How to Start a Pest Control Business

If you’re looking to start your own pest control business, navigating the info on startup costs and permits might seem tricky–but we've got you covered. Pest control is a lucrative, exciting industry to hop into right now, since employment of pest control workers alone is predicted to grow 10% from 2020 to 2030.^[1] To help you launch your own pest control company, we'll walk you through the key info on potential costs and profits, licensing, branding, and more.

[Edit]Steps

[Edit]Planning Your Business

1. Start a structural pest control business to work with residential or commercial clients. You’ll help exterminate common pests like termites, ticks, cockroaches, rodents, and stinging insects.^[2] You can even pursue one of these specialty fields to corner a niche market:^[3]
   
   • Wildlife management (removal of vertebrate animals like raccoons, opossums, gophers, etc.)
   • Pest control for wood-destroying pests^[4]
   • Fumigation with restricted-use chemicals (a specialty within both structural and agricultural pest control)
2. Choose an agricultural pest control business to work on large-scale pest control. As an agricultural pest control specialist, you'll combine pest management knowledge with a strong understanding of biology and agriculture. You'll manage weeds, plant pathogens, and more as you work on parks, farms, golf courses, forests, cemeteries, and/or waterways.^[5]
   • In some states, you'll likely need a college degree to get certified to operate an agricultural pest management business.
   • You might also need to register your business with the Department of Agriculture if you plan to transport biological material or plants across state lines for large-scale agricultural work.^[6]
   • Visit https://www.aphis.usda.gov/aphis/resources/permits to view regulations and permits for importing, exporting, and transporting organic material.
3. Plan to spend between $10,000-$50,000 to start your pest control business.^[7] Before you write a business plan, keep the startup costs in mind, and create a 5-year financial plan that describes how much funding you’ll need. Forecast how much money you plan to bring in–successful pest control businesses bring in more than $75,000 in profit each year!^[8]
   • Pest control franchises require an initial investment between $25,000-$55,000 but provide training and name-brand recognition.
   • Expect to charge between $250-400 for your services, though fumigation can cost significantly more (starting at $1000).^[9]
4. Write a business plan. Your business plan outlines your company’s goals, financial objectives, and plan for success in your market. Presenting a strong business plan to potential investors or a major pest control company (if you’re starting a franchise) is key to getting funding. Determine your management structure and figure out your value proposition by asking, “What sets my pest control company apart from others?”^[10]
   
   • Your business plan will also include funding requests and financial objectives.
5. Register your business as an LLC or corporation. These two business entities protect you from personal liability.^[11] Choose an LLC over a corporation for a lower starting cost—corporations are typically more expensive to start, and their tax rate is higher. Pick a corporation if you plan to grow your business into a larger chain and sell stocks. You can register your business through the Secretary of State website for your state.^[12]
   
   • Unless you plan to work in large-scale agricultural pest control across state lines, you won’t need to register on the federal level.
   • In most states, you’ll pay less than $300 total to register your business.
   • Even if you’re buying a franchise, consider registering a business entity to reduce your liability. Most franchisees require you to be personally liable for your business.^[13]
   • Once you’ve registered your business, get your federal and state tax ID numbers and open a bank account separate from your personal finances.

[Edit]Obtaining Permits and Covering Liability

1. Create a services contract. Pest control contracts usually cover an initial treatment and create a plan for any future services. For example, if you run a termite company, you’ll want to create a contract that provides free treatment if the homeowners find pests within a certain number of years after treatment. That type of “contract and bond” is industry-standard in the pest control business.^[14]
   • In your contract, state whether you’ll pay for additional damage to the building if pests continue to create issues after your treatment. Many businesses will offer to pay $500-$1000 worth of damages (this is called a “repair bond”).
   • To be really competitive in the structural pest control market, you can even draw up a contract and bond that’s transferable to the next owner if your original client sells their house.
2. Get at least $500,000 worth of insurance coverage. You have to insure your pest control business before you can get licensed by your local pest control authority. At the very least, you’ll need general liability insurance, which protects you from financial loss due to bodily injury, property damage, medical expenses, defending lawsuits, and more.^[15]
   
   • For example, California requires that you have at least $500,000 of general liability insurance to operate a pest control business.^[16]
   • Florida also requires that you have at least $500,000 of aggregated coverage.^[17]
   • You might also want professional liability insurance to protect your pest control business from financial loss due to errors, negligence, or malpractice.
   • You can also obtain commercial property insurance to protect your equipment.
   • Insurance costs small businesses an average of $1,200 per year.^[18]
3. Complete approximately 3 months of training before getting certified with your local pest control board. If you’ve never worked in pest control before, you can either take classes at a local technical school/community college, or you can obtain on-the-job training from a pest control expert. Once you’ve received training on chemical use and safety procedures, you can sit for your local pest control authority’s applicator certification exam.^[19]
   • Visit http://npic.orst.edu/reg/state_agencies.html for more information on your state’s pest control board and their specific requirements.
4. Obtain an applicator certification from your local pest control authority. Federal law requires you to get certified as an “applicator” to utilize restricted-use chemicals in your pest control business. Search your state’s name plus “pest control license” to make sure your training fits the exact requirements, since pest control licensing is governed at the state level and requirements vary.^[20]
   
