How to Start a $60K/Month Shoe Line From Scratch
December 14, 2020
Are you a fanatic about footwear? Do you want to know how to start your own shoe line and make over $60k a month? Afshan Abbas, founder of Fuchsia Shoes, did it!
Before Afshan started her business, she quit her job as a software engineer at Microsoft to follow her passion for artisan arts and crafts (including shoes).
Over the past 4 years, she’s worked to grow her business from $100k in revenue to being on track to make $1 million this year.
In this article, we’ll tell you how to start a shoe line step-by-step. Follow our guide and Afshan’s advice to realize your passion and build your own shoe empire.
1. Get Fashion Design Training and Experience
If you’re thinking of starting a shoe line, you probably already have an interest or some experience in fashion design. However, shoe design isn’t a business to take lightly.
It’s necessary to know what you’re doing (or at least partner with someone who does!).
The best way to get training in the retail shoe industry is to attend a school that features a program in fashion design or retail.
Even better, you can find schools devoted to fashion design with a department that focuses on shoe design and development. Here are a few to consider:
- Fashion Institute of Design and Marketing
- Fashion Institute of Technology
- Pensole Footwear Design Academy
You also should consider classes or a certification course in business and/or entrepreneurship. This will help you tremendously with the non-design aspects of your shoe line.
Work in the Retail Industry
Though helpful, degrees and certifications are not a requirement to start your shoe line. They’re also not an indicator of your chances of success. However, it’s best to have experience in the retail industry.
Work in areas where you can gain an understanding of fashion buying and the things that drive consumers to purchase particular products (e.g. Why do people buy this shoe brand over another brand?).
This experience can also help you network with others who may become key allies in your quest to start your own shoe empire.
2. How Do I Start My Own Shoe Line? Start Researching!
We spoke with Afshan to get her insights and tips on how to start a shoe company and create a profitable e-commerce business. You can watch part 1 and part 2 of our interview with Afshan to hear her story.
Afshan explained that she did quite a lot of research before launching her shoe line.
I studied the artisan market. It turns out it is a $32 billion industry.
Analysts project the global footwear market to reach a value of over $500 billion by 2027. And if you want a slice of that pie, you must narrow down your market and make key choices that will guide the course of your business.
The easiest (and fastest) way to open a shoe store is to buy one that’s already up and running. You can check business listings to see what’s available in your area and how much you should expect to spend.
Questions to Consider When Researching
We’ll help you answer some of these in the next sections, but here are some questions to research and consider before you proceed:
- What is the market analysis of the entire shoe industry?
- Are you making active, non-active, or both types of footwear?
- What is your niche in the shoe business? (See Step 3)
- Do you want to be gender-specific?
- Who is your competition?
- Are you designing your line or do you need to find a designer?
- What are the costs of your supplies and where will you get them?
- Do you intend to mass-produce your line?
3. Determine Your Niche and Sales Platform
When you’re starting a shoe company, figure out what your niche in that shoe business would be because it’s a very crowded market. And if you are going to do something that other people are doing, it will be a really hard sell.
To solidify Afshan’s statement, here is a list of the 20 “best” running shoe brands. You can find a similar list for most styles of shoes.
To gain a foothold (get it?) in the market, you must determine how your shoe line will stand out above the competition. For Fushsia Shoes, Afshan and her team ran with (I can’t stop!) a luxury ballet shoe niche.
Some other niche examples to research for inspiration include:
- Keen – Known for their Uneek shoe made from recycled plastic and shoes that accommodate work and outdoor activities (steel toe, waterproof, slip-resistant).
- Nobull – Marketed to the CrossFit crowd. Nobull makes stripped-down training shoes for athletes.
- Simon Miller Shoes – Luxury thick-soled shoes and boots along with designer platform and heel shoes. They also have a vegan leather collection.
- By Far – Designer shoes that are a throwback to the ’80s ’90s and early 2000s.
Here are some questions you can ask yourself when trying to determine your niche:
- Can my shoe line solve a problem?
- Will it market to a specific audience?
- Will my design offer a distinct improvement over other brands?
- Is there something that makes my line special?
- Is there a section of the market that is underserved?
Ecommerce is the Way
We won’t tell you how to run your business. But if you haven’t noticed, brick-and-mortar retail spaces are being slaughtered by ecommerce (pandemic aside).
Unless you own an existing space or have access to free rent, determining the sales platform of your shoe line is an easy decision.
Here’s what Afshan had to say on the subject:
We’re trying to grow this shoe company by massive numbers, and getting caught up in brick-and-mortar will halt that. With ecommerce, the sky is the limit.
If you’re not experienced with ecommerce or need to polish your skills, edX, Udemy, and Coursera offer excellent courses on the subject.
4. Write a Business Plan
Every company needs a business plan. It’s an essential document that summarizes the research and decisions you made about the course of your business.
It acts as a guide that lays out your ideas and serves as a quintessential document for loan applications or investor recruitment.
What’s in a Business Plan?
- Market Analysis
- Mission Statement
- Startup and Operating Costs
- Marketing Plan (Target Market)
- Supply and Manufacturing Chain
- Sales Funnels
Templates
- Startup business plan template
- U.S. Small Business Administration Business Plan Guide
- 500 sample business plans
- One page business plan template
How Much Money Do You Need to Start a Shoe Line?
In order to complete your business plan, you must determine the startup and operating costs for your business. Doing so requires you to assess and decide the scale of your operation.
Afshan’s business started as a global venture with domestic and international customers.
Her operation, though small when compared to a brand like Nike, was actually large in scale for a startup shoe line. We asked her about Fuchsia’s startup costs, and she said:
When we started, we were 4 partners. And between the 4 of us, we invested $50,000.
To put things into perspective, here are the average startup costs for a small, medium, and large-scale shoe line.
- Small – $30,000
- Medium – $110,000
- Large – $200,000 and up
Remember, you can always start small and scale up as you increase your revenue and streamline your operation.
5. Create Your Brand
Once you determine your market and niche, it’s time to create your brand. Your brand differs from your product because it is the means by which people identify your product.
For example, when you see a “Swoosh” on a pair of shoes, you know they were made by Nike.
What Makes Up a Brand?
There are many elements to consider when creating your brand, but here’s a short list:
- Logo
- Colors
- Font and Typography
- Web Design
- Story
Branding Resources
Remember that your brand should be distinct, memorable, scalable, and easy to apply. It’s not a simple task, but neither is designing and manufacturing a shoe, as you’ll see in the next steps.
To help you, here are 101 brand-building tools and a great branding resource from the experts at HubSpot.
6. Choose a Business Name
Business names are more important in some industries. The name of your shoe line is the direct connection to your brand.
When choosing a name, consider what you want people to think when they hear it, and think about the following tips.
If you need help to get started, try an A.I.-powered naming service like Namelix or BNG to point you in the right direction.
Avoid a Name That is Hard to Spell
Since you’ll likely engage in an ecommerce business, choose a name that’s easy to spell and find on a web search. Don’t risk losing potential customers because they can’t remember how to spell it correctly.
Don’t Pick a Name that Limits Your Growth
Think big when choosing! You don’t want to limit your growth just because your business name is too narrow.
For example, what if “Nike” had named themselves “Nike Shoe Retailers of Oregon?” It would have limited their potential to grow into an international brand that also markets other apparel.
Secure the .com Domain
Before picking your name, do a thorough internet search and check the availability of the domain name and related spellings. If someone else has already established the name, it may be wise to reconsider.
You can check the domain here and register it with Google, GoDaddy, or Namecheap.
Test it Out
Afshan and her team chose Fuchsia Shoes, and the title of her webpage is “Fuchsia Shoes: Luxury Ballet Flats.”
This works wonderfully with her brand considering people recognize fuchsia as a beautiful color and associate it with a flower that is equal in that respect.
Once you choose your name, talk to others about it to see if it represents your ideal branding.
If you need some help, you can read this article with 12 tips on how to name your business, and be sure to register your name at the federal and state levels.
7. Register Legal Entity
Once you’ve chosen a name, it’s time to register your business for taxes and establish a legal structure.
Before choosing a business structure, do your research and work with an accountant or business attorney to maximize your legal and tax benefits.
Licenses and Permits
Aside from your legal structure, you must also determine whether your business requires specific licenses or permits to operate. No worries! The SBA has a tool you can use to check.
Legal Structures
There isn’t a standard legal structure to start a shoe line. You have five base options to review with your accountant or attorney: Sole Proprietorship, Partnership, Corporation, S Corporation, or Limited Liability Corporation.
The IRS has a great resource to help you better understand these structures.
Limited Liability Corporation (LLC)
Though there’s no standard for a shoe business, you’ll most likely register your business as an LLC. This will allow you to protect and separate your personal assets from your business.
Also, you can pass on profits and losses from your business as personal income without corporate taxes.
However, we cannot stress enough to find a qualified attorney or accountant before choosing your legal structure.
8. Funding Your Shoe Line
Think of funding as a two-step process. First, there is funding to build your team and create initial designs, sketches, and prototypes. Then, you’ll require more funding for manufacturing and larger-scale production and distribution.
How Do I Raise the Money?
As we explained earlier, there are three scale tiers of startup costs to start your own shoe line (small, medium, and large). Your funds to launch can come from a variety of sources:
- Personal funds
- Personal loan from family or friends
- Business investors (Afshan’s path to launch)
The SBA also has loan programs and other funding programs to help small businesses launch.
Another option, if you have good credit, is to use a credit card with an interest-free period to help launch things. Ideally, you’ll make enough money to pay off the card before the interest kicks in.
You can also try crowdfunding, a home equity loan, or a rollover for business funding from your retirement plan (ROBS).
However you obtain your funding, be sure to understand the risks before taking on any debt. If you want to educate yourself further, the SBA has a great course on business financing.
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9. Build Your Team: Sketches & Shoe Designs
If you haven’t already, the next step is to bring your ideas into reality by sketching and designing your shoe line.
You may think, “How can I create my own shoe line if I’m not talented at shoe design?” Don’t worry! It’s not a deal-breaker—you just need to build a team that can help.
When Afshan started her business, she was working for Microsoft as a software engineer.
What inspired me to start a shoe business was… I was traveling across different parts of the world when I was with Microsoft, and I would come across these beautiful, local artisan arts and crafts that I would find and bring back to Seattle.
She took her affinity for local artisan arts and crafts and worked with them directly to create her shoe line. You can also hire local artisans to sketch and design your shoes.
NOVICA and the Unicef Marketplace are good spots to find artisan designers. Look at their products on those sites and reach out to them directly.
However, if you’re short on local talent, there are other options.
Freelance Designers and Software Shoe Designs
There are several freelancing sites on the web with a pool of shoe designers who can help you turn your ideas into reality.
Upwork and Fiverr are two trustworthy sites where you can explain your ideas and negotiate rights and pricing before hire.
If you want to design your own shoes, there are software programs to assist. Shoemaster and Romans CAD are two design options that allow you to create 2D or 3D models you can use for prototyping.
10. Create Prototypes and Analyze Materials
In the beginning, [our investment] was mostly spent on research [and] prototyping.
As Afshan explained, the prototype stage is key to developing your shoe line. You must review your designs and take into account all of the materials that go into creating the shoe.
They must be financially viable for manufacturing, and you may need to alter your design for the shoe to be wearable.
The Mockup Shoe
The first version of the prototype may be a non-wearable “mockup” shoe made with low-quality materials. Create this shoe to get a full visual of the patterns and designs. It helps determine if the shoe is feasible for manufacture.
The Final Sample
Your final sample is a base production shoe and is the launch point for any shoe line.
This is the shoe to bring to manufacturers for evaluation and into pitch meetings for potential investors. You’ll also use your prototypes as the base for your marketing campaigns.
11. Patents and Trademarks
In the shoe line business, it’s important to protect your designs and brand by filing for patents and copyrights with the United States Patent and Trademark Office.
This way, if someone steals your designs or logos and tries to profit from them, you’re legally entitled to payment or royalties.
For filing, you can find an experienced patent and trademark attorney, or the U.S. PTO has all of the information you need for patent and trademark registration on their site.
They also have a search function so you can see if you’re not infringing on someone else’s design before you begin.
Keep Track of Everything
An important note before filing or working with an attorney: During your shoe line development, keep a record of your designs and ideas.
