Cleaning Certificate Basics: 45+ Cleaning Business Certifications
October 18, 2022
How would you like to start a business off with lots of high quality recommendations? When you get a cleaning certificate, you’re doing exactly that—and you build a good rapport for your business early.
A cleaning certificate is a great way to show customers that you are a professional cleaning company. They also give you access to marketing tools and other benefits that will help your cleaning company. In addition, they provide links to your website from industry experts. You can’t beat that!
We’ll discuss the benefits of cleaning certificates, the process of getting a cleaning certificate, and the different organizations that offer cleaning certificates. We’ll share more than 45 cleaning certifications that you can choose to develop skills and increase your brand value.
Should I Get a Cleaning Certificate?
If you are in the cleaning industry or thinking about starting a cleaning business, you might want to become a certified cleaner. Completing a course and test can help you because:
- You’ll save money by reducing the amount of wasted and damaged supplies.
- Proper safety training will reduce on-the-job injuries.
- You’ll learn more efficient ways to clean.
- Each certification communicates that you adhere to industry best practices.
- Most certifications come with brand assets you can use in marketing.
- As a member of the certifying organization, you will receive a high-quality backlink to your website. Most top-performing cleaning companies have hundreds or thousands of backlinks. The ones you can get fairly easily are worth getting.
- People pay more for better quality.
All of these combine to give you a competitive advantage. You’ll be able to use your industry knowledge, safety training, and marketing tools in a way that you can compete even if you do not offer the most affordable price.
Next, let’s look at the process of choosing a certification.
How to Get Cleaning Certifications
Cleaning industry organizations expect you to complete specific steps before receiving a cleaning certificate. The certification process follows these steps:
- Compare cleaning certifications to verify you meet the requirements.
- Become a member of the industry group.
- Take certification course(s) or independently study for the certification exam.
- Take the certification exam.
- Become a certified cleaning professional.
- Take continuing education courses to maintain your certification.
There will be some differences in how each company handles these steps. We’ll look at each step, so you know what to consider.
Compare cleaning industry certifications
You’ll want to compare cleaning certifications based on the following factors:
- What is the reputation of the organization?
- Is the certificate and training relevant to your cleaning business?
- How much experience or education does the certificate require?
- Does the certification require you to take a specific cleaning certification class or can you study independently?
- Will the course be a specific length or at your own pace?
- Is the exam timed or at your own pace?
- What is a passing score? Most exams are 70%, but some are as high as 85%, while others are compared to other test takers.
- Can you get the cleaning certification online or do you have to take a proctored exam?
- Do you have to be a member to take the exam? Is there a discount for joining?
We’ll answer most of these questions when discussing the best cleaning certification programs. Next, we’ll discuss becoming a member of the industry group.
Should I join cleaning organizations?
Yes. They can be highly beneficial. Most of them are fairly inexpensive for the basic membership version, and you get benefits like:
- Discounts on software for your cleaning business
- A publicly viewable member profile
- Free online cleaning courses with continuing education credits
- Discounts on certification exams
- Updates on workplace safety and government regulations
- Discounts to annual conferences and in-person housekeeper training
- Free branding materials
- A high-quality backlink to your cleaning business
Most memberships pay for themselves. I strongly suggest you consider investing in them to fast-track your business.
Study for the cleaning exam
Most of the tests will not be so easy that you can pass them without studying. They will either have online classes, in-person classes, or suggested study materials. I suggest you use them. A combination of online and suggested reading normally works best for the cleaning certifications you might pursue.
Some courses like the Occupational Safety and Health Administration Specialist Certificate Program require 68 total course hours. At the same time, other certifications do not have a time requirement before you take the certification test.
Next, it’s time to take the cleaning test.
Take the certification test
To get a certificate in cleaning you will always have to pass a test. The tests are normally timed, multiple-choice, and require a score of 70+ to pass. Depending on whether the cleaning classes and the exam are packed together, you may be able to take the exam at home or in the same classroom where you took the classes. You’ll need to schedule the cleaning test and pay the certification testing fee if they are not packaged together.
Now you are certified
Assuming you passed the cleaning business certification test, you will receive your certificate. The company will either provide an online certificate or mail the cleaner certificate to you. There’s one more thing, though.
Continuing education credits
Some certifications will require you to submit proof of completion of cleaning certificate courses each year to remain certified cleaners. This is where the memberships pay for themselves. Each course is normally $50+, while memberships usually cost less than the total of all the continuing education.
Organizations Offering Cleaning Certifications
Cleaning services can cover a broad spectrum of skills. What certifications you’ll want or need will vary based on your own cleaning business. The primary organizations that offer certifications for cleaners are:
- International Janitorial Cleaning Services Association (IJCSA)
- Occupational Safety & Health Administration (OSHA)
- International Sanitary Supply Association (ISSA)
- Institute of Inspection, Cleaning, and Restoration Certification (IICRC)
Free Cleaning Certificate Courses Online from IJCSA
If you are looking for a janitorial certification, consider becoming a certified janitor through the IJCSA. It’s one of the least expensive ways to get a commercial cleaning certification. In fact, you can get all 12 certification course offerings for the cost of the membership. That’s less than $20 per certification course.
The IJCSA requires a membership which you can get for around $250. If you are a cleaning business owner, I would suggest taking this approach to get the Master Certification for yourself and your management staff. Then have employees take the ones they specifically need including:
- Customer Service Certification: Softskills are critical to business success. Learn about customer-focused business practices.
- Chemical Hazards Certification: Learn how to read MSDS sheets.
- Bloodborne Pathogen Certification: This one is required for all businesses and employees before they start.
- Residential Cleaning Specialist: Focus on industry best practices for homes.
- Green Cleaning Certification: Learn how to actually comply with green cleaning requirements.
This is the closest you’ll get to free janitorial certification or free cleaning certification from a reputable training company.
| Certification | Study Time | Pace | Test Format | Test Time | Pre-reqs | Cost | Renewal Period | Notes |
| IJCSA Business Membership | N/A | N/A | N/A | N/A | N/A | Approximately $250 Per Year | Annually | Prereq to take certifications |
| IJCSA Master Certification (IMC) | 20 | 250 Questions including 110 essay plus oral questions | 4 | Must pass all other certifications first | Free with IJCSA Membership | Requires all other certifications | ||
| IJCSA Residential Cleaning Specialist (RCS) | 26 | Work at own pace | online | 4 | (CSC), (CHC), (BPC) | Free with IJCSA Membership | 3 years | Overview of house cleaning industry. It requires the customer service, bloodborne pathogens, and chemical hazards certifications |
| Carpet Cleaning Certification (CCC) | 10 | Work at own pace | online | 2 | Free with IJCSA Membership | |||
| Bloodborne Certification (BPC) | 1 | Required by Law Before Working | Online | 1 | Required by Law Before Working | Free with IJCSA Membership | 1 year | |
| IJCSA Janitorial Custodial Certification (JCC) | 10 | self paced | Online | 1 | Free with IJCSA Membership | |||
| Medical Cleaning Certification (MCC) | 40 | self paced | Online | 3 | Free with IJCSA Membership | |||
| Biohazard Cleaning Certification (BCC) | 40 | self paced | Online | 4 | Free with IJCSA Membership | If you want to clean crime scenes, this is the certification for you! Includes OSHA Hazwopper certification. | ||
| Mold Inspection & Remediation Services (MIRS) | 80 | Set time of 40 hours, but self paced. | Online | 2 | Free with IJCSA Membership | Able to legally perform mold remediation | ||
| Green Cleaning Certification (GCC) | 4 | self paced | Online | 1 | Free with IJCSA Membership | Adheres to ISO 9001, ISO 14001 and ISO 31000. May qualify to work on buildings with HACCP Standards Certification, ISO Certification, LEED Certification, and CFGS Certification. | ||
| Green Cleaning Masters Certification (GCMC) | 15 | self paced | 150 questions, 75 are essay questions | 3 | GCC, CHC | Free with IJCSA Membership | Tests for greater comprehension of green cleaning | |
| Chemical Hazards Certification (CHC) | 4 | self paced | 1 | Free with IJCSA Membership | Master the mechanics of MSDS sheet. | |||
| Customer Service Certification (CSC) | 1 | self paced | online | 0.5 | Free with IJCSA Membership | Freshen up your soft skills. Every cleaning company should require employees to go through customer service training at least once a year. | ||
| Complete All Courses | 231 | 26.5 | Free with IJCSA Membership | Effectively the same as one semester at full-time college. Allows you to work on most cleaning projects. |
Occupational Safety & Health Administration Certification
Occupational Safety & Health Administration (OSHA) offers three safety and health fundamental certifications that professional cleaners may need each employee to complete. The three certifications are for the :
- General industry: Good for working on commercial properties that require OSHA training.
- Construction industry: Needed if you’ll be doing construction cleanup on major construction sites.
- Maritime industry: Good for cleaning companies that will be cleaning or power washing boats.
If you aren’t working on large commercial properties, you might not be required to have these. It doesn’t hurt to have them, though. Let’s look at each.
General Industry Safety & Health Fundamentals Certificate Program
The Safety & Health Fundamentals for General Industry requires at least 68 hours across seven courses including:
- 39 hours in the following courses:
- OSHA #511: Occupational Safety & Health Standards for the General Industry (26 hours)
- OSHA #7500: Introduction to Safety & Health Management (5.5 hours)
- OSHA #7505: Introduction to Incident (Accident) Investigation (7.5 hours)
- Minimum of 29 elective hours across four of the courses listed on the general industry certificate webpage. Some that make sense for cleaning industries include:
- OSHA #7845: Recordkeeping Rule Seminar (4 hours)
- OSHA #7205: Health Hazard Awareness (6 hours)
- OSHA #7210: Pandemic Illness Preparedness (5.5 hours)
- OSHA #2255: Principles of Ergonomics (18 hours)
- OSHA #7215: Silica in Construction, Maritime, and General Industries (7 hours) Good if taking either of the other OSHA certificates.
Find courses that work for you on the Occupational Training Institute searchable course schedule.
Maritime Safety & Health Fundamentals Certificate Program
If you clean boats or other facilities on the water, you should consider taking the Safety & Health Fundamentals for Maritime certification. It requires a minimum of 77 hours including:
- 48 hours in the following courses:
- OSHA #5410: Occupational Safety & Health Standards for the Maritime Industry (35 hours)
- OSHA #7500: Introduction to Safety & Health Management (5.5 hours)
- OSHA #7505: Introduction to Incident (Accident) Investigation (7.5 hours)
- Minimum of 29 elective hours across four of the courses listed on the maritime industry certificate webpage. Some that make sense for maritime cleaning companies include:
- OSHA #3115: Fall Protection (18 hours). Working on the water creates challenges most cleaning companies don’t encounter.
- OSHA #7215: Silica in Construction, Maritime, and General Industries (7 hours). If you didn’t take this with the general industry certification, you probably should take it now.
- OSHA #7100: Introduction to Machinery and Machine Safeguarding (4 hours). Workers will probably be working around unique equipment. They should learn equipment safety.
