1.Do you want to start carpet cleaning business?

Do you want to start an immensely profitable business, which doesn’t require a large investment, a prior experience or in-depth knowledge? Well, <strong>starting a carpet cleaning business<strong>, will fulfill all these requirements.

To help you in writing an effective business plan for this business, we are providing you a sample business plan for the startup, ‘Gary Cleaners’ based in Atlanta.

2.Executive Summary

2.1 The Business

Gary Cleaners will be a registered and licensed carpet cleaning business based in Atlanta. The business will be owned by Gary Jude, who is intended to provide his services ranging from dry cleaning the spots to pressure wash the carpet while removing it from its place.

In this <strong>carpet cleaning business plan template<strong>, you will be learning how to start this business and attract the major customers.

2.2 Management

Carpet Cleaning Business requires a thorough management plan about the equipment needed and the required persons; if you are not starting this business as an individual. The management plan of Gary Cleaners is given here if you are looking for <strong>how to start a carpet cleaning business<strong>.

Gary will hire just four persons and will buy the required machinery before one week of the launch of the business. He will be hiring his staff one week before so he will be able to train them for high-quality service.

2.3 Customers

Before writing your <strong>carpet cleaning business plan<strong> do research on who will be your customers to understand their needs. Our customers will vary from residents to commercial businesses and companies.

2.4 Target of the Company

Our target is to become the most renown and trusted carpet cleaning business in whole of Atlanta.

Carpet Cleaning Business Plan 1

3.Company Summary

3.1 Company Owner

Gary Jude will be the owner of Gary Cleaners. To start carpet cleaning business, a person who feels confident in cleaning the old rugs and carpets without considering it a shame is required. Gary is indeed passionate about this cleaning business and he’ll make his way through all the obstacles and competitors.

3.2 Why the Business is being started

The business is started to avail the carpet cleaning business opportunity. Gary knows that there is an increasing demand for carpet cleaners, as it is necessary for every household, company or hotel to ensure proper cleaning and maintenance of carpets. Replacing carpets or sending them to some other place to get washed are tedious tasks, so Gary will provide this service using the latest means, without removing fitting of carpet from its place. It will surely be a source of making enough carpet cleaning business income and profit for him.

3.3 How the Business will be started

Starting carpet cleaning business is not strenuous work, nor that it requires a huge investment. You will just need equipment like carpet cleaning brushes, some chemicals, vacuum cleaner, carpet cleaning machine, and flexible pipes. Gary has decided to rent an office and hire the required staff one week before the launch to make the required preparations.

The major startup costs are summarized in the column chart below.

Carpet Cleaning Business Plan 3

Start-up Expenses
Research and Development$32,750
Expensed Equipment$32,750
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
Total Requirements$245,000
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
Non-cash Assets from Start-up$18,750
Cash Requirements from Start-up$0
Additional Cash Raised$18,750
Cash Balance on Starting Date$21,875
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$255,000


Before you <strong>start your own carpet cleaning business<strong>, it is advisable to decide which services you would like to provide. Or to which sector, commercial or residential, you will be providing your services.

Gary Cleaners will serve both residential and commercial community; the services it will provide are given here:

  • Cleaning rugs and carpets by using steam cleaning method i.e. by injecting hot boiling water under high pressure and by using carpet shampooing method i.e. by scrubbing carpet by a foamy chemical
  • Dyeing used carpets
  • Removing stains from carpets
  • Restoring old carpets

5.Marketing Analysis of Carpet Cleaning Business

Before researching on <strong>how to open a carpet cleaning business<strong>, you must analyze the market and figure out whether the market needs your services or not.

In the case of the carpet cleaning business, you are really fortunate about your market. Carpets are installed in rooms, on stairs, in the lounge in almost every house, hotels, and some companies, followed by a need for cleaning and maintaining them. This need is what makes this business profitable. Nobody likes dirty and spotted carpets, and nobody will ever want to create an uncomfortable and unhealthy environment. Thus implying that you can earn large revenue provided that you plan your business successfully.