You can use a platform like Evernote (it syncs with multiple devices) or XMind (for professional prototyping) to keep things organized and well-documented.
It’s important to keep your notes as a record of a claim on a patent. When you develop your prototype, photograph it extensively and store the files securely.
12. Manufacturing: How Do You Get a Shoe Made?
With your designs, prototypes, patents, and trademarks in place, it’s time to secure the manufacturing arm of your shoe line.
In our connected world, there are a lot of options. But first, here are some questions to answer before you go to production:
What is the Location of the Manufacturer?
Where you manufacture is a key part of your brand identity. Ever notice how some companies stamp “Made in the USA” in large print on the side of their box?
Be mindful of your choice if you intend to integrate your manufacturing process into your brand.
Also, if you intend to import your shoes from another country, you could face import taxes based on the country of origin. However, sometimes it’s cheaper to import the item and pay the fee than to have it manufactured in the U.S.
Either way, it’s a calculation you must consider when choosing a manufacturer.
Does the Manufacturer Have Minimum Order Requirements?
Most manufacturers require a minimum quantity with each order, and it can cut deeply into your budget if you’re not prepared to make a quick turn on revenue.
Review the requirements from any manufacturer before signing an agreement.
Can Your Manufacturer Handle Growth?
For the last four years, I have been working on building an infrastructure on the supply chain side. We literally started from 200 pairs a month, [and] we are at a point where we can do 1,000 pairs a month.
Like Afshan, you’ll want to start small and should research standard shoe sizes customers typically order.
Ideally, your business will grow, so you want to be sure that your manufacturing arm can handle growth. This is always a work-in-process, but it isn’t fun or profitable to pause due to supply issues.
What’s the Price Point of My Shoe Line?
Pricing is deeply rooted in the amount of funding you have and your brand.
Lower-end brands sell shoes for as low as $20 – $30 per pair because brands work to keep their materials and manufacturing price point low.
However, luxury brands sell at prices starting at $250 and can increase to over $1,000 based on perceived value.
Before choosing a manufacturer, you must review your branding and price point. Then you can match up with a manufacturer who can deliver in your range.
Tech Pack Submission and Manufacturing Resources
With those questions answered, you must create and submit a tech pack. It’s a package that contains all the designs, specifications, and components necessary to turn your prototype into a finished product.
Think of it as a blueprint for your shoe design.
There are thousands of manufacturers in the world to develop your shoe line, but here are a few standouts:
13. Packaging and Distribution
A shoebox says a lot about a brand, and it’s one of the top marketing opportunities in the shoe business.
Top shoe lines deliver shoes in a box that prominently features their label as many people keep and reuse shoeboxes for years. To keep with this industry trend, here is a list of custom shoebox manufacturers:
- The Premium Boxes
- The Custom Printed Boxes
- The Printing Daddy
- Fantastapack
Walking Your Shoes from Point A to Point B
The last element of the fulfillment process is shipping the product safely from your site to the customer.
It’s important to work with various shipping agencies (UPS, FedEx, DNS, USPS) to find the lowest prices to ship your goods. Otherwise, it can cut into your profits.
14. Establish a Marketing and Sales Plan
With your supply chain in place, the last step before opening your shoe line is establishing your marketing and sales plan.
Your marketing strategy is what your business will thrive on. Base it on the extensive market research put into your business plan. Forbes has an excellent resource on developing a marketing strategy.
A sales strategy defines your approach to selling your product. Both plans are essential to revenue generation and should be two of your biggest investments.
If you don’t have experience, consider hiring a marketing and sales consultant through a freelancing site like Upwork.
Digital Marketing & Social Media
Digital marketing means engaging potential customers on digital platforms through email campaigns, newsletters, digital advertising, search engine optimization (SEO), and social media.
The key to digital marketing is that it nets a higher ROI (return on investment) than traditional marketing methods.
Social Media
Your social media presence is essential to your brand and is a great way to engage with your customers.
It’s also the primary method you can use to obtain analytics and figure out better ways to market your product. Interact with your customers via posts and encourage them to post pictures about your shoe line!
Afshan used social media to develop marketing relationships with influencers who are also sustainability advocates.
Through those relationships, she was able to increase her brand’s reach, directly access her target market, and turn her customers into marketers.
Website
If you’re starting an ecommerce-based business like Afshan, then your website is your storefront. That means you need to invest heavily in designing and optimizing your site.
If you’re not good at web design or don’t have experience, there are a lot of resources to help you find a reliable web designer and webmaster to run your site.
However, as an ecommerce business, work with a designer and webmaster with experience setting up and maintaining an ecommerce shopping cart.
Refine Both Strategies and Watch Your Revenue Grow
Fuchsia’s revenue jumped from $150k in 2019, but they’re already at $400k in 2020 and on track to do $1 million by the end of the year.
We asked Afshan what contributed to the large jump in revenue and she said,
I think we got really good at the sales funnels and our marketing and being able to run and scale that marketing with a positive ROI (return on investment).
Conclusion
With these steps, you now know the essentials and have resources on how to start a shoe line.
As we said, analysts expect the shoe industry to grow over the next decade. So get started now to make your presence known and take your place.
To send you off, here’s one final piece of advice from Afshan on how to be successful in the industry:
Coming this far, [it] was having grit. We failed ten times, but the eleventh time it worked. So, it’s about repeating the process, trying out different things, and figuring out what works for you.
Do you have any experience in the shoe or fashion industry? Let us know what you think!
Author
Jake Pool
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Typical business startup costs
We’ve broken down the startup costs into fixed costs and variable costs. We’ll discuss each below.Fixed Costs
Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:
- Office Space (Recurring): This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
- Legal Fees (Upfront): These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
- Software Costs (Upfront and Ongoing): These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
- Equipment Costs (Upfront): This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
- Insurance Costs (Upfront and Ongoing): If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.
Variable Costs
There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:
- Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
- Marketing Costs (Ongoing Costs): The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
- Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
- Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
- Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
- Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
- Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.
How much does it cost to start a business?
I broke down the average costs of starting a business into four different classifications: [su_note note_color="#dbeafc"]- Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
- Average Cost: start a business with the money to cover the first year of organizational expenses.
- High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
- Franchise: business owners who want to buy a franchise.
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
|---|---|---|---|---|
| Office | $0.00 | $1,800.00 | $30,000.00 | $21,600.00 |
| Legal Fee | $500.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $200.00 | $1,000.00 | $135,000.00 | $1,000.00 |
| Equipment | $300.00 | $3,000.00 | $125,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,200.00 | $25,000.00 | $5,400.00 |
| Shipping | $2.99/item | $6.99/item | $500/item | $6.99/item |
| Marketing | $0.00 | $24,000.00 | $1,440,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $300.00 | $2,000.00 | $10,000.00 | $1,500.00 |
| Wages | $0.00 | $0.00 | $200,000.00 | $0.00 |
| Unexpected | $300.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $2,000.00 | $10,000.00 | $89,950.00 |
| Total | $1,600.00 | $48,000.00 | $2,040,000.00 | $162,750.00 |
How much does it cost to start a small business?
According to the Small Business Administration, one out of every four businesses start with less than $5,000, and over half of small businesses have startup costs of under $25,000. But the median is just over $24,000, and the weighted average would be between $72,000 and $276,000. [su_table responsive="yes" alternate="no" fixed="yes"]| Small Business Start Up Cost Analysis | ||||||
| Low | High | Midpoint | Percent | Low Weighted Average | Midpoint Weighted Average | High Weighted Average |
| $0.00 | $4,999.00 | $2,499.50 | 24.10% | $0.00 | $602.38 | $1,204.76 |
| $5,000.00 | $9,999.00 | $7,499.50 | 11.70% | $585.00 | $877.44 | $1,169.88 |
| $10,000.00 | $24,999.00 | $17,499.50 | 15.10% | $1,510.00 | $2,642.42 | $3,774.85 |
| $25,000.00 | $49,999.00 | $37,499.50 | 12.00% | $3,000.00 | $4,499.94 | $5,999.88 |
| $50,000.00 | $99,999.00 | $74,999.50 | 12.80% | $6,400.00 | $9,599.94 | $12,799.87 |
| $100,000.00 | $249,999.00 | $174,999.50 | 12.80% | $12,800.00 | $22,399.94 | $31,999.87 |
| $250,000.00 | $999,999.00 | $624,999.50 | 8.90% | $22,250.00 | $55,624.96 | $88,999.91 |
| $1,000,000 | $5,000,000.00 | $1,000,000.00 | 2.60% | $26,000 | $26,000.00 | $130,000.00 |
| Source: ABS | Total | $72,545.00 | $122,247.01 | $275,949.03 | ||
How much does it cost to start an online business?
Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:
- E-commerce stores
- Graphic design
- Blogging
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- Software developers
- And more
How much does it cost to start a t-shirt business?
T-shirt companies are fairly easy to start. For example, you can start with a $30 Shopify, some design software, and a print-on-demand provider. If you really want to make money on it, you have to get good at SEO and marketing, which will increase your costs. [su_table responsive="yes" alternate="no" fixed="yes"]| T-Shirt Business Startup for Revenue of $350,000 per Year | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office (Homebased) | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $50.00 | $6,000.00 | $30,000.00 |
| Equipment (Print-on-Demand (POD) + Dropshipping) | $0.00 | $0.00 | $0.00 |
| Insurance (Optional) | $0.00 | $1,000 | $5,000.00 |
| Shipping | $5.99/item | $59,900.00 | $299,500.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $200,000.00 | $1,000,000.00 |
| Supplies (Optional) | $0.00 | $0.00 | $0.00 |
| Wages (POD built into material costs) | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $70.00 | $292,900.00 | $1,464,500.00 |
| Content | Throwback NW | Urbanity | Big Frog |
How much does it cost to start a landscaping business?
We’ve interviewed multiple business owners who have started landscaping companies. It’s one of the easiest types of businesses to start. You can even start a business for as little as $300. The table below shows the breakdown of the business expenses a small business owner should expect when starting a landscaping business. [su_table responsive="yes" alternate="no" fixed="yes"]| Landscaping Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office Space | $0.00 | $1,800.00 | $9,000.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $25,400.00 | $127,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,800.00 | $9,000.00 | $5,400.00 |
| Shipping | $0.00 | $0.00 | ||
| Marketing Costs | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $1,500.00 |
| Wages | $0.00 | $60,000.00 | $300,000.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $15,000.00 | $75,000.00 | $15,000.00 |
| Total | $300.00 | $146,000.00 | $730,000.00 | $66,200.00 |
| YouTube Video | Plan-It Vision | Augusta Lawn Care Franchise | Augusta Lawn Care | |
How much does it cost to start an eyelash business?
An eyelash business is one of the most commonly searched small businesses. To get started, you may need to go to cosmetology school. Many states require school, but some do not. If you haven’t already gone to cosmetology school, starting a small business will cost more than $20,000. Most eyelash small businesses run as a combination of brick and mortar business and traveling to their client’s location. We’ve provided you with estimates of how much to expect startup expenses to cost based on the assumption you haven’t already gone to cosmetology school. [su_table responsive="yes" alternate="no" fixed="yes"]| Eyelash Business Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office | $0.00 | $7,800.00 | $39,000.00 | $100,000.00 |
| Legal Fee | $2,000.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $300.00 | $1,500.00 | $300.00 |
| Insurance | $1,200.00 | $1,200.00 | $6,000.00 | $1,200.00 |
| Shipping | $0.00 | $0.00 | $0.00 | |
| Marketing | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $50.00 | $8,000.00 | $40,000.00 | $8,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $4,000.00 |
| Wages (assuming no employees) | $0.00 | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 | $0.00 |
| Other | $20,000.00 | $30,000.00 | $70,000.00 | $55,000.00 |
| Total | $23,550.00 | $78,300.00 | $311,500.00 | $197,000.00 |
| Schools and Franchise Opportunity | Cosmetology School | Lash Bar Franchise | ||
How much does it cost to start a cleaning business?