- OSHA #7115: Lockout and Tagout (7.5 hours). Anyone working around electrical equipment should understand lockout and tagout. It protects against electrocution deaths.
Construction Safety & Health Fundamentals Certificate Program
Construction cleanup companies should consider getting the Safety & Health Fundamentals for Construction certification. It requires a minimum of 68 hours of training including:
- 39 hours in the following courses:
- OSHA #510: Occupational Safety & Health Standards for the Construction Industry (26 hours)
- OSHA #7500: Introduction to Safety & Health Management (5.5 hours)
- OSHA #7505: Introduction to Incident (Accident) Investigation (7.5 hours)
- Minimum of 29 elective hours across four of the courses listed on the general industry certificate webpage. Some that make sense for cleaning industries include:
- OSHA #7845: Recordkeeping Rule Seminar (4 hours)
- OSHA #7205: Health Hazard Awareness (6 hours)
- OSHA #3085: Principles of Scaffolding (22 hours). You’ll probably have to get on scaffolds to reach places that can’t be reached by a ladder.
- OSHA #7400: Occupational Noise Exposure (7.5 hours). Construction sites can damage the hearing. Make sure to understand how to protect yourself.
You should be able to get an OSHA cleaning certification online. Unless you are doing construction and maritime cleaning, I would not expect you to need more than one of these OSHA certifications. However, check with each property owner to establish their requirements for subcontractors.
International Sanitary Supply Association
The ISSA has more than 10,500 members grouped into the following categories:
- Associated service members
- Building service contractors
- In-house service providers
- Distributors
- Manufacturers
- Manufacturer representatives
- Residential cleaners
You can get ISSA cleaning certifications and ISSA accreditation for your business through their subsidiaries:
- Cleaning Industry Management Standard (CIMS)
- Cleaning Management Institute (CMI)
- Association of Residential Cleaning Services International (ARCSI)
Commercial Cleaning Business Certificates from CIMS
CIMS is a management standard for how to operate a cleaning business. They have two levels of certifications for a cleaning business:
- CIMS Certification: This cleaning business certification focuses on operations for building service contractors, in-house service providers, and facility managers.
- CIMS Green Building Certification: This cleaning business certification focuses on operations for facility managers, in-house service providers, and building service contractors that will be working on U.S. Green Building Council LEED Projects.
Both cleaning certifications require cleaning services to:
- Submit an application and a $500 (approximately) non-refundable fee.
- Create processes for the cleaning business that include written standards and proof of application for:
- Quality Control
- Service
- Human Resources
- Health, Safety, and Environmental Stewardship
- Management Commitment
- Equipment, Supplies, and Tool Policies
- Approve the assigned auditor for their cleaning services.
- Paying additional fees including:
- $995 (estimated) certification fee for ISSA members or $1,695 (estimated) for non-members
- Assessment fees based on complexity of the commercial cleaning business
- Expenses for the cleaning business auditor.
- Allow a CIMS Certification Expert to evaluate their business in person.
After this process is complete, you will be certified assuming you meet the standards, which you can find here. I would recommend taking the green building certification when you decide to pursue these cleaning certificates because there is no point in paying for the audits twice.
Cleaning Management Institute (CMI)
The Cleaning Management Institute offers numerous certifications for cleaning companies to prove their knowledge, but the most popular cleaning certification program is the Certified Custodial Technician. This certificate program has three levels of certification for the industry today. Here is an outline of the program:
- Basic version: Pay course fee (about $315), take the course, and score 80% or better on the exam. Learn more about the janitor certification.
- Advanced Clean Certification: Pass the basics course, pay another $315 (estimated), take a course on advanced techniques, and score 80% or higher to pass the CPI Custodial Advanced certification.
- CMI Custodial Expert: This 20 hour in-person ISSA cleaning certification requires completing the basic and advanced cleaning certificate online before you can participate in the program and become a certified janitorial expert. Find locations to take the cleaning course and advance your career.
You can also check out the free materials included in ISSA CMI Cleaning Professional 101.
How to Become a Certified House Cleaner with ARCSI Cleaning Business Certifications
ARCSI is the residential cleaning arm of the ISSA and offers two cleaning certifications:
- ARCSI Professional House Cleaning certification (PHC): An eight-hour online certificate that covers the knowledge you need to clean homes. You can get a single online certificate or unlimited certifications for growing businesses. Take the PHC course on ISSA Learning Portal. Get more details about the residential cleaning certification.
- IICRC/ARCSI House Cleaning Technician Certification (HCT): The house cleaning technician training & certification is actually an IICRC certification, but the only available courses are from ARCSI. It claims to be both online and in-person, but the online course is not available at the time of writing. (The online certification course will become available in 2023). The course is $275 for IICRC and ARCSI members or $575 for non-members. There is also an $80 exam fee. Additional certifications are only $200 regardless of your member status.
- If you only get one exam, this would be a good one to choose because you’ll be listed on two major players’ websites if you become a member of each.
Institute of Inspection, Cleaning, and Restoration Certification (IICRC)
The IICRC mostly focuses on certifying inspection, cleaning, and restoring floors, carpet cleaning jobs, and other surfaces. They offer a house cleaning technician certification, which we discussed earlier, but some of their most noteworthy certificate of cleaning programs include the Master Designations. There are three master tracks including:
- Master Textile Cleaner (MTC)
- Master Fire and Smoke Restorer (MSR)
- Master Water Restorer (MWR)
Each of these programs shows an in-depth understanding of the techniques used for specialty cleaning jobs. They are sure to advance your career and help you make more money by offering better services and techniques than other successful cleaning businesses. Let’s look at how to become a master textile cleaner first.
How to become a Master Textile Cleaner
To become an IICRC Master Textile Cleaner requires five certifications plus three years as a certified cleaner. The IICRC requires the following five steps to achieve the Master Textile Cleaner (MTC) designation:
- Pass three certification tests:
- Carpet Cleaning Technician (CCT) or Commercial Carpet Maintenance Technician (CCMT): The CCT is focused on application of cleaning skills for carpeted floors and other surfaces, while the CCMT is focused on the management of floor cleaning.
- Upholstery and Fabric Cleaning Technician (UFT): This certification is focused on understanding fabric and cleaning challenges related to different methods and chemicals.
- Odor Control Technician (OCT), Carpet Repair and Reinstallation Technician (RRT), or Color Repair Technician (CRT): Choose one of the three. The OCT is also required for the MSR, while the RRT is required for the MWR. If you live in an area prone to floods, you might want to do the RRT first.
- After 12 months of IICRC certification, you obtain Journeyman Textile Cleaner (JTC) status.
- Complete the other two certifications from Step 1c.
- Complete three years of IICRC Certification.
- Become a Master Textile Cleaner (MTC).
Each certification runs about $80, so it will cost approximately $400 plus annual renewal fees and continuing education credit costs.
How to become a Master Water Restorer
To become an IICRC Master Water Restorer requires five certifications plus three years as a certified cleaner. The IICRC requires the following five steps to achieve the Master Fire and Smoke Restorer (MSR) designation:
- Pass three certification tests:
- Carpet Cleaning Technician (CCT) or Commercial Carpet Maintenance Technician (CCMT): The CCT is focused on the application of cleaning skills for carpeted floors and other surfaces, while the CCMT is focused on the management of floor cleaning.
- Water Damage Restoration Technician (WRT): The WRT focuses on understanding the processes to repair property after water damage.
- Carpet Repair and Reinstallation Technician (RRT): The RRT teaches you how to remove and reattach carpet using industry best practices.
- After 12 months of IICRC certification, you obtain Journeyman Water Restorer (JWR) status.
- Complete the following certifications:
- Health and Safety Technician (HST): The HST is focused on hazard risk assessment and prevention while operating your own cleaning business.
- Applied Microbial Remediation Technician (AMRT): The AMRT is focused on the mold and sewage remediation techniques and how to perform them while preventing potential health risks.
- Applied Structural Drying Technician (ASD): The ASD focuses on the techniques for cleaning and drying customers’ property after water damage. Also focuses on proper health safety for your workers while cleaning the client’s home or office.
- Complete three years of IICRC Certification.
- Become a Master Water Restorer (MWR).
Each certification runs about $80, so it will cost approximately $400 plus annual renewal fees and continuing education credit costs.
How to become a Master Fire and Smoke Restorer
To become an IICRC Master Fire and Smoke Restorer requires five certifications plus three years as a certified cleaner. The IICRC requires the following five steps to achieve the Master Fire and Smoke Restorer (MSR) designation:
- Pass three certification tests:
- Fire and Smoke Damage Restoration Technician (FSRT): The FSRT is focused on scoping, mitigating, cleaning, and documenting residential and commercial fire cleanup.
- Upholstery and Fabric Cleaning Technician (UFT): This certification is focused on understanding fabric and cleaning challenges related to different methods and chemicals.
- Odor Control Technician (OCT): The OCT teaches you to remove odors from mold, smoke, chemicals, and urine.
- After 12 months of IICRC certification you obtain Journeyman Fire and Smoke Restorer (JSR) status.
- Complete the following certifications:
- Health and Safety Technician (HST): The HST is focused on hazard risk assessment and prevention while operating your own cleaning business.
- Carpet Cleaning Technician (CCT) or Commercial Carpet Maintenance Technician (CCMT): The CCT is focused on application of cleaning skills for carpeted floors and other surfaces, while the CCMT is focused on the management of floor cleaning.
- Complete three years of IICRC Certification.
- Become a Master Fire and Smoke Restorer (MSR).
Each certification runs about $80, so it will cost approximately $400 plus annual renewal fees and continuing education credit costs.
Building Service Contractors Association International (BSCAI)
The BSCAI creates four courses that help people prove their knowledge of the cleaning, safety, and management of buildings. If you perform work for government agencies or large business complexes, you might benefit from these certifications. The two most commonly recommended are:
- Registered Building Service Manager (RBSM): At about $275, this course is a great way to familiarize yourself with OSHA safety, employee management, floor care, and more.
- Certified Building Service Executive (CBSE): With a cost of about $50, this course is a good one to help build a more successful cleaning business. It includes business law, industry considerations, inventory, employee management, quality control, taxes, and more.
Sanitation Cleaning Certification
If you specifically need sanitation certification, consider the following courses and certificates:
- IJCSA Medical Cleaning Certification: Covers bloodborne pathogens, chemical hazards, covid, PPE and more as it relates to cleaning companies. Learn more.
- Certified Health Care Environmental Services Professional (CHESP): The Association for the Health Care Environment offers this certification.
Specialized Cleaning Certification Organizations
- Portable Sanitation Association International (PSAI): Certifications for sanitizing porta potties.
- North American Power Sweeping Association (NAPSA): Certifications for street cleaning.
- Pool and Hottub Alliance (PHTA): Pool cleaning certifications
- National Association of Sewer Service Companies (NASSCO): Certifications for sewage and pipeline cleaning.
- United Association of Mobile Contract Cleaners (UAMCC): Power washing certifications
Which Certification Will Help Your Own Cleaning Business?