5.1 Market Trends

More than 39 thousand carpet cleaning businesses are running in the United States according to the latest measures by IBISWorld. In 2018 alone, these carpet cleaning companies have earned a revenue of $5 billion. The industry is responsible for employing more than 69 thousand people in the United States. The demand for this business is high regardless of seasonal and income variations. Not only this, experts have also forecasted annual growth of 1.9% for this business after analyzing different statistics.

It indicates that you need not to worry if you are going to start your business. If you are anxious about <strong>how much to start a carpet cleaning business<strong>, then keep in your mind this business is one of those businesses which requires a very less amount as a startup.

5.2 Marketing Segmentation

Analyzing the market and identifying the groups of people who can act as your potential customers will be a great benefit for you. After knowing the segments of your potential customers, it will be easier for you to plan how to start the business and how to do effective <strong>marketing for carpet cleaning business<strong>.

The segments of the market to be future customers as identified by Gary Cleaners are given here:

Carpet Cleaning Business Plan 5

5.2.1 Hotels & Restaurants: Our major customers will be the restaurants and hotels who have wall to wall carpets and its very costly for them to remove their fitting, get them washed and install again. They are also expected to utilize our other services like steam cleaning, vacuum cleaning, dyeing and removing stains from their carpets. As their carpets are used publicly, so they will frequently require our services.

5.2.2 Home Owners & Residents: This category will include the residents who have no time to clean their carpets effectively. This category will require us to do their work timely and properly.

5.2.3 Companies & Educational Institutes: Last group of our target customers will be the educational institutes, companies, and business areas. This group of our customers will require an efficient cleaning of carpets without creating any disturbance for them. And we’ll prove ourselves to be the best choice for them.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Home owners & residents32%11 43313 34416 55318 74520 54513,43%
Hotels & restaurants48%22 33432 34443 66552 54466 43210,00%
Companies & institutions20%12 86714 43315 99917 56519 13115,32%
Total100%46 63460 12176 21788 854106 1089,54%

5.3 Business Target

Our business target is to become the most renown carpet cleaning service in Atlanta, moreover, our financial goals are:

  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year

5.4 Product Pricing

In the early stages of our business, we'll be having certain discounts and low prices for commercial sector e.g. hotels and institutes. This will enable us to get introduced to a wide range of customers.


After having a detailed marketing analysis in your <strong>commercial carpet cleaning business<strong>, you have to follow just some steps after which you will be able to initiate your <strong>carpet cleaning business start up<strong>. It is your time now to develop a powerful plan to attract your customers. The thing you must focus on if you are looking for <strong>how to start a carpet cleaning business with no money<strong> is your sales strategy plan to widen your approach towards your customers.

6.1 Competitive Analysis

Gary is confident about his dedication and skills, thus the biggest competitive advantage of Gary Cleaners will be its efficient, quick and exemplary service. Secondly, all our staff will be highly customer care oriented and they will treat your property and your requirements in the best way one can do. We'll be using latest techniques to clean your carpets so there will be no need for replacing them or removing their fitting, our staff will clean them as it is where they are. Lastly, we will be using steam cleaning technique which none of our competitor in the market is using now. This technique will ensure deep cleansing and quick dry of your carpets without deteriorating their quality.

6.2 Sales Strategy

To increase our sales from the very beginning of our startup, Gary Cleaners will use the following advertisement techniques:

  • We'll offer a 10% discount to our customers from the commercial sector, for the first five months of our launch.
  • We'll carry out a large scale campaign on social media as a tool for advertisement.
  • We’ll distribute our flyers to let people know about the techniques and efficiency we will be applying.

6.3 Sales Monthly

Our forecasted monthly sales are given in the column chart below.

Carpet Cleaning Business Plan 7

6.4 Sales Yearly

Our forecasted yearly sales are given in the column chart below.

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6.5 Sales Forecast

Considering the market demand and the quality of our services, our sales pattern is expected to increase with years. Our forecasted yearly sales are summarized in the column charts below.

