How to Start a Flooring Business The Profitable Way
You’re considering starting a flooring business, but you’re wondering if it’s a good choice. Is it expensive? Profitable? What skills are needed to run a successful flooring company? Is a franchise opportunity really the way to go? We lay down the details for you.
The Flooring Industry
In 2020, the global flooring market was valued at $342.88 billion. With a compound annual growth rate (CAGR) of 5.4%, the industry is estimated to be worth a whopping $517.74 billion by 2028.
Due to COVID-19 and the move to remote work, many people have moved from the cities to the suburbs, sacrificing their closeness to the office in exchange for more space. The housing market in 2021, was red hot, with houses going for much more than the asking price. While COVID-19 caused some supply and demand issues in the remodeling industry, the market has still been able to expand. The home improvement market in 2021 reached a value of $281 billion and is expected to continue growing.
It’s estimated that one of the most popular remodeling projects in 2022 will be floor replacement. Homeowners who replace their floors can see an ROI up to 70% when they sell their home.
What Costs are Involved?
You’ll want to consider two different types of costs – initial startup costs and ongoing costs. Both will depend on the size of your business. Initial startup costs include securing an office space, purchasing any software or programs needed to handle day-to-day operations, liability insurance, and personnel to name a few.
Your ongoing costs will encompass some of the above, but you’ll also want to keep in mind that you’ll need to pay for the advertising and marketing of your business. Other ongoing costs include employee wages, equipment maintenance, and additional materials.
Those considering opening a flooring business, may want to consider a franchise opportunity like Floor Coverings International. We layout all of your potential costs upfront so there are no surprises while you’re going through the process of opening your business. With an investment range of $161,400 to $230,100, we provide a low overhead opportunity for entrepreneurs seeking the chance to be their own boss.
How Much Can Owners Make?
The million dollar question (pun intended, we couldn’t help ourselves). The amount of money you’ll make as an owner will directly depend on the size of your business or the number of jobs you complete. The cost of projects are estimated using a formula considering the size of the floor, labor, and cost of materials. Similar to any business in any industry, at first you may not take home a large salary after paying all business costs. Over time as you complete projects and market your business, you should see an increase in clientele.
Floor Coverings International (FCI) franchisees have the ability to outpace those who choose to start a flooring company individually. With a well-known name, a proven business model, and marketing support, it’s a bit easier to garner customers. While no franchise can ever guarantee earnings, it’s more likely that with the backing of a franchisor, you’ll reach a break even point sooner than your independent business owner counterparts.
What Skills Do I Need?
When researching how to open a flooring business, you’ll see that it provides a great opportunity to be your own CEO, build a team, and make a positive impact on those looking to upgrade their homes.
Like any business venture, entrepreneurs need to have basic business acumen. Owners should be prepared to handle all financial and marketing aspects in addition to motivating employees in order to have a successful business. Due to the flooring industry being consumer-facing, owners should also have strong customer service skills.
At Floor Coverings International, we provide unmatched training and support, removing the barrier of needing previous experience in the flooring industry. Our franchisees receive intense support during the first two years of their flooring business, ensuring they’re able to grow their franchise right from the start. Our team aids our franchisees in business plan development, marketing, sales, and more.
Who Should I Target My Services To?
Partnering with housing development companies or apartment complexes has proven to be lucrative. However, the ideal target consumer when getting your business started would be homeowners. It’s projected that the residential segment in the flooring industry will hold more of the market share than the commercial space. Not to mention that the commercial segment can be hard to break into. Given the recent boom in the housing market, homeowners are looking to make updates to their newly purchased abodes. This gives you the chance to pick up multiple projects in the residential space, and a job well done will ideally result in more jobs through word of mouth.
Marketing is paramount for any business, but especially a new one. So, you won’t want to rely solely on word of mouth. At Floor Coverings International, we provide franchisees marketing support to establish a strong brand presence.
Floor Coverings International: Disrupting an Industry
As you continue your search for flooring business ideas, consider what a franchise can offer you. At Floor Coverings International, we’re disrupting the $48 billion residential flooring industry. Through our mobile flooring showroom, we bring the samples to consumers, providing convenience and ease.
Our proven business model is easy to run and easy to scale, granting ample opportunity for our franchisees. Our brand currently has 170 locations across the United States and Canada and are actively seeking enthusiastic franchisees to join our system.
To learn more about the franchise opportunities with Floor Coverings International, fill out this form.