialty tools like upholstery wands and stain removers. Understanding how to maintain and troubleshoot equipment will save you time and costs in the long run.
• Stain Treatment and Product Knowledge: Get familiar with cleaning solutions, stain removers, and deodorizers—particularly which products work best on different types of carpet and stains. This knowledge will allow you to offer targeted services, like pet stain or odor removal.
• Customer Service Basics: Good communication and service are critical for building a strong reputation. Skills in explaining your services, setting client expectations, and handling concerns or complaints can make all the difference in client satisfaction and repeat business.

Certification Options

Earning industry-standard certifications not only improves your skills but also boosts your credibility, especially with high-paying clients. Here are a few popular certifications to consider:

• Institute of Inspection Cleaning and Restoration Certification (IICRC): The IICRC offers several programs relevant to carpet cleaning, such as:
• Carpet Cleaning Technician (CCT): Covers the basics of carpet cleaning, including techniques, tools, and safety protocols.
• Upholstery and Fabric Cleaning Technician (UFT): Covers the basics of upholstery and fabric cleaning, tools needed, safety protocols. 

These courses can be done both online and in person and are held through a network of different companies. The best thing to do is visit the IICRC website and check what courses are being held when and where. 

Note: Usually there is more availability for online courses.

Gaining Experience

There are many ways to gain experience but we think the best way is to get your hands dirty. Start practicing by cleaning a family or friends carpet, get some good reviews and hit the road. 

 

Choosing Your Business Structure and Registering Legally

Choosing the right business structure is a critical step in setting up your carpet cleaning business, as it affects everything from your legal liability to how you’re taxed. Here’s a comparison of the two most common structures for small business owners:

Sole Proprietorship

• Overview: A sole proprietorship is the simplest business structure, where the owner and the business are considered the same legal entity.
• Costs: This option is inexpensive to set up, often requiring only basic registration with provincial or local authorities. In Canada, you might only need a business name registration, which is generally under $100.
• Benefits: A sole proprietorship is easy to manage, with minimal paperwork and reporting requirements. You report business income and expenses on your personal tax return, simplifying tax filing.
• Liability Considerations: The downside of a sole proprietorship is that you’re personally liable for any debts or legal issues. This means that if the business faces a lawsuit or owes debts, your personal assets (such as your home or car) could be at risk.

Limited Liability Company (LLC)

• Overview: In Canada, an LLC is typically referred to as a corporation, where the business is treated as a separate legal entity from its owners. This separation provides liability protection, meaning that your personal assets are generally protected if the business faces legal issues.
• Costs: Setting up a corporation involves more paperwork and a higher upfront cost—typically around $200 to $300, depending on your province. You’ll also need to file annual returns, which may incur additional fees.
• Benefits: The primary benefit of incorporating is liability protection, which means personal assets are usually safe in the event of business-related lawsuits or debts. Additionally, corporations may benefit from lower tax rates and can reinvest profits to grow the business.
• Liability Considerations: Corporations provide limited liability, making them ideal if you’re planning to scale or take on riskier contracts. However, there’s more administrative work involved, and corporate taxes are filed separately, requiring more detailed bookkeeping.

Which to Choose?

If you’re starting small, a sole proprietorship can be a simple, low-cost option that allows you to test the waters. For those who are committed to building a larger business with higher-value contracts, or once you start making enough money for the tax benefits, incorporation may be worth the added cost and paperwork due to the liability protection and tax breaks it provides.

 

Registering Your Business in Canada

Registering your carpet cleaning business in Canada involves a few key steps to ensure you meet legal requirements and can operate smoothly. Here’s a Canada-specific guide to getting set up:

1. Choose a Business Name and Register It

• Name Registration: Choose a unique name that reflects your services. Check its availability with your province’s business registry to avoid conflicts with other businesses. 
• Registration Process: In most provinces, you’ll register your business name online through the provincial registry or through the Canada Business Network, with fees generally under $100.

