How to Start a $133K/Month Lawn Care Business
April 25, 2023
Did you know starting a lawn care business could make you over $100K in your first year?
Mike Andes started Augusta Lawn Care when he was just a teenager, and today he has grown it into one of the top franchising companies in the U.S. In fact, his lawn care business model is so successful that the average Augusta Lawn Care business makes over $37K per month.
We’ll share marketing and business strategies that will help you build a successful lawn service company.
Click on any of the links below to learn about starting a lawn care company, or just read on.
- Step 1. What to Know Before Starting a Lawn Mowing Business
- Step 2. What Type Of Lawn Care Business Is Right For You?
- Step 3. Write a Lawn Care Business Plan
- Step 4. Consider Lawn Care Names
- Step 5. How To Start A Lawn Care Business Legally
- Step 6. Set Up Your Lawn Care Business Finances
- Step 7. Establish Safety Protocols For Lawn Care Services
- Step 8. Get Equipment and Software
- Step 9. Develop a Sales and Marketing Strategy
- Step 10. Hire Employees
- Step 11. A Successful Lawn Care Business Documents Processes
Get ready to learn how to start your own lawn care business.
Step 1. What to Know Before Starting a Lawn Mowing Business
It’s helpful to understand the lawn care industry before entering it. Get ready to learn about lawn mowing.
Learn About The Lawn Care Industry
According to IBIS World, lawn care is part of landscaping under NAIC code 56173. The industry makes over $176.5 billion in revenue and $15.4 billion in profit, or an 8.7% profit margin. In addition there are more than 648,000 businesses with more than one million combined employees.
Is There Money In Lawn Care Business?
Yes. According to Augusta Lawn Care, 93% of their franchises make over $10K in the first 60 days. The average landscaping company also makes nearly $273,000 in revenue per year (but you’ll need some employees to make that much because revenue per employee tends to be around $130K).
When calculating your lawn care business income potential in your business plan (which we’ll cover in detail in a moment), keep the assumptions under $130K per employee. Lenders will question how your lawn care operations make more than that. Be prepared to explain how you expect to make more than the typical business owner when you start a landscaping business.
How Much Do Lawn Mowers Make?
The median wage for a lawn care professional is around $16.55/ hour, or $34.5K per year, according to the Bureau of Labor Statistics. In addition, business owners typically make an additional $11,310 in profit per employee, based on an 8.7% profit.
Mike told us there are really 3 revenue thresholds that are hard to cross:
I don’t care how hard you work. You can’t make more than about $500K by yourself.
Check out our interview with him below.
The other two levels are $250K and $1M in revenue. Find out more about how to exceed those levels later in the article.
How Much Does It Cost To Start A Lawn Care Business?
You can start a lawn mowing business for less than $1,000. Mike told us:
When we started, we started with $1,000 to buy a blower, a weed eater, and a lawn mower.
We also asked him about starting a lawn care business with no money. He had great advice:
If I had zero dollars, I would walk down the street and I would look for the people who need work done that doesn’t need tools. Picking up leaves, picking up debris, and other stuff that we can [do to] make the thousand [to buy] the tools.
Skills For A Lawn Care Business
Starting a lawn care business doesn’t require a lot of skills. You need to understand how to use lawn care equipment like a lawn mower, edger, and weedwacker—but all of these products are fairly easy to use. The most important skills are understanding safety.
IMPORTANT: If you want an in-depth tutorial on how to start a lawn care business, check out Mike’s course. He’ll walk you through setting up everything you need for a new business, including the automations and marketing to get more customers and save money.
In this video, Mike compares his course with buying an Augusta Lawn Care franchise. Watch the overview and learn which is right for you!
Lawn Care Education
Most lawn care businesses don’t require education, but if you’re starting a lawn care design business or offering arborist services, you’ll want to be educated on more than just offering landscaping services like lawn mowing, weed pulling, and tree trimming. You can learn more about plants by studying the native species in your area on sites like:
Not-So-Technical Skills
The key to Mike’s success is how he measures success. He told us:
I went to Africa for 6 weeks when I was younger and saw how happy they were. That taught me to measure success by how happy I am and how happy the people around me are.
He adds value to his lawn care services by:
- Being personable
- Learning customers’ names
- Sharing lawn care tricks with customers
Just showing up and providing quality services is enough to get you further than most lawn care businesses.
Mike told us:
Customers prefer over-communication rather than under-communication.
Does starting a lawn care business sound like something you want to get into? Then keep reading because there are all types of lawn care companies.
Step 2. What Type Of Lawn Care Business Is Right For You?
Lawn care business owners have different options of what services they provide. You might want to consider some of these services as your core business:
- Landscape care and maintenance
- Lawn mowing
- Tree trimming
- Weed pulling
- Arborist services
- Fertilizing lawns
- Landscape installation
- Planting trees and shrubs
- Spraying lawns
- Landscape design
- Turf installation
Invoice Owl has a great blog about these lawn care services and more.
Step 3. Write a Lawn Care Business Plan
You can start a lawn care business from home and make great money, but a lawn care business plan is your roadmap to long-term success.
Business plan sections are pretty standard. Make sure to include:
- Lawn care insurance
- Competitive analysis of lawn care companies in your area
- Lawn care equipment
- Financial projections
- Your serviceable location
- Lawn care business licenses and permits
- Marketing plan
- Strategies to make money
And the best part is that UpFlip’s guide steers you through writing a business plan, including a free template to download. It’s worth your time to check it out. We even discussed business plans with Mike.
Writing the business plan, you’ll do lots of research on how to start lawn care business operations.
Perform Market Research
You can’t talk about how to start a lawn mowing business idea without talking about identifying ideal customers and creating a customer persona.
Mike made it really easy for people to know the target market when you start lawn care business operations. It’s really simple. You need to target:
You can use the census.gov website to narrow down what areas can afford your standard and specialized services.
Step 4. Consider Lawn Care Names
Choosing a business name is an exciting part of starting a lawn care business. Enjoy being creative, but consider the following points:
- Include “lawn care”: You want people to know what you do. Augusta Lawn Care has it right in the name.
- Easy and clear: Potential customers may be put off by a name they struggle to spell or pronounce. Keep it simple.
- Location: Consider including your location to attract customers in your area and establish yourself within the local region.
- Branding: Mike explained how important branding is to a business name. “Augusta” is named after the golf tournament because he wants to allude to the high quality greens where the tournament occurs. He warned about being too particular about that because he used white uniforms like the golf caddies, and that was a big mistake. Check out our interview about branding below.
Make Sure The Business Name Is Available
Run your name through our business name generator, then click on the name to buy it directly from NameCheap. While you’re doing that, check out our guide on creating a website.
Step 5. How To Start A Lawn Care Business Legally
Lawn care services will need to comply with local, state, and federal laws. You’ll need the following:
- Limited Liability Company (or Other Business Structure)
- Business License
- Business Bank Account
- Business Insurance
Keep reading to find out more.
Business Structure
There are several types of business structures you may want to use. You can file for most of them on the Secretary of State website for your state.
- S-Corporation: Best for high-earning companies that want to lower business owner taxes. Limited number of stockholders, provides personal liability protection, requires business owners to receive salary (and optional dividends), no double taxation.
- C-Corporation: Best for companies trying to change the world. Unlimited stockholders, provides personal liability protection, high compliance costs, and double taxation. Business owners can earn money through multiple income streams with different tax codes.
- Limited Liability Company (LLC): Best for companies that want to separate business entities from personal assets. A Limited Liability Company provides limited liability, pass-through income, and no double taxation.
- Sole Proprietorship: Best to just get started. Doesn’t provide liability protection or create a separate business entity, and is considered personal income. Don’t use a sole proprietorship if you hire employees.
To learn more about business formats, check out our blog on 11 business structures.
Get a Lawn Care Business License
You’ll also want to get your business licensed. Some states let you do it all at once.
Lastly, don’t forget to grab an employer identification number from the IRS. It’s like a social security number for your business.