The goal of this blog is to provide you with as many cleaning certification options as possible. Each cleaning business will need to consider how each certification fits within your own business. What cleaning certifications would help your business most?
Author
Brandon Boushy
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John Lee Dumas started Entrepreneurs on Fire (EOF) in 2012, and today it has more than 142 million listeners and nearly 4K episodes. Kate Ericson joined the team 6 months in to build the systems and audience. Today the podcasting company makes around $1.8 million per year.
[su_note note_color="#dbeafc"]
We talked with Kate about what she learned in launching EOF to its current success. We’ll share Kate’s tips for starting a podcast as we walk you through the process, which includes:
Podcasters have multiple streams of revenue you should consider. Kate provided us with EOF’s revenue streams and what percentage of revenue each drive.
Some of the most popular ways to make money from a podcast include:
The cost of starting a podcast is impacted by both startup costs and ongoing costs.
You’re here to learn how to start a podcast and get paid, so here’s the information you really need to get started. We’ve boiled the process down into 11 action steps:
The first thing you need to do is define your goals. You might include information like this:
Now that you've got an idea of what topic to hone in on, you're ready to give your podcast a name.
The name of a podcast is crucial to attracting attention, describing the episodes, and creating a brand.
Some websites, including Apple Podcasts, use the title for search, so make sure you think it through well. Then check to see if the name is available on social media and as a domain. Learn more about naming a podcast.
The length of your podcast will impact how difficult it is to record each episode and potentially your podcast hosting costs. If a podcast host site charges by file size, you may want to aim for shorter podcasts.
According to Buzzsprout, the length of a podcast is normally under 60 minutes, with 20 to 40 minutes being the most popular length, followed by 40 to 60 minutes.
Next, you’ll want to think about how to create the podcast branding. Your branding will include everything you do to communicate what your new podcast is about. Your branding will include things like these:
Next, you’ll need to get the podcast equipment you’ll use for podcast recording. We’ll discuss the information you need for both in-house and remote recording. This includes:
There are two main connectors for recording equipment. Your podcast setup can either be connected to your computer with an XLR or USB. People who are looking to start podcasting for beginners will probably want to use USB mics because they don’t require a mixer.
Meanwhile, XLR connectors are used by professional recording companies, musicians, and other people who want more control over their audio recordings.
You might also want to consider the following equipment when you make a podcast:
Podcast platforms offer numerous features that are beneficial to creating a podcast. Kate told us that EOF uses Libsyn for their podcast hosting needs. Here’s why:
[su_quote]Libsyn focuses on podcasters. They focus on educating podcasters and providing good support.[/su_quote]
Depending on your needs, there are plenty of other podcast hosting sites including:
Libsyn offers six pricing plans ranging from $5 to $150 per month. Whether you offer audio files or video podcasts, the pricing is the same because they price their packages based on how many MB you upload each month.
Most podcasts will go with the $20 plan because it has some advanced features, including remote podcast editing that the lower plans don’t have. Other than that, the main differences between plans are the file length and storage size allowed each month. Other benefits include:
Buzzsprout.com is the largest and most famous site. If you’re wondering how to start a podcast for free, you’ll want a Buzzsprout podcast. The free Buzzsprout plan allows 2 hours of podcast a month, which is perfect for getting started. The catch is there are limited features and the podcasts only stay available for 90 days.
You can move to the upper Buzzsprout price tiers to get all the additional Buzzsprout podcast features for as low as $12 for better features. Buzzsprout pricing is solely based on the length of uploads and encompasses these advantages:
Costs can add up quickly if you have to pay podcast guests to fly all over the world to talk to you, so most successful podcasts interview people remotely. It’s better to use long-distance recording software to talk from wherever people are located.
In addition to many of the hosting tools offering remote recording software, you might want to try these:
EOFire uses Adobe Audition, part of the Adobe Creative Cloud, but you can also use editing tools like:
You might also want to consider these tools:
Next, you’ll want to go into your editing tool and do the following tasks.
Now it’s time to upload your audio files to your podcast host platform. Perform the following steps to add a podcast.
Follow these steps to start an Apple podcast:
Go to Spotify for Podcasters (Formerly Anchor Podcast) and sign up for an account. For those wondering how much to start a podcast on Spotify, I've got good news—It’s free!
Let’s continue with how to start a spotify podcast. You have the option of creating a new podcast or moving your podcast.
For those wondering how to start a podcast with no audience, you’ll want to consider the following advice:
Starting a video podcast is similar to starting a YouTube channel. Here’s the process:
- What Is A Podcast And How Does It Work?
- How Much Does It Cost to Start a Podcast?
- How To Start A Successful Podcast
- Step 1. Plan Your Podcast
- Step 2. Decide on Your Podcast Format
- Step 3. Create a Podcast Brand
- Step 4. Get Your Recording Equipment
- Step 5. Select Audio Recording Software
- Start 6. Start Recording Podcast Episodes
- Step 7. Edit The Podcast Episode
- Step 8. Create Podcast Artwork
- Step 9. Add Podcast to Buzzsprout
- Step 10. Apply for Other Podcast Channels
- Step 11. How To Promote A Podcast
- Podcast FAQ
What Is A Podcast And How Does It Work?
Podcasts are pre-recorded talk shows that people can download to computers and mobile devices. To create a podcast, you record your conversation and save it as a digital audio file on a podcast hosting service. The hosting service stores all your files on an RSS feed that can then be shared with your audience. Some of the most popular podcast hosting platforms are:- Buzzsprout
- Podbean
- Podcast Websites
- Simplecast
- Spreaker
- Apple Podcasts
- Google Podcasts
- Spotify
- Samsung Podcasts
- Stitcher
- TuneIn
- Find a huge list of podcast directories
Can You Make Money With A Podcast?
Yes, you can make money from a podcast—but first, you’ll need to develop a following. When you try to monetize too quickly, you risk alienating listeners and harming your overall success. Kate warned: [su_quote]You don’t grow an audience quickly. Podcasting is a long game. Don’t think about monetization. Think about creating meaningful content, listen to what people ask, and provide what they want. If it doesn’t work, reiterate your offerings.[/su_quote] Listen to our interview with Kate below.How Do Podcasts Make Money?
Podcasters have multiple streams of revenue you should consider. Kate provided us with EOF’s revenue streams and what percentage of revenue each drive.
Some of the most popular ways to make money from a podcast include:
∙ Sponsorship: 70%
∙ Affiliate Revenue: 13%
∙ Online Courses: 13%
∙ Physical Products: 4%
Check out the EOFire website to see the products they offer.
How To Make Money From Podcast
To make money from a podcast, you’ll need to:- Release podcast episodes
- Develop a following
- Create offerings to sell your audience
- Set up a payment system
- Add a call to action to your podcasts
How Much Does It Cost To Start A Podcast?
The cost of starting a podcast is impacted by both startup costs and ongoing costs.
Podcast Startup Costs
You’ll need to spend money on the following equipment when you start a podcast:∙ Computer: $0-$3,000
∙ Microphone: $30-$400
∙ Headphones: $30-$400
∙ Mixer/Audio Interface: $50-$600
∙ Recording Software: $0-$200
If you already have some of the equipment, you may be able to get started for as little as $100. If you want to go for a professional setup right away, you may need as much $5,000 for equipment, plus another $1,500 or so to start an LLC, get business licenses, and advertise.
Check out Revive's podcast equipment breakdown for entry-level, mid-grade, and professional equipment suggestions.
Ongoing Podcasting Costs
In addition to the startup costs, you’ll have consistent ongoing costs.∙ Podcast hosting: $0-$100 monthly
∙ Music: $0-$50 monthly
∙ Transcription services: $0-$100 monthly
∙ Artwork : $0-$1,000 monthly (Time and quality impact the costs)
∙ Marketing: $0-$30 per 1,000 impressions on social media
How to Start a Podcast With No Money
You can start a free podcast by recording audio on your phone and uploading it to a podcast hosting service. This strategy will get you started for free because most software offers a free trial period. The quality of the audio recording might not be great, but most entrepreneurs agree that the best tactic is to just get started, then upgrade as you can. Next, we’ll show you how to start a podcast business.How To Start A Successful Podcast
You’re here to learn how to start a podcast and get paid, so here’s the information you really need to get started. We’ve boiled the process down into 11 action steps:
- Plan Your Podcast
- Decide on Your Podcast Format
- Create a Podcast Brand
- Get Your Recording Equipment
- Select Audio Recording Software
- Start Recording Podcast Episodes
- Edit The Podcast Episode
- Create Podcast Artwork
- Add Podcast to Buzzsprout
- Apply for Other Podcast Channels
- How To Promote A Podcast
Step 1. Plan Your Podcast
Before you jump in, make sure to create a plan for your podcasting company. You’ll want to:- Describe your goals
- Pick a theme
- Narrow your niche
- Choose a podcast name
Describe Your Goals
The first thing you need to do is define your goals. You might include information like this:
- The message you want to convey
- How you’ll convert listeners to leads
- Whether you're trying to become an industry leader
- How you’ll monetize the podcast
Pick a Podcast Theme or Topic
You’ll need to choose a topic for your podcast. There are common themes that do well, but you can create a podcast about any subject matter and potentially find podcast listeners. Some of the most common podcast subject matters include:- Crime podcasts
- Business podcasts
- Comedy podcasts
- Fictional podcasts
- News podcasts
Narrow Your Niche
If your niche is too broad, your podcast audience might not be as engaged. If it’s too narrow, you may have trouble creating enough episodes on the podcast topic. Still, a more niche topic is more likely to stand out in a competitive field. As a podcast maker, you might find this practice of narrowing subjects a good way to define your own podcast focus. Here are some examples:| Broader Topic | Narrowed |
| Business | How to Start A Vending Machine Business |
| AI | AI Art |
| Eating Healthy | Healthy Eating for Cardiac Patients |
| Human Resources | Hiring Employees |
| True Crime | Female Murderers |
Choose a Podcast Name
The name of a podcast is crucial to attracting attention, describing the episodes, and creating a brand.
Some websites, including Apple Podcasts, use the title for search, so make sure you think it through well. Then check to see if the name is available on social media and as a domain. Learn more about naming a podcast.
Step 2. Decide on Your Podcast Format
Podcast formats consist of three parts:- The structure
- The length of each episode
- The frequency of posting
Podcast Structure
Different types of podcasts work well for different types of topics. Ultimately you want to structure your podcast in a way that helps people know what to expect and that you find manageable. For instance, you wouldn’t want to record the reading of a book in the same way you’d record an interview. The number of people involved in production and the podcast format will also impact editing and other aspects of the podcast. Consider trying some of these formats:- Interviews
- News commentary
- Cohosted podcasts
- Scripted readings of fiction or nonfiction
- Educational podcasts
Length of Podcasts
The length of your podcast will impact how difficult it is to record each episode and potentially your podcast hosting costs. If a podcast host site charges by file size, you may want to aim for shorter podcasts.
According to Buzzsprout, the length of a podcast is normally under 60 minutes, with 20 to 40 minutes being the most popular length, followed by 40 to 60 minutes.
