How to Start a Painting Business: A 9-Step Approach

1. Identify Your Niche

While offering broad painting services makes your business available to a wider range of potential clients, people pay more for specialty and niche work.

A house painting business will offer different services to a commercial property painting business, and different specialties require different skills.

The painting skills it takes to simply paint a wall versus a mural or a faux finish vary greatly, and the more skill required, the more you can charge. Specializing can help your business stand out and attract specific painting clients.

Ideally, you should strike a balance between offering broader services and niche specialties based on your skill set and market demand.

Some painting niches you could explore include:

• Interior painting: Painting the walls, ceilings, trim, and sometimes the floor inside a property.

• Exterior painting: Painting the outside of a property, such as the external walls or the roof trim.

• Residential painting: Painting people’s houses. This can be further categorized into interior or exterior residential and specialist painting. Examples of specialist residential painting include painting cabinets or fixtures and faux finishing.

• Commercial painting: Painting buildings that belong to businesses, such as offices, warehouses, and other commercial structures. Again, this can be further broken down to interior or exterior commercial painting.

2. Conduct Market Research

When starting a painting business, you need to understand your market. Conducting market research is a great way to do that. 

Market research is the process of gathering information about your industry, competitors, and target demographic. Once you’ve collected and analyzed the data, you can use the results to inform your pricing and marketing strategies.

Let’s take a look at the process.

1. Industry analysis: Start by understanding the trends and dynamics of the painting industry, including market size, projected growth, and key drivers. Identify the different segments, like the specializations mentioned in the previous section.

Ensure you are current with industry regulations, standards, and any certifications you may require to operate your painting business.

2. Competitor analysis: Next, you should find out who your competitors are—both direct and indirect—in your target market. Find out their strengths and weaknesses, including what services they offer (or don’t), their customers, and how they market themselves.

Be sure to check out their online presence, reputation in the market, and customer reviews. 

Look for gaps and opportunities in the market that you can capitalize on.

3. Target demographic analysis: Establish your ideal customer profile (ICP) according to their location and demographic (age, gender, income level, if they are homeowners or business owners, etc.), as well as their psychographics (lifestyle and preferences).

You can do this by conducting surveys and interviews to learn more about your target audience’s needs, pain points, and preferences related to painting services.

4. Pricing strategy assessment: It’s important to determine the best price for your painting company’s services, and this is where pricing strategy assessments come in.

Start by taking a look at the models your competitors use. These could include flat-rate pricing, hourly rates, or project-based pricing.

Next, determine your costs—materials, labor, overhead, and your desired profit margin.

Test some different strategies for your pricing. You can do this through market research techniques like A/B testing (trying one strategy with group A and a different one with group B and seeing which has the better results).

5. Market segmentation and targeting: Now you know who your market is, you can divide it into segments based on different criteria. This could be the customer’s needs, preferences, location, or property type.

Next, you can decide which of these segments to target. You should prioritize those that offer the highest growth potential and profitability.

Then, you can tailor your marketing messages, offers, promotions, and more to appeal to each segment.

6. Marketing and sales strategy: The final stage involves using the information you gathered in the previous steps to develop a comprehensive sales and marketing plan.

Ensure you use multiple channels and tactics, like digital marketing, online advertising, social media marketing, and SEO.

Use these strategies to differentiate your business from competitors and show your unique qualities to potential customers.

3. Craft a Business Plan

Now that you know your niche and have all the information required to start your new painting business, it’s time to create a painting business plan.

Let’s look at what you will need to create your business plan.

• Mission and vision statement: This statement should set your purpose and goals, such as beautifying spaces or providing top-notch painting services. 

You will also need to establish your aspirations and objectives for the long term as well, e.g., becoming a leading painting service provider in your region.

• Company description: Provide detailed information about your company, such as its history, where it’s located, the legal structure, and what services you offer. 

Including your unique selling proposition and any competitive advantages (like those specialties we mentioned) is good.

• Market analysis and sales and marketing strategy: Include all the findings you learned in your market research, like your target market segments, in your plan. Outline your sales and marketing strategy, too.

• Operations: Define the day-to-day running of your painting company. Ensure you include staffing requirements, quality control measures, and the necessary painting equipment and supplies—such as drop cloths, painter’s tape, and paintbrushes. 

If you plan to use subcontractors or have any strategic partnerships in mind, include that here.

