Flooring Business: How to Start and Succeed


When it comes to finances, it’s hard to find a steadier sector of the home improvement industry than flooring. Management consulting firm Markets and Markets reported the global flooring market reached a value of $331.9 billion in 2023 and is projected to grow to $510.7 billion by 2028, at a compound annual growth rate of 9%. Statista reported home improvement sales in the U.S. are expected to reach $620 billion by 2025. With great potential growth on the horizon, starting a flooring business can be a great way to find professional success.

Floor Covering Industry at a Glance

In the floor covering industry, revenue streams can be as diverse as the products (hardwood, carpet, laminate, vinyl and tile, to name a few) and the types of customers (homeowners, landlords, commercial business owners, etc.). Some flooring businesses decide to focus only on the installation of the floors, while others add a physical retail showroom that displays product choices. In both cases, your business is involved in measuring and installing in the consumer’s home. However, some flooring providers, like ProSource Wholesale, are focused specifically on providing the customer with quality flooring products and leave the installation to others.

The majority of most flooring companies’ revenue comes from installations. Some companies offer additional services, such as refinishing and flooring repairs, but your primary revenue stream will be from installing flooring of various types for various sizes of homes. For product-focused businesses, profits often depend on reliable repeat customers. ProSource Wholesale, for example, ensures long-term patronage by selling to professional contractors, who need a regular supply of flooring products.

Although the flooring industry has been identified as one of the more difficult trades to master, the surge in home improvement, including flooring, that resulted from the pandemic has made it a worthwhile pursuit. A 2023 study from Joint Center for Housing Studies of Harvard University shows that as people spent more time at home during the pandemic, they spent considerable amounts on improving their living spaces. One of the first things they look to upgrade is their floors.

How to Open a Flooring Store

To open a flooring business, here is a general outline of the process.

  1. Determine whether the flooring industry is right for you. The industry has good income potential, flexible scheduling, allows you to be your own boss, and is recession resistant.
  2. Gain the necessary knowledge and skills. This may require taking a training course or working as a junior installation contractor.
  3. Develop a business plan. All new businesses need a plan when starting out. This plan should be flexible but should set goals for your business and have a general outline of how to reach them.
  4. Create a budget that includes your total investment and maps out all potential funding sources, including loans, investors, and self-funding. A good place to start is the U.S. Small Business Administration (SBA).
  5. Research alternative funding sources. Startup costs for a floor covering business can range in the tens of thousands of dollars. Factors determining this cost include location size and whether you’re renting, leasing, or buying.
  6. Research available markets. If you want a retail flooring showroom, look for locations with lots of drive-by traffic near well-traveled intersections. Research your target audience and their flooring needs.
  7. Do the paperwork. You need to register your business with your state and local governments. You’ll need a business license, and insurance for both your business and your employees.
  8. Develop a branding and marketing plan. This should include developing marketing programs, strategies, and tactics to drive business. Consider your logo design and color scheme. Also, use social media platforms by providing unique, timely content to cultivate your audience and grow your brand. You may want to hire a marketing expert to help.
  9. Build your supply chain. Your business will require tools, including carpet stretchers, air compressors, and table saws, to name a few. You must carefully select your vendors and their product offerings to ensure product quality and that you get the best price.

Opening a business of any kind is a complicated process, especially solo. All the decisions and responsibilities are yours, to either take on yourself, to delegate, or to contract out. An installation-focused business is good for someone who wants to focus on contracting work; product-focused ones like ProSource Wholesale are good for those who prefer to focus on sales.

Ideas for Maximizing Sales & Profits

To grow sales and profits with a floor covering business, there are a few approaches to consider:

  • Choose franchising. Starting your own flooring installation company is a very involved process, and operating a business solo is a very tall order. But by joining a franchise like ProSource, you’re provided with a variety of benefits and services, such as training, industry advice from experienced businesspeople, a support network, administrative services, and help with advertising and marketing. You’ll also get a ready-made, proven business model to follow, and a brand name with an established reputation.
  • Build customer loyalty. Put forth as much time and effort possible on keeping current customers as finding new customers. Current customers will not only come back, but they’ll also create new leads by referring family and friends. The ProSource marketing programs (refined over 30 years in the industry) allow our showrooms to build strong relationships with our trade pro members, who buy from us an average of seven times per year.
  • Improve your buying. Next to pricing, the biggest determinant of profit margins is usually buying. Selecting the right vendors and negotiating the right prices will allow you to offer the best price to your consumer. Buying power is hard to come by as an independent entrepreneur, but ProSource franchisees enjoy the buying power that comes from being North America’s largest wholesale home improvement franchise
  • Use the latest technology. To succeed in today’s business world, you must have access to the latest technology. All ProSource showrooms have access to state-of-the-art technology built for the flooring and home remodeling industry.
  • Lower inventory and accounts receivable. Carrying inventory means your cash is tied up with the inventory in your warehouse. At ProSource, franchise owners carry a limited amount of inventory. Our showrooms provide financing alternatives from industry partners to our trade pros and their clients – we don’t extend credit directly and thus, no bad accounts receivable.
  • Create a value proposition. Research trends in your local market and try to identify services and products that your competition has overlooked. ProSource offers clients unique value by offering a membership, which allows them to schedule showroom visits at times convenient to them.

The Next Step: Consider Franchising with ProSource

For entrepreneurs like you looking to get into the flooring industry, we at ProSource Wholesale are excited to offer you the opportunity to join our unique B2B flooring franchise. As a ProSource franchise owner, you focus on selling products, so labor and claim concerns are minimized.

ProSource showrooms offer a wide array of flooring products for our clients and their customers, and we also sell products for kitchen and bath renovations, broadening your appeal to contractors. Submit a form today to learn more about your franchising opportunity with us.

Why Open a ProSource Wholesale® Franchise?

  • In business for yourself, but not by yourself — we support you every step of the way and in every area of your business
  • Qualified customer base — the members-only model means we only work with trade pros who are invested in ProSource as part of their team
  • High-quality products — it’s easy to market our flooring, kitchen, bath and plumbing products because they are fashion-forward and made to last at wholesale prices
  • Customized plans for your market — we help you create a customized marketing plan based on your specific area
  • It’s all about relationships — the ProSource Wholesale model is service-oriented, making it perfect for entrepreneurs who love connecting with others

ProSource Wholesale is not your typical home improvement store. We have specifically designed our model to address the needs of our clients and our franchise owners alike, creating mutually beneficial business relationships. For our trade pro members, ProSource offers a showroom of beautiful home products to help their clients create their dream homes, and a friendly and dedicated team to facilitate that process. In return, franchise owners are able to create ongoing relationships with trade pros instead of chasing individual retail sales.

Of course, both sides of this equation are supported by our corporate team, ensuring that everyone receives what they need, every step of the way.

ProSource Wholesale:

The #1 Home Improvement Wholesale Source

Since 1991, ProSource has been a leading resource for trade pros and their clients. Our unique approach sets us apart from all other home improvement franchise opportunities. Rather than utilizing a retail model where you sit and wait for the customers to come to you, our franchise opportunity is designed for proactive self-starters who would rather use their stellar relationship-building skills to create a customer base.

With over 145 showrooms across North America, our scope and influence in the industry continue to grow.



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