Frequency of New Episodes
Most publishers suggest posting a new episode on the same day each week. Over a third of podcasts release new episodes weekly, but most currently post a new episode every 8 to 14 days. Here’s the breakdown of how frequently podcasts post based on Buzzsprout statistics:∙ 8-14 days (39%)
∙ 3-7 days (36%)
∙ 15-29 days (17%)
∙ 0-2 days (7%)
∙ Over 30 days (1%)
Step 3. Create a Podcast Brand
Next, you’ll want to think about how to create the podcast branding. Your branding will include everything you do to communicate what your new podcast is about. Your branding will include things like these:
- Podcast logo
- Podcast slogan
- Format of intros
- Podcast music
- Podcast title
- Episode description
- Podcast description
- Podcast cover art
- Quality of sound recordings
- Podcast host
- Language you use
Choose a Podcast Host
You can be the podcast host if you want, or you can hire a host, cohosts, or voice actors to record audio. The options are endless, but a podcast hosted by multiple people may experience times when they have difficulty scheduling time for podcast recording.Step 4. What Do I Need To Start A Podcast?
Next, you’ll need to get the podcast equipment you’ll use for podcast recording. We’ll discuss the information you need for both in-house and remote recording. This includes:
- Podcast Microphones
- Headphones
- Mixers
Podcast Microphone
An external audio recording device is the most critical piece of podcasting equipment you can get. A good podcast mic reduces background noise to improve audio quality and makes editing easier. Some of the best mics, in order of quality, are: Let’s look at the different features podcasters should consider in microphones.Dynamic or condenser
Dynamic microphones will be the go-to mic for podcasting unless you are starting a music podcast. Dynamic mics have less sensitivity and pick up lower sound frequencies, which means you’ll get less background noise and require less editing. Meanwhile, condenser mics are best for recording music with wider ranges of frequencies.USB or XLR
There are two main connectors for recording equipment. Your podcast setup can either be connected to your computer with an XLR or USB. People who are looking to start podcasting for beginners will probably want to use USB mics because they don’t require a mixer.
Meanwhile, XLR connectors are used by professional recording companies, musicians, and other people who want more control over their audio recordings.
Headphones
You’ll want a set of headphones for your podcast setup. If you already have some, you can just use those, but using higher quality closed-back headphones improves your podcast recording by:- Helping you identify the best place to position the mic.
- Reducing the editing time.
- Preventing situations where you have to trash a podcast recording due to poor sound quality.
Don’t Forget A Mixer
Mixers are helpful if you will have multiple audio inputs going into your recording and editing software. You’ll be able to use a mixer for things like:- Controlling each input separately
- Livestreaming plus recording
- Intro music and other sound effects
- XMR mics
Other Equipment for Creating a Podcast
You might also want to consider the following equipment when you make a podcast:
- RODE Boom Arm for Better Mic Placement | $120
- Shock Mount Vibration and Noise Reduction | $35-50
- Foam Ball or Pop Filter Noise Reduction| $6-$10
Step 5. Select Audio Recording Software
You’ll need different kinds of podcast software when deciding how to start a podcast and make money. You’ll probably want the following types of podcasting software:- Podcast Platform
- Remote Recording Software
- Editing Software
Podcast Hosting Sites
Podcast platforms offer numerous features that are beneficial to creating a podcast. Kate told us that EOF uses Libsyn for their podcast hosting needs. Here’s why:
[su_quote]Libsyn focuses on podcasters. They focus on educating podcasters and providing good support.[/su_quote]
Depending on your needs, there are plenty of other podcast hosting sites including:
- Buzzsprout
- Simplecast
- Podbean
Libsyn
Libsyn offers six pricing plans ranging from $5 to $150 per month. Whether you offer audio files or video podcasts, the pricing is the same because they price their packages based on how many MB you upload each month.
Most podcasts will go with the $20 plan because it has some advanced features, including remote podcast editing that the lower plans don’t have. Other than that, the main differences between plans are the file length and storage size allowed each month. Other benefits include:
- Podcast Recording
- Dynamic Podcast Advertising
- Remote Recording
- Canva Cover Art Built-In
Buzzsprout
Buzzsprout.com is the largest and most famous site. If you’re wondering how to start a podcast for free, you’ll want a Buzzsprout podcast. The free Buzzsprout plan allows 2 hours of podcast a month, which is perfect for getting started. The catch is there are limited features and the podcasts only stay available for 90 days.
You can move to the upper Buzzsprout price tiers to get all the additional Buzzsprout podcast features for as low as $12 for better features. Buzzsprout pricing is solely based on the length of uploads and encompasses these advantages:
- Podcast Listed on 12 Directories
- 90-Day Free Trial
- Magic Mastering
- Payment Processing
- Buzzsprout Ads
- Transcription
- API for Integrating Other Tools
Simplecast
Simplecast is the most tech-savvy of the podcast hosting sites, but it has limits on the number of downloads in each plan. These plans have different features based on how much you pay. Take a look at their website because it’s challenging to cover all the info in just a few bullet points, but I would say this provider is best for people who want for their audience to easily share podcast sound clips.Podbean
Like with other hosting sites, you can start a podcast for free for Podbean, but you’ll have to pay for additional features. Podbean free podcast holds five hours of free audio footage, but does not work well for video podcasts and lacks the ability to make money podcasting. The $29 plan is the one you’ll want to go with if you’re looking for a podcast RSS feed you can monetize or provide video with.- Cover Photo Creator
- Monetization
- Live Streaming features
- Instant Alexa Availability
Remote Recording Software
Costs can add up quickly if you have to pay podcast guests to fly all over the world to talk to you, so most successful podcasts interview people remotely. It’s better to use long-distance recording software to talk from wherever people are located.
In addition to many of the hosting tools offering remote recording software, you might want to try these:
- Riverside.fm
- SquadCast
- Zoom
Riverside.fm
This software produces studio-like sound, but is only necessary if you don’t find the remote recordings from your hosting worth using. Benefits include:- Free Trial (but $29/month plan is useful)
- Separate Track for Each Audio Channel
- Continuous Uploading
- AI Transcription
- Editing Software
- Studio-quality recordings
SquadCast.fm
The biggest selling points of this remote recording software is the high-end packages offered by Dolby. Other than that, I can’t tell much of a difference between SquadCast and Riverside. Based on the fact that Kate uses the Libsyn software for recording, I suspect it’s not worth the extra $80 for Dolby surround sound. Learn more about SquadCast.Zoom
You can use Zoom for remote recording, but you’ll need a good internet connection. A business podcast or interview podcast would only want to use this if you are starting a free podcast or it is an interviewee’s first podcast.Editing Software
EOFire uses Adobe Audition, part of the Adobe Creative Cloud, but you can also use editing tools like:
- GarageBand
- Audacity
- Descript
Adobe Audition
Adobe Audition is the podcast editing tool that is part of Adobe creative suite. If you use Adobe products already, you’ll probably find this is the best option. Personally I find Adobe products outdated, but they recommend this software at EOFire.GarageBand
Most Apple PCs have GarageBand, but you can also use it on Android or Windows Computers. Learn how to use Garageband. It’s not as sophisticated as some of the other tools, but it’s free.Audacity
Audacity is less complex than Adobe Audition but more advanced than GarageBand. If you’re using Linux, Windows, or Mac, you can use Audacity. Check out one of the better Audacity tutorials below. [su_youtube url="https://www.youtube.com/watch?v=Ymj4sADYkpU"]Descript
Mac and Windows users can use Descript for all their audio file needs, including recording, editing, mixing, and transcription. It even lets you do text-to-speech editing if something doesn’t sound right or someone gives incorrect information. Just be careful about using this feature to mislead people.Other Podcast Software
You might also want to consider these tools:
- Capsho: AI for Podcasts
- Repurpose.io: Convert podcast audio to YouTube
- Hootsuite: CRM and Social Media Management
- Boomerang for Gmail: Use to keep yourself on track
- Otter.ai: If you don’t have transcription in your hosting or editing software, Otter.Ai works well.
- Magic Mastering: Buzzsprout add-on that optimizes sound for you
- Audio Hijack: Record audio to add into your podcast, such as sound effects
Start 6. Start Recording Podcast Episodes
Now it’s time to start recording podcast episodes. To record your first episode of a podcast, you’ll want to:- Prepare a script.
- Setup your equipment. Don’t forget headphones.
- Setup your software. (The ideal sound level is below -16 Loudness Unit relative to Full Scale (LUFS); anything higher will cause your sound to be reduced on Apple Podcasts).
- Do a test recording to check for mic placement.
- Make sure to have each sound recording on a separate channel.
- Record the podcast and use your notes. As long as it’s not livestreamed, you can correct your mistakes by restarting the sentence or paragraph.
- Save the files and get ready to edit.
Step 7. Edit The Podcast Episode
Next, you’ll want to go into your editing tool and do the following tasks.
- Import audio file into your editing tool.
- Remove any unwanted sounds like “uhm,” mistakes, awkward silences, and background noises.
- Add intro & outro music.
- Fix any volume discrepancies.
- Add the intro and outro.
- Export audio file and upload podcast to an AI editing tool if your primary one doesn’t have auto-balancing and other AI features.
- Save file as an MP3.
Step 8. How To Create Podcast Artwork
Cover art should be consistent across episodes. You can use the cover art creators that are in most podcast hosting platforms. Make sure the file meets all the directories’ specifications. The majority of podcasts are listened to on Spotify, Apple Podcasts, and Google Podcasts. That means as long as you create a png or jpg that is 3000 x 3000 pixels at 72 ppi using sRGB color profile, you should be fine. You’ll want to view your cover art at a size between ¼” to 1” because those are the sizes your listeners will see on mobile devices.Step 9. How To Add Podcast to BuzzSprout
Now it’s time to upload your audio files to your podcast host platform. Perform the following steps to add a podcast.
- Select “Upload New Episode”
- Upload the audio file
- Add the title, description, and cover art
- Select publishing time and date
- Save episode
- Schedule to share it to social media using a tool like repurpose.io
Step 10. Apply for Other Podcast Channels
Most high quality podcast hosting sites add your podcast episodes to other directories. For those wondering how to start a podcast for free and make money, you’ll probably have to register for each directory on your own. We’ll cover:- How to start a podcast on apple for free
- How to start up a podcast on Google
- How to start a podcast on Spotify for free
- How to start a YouTube podcast
How To Start A Podcast On Apple Podcasts
Follow these steps to start an Apple podcast:
- Go to Apple Podcast Connect to start an Apple podcast.
- Add a show either with an RSS feed or without it.
- Name the show. You can use up to 150 characters.
- Do not restrict access unless you have a reason you want a limited audience.
- Add artwork.
- Add a 4,000 character or less description.
- Choose a channel if you run more than one podcast or offer paid content.
- Select the type of series.
- Specify posting frequency.
- Add the Apple content category and subcategory.
- Mark explicit content if you talk about sex, drugs, violence, or have lots of cursing.
- Specify the language your podcast is in.
- Add your website URL.
- Add copyright information.