Open A Business Bank Account
Every lawn care business needs to open a business bank account to separate your business and personal finances. Business bank accounts can be either online or from physical banks and credit unions.
Online banks tend to have better offers, but they might not offer the range of business credit card accounts you can open in the legacy banking system. If credit accounts or making cash deposits are important to you, go with the legacy banks. Learn more.
Lawn Care Professionals Need Business Insurance
You’ll want to get lawn care business insurance including:
- General liability insurance
- Property damage insurance
- Workers compensation insurance
- Cyber Security Insurance (since you have people’s credit cards, names, and addresses)
Consider Simply Business to get the most competitive business insurance quotes.
Step 6. Set Up Your Lawn Care Business Finances
Let’s talk numbers. You already have a budget from your business plan, and know what the industry profit margins are. How are you going to get the money for starting lawn care business operations?
Funding
As a new business owner, you’ll need to cover your startup costs. Landscaping businesses have a low barrier to entry with less than $1,000 to get started, but funding is an important step. Try business financing through one of our partners. Other landscaping businesses have started small businesses with:
- Credit cards
- Angel investors
- Crowdfunding
- Business partner(s)
- Grants for starting a lawn care business (Yes, there are some!)
- Home equity loan
- Friends or family
- Personal finance through savings or wages
- Rollover for business startups (ROBS)
For those wondering how to start a lawn care business with no money, Mike offers a work-to-franchise opportunity. Work for an Augusta Lawn Care franchise for 2 years, and you can open your own landscaping business without paying a franchise fee.
Check out his explanation below.
Lawn Care Pricing Chart 2023
Lawn care professionals can charge based on a variety of factors:
- Lawn mowing prices per hour: $25-$65
- Lawn mowing prices per square foot: $.01-$.05
Jobber created a table that has the average cost of lawn care services. Some of the specialty services can run into the thousands.
Create a basic lawn care price sheet after you’ve decided how much to charge. Download our template.
Step 7. Establish Safety Protocols For Lawn Care Services
Occupational Safety and Health Administration (OSHA) created a safety manual for lawn care business owners. It’s a great resource, and it would be wise to use it as a model for your lawn care service.
Step 8. Get Equipment and Software
Equipment and supplies for lawn care businesses vary in price and utility. Let’s look at some of the tools you might need.
Necessary Equipment
The right lawn care equipment will vary based on the services you offer. Most businesses will need:
- Work Vehicle: Mike recommends buying used trucks because lawn care business owners can lose a lot of money on lawn care company vehicles if they buy new. We’ll show you why in the costs section below.
- Small Lawn Care Trailer Setup: Make sure you have a truck or trailer large enough to carry all your equipment. Mike uses Ramprack.
- Lawn Mower: You can choose either a riding lawn mower or a push mower. A riding mower is easier to operate, but a push lawn mower is less expensive. Mike uses Greenworks.
- Blower: You’ll need something for blowing leaves.
- Trash bags: To collect the debris from your push mower.
- Trimming equipment: You’ll need trimmers if you trim bushes.
- Weed eater: Weed eaters and edgers are helpful for those hard to cut areas around fences and curbs.
- Specialty Equipment: Depending on the services you offer, you might need other equipment. As a seasonal business, you might supplement your income by performing jobs like snow removal or Christmas light hanging that require other tools.
For those of you who have never mowed lawns, please learn how to start a lawn mower before taking on jobs. It would be really embarrassing to get to jobs and then your customers review your business online with a review like this:
In addition to the tools to do the job, you’ll also need software to run the business.
For more advice on equipment and setting up a lawncare business, watch this interview with Mike:
Software for Starting a Lawn Care Business
A lawn business will need some software to manage potential and existing customers. You might want to check into some of the providers that Mike uses.
- Service Autopilot: This is customer relationship management (CRM) software specifically for lawn care businesses.
- Clearent: You’ll need a payment processor, and since Clearent is built by the same company as Service Autopilot, they’ll work together seamlessly.
- Quickbooks: You’ll want accounting software. Most business owners go with Quickbooks because almost every software company integrates with them.
Costs
When you start your own lawn care business, you should expect the following costs. These numbers were calculated by using the industry and sector numbers from IBIS World as benchmarks. I assumed there was 1 employee, the business owner.
| Potential Costs For Lawn Care Using Benchmarks From IBIS WORLD | ||
| Low | High | |
| Revenue | $ 130,000.00 | $ 130,000.00 |
| Wages: 20-56% of revenue | $ 26,000.00 | $ 72,800.00 |
| Purchases: 17-38% of revenue | $ 22,100.00 | $ 49,400.00 |
| Marketing (1.2% to 1.9%) | $ 1,560.00 | $ 2,470.00 |
| Depreciation (1.2% to 3.7%) | $ 1,560.00 | $ 4,030.00 |
| Rent (1.5 to 2.3%) | $ 1,950.00 | $ 4,030.00 |
| Utilities (.3% to .4%) | $ 390.00 | $ 520.00 |
| Other Costs (16% to 24.9%) | $ 20,800.00 | $ 32,370.00 |
| Profit (Loss) | $ 55,640.00 | $ (36,400.00) |
As you can see, a lawn business can either have high profit margins or fail to become a profitable business if they fail to control three main expenses:
- Labor: Notice in the example above, the business owner is giving themselves a nearly $73K salary and not leaving any money for the business.
- Purchases: Looks like the business owner in the high model was spending on some extravagant tools, while the low cost model was managing business expenses.
- Other Costs: The other costs could include taxes, interest payments, and more. That’s why many business owners discourage loans.
Step 9. Develop a Sales and Marketing Strategy
You’ll want a sales and marketing strategy when you are pursuing residential or commercial customers for your lawn care company. You’ll want to implement some or all of the following tactics when starting a lawn mower business.
- Create a Lawn Care Business Website
- Use Social Media
- Create Lawn Care Business Ads
- Sign Up With Registries for Local Businesses
- Create a Lawn Mowing Business Card
- Print Lawn Mowing Door Hangers and Mailers
- Ask for Reviews and Referrals
Your sales and marketing strategy will be the foundation for your automation. As Mike told us:
To get to $1 million in sales, you’ll have to automate processes.
Create a Lawn Care Website
We already mentioned creating a website, but make sure to implement search engine optimization to get better results. At UpFlip, we use SurferSEO and Ahrefs. You can also perform a quick test to check how your website is performing.
Use Social Media
Instead of spending time scrolling through social media, make it work for your business! Create social media accounts and share your lawn care service prices, useful information, and information about how to care for lawns. Facebook and Instagram provide free insights for business accounts, plus you can create paid ads.
Use Paid Ads
Mike told us he loves using paid ads on Google and social media platforms. Small business owners should definitely use them. He told us:
Paid ads are amazing because you can turn them on and off to control the flow of leads. When you have a period that looks like it will be low cash flow, turn [the ads] on and you’re making money again.
Register With Local Business Directories
When you’re wondering how to start a mowing business, you might not think about the sites you can register to get reputable backlinks and referrals to your business. You’ll want to list your services on:
- Google Business Profile
- Thumbtack
- NextDoor
- And More!
Check out Hubspot’s list of over 50 business directories.
Get Lawn Mower Business Cards
You’ll want to market your lawn care business and one of the easiest ways to do it is to give a couple business cards to clients so they can give them to their friends. Check out our blog about the best low-cost business cards.
Print Door Hangers and Mailers
Consider creating mailers, brochures, car magnets, flyers, t-shirts, and other promotional swag as a way of getting your name out there. Use an application like Canva to help.
Several business owners we have talked to suggest leaving one on each of your client’s neighbors’ doorknobs or mailing them an offer to do their lawn next time you’re in the neighborhood.
Get Reviews to Feed the Crews
Don’t forget reviews! They’re a cost-effective way to appeal to customers online. Many companies like Housecall Pro automate asking for reviews to make it easy for customers to let people know they loved your service.
Mike emphasized that everything you do has the ability to bring in new customers. Make sure that you’re always doing everything you can to make the experience of working with you a positive one for customers.
