Starting a Flooring Installation Business

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Embarking on the journey of starting a flooring installation business can be a lucrative and rewarding venture. The flooring industry is a thriving sector, offering a stable source of income with promising opportunities for growth. This guide will walk you through the step-by-step process, revealing the ins and outs of launching a successful flooring installation business.

Understanding the Flooring Installation Business

The first step in starting a flooring installation business is to comprehend the nature of the industry. The flooring industry is an integral part of the home improvement sector, contributing significantly to the economy. In 2020, the global flooring market was valued at approximately$388.24 billion. The industry is projected to expand at a compound annual growth rate (CAGR) of 6.1% from 2021 to 2028, reaching a staggering $621.54 billion.

Flooring installation businesses specialize in the removal of old flooring and the installation of new ones. They cater to both residential and commercial clients, installing a variety of flooring options such as carpet, linoleum, hardwood, vinyl, tile, and laminate. Some businesses may focus solely on installation, while others might branch out into the retail sector, offering a showroom displaying a wide range of product choices.

Assessing the Pros and Cons

Like any business venture, starting a flooring installation business comes with its own set of advantages and challenges.

Advantages of Starting a Flooring Installation Business:

  1. Unlimited Earning Potential: Your income is directly proportional to the number of projects you undertake.
  2. Growing Job Market: The industry is expected to grow over the next decade, making it a promising venture.
  3. No Formal Education Required: Practical skills and experience are more crucial in this trade.
  4. Flexible Schedule: You can set your schedule and choose the jobs you take on.
  5. Wide Market: Every residential and commercial property requires flooring, offering a broad customer base.

Challenges in Starting a Flooring Installation Business:

  1. Business Owner Stress: As the sole decision-maker, you’ll face the pressure of managing all business operations.
  2. Physically Demanding Work: The job can be physically taxing, requiring strength and endurance.
  3. Increased Injury Risk: The risk of injury is higher due to the nature of the work.
  4. Intense Competition: The market is crowded, and you’ll need to find ways to stand out.

Acquiring Essential Skills

Flooring installation requires a specific set of skills. It’s advisable to have prior experience in construction, flooring, or maintenance before venturing into this business. You can gain the requisite expertise by working as a floor installation contractor or undergoing a relevant training course.

Alongside technical skills, you’ll also need to develop business skills to manage your company effectively. Here are some key skills required to run a successful flooring installation company:

  1. Project Management: You’ll need to manage multiple projects simultaneously, ensuring each is completed on time and within budget.
  2. Leadership: Effective leadership is crucial in managing a team and ensuring high-quality work.
  3. Communication: Both verbal and written communication skills are vital for interacting with clients, suppliers, and employees.
  4. Financial Literacy: A basic understanding of accounting and finance will help manage the business’s financial aspects.
  5. Marketing: Marketing skills are essential to promote your business and attract customers.

Unraveling the Carpet vs. Flooring Debate

As a flooring installation business owner, you’ll often encounter questions about the differences between carpet and other flooring options. While most people understand the visual differences, it’s crucial to discuss other factors, such as cost and maintenance.

Hardwood flooring typically costs between $12 and $20 per square foot, while carpeting is cheaper, ranging from $6 to $12 per square foot. Maintenance also differs significantly between the two options. While hardwood floors can be cleaned easily using a damp mop, carpets can trap dust and dirt in their fibers, making them more challenging to clean thoroughly.

Estimating the Startup Cost

The startup cost for a flooring installation business can vary based on several factors, including location, material prices, and business size. Generally, most owners spend between $10,000 to $30,000 to start their flooring company. This amount usually covers the rent for a small shop, purchase of materials, and employee wages.

While there aren’t any specific grants for starting a flooring installation business, entrepreneurs can apply for general small business federal grants. Some states also offer additional funding for small businesses. You can find these opportunities by contacting your state’s small business resource center.

Generating Revenue

Flooring companies generate revenue primarily by installing various flooring materials such as carpet, hardwood, and tile. While some companies offer additional services like flooring repairs and refinishing, the most profitable projects are installation jobs.

The average revenue a flooring company can earn from a standard home job varies based on several factors, including the type of material and the home’s square footage. However, on average, business owners can expect to charge the following rates:

  1. Vinyl or Linoleum Flooring: $1,500
  2. Carpet: $1,750
  3. Hardwood Flooring: $4,000

These averages could vary, but they give a rough estimate of potential earnings.

Crafting a Business Plan

Creating a business plan is a crucial step in setting up your company for success. A business plan serves as a blueprint for your business and is often required when applying for financing.

Your business plan should include the following sections:

  1. Executive Summary: This section offers a detailed overview of your business plan. It should highlight your vision for the company and your strategy to achieve your goals.
  2. Industry Analysis: This section should provide insights into your market, including market trends, size, opportunities, and gaps.
  3. Competitive Analysis: List out your competitors, their strengths and weaknesses, and what makes your company different.
  4. Marketing Plan: Identify your target market, their characteristics, their pain points, and your engagement strategy.
  5. Operations: Detail your day-to-day operations and how you plan to run your company. Describe the major processes involved in an installation and the steps to ensure project completion.
  6. Financial Plan: Record your estimated startup and operating expenses, financial goals, and financial projections for the first five years of operations.

