Are you wondering how to start a carpet cleaning business? This guide will help you.
Carpet stores are an excellent business idea because flooring is among the cheapest and most commonly used home improvements and renovation alternatives for homeowners. To set up your showroom, you'll need a substantial upfront investment, and it is crucial to take the right steps to make your business as profitable as possible.
In most cases, starting a carpet cleaning company is the same as starting a business in every other field. You'll have to develop your business strategy, complete the registration process, secure financing for your business and do other basic steps. Being a carpet cleaning business owner will require specific knowledge.
Did you know?
The global carpet market's future is bright, and there are numerous opportunities in the transportation, residential and non-residential segments. According to the experts, the carpet industry's growth pace will be a CAGR of 2.6% from 2018 to 2021.
Easy Steps on How to Become a Carpet Manufacturer in India
Easy Ways to Start a Carpet Business
1) Know the Potential Market for Carpet Making in India
Carpets are flooring coverings that are mostly made from dense webs of wool. They can be classified according to
- Carpets made by hand
- Carpets that are manufactured
The potential for market growth of carpets can greatly contribute to domestic and international demand. Furthermore, carpets exported from India will be worth ₹137 crores in 2021.
Additionally, the market for carpets is increasing due to the handcraft and the artisanal labour-intensive high-quality work that attracts locals and foreigners. Distinctive regional art is associated with carpet production, especially in Agra, Jaipur, etc.
The potential market for this type of business could further be discussed and delved into the following aspects. For instance, you could make use of the following carpet fabrics.
- Nylon
- Wool
- Olefin
- Triexta
- Polyester
- Carpet with a low pile
- Carpet with high pile
- Medium pile carpet
Also Read: Exploring the Best Carpet Manufacturers in India
2) Make a Business Plan
Making an effective business plan is important for this type of business. The first step is determining the need for the particular type of carpets available. Also, decide on the type of carpet. Then, only then you will be able to decide on the price, the machinery and the manufacturing procedure.
In addition, you should check the cost available for this kind of carpet. Finally, you must decide the type of carpet you will create. Additionally, you need to include the cost of the product and the marketing plan for your carpet.
3) Permissions, Licences and Registrations Needed to Begin a Carpet Manufacturing Company
The necessary licences for running a carpet making company would be:
- Aadhar card
- OPC Registration
- PAN
- MSME Udyog Aadhaar registration
- Trade licence
- GST Registration
If you're planning to establish a carpet manufacturing business, these are the registrations and licences you need to obtain before starting the business.
- Certificate for pollution
Carpet making business deals with selling plastic and other products that could pollute the environment. For security reasons, it's better to obtain pollution control certifications from the polluting control boards.
- GST registration
You will need to complete your GST registration and obtain your distinctive GST number.
- Firm registration
Register your company, whether as a sole proprietorship or partnership company, is necessary.
- Licence for trade
- You have to apply to obtain a trade licence with your local authorities.
- SSI Unit Registration
This registration for the SSI unit allows you to avail yourself of the government subsidy and other benefits. To do so, you'll have to open a current bank account with your company's name.
- Trademark
If you want to ensure your brand's protection, you should submit a trademark registration application to the municipality in the region where you've decided to begin your carpet business.
- MSME/SSI registration
MSME Udyog Aadhaar online registration must be obtained and is required for every company to begin. It allows you to reap the benefits of all government programs for your business.
- Licence for a Shop
You must obtain a shop licence before operating your carpet shop.
- IS 4955-1968
The BIS registration and the IS 4955-1968 registration must be completed for carpet products used in the home and, in addition, to start a distribution system for your business. To do this, you must sign a 'distribution agreement'.
4) Purchase a Carpet Making Machine
Currently, there are software-operated carpet-making machines available on the market. These machines allow you to make different decorative carpets based on your preferences. It is normal to produce 17-20 metre wide carpets with the help of these machines.
The machine is one-tone-line computer-generated jacquard round carpet machine. In reality, these are computers with different functions, and they can do all secant, full terry cutting circles, high, low and loop piles.
You can also use this machine to create an eight-colour carpet. Carpets have a more varied colour. Using the automated shear line, lower the bottom line that is buried and the wool density of the blanket surface increases. The carpet's surface weight decreases the cost of production.
The list of machines needed in the carpet business:
- Stitching machine
- Shearing and cutting machine
- Tufting machine
- Machine to coat the back of the machine
- Machine to extract wool
- Digital printing/printing machine
- Dying machine
- Yarn heat setting machine
5) Customers to Target in Carpet Business
The customers you want to attract for your carpet-making company are:
- Restaurants and hotels: They require carpets to decorate a nice space, usually near the entrances and to tile floors.
- Carpets for meditation centres: Carpets are used in many meditation centres that require participants to do floor meditational exercises to give them peace.
- Carpets for households: They are needed for their living spaces and bedrooms. It also helps to ensure a secure environment or flooring to let children play.
- Exhibitions: Handicraft exhibits and artisanal exhibitions could be targets that will draw domestic tourists and foreign visitors.
- Theatre halls: Movie theatres and multiplexes require carpets with high pile materials to create a sense of glamour while allowing people to take pleasure while enjoying movies in the theatre.
- Commercial office spaces: Massive contemporary and modern offices use carpets to maintain a stylish look. It is especially true for conference rooms, corridors and cabins.
6) Procure Raw Materials
The most important raw ingredients are cotton, synthetic yarn, wool, chemicals and dyes. Additionally, you can make use of synthetic fibres or jute. The specific requirements of the raw materials are contingent upon the kind of carpet you wish to make. Furthermore, you'll have to purchase the packaging materials as well.
7) Need for Manpower to Start the Carpet Business
The necessary workforce to start this carpet-making enterprise is
- Five untrained workers
- Three skilled workers
Also, be wise and save time while calculating the salary of your workers by using an online salary calculator.
Additionally, you should provide proper training for the following with diligence.
- Security and safety precautions
- Equipment handling
- Machine use
8) Review Your Cost & Investment of Carpet Making Business
The cost to start an enterprise in carpet manufacturing will depend on the size of production besides the amount of work. In the beginning, establishing a small carpet manufacturing business requires an investment of ₹10 Lacs up to ₹15 lakhs. Additionally, you'll need at least 1000 square feet of the area to produce carpets.
In essence, carpet manufacturing is a tradition-based business. Today, with the tech-advancement, it's possible to make and sell carpets in various easy ways and make money.
Also Read: Most Profitable Manufacturing Business to Start in India
9) Marketing Strategies to Promote Your Carpet Company
The methods of marketing that you can adopt in your carpet-making business
- Cash/Bulk offers to regular customers
- Include interior designers with professionals.
- Participate in events, fairs and exhibitions
You can advertise through social media sites. It is possible to test through B2B or B2C websites and then sell the product. Show the designs of your products in close stores, restaurants, hotels, etc.
Conclusion
Setting up an enterprise for carpet cleaning does not require hiring employees. In addition to the initial investment in equipment, your ongoing expenses are relatively minimal for your carpet selling business. It is possible to start your business from your home also without having to rent/buy the business premises.
In India, you can already see many people operating from the ground floor of their homes only. You can surely attain success after these lubricative ideas about the carpet manufacturing business.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