Cleaning businesses are great for startups. You can even start your own business for as low as $300 if you just buy the cleaning supplies. Almost all the costs are variable expenses. However, you should get the business license and the insurance as soon as possible if you decide to get them after you get started. The ultra low cost way assumes you rent any equipment after booking a job that needs equipment. [su_table responsive="yes" alternate="no" fixed="yes"]| Cleaning Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Chris Now) | |
| Office | $0.00 | $3,000.00 | $9,000.00 |
| Legal Fee | $0.00 | $2,000.00 | $13,200.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $4,000.00 | $20,000.00 |
| Insurance | $0.00 | $1,200.00 | $112,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $700.00 | $24,000.00 | $50,550.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $300.00 | $15,600.00 | $56,544.00 |
| Wages | $0.00 | $0.00 | $565,448.00 |
| Unexpected | $0.00 | $10,000.00 | $10,000.00 |
| Other | $0.00 | $0.00 | $132,000.00 |
| Total | $1,000.00 | $62,200.00 | $980,742.00 |
| YouTube Videos | Spruce Clean | South Sound Janitorial | Queen Bee Cleaning Service |
How much does it cost to start a jewelry business?
Many people enjoy doing arts and crafts like making jewelry. You can start a business out of this fun hobby for less than $100 and build your business as you grow. Premade findings are typically more economical, but creativity is often the joy of this type of business owner, so you might want to make your own pieces. If you are trying to make gold and silver jewelry, you can expect the cost to be much higher. A troy ounce of gold varies based on market conditions, but has been between $1,000 and $2,000 over the last 15 years. It will only make about five to 16 rings, and you still have to have the tools to melt it.How much does it cost to start a storage unit business?
The answer to this isn’t particularly clear cut. If you are wanting to buy storage units that are selling people’s stuff to recoup the costs, you should plan to bring at least $500 to the auction. Then, hope you find a gem and recoup your investment. If you are talking about building storage units and renting them out, you’ll need to:- Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
- Build storage space for $25 to $45 per square foot.
- Run the property for $2 to $4 per square foot of operating expenses.
How much does it cost to start a food truck business?
You might be able to start a food truck for as low as $10K, but I’d expect to spend more like $20K to get started. You’ll probably need around $156K to make it through the first year and around $670,000 to make it through the first five years. If you figure out a winning recipe, it can lead to a million dollar business, though. [su_table responsive="yes" alternate="no" fixed="yes"]| Food Truck Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $6,000.00 | $30,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $8,700.00 | $27,200.00 | $27,200.00 |
| Insurance | $2,000.00 | $24,000.00 | $120,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $3,000.00 | $36,000.00 | $180,000.00 |
| Material | $1,000.00 | $12,000.00 | $60,000.00 |
| Supplies | $2,000.00 | $24,000.00 | $120,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $2,000.00 | $24,000.00 | $120,000.00 |
| Total | $20,700.00 | $155,600.00 | $669,200.00 |
| Content | Food Truck Blog | Vet Chef | Abyla Grill |
How much does it cost to start a dropshipping business?
The cost of starting a dropshipping business can vary dramatically because you may have to design a product and purchase inventory. If you are using print-on-demand with dropshipping, it is often fairly cheap. Expect to spend at least $80 getting started, but if you are sourcing materials and manufacturing, it could be more than $30,000 to make your products. Through the course of a year, you might spend up to $180,000. [su_table responsive="yes" alternate="no" fixed="yes"]| Dropshipping Business Startup Costs | |||
| Low (Just Startup for Print-on-Demand) | Average (Design a custom product, manufacture it, and sell for a year.) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $50.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $0.00 | $0.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $5.99 | $6,000.00 | $30,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $140,000.00 | $700,000.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $75.99 | $177,600.00 | $888,000.00 |
| Content | Shed Defender Blog | Shed Defender YouTube | Beard Head |
How much does it cost to start a candle business?
You can start a candle business for less than $200. The materials and a Shopify account are all you need to get started. The numbers below are from our interview with Jazmin who started the company in 2020 and is making more than $150K per year. [su_table responsive="yes" alternate="no" fixed="yes"]| Candle Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $30.00 | $1,000.00 | $5,000.00 |
| Equipment | $0.00 | ||
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $24,000.00 | $120,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $10,000.00 | $50,000.00 | |
| Supplies | $80.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $0.00 | $0.00 | |
| Total | $110.00 | $68,200.00 | $341,000.00 |
| Content | BLK Sunflower Blog | BLK Sunflower YouTube | BLK Sunflower |
How much does it cost to start a towing business?
A towing business can be started for under $10,000. It has special licensing requirements that raise the cost and most people don’t own a tow truck. You can typically make around $100,000 per truck––if you do it right. [su_table responsive="yes" alternate="no" fixed="yes"]| Towing Business Startup Costs | |||
| Low (Just Startup) | Average (3 Trucks) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $25,000.00 | $125,000.00 |
| Insurance | $1,000.00 | $12,000.00 | $60,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $109,500.00 | $547,500.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $100.00 | $10,000.00 | $50,000.00 |
| Total | $9,400.00 | $193,600.00 | $968,000.00 |
| Content | K.O. Towing Blog | K.O. Towing YouTube | Sant Lines LLC Podcast |
How much does it cost to start a painting business?
You should expect to spend $5,000+ to start a painting business because you’ll need a contractor’s license in most states to start a painting business. Contractors’ licenses have financial requirements that make them more expensive. States may require:- Background checks
- Surety bonds
- Multiple years of experience
- Licensing exams
| Painting Business Startup Costs | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $4,000.00 | $4,000.00 | $20,000.00 |
| Software | $100.00 | $6,000.00 | $30,000.00 |
| Equipment | $300.00 | $5,000.00 | $25,000.00 |
| Insurance | $1,000.00 | $2,000.00 | $10,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $10,000.00 | $50,000.00 |
| Supplies | $100.00 | $500.00 | $2,500.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $0.00 | $0.00 |
| Total | $5,600.00 | $52,500.00 | $262,500.00 |
How much does it cost to start a detailing business?
You can start a mobile detailing business for as little as $300, but you should probably expect the annual costs to approach $53K to really grow. That includes licensing, insurance, a vehicle, upgrading your website, and spending $2K per month on marketing. Check out the breakdown below: [su_table responsive="yes" alternate="no" fixed="yes"]| Detailing Business Startup Costs | |||
| Low (Mobile with Car to Get Started) | Average (Mobile, Vehicle Purchase and 1 Year Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $5,000.00 | $25,000.00 |
| Equipment | $200.00 | $6,000.00 | $30,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $10,000.00 | $50,000.00 |
| Total | $300.00 | $53,400.00 | $267,000.00 |
| Content | Attention 2 Detail Blog | Attention 2 Detail YouTube | Slide In Mobile Detailing |
How much does it cost to start a trucking business?
Trucking businesses will normally cost around $10,000 to start in-state or $20,000 for interstate operations, but you can expect to spend $100K to $250K per year to run a trucking business. Make sure the truck you buy is less than 10 years old because most companies require a newer vehicle when hiring you to haul their products. [su_table responsive="yes" alternate="no" fixed="yes"]| Trucking Business Startup Costs, Making $10K per Week | |||
| Low (Just Startup) | Average (1 Truck, 1 Year) | High (1 Truck, 5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $3,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $41,500.00 | $41,500.00 |
| Insurance | $4,500.00 | $20,000.00 | $100,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $5,000.00 | $250,000.00 | $1,250,000.00 |
| Total | $18,800.00 | $348,600.00 | $1,577,000.00 |
| Content | Attention 2 Detail | K.O. Towing YouTube | Sant Lines LLC podcast |
How much does it cost to start a taxi business?
Taxis are a dying business in most places. The business structure is antiquated. You have to register with your city’s transit authority, hire dispatch, and buy a bunch of taxis. We’ve provided an estimate for starting with five taxis running 24 hours a day. If you already have a car, you can start driving for Uber or Lyft. All you have to do is get a business license, pass a background check, and have a current car inspection. You can run a successful business fairly easily. The startup costs for this kind of business is around $300. [su_table responsive="yes" alternate="no" fixed="yes"]| Taxi Business Startup Costs | |||
| Low (Lyft or Uber) | Average (Taxi with Dispatch and 5 Vehicles) | High (Taxi, 5 Years) | |
| Space | $0.00 | $700,000.00 | $875,000.00 |
| Legal Fee | $300.00 | $4,500.00 | $22,500.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $225,000.00 |
| Insurance | $0.00 | $40,000.00 | $200,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | |
| Wages | $0.00 | $438,000.00 | $2,190,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $50.00 | $116,343.75 | $581,718.75 |
| Total | $350.00 | $1,390,843.75 | $4,329,218.75 |
How much does it cost to start a laundromat business?
Starting a laundromat can cost nearly $1 million to get started and about twice that over the first five years. The building, equipment, and utilities are most of the cost. [su_table responsive="yes" alternate="no" fixed="yes"]| Laundry Business Startup | |||
| Low (Go to people's homes and do their laundry for them.) | Average (Laundromat, 1 Year Expenses) | High (Laundromat, 5 Years) | |
| Space | $0.00 | $700,000.00 | $1,100,000.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $45,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $100.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $62,400.00 | $312,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $0.00 | $200,000.00 | $200,000.00 |
| Total | $100.00 | $1,061,800.00 | $1,929,000.00 |
| Content | Laundromat Blog | Ferndale Laundry YouTube | Rosie Wash Express |
How much does it cost to start a photography business?
You can start a photography business for as little as $500, which includes the price of the camera, a website, online photo gallery, and Adobe Photography Suite. If you want to upgrade to a higher end business with better equipment and a good marketing budget, you should expect to spend around $45,000 the first year. It’s even higher if you want a good studio, however. [su_table responsive="yes" alternate="no" fixed="yes"]| Photography Business Startup | |||
| Low (Low End Camera) | Average (High End Camera, Full Year Expenses, Full Licensing and LLC) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $100.00 | $2,000.00 | $10,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $0.00 | $1,000.00 | $5,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $3,000.00 | $15,000.00 |
| Other | $50.00 | $0.00 | $0.00 |
| Total | $650.00 | $44,000.00 | $185,000.00 |
| Content | UpFlip Photography Blog | Mile High Productions Video Pt. 1 | Mile High Productions Video Pt. 2 |
How much does it cost to start a handyman business?
Most places require handymen to be licensed contractors, so you can get started for as low as $2,750 without risking violating laws, but you can expect to spend around $40,000 during the first year if you really want to do it right. [su_table responsive="yes" alternate="no" fixed="yes"]| Handyman Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $1,000.00 | $1,000.00 | $5,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $1,000.00 | $2,400.00 | $12,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $7,200.00 | $36,000.00 |
| Material | $200.00 | $12,500.00 | $62,500.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $50.00 | $1,800.00 | $9,000.00 |
| Total | $2,750.00 | $40,300.00 | $166,500.00 |
| Content | North Seattle Handyman Blog | North Seattle Handyman Youtube | Modern Realty Uses Similar Skills Investing in Real Estate |
How much does it cost to start a soap business?
Soap businesses are fairly inexpensive to start. You could start making soap for under $100 and build from there. Successful business owners will spend nearly $70K in their first year of business to make around $200K. Check out the TruIC blog for the steps to start a soap business.Small Business Owners Funding Resources
Now that you know the costs associated with starting a business, check out some of our resources for finding funding.- Business Credit: Check out our preferred lending partners to get small business loans or a business credit card.
- Business Hub: Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub.
- Small Business Administration: Get information from the SBA on grants, loans, and local business resources.
- Evaluate Funding Options: Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog.
What Type of Business Will You Start?
We’ve covered the typical expenses associated with the costs of starting a business. Now it’s time to examine your personal expenses and cash flow to cover the filing fee and other business costs. Make sure to follow our YouTube channel and blog for more great information on how to start a business. Which business do you think is a worthwhile investment? How will you manage the financial implications of starting a new business?
Did you know there are at least 55 types of cleaning services? When I began researching this topic, I had no idea how many cleaning business ideas I would find. It has been an unexpected adventure!
We’ve covered all the businesses you’d expect like home cleaning, commercial cleaning, power washing, laundromats, and car washes. Then, some are totally surprising like laser cleaning, hoarder cleanups, and sports facility cleaning. If you have a passion, there’s probably a cleaning job that focuses on it.
We’ll cover them all. Plus, we’ll provide you with a list of all the NAICS codes that involve cleaning, and a ton of resources to help you advance your career and business. Get ready to read one of the most intriguing blogs I have had the opportunity to write. I hope you enjoy it!