How To Start A Podcast On Google Podcasts
To start a podcast free on Google Podcasts, you’ll want to go to Google Support and follow the directions. You’ll need to:- Create a public RSS feed.
- Create a homepage that links to the RSS feed.
- Use supported audio file types. No video files are allowed.
- Use consistent Https or Http.
- Add an art file, title, description, owner email, and homepage URL.
- Set up a Google Search Console and request indexing.
How To Start A Podcast For Free On Spotify
Go to Spotify for Podcasters (Formerly Anchor Podcast) and sign up for an account. For those wondering how much to start a podcast on Spotify, I've got good news—It’s free!
Let’s continue with how to start a spotify podcast. You have the option of creating a new podcast or moving your podcast.
- Name your podcast.
- Agree to service terms.
- Provide your RSS feed.
- Add Categories.
- Confirm Details.
How To Start A Podcast On YouTube
YouTube is primarily for video, but you can use it for live streaming and podcasts too.1. Go to YouTube Studio.
2. Click Create, then “New Podcast” or “Set an Existing Playlist as a Podcast.”
3. Add Title, Description, Visibility, and Add a Square Cover.
4. Save the podcast and YouTube will convert the videos to a podcast. This allows them to be added to YouTube Music.
5. Add the YouTube Podcast Badge.
Youtube has extensive documentation on how to start a true crime podcast (or any other type). Find out how.
Step 11. How To Promote A Podcast
For those wondering how to start a podcast with no audience, you’ll want to consider the following advice:
- Create and upload three episodes before releasing the podcast
- Add transcripts to every episode
- Tease new episodes on social media before release
- Share new episodes 2-3x during the week
- Pull in followers from your guests
- Share short clips
- Convert to video because Google loves video
- Add to less common directories to get backlinks
- Run contests and promotions during your first six weeks to get on the New and Noteworthy iTunes List
- Encourage partners to share content
- Be a guest on other podcasts
Podcast FAQ
How To Start A Podcast Script
To write a podcast script, follow this process:- Research common search queries with an SEO tool.
- Create an outline of the questions people ask the most.
- Research each question.
- Write out a sentence and practice it.
- Use cue cards or a teleprompter.
- Be prepared to shift if someone answers questions without prompting.
What Do You Need To Start A Podcast?
Almost everything you need to start a podcast you should already have or be able to get for free. You’ll need:- Computer or Phone
- Internet Connection
- Recording Device and Software (Use your phone recording software to get started)
- Editing Software
- Headphones
- RSS feed (Free ones are available)
How To Start A Video Podcast
Starting a video podcast is similar to starting a YouTube channel. Here’s the process:
- Follow the directions in the link above.
- Convert the Channel to an RSS feed. Just do this by converting your YouTube Channel to https://www.youtube.com/feeds/videos.xml?channel_id=CHANNEL_ID. (Make sure to change “CHANNEL_ID” to your channel name.)
- Add the RSS feed to your podcast hosting and podcast directories.
- Upload new episodes.
- Market your video podcast.
Get Started Today!
Well, what are you waiting for? Now you know how to start a podcast. You can even start the podcast for free. What podcasting subject would you like us to cover next?- How to start a sports podcast
- How to start a business podcast
- How to start a podcast on iphone
- How to start a podcast network
- Something else - Tell us in the comments!
Opening a restaurant can be a real challenge because competition is high, but restaurants are making a comeback while other industries have narrowing profits. If you want to open your own restaurant, we can show you how!
We talked with the owner of one of the oldest restaurants in the U.S. James Louie owns 50% of Huber’s Cafe and the 150-year-old restaurant makes more than $180K per month. The 1999 Restaurateur of the Year shares the secrets to their longevity.
He’ll share insights into:
According to IBIS World, the food service industry makes over $1.12 trillion across over 1 million businesses. There are 135 reports that come up covering restaurants from pizza places to italian, franchise, fast food, or single-location full-service restaurants.
For the purpose of this article, we’ll use report 72211b: Single Location Full-Service Restaurants in the US. I strongly advise you review their full list of restaurant reports to see if there is one that is more relevant to you.
This group of restaurants includes:
“single-location, independent or family-operated restaurants that provide food services to patrons who order and are served while seated (i.e. waiter and waitress service) and pay after eating. These businesses may sell alcohol and other beverages in addition to providing food services to guests.”
These single-location restaurants make up nearly 16% of the 1 million restaurants, 18.6% of the food service revenue, but only 4% of the industry profit. This makes it a lower profit than chains, bars, and fast food restaurants.
Such revenue is expected to grow from $208.9 billion in 2023 to 211.2 billion in 2028. Those in the fine dining field are seeing the most success because high-income earners are less impacted by price changes. I would describe Huber’s pricing as being on the low end of the fine dining spectrum.
Adam told us:
[su_quote]You need top quality products and low turnover. It’s the only way to maintain quality.[/su_quote]
He went on to describe the current environment.
[su_quote]We had to raise prices because of the current economic environment, rising food costs, and challenges finding employees.[/su_quote]
He also warned about the challenges of restaurant startup costs.
[su_quote]One of the biggest issues with a new business or new restaurant is having enough financing.[/su_quote]
In this step to open a restaurant, you’ll want to identify your target customers. Try to understand what kind of prospective customers visit the style restaurant you are opening. Some of the information you’ll want includes:
[/su_table]
Based on the startup costs plus ongoing costs, your restaurant planning should include how you will achieve funding of $1,088,500 to make it through the first year. Achieving this value of funding should give you enough runway to establish restaurant business profitability assuming you manage your restaurant to industry benchmarks.
Many business owners opt to open a food truck over opening a new restaurant because of the cost of opening a restaurant. Find out how Carlos started with a food truck before his restaurant opening:
[su_youtube url="https://youtu.be/2idW6fSfvIQ"]
[/su_table]
Similar to budgeting in your personal life, creating and maintaining a professional budget is a vital component of starting a successful business. The budget should include:
Restaurants choose their names in different ways. Some popular methods include:
You can create a legal structure on your own, but we recommend working with an:
Your restaurant will need an Employee Identification Number (EIN) to hire employees and pay payroll taxes. An EIN is similar to a social security number for your business. You’ll need it to:
A restaurant requires a health inspection in many locations because they want to make sure you follow food safety regulations. These may also come with other requirements like a training course for the food handlers card in Las Vegas.
Here’s the deal: You will have many things to consider when starting a restaurant, but don’t worry. We’ll show you how to start a restaurant by following these steps:
Huber’s Cafe menu is a high-end cafe that differentiates itself from its competitors based on how they cook their turkeys. James told us:
[su_quote]We use the whole turkey, but we don’t sell the neck as an entree.[/su_quote]
Unlike many upscale restaurants, Huber’s includes pictures in their menu, which I love! (It is so difficult to choose a meal when I can’t picture the presentation.) They picture all their turkey meals, which shows adherence to OpenTable’s first suggestion. They cover all the bases expected with fine dining and 10 items per category. They even make wine suggestions to go with each meal.
The most interesting point on their menu is how prominently they feature their best selling drink.
Keep reading for more information on starting a restaurant business.
Each location will need different equipment and restaurant furniture. Some of the items you’ll need to get for any restaurant include:
There are three main ways that restaurants price food:
Before you start operations, you’ll need systems to run it. You’ll need a:
Your restaurant will need to follow state and federal payroll tax laws including requirements to keep a record of employment taxes for at least four years. The IRS tax filing guide is the best source of information for a new business.
Safety is critical to think about when learning how to start restaurant business operations. Restaurants have safety concerns:
Restaurants have lots of options to help people discover their business. You’ll want to:
Your grand opening is when you introduce yourself to the general public. The goal is to drive attention to your new establishment. You’ll want to contact local media and food influencers to invite them to try your menu. You might also want to post ads on social media and search engines. The goal of the grand opening is to drive attention to your new establishment.
- Creating a successful restaurant concept
- Funding your business
- The importance of the restaurant menu
- Choosing a commercial space
- And other keys for restaurant endurance
- Learn About Restaurants
- Ideas for Your Own Restaurant Concept
- Identify Your Ideal Target Market
- Create a Restaurant Business Plan
- Fund Your Restaurant Business
- Consider Restaurant Names
- What Do You Need to Open Restaurant?
- How to Open a Restaurant
- How to Advertise a Restaurant
Step 1. Learn About Restaurants
You need to have a variety of skills before opening a restaurant. You’ll need to understand:- Cooking
- Customer Service
- Financial Management
- Time Management
- People Management
Step 2. Ideas for Your Own Restaurant Concept
Small business owners have a ton of restaurant concepts to ponder when they decide to open a restaurant. Review each business model carefully to decide which is best for you. Consider the following restaurant styles:- Quick Service Restaurants
- Food Truck Business
- Fast Food Restaurants
- Casual Dining
- Delivery Service
- Fine Dining
- Bar and Grill
- Buffets
- Restaurant Franchises
- Restaurants Focused on Specific Foods
- Make something no one else has.
- Do it better than anyone else.[/su_quote]
What Is the Restaurant Industry Outlook?
According to IBIS World, the food service industry makes over $1.12 trillion across over 1 million businesses. There are 135 reports that come up covering restaurants from pizza places to italian, franchise, fast food, or single-location full-service restaurants.
For the purpose of this article, we’ll use report 72211b: Single Location Full-Service Restaurants in the US. I strongly advise you review their full list of restaurant reports to see if there is one that is more relevant to you.
This group of restaurants includes:
“single-location, independent or family-operated restaurants that provide food services to patrons who order and are served while seated (i.e. waiter and waitress service) and pay after eating. These businesses may sell alcohol and other beverages in addition to providing food services to guests.”
These single-location restaurants make up nearly 16% of the 1 million restaurants, 18.6% of the food service revenue, but only 4% of the industry profit. This makes it a lower profit than chains, bars, and fast food restaurants.
Such revenue is expected to grow from $208.9 billion in 2023 to 211.2 billion in 2028. Those in the fine dining field are seeing the most success because high-income earners are less impacted by price changes. I would describe Huber’s pricing as being on the low end of the fine dining spectrum.
Adam told us:
[su_quote]You need top quality products and low turnover. It’s the only way to maintain quality.[/su_quote]
He went on to describe the current environment.
[su_quote]We had to raise prices because of the current economic environment, rising food costs, and challenges finding employees.[/su_quote]
He also warned about the challenges of restaurant startup costs.
[su_quote]One of the biggest issues with a new business or new restaurant is having enough financing.[/su_quote]
Who Are the Major Players in the Restaurant Industry?
The major players in the restaurant business all have multiple locations. Some of the major players in restaurants include:- Darden: The parent company of Olive Garden and Longhorn Steakhouse makes nearly $9 billion per year and nearly 10% profit margin. Figure out how to open a restaurant that emulates their business strategy and you’ll be a happy restaurant owner.
- Chipotle: The leader in the fast food industry has made a lot of gains over the years. It has surpassed both McDonald’s and Chick-Fil-A to have 2.2% market share. Chipotle makes around $7 billion and keeps growing, but their profit margin slightly lags the fast food industry.
