Starting a drain cleaning business is a rewarding venture that combines technical skill with business savvy. The industry pulls in billions of dollars annually, thanks to steady demand from residential homes, restaurants, and commercial properties.
This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and acquiring the right equipment to help you launch a successful drain cleaning business in the U.S.
Step 1: Create your business plan and validate your idea
Start by researching your local market. You can call property management companies and restaurant groups to ask about their needs and current service providers. This gives you direct insight into what potential commercial clients look for and what they pay.
Analyze competitors and estimate costs
Use Google Maps to identify all drain cleaning services in your target area. Review their websites and customer reviews to understand their pricing, reputation, and the services they offer. A frequent misstep is to only compete on price instead of service quality or speed.
Speaking of costs, your initial investment will likely range from $25,000 to $60,000. A reliable used van might cost $15,000-$30,000. Key equipment includes a hydro-jetter ($3,000-$10,000) and a sewer inspection camera ($4,000-$12,000), which are necessary for many high-value jobs.
Here are 3 immediate steps to take:
- List five potential commercial clients and research their current drain service needs.
- Map all competitors within a 20-mile radius and note their primary services.
- Create a startup budget spreadsheet with line items for a van, hydro-jetter, and camera.
Step 2: Establish your legal structure and get licensed
Choose your business structure
An LLC (Limited Liability Company) is a solid choice for most new drain cleaning businesses. It separates your personal assets from business debts. You file formation documents, like Articles of Organization, with your Secretary of State. This usually costs between $50 and $200.
Once your LLC is approved, get an Employer Identification Number (EIN) from the IRS website. It is free and you will need it to open a business bank account, file taxes, and hire employees. Think of it as a Social Security number for your business.
A frequent error is mixing personal and business finances. Open a dedicated business bank account with your EIN as soon as possible. This protects your LLC status and makes tax time much simpler.
Secure licenses and permits
Licensing requirements change by state and even city. Start by checking your state’s Contractor’s State License Board or equivalent agency. Some states classify drain cleaning under a plumbing or specialty contractor license, which may require an exam.
Expect to need a general business license from your city or county, which can cost $50 to $150. Specific job permits, like a plumbing permit for line replacements, may also be necessary. Processing times can range from a few days to several weeks.
Here are 4 immediate steps to take:
- File Articles of Organization for an LLC with your Secretary of State.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Visit your state’s contractor board website to find license requirements.
- Open a separate business bank account using your new EIN.
Step 3: Secure your insurance and manage risk
Your business needs several layers of protection. Start with General Liability insurance, which covers property damage or injuries to third parties. A $1 million policy is standard and might cost $700 to $1,800 annually. You will also need a Commercial Auto policy for your work van.
If you plan to hire employees, Workers’ Compensation is legally required in most states. It covers medical costs and lost wages if an employee gets hurt on the job. This brings us to your equipment, which needs its own protection.
Specialty coverage and unique risks
Drain cleaning has specific risks, like a sewer backup that floods a client’s basement. Professional Liability insurance, also called Errors & Omissions, covers these job-related mistakes. A frequent oversight is not insuring your equipment outside your shop, so add Inland Marine insurance to protect it in transit.
When you shop for policies, look for providers familiar with trade contractors. Companies like The Hartford, Hiscox, or Next Insurance understand the risks and can offer bundled packages. A general agent may not grasp the specific needs of your business.
Here are 4 immediate steps to take:
- Get a quote for a $1 million General Liability policy.
- Ask an agent about a Commercial Auto policy for your work van.
- Inquire about adding Inland Marine coverage for your equipment.
- Contact a provider like Hiscox or The Hartford to discuss a bundled policy.
Step 4: Set up your shop and buy equipment
Look for a small commercial or light industrial space, around 500-800 square feet. This gives you enough room for your van, equipment storage, and a small office area. Check local zoning laws to confirm your business activity is permitted.
A frequent misstep is to pick a spot without a large garage door or secure overnight parking. Your van is your mobile office, so easy and safe access is non-negotiable.