2. Obtain a Business Number (BN) from the CRA

• What It Is: A Business Number (BN) is a unique identifier for your business with the Canada Revenue Agency (CRA), used for tax purposes. You’ll need a BN if you plan to charge GST/HST or if you hire employees.
• How to Get It: You can apply for a BN by registering online with the CRA, by phone, or through a provincial registry service. This step is free of charge and is essential for managing taxes and payroll efficiently.

3. Apply for a Business License and Permits

• Local Requirements: Depending on your city or municipality, you may need a business license to operate legally. This is especially important if you’re providing services in clients’ homes or offices. Check with your local city hall or municipal office for specific requirements and fees, which can range from $50 to $200.
• Special Permits: Some provinces or cities may require specific permits for cleaning services, especially if you’re handling chemicals or disposing of waste. Research any industry-specific regulations and apply for the necessary permits before starting operations.

4. Register for GST/HST (if applicable)

• Threshold Requirements: If your annual revenue is expected to exceed $30,000, you’re required to register for GST/HST and charge it on your services. Even if your revenue is below this amount, voluntarily registering can allow you to claim input tax credits on business expenses.
• Registration Process: You can register for GST/HST through the CRA’s Business Registration Online (BRO) portal or by calling the CRA. Be sure to keep track of your GST/HST collections and remittances, as they are filed separately from income taxes.

5. Set Up Payroll (When Hiring Employees)

• CRA Payroll Account: If you plan to hire employees, you’ll need a CRA payroll account to handle deductions for income tax, EI, and CPP. This account can be set up at the same time as your BN registration.
• Local Employment Standards: Familiarize yourself with provincial labor laws, which govern employee wages, hours, and working conditions. These standards vary by province, so it’s essential to stay compliant if you’re building a team.

Setting Up a Business Bank Account

One of the first steps in establishing a legitimate and financially organized carpet cleaning business is setting up a dedicated business bank account. This ensures a clear separation between personal and business finances, which simplifies bookkeeping and helps maintain accurate records.

Why It Matters

A separate business account is essential for tracking income and expenses, making tax season far simpler. Trust us its well worth the time to set up. 

By keeping business transactions apart, you create a clean paper trail that’s essential for growth—especially if you plan to apply for loans or credit in the future. In some cases, certain business structures, like LLCs, require a separate account to maintain liability protection.

Steps to Open Your Business Account

1. Gather Necessary Documents: Most banks will require your business registration details, personal identification, and possibly your Employer Identification Number (EIN) if you’re operating in Canada or the U.S.
2. Compare Account Options: Look for accounts with minimal fees and benefits like free transactions or cash-back rewards. Some banks offer business-specific perks like merchant accounts or lines of credit, which may be useful as your business grows.
3. Establish a Relationship with Your Bank: Building a relationship with your banker can be advantageous, especially when it comes to future financing. They may also offer guidance on additional products, such as credit cards or savings accounts tailored for small businesses.

Pro Tip: Set up online banking and consider linking accounting software like QuickBooks or Xero to your bank account. This will help you keep track of your profit, and save a lot of money and time come tax season whether you are planning on doing it yourself or hiring an accountant. 

Get Business Insurance

Cleaning business insurance is a specialized policy for commercial and residential cleaning professionals, providing protection against specific risks and liabilities on the job. While clients expect reliable and thorough service, mistakes can happen. If a client sues due to an incident, the financial consequences can be severe.

Key Coverages in Cleaning Business Insurance:

• Commercial General Liability (CGL) Insurance: Protects against third-party bodily injuries or property damage (e.g., accidentally damaging a client’s property). Often required in client contracts.
• Tools and Equipment Insurance: Covers repairs or replacement of essential cleaning tools (e.g., vacuums, steam cleaners, floor buffers).
• Pollution Liability Insurance: Covers damages to a client’s property or health due to chemical use or pollutants.
• Professional Liability Insurance: Covers claims of negligence or service quality issues, like client dissatisfaction with cleaning results.

Cost of Insurance:

For a small residential cleaning business, general liability coverage may start at around $450 per year, with prices depending on factors like:

• Number of employees
• Types of services (commercial vs. residential)
• Location, experience, and revenue

Who Needs Cleaning Business Insurance?

