The Mold Remediation industry is growing rapidly & the profit potential of this business is very high.
So if you are wondering how to start a Mold Remediation Business, then make sure to go through this guide till the end, as we have shared a step-by-step process and answered all the questions that may pop up in your mind while casting a business plan.
How To Start a Mold Remediation Business?
Here’s a step-by-step guide on how to start a Mold Remediation Business:
1. Do Business Research & Form a Business Plan
The first step in starting any kind of business is to do research. So start analyzing the market and see what the demand is for mold remediation businesses in your area. Apart from this, there are a few important questions that you should ask yourself:
- What is the initial investment required to start a Mold Remediation Business?
- How lucrative is the Mold Remediation Business?
- What are the ongoing expenses of a Mold Remediation Business?
- How should I Price my Mold Remediation Business?
Well, luckily, you do not have to go through the pain of doing such extensive research as we have done the work for you & have answered all these questions below:
1. What is the initial investment required to start the Mold Remediation Business?
The initial investment required to start a Mold Remediation Business is rather small compared to other businesses.
You will need to purchase only a few pieces of equipment like a dehumidifier, scrubbers, air movers, etc., which will not cost you more than $2000-$3000.
Any extra amount of investment can vary depending on how many people you choose to employ under you and the amount you are willing to spend on marketing, advertisement, etc.
You can increase or decrease the budget as per your choice. But keep in mind that $2000-$3000 is the minimum initial investment amount you will need.
2. How lucrative is the Mold Remediation Business?
The investment cost is way less than the profit you can make from a Mold Remediation Business. A small job can earn you $500-$1500, while a larger job can help you make $3000-$6000.
As you can see, in no time, you will be able to cover the investment cost that you initially put in & you will be able to make handsome money from this business.
3. What are the ongoing expenses of a Mold Remediation Business?
All businesses incur ongoing expenses; now, this could include your technician’s salary, equipment purchase in case they break down, travel expenses, insurance, etc.
So you will have to consider all these expenses and have enough corpus to fund the ongoing expenses of your business.
4. How should I Price my Mold Remediation Business?
On average, Mold Remediation business owners charge $13.33-$28.33 per square foot, based on the severity of the mold.
Mold affects the walls a lot, so you may also have to repair the wall. You can charge $168-$495 to repair a drywall.
You might also have to repair a leaking roof, for which you can charge $413-$1,150, etc.
2. Choose A Business Name & Logo
Once you have a plan & are done with your initial research, the next step would be to choose a business name & logo.
While choosing a business name, you should keep in mind that it is short & easy to remember, and the logo you choose should be classy and attractive.
You can either design the logo yourself by using apps like Canva, or you can hire a professional for the same. Both things should be as such that people find it easy to remember.
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3. Secure A Tax Identification Number (TIN)
A Tax Identification Number or employer identification number (EIN) is a 9-digit number that works like a social security number for your business.
Please note that without this number, you won’t be able to file your income tax returns, insurance, or licenses. So make sure to get your TIN number; you can even do it offline or online.
4. Register Your Business
Before starting out delivering your services, you will need to register your mold remediation business.
There are four different ways in which you can do this, and each has its own pros and cons.
- Sole proprietorship: This is the easiest type of business to set up, but it offers no personal liability protection.
- Limited Liability Company (LLC): This type of setup limits the liability exposure of investors and allows extra protection & flexibility in business operations.
- Corporate organization: In this type of set up board members selected by shareholders run things. It also involves conducting meetings every three months with the stockholders.
- Partnership: This type of setup offers personal liability protection, and you do this involves the owner plus one or more than one business partner.
5. Open A Business Bank Account
While starting a mold remediation business, or any kind of business for that matter, you should open a business bank account that remains separate from your personal bank account.
Having a business bank account can:
- Help you in filing & saving your taxes.
- It can help to calculate the profits and losses.
- It can help in maintaining and managing accounts easily.
There are different types of bank account options, and you can choose the one that you like the most:
- Checking Account: This a very popular & common type of account that offers a variety of features and benefits. A Checking account allows you to transfer and withdraw money as and when you need. And you can also use it to write checks to suppliers.
- Savings Account: Savings account is another great option to consider. This type of account pays you interest which can be good for your mold remediation business reserve. However, you should know that savings accounts offer lower interest rates as compared to checking accounts, and it also imposes some withdrawal limits.
- Business Credit Cards: Business Credit Cards are more robust and allow you to make large purchases and in building your credit. However, you should know that this type of card incurs annual fees and also charge a high-interest rate.
6. Obtain Licenses & Insurance
There are a couple of insurance and license options that you will need to acquire depending on what kind of service you will be offering, your location, etc.
It is best to get in touch with your local state authority to know more about the license requirement of mold remediation businesses in your area.
You will also have to get insurance to keep you and your business safe from any liabilities or risks.
Here are a few types of insurance that you can get:
- General Liability Insurance
- Workers’ Compensation Insurance
- Business Insurance
- WSIB insurance
- Policies for Protecting Property and more
7. Purchasing Supplies, Equipment & Tools
You will obviously need the relevant equipment, supplies, and tools for your mold remediation business.
Here are some tips that will be helpful to you:
- Get in touch with various suppliers and deal with the one who you find the most helpful.
- You can either buy the equipment or you can even lease them. Determine which option you want to go with as per your budget.
- You do not want to get short on your business-related items, nor should you hoard them. So make sure you keep track of your inventory and keep them updated.
8. Market Your Business
The last but important step in successfully running a Mold Remediation business is to market your business.
Without doing the proper marketing, you won’t be able to reach your customers, and you will not get any business.
So to market your business, you can go the traditional way and use flyers, pamphlets, advertisements, etc., or you can hire a marketing agency for mold remediation business.
People are taking their businesses online today because that makes it easy to reach more number of your target audience.
And did you know 71% percent of mid-size businesses advertise their businesses on social media?
You can opt for getting a website designed, you can opt for email marketing, or digital marketing to reach people over the internet.
The options are endless, and you can choose the one that fits your budget and helps you in gaining the most number of leads.
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How To Start A Mold Remediation Business? – Wrap Up
So starting a Mold Remediation business is not as difficult as you think; if you have a proper blueprint and set plan on how to start a Mold Remediation business, then half the work is done.
Also, this business does not require as much initial investment as other popular services, and its profit potential is also excellent. We hope you found this guide useful.
What All Tools Will I Need For Offering Mold Remediation Services?
Mold Remediation requires you to have the following type of tools:
- Particle Scanners & Counters
- Tape Lift Test Kit
- Digital Moisture Meter Probe
- Infrared Cameras
- UV Flashlight
- Air Scrubber, etc.
How Can I Make More Profit As A Mold Remediation Business Owner?
You need to be honest and consistent with your services. Focus on the quality of your business service for repeated customers.
You can also give out referral programs and focus on building a network to gain more customers and make more profit.
What is the difference between mold remediation and mold removal?
Remediation involves removing the contaminated mold and materials, whereas mold removal involves the removal of the actual mold from the surfaces and not the material.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.