A chimney sweep company earns money by sweeping and cleaning fireplaces and chimneys. Typically, many staff serve houses, apartment complexes, and businesses. Chimney sweeping is very inexpensive to do, and chimney sweep operators may often earn a substantial profit by charging reasonable rates. Chimney sweeps are performed on a job-by-job basis, and owners may alter charges based on the duration and intricacy of a project.
Plan your Chimney Sweep Company
Create a legal entity for your chimney sweep business.
Taxes must be registered for your chimney sweep business.
Create a Business Bank Account and a Credit Card
Set up Accounting for your Chimney Sweeping Company
Get the Permits and Licenses You Need for Your Chimney Sweep Business
Purchase Chimney Sweep Business Insurance.
Define your Chimney Sweep Company Brand.
Make a website for your chimney sweep business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning a chimney sweep company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
The initial expenses for a chimney sweep company range from $27,000 to $87,000, depending on the organization’s size, equipment, and supply requirements. This cost covers the franchising procedure, a small workshop, and cleaning supplies. Operating the company from home might save expenses, but liability coverage and other insurance requirements will remain.
Residential homeowners and small to medium-sized company owners will be your target market. Generally, you’ll steer services to households that have chimneys. In terms of commercial buildings, seek for factory, retail, and manufacturing plant owners that possess many chimneys. Clients with more chimneys should be your core market since your earnings will be determined by the quantity of chimneys cleaned. You may also target real estate investors that possess a number of rental homes that need maintenance.
Cleaning, repairing, and retouching chimneys and fireplaces generates revenue for a chimney sweep service. Some chimney sweep companies may also provide roof repair, roof cleaning, and gutter cleaning. While the majority of chimney sweep companies charge by the number of chimneys cleaned, others charge by the hour.
Rates are determined by the state of the chimney. A simple inspection and sweep might cost between $125 and $250 for a single property. Commercial and industrial works with many chimneys sometimes get a cheaper fee per chimney.
A competent chimney sweep may earn between $25,000 and $50,000 per year. A chimney sweep’s company owner who is knowledgeable about services, marketing, and management may earn six figures per year.
Generate sure the chimney sweep offers a variety of services if you want to make more money. In addition to chimney cleaning, you should provide chimney inspection and repair. You should also provide roof and gutter cleaning. Because many chimney sweep companies just provide cleanings, any extra services will increase your marketing possibilities. Having various payment alternatives might also help your firm become more successful.
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your chimney sweep company is sued, becoming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
Personal asset protection requires the use of distinct business banking and credit accounts
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run a chimney sweep company, some state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Before beginning a new job, chimney sweep companies might consider asking customers to sign a service agreement. By defining payment terms and conditions, service level expectations, and intellectual property ownership, this agreement should clarify client expectations and reduce the likelihood of legal problems. Here’s an example of a service contract.
When you join up for Rocket Lawyer’s premium membership, you can easily write a professional service agreement for your chimney sweep company. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
Locally, you should advertise and sell your services. Distribute advertising brochures to retailers, maintenance companies, and cleaning personnel. Because you’ll be working with a referral scheme, your network is important. Promote your services on social media as well. Your customers will eventually market your company for you.
Customers should be attracted by advertising via local organisations and maintenance groups. While chimney cleaning is necessary, it is often bought as an add-on service. As a result, being linked with roof cleaning companies, gutter repair operations, and other general contractors will help you retain consumers. Once you’ve got a customer, they’ll probably remain around for the sake of convenience. That being stated, you must ensure that your offerings continue to fulfil and exceed their expectations.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.