Secure your lease and gear up
When you talk to landlords, ask for a one or two-year lease instead of the standard three or five. This provides flexibility as your business grows. Also, inquire about a small tenant improvement allowance to help cover costs like installing a heavy-duty utility sink.
Once you have a space, it is time to buy your primary equipment. A new hydro-jetter will run you $3,000 to $10,000, and a sewer inspection camera costs between $4,000 and $12,000. You will also want a large drum machine for bigger lines, which costs about $2,000-$4,000.
You can buy directly from manufacturers like Spartan Tool, MyTana, or RIDGID. They do not have minimum orders, and buying new often includes valuable training and a warranty. This support can save you from costly downtime later.
Here are 4 immediate steps to take:
- Identify three potential commercial spaces under 1,000 square feet with garage access.
- Ask a potential landlord about their willingness to offer a two-year lease.
- Get a price quote for a new hydro-jetter from a supplier like Spartan Tool.
- Compare features on two different sewer inspection camera models.
Step 5: Set up your payment processing
Residential clients usually pay on the spot with a credit card. For commercial accounts, you might need to offer Net 30 payment terms, which means you send an invoice and they pay within 30 days. Be clear about these terms upfront.
For bigger jobs like a full line replacement, you should require a 50% deposit to cover materials and secure the booking. A frequent mistake is to skip putting this agreement in writing. Always use a simple contract for large projects.
Choose your payment solution
You need a way to accept payments on-site. For drain cleaning businesses that need to accept payments on the go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone—just tap and done.
While other providers often charge 2.5% to 3.5%, JIM is just 1.99% per transaction with no hidden costs or extra hardware. It is perfect for collecting payment right after a residential call.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done—no waiting for bank transfers.
Here are 3 immediate steps to take:
- Define your payment terms for residential and commercial clients.
- Draft a simple contract that requires a 50% deposit for large jobs.
- Download the JIM app to explore its on-site payment capabilities.
Step 6: Secure funding and manage your finances
Equipment financing is often the most direct path to getting your hydro-jetter and camera. Lenders specializing in trade businesses may finance 80-100% of the cost. Expect interest rates between 6% and 12%, depending on your credit score and the loan term.
For broader startup costs, you might consider an SBA 7(a) loan. These government-backed loans can provide up to $50,000 for new businesses. You will generally need a credit score above 680 and a solid business plan to qualify.
Calculate your working capital
A frequent oversight is focusing only on equipment costs. You also need working capital—cash to cover daily operations for the first six months. This includes rent, fuel, insurance, and marketing costs before your revenue stream is steady.
If your monthly expenses are $2,500, aim to have $15,000 in your business bank account. This buffer is not for new tools. It is strictly to prevent cash flow gaps while you build your client base and wait for invoice payments.
From day one, track every dollar in and out. Use accounting software like Wave (which has a free version) or QuickBooks Online. This keeps your books clean for tax time and demonstrates financial responsibility to future lenders.
Here are 4 immediate steps to take:
- Contact an equipment financing company for a rate quote.
- Review the SBA 7(a) loan requirements on the official SBA website.
- Create a spreadsheet to calculate six months of operating expenses.
- Explore accounting software options like Wave or QuickBooks Online.
Step 7: Hire your first technician and set up operations
Find your first technician
Your first hire will likely be a Drain Cleaning Technician. This person handles everything from snaking residential drains to operating the hydro-jetter on commercial jobs. Expect to offer a salary between $45,000 and $65,000, depending on their experience level.
A frequent misstep is hiring for technical skill alone. Remember, this technician is your company’s representative. Strong customer service skills are just as important as knowing how to use a sewer camera. A bad interaction can lose you a client forever.
Streamline your daily workflow
Once you have a person in mind, you need a system to manage jobs. Field service software like Jobber or Housecall Pro lets you schedule appointments, dispatch technicians, and send invoices from one place. This avoids missed calls and messy paperwork.
With your operations set up, you can set performance goals. A good benchmark is to aim for $150,000 in annual revenue per fully equipped truck. This figure helps you track progress and decide when it is time to expand your team.