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The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Sales Forecast
Unit SalesYear 1Year 2Year 3
Carpet cleaning1 887 0302 680 3202 588 240
Dyeing802 370815 430823 540
Stain removal539 3207702301 002 310
Carpet restoration265 450322 390393 320
TOTAL UNIT SALES3 494 1704 588 3704 807 410
Unit PricesYear 1Year 2Year 3
Carpet cleaning$140,00$150,00$160,00
Dyeing$600,00$800,00$1 000,00
Stain removal$700,00$800,00$900,00
Carpet restoration$650,00$750,00$850,00
Carpet cleaning$2 149 800$2 784 000$3 383 200
Dyeing$120 050$194 500$268 500
Stain removal$50 110$71 600$93 000
Carpet restoration$139 350$194 600$249 850
Direct Unit CostsYear 1Year 2Year 3
Carpet cleaning$0,70$0,80$0,90
Stain removal$0,30$0,35$0,40
Carpet restoration$3,00$3,50$4,00
Direct Cost of Sales
Carpet cleaning$989 300$1 839 000$2 679 700
Dyeing$66 600$119 900$173 200
Stain removal$17 900$35 000$52 100
Carpet restoration$19 400$67 600$115 800
Subtotal Direct Cost of Sales$1 294 100$1 699 400$2 104 700

7.Personnel plan

The success of your <strong>business carpet cleaning<strong> will be dependent upon the skill and dedication of your staff. As carpet cleaning is the business which needs a little number of employees conditioned that they are confident about their work.

7.1 Company Staff

For running his business Gary will supervise the staff by himself, and will hire the following staff one week before the launch to train them for future work:

  • 1 Front Desk Officer to receive orders and making reservations
  • 4 Cleaners to do the cleaning work
  • 1 Accountant to maintain financial records
  • 1 Driver to provide transportation facility
  • 1 General Assistant to manage the company's website and advertisements
Personnel Plan
Year 1Year 2Year 3
Front Desk Officer$50 000$55 000$60 000
Cleaners$145 000$150 000$155 000
Accountant$85 000$95 000$105 000
Driver$42 000$45 000$48 000
General Assistant$50 000$55 000$60 000
Total Salaries$92 000$100 000$108 000

8.Financial Plan

The last step before opening your carpet cleaning company is to make a financial plan. Your financial plan must cover the expenses of the place you will rent, equipment you will buy, the money you will spend on advertisement and the salaries you will have to pay. By having this complete idea of expenditure, you will be able to formulate techniques to balance them with the profits earned.

Although this is one of those businesses which don't require a very large investment but still if you want to <strong>start a carpet cleaning business from home<strong>, you will benefit more financially. As you will need to just hire one freelance person to make reservations and managing your website while doing the cleaning work by yourself.

Since Gary has decided to service the commercial sector also, so he found it better to rent a proper place and employing a few people other than himself.

8.1 Important Assumptions

General Assumptions
Year 1Year 2Year 3
Plan Month123
Current Interest Rate10,00%11,00%12,00%
Long-term Interest Rate10,00%10,00%10,00%
Tax Rate26,42%27,76%28,12%

Carpet Cleaning Business Plan 13

Brake-Even Analysis
Monthly Units Break-even5530
Monthly Revenue Break-even$159 740
Average Per-Unit Revenue$260,87
Average Per-Unit Variable Cost$0,89
Estimated Monthly Fixed Cost$196 410

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
Year 1Year 2Year 3
Sales$309 069$385 934$462 799
Direct Cost of Sales$15 100$19 153$23 206
TOTAL COST OF SALES$15 100$19 153$23 206
Gross Margin$293 969$366 781$439 593
Gross Margin %94,98%94,72%94,46%
Payroll$138 036$162 898$187 760
Sales and Marketing and Other Expenses$1 850$2 000$2 150
Depreciation$2 070$2 070$2 070
Leased Equipment$0$0$0
Utilities$4 000$4 250$4 500
Insurance$1 800$1 800$1 800
Rent$6 500$7 000$7 500
Payroll Taxes$34 510$40 726$46 942
Total Operating Expenses$188 766$220 744$252 722
Profit Before Interest and Taxes$105 205$146 040$186 875
EBITDA$107 275$148 110$188 945
Interest Expense$0$0$0
Taxes Incurred$26 838$37 315$47 792
Net Profit$78 367$108 725$139 083
Net Profit/Sales30,00%39,32%48,64%

