Many people come to me seeking advice on how to start their carpet cleaning business in the Bay area. They may have a question about a specific detail or how quickly they can turn in a profit, but a surprising number of them have not thought the whole enterprise through. So I decided to start this blog and share my experience with all entrepreneurs who plan to enter the business. 

First, a few words about me. My name is Andrew Baker, and I am a proud native son of Santa Clara, California. My first brush with carpet cleaning came more than thirteen years ago, during my last summer before going to college. I needed some extra money, and my Dad had a close friend running a carpet and rug cleaning company in nearby San Jose. I mostly had to help him load and unload the equipment from his van, but I still learned more in two months than I did for the next three years in Caltech. 

I’ve run my own carpet cleaning team for nearly six years, starting single-handedly and building it to four vans and twenty employees. We survived the Covid pandemic, and we are now back on track. As the CEO and owner of a small, local-based business, I’ve made some really good choices and even more poor ones. But I have never been afraid to admit my mistakes or share the knowledge with people who want to try and see if they can do it. 

Today, I want to discuss the necessary steps and decisions before you even set up your carpet cleaning business. I’ve talked to people who believe all it takes to start stacking up calls is buying the equipment and posting a few ads in the local papers and online. Do not make the same mistake – you will be in for a rude awakening. Here is what you have to consider before going to the bank for a loan with a shaky business plan. 

Is This Really A Good Option For You?

Why do you want to start a carpet cleaning business? If you cannot give a two-sentence answer in ten seconds, you might have a problem. Money cannot be your driving force – you will have to work too hard and too long before you see a good return on your investment. So you have to be 100% certain that you want to do this. 

In my experience, the people who are most frequently and most quickly successful in the business are former cleaners who have worked for someone else. They know the tricks of the trade, how to communicate with customers and answer their questions, and most importantly – they are fully aware of the demanding time requirements of the job. 

Building a successful carpet cleaning business is a full-time commitment. You must be willing to have six or even seven-day working weeks, at least at the start of the venture. Forget about family vacations or summer holidays – people need their carpets and rug washed throughout the entire year, this is not a seasonal job. If you have considered all these factors and are still determined to proceed, let’s go to step two.

Do Your Homework – Research And Analysis

Again, if you have some experience in the industry (the more, the better), you will have a distinctive advantage. There are three key areas you have to look at:

• Your competition
• Legal requirements
• How much money you will need to start your business. 

Let’s break these down.

Who Are Your Competitors, And How Are They Doing?

I’ve heard some people say: “Man, I don’t care about the competition! I’m going to be the best version of myself, and it will be enough to be successful!” This sort of false bravado will get you nowhere fast. If you want to be competitive from the jump, you have to research:

• Who are my competitors in a ten or 20-mile radius? The number doesn’t matter, insert whatever you feel comfortable with. But you have to know your main competitors and their business model. Fortunately, the advent of online marketing, even in service-oriented industries, has made research significantly easier. 
• Once you finish this, find out what your competition is doing poorly and what they are doing well. Be as objective as you can. My tip is to create an Excel spreadsheet (or whatever alternative works for you) with the pros and cons of each company you research. 
• Then start planning on what you can do better. Some of your competitors don’t work during the weekends? There is an opening! Some of them don’t offer emergency cleaning help? You should!
• Make a comprehensive analysis of their pricing model. Many start-ups are tempted to cut their prices to attract customers. I do not think it is good tactics. First, knowledgeable customers who know the going rates will question your professional qualities. Second, you will need significantly more time to cover your initial investment. 

Legal Requirements

It is absolutely mandatory to be buttoned up on the legal side before you start your cleaning business. I advise seeking professional consultation with an attorney specialising in setting up businesses. You can set up an LLC (Limited Liability Company) or operate DBA (doing business as). You need to be fully acquainted with all required:

• Professional and specialised licensing
• Local permits (city, county, state)
• Insurance.

I particularly stress insurance – remember that you will walk into peoples’ homes and offices, and the last thing you want is a lack of insurance coverage if you are liable for damage, stolen property, etc.

Money Requirements

How costly could it be to start working as a self-employed carpet cleaner? Most people are surprised by the answer. If I were to guess, this is the number one reason for people failing in the industry – their unrealistic assessment of how much money they need to set up their business. 

Before you even come close to getting your first customer, you will have to invest in: 

• Tools
• Equipment
• Vehicle/s
• Storage space
• Licensing and fees – including legal and accounting.

If you are short on funds, you still have options – the larger carpet-cleaning contractors rent professional equipment for a reasonable fee; you can use temporary storage space until you get your legs under you. Once you start earning money, the best thing you can do is bootstrap – invest all profit in long-term equipment and tools that will make you more independent.

But I am getting ahead of myself. Enough for today, I hope I have given you enough food for thought.