There is a growing trend of providing green cleaning across all types of cleaning services. Green cleaning is focused on using:
House cleaners provide services to residential properties. Businesses offering house cleaning services may also offer a:
A cleaning service business might also want to offer cleaning for vacation rentals hosted on Airbnb and Vrbo. This service is virtually identical to a house cleaning business, but benefits from:
Apartment complexes are major clients for this type of cleaning business, but you can also offer move-out house cleaning to homeowners and renters when they move out. Like the move-in cleaning, this cleaning business would offer the same services as a deep cleaning service.
Traditionally, maids were responsible for keeping the house clean regularly. A cleaning company that offers a maid service will normally provide their services to the same customer or customers frequently. They will normally provide other cleaning services like:
Duct cleaning is focused on improving indoor air quality. The cleaning jobs require special cleaning supplies, training, and equipment. This is mostly a service sold for residential cleaning, but commercial buildings need it sometimes, too. If you want to offer this service, I strongly suggest you get hands-on training from NADCA. Without it, you can cause damage to customers’ heating and cooling systems.
If you run a duct cleaning company, you might also want to consider offering coil cleaning services. HVAC coils require special products to clean surfaces because aluminum and copper corrode easily. Don’t get the idea to use a power washer while cleaning coils because it will bend the fins and reduce the usefulness of the HVAC equipment.
Keep reading for more types of cleaning services you can offer to clients.
Upholstery cleaning is focused on furniture cleaning. Most furniture needs periodic cleaning, but customers expect a skilled technician when they need it cleaned. The best cleaning service will be the one that understands how to work on materials like:
While searching for the most prolific writer on leather cleaning, I discovered Tips Bulletin, by Joan Clark. She’s written over 80 blogs about leather cleaning and is also one of the top 20 writers about cleaning according to Ahrefs.
Leather cleaning services help care for furniture, leather clothing, car interiors, and more. If you have a passion for leather, consider specializing in leather cleaning and restoration.
Cleaning a house packed full of items that a person couldn’t bear to get rid of is one of the most challenging cleaning jobs a company can take. It involves going through everything, eliminating as much as possible, and hauling away the junk. Then, you can begin cleaning and decontaminating the space. The cleaning service description will need to be detailed. The good news is it can lead to a huge payday.
According to Palmetto Commercial Services pricing for a 1,000 square foot space includes:
Sanitization is a step above standard cleaning services. It is the process of reducing a virus or bacteria to a safe level within a space. If you offer this cleaning service, you are most likely using a combination of sanitizer and disinfectant from the EPA’s List N Tool. Use the disinfectant finder to identify approved products.
Cleaning companies can perform this task. Green Orchard Group recommends the following training to properly perform this work:
If mold develops in a home or business, they need someone to help remove it. Cleaning companies can perform mold remediation, but the people working on it should be properly trained. Check out the EPA’s mold home page for more information about how to test and treat mold.
Haul off people’s trash, appliances, and other items that garbage collectors won’t collect. If you offer this service, you can also make money by breaking down electronics and recycling them by the type of metal. It effectively gives you multiple streams of revenue from one service.
Cleaning residential and commercial pools can be a great service to offer. You get to spend time outside, and the pool cleaning market is highly fractionalized. IBIS World considers the pool cleaning industry to be without market leaders. That means someone who does a great job and is looking to grow could do so easily.
Most large commercial buildings need a janitorial team and prefer to outsource the work. Offering janitorial services requires a larger team of cleaners working with the same client daily. If you get clients like this, you can negotiate a storage closet for your equipment because your employees will be there daily. Storing equipment on site will reduce the number of company vehicles you need compared to mobile cleaners with weekly clients.
Cleaning up crime scenes is often contracted out to independent companies. It’s hard to find exact data on this segment, but forensic evidence collection and cleaning services are available. Less than 100 businesses are competing for crime scene forensic cleanups according to IBIS World Report OD4174. They split $815 million in revenue and $74.2 net income. That means the average company in this service makes nearly $750 thousand in profit annually.
Public schools spend nearly $64 billion on operations and maintenance yearly. Only a portion of that is for cleaning services, but an energy.gov study found that cleaning can save $350K in energy costs per school. Just search “cleaning” in the report to read about the cleaning services that helped the most. Make sure to include them in your bids.
Stadiums and coliseums have unique needs that many places don’t. Cleaning them means cleaning:
During new construction and building renovations, piles of debris and contaminants will harm breathing. Construction cleanup crews do the cleaning tasks and waste removal for construction sites. If you already work with contaminated spaces, you might consider offering a post-construction cleaning service.
Rice and other foods must be cleaned after they are grown. Businesses that clean and polish rice are listed under NAICS code 311212. This is a separate business from most cleaning services. There is no overlap.
These businesses are starting to become more profitable. Most charge monthly memberships with multiple levels of service. It helps them increase lifetime customer values. You can have automated services or mobile car washing. Either way, it can be highly profitable.
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NAICS Cleaning codes
How many types of cleaning are there?
There are at least 55 different types of cleaning services that businesses can offer. Many are specialized cleaning types that you wouldn’t offer if you provide home cleaning services. The following sections share information on the type of cleaning services to offer.1. Green cleaning services
There is a growing trend of providing green cleaning across all types of cleaning services. Green cleaning is focused on using:
- Environmentally friendly cleaning solution(s)
- Eco-friendly cleaning practices
- Reusable cleaning supplies (cloths instead of paper towels)
- Green Seal’s Environmental Standard for Commercial Cleaning Services (GS-42)
- Cleaning Industry Management Standard for Green Buildings (CIMS-GB)
- 34% lower CO2 emissions
- 25% less energy consumption
- 11% less water consumption
- 80 million tons of waste diverted from landfills.
2. House cleaning services
House cleaners provide services to residential properties. Businesses offering house cleaning services may also offer a:
- Deep cleaning service
- Airbnb cleaning service
- Move-in and move-out cleaning service
- Apartment cleaning service
- Carpet cleaning service
- Window cleaning service
- Maid service
3. Deep cleaning services
A deep cleaning service focuses on basic cleaning services and more detailed tasks that don’t have to be done as frequently. A deep clean will normally include:- Cleaning windows, frames, curtains, and blinds
- Washing garbage bins
- Replacing air filters and noting the date you changed it
- Clean baseboards
- Washing door frames and knobs
- Wiping light switches
- Testing fire alarms and carbon monoxide detectors
- Clearing out clutter
- Carpet cleaning
- Standard house cleaning services like
- Dusting
- Sweeping
- Mopping
4. Airbnb cleaning services
A cleaning service business might also want to offer cleaning for vacation rentals hosted on Airbnb and Vrbo. This service is virtually identical to a house cleaning business, but benefits from:
- Higher rates than residential cleaning
- More frequent cleaning schedules than residential cleaning
- Additional revenue streams through cohosting
5. Move-in cleaning services
These cleaning businesses focus on cleaning houses and apartments before the tenant or owner moves in. The previous owners will normally clean the property when they move out, but it’s still beneficial to get a house cleaned before moving in. People love moving into a clean home. This professional cleaning service will be identical to a deep clean, but there is less stuff in the way so you can perform a better cleaning job. Keep reading for more types of cleaning services.6. Move-out cleaning services
Apartment complexes are major clients for this type of cleaning business, but you can also offer move-out house cleaning to homeowners and renters when they move out. Like the move-in cleaning, this cleaning business would offer the same services as a deep cleaning service.
7. Apartment cleaning services
These cleaning businesses mostly offer services to apartment complex owners, but they can also offer professional cleaning to tenants. An apartment cleaning service can be a great way for someone without a car to start a business. For instance, within a 1-mile radius, there are over 1,000 apartments in some cities. That creates a great opportunity. For those with cars, cleaning multiple apartments in a complex reduces the cost of gas and increases your profit margins. Keep reading for more types of cleaning services8. Maid services
Traditionally, maids were responsible for keeping the house clean regularly. A cleaning company that offers a maid service will normally provide their services to the same customer or customers frequently. They will normally provide other cleaning services like:
- Doing laundry
- Making beds
- Cleaning up after pets
9. Carpet cleaning services
Cleaning carpets can be offered as a service of residential and commercial cleaning services, but many businesses clean carpets exclusively. This cleaning business can be combined with other types of cleaning like:- Upholstery cleaning tasks
- Odor removal
- Mold remediation
- Janitorial cleaning
10. Business cleaning services
Professional cleaners offer different types of commercial cleaning services for businesses based on commercial properties’ cleaning needs. Commercial businesses need all the same types of cleaning as residential buildings, but there are unique offerings like: [su_note note_color="#dbeafc"]- Office spaces
- Hotel rooms
- Restroom cleaning
- Janitorial services
- Jet washer services
- Medical cleaning
- Hazmat cleaning
- Data center cleaning
11. Curtain cleaning services
A curtain cleaning service specifically focuses on cleaning fabric. This isn’t normally a stand-alone cleaning but is on the cleaning services list for a carpet cleaning or upholstery cleaner. The most basic types of clean curtains can be cleaned in a washer and dryer. Some fabrics may require a dry cleaner or another professional cleaner. Keep reading for different types of cleaning services.12. Duct cleaning services
Duct cleaning is focused on improving indoor air quality. The cleaning jobs require special cleaning supplies, training, and equipment. This is mostly a service sold for residential cleaning, but commercial buildings need it sometimes, too. If you want to offer this service, I strongly suggest you get hands-on training from NADCA. Without it, you can cause damage to customers’ heating and cooling systems.
13. HVAC coil cleaning services
If you run a duct cleaning company, you might also want to consider offering coil cleaning services. HVAC coils require special products to clean surfaces because aluminum and copper corrode easily. Don’t get the idea to use a power washer while cleaning coils because it will bend the fins and reduce the usefulness of the HVAC equipment.
14. Window cleaning services
Window cleaners can make a great living. They use power washing tools outside to make it fast and easy to wash windows. We interviewed Martin Skarra about his window washing business and found out he makes $90K revenue per month and has nearly doubled the revenue since buying it. Find out how in our interview below: [su_youtube url="https://youtu.be/026-JhWv520"]15. Kitchen cleaning services
Commercial cleaning services will offer kitchen cleaning to restaurants and other businesses with kitchens. Commercial kitchens have lots of specialized equipment that needs to be cleaned to maintain a healthy environment. You’ll be cleaning equipment like:- Commercial fryers
- Vent hoods
- Exhaust fans
- Commercial grills
Keep reading for more types of cleaning services you can offer to clients.
16. Spring cleaning services
Consider offering a spring cleaning service to your regular cleaning clients, so they know at least once a year they are getting an extra thorough cleaning job done. A spring clean is like a deep clean, but you may help them eliminate unwanted items that are creating clutter in their homes.17. Wall cleaning services
You might want to offer wall cleaning if you are a cleaning company, smoke remediation expert, or pressure washing business. People who smoke indoors leave a residue all over their walls. Check out the picture below to see how it looks when a smoker takes pictures off their walls. Commercial kitchens, daycares, and industrial structures can also have walls that could use annual scrubbing. In addition, the building exterior can get dirty. Check out the difference between the before and after pictures from NW Softwash.18. Gutter cleaning services
Gutter cleaning is another service that a pressure washing company should consider offering. Gutters are crucial to protecting the roof, yard, and surrounding areas when it rains. If they are clogged, you’ll eventually see signs of damage. Check out our interview with Stephen from NW Softwash Below: [su_youtube url="https://youtu.be/H99wDmpnE_g"] If you're interested in starting a pressure washing business, check out the complete guide.19. Medical cleaning services
The healthcare environment is unique and has special cleaning needs. You will probably want to get common OSHA certifications for healthcare including:- OSHA #7200 – Bloodborne Pathogen Exposure Control (7 hours)
- OSHA #7205 – Health Hazard Awareness (6 hours)
- OSHA #7210 – Pandemic Illness Preparedness (5.5 hours)
20. Office cleaning services
Office spaces are high traffic buildings. Many cleaning businesses provide office cleaning services because they are high-frequency recurring services. These cleaning jobs may function during business operations or after hours on commercial property. Depending on the client, a cleaning services company may need to run background checks on employees.21. Commercial cleaning services
We previously listed business cleaning services, but there is a slight difference between the commercial cleaning services list and business cleaning. Commercial cleaning includes both residential and commercial cleaning services. In other words, Airbnb owners and realtors would be in this category even though they are technically residential cleaning.22. Dry cleaning services
Some materials cannot be washed with water because it destroys the fabric. Cleaning businesses will need to use high-end chemicals to treat the products that require this treatment. This is a specialized field, but you might offer it as an additional service if you run a laundromat, carpet cleaning service, or restoration business.23. Upholstery cleaning services
Upholstery cleaning is focused on furniture cleaning. Most furniture needs periodic cleaning, but customers expect a skilled technician when they need it cleaned. The best cleaning service will be the one that understands how to work on materials like:
- Leather
- Cotton
- Silk
- Wool
- Linen
- Polyester
- Other synthetic materials
24. Leather cleaning services
While searching for the most prolific writer on leather cleaning, I discovered Tips Bulletin, by Joan Clark. She’s written over 80 blogs about leather cleaning and is also one of the top 20 writers about cleaning according to Ahrefs.
