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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on May 21, 2021
Investment range
$8,550 - $15,100
Revenue potential
$100,000 - $200,000 p.a.
Time to build
1 - 3 months
Profit potential
$60,000 - $80,000 p.a.
Industry trend
Growing
Commitment
Flexible
These are the key elements to think about when starting your pest control business:
Before you take any big steps, you’ll want to know the dynamics of the pest control market to help you establish a solid foundation for your business. Start by analyzing the pros and cons of a pest control business.
It’s a good idea to know both the good and bad of a potential business opportunity before you dive into it.
Two of the top trends are bundling and an embrace of technology. This uptake of the latest innovations is sure to continue as the industry finds the most efficient ways to deal with pests.
The latest trends shaping the industry include:
Challenges faced by the industry include:
If you work from home and already have a vehicle, you could launch a pest control business for as little as $8,000, though you should probably expect to spend $10,000 or more to get your business up and running.
If you’re looking to start big, with an office and staff, expect to spend $50,000 or more.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 - $200 | 175 |
| Business licenses and permits | $100 - $300 | 200 |
| Business cards and brochures | $200 - $300 | 250 |
| Used truck | $2,000 - $5,000 | 3500 |
| Equipment and supplies | $5,000 - $6,000 | $5,500 |
| Insurance | $100 - $300 | 200 |
| Website setup | $1,000 - $3,000 | 2000 |
| Total | $8,550 - $15,100 | $11,825 |
The profit margin for a pest control service is around 60%, with labor generally being the biggest cost, of about 25% of revenue.
In your first year or two, you could work from home and earn $100,000 in annual revenue. This would mean $60,000 in profit, assuming that 60% margin. As your brand gains recognition, annual revenue could double to $200,000. At this stage, you’d rent a commercial space and hire additional staff, reducing your profit margin to around 40%. You’d still make a tidy profit of $80,000.
Expanding regionally could increase those totals significantly.
Barriers to entry for the pest control business are relatively few. Some of the challenges you’re likely to encounter include:
You can overcome these barriers to entry by conducting in-depth market research to help you prepare for unexpected challenges.
You now have a bird’s eye view of the pest control market. The next step is to narrow your focus to help package your services in a way that meets the market demand. Here’s a breakdown of what you need to do.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
The pest control industry is highly competitive. Your immediate competition will be other pest control businesses in your area and national brands. You can conduct a quick Google search to find out who these competitors are, then review their service offerings and prices.
Even with strong competition, you can carve out a niche by identifying a services gap or under-served market segment.
Maybe your competitors are slow to respond, too expensive for working-class residents, or fail to adequately deal with termite infestations. Ask around, talk to locals and see what’s in need.
Are your competitors using outdated technology? Introduce innovative pest control strategies. What’s the user experience on their website? Introduce live chat. Do your best to stand out from the crowd.
A pest control service hires licensed professionals to help property owners remove, manage, and exterminate pests and vermin from inside and outside of their living space.
As a pest control business owner it is also your job to implement various extermination and control methods including, traps, physical removals, or sprays.
The average rate for a pest control visit ranges from $180 to $550, depending on the type of pest and level of infestation, as well as the area.
Most exterminators charge $300-$500 for one-time visits and about $180 for an initial visit in an ongoing contract.
While pricing structures may vary from one pest control business to another, be sure to know the average rate in your area to help guide your pricing. Ideally, you want to stay within standard rates in your location.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Picking a target market allows you to focus on clients likely to purchase your services. It also ensures that you direct your marketing efforts toward the right customer. Moreover, determining your target audience enables you to craft specific messages that appeal to potential customers.
Ideal customers that your pest control company can target include:
The more accurately you can describe your potential customer, the easier it is to determine who to target.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to pest control.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your pest control business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a pest control business. You might also try crowdfunding if you have an innovative concept.
Starting a pest control business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You can visit the Association of American Pesticide Control Officials to learn more about your state licensing requirements. But you’ll need the following to run a pest control company:
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your pest control business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as GorillaDesk, ServiceTitan, and Housecall Pro to schedule jobs, manage your team, and collect payments.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your pest control business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your pest control business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a pest control business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in pest control for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in pest control. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from home, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a pest control business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
You’re now ready to start controlling pests, especially if you embrace technology! Industry leaders like Rentokil are using image recognition tools powered by artificial intelligence to detect and kill many types of pests. This uptake of the latest innovations is sure to continue as the industry finds more efficient ways to deal with pests.
In most cases, pest control is an 8 am to 6 pm job, but since an infestation can emerge at any time, you need to be ready to respond at a moment’s notice. This sometimes means working weekends and odd hours. Good luck!
The outright answer is no. However, it is essential to mention that pest control is a little bit different than most businesses. For starters, you must have an operator’s license to be allowed to run your company. The training equips you with skills such as how to handle harmful chemicals and various pest control methods. Of course, you also need to know a thing or two about business management.
You must have the necessary training to become an effective pest control technician. A trained pest controller has an in-depth knowledge of pesticides, insecticides, and other chemicals. The person also knows how to bait and identify pests based on their nest, damage caused to property, and droppings.
You can generate leads for your company by optimizing your website for search. Further, you may want to join social media groups and pages where your target customers are likely to hang out. Other lead generation tactics for pest control business include email marketing and Pay-per-click (PPC) advertising.
Pest control services are essential for both residential and commercial properties, and there is often a consistent need for pest management. By providing effective services, maintaining a loyal customer base, and implementing efficient operations, a pest control business can be profitable.
Businesses that commonly require pest control services include restaurants, hotels, food processing facilities, warehouses, healthcare facilities, retail stores, and property management companies.
Integrated pest management (IPM) is a widely used and effective approach. IPM focuses on a combination of strategies such as inspection, identification, prevention, and targeted treatments. It emphasizes minimizing the use of pesticides and adopting environmentally friendly methods, while also considering the specific needs and biology of the pests.
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