Do you want to start your own flooring business and ready to take the important steps? Then it is
time to register your business with the state. To help you out, we have made this simple guide
where we will explain all the important steps you need to take to start your business. There are
many great flooring companies such as Ultra Decking. Following these steps will ensure that you
are on the right track.
Business Plan
Before starting any kind of business, you need to have a clear plan to make it a success. This
plan will help you decide on a roadmap that you need to follow in growing your business. The following
are some of the important things to consider:
Cost of Opening a Floor Installation Business
Like many other businesses, this business also has to be insured. The insurance liability coverage
is between $350 and $900 generally. Moreover, you need to have a shop and you need to add the
cost of rent which depends on the size of the shop to the business opening cost. Other expenses
include material and wages which depend on the size of your start-up.
Ongoing Expenses
There are some ongoing expenses for a business which includes raw resources, and equipment
maintenance. Raw wooden for flooring can cost $8 per square foot. On the other hand, some
high-quality materials can cost up to $20 per square foot. You also need to pay the workers
which will cost you 10 to 18 USD per hour. Other costs include insurance premiums, advertising
costs, marketing costs, and shop utilities.
What is Your Target Market?
One of the important topics to discuss is your target market. You need clients that can provide
you consistent work. One of the best clients you can have in this business is housing
development companies. These companies build new houses and always need flooring companies
to install flooring in their newly-built houses. Apartment management teams can also provide
you consistent work. They are a great way to build your network, because such clients are
always in contact with other management teams. Individuals who want to install or redo the
flooring in their home can also be your clients.
How You Can Make Money?
Well, the flooring business makes money by installing carpet, tile floor, and hardwood. There are
other types too that can be profitable and one of the large profits comes from these types. You
can also repair, stain and trim the already installed floors. However, these maintenance services
are very limited.
How Much You Can Charge?
It is an important question. Well, a simple wood flooring can cost $4000. Carpet installation
costs $1600 and Laminate flooring installation costs around $2000. One of the cheap flooring
options is linoleum and Vinyl which costs about $1500. However, the exact cost depends on the
area.
Profit You Can Make
Do you know that the annual profit of the floor installation industry is $23 billion? The top
companies in this business earn only five percent. Medium-sized companies earn about $230,000
per year. These numbers are enough to explain how profitable this industry can be for you.
How You Can Earn More?
There are always opportunities where you can boost your revenues. You can offer speedy
services at no cost. If you can provide fast services, it can be really helpful. Another thing is to
satisfy your customers. Try to reduce cleaning expenses and these clients will refer more clients.
Form A Legal Entity
You need to form a legal entity for your business such as an LLC. So, if someone sues your
business, you are not personally liable. Other business structures involve LLC’s DBA’s and
Corporations.
Register for Taxes
As a business, you need to pay taxes to the federal and state. It should be done before starting the
business. All you need is to register for EIN which is free and easy.
Business Bank Account and Credit Card
The next step is to open a dedicated business account for your business to protect your assets.
You must not mix your personal and business accounts because in this case, your assets are at
risk in case your business is sued.
A business bank account separates your assets from the company’s which is necessary for
protecting your assets. Moreover, it makes easier for you to maintain the company accounts and
file tax returns.
Business Accounting and Licenses
Keep a record of your income and expenses is a must to understand the financial performance of
any business. Moreover, accounts make it easier to file income tax returns.
Moreover, you need to acquire the necessary licenses and permits to prevent any fines. Without a proper license, the government can shut your business.
Service Agreement
Before starting any project, the client should sign a business agreement. This agreement should
explain all the things that can minimize the risk of legal disputes. Also, make sure that both of
you agreed on the payment terms and conditions.
Certificates of Occupancy
As a flooring company, you need to work out on a physical location. In this scenario, your
company needs a certificate of occupancy to confirm that you are following all the government
rules and regulations. The customer needs to obtain a CO for you. Moreover, make sure the
customer can obtain a CO before leasing.
Commercial Property Insurance
Commercial property insurance helps in protecting your business from surprises like theft, fires,
natural disasters. Because these kinds of surprises can affect the buildings. Moreover, you can
get business interruption coverage. It will cover your lost income in case your business closed
after a claim. Moreover, in the case of fire damage, the business interruption will help you.
Business Insurance
Every business should have insurance as it is recommended by most business owners. In
many states, the worker’s compensation insurance is the legal requirement. Moreover, the
insurance will help save your business in case of any disaster.