Step 10. Hire Employees
Many lawn care entrepreneurs hire lawn care employees for their lawn care company to grow. Mike told us you will run yourself ragged by the time you make $250K if you don’t hire additional lawn care pros. He also explained:
To get to $500K, you need a second crew and admin team. The business owner needs to be full time sales.
Hiring is such a huge subject that I suggest checking out our blog about how to hire employees.
At this point you know how to start a lawn mowing business, but if you want really amazing results, then you’ll need to pay attention to the next step.
Step 11. A Successful Lawn Care Business Documents Processes
Establish good processes that scale easily and that others can follow. You’ll need them to scale your successful lawn care business. Use Lucidchart to document a process map. Mike told us:
At this stage the majority of my time is spent increasing awareness of the business. My team has to run everything so I had to create workflows that would make it easy for them.
Here are the basic steps for documenting a process:
- Decide what process to map.
- Document who performs each task.
- List all steps.
- Identify where you can save time.
- Determine the triggers, inputs, and outputs.
- Create the main path, then map out alternative flows.
- Implement the process.
Are You Ready to Start Your Own Lawn Care Business?
Now you know answers to questions like:
- How to start lawn care business operations
- How much does lawn care cost?
- Do I need a business license for lawn care?
Best of all, you’ve got insights from someone who knows how to do it and is recognized as one of the fastest-growing businesses in the U.S.
How can we help you succeed at your goal to start a successful lawn care company? Let us know in the comments below!
Author
Brandon Boushy
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Did you know that you can start a candle business for less than $100 and grow it into $500K in annual revenue?
Jocelyn and Jen started RXLA as a side hustle making gifts for coworkers, then started going to farmers markets, and eventually opened a candle store and expanded their offerings on their way to bringing in a half-million dollars per year.
We’ll share strategies for how to start a candle business with just a little money, smart marketing, and responsible scaling.
Click on any of the links below to jump to the section that interests you, or just continue reading.
[su_note note_color="#dbeafc"] Click on any of the links below to jump to the section that interests you, or just continue reading.
- Candle Business Case Study: RX Candles Los Angeles
- Candle Industry Summary
- How to Start a Candle Business
- Things to Consider When Starting a Candle Business
- Ideas for a Candle Making Business
- How to Start a Candle Business With No Money
- Open Your Own Candle Business [/su_note]
Candle Business Case Study: RX Candles Los Angeles
Jocelyn started RX Candles in 2013 as a hobby. When the business venture received crowdfunding, she invited Jen to help create soy candles. The candle brand opened a local craft store, but the pandemic caused it to shut down.
They are still recovering from the hit they took from closing the retail store, but increasing their offerings and selling wholesale has helped them reach $500K in annual revenue with 50% gross margins.
Customers loved their homemade candles so much that they asked for other products, services, and ways of buying. As the sisters gained confidence in their products, they realized they needed to listen to their customers and provide the services they—and other potential customers—wanted.
Keep reading to learn more about the candle industry.
Candle Industry Summary
According to Grandview Research, the candle industry was worth approximately $13.6B in 2023 and is expected to reach $20B by 2030.
How much does it cost to start a candle business?
The candle industry has a low barrier to entry. According to Crowdspring, you should expect to spend between $9.5K to $78K to start a candle business, with an average of around $44K. But we’ve interviewed two business owners who say they started candle businesses for $100
A candle maker’s startup costs will vary depending on the cost of living in their location, supply and materials costs, and other factors.
Is candle making a profitable business?
A candle making business can be highly profitable, with gross margins of 50%. Ingredients, packaging, and marketing are some of the primary costs that will impact your profitability.
Can you make money selling candles from home?
Yes, you can start a candle business from home and make decent money, but it may be more cost-effective to utilize a fulfillment center to fulfill your orders. There may be restrictions in your town or homeowners’ association that impact the ability to run a home-based candle business.
Who are the major candle makers?
It’s helpful to research the major players in the candle market because you can identify gaps in the industry and ways to market your own products. The major candle makers include:
- Yankee Candle (Newell Brands)
- Luminex Home Décor & Fragrance
- Bolsius
- MVP Group International, Inc
- Gies
- Talent
- Universal Candle
- Qingdao Kingking Applied Chemistry Co., LTD
- Vollmar
- Empire Candle Co., LLC
- Hyfusin Group Holdings Limited
- Diptyque
- Dandong Everlight Candle Industry Co., Ltd.
- Fushun Pingtian Wax Products Co., Ltd.
While the major players in the industry get most of the revenue, there is always room for new entrants to make a great living selling candles.
How to Start a Candle Business
It helps to have a path of action before you start a candle business. Follow the steps below to start a successful candle making business:
- Learn how to make candles.
- Define your brand.
- Plan your business.
- Secure funding.
- Get business insurance
- Gather supplies.
- Create an online store.
- Market your business.
- Fulfill orders.
Step 1: Learn How to Make Candles
Before you can start selling candles, you need to know how to make them. Jazmin, another successful candlemaker, explained how to accomplish it in our interview. Watch the interview below:
Let’s look at what you’ll need to get started.
Tools and Materials for Candle Making
Good tools and candle making supplies can make the job more fun and more efficient. At a minimum, you’ll need:
- 10 pounds of wax
- Pouring pitcher
- Pot to put the pitcher in to create a double boiler
- Thermometer
- Containers to hold the candles
- Scented fragrances
- Wicks
Jen told us:
[su_quote]Candle brands will want to scale responsibly, which means as the business grows, you’ll want to invest in better tools for efficiency.[/su_quote]
How to Make Candles to Sell
You can start by buying a candle making kit, but as you learn, you’ll want to pick your own wax and essential oils. The candle making process normally follows the steps listed below:
- Fill a larger pot with water and the pouring pitcher with wax flakes.
- Hang the pouring pitcher on the inside of the larger pot to effectively create a double boiler.
- Wait for the wax to melt, which will take 45 minutes to an hour depending on the temperature.
- Pour the wax into candle molds.
- Add scents and wicks.
- Let them dry.
- Package the candles.
Jazmin told us:
[su_quote]When you make candles, only about 20% of the scent will actually be smelled, so you need to be aware of that [when adding scents], otherwise you won’t be able to smell it.[/su_quote]
Step 2: Define Your Candle Making Brand
You’ll want to create a coherent brand for your candle making business. Some of the things you’ll need to consider include:
- Target market: Who will buy your candles? Will you be mass-producing candles or creating a luxury brand image? Identifying your target market makes marketing and branding efforts easier.
- Brand identity: What makes your candles unique? What sets them apart from other products on the market? Your brand identity will include your business name, logo, colors, and physical and digital design. Learn more about candle business names here.
- Brand story: What inspired your candle business and the branding for it? A good story helps you connect with customers and create a more meaningful experience.
- Brand values: What does your candle company hold dear? Think about how you operate your brand and what you want it to tell people. Your values should guide everything you do, including your materials, packaging, and shipping methods.
Creating a brand won’t happen overnight, but after continually telling your story and showing your values.
Step 3: Create a Candle Business Plan
Every business should have a workable plan to help guide decisions. When writing a candle making business plan, you’ll want to include the following:
- Niche: Explain what makes your small candle business different and describe the target audience that your products appeal to.
- Validate your business idea: Explain the research you have performed to establish your candle business will appeal to your target audience. Learn how to validate an idea.
- Business structure: New businesses normally choose a limited liability company or sole proprietorship as their business structure.
- Budget: Estimate your costs to start a candle business and operate it for one to three years. The budget will help you understand how much funding you’ll need until the business can support itself and your lifestyle.
- Business bank account: Open a business bank account to help separate your personal and business expenses. You can also get an Employer Identification Number (EIN) to open a business bank account and access materials at wholesale prices.
- Marketing plan: A marketing plan spells out how your candle business will approach products, pricing, placement (where you sell the goods), and promotion of your candles.
