Starting a flooring business such as a floor installation business can be a big investment. But with strategic planning, it can also be very rewarding, both financially and personally.
If you have your eyes and heart set on becoming a floor installation business owner, read on to learn the critical steps for starting a successful floor installer business in Australia, and the important role that floor installation insurance* such as Public Liability insurance and Professional Indemnity can play in reducing your exposure to business risks.
Six essential skills for flooring installers
1. Flooring installation and repairing
Gone are the days when having average flooring skills was enough. Now your customers have access to a range of flooring business owners. As such, you will greatly benefit from demonstrating that you have impeccable skills in your chosen trade.
2. Communication skills
Communication is an essential skill for any business owner, and the flooring industry is no exception. You will be talking to clients every day about their flooring needs. As such, having well-honed communication skills is critical.
You will use these skills to convey job requirements to your team – and also to your clients.
3. Negotiation skills
While you are the business owner, you are effectively also the lead salesperson, so hone those negotiation skills – it will help you to maintain your profit margins. After all, you want your new floor installation business to be profitable as soon as possible.
4. Business management skills
Equipping yourself with the skills to manage your flooring installation business is as important as the floor installation skills you possess. Knowing how to strategically manage your flooring business will be key to succeeding as a business owner.
5. Leadership and management skills
As well as the demanding physical skills, you’ll also need to work on developing your floor covering business management skills to succeed as a small business owner. Here are some of the most important business management skills you will benefit from mastering when launching your new flooring company:
- project management;
- verbal and written communication;
- basic understanding of accounting and finance; and
- marketing and promotion skills.
Although flooring contractors don’t have to be certified to launch their own company, it’s important to ensure you have the right training and skills before you start your own business. Unfortunately, one or two bad jobs can have a significant impact on the outlook for your new floor installation business.
Before opening your own flooring business, gain the necessary skills and experience by working as a flooring contractor. This will enable you to learn more about the different types of flooring by working for another flooring business.
6. Risk management skills
Just like most professions, there are inherent risks that come with running a floor installation business, so having a strategy for reducing your exposure to risk can be key for the longevity of your flooring business. The following business insurance policies can help you manage the risks you face as a floor installation business owner.
Public Liability insurance: This is the most common type of business insurance for floor installers. It provides coverage in the event that your negligence has resulted in property damage or personal injury to a third party.
Professional Indemnity insurance: While this type of business insurance won’t be required for all floor installers, if you give advice to a client for a fee, it is something you may consider.
Portable Equipment: A flooring installer is only as good as his tools. But what would do if the expensive tools of your trade were stolen or damaged due to wear and tear?
Also referred to as Tool insurance, Portable Equipment insurance can cover your gear for a range of risks, including fire damage, damage caused in a vehicle rollover, and theft following forced entry.
How to grow a floor installation business in five steps
1. Define your target audience
As a busy small business owner, it is very hard to be everything to everyone, so don’t try to be. Instead, carefully define your target audience – the type of customer that you feel you work best with.
It may be owners of older homes with dated flooring, or restoration projects. Or you may partner with a small homebuilder to exclusively install flooring for the five to 10 projects they do each year.
Who are your main customers? You will know the answer to that question if you have defined your target audience.
2. Have a rock-solid business plan
No one is born with the knowledge of how to run a successful flooring installation business. But you will need to acquire that knowledge to succeed as a floor installation business owner. And a great way to do just that is by creating a business plan.
There are many ways to structure a business plan, so find the structure that works for you. Consider including the following in your flooring installation business plan.
3. Define your floor installation services
What floor installation services will you provide, and which will you avoid? Your flooring business may benefit if you focus on getting flooring jobs that you enjoy and that you do well.
4. Determine your initial expenses
This will include essential costs for things such as registering your business, applying for any required floor installer licences and permits you require, creating a company website, and marketing your new business.
5. Define your ‘special sauce’
Your ‘special sauce’ – or your unique selling point (USP) is what will differentiate your floor installation business from your competitors. Your USP may be the high quality of your work, or how affordable you are, or your unmatched after sales service.
How much can flooring contractors make?
While the earning potential can vary due to the size and location of your floor installation business, according to job website Indeed, the average Australian flooring contractor makes around $70,737 annually.
However, once you become a flooring contractor or an independent flooring contractor, you are free to decide how you choose to work. When starting out you may choose to work longer hours, including weekends, to quickly grow your flooring business and establish your reputation in the flooring industry.
Choose BizCover for an oh so easy floor installation insurance experience and make buying your floor insurance simple. Compare competitive business insurance quotes for your business and get covered online in minutes, not hours. If you prefer to chat, give us a call on 1300 920 867.