Leather cleaning services help care for furniture, leather clothing, car interiors, and more. If you have a passion for leather, consider specializing in leather cleaning and restoration.
25. Hoarder cleaning services
Cleaning a house packed full of items that a person couldn’t bear to get rid of is one of the most challenging cleaning jobs a company can take. It involves going through everything, eliminating as much as possible, and hauling away the junk. Then, you can begin cleaning and decontaminating the space. The cleaning service description will need to be detailed. The good news is it can lead to a huge payday.
According to Palmetto Commercial Services pricing for a 1,000 square foot space includes:
- $50 to $125 per man hour: Deciding what to trash
- $2,250: $50 to $75 per cubic yard (27 cubic feet) for disposing of property
- $750 to $2,500: Cleaning and disinfecting
26. Sanitization services
Sanitization is a step above standard cleaning services. It is the process of reducing a virus or bacteria to a safe level within a space. If you offer this cleaning service, you are most likely using a combination of sanitizer and disinfectant from the EPA’s List N Tool. Use the disinfectant finder to identify approved products.
Cleaning companies can perform this task. Green Orchard Group recommends the following training to properly perform this work:
- Environmental Health & Safety Certification
- Biohazard Cleanup Certification (available at IJCSA)
- Pathogen Decontamination Certification
27. Portable sanitation services
Construction sites, events, and other businesses need porta potties and portable hand washing stations regularly. Some types of cleaning services specifically focus on cleaning and maintaining portable toilets and sinks.28. Mold remediation services
If mold develops in a home or business, they need someone to help remove it. Cleaning companies can perform mold remediation, but the people working on it should be properly trained. Check out the EPA’s mold home page for more information about how to test and treat mold.
29. Smoke remediation services
Cleaning companies can offer smoke remediation services for properties with smoke damage. The Institute of Inspection, Cleaning, and Restoration Certification’s Master Fire and Smoke Restorer track covers what cleaning procedures to use.30. Environmental cleanup services
There are specialized cleaning companies that focus on environmental cleanup and restoration after oil spills. Check the EPA Cleanup Programs for ones in your area and their requirements for contractors.31. Pressure washing services
Pressure washing, power washing, and soft washing are all cleaning services that use a pressurized stream of water to clean the outside of buildings, driveways, and cars. Check out our interview with a pressure washing company below: [su_youtube url="https://youtu.be/RlyA0H5Y4G0"]32. Hazmat cleanup services
Hazard cleaning services work in environments that may expose people to biological or chemical materials that can cause long-term health impacts or even death. If you are going to offer this service, make sure to review the OSHA Hazardous Waste Operations page and get the proper certifications and training.33. Junk removal services
Haul off people’s trash, appliances, and other items that garbage collectors won’t collect. If you offer this service, you can also make money by breaking down electronics and recycling them by the type of metal. It effectively gives you multiple streams of revenue from one service.
34. Laundry services
Housekeepers, laundromats, and dry cleaners should also consider offering laundry services to increase their revenue.35. Pool cleaning services
Cleaning residential and commercial pools can be a great service to offer. You get to spend time outside, and the pool cleaning market is highly fractionalized. IBIS World considers the pool cleaning industry to be without market leaders. That means someone who does a great job and is looking to grow could do so easily.
36. Disaster cleaning services
There are companies with an entire business strategy designed to help clean up after natural disasters like hurricanes and tornadoes. This service can be highly profitable, but you’ll need to be skilled at working with government agencies like FEMA. You’ll probably also need one or more disaster cleanup certifications, but feel free to volunteer to develop some experience.37. Janitorial services
Most large commercial buildings need a janitorial team and prefer to outsource the work. Offering janitorial services requires a larger team of cleaners working with the same client daily. If you get clients like this, you can negotiate a storage closet for your equipment because your employees will be there daily. Storing equipment on site will reduce the number of company vehicles you need compared to mobile cleaners with weekly clients.
38. Car cleaning services
Mobile car detailers, chip repair companies, and interior detailers are all cleaning companies that make a great living. You can start them for a low cost, and there are plenty of opportunities to market your business economically. Learn about how Slide In Mobile Detailing makes over $100K per year from a $500 investment: [su_youtube url="https://youtu.be/OPGT6jXRZ5Y"]39. Boat cleaning services
Powerwashing businesses can offer maritime cleaning if they live near an ocean or lake. Keeping a boat clean offers unique challenges; be sure to study up on the particulars before offering boat cleaning services. The International Detailing Association offers a boat cleaning business certification that provides online exams plus hands-on training.40. Data center cleaning services
Cleaning data centers is a big business with specialized equipment. Stream Data Centers manage data centers for Fortune 500 companies and estimate that major data centers spend $10 million to $25 million per year in expenses. That means a single data center could be a $500K contract for a cleaning company.41. Crime scene cleaning services
Cleaning up crime scenes is often contracted out to independent companies. It’s hard to find exact data on this segment, but forensic evidence collection and cleaning services are available. Less than 100 businesses are competing for crime scene forensic cleanups according to IBIS World Report OD4174. They split $815 million in revenue and $74.2 net income. That means the average company in this service makes nearly $750 thousand in profit annually.
42. Blind cleaning services
Just to be clear, this is cleaning window blinds, but there may be a market for cleaning blind people, too. This could be combined with basic cleaning services, window washing companies, or janitorial services. It’s mostly dusting, but you could also do installs and repainting.43. School cleaning services
Public schools spend nearly $64 billion on operations and maintenance yearly. Only a portion of that is for cleaning services, but an energy.gov study found that cleaning can save $350K in energy costs per school. Just search “cleaning” in the report to read about the cleaning services that helped the most. Make sure to include them in your bids.
44. Restroom cleaning services
This type of service might be combined with a pool cleaning service that works with apartment complexes. If you rent and clean porta potties, you might be able to expand your offerings to clean restrooms in trailers and other buildings. Residential and commercial cleaning should also include this in basic cleaning. Restroom cleaning includes:- Wipe down countertops
- Clean mirrors
- Clean dispensers for toilet paper and paper towels
- Refill paper towels and toilet paper
- Disinfect toilets
- Clean sinks
- Scrub showers
- Vacuum and mop floors
- Clean vacuum
- Take out the trash
45. Sports cleaning services
Stadiums and coliseums have unique needs that many places don’t. Cleaning them means cleaning:
- Sports equipment
- Specialized surfaces like astroturf, polished courts, or ice rinks
- Graffiti removal
- Escalator cleaning
- And anything else that a sports center might need
46. Foreclosure cleaning services
A foreclosed home can be a disaster. People have often left everything behind. If you offer move-out services or work with realtors, you might want to add foreclosure cleaning to your services. You’ll need a box truck or a trailer to haul items and debris, but you can make substantial revenue from what has been left. Alternatively, you can partner with a company like Junk King to handle the removal of the junk. Keep reading for more types of cleaning services.47. Construction cleaning service
During new construction and building renovations, piles of debris and contaminants will harm breathing. Construction cleanup crews do the cleaning tasks and waste removal for construction sites. If you already work with contaminated spaces, you might consider offering a post-construction cleaning service.
48. Street cleaning services
Major roads and freeways need to be cleaned regularly. Street sweepers and snow plows are street cleaning services that can be a business of their own or as a side gig. In Big Rapids, Michigan, practically everyone with a truck supplements their income by cleaning the streets of snow during the winter months.49. Food cleaning services
Rice and other foods must be cleaned after they are grown. Businesses that clean and polish rice are listed under NAICS code 311212. This is a separate business from most cleaning services. There is no overlap.
50. Cleaning services supplies vendor
If you create your own cleaning products, you can also create a supply company. That’s exactly what Austin Miller did when he expanded his local cleaning company to become a nationwide supplier of cleaning products online. He’s even started selling franchises. Check out our interview with him below: [su_youtube url="https://youtu.be/E53eEcGXhSk"]51. Gun cleaning services
I can’t talk much about this service because Google tends to downrank pages that talk about it, but there are well over 100,000 searches for the kits, solvents, and services focused on this cleaning industry.52. Metal descaling services
Have you ever wanted to include lasers in your description of cleaning services? Maybe you should start a metal descaling company. There are over 2,400 searches per month for each of the terms “cleaning laser(s),” “laser cleaning,” and ”laser cleaner.” They mostly involve removing impurities from a metal. I had to YouTube it! [su_youtube url="https://youtu.be/Q8q3DZB_l6M"]53. Chimney sweeping
If you like getting dirty, chimney sweeping might be the cleaning job for you. Chimneys get soot on them when a fire burns. If they aren’t clean, the soot can combust and light the entire property on fire. Cleaning chimneys exposes you to lung irritants, so make sure to wear the appropriate personal protective equipment if you offer chimney sweeping.54. Car washes
These businesses are starting to become more profitable. Most charge monthly memberships with multiple levels of service. It helps them increase lifetime customer values. You can have automated services or mobile car washing. Either way, it can be highly profitable.
55. Masonry cleaning and caulking services
Masonry gets dirty, too. Power washing companies might consider offering these services. Cleaning companies can also clean showers (e.g., public campgrounds, gyms, etc.) and recaulk them. Just make sure you know what you are doing before offering the service.What is usually included in a cleaning service?
A cleaning service normally includes two cleaners and a full house cleaning with: [su_note note_color="#dbeafc"]- Dusting
- Mirror and window washing (interior only)
- Cleaning sinks
- Sanitizing counters
- Cleaning toilets
- Vacuuming
- Mopping floors
What type of business is a cleaning service?
