How to Start a Flooring Business: A Step-By-Step Guide

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Starting a flooring business is not as easy as a walk in the park. But in this blog, we have laid a proven path for you to start your flooring business in the smoothest way possible.

Flooring is a key piece in every real estate. Ever seen an office or a house without a floor? It’s crucial not just because it can’t be ignored, but it also adds a star to the decor of the estate.

Thus, the demand for flooring won’t ever fade away. In fact, it is anticipated to grow 4% every year from 2023 to 2032. Just observe around yourself to see how many new buildings are under construction. Those are a pie of the flooring market. The actual cake is even bigger.

And since you understand this, we are going to teach you how to start a flooring business so that you can take advantage of this never-ending demand.

So first, let’s start with understanding your responsibilities.

What Does a Flooring Installation Business Do?

“Isn’t it obvious?” you must be thinking. But there is more depth to it that we need to explore. So have a look at what your responsibilities will look like.

1. Installing a new floor

Usually, any new building or house under construction will need to install flooring. So, you can look to grab a contract from a constructor for flooring all its current and upcoming projects.

Installing a new floor

This one is very important because it holds the power to be your majority source of income. Reliable and elegant flooring is something that no constructor can ignore.

2. Replacing an old floor

Sometimes, you may find yourself taking out the old floor and replacing it with another. But frankly speaking, a need to replace a floor doesn’t happen often. Ask yourself when was the last time you replaced the floor of your home.

However, it offers good money once given a contract to do it.

3. Maintaining or repairing a floor

The opportunities for maintaining or repairing a floor can also pop up from time to time. For example, you may be required to replace the broken tiles of a floor or refinish the whole altogether.

Maintaining or repairing a floor

Now that you know what you will be doing, you should also realize that no business can thrive without the required set of skills needed for it.

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5 Essential Skills for a Flooring Installation Business

1. Flooring installation and repairing

We hear you say, “Duh? Isn’t it a given?”. Yes, it is. But we have mentioned it here to emphasize the importance of expertise you will need to stand out or even sustain.

Gone are the days when having average skills was enough. Now contractors or house owners have access to a lot of flooring business owners. Thus, to come to their radar, you need to gain their trust with your expertise.

So, we assume that you have this core skill. Or, at least, have employed someone in your team to provide quality flooring services.

2. Communication

Great communication is a core skill required for any venture, and flooring businesses are no exception.

Every day, you will talk to your clients about their requirements. And then, you will also need to communicate those requirements to your team. If not done well, this could end up giving your clients unwanted upsets.

So, make sure that you listen properly first and then pass it on without dropping anything. Written communication with your clients and your team will also add a lot of clarity.

3. Sales

Has any business ever survived for a long without sales? Money is the fuel of all businesses, and to refill the tank, you need to make regular sales. Thus, selling is an art every business owner needs to master.


In your case, as a flooring service business owner, you should look to strike a long-term deal with a contractor. This will ensure you some cash flow in the time to come to keep the business afloat.

4. Financing and accounting

It is a key skill in your business as it saves you from any legal trouble. Plus, it also shows you how fast you need to run to cover the expenses and make a profit.

Thankfully, you do not need to learn it from the bottom up. You can hire a professional to do this for you.

5. Leadership and management

The fate of a business heavily relies on its leader. For instance, let’s say that you need to complete a wood flooring project within a tight deadline. At that moment, your composure and ability to motivate your team will decide its result.

Leadership and management

Next in line, but equally important, is management. You need to ensure smooth coordination between your employees to get things done on time.

Apart from skills, you will also need some initial investment to launch your business. But relax. It does not need to be from your own pocket. Yes, it would be great if you have the required money to invest.

If not, you can approach a bank for a business loan or look for a partner willing to invest in your venture. However, the important question that comes up here is how much money you need.

What is the Cost of Starting a Flooring Business?

There are some costs that you cannot overlook even when you are just starting your business. So, here is a list of prerequisites and their cost.

  • Business name and legal structure – $40 – $500 for an LLC registration
  • State license – $50 – $550 depending upon the type of business permit required
  • Business insurance – $350 – $900 per year for Business Owner’s Policy (BOP)
  • Tools – $3000 – $5000
  • Vehicle – $1500 – $3000
  • Materials for your first project – Depends upon your deal with your client and its requirements
  • The wage for your workers – Depends upon your deal with them

So, you can safely assume that you will need around $10000 – $20000 to lay the foundation of your flooring business.

Pro tip – You can try to persuade your client to pay you in advance to buy the required materials with it.

Now that you have got an overview of the flooring installation industry, you are ready to start taking the steps to build your flooring company.

7 Steps to Start a Flooring Company

1. Plan your business

A successful floor installation business needs a plan to reach success. Yes, we understand that you cannot plan everything beforehand. However, spending some time to plan things out will help you set your priorities.

Plan your business

So below is a list of things that you need to include in your business plan.

  • Business name: An easy-to-remember business name helps you to be known for your service as it spreads smoothly among people. Plus, it is also needed to complete the legal formalities.
  • Target audience: Who are your primary customers? Building constructors, home/business owners, or both? Commercial or residential buildings?