The biggest thing to remember about writing a business plan is it should be easy to understand, well-documented, and as short as possible.
Download our free business plan template and work through it while watching the video below.
Step 4: Secure Funding for Your Candle Line
Jen suggests self-funding when you start a candle brand. Other small business funding options include crowdfunding, a standard business loan, a Small Business Administration loan, or an interest-free loan from friends and family.
Learn how to get business loans here.
Step 5: Get Business Insurance
You’ll want to get insurance when you create candles. Candles can start fires, and small business owners risk lawsuits from customers or employees. We suggest starting your business insurance search with Simply Business because it compares rates from the leading insurance companies.
Learn more about small business insurance here.
Step 6: Gather Supplies
New business owners will need to get the candle wax, different fragrance oil blends, packaging, and any equipment they don’t already have.
Depending on your startup capital and business needs, you may be able to buy most of the products on Amazon, or you may need to reach out to manufacturers.
Step 7: Create an Online Store
You’ll want your own website for candle sales. That means you’ll need a domain name and a website builder. Then you’ll need to create a home page and product pages for each type of candle you sell. You might want categories like:
- Scented candles
- Luxury candles
- Decorative candles
- Fragrance oils
- Tea light candles
- Container candles
- Birthday candles
- Liquid candles
- Insect repellant candles
- Flameless candles
- Pillar candles
- Aromatherapy candles
Read more about the different types of candles on Styles at Life.
Step 8: Market Your Business
You’ll want to market your candles to your target market. Each small candle business will have a different marketing strategy depending on their target market, but most candle companies will include a combination of:
- Social media marketing
- Email marketing
- Content marketing
- Traditional marketing channels
Jen explained that their marketing strategy consists of local farmers markets, pop-up shops, social media, and email marketing. She also explained:
[su_quote]I feel like our biggest mistakes were not going digital fast enough. If we had a website and collected emails from the beginning we would have grown much faster.[/su_quote]
Step 9: Sell Candles
Fulfilling orders is another crucial part of running a candle line. When you’re selling online, this will mean packaging and shipping the candles to consumers or other small business owners.
When you sell at local markets or a local craft store, you’ll still need packaging, but it could be a decorative box and branded bags as opposed to a box that is ideal for shipping.
Things to Consider When Starting a Candle Business
When considering how to start a candle business, you’ll need to consider:
- Where am I going to sell my candles?
- Am I going to hire employees or do it all myself?
- What technology do I need when starting candle business operations?
- What will my pricing strategy be?
Let’s look at each of these.
Find a Location for Your Candle Business
There are a variety of places you can sell your candles. If you are wondering how to start a candle making business at home, you can do so using this guide and sell them on your website. Other options include:
- Retail stores
- Gift shops
- eCommerce platforms
- Flea markets
- Your local farmers market
A candle business makes different amounts of money depending on the locations they sell their products and the cost of doing business for each type of store.
Hire Employees for Your Candle Business
A dedicated candle maker may grow to the point of needing to hire employees. When you do, you’ll need to get an EIN if you haven’t already. This is how the IRS identifies employers.
You’ll also need to have payroll software and optional benefits. Many accounting software providers include payroll resources, but if you want to consider other options, check out our article where we compare the 15 best HR companies.
The Department of Labor requires employers to display poster notices for employees, either electronically or physically in the workplace. A comprehensive employer guide for how to display these posters is available on their website.
You’ll also need to follow the following requirements:
- The Federal Unemployment Tax Act (FUTA) requires any business with employees to pay a payroll tax.
- Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
- Meeting Occupational Health and Safety Administration (OSHA) standards and enforcing workplace safety are necessary for any business.
- Worker’s Compensation Insurance is required to protect your business and employees in case of injury.
Keep reading for information on the technology you’ll need.
Implement Technology to Run a Candle Making Business
When following this step-by-step candle business guide, you’ll need to implement some technology. Most of the technology that RXLA uses is for marketing purposes. They mentioned using Klaviyo for their candle brand email marketing.
Create a Pricing Strategy
One of the easiest ways to ensure you’ll make good money is to keep your candle startup costs low and charge market value for the products. You’ll want to target a gross margin of 50% for your candle business. To calculate the price easily:
- Add up the total costs for a batch of candles
- Multiply the cost by 2.
- Divide by the number of candles created.
That should put you right at 50% gross margins.
Your pricing strategy can be created in a few different ways. The primary ways of pricing candles are:
- Cost of doing business
- Add up all your costs and divide them by the number of candles you make.
- Add the amount you want to earn for each candle sold based on the time it takes you to make, sell, package, and ship each candle. So if you spend four hours making and shipping 200 candles and want to make $100 per hour, that’s $2 per candle you add to the costs.
- Competitors pricing
- Look up comparable products and price your items based on them.
- Luxury candles
- Create a brand story that makes your particular candle more valuable. This is the strategy that Jazmin used.
Whichever strategy you use, make sure you are realistic about how much time you are willing to dedicate to it. If you are only going to spend a few hours a day, you can’t make as much as if you treat it like a full-time job.
Ideas for a Candle Making Business
Candlemakers primarily target women, but according to the National Candle Association (NCA), both men and women consider candles appropriate gifts. They say the most common times people buy candles are:
- During the holiday shopping season, which is when 35% of sales occur
- Housewarming gifts
- Gifts at dinner parties
- With thank you notes
- For adult birthdays
How to Start a Candle Business With No Money
To start a candle business with no personal finances, you’ll normally need to focus on selling candles using a “print”-on-demand or drop shipping strategy. Once you have built up some money from candle sales, you can start reinvesting in the supplies and equipment to start making your own homemade candles.
The good news is that it’s inexpensive to start selling candles. Both of the business owners we talked to have started with $100.
Open Your Own Candle Business
Making candles might not seem like a profitable business, but it has the potential to blossom into a high income. Jocelyn and Jen started crafting candles as gifts, sold them in farmers markets, opened and closed a brick-and-mortar store, and were late to the digital marketing game, but they still reached an impressive $500K in annual revenue.
Their story teaches us valuable lessons about resilience, adaptability, and the power of listening to customers. They found ways to overcome challenges and expand their offerings. You can use their candle business tips to succeed too.
The candle industry is ripe with opportunity. With global revenue projected to soar in the coming years, candle business owners can sell candles to make a great living. And the beauty of it all? Given Jocelyn and Jen started with $100, a candle business is one of the best businesses to start from home.
As you embark on your candle making journey, remember that success lies not just in the quality of your product but also in the strength of your brand, the efficacy of your business plan, and the dedication to continuous improvement.
Whether you dream of creating luxury candles or catering to a specific market segment, the possibilities are limited only by your imagination and determination.
So ignite that spark of creativity, pour your passion into every candle you craft, and watch as your business illuminates not just spaces but lives, one flickering flame at a time.
Many business owners want cute business names that show a softer, more personal side. That’s why we pulled the top searches for cute business name ideas and used them to inspire this list.
We’ll discuss what makes a cute business name, provide industry-specific examples of cute small business name ideas, and then provide an overview of how to register your cute business name idea.
[su_note note_color="#dbeafc"] Click on any of the links below to jump to the section that interests you.
- What Makes Cute Names for Small Business?
- What Are Some Cute Business Names?
- Cute Names for Business by Industry
- 20 Cute Cleaning Business Names
- 20 Cute Names For Photography Business
- 20 Cute Craft Business Names
- 20 Cute Jewelry Business Names
- 20 Cute Nail Business Names
- 20 Cute Baking Business Names
- 20 Cute Lash Business Names
- 20 Cute Names For T-Shirt Business
- 20 Cute Business Names For Estheticians
- 20 Cute Hair Business Names
- 20 Cute Babysitting Business Names
- 20 Cute Bracelet Business Names
- 20 Cute Crochet Business Names
- 20 Cute Slime Business Names
- 20 Cute Dog Business Names
- 20 Cute Notary Business Names
- 22 Cute Brand Names
- 12 Cute Shop Names
- 12 Cute Store Names
- 16 Cute Website Names
- How to Register Your Cute Company Names
- Build Your Cute Business Brand[/su_note]
What Makes Cute Names for Small Business?
