Are you planning to consider a business that you can run from home? Let’s take one more step ahead; for this business, you don’t need heavy investment. You can start with less than $10000 investment.
Insects and rodents are quite dangerous for households and commercial buildings. Whether it’s at home or in big offices, hospitals, or police stations, insects are unhygienic. Rodents also spread different infections. That’s why pest control is a big business in the USA. Currently, the pest control industry is bigger than $24.0 billion.
The awareness of cleanliness and the harmfulness of insects and rodents is increasing. This is the best time for entrepreneurs to start a pest control business with the rise of the housing market.
Pros & cons
| Pros | Cons |
| Entrepreneurs don’t need to start with a high startup cost. The business is profitable. It doesn’t take long to build a customer base. | The market is highly competitive. The learning curve is shallow. Owners may find themselves on the call 24/7 |
Industry: Pest Control Business Industry Size & Trends
The pest control business has potential, and the market size is only growing and growing every year. Pests and rodents have been a problem in big corporate buildings and across households in the USA. It brings an opportunity for small business enthusiasts who want to start a pest control business.
The industry is growing with various M&A activities and the growing need for pest controls. Plus, small businesses providing such services are incorporating technologies into their services, personalizing services for different types of clients across the country. Here are some recent trends in the pest control industry –
Industry Overview: Pest Control Business in Recent Times
The pest control industry has seen a massive surge in the past five years more than ever. The industry is seeing a steady year-over-year growth. A good reason for the growth lies in the consumer’s growing awareness of cleanliness. Studies suggest that 82% of people have a higher level of awareness regarding cleanliness.
It’s no wonder companies like Rentokil have boosted their market share concentration over the last few years. Heavy urbanization and the rise of many corporate and institutional buildings increase the need for pest control businesses. Also, the integration of technologies has been a huge game changer for the industry. Many small pest control business owners have their own business websites, and personalized services are offered. The use of data-driven methods is transforming business. Also, a focus on eco-friendly pest control methods with the use of biocontrol agents is popularizing the concept of pest control.
Industry Size And Growth
Size: A 2023 estimation of the pest control industry suggests a market size of $24.0bn. The housing market has been working as a boon to the pest control industry. The pest control industry has also been using ant extermination and control as a boon for their growth. Compared to bed bugs, rodents, fleas, and ants, extermination has been a big part of this industry’s requirement. The recent trends in the industry have been pushing the industry size by several billion dollars every year.
Growth: The industry saw a growth of 1.3% in the recent year. All the recent trends of the past 5 to 10 years transpired into a growth at a CAGR of 3.3%. In fact, there is supposed to be a 0.9% boost in the industry in 2024. Other studies suggest that the industry is supposed to grow 5% per year through 2027.
Number of Businesses: In 2024, there are 33000+ pest control businesses operating across different states of the USA. A 2019 to 2024 analysis shows a 4% growth in the number of businesses working in the pest control industry in the USA.
Employment: The number of people working in the pest control industry has been steadily rising. As of 2024, there are more than 159000 people working in the pest control industry.
Trends & Challenges
Pest Control Business Trends:
The current pest control industry has been following many new trends. Common trends include integrated pest management, the use of different eco-friendly products, and the use of tech integration. Businesses focus on customer education through relevant marketing and branding techniques. This educative communication with customers is shaping the pest control industry for the future.
In fact, many pest control businesses are using image recognition tools powered by AI to detect and exterminate different types of pests. Also, the services provide different types of pricing with a variety of bundled packages charged on a monthly or quarterly basis.
Pest Control Business Challenges:
Even though it is a significant growth-facing industry, the pest control industry has challenges of its own. The most common challenge is related to the IPM ( Integrated Pest Management tactics). The obstacles are linked to the social, regulation, and psychological factors associated with pest control. Knowledge and training of the pest control workers are also a challenge at times.
Chemical resistance to different types of pests and rodents is also a challenge to the pest control industry. As pest controllers keep using different types of chemicals against rodents and bugs, they start to develop resistance against them. Pest management chemicals are losing their potency and effectiveness against evolving bugs and rodents. This would require the chemical manufacturers to come up with more effective solutions. Although there is a strong demand for eco-friendly solutions, effective ones are hard to come by. It is also a seasonally controlled business.
Who is Working in this Industry?
93% of these people are men, and only 7% of workers are female. 52% of the employees working across pet control businesses have completed their high school degree.