- Hakkasan Group: A nightclub and bar operator that owns multiple Vegas hotspots earns more than $360 million dollars but has a lousy 2.4% profit margin.
Step 3. Identify Your Ideal Target Market
In this step to open a restaurant, you’ll want to identify your target customers. Try to understand what kind of prospective customers visit the style restaurant you are opening. Some of the information you’ll want includes:
- Generation: Understanding which generations are more likely to eat at a restaurant can be helpful. For instance, getting younger generations to try new cuisines might be easy, while asking them to spend $200 on fine dining might not be.
- Gender: Women tend to be more likely to view food-based social media and blogs. If you can get them interested, you have a good chance of getting their significant other to try your food.
- Location: Do people tend to travel to eat at a restaurant or do they want something closer to their house? Depending on the location and type of restaurant, the answer varies.
- Wealth: If you’re trying to sell a premium experience, you’ll need to be in a premium neighborhood and market your restaurant opening to those that can afford it.
- Buying Preferences: You’ll want data like frequency of eating out, preferred means of payment, time of day more likely to eat, and what social media influencers they follow.
Why Do Restaurants Fail?
The most common reason restaurants fail is because the business owner runs out of money. You’ll want to think about everything that can go wrong and how to overcome it before you open a new restaurant. James told us: [su_quote]Most new restaurants fail because they didn’t secure funding to help them reach the point of profitability.[/su_quote] That means you’ll need to gather as much data about your restaurant type as possible and include it in your restaurant business plan, which we’ll discuss next.Step 4. Opening a Restaurant Business Plan
One thing to consider when opening a restaurant is a business plan. Your restaurant business plan should help guide the decision-making of your new restaurant. You’ll want to include:- An Executive Summary
- Restaurant Type
- Startup Costs
- Operating Costs for 5+ Years
- Marketing Plan
- Organizational Chart
- Funding Needs
Templates
In addition to the SBA resources, check out these free business plan templates!- One-page business plan template
- Our Blog: How to Write A Business Plan (Plus Examples and Templates)
Steps to Opening a Restaurant Checklist
We’ve created a checklist to help you with your restaurant opening. Download it below.Step 5. Fund Your Restaurant Business
Budgeting, then funding your budget properly is essential to a restaurant’s success. We’ll look at information to include in your restaurant business plan and budget.How Much Does It Cost to Open a Restaurant?
According to RestaurantOwner.com, 350 restaurants gave their input on their startup costs. You can expect to spend: [su_note note_color="#dbeafc"] Startup Costs: $175,500 to $750,500, which includes:- Construction Costs: $70,000 to $472,500
- Kitchen and Bar Equipment Costs: $40,000 to $196,250
- Pre-Opening Costs: $10,000 to $50,000
| $500K Annual Revenue | $1 Million Annual Revenue | $5 Million Annual Revenue | $10 Million Annual Revenue | |
| 1 Year Operational Expenses | $348,929.07 | $811,524.10 | $4,043,071.67 | $8,019,237.71 |
| 3 Year Operational Expenses | $1,040,611.82 | $2,447,915.44 | $12,146,020.61 | $24,109,178.93 |
| 5 Year Operational Expenses | $1,729,846.22 | $4,147,119.35 | $20,264,029.56 | $40,237,087.15 |
| 10 Year Operational Expenses: | $3,514,456.46 | $8,660,214.90 | $40,309,500.69 | $84,729,936.20 |
How Much Do Restaurant Owners Make?
Restaurant owners make any salary they provide themselves, tips (if they are the server), and the profit from the company. Based on the survey cited above, you might not earn any money for 12 months if you rely on profit. The table below is a breakdown of how much a small business restaurant might make. [su_table responsive="yes" alternate="no" fixed="yes"]| Bottom 25% ($550,000 Revenue, 0% Profit, No Salary, Tips only) | Median ($1,125,000 Revenue, 5.5% Profit, Salary-Median, No Tips) | Top 25% ($1,880,000 Revenue, 15% Profit, Salary-High, No tips) | |
| Profit | $0 | $61,875 | $282,000 |
| Tips | $82,500 | $0 | $0 |
| Salary | $0 | $59,440 | $98,070 |
| Total | $82,500 | $121,315 | $380,070 |
Budgeting
Similar to budgeting in your personal life, creating and maintaining a professional budget is a vital component of starting a successful business. The budget should include:
- Costs associated with business licensing
- Costs of the space, equipment, utilities, and food
- Costs of liability insurance to protect your business if something goes wrong
- Employee costs
- Cost of accepting credit cards
- Software for running the business
- Fees to delivery apps
- Taxes
- Paying yourself
Budgeting Resources:
Here are a couple of budgeting resources you can use:- A complete guide to creating your business budget and managing expenses
- A breakdown of the necessary restaurant costs
How to Get Restaurant Funding
Here are a few ways you can get the funds for restaurant equipment, your business location, menu items, and other startup costs. Some of the most common for small businesses include:- Personal funds: Almost every owner will invest some of their own money when starting a restaurant. Bootstrapping is the most common way of starting a business.
- Government programs: Check the SBA site to see if there are grants for opening a restaurant. Then apply to see if you qualify.
- Small business loans: You might qualify for a small business loan especially if you are a franchise. Try our preferred lender, National Business Capital.
- Home equity loan: A home equity loan is a great way to get enough funds to start your restaurant, but many restaurants fail. If yours fails, you lose your home.
- Business partner: Many amazing chefs open their first restaurant because they were approached by a business partner.
- Friends and family: People who trust you and believe in your mission may be willing to help you get started.
- Crowdfunding: See if you can get retail investors to fund your company.
- Credit cards: You might use credit cards to fund part of a small restaurant, but most people don’t have a half a million credit line on their card. You’ll probably need other ways to fund your new restaurant in addition to a credit card.
How to Open a Restaurant with No Money?
There are many new restaurant owners that have started cooking food at home and earned the money as they went. In fact, we talked to Carlos who started with a cart he pushed around. He grew until he could buy a food truck, then started a restaurant. Find out how: [su_youtube url="https://youtu.be/8MPTE67PYcY"] You can also try to find investors or get a small business loan.How to Open a Restaurant with No Experience
You can invest in a restaurant without experience, but it will be really challenging. Restaurants are one of the fastest paced businesses in the world. During busy hours restaurants can reach maximum capacity and stay there for several hours at a time. If you’ve never worked in a restaurant, I strongly suggest finding a business partner or restaurant consultant to help you.Step 6. Consider Restaurant Names
Restaurants choose their names in different ways. Some popular methods include:
- Using a family name: Huber’s Cafe is named after the original owner.
- Creating a pun: Many Asian restaurants use this strategy. I once went to a Pho restaurant named Pho King Pho Nomenal.
- Include the name of the food: This is common when someone considers opening a BBQ restaurant.
- Evoke emotions: Raising Cane’s is named after the owner’s dog Cane.
- Get Creative: You don’t have to stick with conventional names.
Don’t Forget to Register a Domain
When registering a domain name for your business, always go for a .com. Our name generator connects you directly to Name Cheap, but you can always get domains from GoDaddy or your website provider. Once you’ve chosen your restaurant name and bought the domain, it’s time to register it with the government. The SBA provides a useful guide for how to do this.Step 7. What Do You Need to Open Restaurant?
You need to meet the following legal requirements when opening a restaurant: [su_note note_color="#dbeafc"]- Create a business entity.
- Get an Employer Identification Number (EIN).
- Get restaurant licensing.
- Buy a liquor license (if applicable).
- Get a food permit.
- Get a sales tax permit.
- Set up unemployment insurance.
- Buy business insurance.
Create a Business Entity
You can create a legal structure on your own, but we recommend working with an:
- Attorney
- Accountant
- Tax specialist
Corporation
Establishing a corporation provides personal liability protection and tax benefits. However, corporations are more heavily regulated than LLCs. They also incur double taxation, meaning you’ll have to pay income tax and corporate tax on profits.Limited Liability Company
A Limited Liability Company (LLC) is a legal business entity that also offers personal liability protection for the business owner while without double taxation. You can have one or multiple owners as an LLC. You can even opt to file taxes as an S-Corp to get some of the corporate benefits without double taxation. Find out the differences between an LLC and an S-Corp. LLCs will typically need to have an operating agreement, especially if the business is a multi-owner LLC. A new restaurant should get an LLC, at a minimum, to protect against personal responsibility against:- Worker injuries
- Guests getting food poisoning
- Serving a drunk driver
Every Restaurant Needs an EIN
Your restaurant will need an Employee Identification Number (EIN) to hire employees and pay payroll taxes. An EIN is similar to a social security number for your business. You’ll need it to:
- Open a business bank account.
- File tax returns.
- Apply for business licenses.
Get Your Restaurant License
You’ll need to find out what restaurant licenses your location requires before opening restaurant operations. The SBA tool will help you when it comes to applying for a business license or permit. Remember to pay special attention to the regulations involving liquor, which we’ll discuss next.Buy Your Liquor License
If you want to serve alcohol, you’ll need a liquor license. Go to the Alcohol and Tobacco tax and Trade Bureau (TTB) website to get a federal retail liquor dealer permit and find your local liquor board. Liquor sales are some of the highest profit menu items, so you’ll want to make sure to get this.Apply for a Food Permit
A restaurant requires a health inspection in many locations because they want to make sure you follow food safety regulations. These may also come with other requirements like a training course for the food handlers card in Las Vegas.
Get a Sales Tax Permit
Most states have sales tax requirements that must be followed. Each state is different, so make sure to check with your Secretary of State office to establish what the local requirements are. Avalara has a guide on sales taxes. Check it out.Set Up Unemployment Insurance
Unemployment insurance protects employees if they are laid off. While we hope your restaurant business will not have to lay off employees, recessions occur. The U.S. Chamber of Commerce has a ton of information on unemployment and also offers links to each state agency that handles state unemployment. You’ll have to pay around $420 per employee on a federal level plus any state UI.Buy Business Insurance and Liability Insurance
Business insurance is necessary to protect a restaurant when accidents occur. The primary types of business insurance include:- Business General Liability Insurance: For when costly damage occurs to a person or their property.
- Professional Liability Insurance: Protect the business in case something happens that causes injury or death.
- Cybersecurity insurance: Protects the restaurant should credit card information get stolen.
Step 8. How to Open a Restaurant
Here’s the deal: You will have many things to consider when starting a restaurant, but don’t worry. We’ll show you how to start a restaurant by following these steps:
- Create a menu.
- Find a location.
- Purchase equipment.
- Establish a pricing structure.
- Implement the business systems.
- Hire employees.
- Control the cost of food.
- Follow safety and ethical business practices.
Create a Menu
When you start a restaurant, it’s easy to get lured into creating a massive menu, but don’t be fooled. James told us the secret to a successful menu comes down to two things: [su_quote]Serve something no one else has or make it better than anyone else.[/su_quote] OpenTable agrees! They suggest the following strategy for creating a menu:- Build your menu around your masterpieces.
- Add appetizers that compliment the meal.