    A set target audience will give you a direction to move. Once your business is set, you can always decide to expand.

  • Your services: This is meant to decide on your expertise so that you can dominate a niche. Floor installation businesses can provide varied services as we discussed earlier.

    But you need to decide where you need to focus. For example – hardwood flooring, tile flooring, and linoleum flooring are some of its types, and you can look to dominate one of them initially.

  • Pricing for various services: Pricing is one of the factors that can set you apart. For instance, you can be a high-end flooring business that looks to provide extraordinary flooring to wealthy clients.

    Or you can serve middle-class homeowners with an affordable flooring service.

  • A USP to sell your services: What is your selling point? What is a common issue in the flooring industry that you can solve with your business? What sets you apart from your competitors?

    Having a USP will help you market your services, get clients, and even attract the initial funds required.

Once you have planned your business, the next step is to make your business official.

2. Complete the legal formalities

Legal formalities like business structure and the state license are important as you may not get any contract without them. Clients trust a defined business rather than a person who fell on their path to provide the service they want.

First things first, decide what will be your legal structure. Your flooring business can take forms such as a sole proprietorship, a partnership, an LLC, or a corporation.

Usually, you should go for an LLC. But if you want to dive into the details of each of these, we recommend you to read this blog post.

Another crucial thing that you need is a state license. So once you have registered your business’ legal structure, you will need to apply for a license to start a business in your state. Here is a great guide to getting you a business license.

Voila! Now you are a Flooring installation business owner. But the work is not done yet.

3. Find your first client

At this point, you will be tempted to hire your team and buy the needed equipment. But wait. That can be risky. Before that, you need to ensure that you have enough potential cash flow coming your way to fulfill those expenses and make a profit.

So hit the road, pitch your proposal to your target audience, show your earlier experience, get leads, and convert them.

A clear USP, as explained earlier, will act as a spring while making this steep climb. Upon finding your first client, make an estimation of the project and the materials, tools, and people you will need for it.

The next milestone in this journey is to arrange the finances for your first project.

4. Arrange the finances required for your business

Now that you have a client ready to pay, you have mitigated your risk to a huge extent. This gives you a green single to make further investments as you have ensured a return with your initial client.

So this is the point where you need to find your business fuel – money. The best case scenario would be to convince your client to pay you an advance to arrange the requirements. But the world is not ideal.

Thus, the other options you can look to arrange the funding are –

  • Your savings
  • A bank
  • A business partner
  • Your friends and family

Here, having a ready client will make it easier to attract money. Upon having the funding, purchase the required tools and materials, and hire the people needed to complete your project.

5. Create a business bank account

You may be thinking that can’t you use your personal bank account. But that would actually be a mistake. Having a separate business account will ensure that your personal assets are protected in the event of bankruptcy.

This is also why we recommend you register your business as an LLC. A sole proprietorship or partnership will hold you personally liable for losses.

Thus, the effort to create an LLC and a business bank account are worth it. The next step is to save your business even before the occurrence of any mishappening.

6. Purchase business insurance

The sea of business doesn’t give entrepreneurs a smooth sail. In other words, you will most probably get into some financial trouble. At that point, you need to minimize your losses.

Purchase business insurance

But its foundation is laid when everything is going fine. Thus, invest in business insurance early on to make sure that if your business hits an iceberg, you have a side boat to sail you through.

There are many types of business insurance with different coverages. But usually, LLC owners buy Business Owner’s Policy (BOP). But if you want to explore further, here are other insurance options for small businesses, as per Forbes.

7. Set up an accounting system

A proper accounting system keeps a track of stuff like taxes, expenses, profits or losses, and salaries. Basically, an accounting system has a role to play in anything that involves money.

You can keep an Excel Spreadsheet or invest in accounting software for ease. But along with that, we also recommend you try InvoiceOwl which takes complete care of your invoices.

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It doesn’t just make it easy and digital. It also makes it professional and branded.

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So how does it feel now that you have a path laid to enter the floor installation industry with your business? But our job isn’t over until we answer your probable questions.

Frequently Asked Questions
  1. How much money can you make with flooring?

    As per Home Guide, a client pays $6 to $10 per square foot of flooring. But it can increase or decrease further depending on the type of flooring. For the flooring of an average-sized living room, you can get around $1660 to $4620.

  2. What is the cost of different types of flooring?

    This is the cost per square foot that a flooring company can charge.

    • Hardwood – $10 – $18
    • Linoleum – $3 – $10
    • Porcelain tile – $3 – $10
    • Laminate – $6 – $9


So you are equipped with all the information you need to start a flooring business. But this information is useless if you don’t act on it. Start with making a business plan to get a sense of direction and then move along to the further steps. It’s time to make the leap.

Author Bio
Jeel Patel
Jeel Patel

Jeel Patel is the founder of InvoiceOwl, a top-rated estimating and invoicing software that simplifies the invoicing and estimating processes for contractor businesses. Jeel holds a degree in Business Administration and Management from the University of Toronto, which has provided him with a strong foundation in business principles and practices. With understanding of the challenges faced by contractors, he conducted extensive research and developed a tool to streamline the invoicing and estimating processes for contractors. Read More

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