Cleaning businesses are classified by NAICS code. The NAICS code will vary by the type of cleaning business you operate. The most commonly used NAICS cleaning service businesses are:- 561720: Janitorial Services (including residential housekeeping)
- 561740: Carpet and Upholstery Cleaning Services
- 561790: Other Services to Buildings and Dwellings (including pressure washing)
- 811192: Car Washes (mobile car washing, too)
| NAICS Code | NAICS Title | Description from US Census Bureau |
| 115114 | Postharvest Crop Activities (except Cotton Ginning) | Crop harvesting and processing services including cleaning, shelling, curing, grading, cooling, sun drying, fumigating, sorting, and packing. |
| 115210 | Support Activities for Animal Production | Live stock and domestic animal breeding, breed documentation, boarding, herd improvements, (5) livestock spraying, and sheep dipping/shearing. |
| 212114 | Surface Coal Mining | Companies in developing, cleaning, sizing, and screening surface mining of coal. Does not include the actual mining of coal. |
| 213112 | Support Activities for Oil and Gas Operations | Companies providing support services for oil and gas operations including exploration; excavating cellars and slush pits; well surveying; cutting, running, and pulling casings, rods, and tubes; cementing and shooting wells; perforating well casings; chemically treating and acidizing wells; and cleaning out, bailing, and swabbing wells.Does not Include geophysical surveying and mapping, construction, site preparation, and transportation activities. |
| 238140 | Masonry Contractors | Companies in masonry work, bricklaying, stone setting, and other stone work. The work performed may include new work, additions, alterations, maintenance, and repairs.Includes: Bricklaying Block laying Masonry pointing, cleaning, or caulking Marble, granite, and slate, exterior, contractors Concrete block laying Foundation (e.g., brick, block, stone), building, contractors Stucco contractors |
| 238220 | Plumbing, Heating, and Air-Conditioning Contractors | Companies involved in the service, installation, maintenance, cleaning, and repair of heating, ventilation, and air conditioning (HVAC). Includes:Cooling tower installation Duct work (e.g., cooling, dust collection, exhaust, heating, ventilation) installation Lawn and fire sprinkler system installation Mechanical contractors Fireplace, natural gas, installation Commercial, industrial, and scientific refrigeration system installation Furnace installation Building connections and hookups to sewers. |
| 238290 | Other Building Equipment Contractors | Building contractors except electrical, plumbing, heating, cooling, or ventilation equipment. New work, additions, alterations, maintenance, and repairs of building equipment including:Machine rigging Automated and revolving door installation Millwrights Lightning rod installation Boiler and pipe insulation installation Elevator installation Commercial-type door installation Conveyor system installation Commercial or industrial revolving and overhead door installation Dismantling large-scale machinery and equipment Elevator or escalator installation Satellite TV and internet dish installation for homes Built-in vacuum system installation Installation of gas pumps |
| 311212 | Rice Milling | Companies that do any of the following: mill, clean, polish, and package rice. |
| 325612 | Polish and Other Sanitation Goods Manufacturing | Companies producing polish or other cleaning chemicals. |
| 332813 | Electroplating, Plating, Polishing, Anodizing, and Coloring | Companies that perform the following on metal products: electroplating, plating, anodizing, coloring, buffing, polishing, cleaning, and sandblasting metals and metal products for trade work. Companies may also be in this category if they work on metal and other products. |
| 332994 | Small Arms, Ordnance, and Ordnance Accessories Manufacturing | This U.S. industry comprises establishments primarily engaged in manufacturing guns (small arms), other ordnance, and/or ordnance accessories. |
| 333111 | Farm Machinery and Equipment Manufacturing | Companies manufacturing agricultural, farming, turf, and ground care machinery or equipment. Includes planting, harvesting, and commercial grass mowing equipment.Types of machines manufactured in this NAICS code: Combines, harvester-threshers Cotton gins Feed processing equipment for farms Fertilizing machinery for farms Haying machines Milking machines Planting machines for farms Plows for farms Poultry brooders, feeders, and waterers Farm tractors and attachments |
| 333131 | Mining Machinery and Equipment Manufacturing | Companies manufacturing:Underground mining machinery and equipment, such as mining cars, coal breakers, core and rock drills, and coal cutters. Mineral beneficiating machinery and equipment used in surface or underground mines. |
| 333241 | Food Product Machinery Manufacturing | Companies that manufacture machines used in food and beverage manufacturing including: Dairy product machinery and equipment, like ice cream freezers, homogenizers, and pasteurizers Bakery machinery and equipment like bake ovens, dough mixers, and pastry rolling machinesMeat and poultry processing and preparation machinerySlicers, choppers, and mixers |
| 333310 | Commercial and Service Industry Machinery Manufacturing | Companies manufacturing commercial and service industry machinery including:Optical instruments and lenses (except ophthalmic) Photography and photocopying equipment Vending machines Commercial laundry and drycleaning machines Office equipment Car maintenance equipment (except mechanics' handtools) Commercial cooking equipment |
| 334510 | Electromedical and Electrotherapeutic Apparatus Manufacturing | Companies manufacturing:Electromedical and electrotherapeutic devices Magnetic Resonance Imaging (MRIs) equipment Ultrasound equipment Pacemakers Hearing aids Electrocardiographs Electromedical endoscopic equipment |
| 335210 | Small Electrical Appliance Manufacturing | Companies manufacturing:Small electric appliances and electric housewares Household-type fans (except attic fans) Household vacuum cleaners Electric home floor care machines Examples: Residential bath fan manufacturers Home carpet and floor cleaning equipment manufacturers Residential ceiling fan manufacturing Curling irons manufacturing Electric blankets manufacturing Portable electric space heaters manufacturers Electric portable hair dryer manufacturing Household portable cooking appliances (except microwave, convection ovens) manufacturing Portable humidification system manufacturing Electric scissor manufacturing Home ventilation and exhaust fan manufacturing |
| 335999 | All Other Miscellaneous Electrical Equipment and Component Manufacturing | Companies manufacturing industrial and commercial electric apparatus and other equipment. Examples of products include: AC-to-DC and DC-AC converters Uninterruptible power supplies (UPS) Surge suppressors Inverters Appliance cords made from purchased insulated wire Solid-state battery chargers Electric door openers Electric bells Extension cords made from purchased insulated wire Similar equipment for industrial-type and consumer-type equipment. Does not include: Communication and energy wires and cables Relays Generators Lighting equipment Transformers Household appliances Motors Switchgears Industrial control Control systems Batteries Wiring devices Carbon and graphite products |
| 339113 | Surgical Appliance and Supplies Manufacturing | Companies manufacturing surgical appliances and supplies including:Orthopedic devices Prosthetic appliances Surgical dressings Crutches Surgical sutures Personal industrial safety devices (except protective eyewear) Hospital beds Operating room tables. |
| 423810 | Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers | Companies that are wholesale distributors of specialized machinery, equipment, and related parts generally used in construction, mining (except oil well), and logging activities including:Excavation equipment wholesalers Road maintenance and construction equipment wholesalers Forestry equipment wholesalers Scaffolding wholesalers Mining crane wholesalers |
| 423820 | Farm and Garden Machinery and Equipment Merchant Wholesalers | Companies that are wholesale distributors of equipment parts used on farms, gardens, lawns, and agriculture including:Animal feeder wholesalers Lawnmower wholesalers Milking equipment wholesalers Harvesting equipment wholesalers Planting machinery wholesalers |
| 423850 | Service Establishment Equipment and Supplies Merchant Wholesalers | Companies that are wholesale distributors of service company supplies and equipment including:Amusement park equipment wholesalers Beauty supply and equipment wholesalers Car wash supply and equipment wholesalers Drycleaning supply and equipment wholesalers Voting machine wholesalers Janitorial supply and equipment wholesalers Undertakers' supply and equipment wholesalers Upholsterers' supply and equipment wholesalers (excluding fabric) Municipal water treatment equipment wholesalers Does not include supplies and equipment used in: hotels, offices, restaurants, stores, schools, photographic facilities, health and medical facilities, transportation, and construction activities. |
| 424690 | Other Chemical and Allied Products Merchant Wholesalers | Companies focused on the wholesale distribution of chemicals and allied products Including:Acid wholesalers Industrial chemical wholesalers Automotive chemical wholesalers (except grease and lubricating oil) Industrial salt wholesalers Dyestuff wholesalers Rosin wholesalers Explosives wholesalers (except fireworks and ammunition) Turpentine wholesalers Excludes plastics materials, fireworks, paints and varnishes, agricultural and medicinal chemicals, and basic forms or shapes. |
| 488210 | Support Activities for Rail Transportation | Companies providing specialized services for railroad transportation, including servicing, routine repairing (except factory conversion, overhaul, or rebuilding of rolling stock), and maintaining rail cars; loading and unloading rail cars; and operating independent terminals.Cleaning rail cars and tracks |
| 488320 | Marine Cargo Handling | Companies providing port-to-port transportation and other marine cargo handling services (except warehousing).This may involve cleaning. |
| 488490 | Other Support Activities for Road Transportation | Companies providing services (except towing) to road users including:Bridge, tunnel, and highway operations Street cleaners Pilot car services (i.e., wide load warning services) Truck or weighing station operations Driving services, independent (e.g., automobile, truck delivery) |
| 532490 | Other Commercial and Industrial Machinery and Equipment Rental and Leasing | Companies renting and leasing machinery and equipment Companies provide products such as:Manufacturing equipment Metalworking equipment Telecommunications equipment Motion picture and theatrical equipment Service industry machines Furniture for public buildings Automated agricultural equipment Excludes heavy construction, transportation, mining, and forestry machinery and equipment without operators; and office machinery and equipment. |
| 561720 | Janitorial Services | Companies that clean building and transportation spaces and/or windows. Most will fall into this category.Custodial services Maids Service station cleaning and degreasing services Washroom sanitation services Homekeeping services |
| 561740 | Carpet and Upholstery Cleaning Services | Companies that clean and dye used rugs, carpets, and upholstery. |
| 561790 | Other Services to Buildings and Dwellings | Companies providing services to buildings and dwellings including:Building exterior cleaning services (except sandblasting, window cleaning) Pool maintenance and cleaning Chimney sweeping companies Duct cleaning companies Drain cleaning Gutter cleaning services Does not include exterminators, janitorial services, landscapers, or carpet and upholstery cleaning. |
| 562991 | Septic Tank and Related Services | Companies renting, cleaning, or pumping porta potties, septic tanks, and cesspools. |
| 562998 | All Other Miscellaneous Waste Management Services | These companies provide waste management services including:Sewer cleaning and rodding services Beach cleaning and maintenance Catch basin cleaning services storm basin or sewer cleanout services Catch basin cleaning services Commercial or industrial tank cleaning and disposal services This NAICS code does not include: remediation, waste collection, septic tank pumping and related services, waste disposal and treatment, operation of materials recovery facilities, and waste management consulting services. |
| 811192 | Car Washes | These companies clean, wash, and/or wax cars, vans, trucks, and trailers. Some businesses in this section include:Car detailing shops Self-service car washes Mobile car washers and detailers Car washes |
| 811310 | Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance | These companies repair and maintain commercial and industrial machinery and equipment. The services include:Sharpening and installing industrial or commercial machinery saws and blades General and Automotive welding repair services Agricultural equipment repair Industrial heavy machinery and equipment on forklifts, commercial refrigeration, machine tools, construction equipment, mining machinery, and other heavy equipment. |
| 811490 | Other Personal and Household Goods Repair and Maintenance | Companies that repair and service personal or household-type goods without selling new goods normally include:Repair clothing Fix watches Clean and repair jewelry Repair and clean musical instruments Work on bicycles and motorcycles Repair and maintain motorboats, canoes, sailboats, and other recreational boats. This NAICS code does not include home and garden equipment, appliances, furniture, footwear, and leather goods. |
| 812320 | Drycleaning and Laundry Services (except Coin-Operated) | These companies perform one or more of the following: Drycleaning services Laundering services Provide drop-off and pick-up locations for laundry and dry cleaning services Specialty cleaning services for clothing with special cleaning requirements Textile cleaning such as wedding gowns, fur, hats. leather, draperies, suede, and pillows These companies may provide service at customers locations, in a store, or outsource the work. The following categories of laundry services are not in this category: uniform supply companies, coin-and-card-operated laundromats, carpet and upholstery cleaning companies. |
What are the most profitable cleaning services?
All cleaning services can be highly profitable, but the businesses that offer biohazard cleanup and crime scene cleanup tend to get the most government jobs. These jobs tend to be high revenue generating options and have less competition due to the barriers to entry. Check out the Small Business Administration’s resources on government contracting to prepare for high-paying government contracts.Which cleaning services do you offer?
I hope you found this list of cleaning offerings beneficial. There are some that you might not want, but most can be offered by standard home and office cleaning companies. After you've decided what services to offer, you'll want to create a pricing guide. Which cleaning services do you offer? Did you get inspiration for new services?
Want a business that has sky-high earning potential, lets you double your revenue every single year, and might even give you a glorious opportunity to hob-nob with billionaire celebrities?
If so, starting your very own charter business might be just the thing for you.
Dmitry Lyubimov, the owner of UNIQ LA, did just that, with results beyond anything he could ever have dreamed of. That's particularly impressive when you consider that when Dimitry first stepped foot on American soil, he had no job, spoke no English, and didn't have a dime to his name.
Today, he's living his very best life catering to an exclusive boat-loving clientele while raking in truckloads of cash in his charter business. Starting from a single boat, he's expanded his fleet beyond boats to include limos, planes, helicopters, and even mansions.
We were incredibly excited to interview Dmitry to find out how he started his wildly successful boat business empire. He's got a ton of actionable advice to share.
You'll find out how he built his impressive client list, which of his services bring in the most revenue, how he was able to convince a city to construct a dock for him, and so much more. Best of all, we'll go through every step you need to take to start your own highly lucrative charter business, including the best way to charter fishing trips.