Startup Cost: How Much Does It Cost to Start a Pest Control Business Business?
The pest control business doesn’t require a heavy investment. But you have to have a car. If you are working from home and have a somewhat working car, you can start a business with as little as $8000 in your budget. But, the startup ballpark range might extend up to $10000 to $15000.
| Start up cost | Ballpark range |
| Naming & Incorporation | $150 to $200 |
| Licences & Permits | $100 to $300 |
| Insurance | $100 to $300 |
| Business Cards & Brochures | $200 to $300 |
| Used Truck | $2000 to $5000 |
| Website Setup | $1000 to $3000 |
| Equipment & Supplies | $5000 to $6000 |
| Total | $8550 to $15100 |
Earning Potential: How Much Can You Earn from a Pest Control Business Business?
Now that you know about the trends and challenges, as well as the startup costs needed for starting a pest control business, you should be curious about the earning potential.
Once you start a pest control business, the highest operational cost involves your staffing. The rest of you have already invested in the truck and equipment. However, you can earn a profit margin of 60% to 25% from your pest control business. But, the labor cost will take up almost 25% of the revenue.
It’s possible to increase your profit within a small time margin. You can take the business revenue up to $100000 within the first two years of starting your business. It suggests that you will make $60000 in profit, taking it up to 60% margin.
But, with time, as you start to grow your business, you can expect your pest control business revenue to go up to $200000. This will mean you have to rent a location and spend more on commercial equipment and staffing for expansion. As you expand and staff more people, your revenue will grow, but the profit margin will be reduced to 40%. But, it’s still possible to make a tidy profit of around $80000.
Entry Barrier: What Barriers to Entry are in Pest Control Business?
Yes, the consumers are more serious about pest control services, and the market is growing. However, most customers will not consider any business just because they need the service. Small pest control businesses have to build credibility with their skills and standard industry practices. Here are a few barriers to entry in the pest control businesses –
The pest control business has a steep entry barrier with stiff competition from 30000+ businesses already operating across different states. Staff and laborers have to be experts in the technical know-how side of doing pest control. With tough competition from different brands, it’s difficult to market and brand a pest control business.
But, it’s not a problem that a strong marketing plan and branding strategy cannot overcome. With proper preparation and market study, pest control business startup owners can penetrate the market.
Event Opportunities: Who are your Potential Customers?
Your common target audiences for pest control business might be –
- Houses.
- Urban areas with corporate buildings.
There are opportunities in the pest control industry. But, a new business has to tackle various obstacles to invade their percentage of the market. Immediate competition from some of the national brands in the pest control industry will overpower a newcomer. But, it’s important to consider who the competitors are and form a plan of action to fight with them.
Do run a quick Google search to find out who your immediate competitors might be. Most importantly, it’s crucial to run an audience analysis and identify what your target audience is looking for.
Look for service gaps among your top competitors and carve a niche out of it. When you start serving the underserved niche, it helps you gain a religious customer base.
Are your competitors slow to respond to the target audience? Are their services too expensive for working-class households? Their services may not be effective enough. It’d be best to ask your target customers around to find a potential solution.
You can step in where your competitors are failing to use updated technologies and provide the best in class services. A good way to steal your opportunity might also be by providing the best experience through innovative pest control strategies.
Frequently Asked Questions
Here are some common questions most people usually ask about pet control businesses –
Yes, a pest control business is profitable if you are able to tap into the right market. It’s possible to make close to $100000 in a year as a pest control business owner. The profit margin is high initially since the investment isn’t too high.
The global market of pest control is supposed to grow and come close to $32.62 billion by the end of 2032, showing a CAGR of 6.19%. This demand has been increasing with the rising global awareness about cleanliness.
Pest control business is a good opportunity for small business owners who want to gain quick profit with little investment. The initial investment needed for a small pest control business is around $10000. In return, a small pest control business can help one earn close to $129K in a year. With better branding and marketing, the revenue potential can double.
Conclusion
The pest control business can be highly rewarding. However, proper market analysis and a clear understanding of immediate competitors should be the starting point for any aspiring entrepreneur based in the USA. If you are planning to start a pest control business, start with a thorough research of your competitors and target audience. But, if you need a clear overview of what this industry is like, this article should be able to help you.
Do you have any queries related to this? Let us know through the comment section so that we can help you solve it. Thank you for reading.
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