- Then add desserts and drinks.
- Don’t forget soups and salads.
- Add the items that every restaurant in your category is expected to have. You don’t need more than 15 entrees.
- Limit each category to less than 10 items.
- Use the menu within your marketing plan to help drive the dining experience to your unique selling point.
Huber’s Cafe Menu
Huber’s Cafe menu is a high-end cafe that differentiates itself from its competitors based on how they cook their turkeys. James told us:
[su_quote]We use the whole turkey, but we don’t sell the neck as an entree.[/su_quote]
Unlike many upscale restaurants, Huber’s includes pictures in their menu, which I love! (It is so difficult to choose a meal when I can’t picture the presentation.) They picture all their turkey meals, which shows adherence to OpenTable’s first suggestion. They cover all the bases expected with fine dining and 10 items per category. They even make wine suggestions to go with each meal.
The most interesting point on their menu is how prominently they feature their best selling drink.
Best Selling Drink: Spanish Coffee
Every restaurant should sell liquor and create a signature drink. Even breakfast restaurants do bottomless mimosas! Huber’s Cafe has nailed theirs! Anyone starting a restaurant hopes to get such a successful drink. James told us: [su_quote]We started selling a ton of Spanish Coffee in the 1970s and early 80s.[/su_quote] He went on to explain: [su_quote]In fact, we’re the largest user of Kahlua in the galaxy![/su_quote] He even gave us a tip about how to start a restaurant that can save you a lot of money. [su_quote]Insurance companies don’t like insuring restaurants that get more than 50% of their sales from alcohol. We keep our sales at 60% food and 40% alcohol to save money on insurance.[/su_quote] Check out the famous Spanish Coffee below:
Keep reading for more information on starting a restaurant business.
Find a Location for Your Restaurant
Your restaurant location can make or break a restaurant. You’ll want to choose a spot with:- Lots of foot traffic
- Good parking
- A good fit for your service style (Service style can vary from buffets, pickup, dine-in, delivery, drive through, full-service, and more.)
Purchase Restaurant Equipment and Furniture
Each location will need different equipment and restaurant furniture. Some of the items you’ll need to get for any restaurant include:
- Tables and chairs
- Bar stools
- Hostess podium
- Drink machines
- Dishwashing machines
- Ice machines
- Prep tables
- Kitchen equipment (varies based on restaurant type)
- Vent hoods (remove heat)
- Dishes, cups, and utensils
- Combi-oven (steamer + convection oven)
- Double stacking convection ovens
- Groin pot (with soup stock and gravy)
How to Calculate Food Pricing
There are three main ways that restaurants price food:
- Use the cost of goods (COGS) sold divided by industry benchmarks.
- Developing pricing similar to other restaurants.
- Use the cost of food divided by industry benchmarks.
Calculate Menu Prices with Cost of Goods Sold
Calculating the cost of goods sold involves adding the cost of the ingredients and the labor costs that are incurred making and serving each item. This method can be fairly difficult especially, since restaurants have fluctuating business throughout the day. Let’s assume it takes: [su_note note_color="#dbeafc"]- All employees make $10 per hour
- 5 minutes of prep time
- 10 minutes of cooking time
- 5 minutes of serving time
- The cost of the plate is $5
Price Similar to Other Restaurants
Another pricing strategy is to price your food comparable to successful restaurants in your area. You’ll want to check competitor pricing online to make sure that the market will pay the price you want to charge. If they are selling a similar dish for $29.99, you probably want to go with their pricing compared to the other ways, which come out to far less.Use Ingredient Costs to Calculate Menu Pricing
This method works similarly to the COGS pricing method, but only uses the cost of food from the food supplier and the industry benchmark for purchases and revenue. We’ll use the same $5 food item as in the other examples. You’d want to divide the $5 plate by the industry benchmark for food, which was .263 in 2022. Using this method, the plate would cost $19.01. We’ll round up to $19.99 because it looks better on the menu.Note About External Delivery Services
If you use an external delivery service, they normally charge the restaurants a fee. UberEats charges up to 30%. If that comes out of the $19.99 in the previous step, you’ll lose money. Just divide by .7 to get a price of $28.56, which we’ll round up to $28.99. That’s why restaurant pricing has increased for customers. Some restaurants open a second business for delivery services so they can charge less in store than they do on apps because it is often illegal to charge different customers different prices for the same item.Implement Restaurant Systems
Before you start operations, you’ll need systems to run it. You’ll need a:
- Sales System: Huber’s uses Aloha from NCR.
- Inventory System: Huber uses FoodTrak.
- Payroll System: ADP is Huber’s preferred payroll provider, but you can check out other payroll providers, too.
- Accounting System: James told us they have a bookkeeper and an accountant but are looking at Quickbooks or PeachTree.
Hire Employees
Most restaurants will need employees because one person can’t manage the restaurant, host, serve, bartend, and be a head chef. We discussed hiring with James in our interview about running restaurants. He told us: [su_quote]It’s gotten much harder to find amazing staff. Sometimes we can’t get people to come in for interviews.[/su_quote] He also explained what he looks for when hiring the front of the house staff. [su_quote]Do they smile a lot?[/su_quote] Huber’s has more than 40 employees and has had multiple employees who have stayed with them for more than 40 years! James gave two pieces of advice for managing employees. [su_quote]Don’t get in people’s faces. If there’s a problem, deal with it in private.[/su_quote] and [su_quote]Give your employees responsibility.[/su_quote]Pay the Employees
Employee compensation will be your biggest expense. You should expect to spend 25% to 40% of your revenue on employees depending on your state. Many states allow tips to count toward minimum wage, but you may find it difficult to find employees if you pay the minimum wage for tipped employees. Find an updated table of minimum wages by state on Minimum-Wage.org. According to the BLS the median wage for various restaurant jobs is:- Cooks: $14.43 per hour or $ 30,010 annually
- Restaurant Managers: $28.58 per hour or $59,440 annually
- Bartenders: $12.67 per hour or $26,350 annually
Follow Tax Laws
Your restaurant will need to follow state and federal payroll tax laws including requirements to keep a record of employment taxes for at least four years. The IRS tax filing guide is the best source of information for a new business.
Follow Federal Employment and Labor Laws
You’ll need to display posters with labor laws for employees in your restaurant. Follow the employer guide regarding how to display them.Other Requirements
- The Federal Unemployment Tax Act (FUTA) requires any business with employees to pay a payroll tax.
- Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
- Meeting Occupational Health and Safety Administration (OSHA) standards define workplace safety requirements and are necessary for any business (and highly relevant in an industry as physical as a restaurant).
- Worker’s Compensation Insurance is a must for restaurants, as it helps businesses avoid the cost of an employee’s medical bills and lost wages following a workplace injury.
Follow Safety Regulations for Restaurants
Safety is critical to think about when learning how to start restaurant business operations. Restaurants have safety concerns:
- Burns
- Food poisoning
- Cuts
- Food allergies
- Serving intoxicated customers
- Injuries from slipping or falling
- Develop and implement written safety and emergency response procedures.
- Provide worker orientation and training on safety procedures.
- Follow a process to identify, control, and mitigate workplace safety hazards.
- Regularly inspect your workplace to help identify any potential hazards.
- Investigate and document accidents (or close calls) to prevent a future occurrence.
- Hold safety and health refreshers regularly.
- Keep records of workplace health and safety for review during internal or external investigations.
- Keep a first aid kit available and well-stocked in your restaurant.
Step 9. How to Advertise a Restaurant
Restaurants have lots of options to help people discover their business. You’ll want to:
- Create a Website: Learn how to build a website. Make sure to include your menu and a way to order.
- Start Social Media Profiles: Creating social media channels creates easy backlinks to your website and makes it easy for your customers to share pictures of your food.
- Create a Google Business Profile: Get found on Google Search and Google Maps by creating a profile and keeping it up to date on Google Business Profile.
- Partner with Other Businesses: James told us: “God sent UpFlip here to help us promote our business.”
- Start a Rewards Program: James uses the “Birthday Club” to build a mailing list and provides a free meal on your birthday.
- Consider a Soft Opening: We’ll discuss this more below.
- Advertise Your Grand Opening: We’ll also discuss this more below.
What Is a Soft Opening for a Restaurant?
A soft opening is a method of preparing the restaurant for the grand opening. Invite family and friends to try the sample menu during a fun evening together. The soft opening will help the restaurant:- Work out kinks before serving the general public.
- Get good pictures for marketing.
- Help identify top performing employees.
- Get feedback on menu items early.
How Should I Advertise My Grand Opening?
Your grand opening is when you introduce yourself to the general public. The goal is to drive attention to your new establishment. You’ll want to contact local media and food influencers to invite them to try your menu. You might also want to post ads on social media and search engines. The goal of the grand opening is to drive attention to your new establishment.
Are You Ready for the Restaurant Industry?
We’ve shared everything you need to prepare to open your own food service business. The hardest part is gathering the resources, the determination, and the team to accomplish your goals. You can achieve them—you just have to keep working toward it each day. What kind of restaurant would you open?
Did you know that you can start a candle business for less than $100 and grow it into $500K in annual revenue?
Jocelyn and Jen started RXLA as a side hustle making gifts for coworkers, then started going to farmers markets, and eventually opened a candle store and expanded their offerings on their way to bringing in a half-million dollars per year.
We’ll share strategies for how to start a candle business with just a little money, smart marketing, and responsible scaling.
Click on any of the links below to jump to the section that interests you, or just continue reading.
[su_note note_color="#dbeafc"] Click on any of the links below to jump to the section that interests you, or just continue reading.
- Candle Business Case Study: RX Candles Los Angeles
- Candle Industry Summary
- How to Start a Candle Business
- Things to Consider When Starting a Candle Business
- Ideas for a Candle Making Business
- How to Start a Candle Business With No Money
- Open Your Own Candle Business [/su_note]
Candle Business Case Study: RX Candles Los Angeles
Jocelyn started RX Candles in 2013 as a hobby. When the business venture received crowdfunding, she invited Jen to help create soy candles. The candle brand opened a local craft store, but the pandemic caused it to shut down.
They are still recovering from the hit they took from closing the retail store, but increasing their offerings and selling wholesale has helped them reach $500K in annual revenue with 50% gross margins.
Customers loved their homemade candles so much that they asked for other products, services, and ways of buying. As the sisters gained confidence in their products, they realized they needed to listen to their customers and provide the services they—and other potential customers—wanted.
Keep reading to learn more about the candle industry.
Candle Industry Summary
According to Grandview Research, the candle industry was worth approximately $13.6B in 2023 and is expected to reach $20B by 2030.
How much does it cost to start a candle business?
The candle industry has a low barrier to entry. According to Crowdspring, you should expect to spend between $9.5K to $78K to start a candle business, with an average of around $44K. But we’ve interviewed two business owners who say they started candle businesses for $100
A candle maker’s startup costs will vary depending on the cost of living in their location, supply and materials costs, and other factors.
Is candle making a profitable business?
A candle making business can be highly profitable, with gross margins of 50%. Ingredients, packaging, and marketing are some of the primary costs that will impact your profitability.