Let's dive in and get started!
Before you can start to make your vision of owning your own charter business a glorious reality, you'll need to write a business plan.
This will help you outline your business's ultimate objectives, which will help you accelerate your success. Your business plan should include costs and financial projections.
List all the expenses involved in running a charter boat business. These are things like gas, insurance, boat payment, and maintenance. You should also list the equipment you need, including the boat itself, fishing supplies, and anything else you need to make your business a resounding success.
Also, list how much you'll need to charge per hour to offset those expenses so that you can turn a tidy profit.
You'll want to include the results of market research too. Ask other boat businesses in the area how much they're charging, how much business they're doing, and how much they make with fishing charters.
Once you collect your research, quantify it and make it a part of your plan.
Your business plan should also contain the following elements:
If you're new to the charter boat business, it's a good idea to set up a mentoring partnership with an established company.
With a business mentor by your side, you’ll get the valuable assistance and expert instruction you need to take you from a struggling neophyte to a consummate professional.
Studies have shown that 70% of small business owners who enlist the support of a mentor see their companies survive for at least five years. This is twice as long as those entrepreneurs who forgo mentoring services.
Fantastic mentors will have a lifetime of real-world knowledge and a dizzying array of skills to share with you. Look for one with five or more years of experience in the field.
Your mentor should have a keen awareness that he doesn’t know everything there is to know about his business niche. That’s why, ideally, your mentor will introduce you to his network of experts who will be eager to help you acquire a more comprehensive understanding of running a boat business.
An excellent mentor is also someone who runs his business according to impeccable ethical standards. You don’t want to be tutored by an individual who jettisons his moral standards in pursuit of the almighty buck.
Ask your mentor if he can develop an action plan based on concrete goals. For example, learning the essential skills all successful boat charter business owners must have.
It’s great if you can locate a mentor who has a proven history of pushing his own professional boundaries. This will hopefully inspire you with the confidence to push past your own limits.
Pick your guru’s brains and take advantage of all the knowledge he’s willing to share with you. By doing this, you'll have a leg up when it's time to start your own charter boat business. If you need more guidance on mentorship, read this excellent Forbes article on the subject.
With a charter boat business, you get to unleash your entrepreneurial spirit while simultaneously indulging your passion for sailing the seven seas.
Before you whip yourself up into a business-buying frenzy, you need to first decide what type of clientele you're going to target. Will it be multinational companies that want to conduct corporate meetings smack dab in the middle of the storm-tossed ocean? Or, would you rather cater to families who want to want to enjoy the exquisite thrill of their own private whale-watching trips?
Maybe you'll want to target retirees who want a relaxing, yet fun, deep sea fishing experience.
Here's Dmitry talking about how he chose his clientele:
[su_quote]I started focusing only on luxurious boats, the most expensive ones, and targeting the 5% of people who could afford them.[/su_quote]
You don't have to target as elite a clientele as Dimitry did. However, make sure you deliver a superlative experience for every single one of your charter business customers. Maybe most of your customers will want to go fishing. In that case, you'll want to make sure your boat has things like fishing rails, fish holding tanks, and other angling accouterments.
Understand what your customer's needs are and do everything you can to satisfy them. If you do, you'll create lifelong fans who'll be eager to come back. This is what Dimitry has to say:
[su_quote]My goal is for every client to become a returning client.[/su_quote]
And if you want to watch the interview we filmed with Dimitry, check out part one and part two.
[su_youtube url="https://www.youtube.com/watch?v=6bb2yRUlCkc"]
What you want to do is to create such an insatiable hunger in your customers that they cannot help but return for a second helping.
To create a USP, the first thing you need to do is to determine your customer segments.
This involves figuring out the value your customers receive from your service.
When you do that, you figure out how to align your offerings with what the customer wants rather than what you want them to buy.
Here are a few ways to find out what customers want from you:
Guard your charter boat business name by registering it with your state.
If your entity is a limited liability company, a corporation, or a limited partnership, you'll need to register the business itself. By doing this, you'll automatically register the name of your company.
If you decided to go with a sole proprietorship or general partnership, you don't need to register it with the state. Instead, do it through the county or city where you're located.
If you're a sole proprietor, you can choose to file a "doing business as" (DBA) name. This way, you can use a name for your boat business other than your own legal one.
You can register a DBA with your state or county clerk. For example, if your business is located in Nassau County, New York, you’d contact the county clerk’s office there.
If you need more information on registering your business name, Legal Zoom has a great article on the topic. This video also has some terrific information.
For two or more parties, partnerships are the simplest type of legal structure. There are two frequently used kinds of partnerships: limited partnerships and limited liability partnerships.
With limited partnerships, only one general partner enjoys unlimited liability. All the other partners have limited liability.
For more on the various types of legal structures for your boat charter business, check out the sensational resources at the Small Business Administration (SBA).
You'll want to choose a dock where you can park your charter boat and pick up passengers.
To ensure you'll attract as many clients as possible, select a dock in an area where tourists tend to flock. Locales where the fishing is superb are excellent choices because you can then specialize in doing deep sea fishing trips.
Some ports offer discounted rates if you lease long-term instead of renting month to month. Given you plan to be there long term, you might also want to start a pressure washing business to clean boats during the slow times. That way you can clean your own and others.
Dmitry was lucky enough to have the local municipality build him a dock. Here's the way he tells it:
[su_quote]I started searching online to learn how to get all the licenses. At that point, there were no commercial docks available for pickup. I started calling the county and asking them how to do this. And they said, "There is no way. You cannot do it." I called them for half a year asking them questions, and I said, I couldn't believe it, it's insane. I want to make a legal business and pay taxes, and you guys don't give me the opportunity to do so. And they said, okay, hold on. Maybe we're going to get money and build a commercial dock.[/su_quote]
Hire a qualified and experienced crew and treat them well because a good team can mean the difference between your charter business being a resounding success or a miserable failure.
You also need to assemble a great team to fulfill the other roles in your company. Here's what Dmitry had to say about that:
[su_quote]One good thing about starting a business: the business owner doesn't need to know everything. The business owner needs to find the best person in each segment and then gather them all together. That's how you create a successful business.[/su_quote]
You don't need to understand everything about every single aspect of your charter boat company if you can find qualified people to run each area.
According to a recent survey, 6 out of 10 small businesses don't have a website.
This is a tragedy of Shakespearian proportions. Your website should be the central pillar of your entire marketing strategy. Without one, you're dead in the water.
One excellent way to boost your SEO ranking is by regularly publishing blog articles. Make sure the topics you cover are relevant to your target market and are exceedingly well written because Google rewards sites with high-caliber content by boosting their rankings.
Dmitry has a sleekly designed, consummately professional website that's a perfect reflection of the kinds of luxury boat charter services he offers his upscale clientele. To make sure your website is as jaw-droppingly gorgeous as Dimitry's is, you should have an expert web designer create it for you.
I recommend companies like Caveni Digital Solutions, Lounge Lizard, or Unified Infotech. These three companies are among the best web design firms in the entire country.
This website lists the top 30 sites to learn marketing for free.
Step 1: Write a Business Plan
Before you can start to make your vision of owning your own charter business a glorious reality, you'll need to write a business plan.
This will help you outline your business's ultimate objectives, which will help you accelerate your success. Your business plan should include costs and financial projections.
List all the expenses involved in running a charter boat business. These are things like gas, insurance, boat payment, and maintenance. You should also list the equipment you need, including the boat itself, fishing supplies, and anything else you need to make your business a resounding success.
Also, list how much you'll need to charge per hour to offset those expenses so that you can turn a tidy profit.
You'll want to include the results of market research too. Ask other boat businesses in the area how much they're charging, how much business they're doing, and how much they make with fishing charters.
Once you collect your research, quantify it and make it a part of your plan.
Your business plan should also contain the following elements:
- Sizes and types of boats you plan on leasing or buying
- Destinations
- Preferred clientele
- Services offered (fishing equipment rental shop, parasailing, jet ski rentals, etc.)
- Price of services
- Where you’re going to be docking your boat
- If you need to build a dock
- How you plan to market your business
Step 2: Mentorship
If you're new to the charter boat business, it's a good idea to set up a mentoring partnership with an established company.
With a business mentor by your side, you’ll get the valuable assistance and expert instruction you need to take you from a struggling neophyte to a consummate professional.
Studies have shown that 70% of small business owners who enlist the support of a mentor see their companies survive for at least five years. This is twice as long as those entrepreneurs who forgo mentoring services.
Fantastic mentors will have a lifetime of real-world knowledge and a dizzying array of skills to share with you. Look for one with five or more years of experience in the field.
Your mentor should have a keen awareness that he doesn’t know everything there is to know about his business niche. That’s why, ideally, your mentor will introduce you to his network of experts who will be eager to help you acquire a more comprehensive understanding of running a boat business.
An excellent mentor is also someone who runs his business according to impeccable ethical standards. You don’t want to be tutored by an individual who jettisons his moral standards in pursuit of the almighty buck.
Ask your mentor if he can develop an action plan based on concrete goals. For example, learning the essential skills all successful boat charter business owners must have.
It’s great if you can locate a mentor who has a proven history of pushing his own professional boundaries. This will hopefully inspire you with the confidence to push past your own limits.
Pick your guru’s brains and take advantage of all the knowledge he’s willing to share with you. By doing this, you'll have a leg up when it's time to start your own charter boat business. If you need more guidance on mentorship, read this excellent Forbes article on the subject.
Step 3: Licensing
Before you can head out for the open seas with your first passengers, you're going to have to get licenses for your charter boat business. Your boat captains need to be licensed. You also need to obtain a license for the commercial use of your vessels. There are even licensing requirements for each water jurisdiction you plan on traveling to. These are some of the licensing requirements for charter boats and fishing guides in the state of Washington:- A current copy of the boat’s registration is required when a vessel is being designated on a license.
- An angler permit specifying the maximum number of persons who may fish from the charter boat per trip. Only a person who holds a salmon charter license may hold an angler permit.
- A non-salmon charter license is required if you accept a fee to take a person fishing for shellfish and fish other than salmon or albacore tuna.
- A food fish guide license is required if you accept a fee to take a person fishing for salmon, sturgeon, or other food fish species in freshwater rivers and streams.
Step 4: Target Market
With a charter boat business, you get to unleash your entrepreneurial spirit while simultaneously indulging your passion for sailing the seven seas.
Before you whip yourself up into a business-buying frenzy, you need to first decide what type of clientele you're going to target. Will it be multinational companies that want to conduct corporate meetings smack dab in the middle of the storm-tossed ocean? Or, would you rather cater to families who want to want to enjoy the exquisite thrill of their own private whale-watching trips?
Maybe you'll want to target retirees who want a relaxing, yet fun, deep sea fishing experience.
Here's Dmitry talking about how he chose his clientele:
[su_quote]I started focusing only on luxurious boats, the most expensive ones, and targeting the 5% of people who could afford them.[/su_quote]
You don't have to target as elite a clientele as Dimitry did. However, make sure you deliver a superlative experience for every single one of your charter business customers. Maybe most of your customers will want to go fishing. In that case, you'll want to make sure your boat has things like fishing rails, fish holding tanks, and other angling accouterments.
Understand what your customer's needs are and do everything you can to satisfy them. If you do, you'll create lifelong fans who'll be eager to come back. This is what Dimitry has to say:
[su_quote]My goal is for every client to become a returning client.[/su_quote]
And if you want to watch the interview we filmed with Dimitry, check out part one and part two.
[su_youtube url="https://www.youtube.com/watch?v=6bb2yRUlCkc"]
What you want to do is to create such an insatiable hunger in your customers that they cannot help but return for a second helping.
Step 5: Have a Unique Selling Proposition (USP)
After you decide who you're going to target in your charter boat business, make sure you have a Unique Selling Proposition (USP) that sets your business light-years above the mediocrity of the rest of the competition. A USP is the one benefit that only your company can provide. In an overcrowded market full of cutthroat competition, your USP will be a potent reminder of everything you can do for your customers. There are a mind-bogglingly large number of yacht, cruise ship, and fishing boat charter businesses in the world. Every single one of these vessels claims to be the best. What will be the main selling point that makes you different from everyone else? Find out what that competitive advantage is, and make sure you hammer that point home in all your marketing messages. Here are all the benefits to having a clearly differentiated USP:- EMOTIONAL CONNECTION: An excellent USP imprints itself on the minds of your prospects so when they need the kind of service you provide, they’ll automatically think of you.
