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The pest control industry is a promising, growing industry that offers plenty of opportunities for entrepreneurs. If you enjoy helping people, solving problems, and have great attention to detail, then a career in the pest control industry might be right for you. When you start your own pest control business, you’ll be in charge of everything from your marketing to your scheduling, and you’ll probably encounter all sorts of different pest problems that require some creativity to find a solution. 

Business Overview

Pest management is a broad field, and pest control businesses may specialize in certain types of pests or use certain treatment and prevention methods. Some businesses also cater to commercial businesses in need of pest control, while other businesses market to residential needs. 

Pest management may address all sorts of animals, including bed bugs, ants, termites, rats, mice, ticks, mosquitoes, and more. According to the National Pest Management Association, infestations can compromise a building’s structural integrity and overall safety. Pest control also helps to protect the food supply and the health of the public. 

While many entrepreneurs may choose to start their own pest control businesses, large existing pest control companies do offer franchise opportunities that can streamline the process a bit. 

Industry summary

The pest control industry has undergone recent growth in the United States. From 2014 to 2019, the industry experienced 4.3 percent annual growth, according to IBIS World. During that time, the number of pest control businesses in the country grew to 27,410, and industry employment also increased to 134,291. In 2019, the industry is expected to bring in $16 billion in revenue.  

This significant growth is partially due to the increased prevalence of bed bugs in the country, and the corresponding need for prevention and extermination services. Bed bugs are typically found in hotels, but as their numbers spread, they were found in unusual locations such as in offices, clothing stores, and movie theaters. This increased commercial need, paired with the ongoing residential need for pest control services, created a boost in the industry’s demand and profits. 

Industry trends

Workwave predicts that a number of trends will continue to shape the pest control industry. Bundling services has become a wise business decision, since it can increase a business’ profits while still allowing customers to choose the level of services that is appropriate for their needs. With bundled services, a la carte payments and choices are eliminated, allowing technicians to perform multiple services on one visit, increasing efficiency.

With the many advancements in the technology that makes communication even easier, pest control companies will need to take advantage of these opportunities. With text, email, and social media all readily available, companies can leverage these communication options to improve the customer experience. By showing that they truly value their customers and go above and beyond to communicate, businesses can gain recurring customers and potentially referrals, too. 

Recently, the pest control industry has also seen many consolidations where larger companies buy smaller businesses. This trend is unlikely to slow down, as over 30 high-profile acquisitions took place in 2018 alone. This means that the market is hot, and smaller companies may have acquisition and merger opportunities. Alternatively, small companies can work to set themselves apart from larger companies, and can use their small size as a marketing advantage. 

Who is the target market for your pest control business?

Typically, pest control businesses market to either a residential or a commercial customer base, though some businesses market to both audiences. Property owners are usually the primary audience, with specific markets comprising hotel owners, store owners, homeowners, and rental property owners. 

Skills, experience, and education useful in running a pest control business

You won’t need a business degree to start a pest control business, but certain skills and experiences can contribute to your chances of success. 

Pest control experience. The more experience that a business owner has in pest control, the better. Apprenticing under or working with a professional pest control company will provide a business owner with valuable skills and knowledge they can apply in their own business. Experience in pest control and knowledge of the chemicals used can also increase a business owner’s chances of passing the exam required for a pest control license. 

Attention to detail. Identifying pest issues and finding the best control strategy is all about details, and when handling chemicals, absolute attention to detail is necessary for an effective yet safe application. 

Customer service skills. From answering the phone to presenting a professional demeanor during a service appointment, a pest control business owner needs strong customer service skills. Good customer service will contribute to the business’ reputation, making this skill particularly important. 

Sales skills. A pest control business owner who has some sales experience can potentially increase the business’ profits by upselling services, such as by encouraging customers to sign up for a multi-month maintenance plan. 

Management experience. If a business hires employees, the owner should have some management experience in areas like conducting interviews, training, and managing staff. 

