How to Start a Floor Covering Store

Opening a flooring business doesn't have to be difficult.

New flooring is one of the easiest and cheapest home improvements that homeowners can make, promoting a growth industry even in a tough economy. Fortunately, it is easy and straightforward to open a floor covering store. With proper research and preparation, anyone can build a successful business in this field. Existing business or flooring knowledge is very helpful, but not essential. If you are new to either area, you should bring in a partner or hire someone with the expertise you need.

Instructions

1. Your first step should be to pick your business entity. The main choices are: sole proprietorship, LLC, or corporation. Speak with an accountant to determine which is the best choice for your financial and tax situation.

2. After choosing the types of flooring products you want to offer (vinyl, wood, carpet, tile and such), contact local distributors and set up ordering arrangements and lines of credit. They will put you in contact with sales representatives who will give you free advice and product displays for your store.

3. Use a real estate agent to help you pick a good location for your store. Focus on high visibility and low expenses. At a minimum, you will need a showroom and a warehouse for product storage.

4. Hire employees as needed. The showroom is usually staffed by hourly or commission-based employees, but if you also intend to provide installation services, know that many flooring companies use subcontractors for those services. Your accountant can explain the tax benefits of using subcontractors versus employees.

5. Advertise your new business in local publications and online. Also, networking with local builders, architects and public institutions will help generate business over time.

Tips & Warnings

• Unlike employees, sub-contractors can be difficult to schedule and supervise. Weigh the benefits against the disadvantages when making these decisions.

References

• suncorpfilings: Business Entity Comparison Chart

Resources

• Small Business Administration: General Information On Starting a Business