- INCREASED REVENUE: If you communicate a strong USP to customers, you'll invariably boost your revenue.
- LOYAL CUSTOMERS: When your USP delivers a compelling value proposition, you won’t only get customers to buy something from you today, but you’ll win them over for life.
How to Create a USP
To create a USP, the first thing you need to do is to determine your customer segments.
This involves figuring out the value your customers receive from your service.
When you do that, you figure out how to align your offerings with what the customer wants rather than what you want them to buy.
Here are a few ways to find out what customers want from you:
- Analyze data from social media marketing campaigns
- Talk directly to your customers
- Talk to your customer service team
Step 6: Name Your Business
Make sure you dream up a creatively clever name for your charter boat business that crystallizes what your company is all about in a few short, eye-catching words. It should capture the imagination of all who speak it, see it, or even think it. To create an out-of-this-world business name, look at your Unique Selling Proposition (USP) and your business plan. Think about your target audience and any market research you might have undertaken. Consider the message you want to convey to the world through your charter boat business name. If you want a real attention-grabbing name, read this Forbes article.Brainstorming
Once you've collected all these raw impressions, it's time to sit down and have a good old-fashioned brainstorming session. Unleash your creativity and go hog wild! Some of your brainstorming sessions can be just you. However, you should do a few with a friend or colleague. Write down all your ideas as fast you can without stopping. That way, you liberate your imagination and free your creative juices.Check for Availability
Before you settle on a charter boat company name, check to make sure it's available. If someone is already using the name, you could be sued if you go ahead and use it anyway. Look through the U.S. Patent and Trademark Office's federal database to see if someone already registered it. You should also do a series of Google searches for your desired business name to ensure there isn't another charter boat company with that same name. You’re going to have to register your domain name. One easy way to do that is to type the domain name you want to use into GoDaddy’s search bar. It’ll immediately tell you if someone else owns it. Name.com is another place to check for domain availability.Register with State Authorities
Guard your charter boat business name by registering it with your state.
If your entity is a limited liability company, a corporation, or a limited partnership, you'll need to register the business itself. By doing this, you'll automatically register the name of your company.
If you decided to go with a sole proprietorship or general partnership, you don't need to register it with the state. Instead, do it through the county or city where you're located.
If you're a sole proprietor, you can choose to file a "doing business as" (DBA) name. This way, you can use a name for your boat business other than your own legal one.
You can register a DBA with your state or county clerk. For example, if your business is located in Nassau County, New York, you’d contact the county clerk’s office there.
If you need more information on registering your business name, Legal Zoom has a great article on the topic. This video also has some terrific information.
Step 7: Choose a Business Structure
Before you can register your charter boat company with your state, you'll need to select a business structure. Select the one that offers the optimal balance between benefits and legal protections. Choose wisely because your business structure isn't only a name. It affects your taxes, the paperwork you need to file, your personal liability, and even your ability to raise cash. Here are two of the most common:Sole Proprietorship
A sole proprietorship is super easy to form and gives you absolute control over your charter boat business. If you're doing business but don't register as any particular type of legal structure, congratulations! You're automatically considered to be a sole proprietorship. With a sole proprietorship, your liabilities and assets aren't separate from your personal liabilities and assets. This means you're personally liable for the debts and obligations of your charter business. It can be challenging to secure funding because banks are hesitant to lend to sole proprietorships.Partnership
For two or more parties, partnerships are the simplest type of legal structure. There are two frequently used kinds of partnerships: limited partnerships and limited liability partnerships.
With limited partnerships, only one general partner enjoys unlimited liability. All the other partners have limited liability.
For more on the various types of legal structures for your boat charter business, check out the sensational resources at the Small Business Administration (SBA).
Step 8: Secure Funding
You probably don't have sufficient funds to bankroll your fledgling charter business. If that's the case, you'll need to secure financing to fund your venture. Getting a boat (or a fleet of them) is going to be one of the most expensive parts of your business. Here are some ways to secure funding:- BOOTSTRAPPING: Bootstrapping refers to scraping together your own financial reserves. This could include accumulated savings, credit cards, and home equity lines.
- FRIENDS AND FAMILY: One of the best sources of startup funding is friends and family. If you have a rich uncle who always wanted you to start your own business, now is the perfect time to see if he’ll loan you the money. He’ll probably give it to you with little-to-no interest.
- CROWDFUNDING: You can try using the internet to raise small amounts of money from a large number of people. This is known as crowdfunding, and it’s the way many companies get funded these days. Try sites such as AngelList or Crowdfunder.
- TAKE OUT A LOAN: You might qualify for a traditional bank loan. An encouraging sign for small business owners is that banks seem to have a renewed interest in helping out small businesses. In addition to your local bank, Bank of America and Wells Fargo are two banks you might want to try.
Ongoing Expenses
You'll also have ongoing expenses to cover. Try to get a line of credit so you can keep your business running until it turns a profit. In addition to the initial purchase and all your everyday business expenses, you have to factor in routine maintenance, emergency maintenance, insurance, berthing fees, licensing, crew salaries, and many other things. Here's Dmitry talking about the costs of a charter boat business: [su_quote]The boat was $80,000. There is a sales tax of 10% on top. There is maintenance. Unexpectedly, I spent over $30,000 just to repair everything that was breaking constantly. Besides that, all the licenses are another few thousand, including preparations for all the inspections. Website is another. You'll spend maybe $3,000 to $8,000 in general for a website. Advertising expenses are another maybe thousand dollars a month. You can rent an office, you can hire employees, but not in the beginning. In the beginning, you can do everything yourself. Stay small. Yes, and you have to know everything, every side of your job yourself. So when you do it the best, you can teach your employees to do it just like you, or even better.[/su_quote] To reiterate, here is Dmitiry’s breakdown of ongoing expenses for his charter boat business that first year: REPAIRS: $30,000 LICENSES: $2,000 WEBSITE: $3,500 ADVERTISING: $12,000Step 9: Docking Your Fleet
You'll want to choose a dock where you can park your charter boat and pick up passengers.
To ensure you'll attract as many clients as possible, select a dock in an area where tourists tend to flock. Locales where the fishing is superb are excellent choices because you can then specialize in doing deep sea fishing trips.
Some ports offer discounted rates if you lease long-term instead of renting month to month. Given you plan to be there long term, you might also want to start a pressure washing business to clean boats during the slow times. That way you can clean your own and others.
Dmitry was lucky enough to have the local municipality build him a dock. Here's the way he tells it:
[su_quote]I started searching online to learn how to get all the licenses. At that point, there were no commercial docks available for pickup. I started calling the county and asking them how to do this. And they said, "There is no way. You cannot do it." I called them for half a year asking them questions, and I said, I couldn't believe it, it's insane. I want to make a legal business and pay taxes, and you guys don't give me the opportunity to do so. And they said, okay, hold on. Maybe we're going to get money and build a commercial dock.[/su_quote]
Renting a Slip
If you’re not as lucky as Dmitry and need to find a dock, DockSearch.com is a fantastic resource that’ll help you get one. You can either purchase or rent a slip, which is docking space for your boat. Try to find one that’s not too expensive so you can save on your ongoing costs. If you’re a member of a yacht club, you’ll enjoy special amenities and privileges. The downside is that membership tends to be astronomical. Public docks are cheaper, but the security isn’t as good. Keep in mind that security for yourself, your customers, and your boat should be one of the most important considerations when starting a charter boat business. Premises that aren’t locked, parking lots without good lighting, and unsafe neighborhoods should be avoided like the plague. Private marinas offer some of the best docking options. Best of all, most of them are pretty safe.Water Traffic
Make sure you assess the water traffic situation in the area where you hope to moor your vessel. That’s because high traffic areas can be significant collision risks. Also, lots of water congestion means it’s going to take longer to set sail. This could screw up your departure times, making for unhappy customers.Step 10: Hire Your Crew
Hire a qualified and experienced crew and treat them well because a good team can mean the difference between your charter business being a resounding success or a miserable failure.
You also need to assemble a great team to fulfill the other roles in your company. Here's what Dmitry had to say about that:
[su_quote]One good thing about starting a business: the business owner doesn't need to know everything. The business owner needs to find the best person in each segment and then gather them all together. That's how you create a successful business.[/su_quote]
You don't need to understand everything about every single aspect of your charter boat company if you can find qualified people to run each area.
Hiring Fishing Charter Employees
If you’re running a fishing charter boat business, you won’t need too many employees. You’ll probably only need a captain, a first mate, and an administrative assistant. On a fishing boat, the captain steers the boat and offers advice on how to catch fish to guests. Find a captain with a pleasing personality so your guests have a great time. He’ll also need extensive boating and fishing experience. The job of a first mate is to assist the captain in piloting the boat and helping guests. An administrative assistant takes reservations and answers customers’ questions. For this, you’ll need a competent multitasker. To find employees, do some networking at local fishing or boating charter clubs. You can also post your job openings on Indeed or Monster.com.Step 11: Insurance
Find out what insurance coverage you need by researching various coverage types, such as property damage and personal injury. Once you do that, set up a meeting with your insurance broker to discuss options. Make sure you're fully covered before accepting any charter boat business. You probably don’t want to get the cheapest boat insurance because this means you might not be fully covered for all possible contingencies. So, even though you saved a buck, you’re putting yourself at significant financial risk. Before you make a final decision, look at what’s covered and what isn’t. Make sure you’re covered for the following things:- Damage to your vessel
- Injury to your guests or employees
- Vandalism
- Accidents
- Theft
- Liability coverage
Step 12: Market Your Business
According to a recent survey, 6 out of 10 small businesses don't have a website.
This is a tragedy of Shakespearian proportions. Your website should be the central pillar of your entire marketing strategy. Without one, you're dead in the water.
One excellent way to boost your SEO ranking is by regularly publishing blog articles. Make sure the topics you cover are relevant to your target market and are exceedingly well written because Google rewards sites with high-caliber content by boosting their rankings.
Dmitry has a sleekly designed, consummately professional website that's a perfect reflection of the kinds of luxury boat charter services he offers his upscale clientele. To make sure your website is as jaw-droppingly gorgeous as Dimitry's is, you should have an expert web designer create it for you.
I recommend companies like Caveni Digital Solutions, Lounge Lizard, or Unified Infotech. These three companies are among the best web design firms in the entire country.
This website lists the top 30 sites to learn marketing for free.
Marketing Channels
Often, the success of a small business comes down to its ability to effectively market its service. That's because it's only through savvy marketing that you can ever hope to enjoy a steady torrent of new customers you can then turn into raving fans. Think of all the marketing channels out there and pick two or three that you think might be a natural fit for your charter boat business. You could take out Facebook ads, put up posters around your dock, or write blog posts. You can try advertising in trade and vacation publications or on television. If you're specializing in deep-sea fishing expeditions, you can advertise in magazines like Sport Fishing. You can also print full-color brochures that your customers can pass on to their friends. One of Dmitry's favorite marketing channels is Google: [su_quote]…Google has all the clients from all over the world, right? International clients as well. The second place will be Yelp, but Yelp has mostly people from the United States.[/su_quote] He also advertises on Facebook and Instagram. For more ideas on how to market your charter boat business, check out this article.Conclusion
If you faithfully adhere to the steps in this article, you can follow in the extremely profitable footsteps of Dimitry. All it takes is lots of perseverance, hard work, and a little money. Which type of charter boat business appeals to you the most—the luxury yacht kind or a fishing expedition company? Let me know in the comments!Comments
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Bernadette@
2021-04-09 09:25:09
Everything was detailed and covered-from planning to launching. I'm also curious though: when do you suggest is a good time to explore/offer other products for start ups? I was thinking that if you have already established your brand in shoes, would you recommend offering bags or clothes next and what adjustments should be made from there?
Em Orata@
2021-01-22 11:15:36
Is it possible for ROI in 6 to 9 months?
Archana@
2020-12-18 21:00:03
This a manual of how to start any business in general. Very well explained. Well I have a question, will brick and mortar sort of business be relevant for an extended time to come? Is it make it a totally online business?
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