Physical stamina. Pest control is a physically demanding job, and may require climbing, kneeling, crawling, and more. An owner will need good physical stamina to get through multiple appointments each day. 

Financial Overview

Plan to invest some significant money upfront to start a pest control business. A vehicle, chemicals, and supplies are required, and these expenses will double or triple for businesses with multiple vehicles and employees or teams. Plan to spend at least $40,000 per vehicle and supplies.

Common startup costs for a pest control business include: 

  • Vehicle (truck or van)
  • Pest control chemicals
  • Equipment, including sprayers and traps
  • Safety equipment
  • Signage

Working capital

Any pest control business depends on working capital to cover operating expenses each month. These operating expenses include supply purchases, gas for the vehicles, and employee salaries. If the working capital gets tied up in purchases, such as chemicals that aren’t used, and the business doesn’t get enough calls to replenish that working capital, it will be difficult to keep the business running. 

Insurance

Pest control businesses need a number of insurance policies for full coverage: 

  • Commercial liability insurance protects the business if a customer is ever injured by the result of an employee’s actions or because of the business’ pest control treatments. 
  • Commercial property insurance covers the cost of equipment that could be lost or damaged in a fire or another event. 
  • Workers comp insurance covers expenses like lost wages or medical bills if an employee is ever injured while working. 
  • Commercial vehicle insurance protects the business’ vehicles that are used for business use, offering coverage in case of an accident. 

The costs of insurance policies will vary based on the business’ location, the value of its equipment, and even the number of employees on staff. To get the best idea of what insurance will cost, request quotes from multiple insurance providers. Compare the quotes, paying attention to factors like premiums, deductibles, and coverage limits and exclusions. 

Common operational expenses

A pest control business will need a budget that will cover both the above startup expenses, as well as the following operational expenses. 

Employees

Depending on the size of a pest control business, one or more additional employees may be needed. Indeed states that pest control technicians make average salaries of $39,929 per year. When hiring employees, remember not only to budget for salaries, but also for additional expenses such as workers comp insurance, health insurance contributions, unemployment insurance, and paid time off. 

Marketing

The good news is that many customers become recurring pest control customers, but a business still needs to market in order to bring in new customers. Pest control businesses use a variety of marketing techniques, including online advertising, print advertising, radio advertising, and direct mailers or flyers. The cost of marketing will vary depending on the type and volume, but expect that marketing will be an ongoing activity and expense. 

Licenses & Permits

To operate a pest control business in most states, you will need an exterminator license. According to Career Trend, the procedures, requirements, and fees to get this license will vary from state to state, so it’s best to check with your state’s governing body to understand the specific requirements. In most cases, you’ll need to take a pesticide application course, then sign up for and pass the state’s examination. Once you’ve passed the examination, you’ll fill out an application and pay a fee for your license.  

In addition, a pest control business owner also needs to attain any business licenses or permits required by their town and state. 

How much can you potentially make owning a pest control business?

The profitability of a pest control business will depend on its location, profit margin, the amount of business it does, and the amount of time that it’s been in operation. Entrepreneur.com reports that pest control business profits can exceed $75,000 per year. Remember that the number of vehicles and employees in the operation can also affect your profits and overall income. 

Things to consider before starting a pest control business

Running a pest control business is tough work, mainly because of the working conditions. Pests are often in hard-to-reach areas like crawlspaces and attics, and you may need to access those spaces in the hot summer or cold winter. This job can have health implications, too, if you inadvertently bring pests home with you, such as when treating pests like bed bugs. Comprehensive training and precautions can help to prevent this. 

Proper chemical handling knowledge and protocols are essential not just to your clients’ safety, but to yours as well. Be sure that you always follow local regulations for the storage, handling, and transportation of the chemicals that you use, and have a cleanup protocol in place for spills.

Resources: 

National Pest Management Association

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