• Financial projection: Prepare a forecast for your finances. Include income, startup costs, cash flow, and balance sheet projections for three to five years. Don’t forget to include your expenses and profit margins.

• Risk analysis: Establish your potential risks. These can include competition and economic downturns. Once you know the risks, define how you will mitigate them.

• Implementation strategy: Craft a step-by-step plan and timeline detailing how you will implement everything in the above steps.

Don’t forget to include any relevant supporting documentation, such as your market research findings, with your business plan.

4. Legalize Your Business

Once you have your business name and business plan, it’s time to register your business and ensure everything is above board.

Depending on your location, setting up your painting business involves several legal requirements. It’s vital to ensure you comply with local regulations. 

Firstly, let’s have a look at the types of business structure options available to painting business owners registering their business entity:

• Sole proprietor: The business is owned and operated by a single individual. The owner is liable for all debts and tax obligations, which means personal assets can be at risk if the business falls into debt.

Taxes are paid by the owner directly, and profits and losses are reported on the owner's personal tax statement.

Sole proprietorship businesses pay less tax overall but can be complicated to manage. It’s highly advisable to open a separate business bank account to separate personal and business expenses and income.

• Partnership: Two or more people own and operate the business. 

In a partnership, like in a sole proprietorship, the business doesn’t pay income tax. Profits and losses are “passed through” to the partners, who then report them on their personal tax statements.

Partners are not considered employees of the business and are classified as self-employed.

• Limited liability company (LLC): Unlike a sole proprietorship or partnership, the owners of an LLC are not responsible for any debt and obligations the business may incur. This means creditors can only come for personal assets if the business fails and falls into debt.

Taxation generally takes the form of “pass-through” tax, like the previous two structures.

If you foresee your business being medium or high-risk, you can register as an LLC to protect yourself from personal liability.

Once you’ve decided on the structure for your business, you’ll need to register your company name and get a business license. The process will vary depending on where you’re based, so it’s essential to research this (or speak to a lawyer) to ensure you register everything correctly.

Make sure you’re up to speed with safety regulations so you and your employees can stay safe. Accidents happen, but proper safety precautions can make all the difference.

We recommend taking out painting business insurance to help protect you and your business from potential losses. There are four different kinds of insurance you could take out, depending on your required coverage. They are:

• General liability insurance: Covers you if someone is injured on a painting job or if a property sustains damage.

• Commercial property insurance: Covers your painting equipment and any other business property you may own, like your office or storage space, in case they are damaged.

• Commercial auto insurance: Covers your company vehicle(s).

• Workers’ compensation insurance: Covers your business in case an employee injures themselves on a job.

Most insurance providers will offer a business owner package that includes some or all of the above. 

5. Set Up Your Finances

Good financial management is critical to a successful painting business. By controlling your business’s finances, you can ensure your practices are sustainable and monitor your company’s growth.

Read on to find out the best way to manage your finances.

• Set up a business bank account: Choose a bank that offers business services and gather the required documents. Check with the bank first to make sure it has what you need.

• Manage cash flow: Monitor your incoming and outgoing cash and ensure sufficient liquidity. It can be helpful to create a cash flow forecast to anticipate and be proactive about fluctuations. Consider having a business credit card to help you in slow periods.

• Establish a budget for supplies and equipment: Identify the essential equipment and supplies you and your staff will need. 

Research different suppliers and determine the best deals—some may offer bulk discounts on consumables, saving you money in the long run. Allocate a budget for these, factoring in maintenance costs.

It’s essential to keep accurate records of your expenses and revenue. You can either do this yourself with accounting software or hire an accountant to help you. Ensuring your records are up to date will enable you to see errors and discrepancies quickly.

6. Invest in Quality Painting Equipment

It might be tempting to opt for cheaper equipment when starting to keep your costs low. While looking for a good deal is great, it’s worth investing in high-quality supplies and equipment.

They will make delivering high-quality, superior painting services easier. And superior results are key to building a positive reputation.

Your essential equipment will include:

• Paint brushes and rollers in a variety of sizes and materials to accommodate different surfaces and finishes

• Paint trays and liners for holding paint while it’s in use

• Drop cloths and tarps to protect floors and furniture

• Painter’s tape to guarantee clean lines and edges

• Ladders and scaffolding for reaching high areas

• Paint sprayers, especially if you will be taking on large-scale projects

• Safety gear such as gloves, goggles, respirators, and overalls

ServiceTitan’s Contractor Inventory software is a handy tool in your stack as it can give you and your staff instant access to your equipment inventory.