Cleaning insurance is crucial for various cleaning professionals, including:

• Commercial and office cleaners
• Residential cleaning companies
• Janitorial service providers
• Carpet and rug specialists

This insurance offers financial protection for unexpected liabilities, helping cleaners operate confidently and securely.

One option we recommend is Zensurance: https://www.zensurance.com/cleaning-insurance 

 

Pricing Your Services to Compete

Choosing a Pricing Model: 

1. Per Square Foot
• How It Works: Charge clients based on the total square footage cleaned. This is ideal for large spaces, like offices or commercial properties, where the size can vary significantly.
• Pros: Provides a clear and consistent rate for both you and the client, especially for larger jobs.
• Cons: Calculating square footage requires more upfront time, and clients with smaller spaces may prefer a simpler rate structure.
2. Per Room
• How It Works: Set a flat rate per room, regardless of size (with options for small, medium, and large rooms if preferred).
• Pros: Simple for clients to understand and budget for. It also allows you to charge more for individual rooms that require extra work, such as pet stain removal.
• Cons: Rooms can vary greatly in size, which may affect profitability if the job takes longer than anticipated.
3. Flat Rate (Per Job)
• How It Works: Offer a set price for the entire job based on a standard scope of work, often with an initial site visit or questionnaire to estimate the job.
• Pros: Straightforward for both parties and ideal for residential clients looking for a fixed, predictable cost.
• Cons: May be less flexible if the job takes longer or is more challenging than expected, so it’s crucial to accurately assess job requirements upfront.

Consider offering multiple options initially to see what resonates best with your clients, then adapt based on the feedback and profitability of each model.

 

Calculating Costs and Margins: 

Calculate Core Costs:

• Labor: You have no labor costs unless you hire employees.
• Supplies: Include the cost of cleaning solutions, equipment wear-and-tear, and any other consumables.
• Travel: Factor in fuel and vehicle wear based on mileage to and from the client’s location.

Daily Running Costs = Add up all your monthly expenses like advertising, insurance, and subscriptions and then divide by 30 to get your daily running expenses. 

For example, if supplies cost $10, travel is $5, and your daily running cost is $30. The total costs for a job are $45.

Stay Profitable: Example Scenario

John has a new client who needs carpet cleaning for two small rooms and one large room. Here’s how he charges:

• Small rooms (100-200 sq ft): $60 each
• Large rooms (200-400 sq ft): $100 each

John’s basic expenses, like supplies, travel, and daily costs, add up to about $50. So he needs to earn at least $50 per job to cover his costs.

For this job, John will charge $220 total (2 small rooms at $60 each and 1 large room at $100). After expenses, he’ll make $170 in profit for less than two hours of work—that’s over $85 per hour!

• To make your business sustainable you have to stay profitable. Finding how much you need to charge to stay competitive but still make money is key. Adjust your rates to make the most amount of profit but stay competitive. 

Developing a Marketing Plan that Fits Your Budget

Low-Cost Marketing Tactics

1. Start with Word of Mouth
• Tell family, friends, and neighbors about your new business.
• Ask them to recommend you to anyone who might need carpet cleaning.
• Referrals from people they trust can help you build a solid reputation quickly.
2. Use Your Community
• Hand out business cards or flyers at local spots like community centers or schools.
• Mention your services at local events to spread the word casually.

Creating an Online Presence

1. Build a Simple Website
• Set up a one-page website with essential details like services, pricing, and contact info.
• Affordable platforms like Wix or Squarespace make this easy and professional-looking.
2. Social Media Profiles
• Set up business profiles on Facebook and Instagram.
• Post before-and-after photos of your work and encourage clients to leave reviews.
• Use Google My Business to show up in local searches and make it easy for clients to find you.

Networking and Partnerships

1. Partner with Realtors
• Realtors often need reliable carpet cleaning for new homeowners or property staging.
• Reach out and offer your services as a go-to recommendation.
2. Collaborate with Cleaning Services
• Connect with local cleaning companies that may need carpet specialists.
• Set up a referral system where you can send clients to each other.
3. Team Up with Hardware and Flooring Stores
• Talk to local stores about leaving business cards or flyers at their counters.
• Their customers may need carpet cleaning for home renovations or new flooring.