Cute small business name ideas tend to have certain characteristics including:
- Showcase the brand: Let people know exactly what your brand is about in the small business name.
- Short and sweet: A catchy business name is easy to say and lets people know what you do.
- Include the target audience: Sometimes it makes sense to share exactly who your target audience is directly in a cute business name.
- Stand out: You are going into business to make waves. Research the competition and make sure you stand out.
- Include Locations: Using your location in your cute small business name is a great way to provide a local indicator to your target market.
- Name Availability: Intellectual property theft isn’t cute. Make sure the small business name ideas are available. No one likes their idea being stolen.
Keep reading for creative business name ideas that you’re sure to adore!
What Are Some Cute Business Names?
Some cute name ideas include:
1. Twinkle Toes Dance Studio
2. Little Sprouts Nursery
3. Starlight Stitches Tailoring
4. Happy Trails Hiking Club
5. Kitten Cuddles Cat Cafe
6. Doodle Dandy Design Studio
7. Cherry Cheeks Cosmetics
8. Whimsy Wonderland Crafts
9. Buttercup Bakery Delights
10. CurlyQ Hair Salon
11. Buzzy Bees Honey Farm
12. Little Giggles Gymnastics
13. Feathered Fancies Bird Boutique
14. Moonbeam Music Academy
15. Sweetheart Serenade Wedding Planners
16. Sparkle Sprout Jewelry
17. Furry Friends Farmstead
18. Tickled Pink Boutique
19. Rainbow Rascals Daycare
20. Dapper Doodles Pet Salon
21. Lollipop Lane Treats
22. Quirky Quilts & Crafts
23. Happy Tails Dog Walking
24. Snickerdoodle Sweets Shop
25. Bluebell Bliss Spa
26. Sunny Side Up Breakfast Cafe
27. Whisker Whispers Pet Sitting
28. Blossom Baby Boutique
29. Cloud Nine Carpentry
30. Heartfelt Harmony Counseling
31. Twirl & Swirl Dance Academy
32. Snuggle Snacks Cafe
33. Serenity Springs Yoga Studio
34. Cupcake Cuties Bakery
35. Dazzle & Delight Jewelry
36. Peachy Keen Preserves
37. Starry Skies Astronomy Club
38. Button & Bowtie Tailoring
39. Tootsie Treats Candy Shop
40. Lucky Duck Daycare
41. Cherry Pie Photography
42. Bumblebee Buzz Art Gallery
43. Sproutlings Childcare
44. Rainbow Ruffles Fashion
45. Fuzzy Friends Foster Care
46. Java Love Coffee Cart
Pro Tip: Consider using alliteration, rhyme, or puns in your cute business name to make it more memorable and appealing.
Cute Names for Business by Industry
You own, or are about to launch, a unique business, so it’s only fitting that we provide some catchy business name ideas for the type of business you run. The following sections represent some of the most sought-after cute business name ideas as of February 2024.
20 Cute Cleaning Business Names
The majority of the cleaning industry is run by women, and there are a ton of catchy business names in the industry. Consider some of these cute cleaning business name ideas.
1. Squeaky Clean
2. The Spotless Squad
3. The Dust Bunnies
4. The Cleaning Fairies
5. Sparkle and Shine Cleaning
6. The Tidy Team
7. The Clean Slate Crew
8. The Sparkling Sponges
9. Magic Wands Cleaning Company
10. The Dazzle and Shine Cleaning Service
11. Spotless Solutions
12. The Clean Dream Team
13. The Cleaning Genies
14. The Dirt Busters
15. The Cleaning Angels
16. Suds and Shine Cleaning Company
17. Cleaning Queens
18. Fabulously Clean Cleaning Service
19. Berry Bright Cleaning Co.
20. Queen Bee Cleaning Services (taken!)
Unfortunately, you shouldn’t use Queen Bee Cleaning Services as a business name. This memorable business name is used by Christobal Mondragon and his wife. Want to know more about how to run your cleaning business? We have a whole course with Christobal.
Starting a cleaning company? Check out even more handpicked cute cleaning business name ideas.
20 Cute Names For Photography Business
1. Shutter and Smile
2. Flash and Fancy
3. Picture Perfect
4. Snapshots of Joy
5. Capture the Moment
6. Memories by Mary
7. Lens and Love
8. The Photo Booth
9. Click and Chic
10. Snap Happy
11. Shutterbug Studios
12. Frame of Mind
13. The Picture Palace
14. Light and Shadow
15. Focus on Fun
16. The Candid Camera
17. Photogenic Faces
18. The Memory Maker
19. The Photo Emporium
20. Sunny Smiles Photography
Pro Tip: Use common phrases that people use in the photography industry to help make it known that your company focuses on photos. Mile High Productions is a drone photography company that makes $35K per month. Check out our interview with them below.
20 Cute Craft Business Names
Cute business names for crafts are really popular. Use some of these unique business name ideas to help inspire your naming process.
1. Honeybee Boutique
2. Blossom Boutique Florist
3. Jellybean Junction Toy Store
4. Rainbow Ribbons Events
5. Sip & Scribble Art Studio
6. Teddy Bear’s Tea Room
7. Pixie Dust Parties
8. Stitchin' Cuteness
9. Knotty Creations
10. Yarn & Joy
11. Fiber Fantasies
12. Crafting Dreams
13. Needle & Thread Nook
14. Crafty Corner
15. The Yarn Haven
16. Hooked on Crafts
17. Craftastic
18. Crafting with Love
19. The Creative Studio
20. Artful Adventures
Pro Tip: When naming your craft business, consider using words that evoke a sense of creativity, artistry, and handmade quality. This will help to create a strong brand identity and attract customers who appreciate unique, handmade products.
20 Cute Jewelry Business Names
Cute names for a jewelry business might include references to the type of jewelry or the style you’re going for. Think about how you can help build brand recognition for your jewelry shop.
1. Adorned Adorables
2. Blingtastic
3. Charm Central
4. Dazzling Delights
5. Enchanted Embellishments
6. Gemtastic Treasures
7. Jewelry Jubilee
8. Lustrous Luxuries
9. Ornate Obsessions
10. Radiant Rarities
11. Shimmering Splendors
12. Sparkle & Shine
13. Treasure Trove
14. Twinkling Treasures
15. Unique & Exceptional
16. Vintage Vixen
17. Celestial Jewels
18. Enchanted Adornments
19. Radiant Reflections
20. Timeless Allure
Pro Tip: When choosing a name for your jewelry business, consider using words that evoke emotions and create a sense of luxury. For example, words like "radiance," "allure," "enchantment," and "elegance" can help convey the beauty and value of your jewelry.
20 Cute Nail Business Names
Nails are an inherently girly business. Most of your potential customers will be women, so consider a business name ideas list that has naming options that use a common phrase for nails.
1. Nail-a-licious
2. Pretty Polished
3. The Nail Sanctuary
4. Paint Box Nails
5. The Nail Bar
6. Buff and Shine
7. The Nail Studio
8. Nail Art Emporium
9. The Manicure Lounge
10. Nail-Tastic
11. The Nail Spa
12. Nails by Nature
13. Polished to Perfection
14. The Nail Boutique
15. The Nail Lab
16. The Nail Room
17. Tip Top Nails
18. The Nail Haven
19. The Nail Parlour
20. The Nail Loft
Pro Tip: You might also think about how to include your value proposition to attract your potential customer base.
20 Cute Baking Business Names
A creative name for your pretty food can help you grow your successful business. Think about some of the cute bakery naming ideas below.