   • Your state might run the certification program through the Department of Agriculture, Structural Pest Control Board, or Environmental Bureau.
   • You may also need a high school diploma to get certified, depending on your state.
5. Certify your business with the state pest control board. After you’ve received your applicator certification, you can become a certified pest control business operator. The requirements will vary by state, but you should expect to provide proof of insurance and financial responsibility. You’ll also provide documentation that you’ve registered your business name, and you may need to provide a “Certificate of Good Standing” from your Secretary of State’s Office.^[21]
   
   • A “Certificate of Good Standing” proves that you’ve registered your business with the state, and you’ve paid all necessary fees and taxes.^[22]
6. Choose a business location and check zoning laws. Local ordinances created by your county or city might restrict how and where you can store pesticides and operate your business. Check with your individual city and county to determine where you can store your chemicals and whether or not you need special permitting.^[23]
   
   • The EPA regulates pest control storage for 55-gallon containers via instructions on the label for the chemicals. However, your county may have additional fire prevention measures.^[24]

[Edit]Building Your Pest Control Business

1. Purchase business and pest control equipment. You might choose to purchase accounting software, client management software, and website hosting to keep your business organized and running efficiently. You’ll likely spend between $10,000-$125,000 on equipment.^[25] For pest control itself, you’ll need to have:
   
   • A company vehicle
   • Pesticides and pest removal tools (such as sprayers or traps)
   • Protective gear, including respirators, gloves, and goggles^[26]
2. Hire pest control employees. Spring is both the peak season for pest control and the peak hiring season in the pest management industry. Create a thorough application that asks about potential employees’ job history, education, and relevant experience. Interview your employees face-to-face, check their motor vehicle history and criminal record, and require them to pass a drug test.^[27]
   
   • Expect to pay employees around $18 per hour.^[28]
   • Pest control employees usually start as technicians, performing inspections as they learn about safe pesticide use.^[29] Your employees will need to get an applicator certification from your state to work with restricted-use chemicals.
   • To help train your employees, check the National Pest Management Association’s Online Learning Center at: https://npmapestworld.org/resourcecenter/online-training-resources/online-learning-center/
3. Build your brand. Now that you’ve got the legal and financial side of your business squared away, you get to really shape your pest control company’s image! Design a logo and come up with a tagline that describes who you are and the services you offer. To come up with branding materials, ask yourself, “What qualities do we want people to associate with our brand?”^[30]
   
   • Pick an easy-to-remember name that describes the services you offer, like “Ridgewood Rodent Removal.”
   • Come up with a tagline that shows your brand values and voice, like “No pest is too big or too small” or “Take the stress out of pest control.”
4. Market your business. You’ve got your business off the ground, and now it’s time to start providing top-quality pest control services in your community! Get the word out about your new pest control company through social media marketing, customer referrals, and special promotions.^[31]
   
   • Set up a company website to advertise your services online.
   • For instance, you could reward customers with a 20% off discount on future pest control if they refer someone to your company.

[Edit]References

1. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm#tab-6
2. ↑ https://npmapestworld.org/default/assets/File/Resource%20Center/Business%20Resources/NPMA%20Fact%20Sheet-2019.pdf
3. ↑ https://www.cdpr.ca.gov/docs/license/licreq_pcb_02-04.htm
4. ↑ https://www.fdacs.gov/Business-Services/Pest-Control/Licensing-and-Certification
5. ↑ http://ipm.ucanr.edu/PCA/
6. ↑ https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
7. ↑ https://www.entrepreneur.com/businessideas/pest-control
8. ↑ https://smallbiztrends.com/2017/04/pest-control-franchise.html
9. ↑ https://homeguide.com/costs/pest-control-prices
10. ↑ https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
11. ↑ https://www.sba.gov/business-guide/launch-your-business/choose-business-structure
12. ↑ https://www.sba.gov/business-guide/launch-your-business/register-your-business
13. ↑ https://www.franchisehelp.com/franchisee-resource-center/im-buying-a-franchise-do-i-need-a-business-entity-business-entities-in-franchising-and-their-limitations/
14. ↑ https://www.houseopedia.com/understanding-pest-control-contracts
15. ↑ https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
16. ↑ https://www.pestboard.ca.gov/howdoi/pr.shtml
17. ↑ https://www.fdacs.gov/Business-Services/Pest-Control/Licensing-and-Certification
18. ↑ https://www.nerdwallet.com/article/small-business/business-startup-costs
19. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm#tab-4
20. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm
21. ↑ https://www.cdpr.ca.gov/docs/license/licreq_pcb_02-04.htm
22. ↑ https://www.wolterskluwer.com/en/expert-insights/what-is-good-standing-and-why-your-business-needs-it
23. ↑ https://www.epa.gov/pesticide-worker-safety/requirements-pesticide-storage
24. ↑ https://www.epa.gov/pesticide-worker-safety/requirements-pesticide-storage
25. ↑ https://www.nerdwallet.com/article/small-business/business-startup-costs
26. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm
27. ↑ https://pestworldmag.npmapestworld.org/2019/03/28/hiring-training-and-retaining-talent-in-2019/
28. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm#tab-1
29. ↑ https://www.bls.gov/ooh/building-and-grounds-cleaning/pest-control-workers.htm#tab-4
30. ↑ https://www.entrepreneur.com/article/77408
31. ↑ https://www.sba.gov/business-guide/manage-your-business/marketing-sales