Essential Tips for Running Your Business

1. Prioritize Customer Satisfaction
• Follow up after each job to ensure they’re happy and encourage repeat business.
2. Stay Organized with Scheduling
• Use simple scheduling tools (like Google Calendar) to stay on top of appointments.
• Plan routes efficiently to save on travel time and fuel costs.
3. Track Expenses and Income
• Keep records of all expenses (supplies, fuel, equipment maintenance) and income.
• Use basic accounting software to help manage finances and keep an eye on profitability.
4. Invest in Regular Equipment Maintenance
• Clean and check your machines after each job to keep them running well.
• Schedule professional maintenance every few months to avoid breakdowns.
5. Establish a Simple Payment System
• Offer easy payment options, like cash, credit cards, or e-transfer.
• Set up invoices and receipts for professional record-keeping and tax prep.
• Consider investing in a point of sale system like Square.
6. Manage Supplies Effectively
• Keep track of cleaning products, tools, and other supplies to avoid running out.
7. Build and Maintain Relationships
• Stay in touch with clients, especially repeat customers, to build loyalty.
• Continue networking with local businesses for more referrals and partnerships.
8. Schedule Time for Marketing

• Dedicate time each week to post on social media or connect with local businesses.
• Keep building your client base even when you’re busy with current jobs.

Ready to build your business and be your own boss? 

Now you have a pretty good understanding of everything that goes into getting a carpet cleaning company up and running. 

What now!?

The hardest part to starting a carpet cleaning business is choosing the right equipment. 

If you are ready to start your business and can’t wait to be your own boss, set your own hours, have a more flexible schedule for your family and friends, then don’t wait. 

We offer an easy selection of affordable carpet cleaning starter packages that include everything you need to start your business. 

The Investment: How Much To Start?

Most businesses cost around $50,000 to start, including equipment, building fees, insurance and franchise fees. Not to mention monthly royalty fees for running a franchise business taking profit away from you. 

With all inclusive packages as low as $2,999 CAD you can get your equipment and start cleaning in a matter of days! And you keep 100% of your profits. No Strings Attached. 

The Return On Investment: How Much Will You Make?

 

While the cost of these packages are substantially cheaper compared to the cost of starting other businesses, it can still seem like alot of money when you are just starting. 

The first step is to recognize that this is an investment in yourself and you are capable of making your money back very quickly if you are willing to put the work in. 

A $5,000 equipment package can be making you upwards of $700 + per day. 

You could have your business startup costs paid off in 2 weeks. After that it's all profit. 

Don’t Have the Cash? 

Not to worry, there are many options if you need help with the startup costs. 

1. Small business loans: Banks will often offer small loans under 10k for people looking to start their own business. 
2. Investment from family and friends: A great option for people looking for a small investment to start a business. 
3. Financing: When purchasing you may be eligible for financing, meaning you pay for the package in installments over a course of weeks or months. 

What Are You Waiting For? Get to Work.

Congratulations on taking the first step toward building your own successful carpet cleaning business. With the right equipment, you’re setting yourself up to deliver outstanding results to clients and make a great income along the way. Now it’s time to choose the package that’s right for you:

Ninja E600 Carpet Cleaning Starter Package: Perfect for auto detailers and residential cleaning.

Click Here To View This Package

 

Ninja 200D Carpet Cleaning Starter Package: For residential homes and small to medium commercial spaces. 

Click Here To View This Package

Ninja 500 Carpet Cleaning Starter Package: For residential and larger-scale commercial spaces.

Click Here To View This Package

Why Wait? Start Your Business Today with Affordable, All-Inclusive Packages

Each package is designed to give you everything you need to hit the ground running. Plus, with affordable pricing starting as low as $2,999 CAD, you’ll have all the essential tools without the franchise fees and hidden costs. Whether you’re looking to start small or scale fast, there’s a package built just for you.

Choose your package and start making your mark in the carpet cleaning industry today!