How to Start a Tile Business: A Complete Guide

Flooring is an integral part of buildings. Every day, we see people erecting new buildings and others remodeling their buildings. So as long as this trend keeps on the tiling business can never run out of business.

However, there's more to starting a tile business than simply registering your business with your state. There are some considerations to factor into and a few steps to take. So if you are looking to tap into this market and reap from the profitability potentials embedded therein, this article will cover a few actionable steps on how you can start your tile business from the scratch.

Beginner's guide for a tile business

Begin by drafting a plan

To boost success in any entrepreneurial endeavor, you need a clear picture of where you are and where you have to be. So, getting a clear plan will help you map out the highlights of your business and the uncertainties. Before starting out you have to ask questions like:

v What business name best represents my brand?

v What will you be my price range?

v What are the ongoing and start-up costs that will potentially incur?

v Well, we've done a bit of research for you to help you streamline this decision

Where you will need the most significant investment is your actual space. So, sit down, take your time, and pick an accessible location with good parking space. The amount for rent may vary depending on the region you find yourself. So be sure to conduct research and find the average price around you and stop.

Once the location is set, start getting your showroom ready. A few considerations you have to factor into your budget are your fixtures, insurance, and tools for marketing. At some point, you also have to consider your point of sale software, computer accessories, and inventory.

Now let's examine the ongoing cost. When planning your business you have to factor in expenses such as your payroll, your annual insurance policy, inventory management cost, and your networking cost. These are the ongoing costs you are bound to spend as a tile entrepreneur.

There are several ways to make money from a tile business as well.

You can make money by installing tiles or selling them to local contractors and individual customers. In fact, you can throw tile maintenance and repair into the mix depending on the needs of your immediate environment.

How much you can charge your customer depends on the size and the quality of your tiles. Advisably, conduct extensive industry research into competitive pricing. Lastly, you have to determine a name for your business. Be sure that this name is available for a domain as well, in case you’re looking to go digital.

Choose a business structure.

There are four major forms to choose from, including LLC, sole proprietorship, partnership, and corporation. When you choose an LLC, this form will lift liability from you in case your business gets involved in any lawsuit. You can meet a registration agent to complete this for you. Further, be sure to be in sync with the taxation standards relevant to your state and country.

Further, depending on your preferred business structure, different taxation standards may apply to you. These standards also differ by state. So, do due diligence and find which one best applies to you.

You need a bank account

To protect your personal assets, you need a separate business bank account. If perhaps you mix both accounts, you may subject your personal assets to risk if your business gets involved in any lawsuit. They call this piercing your corporate veil in the corporate law ecosystem.

Create accounting management frameworks

You need practical insights into your revenue and expenses. This gives you a clear picture of your business's financial health. You will better understand where you’re lacking and where you need to direct your efforts. Also, accounting makes your yearly tax filing seamless.

Get your licenses and permits

Operating a tile business without the relevant licenses and permits may lead to considerable fines. In extreme cases, the regulating bodies might even shut down your business, leading your efforts down the drain. So, depending on your location, find out the licensing requirements from your state and national registration bodies. All in all, make sure your service contracts, certificate of occupancy, and other relevant certifications are in place.

Insurance

To make sure that your business runs lawfully and safely your insurance is just as important as your licenses and permits. In case of an unforeseen loss, your insurance is what gets you covered.

Depending on the business form you choose earlier, the type of insurance that applies may differ. Each insurance comes with its own supported risk as well. But of course, you don't know the kind of risk you might meet at some point in your business. So it is advisable to go with general liability insurance. Also, you might need workers' compensation insurance. This will help you cover your employees on all fronts.

Branding

Now, you have to identify what your brand stands for. This is what branding does. It influences how people perceive you and your company. So set up a marketing team to oversee the creative aspect of your branding. If you don't have enough funds to set up a marketing team, outsource your branding to a Freelancer. Let your logos, colors, landing pages, and other elements tell a cohesive story.

Develop a business website

A website can skyrocket the legitimacy of your company while exposing you to an even broader audience base. Tools like Shopify and WordPress can allow you to create a full-blown business website without the faintest idea of how to write code. So, be sure to leverage them.

To better position yourself as a legit business ensure that your website contains high-quality pictures of the actual tiles. Also, include testimonials reviews, and feedback comments to allow people to see the service they can potentially expect from you.

With all this considered you can have a full-blown tiling business running within a few months.

We will answer you personally if you have further questions. Do not hesitate to contact us at fspowell@fspowell.com.