The past few years have been good for the pool business. Since 2019, more and more homeowners have opted to install backyard pools, and real estate experts say that a pool can add 5 to 8% to the value of a home. While the market has cooled a bit over the past year, experts anticipate that the pool installation market will continue to grow. This increase in backyard pools also signals a greater need for pool maintenance services.

Now is an excellent time to seize the opportunity to start your own pool business. You can do that by purchasing a franchise or starting your own business from the ground up.

Buying into a franchise provides instant name recognition and a basic blueprint to start your business but comes with higher startup costs. On the other hand, starting from scratch allows you more freedom in decision-making but may have a steeper learning curve. Regardless of which path you choose, you’ll need to take specific steps to get your business off the ground:

• Decide what services to offer
• Establish your credentials
• Create a business plan
• Complete your paperwork
• Determine your pricing
• Purchase equipment
• Define your brand and find your customers

Decide What Services to Offer

A pool business can be all-inclusive or have a narrow focus. For example, while some pool businesses do everything from installation to weekly cleaning, some focus only on routine maintenance and/or seasonal openings and closings.

Installation

According to TRUiC, the initial investment for a pool installation business is from $39,000 to $65,000, and these businesses will net around $200,000 in annual revenue. Top businesses can earn more than double that number. Expert Market Research predicts that the pool installation market will increase by more than 3% over the next five years.

Cleaning

According to IBISWorld, swimming pool cleaning services have been growing over the past five years and are expected to total more than $7B this year. With just over 72,000 businesses in the industry, that amounts to approximately $100,000 in income for pool cleaning alone.

Maintenance & Repair

While some pool businesses only offer cleaning services, others also provide maintenance and repair. Adding these services can expand your profits without the extra expenses and upfront costs accompanying pool installation.

Establish Your Credentials

Successful pool professionals recommend that entrepreneurs get practical experience working in the industry before investing in their own pool business. Some states require special training and certification. The training can be worthwhile even where it isn’t required: the included training will increase your knowledge (you don’t know what you don’t know) and help consumers feel confident purchasing from your brand. You may also need a contractor license if you plan to install or repair pools.

Consider joining a professional organization like the Independent Pool and Spa Service Association (IPSSA) or the United Pool Association (UPA). These organizations often provide community and educational opportunities, plus group insurance plans.

Create a Business Plan

Creating a comprehensive business plan will help you organize, recognize, and solve any issues before they become obstacles. It will also help you get startup capital through loans or investments. This plan should include goals, the services you plan to offer, financial and marketing strategies, and a budget.

Do your homework. Ensure you know what licenses and certifications you need to operate. For example, some states require certification from the public health department. Research what other pool businesses offer and find a way to make your business stand out: service, offerings, pricing, knowledge, etc. Brainstorm names to find one that will entice customers to come to you.

Do Your Paperwork

Starting any business requires a certain amount of preparation and paperwork. The specifics often depend on your location but may include the following:

• A business license (through the state and/or municipality
• Any required business permits
• Tax forms (like requesting Federal ID and State Sales Tax ID numbers)
• Business insurance
• A business bank account
• A business office/storefront
• A fictitious name filing

Determine Your Pricing

You want to set prices that are both fair and profitable. There are several ways to determine pricing. One is cost-plus or markup pricing. In this case, you charge an amount equal to a set percentage added to your total costs. For example, a typical markup for a pool business is about 40%.

When determining costs, consider the following:

• Materials
• How many hours a job will take (multiplied by the hourly rate you pay employees)
• Fuel costs
• Overhead like insurance, maintenance of vehicles & equipment, brick-and-mortar maintenance, and salaries paid for administrative tasks

Other options include market-based pricing (based on what your competitors charge) and target-gross-profit-based pricing (based on the percentage you want to earn.)

Purchase Equipment

You will need equipment to clean customers’ pools and transport vehicles. If your business sells and installs pools, you’ll need inventory and tools to complete the work. Pool cleaning supplies include water test kits, brushes, vacuums and skimmers to remove algae and debris, chemicals to treat water and clean surfaces, and a filter cleaner. You will also need to outfit your office or storefront with computers and furniture.

Pool business software like RB’s can save money and simplify office tasks. It’s best to kick off your business with the best tools possible, and the time and money you save are guaranteed to recoup the cost of the software. Time is money — check out our Time Savings Calculator to find out how much you can save with RB software.

Define Your Brand and Find Your Customers

Announce your new company and the services you offer. Use social media and be consistent with your posting — videos are particularly popular, so encourage a culture of employees taking photos to share services rendered (while maintaining customer privacy, of course.) Portray a unified message across platforms to strengthen your brand personality. While many customers will find you online, don’t neglect traditional advertising. Have business cards to hand out and consider mailers. Be sure to mention your business to friends and acquaintances. Consider a referral program to incentivize customers to generate word-of-mouth advertising for your business.

Keep customers by focusing on excellent customer service. Optimize routes to service customers in the same area on the same day to minimize driving time. Ask for referrals and reviews, and encourage customers to sign up for email newsletters and alerts about special deals. Set up a customer loyalty program to drive repeat business. The right pool business software will make all of these things extraordinarily easier. For example, RB’s software provides you with simple rewards templates and optimizes routes for you automatically.

Build Your Business Organically

While you can find customers organically, it will take time. Sign up for a listing in a business directory, and go door-to-door with flyers or door hangers. Build a website and dedicate the off-season to promoting your business and generating new leads.

Build Your Business by Purchasing Pool Routes

Purchasing a pool route is a simple way to get many customers quickly. While it can be expensive (possibly tens of thousands of dollars), your business will be up and running sooner than finding customers on your own. Keep in mind that the cost of these routes is typically 12 times the monthly service rate of that route, so without other sources of revenue, you won’t make a profit in the first year from these routes alone.

If you choose this option, consider using the services of a broker to minimize your risk because while you will be adding customers who pay promptly, you will also gain those who do not.

RB Software Helps You with Every Aspect of Your Pool Business

Owning a pool business can be enjoyable and profitable. From billing and scheduling to ongoing customer communication, RB’s software will help you get your business organized and keep it running smoothly. Learn how in our eBook, Your Ultimate Guide to Running a Smooth and Streamlined Pool & Spa Business. If you’re ready to see the software in action, schedule a no-strings-attached demo with us today.