1. Sprinkle Sparkle Bakery
2. Cupcake Carousel
3. Dreamy Delights Cafe
4. Doughlicious Delights
5. The Cookie Corner
6. Sweet Tooth Bakery
7. The Cupcake Cottage
8. Slice of Heaven Bakery
9. The Frosting Fairy
10. Whisk and Bake
11. Sugar and Spice Bakery
12. The Gingerbread House
13. Crumbs and Cookies
14. The Muffin Man
15. The Donut Den
16. The Pie Pantry
17. The Cake Chateau
18. The Bread Basket
19. The Rolling Pin
20. The Baker's Nook
Pro Tip: When choosing a cute bakery business name, consider using words that evoke a sense of sweetness, deliciousness, and warmth. This will help to create a strong brand identity and attract customers who have a sweet tooth.
20 Cute Lash Business Names
Girly names make perfect business sense for a lash company. Consider some of these small business names to ensure a potential customer remembers your new business name.
1. Flutter & Lash
2. Glamorous Gaze
3. Wink & Sparkle
4. Lash Amour
5. Enchanting Eyes
6. Lash Heaven
7. Fluttery Lashes
8. Lashes to Envy
9. Lash-O-Licious
10. The Lash Lounge
11. Lashylicious
12. Eyelash Elegance
13. Lash & Bloom
14. Perfect Peeps
15. Lashing Out
16. Wink Wink
17. Lash Envy
18. Blink and Beautiful
19. Lash Studio Bliss
20. Lashes by [Your Name]
Pro Tip: Using your birth name might seem like the perfect business name inclusion, but if you have desires to expand beyond solopreneurship, you might want to use something besides your own name.
20 Cute Names For T-Shirt Business
Everyone loves a great t-shirt company. Check out some of these cute small business names for t-shirt companies.
1. Threads of Love
2. The Tee-Riffic Store
3. Graphic Galaxy
4. The T-Shirt Haven
5. Cotton Candy Creations
6. Tee Time
7. The Printed Palace
8. Custom Threads
9. The Cozy Cotton Shop
10. Tee-Licious Designs
11. The Quirky Tee
12. The Tees & More Store
13. The Thread Emporium
14. Snuggly Tees
15. Happy Threads
16. The Tee Factory
17. Printed Perfection
18. The Statement Tee
19. Colorful Creations
20. The Apparel Avenue
Pro Tip: When choosing a cute name for your clothing company, consider using words that evoke a sense of comfort, style, and personality. Words like "cozy," "chic," "unique," and "playful" can help create a strong brand identity and attract customers who appreciate unique, high-quality clothing.
20 Cute Business Names For Estheticians
Estheticians focus on skin care, which makes the industry perfect for cute small business name ideas. Consider some of these easily pronounced names.
1. Bubblegum Bliss Salon
2. Cuddle Clouds Day Spa
3. Cherry Blossom Beauty Bar
4. Polished and Posh
5. Skin Serenity
6. Blushing Beauty
7. The Glow Studio
8. Luxe Lashes
9. Brow Bar Beauty
10. The Facial Haven
11. Sweet Cheeks Salon
12. Pretty Please Aesthetics
13. Flawless Facials
14. Radiance and Rituals
15. Skin and Serenity
16. The Skincare Sanctuary
17. The Brow Boutique
18. The Facial Spa
19. The Esthetician's Emporium
20. The Skin Studio
Pro Tip: Consider words like “blissful,” “radiant,” “glowing,” “soothing,” and other words that inspire a sense of beauty and empowerment when you choose a cute name for your skincare business.
20 Cute Hair Business Names
Like skincare businesses, hair-cutting and cosmetology businesses can benefit from “girly cute” business names. Consider some of these cute business name ideas.
1. Scissor Sisters
2. Hair Haven
3. Mane Attraction
4. The Hair Loft
5. Curl Up and Dye
6. Shear Genius
7. Snip-Its
8. Tresses to Impress
9. The Mane Event
10. Hair Razors
11. The Hairy Godmother
12. Hair-Itage
13. The Curl Bar
14. Hair Apparent
15. The Blowdry Bar
16. Hair Today, Gone Tomorrow
17. The Updo Studio
18. The Hair Lounge
19. Hairitage Salon
20. The Mane Tamers
Pro Tip: Make sure the domain name is available for the business website before choosing your perfect name.
20 Cute Babysitting Business Names
Babysitters and childcare are a booming industry. Cute name ideas can help differentiate you from other businesses in the field.
1. Snuggle Bug Daycare
2. Hopscotch Playhouse
3. Giggles & Grins Childcare
4. Little Dreamers Academy
5. Wee Care
6. Little Angels
7. Happy Tots
8. Playful Pals
9. Giggly Gang
10. Cuddle Crew
11. Sleepy Sheep
12. Storytime Sitters
13. Crafty Kids
14. Outdoor Explorers
15. Curious Critters
16. Super Sitters
17. Hero Helpers
18. Magic Makers
19. Wish Granters
20. Dream Weavers
20 Cute Bracelet Business Names
Whether you have your own shop, are selling bracelets at in-person events, have an online store, or are consigning them to boutiques and studios, these creative business name ideas could help your cute bracelet brand stand out from other jewelry and trinket offerings.
1. Bangle Bliss
2. Charmed & Adorned
3. Bracelets by the Beach
4. Beaded Delights
5. Arm Candy Creations
6. Wristful of Wonders
7. The Charm Factory
8. Bangle Boutique
9. Bracelet Bazaar
10. The Beaded Garden
11. Wrist Candy Wonderland
12. Armour Adorned
13. Bracelets Galore
14. The Bangle Bar
15. Wrist-a-Licious
16. Armful of Elegance
17. The Charm Emporium
18. Bangle Bonanza
19. Beaded Bliss
20. Bracelets by the Bay
Fun Fact: Women-owned small businesses generate $1.9 trillion in economic activity each year. If you’re a woman entrepreneur looking to launch a new business, consider our Best Business Ideas For Women 2024 and pick a cute name to match.
20 Cute Crochet Business Names
Crocheting has experienced a recent resurgence in popularity, and buyers love the look of crocheted goods. Leverage the fact that your crocheted pieces are handmade, artisan offerings, and pick a creative business name to match.
1. Hooked on Love
2. Knotty but Nice
3. Yarnphoria
4. Stitches and Giggles
5.Fiber Fantastic
6. Loops and Love
7. Yarn Haven
8. Crafty Creations
9. The Crochet Corner
10. Yarn Wonderland
11. Hooked on Handmade
12. Cozy Crochet Creations
13. Strings and Smiles
14. The Yarn Emporium
15. Crochet Dreams
16. The Knotty Nook
17. Yarn and Joy
18. Stitching With Love
19. The Crochet Cottage
20. Stitch by You
20 Cute Slime Business Names
Slime is big business. Try one of these on for size for your unique business making slime.
1. Slime-Tastic Creations
2. The Slime Factory
3. Ooey Gooey Slime Shop
4. Slimy Sensations
5. Slime-a-Licious
6. Slimey Fun Zone
7. The Slime Lab
8. Slime Time
9. Slimey Paradise
10. Slime World
11. The Slime Emporium
12. Slimey Delights
13. Slimey Wonders
14. The Slime Station
15. Slimey Kingdom
16. Slime-O-Rama
17. Slimey Heaven
18. Slimey Galaxy
19. The Slimeverse
20. Slimey Adventures
20 Cute Dog Business Names
Whether you’re making pet accessories or treats or offering a pet-centric service, these unique business name ideas could be perfect for getting dog owners’ attention.
1. Paws & Pals Pet Care
2. Cozy Paws Bed & Biscuit
3. Playful Pup Paradise
4. Pawsitively Perfect
5. The Happy Hounds
6. The Doggie Den
7. Tail Waggers
8. The Pooch Palace
9. Doggy Delights
10. The Canine Crew
11. The Barking Bunch
12. The Dog House
13. Paws for Thought
14. The Dog Lovers' Club
15. The Furry Family
16. The Puppy Playhouse
17. Chew Crew
18. The Doggy Spa
19. The K9 Academy
20. The Doggy Diner
20 Cute Notary Business Names
Notary small businesses might not seem like they need a cute or girly business name, but one of these could be just the thing to help your notary services stand out from the crowd.