Here are 4 immediate steps to take:
- Draft a job description for a Drain Cleaning Technician that emphasizes customer service.
- Check if your state requires any specific certifications under its plumbing board.
- Request a demo from a field service software provider like Jobber.
- Set a first-year revenue goal based on the $150,000-per-truck benchmark.
Step 8: Market your business and get customers
Your first digital move is to claim your free Google Business Profile. Then, you might explore Google Local Services Ads. Unlike regular ads, you pay per lead, not per click. Expect costs between $30 and $80 per qualified call in this trade.
Build your local presence
Do not rely solely on digital marketing. You can visit local property management offices and restaurant groups in person. A good way to start a conversation is to offer a free camera inspection for their main sewer line, which can lead to commercial contracts.
A frequent oversight is neglecting referral partnerships. You should connect with plumbers, real estate agents, and HVAC technicians. A standard practice is to offer a 10% referral fee for any job they send your way. These relationships often become a steady source of work.
Always track your Customer Acquisition Cost (CAC). For example, if a Google lead costs $50 and you close one of every two leads, your CAC is $100. A good goal is to keep your CAC below 25% of the average job value.
Here are 4 immediate steps to take:
- Create and fully populate your Google Business Profile.
- Research Google Local Services Ads pricing for your area.
- List ten local property management companies to contact.
- Draft a referral agreement that offers a 10% fee to other trade professionals.
Step 9: Set your pricing and profit margins
Establish your service rates
Most drain cleaners use flat-rate pricing for common jobs. For example, a simple residential drain snake might be $150-$350. Hydro-jetting a main line is more involved and typically runs $400-$800. This transparency builds trust with customers.
Your goal should be a gross profit margin of 60-70% on services. This margin covers your overhead, fuel, insurance, and leaves room for profit. Anything less makes it difficult to grow the business or handle unexpected costs.
Research your local market
To set your prices, you need to know what others charge. You can call a few local competitors and ask for a quote on a standard service, like a slow kitchen sink. This gives you real-time market data without guesswork.
A frequent error is trying to be the cheapest option. This often attracts price-shoppers who do not value quality work. Instead, price yourself in the middle-to-high end of the market and compete on reliability and customer service.
Here are 4 immediate steps to take:
- Create a flat-rate price list for your top three services.
- Call two competitors to get a price for a clogged bathroom sink.
- Calculate your target price to achieve a 65% gross margin.
- Decide on your after-hours or emergency service surcharge.
Step 10: Control quality and scale your operations
Establish your quality standards
A low callback rate is your best quality indicator. You should aim for a rate under 5%, meaning fewer than one in 20 jobs requires a return visit for the same issue. Track this metric weekly in your field service software.
Another key metric is the first-time fix rate. Your goal is to solve the customer's problem on the first visit. You might also send a simple one-question survey after each job to measure customer satisfaction. A score of 90% or higher is a solid target.
Know when to grow
A frequent error is to expand too quickly without solid systems. Use your booking schedule as a guide. When your lead technician is booked more than 80% of the time for two straight months, it is time to hire another technician.
The benchmark for adding a second truck is when your first one consistently generates around $150,000 in annual revenue. This shows you have enough demand to support the investment. Use software like Jobber or Housecall Pro to track this revenue per vehicle.
Here are 4 immediate steps to take:
- Set a target callback rate of under 5% and track it weekly.
- Create a one-question customer satisfaction survey to send after jobs.
- Monitor your technician’s booking rate for the next 60 days.
- Check your revenue per truck against the $150,000 annual benchmark.
You have the roadmap to launch your drain cleaning business. Remember that your reputation for reliability is just as valuable as your hydro-jetter. Every job is a chance to build trust. Now, go turn that plan into your first paying customer.
As you get paid, keep it simple. JIM turns your phone into a card reader, so you can accept payments on-site for a flat 1.99% fee with no extra hardware. It makes getting your money easy from day one. Download JIM to get started.