Choosing a Business Structure

You’ll need to determine the best way to structure your flooring company. There are four primarytypes of business structures, namely:

  1. Sole Proprietorship
  2. Limited Liability Company (LLC)
  3. Partnership
  4. Corporation

Each structure has its own set of rules to follow. Review each carefully and select the one that aligns best with your future business goals.

Picking a Business Name

Choosing the perfect name for your business can make a difference between a successful flooring installation business and one that struggles to stay open. A well-chosen name can boost your online presence and attract potential customers.

When selecting your business name, ensure that it is:

  1. Simple to Spell and Pronounce: Your business name should be easy for customers to remember and spell.
  2. Reflective of Your Brand: The name should align with your brand’s identity.
  3. Descriptive of Your Services: It should be clear what type of services your company offers.
  4. Unique and Memorable: A distinctive name can help your business stand out in a crowded market.

Identifying Your Target Audience

Knowing your target audience can help save money on marketing and advertising. By identifying your ideal customer, you can create marketing campaigns tailored to their specific needs.

Ask yourself the following questions to determine your ideal customer:

  1. Do you want to work with residential or commercial clients?
  2. Are you targeting homes within a specific income range?
  3. What type of careers do your ideal clients have?
  4. Do you prefer new homeowners or long-term residents?
  5. What is the marital status of your ideal clients? Do they have children?
  6. Are your potential clients on social media? If yes, which platforms do they use?

These questions can help you understand your potential clients better and tailor your services to their needs.

Building a Unique Brand

After identifying your target audience, it’s time to build your unique brand. This process involves establishing a niche, defining your unique value proposition (UVP), and creating your brand identity.


Developing a niche can be valuable for your business. For instance, if your flooring company specializes in installing hardwood flooring, it’s easier to gain a reputation and market to homeowners looking for your service. However, you don’t necessarily need to narrow down your focus. You can also highlight your UVP or focus on your branding to differentiate your business in the market.

Unique Value Proposition (UVP)

Your UVP is what sets your flooring business apart. It could be anything from offering the shortest project completion time to providing special discounts to certain groups, like military members. Highlighting your UVP in your marketing material can help you win business and capture market share.


Your company’s brand can be one of the most crucial elements determining its success. Your brand should reflect your design aesthetics, niche, values, target clients, color palette, fonts, UVP, and mission statement.

Crafting a Service List

While floor installation will be your primary service, you can also offer additional services to increase your revenue and attract new customers. Some of these services could include:

  1. Polishing or Refinishing Existing Flooring
  2. Emergency Flooring Repairs
  3. Floor Matching

The price point for your services will be dictated by your market. Conducting market research can help determine what customers are willing to pay in your location.

Procuring the Necessary Equipment

As a flooring company, you’ll work with various materials, so it’s crucial to have the appropriate equipment to complete any project. Here’s a list of the most common tools you’ll need:

  1. Floor Scraper
  2. Floor Roller
  3. Floor Cutter
  4. Sanders
  5. Saws
  6. Trowels
  7. Levels
  8. Tape Measure
  9. Rubber Mallet
  10. Tapping Block
  11. Spacers
  12. Utility Knife
  13. Protective Eyewear, Clothing, and Footwear

Securing Financing

While starting a flooring installation business doesn’t require a high initial investment, you’ll still need sufficient capital to run the business during the first few months. If you need additional funds for equipment, materials, or marketing, consider the following financing options:

  1. Bank Business Loans
  2. Business Credit Cards
  3. Private Investors or Lenders
  4. Partners
  5. Friends and Family

Purchasing Insurance

Having the right insurance can protect your business from potential risks. Depending on your business’s nature and location, you might need to obtain the following insurance coverages:

  • General Liability Insurance: It offers protection against third-party claims of bodily injury and property damage.
  • Workers’ Compensation Insurance: It covers expenses like medical bills and legal fees if an employee gets injured while working.

You can get affordablesmall business insurance products from providers likeHuckleberry. With their free 60-second quoting process, you can get the coverage you need quickly and efficiently.

Completing Paperwork, Licenses, and Permits

Ensure you have all the necessary paperwork, licenses, and permits before launching your business. Since there isn’t a specific requirement for flooring businesses, check your state’s general business requirements. Most states will require you to obtain the following:

  • Business Registration
  • Business License
  • Sales Tax Permit
  • Employer Identification Number (EIN)

Also, consider opening a business bank account to keep your personal and professional finances separate.

Crafting a Marketing Strategy

Once your company is officially registered, it’s time to start attracting new customers. Key components like creating a website and posting on social media are important, but most flooring businesses primarily acquire new customers through referrals and word-of-mouth.

Ask recent customers for testimonials once installation services are complete. Having business cards on hand is also a good idea, allowing you to pass on your information to potential leads.


Starting a flooring installation business can be a rewarding endeavor, offering a stable income source and the opportunity to be your own boss. With the right planning, skills, and dedication, you can create a successful enterprise in the thriving flooring industry.

 Alex J
Alex J

Alex is the founder of the BFG, he has been in the flooring business for over 12 years and specialize in laying new floors, resurfacing old ones, and giving people practical advice on how to keep their floors looking beautiful.