1. Stamp of Approval Notary
2. Notary Ninja
3. The Notary Nook
4,. Notary Express
5. Stamped and Sealed
6. The Notary Corner
7. Notary Now!
8. The Notary Spot
9. Notary on the Go
10. Notary 24/7
11. The Notary Bar
12. Notary Central
13. Notary Plus
14. The Notary Hub
15. Notary Services R Us
16. Notary at Your Service
17. The Public Notary
18. Notarize This
19. Notary Solutions
20. The Notary Source
22 Cute Brand Names
Whatever kind of brand you’re launching, if you’re selling cute products, one of these cute company names could be perfect for you.
1. Snuggle Buddies
2. Cuddly Creations
3. Dreamy Days
4. Happy Hearts
5. Giggle Gang
6. Joyful Journey
7. Imagination Station
8. Storybook Adventures
9. Enchanted World
10. Curious Kids
11. The Pink Ladies
12. The Learning Tree
13. Discovery Den
14. Knowledge Nook
15. The Wonder Room
16. Explore and Grow
17. Little Explorers
18. Bright Minds
19. The Curiosity Club
20. The Adventure Academy
21. Pawriffic
22. When Pigs Fly
12 Cute Shop Names
Opening an adorable shop? Try one of these names.
1. The Crafty Corner
2. The Quirky Cupboard
3. The Vintage Vault
4. The Artisan Alley
5. The Bibliophile's Haven
6. The Foodie's Paradise
7. The Green Thumb Garden
8. The Cozy Cottage
9. The Happy Camper
10. The Coastal Collection
11. The Salty Sailor
12. The Artistic Edge
12 Cute Store Names
Need to name a brick-and-mortar store? These ideas are for you.
1. Love's Emporium
2. Tee & Me
3. Cotton Creations
4. The Music Box
5. The Pet Palace
6. Furry Friends Emporium
7. Tech Haven
8. The Gadget Galaxy
9. The Book Nook
10. The Puzzle Parlor
11. The Adventure Awaits
12. Just Girly Business
16 Cute Website Names
If you’re launching a website that’s all about cute, one of these names could be the perfect fit.
1. Cutie Pie Creations
2. Happy Hearts Boutique
3. Sweet Tooth Treats
4. Cozy Corner Virtual Cafe
5. Rainbow Dreams
6. Magical Moments
7. Twinkling Stars
8. Cuddly Critters
9. Happy Tails
10. The Enchanted Forest
11. Fairy Dust Designs
12. Wishes & Wonder
13. Dreamy Delights
14. Whimsical Wonderland
15. Sunshine Smiles
16. Love & Laughter
How to Register Your Cute Company Names
Once you’ve found a name for your business, you’ll want to make sure you can use the name. The naming process includes:
- Check domain availability: While you can buy any web domain, the costs vary dramatically. It’s better to stick to buying one that is available without negotiating the sale of a domain.
- Check the social media handles: When looking for unique cute business names, you may find the social media handles are already taken, which means you’ll need a different name.
- Check the trademark: When a company trademarks its cute brand name with the USPTO, it can legally prevent you from using it. Search the USPTO database.
- Form your business: Now it’s time to go apply for your LLC or corporation and file the business name with the Secretary of State.
- Get local business licenses: Depending on your location and industry, you may need local business licenses and permits. Talk to your local business office to establish what you need.
Build Your Cute Business Brand
We’ve provided inspiration for cute business names in multiple industries. Once you’ve chosen your business name, you’ll want to use it in your marketing, website, and other business documents.
Which cute names do you like?
How much does insurance cost for a small business? Probably less than you think.
In fact, many small business owners pay $0 for insurance. That’s because nearly 4 out of 10 small business owners don’t carry it, according to a recent UpFlip original survey. That opens them up to risks that could sink their fledgling businesses.
We’ll discuss the cost of small business insurance to help you figure it into your operating costs. We’ll also clarify which insurance will cover specific incidents.
[su_note note_color="#dbeafc"]
Click on any of the links below to jump to the section you are interested in.
- Why do small business owners need insurance?
- How much does small business insurance cost?
- What are the most common types of commercial insurance?
- What insurance do I need to run my own business?
- What is the average cost of insurance for small businesses?
- Are business insurance costs a startup cost?
- Top business insurance companies in USA
- Get business insurance quotes[/su_note]
Why do small business owners need insurance?
Small businesses need insurance policies to protect company assets when people get sick or injured. These policies also protect your business’s finances against property damage and lawsuits.
Furthermore, small businesses may be required by law or clients to have minimum levels of coverage.
While the insurance cost may seem like money down the drain every month, you’ll be glad you have small business insurance when something goes wrong.
How much does small business insurance cost?
We asked survey participants how much they spend annually on small business insurance. 60% said under $1,000, 16% said between $1K and $2.5K, and another 14% said between $2.5K and $25K. For 10%, the cost of insurance is over $25K.
Small business insurance costs range from $15 to $567 per month, depending on the industry, insurance company, insurance policy, and your business’s annual revenue and claims history. Costs also vary based on your business’s location and the level of financial protection you desire.
Expect higher premiums when an insurance company takes on more risk by insuring your business.
Depending on the insurance company, you may save money by paying an annual rather than a monthly premium. According to Insurance Business Mag, you can expect to pay $6,804 annually to cover all business insurance your company may need.
The table below does not include any discounts because the terms of discounts vary by provider. Check the table below for the costs of different types of coverage, per Insurance Business Mag.
| Type of Small Business Insurance Policy | Monthly Premium | Annual Premium |
| General Liability | $40 to $55 | $480 to $660 |
| Business Owner’s Policy | $40 to $100 | $480 to $1,200 |
| Professional Liability | $50 to $60 | $600 to $720 |
| Workers' Compensation | $45 to $70 | $540 to $840 |
| Cyber Liability | $140 to $150 | $1,680 to $1,800 |
| Commercial Auto | $150 | $1,764 |
| Total | $455 to $585 | $5,460 to $7,020 |
Help us provide more insightful information about small business insurance
Want to help us provide more detailed information about small business insurance? Fill out the form below; we’ll use the data to provide even better information.
What are the most common types of commercial insurance?
Every small business should have business insurance to stay legally compliant and shield it from risks associated with conducting business. Unfortunately, small business owners don’t seem to be interested in paying for the business insurance cost.
According to our survey, just 50% of small businesses carry general liability insurance, 6% carry commercial auto insurance, and 5% have other insurance plans. Meanwhile, 38% of business owners do not have small business insurance.
The most common types of small business insurance are:
- Business interruption insurance
- Commercial automobile insurance
- Employment practices liability insurance
- General liability insurance
- Group health insurance
- Professional liability insurance
- Employment practices liability insurance
- Management liability insurance
- Cybersecurity insurance
- Workers’ compensation insurance
For those of you unfamiliar with some of the small business policies available, we’ve provided a brief description of each type below.
What is general liability insurance?
Only 50% of small businesses have general liability insurance.
General liability insurance or business liability insurance protects your small business from general claims of bodily and property damage. If someone could get hurt because of your business’s products, operations, or services, you should have general liability insurance.
General liability insurance policies will not normally cover punitive damages, auto accidents, professional mistakes, on-the-job injuries, intentional damage, or poor workmanship.
The most common general liability coverage is $1M per occurrence and $2M lifetime coverage.
What is commercial automobile insurance?
Only 6% of small business owners have commercial automotive insurance.
Commercial auto insurance is like personal auto insurance. It protects your business specifically (instead of you personally) against accident liability. You will need this insurance if your business uses vehicles because personal policies do not cover business use.
Pro Tip: I discovered this the hard way when I drove for Uber. Fortunately, commercial auto insurance costs were partially covered by Uber.
A small business owner will have coverage against liability, collision or comprehensive damage to property, medical expenses for occupants, and coverage against uninsured motorists.
Collision plans only cover accidents, while a comprehensive plan covers weather, other damage, and theft.
