The swimming pool service business involves cleaning, checking, and adjusting water chemical balance, examining skimmers, and maintaining filters and pumps of residential or commercial properties.
In a country like the United States, where there are an estimated 309,000 commercial pools and 10.4 million residential pools, the pool service business is a promising industry to thrive in.
The pool service industry also has no major players, which means there are plenty of opportunities for entrepreneurs looking to buy a swimming pool service to flourish.
In this article, we will be sharing helpful tips on how you, a pool service business owner, can grow your business.
A pool service business is a saturated business, which means it can be highly competitive. On the other hand, a saturated market is also an indicator of high demand. Hence, market differentiation by increasing your value proposition is how you get clients to notice your business and keep them coming back.
You can expand your pool service by affiliating with property managers, builders, and real estate companies. With the help of real estate companies, you could tap into the foreclosed homes market. This way, you could be awarded the opportunity to apply your skills to improve the conditions of swimming pools or other water features.
After the home is sold, this also gives you leverage with new homeowners as the pool service company with experience maintaining their new pool.
Upselling is a great way to add to the services you already render. Offer additional products like cleaning products, pool accessories, and even garden deck and furniture that will help your customers get more out of their pools. Find out about products that will help your clients take care of their pool in between services and offer it to them.
Another way of boosting your bottom line is by buying pool routes from brokerage companies. Procuring these routes comes with useful information such as the estimated number of pools, the breakdown between commercial and residential pools, monthly service gross income, and more. Buying more routes will open your business up to new prospects and increase your chances of generating more revenue.
Requirements for Running This Type of Business
Some states require you to obtain a Pool Contractor License. You have to pass a pool exam to get your license. To qualify for this exam, there is usually a 4 year experience requirement or an educational requirement of a Bachelor's Degree. It's typical to pay a stipulated amount for the exam and the license.
Getting a CPO (Certified Pool Operator) certificate also shows that you've been adequately trained in the best practices, chemistry knowledge, and safety requirements that help you deliver top-notch service.
Conducting Market Research
Conducting market research will help you keep up with new trends in the pool service industry. For example, recent trends in the pool service business show a growing demand for market consolidations, private swimming pools, technological innovations, and robotic pool cleaners. Incorporating some of these into your business increases your offerings and gives you an edge over your competitors.
Market research also helps you identify your competitors. You can find out about their location, pricing, and offerings. This way, you can learn from their best practices and exploit any weaknesses you find.
Growth Potential of the Pool Service Industry
In the last five years, the swimming pool service industry has grown on average 6.1% per year. The industry is expected to record a 0.9% increase in 2022. Currently at a market size of $7.8bn, future projections show that the pool service industry would reach a market value of $19.51 with a CAGR of 11.7% from 2021 to 2026.
Interesting Facts about the Pool Service Industry
According to IBISWorld, the market size of the swimming pool service industry in the US increased faster than the economy in general.
High competition and low barriers to entry are two primary negative factors that affect the pool service industry.
California and Florida have the most inground swimming pools in the US.
Marketing Ideas For Your Business
An effective marketing strategy makes all the difference, and it can turn your business from just a great potential into an actual success story. Hence you would need to be meticulous in formulating a marketing strategy as that is what gets your business in front of prospective clients.
Here are some marketing ideas you can adopt:
- Make your staff and pool van into moving billboards. You could employ a graphics designer to come up with attractive graphics that would quickly grab the attention of potential clients.
- Form a partnership with local pool supply stores in pool routes. Ask permission to leave your business card or brochures at the checkout counter.
- Get your pool business listed on platforms like Google My Business to help your business turn up in local searches.
Financing Your Pool Service Business
Expanding your business requires funding, and there are several opportunities available for small businesses to secure financing.
Here are a few:
- Small Businesses Funding helps you secure loans with requirements less stringent than that of traditional banks. They connect you with lenders that give loans to businesses younger than three years, those with bad credit scores, or those that need money urgently. Small businesses funding offers you the opportunity to secure loans of less than $100,000.
- The Small Business Administration guarantees SBA loans to help small businesses secure financing from traditional banks at encouraging rates.
- Equipment Financing is a financing option that helps small businesses like your pool service business purchase necessary equipment. Most lenders would require a quote list before approving the loan.
Factors to Consider Before Selling Your Business
A good exit strategy involves selling your business to make a profit, but unfortunately, this is not the case with most small businesses, as many fail to plan. Plan to ensure that your business is buyable or investment-worthy at your eventual exit.
A great way to start is by getting a business valuation. A valuation of your pool service business will help you evaluate the potential and financial health of your business. You can analyze the resulting data from the valuation to figure out how best to improve your business enough to spur the interest of prospective buyers.