With automatic replenishment triggers, you’ll never run out of stock, and you can better organize your stock at warehouses with inventory templates. You can also instantly track your inventory with scannable barcodes so you can stay up-to-date on the resources needed for certain projects.

The Equipment History feature lets you see how many materials and equipment items were used for past clients, too. Your technicians can use the Inventory App to reserve or request the stock they need for upcoming jobs, reducing your turnaround time and boosting customer satisfaction.

You can also track and manage purchase orders to monitor costs and equipment needs.

7. Network With Suppliers

Okay, you’ve just finished deciding on your quality supplies and equipment and see the price. It’s steep. Is there a way to lower the cost without reducing the quality?

Luckily, yes.

By identifying and connecting with reputable suppliers, you can build positive supplier relationships and negotiate favorable terms and prices. Suppliers will be willing to offer deals if they know you will be a regular customer who provides them with a lot of business.

Let’s have a look at how you can go about it.

Identifying reputable suppliers

You can find reputable suppliers through industry networking (trade shows, conferences, and industry events), online research (forums and social media), and referrals from colleagues, mentors, or other businesses in your industry.

You can also join trade associations and use supplier directories to find suppliers.

Learn about their products and services and gather information about their offerings and reputation.

Negotiating favorable terms

Before you begin negotiating, ensure you have all the information about market prices, competitors, and industry standards. 

Then, define your requirements. These should include your required quantity, quality, delivery schedule, and payment terms.

Make sure to shop around and look at proposals from different suppliers. Remember, price isn’t the only factor in a good deal—you should also consider payment terms, warranties, and value-added services to maximize the overall agreement value.

Demonstrate to your suppliers that you want to build long-term partnerships by giving them repeat business and mutually beneficial growth opportunities.

Lastly, make sure you stay flexible and open to compromise. This will allow you to explore creative solutions like volume discounts or bundle deals.

Maintain positive relationships

Establishing open communication channels and ensuring transparency from the start will help you address any issues quickly and avoid tensions.

If you have any concerns, provide constructive feedback. Your suppliers will be grateful for your feedback and the opportunity it gives them to improve their products or services.

At the same time, if you see your supplier has gone above and beyond, show gratitude for their efforts.

Conflicts are part of the human experience, so if one arises between you and a supplier, address it promptly, professionally, and amicably while striving for a resolution that works for both parties.

Lastly—and perhaps most importantly—honor your payment terms and make sure your invoices are paid on time. Suppliers will be much more likely to resolve issues amicably with a client who always pays on time than with one whose account is in arrears.

8. Leverage Technology

Back in the day, everyday tasks like project management, scheduling, and marketing had to be done manually. Today, however, software, apps, and digital marketing strategies can make these parts of your job as a business owner much easier—and faster.

Let’s look at some platforms and tools, what you can use them for, and how to implement them.

Project management

Platforms:

• Trello

• Asana

• Basecamp

• Monday.com

How to use them:

You can create projects for your various services with project management software tools like those mentioned above. Then, you can create tasks for your customers and track their progress through each project life-cycle stage, from quote to completion.

You can also assign customers’ tasks to the relevant members of your team so you know who is working on what.

Scheduling apps

A scheduling tool provides a centralized calendar for appointments, assignments, and deadlines.

ServiceTitan’s scheduling and dispatching tool also offers SMS texting and a route visualization tool so you can keep up to date with your employees and painting contractors all in one place.

With drag-and-drop dispatching, you can quickly and easily assign your staff to the day’s paint jobs. It also allows you to see scheduling conflicts at a glance, allowing you to resolve them and improve efficiency.

Digital marketing strategies

You can use many different strategies to market your business online, so it’s vital to establish what will appeal most to your target audience.

Some digital marketing aspects you should look into include:

• Social media: Use Facebook, Instagram, and TikTok to showcase completed projects, engage with potential customers, and share testimonials from happy customers.

• Search Engine Optimization (SEO): Use keyword research, on-page optimization, and local SEO (optimizing your online presence for local search queries) to increase traffic to your website and, ultimately, make more bookings.

• Pay-per-click advertising (PPC): Create ads and target them to specific demographics and locations.

These strategies might sound daunting if you’re not a marketing expert. But don’t worry!

A tool like ServiceTitan, which has comprehensive marketing features, is invaluable for creating and tracking the success of your marketing campaigns.