You’ll have limits for both bodily injury and property damage when you’re at fault. You can opt for the state minimum or higher coverage limits to protect your business should the liability coverage run out.
These policies often require driver background checks and will not allow DUIs.
What is business interruption insurance?
Business interruption insurance helps replace lost income when you temporarily close due to accidents like a power outage, government mandate, or other business interruptions.
When a covered loss occurs, your business interruption insurance will cover revenue you would have made, mortgage or lease payments for the period, loan payments, taxes, payroll, relocation costs, and training costs.
You’ll want to check the restoration period. The insurance normally kicks in after your business has been closed for 48 to 72 hours. You’ll also want to know the coverage limits, which should be based on your forecasted profits and revenue.
You’ll also want to consider other insurance to cover policy exclusions, like broken items, natural disaster damage, undocumented income, utilities, and diseases.
You’ll often see business interruption insurance combined with property and general liability insurance in a policy called a business owner’s policy (BOP).
What is employment practices liability insurance (EPLI)?
EPLI protects small businesses against lawsuits involving employment claims, like discrimination, emotional distress, employment contract breaches, benefit mismanagement, negligent evaluations, sexual harassment, wrongful termination, and wrongful discipline.
You can buy this liability policy as stand-alone coverage or as part of a BOP.
The EPLI cost varies based on the number of employees, past violations, and type of business. This business insurance reimburses legal costs but not punitive damages or fines. Nor does it cover infractions that are covered by other policies.
Many insurance companies will require you to create and post workplace policies, educate staff, make it easy to report discrimination, and maintain proper documentation.
What is group health insurance?
Group health insurance isn’t small business insurance, but many small businesses offer group health insurance plans to their employees. Plus, they must do so if they have more than 50 employees.
You are required by law to offer the same health insurance to all employees regardless of age if you have 20 or more employees. This extends to their spouses, too.
Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, coverage during a severance package, health savings accounts, retiree coverage, self-employed health care, and Veterans Affairs health insurance costs do not count under group health care coverage.
You can learn more from the Social Security Administration.
What is professional liability insurance?
Your business needs professional liability insurance (indemnity insurance or errors and omissions insurance) if you regularly provide advice or professional services. A client may also ask you to carry a professional liability policy.
Professionals sometimes give bad advice, do something they weren’t supposed to, or forget to do things they should have done. When these things occur, they can have catastrophic consequences.
Professional liability insurance covers the cost of defense and the settlement for negligence, libel, slander, and contractors working under you.
Policy exclusions include bodily injury, cybersecurity attacks, employment claims, false advertising, fraud, property damages, and services that are outside of the normal business practices for your industry. Make sure to read the exclusions carefully.
What is management liability insurance?
Business management liability insurance is a group of insurance coverages to help protect against exposure to lawsuits. This group of policies includes employment practice insurance as well as:
Crime Insurance: Protects from losses due to computer fraud, employee dishonesty, theft, counterfeit money, monetary security, and other damages.
Director and Officers Insurance: Protects directors and officers who are named in a lawsuit along with the company. You should maintain this insurance on executives and directors even after they leave the company because they can still be held liable until the statute of limitations expires.
Fiduciary Liability Insurance: When you or another company manage a benefit plan, including 401Ks, dental, disability, life insurance, and medical benefits, you have a fiduciary responsibility to act in the best interest of participants. This protects the company if the benefit plan fails to administer benefits properly.
Each of these small business insurance policies can be written as a package or a stand-alone policy. Management liability packages are normally chosen by small businesses and non-profits, while stand-alone policies are more common in major corporations.
What is cybersecurity insurance?
Cyber liability insurance policy helps businesses pay for losses from a cyber security attack or data breach. It also helps pay for the investigation, legal services, communication, and refunds to customers that occur while fixing the vulnerability.
Cyber liability insurance normally covers data destruction, data extortion, data theft, and hacking losses. This insurance is especially valuable if you collect large amounts of customer data or own intellectual property.
A cybersecurity insurance policy will often exclude theft by a business partner, human error, pre-existing vulnerabilities, poor security practices, prior attacks, and system improvements.
The insurance company will likely check your system for known vulnerabilities and poor processes. Make sure to check your systems for vulnerabilities and create a data security policy before applying for cyber insurance.
What is workers’ compensation insurance?
Workers’ compensation insurance, or “workers’ comp,” covers workers' earnings and medical costs if they are injured or get sick at work. Every state has its own requirements, and companies are required by law to provide workers comp’ to employees.
Workers' comp reduces the likelihood of lawsuits as long as the insurance pays employees’ wages, medical bills, and rehabilitation. It will also pay debt benefits.
Your workers' compensation insurance costs will be based on the industry you are in, but you may be required to pay more if you have consistent payouts.
Your small business may be fined and forced to pay claims out-of-pocket if you do not carry this insurance. You may also face criminal charges and lose your business license if you fail to provide the proper insurance.
What is commercial property insurance?
Commercial property insurance protects your company’s building, computers, documents, and other property from burst pipes, explosions, fire, storms, vandalism, and theft.
You’ll normally need separate insurance to protect against natural disasters.
Commercial property insurance costs vary based on the industry, location, property value, and the building’s construction, fire protection, and occupancy. Your BOP will normally include commercial property insurance.
Now that you understand the insurance types sold to small businesses, let’s discuss what yours will need.
What insurance do I need to run my own business?
Every small business is different. Some small businesses may not need any insurance, while others will need the full spectrum of small business insurance offerings.
At the very least, you should have general liability, commercial vehicle, and property damage coverage. Make sure to consult a business lawyer in your state to see what the requirements are for your industry.
What is the average cost of insurance for small businesses?
The average cost of insurance for small businesses will depend on the type of insurance, but the two most common types are general liability and commercial auto. These are the costs, per Insureon:
- Average general liability insurance costs: $502 per year or $42 per month
- Average commercial auto insurance costs: $1,764 annually or $176 per month
It should be noted that, according to our survey, 38% of small businesses open themselves up to risk by not carrying any small business insurance.
Average monthly costs of small business insurance
The average monthly premium will differ for each small business, but according to Insureon, small business liability insurance averages $42 per month, while commercial vehicle policies average $176 monthly.
Are business insurance costs a startup cost?
Yes, your small business insurance cost is considered a startup cost. You should include at least $1,000 annually for small business insurance costs in your budget. However, your small business insurance cost may be much higher depending on your age, insurance credit score, job risks, number of employees, and industry.
For instance, when Mikael Sant started the trucking company Sant Lines at the age of 19, his first commercial auto insurance quote was $57,000 for him to drive plus 20% down.
Mikael Sant is one of the business owners who talked about the cost of insurance for small business operations. He pays nearly $100K a year for four trucks. Find out more about driving a truck below.
Top business insurance companies in USA
Business owners have numerous companies to evaluate when they want to compare costs. Consider some of these companies:
- AIG
- Allstate
- American Family Insurance
- Berkshire Hathaway
- Chubb
- CNA Financial
- COUNTRY Financial
- Erie Insurance
- Farmers Insurance
- GEICO
- Hiscox
- Liberty Mutual
- Markel Corporation
- MetLife
- Mutual of Omaha
- Nationwide
- Next Insurance
- Progressive
- State Farm
- The Hartford
- Travelers
- Zurich Insurance Group
To help compare rates, we recommend Simply Business. It will help you find the best insurance costs for a small business by comparing rates from 16 different insurance providers.
Get business insurance quotes
Nobody likes paying an insurance premium, but the benefits may outweigh this. For instance, business interruption insurance could have prevented the demise of the 700,000 businesses that shut down—and prevented the lost wages that came with their shutdowns—during the pandemic.
More coverage means more protection. A business owner’s policy includes general liability, business interruption, commercial property damage, and workers’ comp insurance, and you can expect to pay about $2 per day to protect yourself from legal fees and higher-risk events that could shut down your business.
Why don’t you have small business insurance?
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Who published this?
Brandon Boushy@
2022-03-10 08:50:00
This was published by UpFlip and written by me.
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