Can you make money selling candles from home?
Yes, you can start a candle business from home and make decent money, but it may be more cost-effective to utilize a fulfillment center to fulfill your orders. There may be restrictions in your town or homeowners’ association that impact the ability to run a home-based candle business.
Who are the major candle makers?
It’s helpful to research the major players in the candle market because you can identify gaps in the industry and ways to market your own products. The major candle makers include:
- Yankee Candle (Newell Brands)
- Luminex Home Décor & Fragrance
- Bolsius
- MVP Group International, Inc
- Gies
- Talent
- Universal Candle
- Qingdao Kingking Applied Chemistry Co., LTD
- Vollmar
- Empire Candle Co., LLC
- Hyfusin Group Holdings Limited
- Diptyque
- Dandong Everlight Candle Industry Co., Ltd.
- Fushun Pingtian Wax Products Co., Ltd.
While the major players in the industry get most of the revenue, there is always room for new entrants to make a great living selling candles.
How to Start a Candle Business
It helps to have a path of action before you start a candle business. Follow the steps below to start a successful candle making business:
- Learn how to make candles.
- Define your brand.
- Plan your business.
- Secure funding.
- Get business insurance
- Gather supplies.
- Create an online store.
- Market your business.
- Fulfill orders.
Step 1: Learn How to Make Candles
Before you can start selling candles, you need to know how to make them. Jazmin, another successful candlemaker, explained how to accomplish it in our interview. Watch the interview below:
Let’s look at what you’ll need to get started.
Tools and Materials for Candle Making
Good tools and candle making supplies can make the job more fun and more efficient. At a minimum, you’ll need:
- 10 pounds of wax
- Pouring pitcher
- Pot to put the pitcher in to create a double boiler
- Thermometer
- Containers to hold the candles
- Scented fragrances
- Wicks
Jen told us:
[su_quote]Candle brands will want to scale responsibly, which means as the business grows, you’ll want to invest in better tools for efficiency.[/su_quote]
How to Make Candles to Sell
You can start by buying a candle making kit, but as you learn, you’ll want to pick your own wax and essential oils. The candle making process normally follows the steps listed below:
- Fill a larger pot with water and the pouring pitcher with wax flakes.
- Hang the pouring pitcher on the inside of the larger pot to effectively create a double boiler.
- Wait for the wax to melt, which will take 45 minutes to an hour depending on the temperature.
- Pour the wax into candle molds.
- Add scents and wicks.
- Let them dry.
- Package the candles.
Jazmin told us:
[su_quote]When you make candles, only about 20% of the scent will actually be smelled, so you need to be aware of that [when adding scents], otherwise you won’t be able to smell it.[/su_quote]
Step 2: Define Your Candle Making Brand
You’ll want to create a coherent brand for your candle making business. Some of the things you’ll need to consider include:
- Target market: Who will buy your candles? Will you be mass-producing candles or creating a luxury brand image? Identifying your target market makes marketing and branding efforts easier.
- Brand identity: What makes your candles unique? What sets them apart from other products on the market? Your brand identity will include your business name, logo, colors, and physical and digital design. Learn more about candle business names here.
- Brand story: What inspired your candle business and the branding for it? A good story helps you connect with customers and create a more meaningful experience.
- Brand values: What does your candle company hold dear? Think about how you operate your brand and what you want it to tell people. Your values should guide everything you do, including your materials, packaging, and shipping methods.
Creating a brand won’t happen overnight, but after continually telling your story and showing your values.
Step 3: Create a Candle Business Plan
Every business should have a workable plan to help guide decisions. When writing a candle making business plan, you’ll want to include the following:
- Niche: Explain what makes your small candle business different and describe the target audience that your products appeal to.
- Validate your business idea: Explain the research you have performed to establish your candle business will appeal to your target audience. Learn how to validate an idea.
- Business structure: New businesses normally choose a limited liability company or sole proprietorship as their business structure.
- Budget: Estimate your costs to start a candle business and operate it for one to three years. The budget will help you understand how much funding you’ll need until the business can support itself and your lifestyle.
- Business bank account: Open a business bank account to help separate your personal and business expenses. You can also get an Employer Identification Number (EIN) to open a business bank account and access materials at wholesale prices.
- Marketing plan: A marketing plan spells out how your candle business will approach products, pricing, placement (where you sell the goods), and promotion of your candles.
The biggest thing to remember about writing a business plan is it should be easy to understand, well-documented, and as short as possible.
Download our free business plan template and work through it while watching the video below.
Step 4: Secure Funding for Your Candle Line
Jen suggests self-funding when you start a candle brand. Other small business funding options include crowdfunding, a standard business loan, a Small Business Administration loan, or an interest-free loan from friends and family.
Learn how to get business loans here.
Step 5: Get Business Insurance
You’ll want to get insurance when you create candles. Candles can start fires, and small business owners risk lawsuits from customers or employees. We suggest starting your business insurance search with Simply Business because it compares rates from the leading insurance companies.
Learn more about small business insurance here.
Step 6: Gather Supplies
New business owners will need to get the candle wax, different fragrance oil blends, packaging, and any equipment they don’t already have.
Depending on your startup capital and business needs, you may be able to buy most of the products on Amazon, or you may need to reach out to manufacturers.
Step 7: Create an Online Store
You’ll want your own website for candle sales. That means you’ll need a domain name and a website builder. Then you’ll need to create a home page and product pages for each type of candle you sell. You might want categories like:
- Scented candles
- Luxury candles
- Decorative candles
- Fragrance oils
- Tea light candles
- Container candles
- Birthday candles
- Liquid candles
- Insect repellant candles
- Flameless candles
- Pillar candles
- Aromatherapy candles
Read more about the different types of candles on Styles at Life.
Step 8: Market Your Business
You’ll want to market your candles to your target market. Each small candle business will have a different marketing strategy depending on their target market, but most candle companies will include a combination of:
- Social media marketing
- Email marketing
- Content marketing
- Traditional marketing channels
Jen explained that their marketing strategy consists of local farmers markets, pop-up shops, social media, and email marketing. She also explained:
[su_quote]I feel like our biggest mistakes were not going digital fast enough. If we had a website and collected emails from the beginning we would have grown much faster.[/su_quote]
Step 9: Sell Candles
Fulfilling orders is another crucial part of running a candle line. When you’re selling online, this will mean packaging and shipping the candles to consumers or other small business owners.
When you sell at local markets or a local craft store, you’ll still need packaging, but it could be a decorative box and branded bags as opposed to a box that is ideal for shipping.
Things to Consider When Starting a Candle Business
When considering how to start a candle business, you’ll need to consider:
- Where am I going to sell my candles?
- Am I going to hire employees or do it all myself?
- What technology do I need when starting candle business operations?
- What will my pricing strategy be?
Let’s look at each of these.
Find a Location for Your Candle Business
There are a variety of places you can sell your candles. If you are wondering how to start a candle making business at home, you can do so using this guide and sell them on your website. Other options include:
- Retail stores
- Gift shops
- eCommerce platforms
- Flea markets
- Your local farmers market
A candle business makes different amounts of money depending on the locations they sell their products and the cost of doing business for each type of store.
Hire Employees for Your Candle Business
A dedicated candle maker may grow to the point of needing to hire employees. When you do, you’ll need to get an EIN if you haven’t already. This is how the IRS identifies employers.
You’ll also need to have payroll software and optional benefits. Many accounting software providers include payroll resources, but if you want to consider other options, check out our article where we compare the 15 best HR companies.
The Department of Labor requires employers to display poster notices for employees, either electronically or physically in the workplace. A comprehensive employer guide for how to display these posters is available on their website.
You’ll also need to follow the following requirements:
- The Federal Unemployment Tax Act (FUTA) requires any business with employees to pay a payroll tax.
- Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
- Meeting Occupational Health and Safety Administration (OSHA) standards and enforcing workplace safety are necessary for any business.
- Worker’s Compensation Insurance is required to protect your business and employees in case of injury.
Keep reading for information on the technology you’ll need.
Implement Technology to Run a Candle Making Business
When following this step-by-step candle business guide, you’ll need to implement some technology. Most of the technology that RXLA uses is for marketing purposes. They mentioned using Klaviyo for their candle brand email marketing.
Create a Pricing Strategy
One of the easiest ways to ensure you’ll make good money is to keep your candle startup costs low and charge market value for the products. You’ll want to target a gross margin of 50% for your candle business. To calculate the price easily:
- Add up the total costs for a batch of candles
- Multiply the cost by 2.
- Divide by the number of candles created.
That should put you right at 50% gross margins.
Your pricing strategy can be created in a few different ways. The primary ways of pricing candles are:
- Cost of doing business
- Add up all your costs and divide them by the number of candles you make.
- Add the amount you want to earn for each candle sold based on the time it takes you to make, sell, package, and ship each candle. So if you spend four hours making and shipping 200 candles and want to make $100 per hour, that’s $2 per candle you add to the costs.
- Competitors pricing
- Look up comparable products and price your items based on them.
- Luxury candles
- Create a brand story that makes your particular candle more valuable. This is the strategy that Jazmin used.
Whichever strategy you use, make sure you are realistic about how much time you are willing to dedicate to it. If you are only going to spend a few hours a day, you can’t make as much as if you treat it like a full-time job.
Ideas for a Candle Making Business
Candlemakers primarily target women, but according to the National Candle Association (NCA), both men and women consider candles appropriate gifts. They say the most common times people buy candles are:
- During the holiday shopping season, which is when 35% of sales occur
- Housewarming gifts
- Gifts at dinner parties
- With thank you notes
- For adult birthdays
How to Start a Candle Business With No Money
To start a candle business with no personal finances, you’ll normally need to focus on selling candles using a “print”-on-demand or drop shipping strategy. Once you have built up some money from candle sales, you can start reinvesting in the supplies and equipment to start making your own homemade candles.
The good news is that it’s inexpensive to start selling candles. Both of the business owners we talked to have started with $100.
Open Your Own Candle Business
Making candles might not seem like a profitable business, but it has the potential to blossom into a high income. Jocelyn and Jen started crafting candles as gifts, sold them in farmers markets, opened and closed a brick-and-mortar store, and were late to the digital marketing game, but they still reached an impressive $500K in annual revenue.
Their story teaches us valuable lessons about resilience, adaptability, and the power of listening to customers. They found ways to overcome challenges and expand their offerings. You can use their candle business tips to succeed too.
The candle industry is ripe with opportunity. With global revenue projected to soar in the coming years, candle business owners can sell candles to make a great living. And the beauty of it all? Given Jocelyn and Jen started with $100, a candle business is one of the best businesses to start from home.
As you embark on your candle making journey, remember that success lies not just in the quality of your product but also in the strength of your brand, the efficacy of your business plan, and the dedication to continuous improvement.
Whether you dream of creating luxury candles or catering to a specific market segment, the possibilities are limited only by your imagination and determination.
So ignite that spark of creativity, pour your passion into every candle you craft, and watch as your business illuminates not just spaces but lives, one flickering flame at a time.
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