8.3.1 Profit Monthly

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8.3.2 Profit Yearly

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8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly

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8.4 Projected Cash Flow

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Pro Forma Cash Flow
Cash ReceivedYear 1Year 2Year 3
Cash from Operations
Cash Sales$40 124$45 046$50 068
Cash from Receivables$7 023$8 610$9 297
Additional Cash Received
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
SUBTOTAL CASH RECEIVED$47 143$53 651$55 359
ExpendituresYear 1Year 2Year 3
Expenditures from Operations
Cash Spending$21 647$24 204$26 951
Bill Payments$13 539$15 385$170 631
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$0$0$0
SUBTOTAL CASH SPENT$35 296$35 489$43 882
Net Cash Flow$11 551$13 167$15 683
Cash Balance$21 823$22 381$28 239

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
AssetsYear 1Year 2Year 3
Current Assets
Cash$184 666$218 525$252 384
Accounts Receivable$12 613$14 493$16 373
Inventory$2 980$3 450$3 920
Other Current Assets$1 000$1 000$1 000
TOTAL CURRENT ASSETS$201 259$237 468$273 677
Long-term Assets
Long-term Assets$10 000$10 000$10 000
Accumulated Depreciation$12 420$14 490$16 560
TOTAL ASSETS$198 839$232 978$267 117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9 482$10 792$12 102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$9 482$10 792$12 102
Paid-in Capital$30 000$30 000$30 000
Retained Earnings$48 651$72 636$96 621
Earnings$100 709$119 555$138 401
TOTAL CAPITAL$189 360$222 190$255 020
TOTAL LIABILITIES AND CAPITAL$198 839$232 978$267 117
Net Worth$182 060$226 240$270 420

8.6 Business Ratios

Ratio Analysis
Sales Growth4,35%30,82%63,29%4,00%
Percent of Total Assets
Accounts Receivable5,61%4,71%3,81%9,70%
Other Current Assets1,75%2,02%2,29%27,40%
Total Current Assets138,53%150,99%163,45%54,60%
Long-term Assets-9,47%-21,01%-32,55%58,40%
TOTAL ASSETS100,00%100,00%100,00%100,00%
Current Liabilities4,68%3,04%2,76%27,30%
Long-term Liabilities0,00%0,00%0,00%25,80%
Total Liabilities4,68%3,04%2,76%54,10%
NET WORTH99,32%101,04%102,76%44,90%
Percent of Sales
Gross Margin94,18%93,85%93,52%0,00%
Selling, General & Administrative Expenses74,29%71,83%69,37%65,20%
Advertising Expenses2,06%1,11%0,28%1,40%
Profit Before Interest and Taxes26,47%29,30%32,13%2,86%
Main Ratios
Total Debt to Total Assets2,68%1,04%0,76%67,10%
Pre-tax Return on Net Worth66,83%71,26%75,69%4,40%
Pre-tax Return on Assets64,88%69,75%74,62%9,00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19,20%21,16%23,12%N.A.
Return on Equity47,79%50,53%53,27%N.A.
Activity Ratios
Accounts Receivable Turnover4,564,564,56N.A.
Collection Days9299106N.A.
Inventory Turnover19,722,5525,4N.A.
Accounts Payable Turnover14,1714,6715,17N.A.
Payment Days272727N.A.
Total Asset Turnover1,841,551,26N.A.
Debt Ratios
Debt to Net Worth0-0,02-0,04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120 943$140 664$160 385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0,450,480,51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23,6627,0130,36N.A.
Sales/Net Worth1,681,290,9N.A.
Dividend Payout000N.A.