Its Home Services Marketing software lets you create data-driven marketing campaigns that help you attract and retain clients in a couple of clicks. 

Then, you can track your campaigns’ performance with the Marketing Scorecard tool, which lets you see exactly how many calls your campaigns bring in and how much revenue they generate, giving you a high-level ROI overview.

You can also see where your ads are most successful with the ServiceTitan heat map, so you won’t waste money on campaigns in areas where they aren’t effective.

Want to get more insights? You can even set up trackable phone numbers to attach to your ads so you can see exactly which ads generate the most calls. 

Simply generate a new phone number for each campaign. When someone books using that number, the cloud-based system tracks the revenue, giving you the real-time ROI.

How to implement tools effectively

Even the best tools will be useless if you don’t know how to use them. You should follow a few steps to ensure you do it properly.

1. Assess business needs: Note where technology can help you streamline your operations and address pain points, like scheduling conflicts.

2. Research tools: Look into different options and consider factors like features you require, scalability, ease of use, and price.

3. Onboarding: Make sure every member of your team who will be using the tool knows how to use it properly.

4. Integration: Depending on your chosen platforms, you can integrate them for a seamless workflow.

5. Data security: Implement robust security measures to protect sensitive business and client data and ensure you and your team are current on national/international privacy policies.

9. Don’t Forget About Customer Service

Your business wouldn’t be in business without your customers, so don’t forget about them. After all, their experience of your service doesn’t just boil down to the finished paint job. Every interaction you and your team have with them counts, too.

It’s essential to ensure every step of your client life cycle is best-in-class to build a positive reputation and foster long-term client relationships. 

Plus, it’s a surefire way to boost your business through word-of-mouth, as happy customers are more likely to refer you to their friends and family who may be looking for similar work

Elements that make up good customer service include:

• Effective communication: Clear, transparent communication at every step.

• Customer focus: Prioritizing the client’s needs and wants and tailoring your service to meet their preferences.

• Timely responses to inquiries: Don’t let your potential customers wait!

• Quick concern resolution: Address all concerns as soon as possible.

• Consistency: Guarantee excellent customer service across every interaction and touchpoint.

ServiceTitan’s Customer Experience features are a great way to satisfy your customers.

With features like digital invoices, mobile sales presentations, self-scheduling, and online payments, your customers will be pleased with the modern and up-to-date system.

They can even track their technician and know precisely when to expect them—no more waiting at home all day and looking out the window every 15 minutes!

There’s even a chat feature so clients can connect directly with your office staff and Two-Way SMS, enabling you to send and receive notifications to all your customers.

With the Field Service App, your technicians will never arrive at a job without all the information they need. Everything the client told your CSRs during the booking call will be automatically synced to ServiceTitan Mobile.

The app also gives your technicians access to job history, so they won’t risk trying to sell someone a service they’ve already purchased from you.

Your office staff and technicians can upload all the relevant paperwork for every job straight to the app, and documentation can be triggered to appear at certain stages of the job cycle, so you can be sure your technicians will get all the signatures and consents they require.

Arizona Painting, a residential and commercial business based in Phoenix and Tucson, has used ServiceTitan since 2019. Owner Joe Campbell said their technicians and customers appreciate the efficiency of having the paperwork all in one place.

“Once [the customer] accept[s] the proposal… [we] talk to them about their paint colors, where they want those colors painted. We get all those details and put them into their project file, and then it's seamless. 

When we assign that job to the painter, they have all that information immediately. It's word for word, exactly what the customer said, and the painters can see it, and the customers appreciate that.”

Implementing these tools will significantly increase your job efficiency, and an efficiently executed job will leave your customers over the moon.

Experience the Benefits of Painting Business Software

Now you know the ins and outs of starting your painting business. Hooray!

To ensure you hit the ground running, you should add ServiceTitan’s painting contractor software to your arsenal.

With front office features like lead capturing and call recording, you can improve your booking efficiency, and by using field operations features like equipment history and truck replenishment, you can make sure your crew is never low on supplies.

Learn more about streamlining your workflows by booking a demo with ServiceTitan today.

ServiceTitan is a home services software that helps painting businesses streamline their scheduling and manage their marketing campaigns. It's used by over 20,000 companies in trades across the country.

Frequently Asked Questions (FAQs)

We’ve covered the steps in setting up your painting company, but you may still have some questions. Don’t worry—read on to find answers to some FAQs. 

Q1. How much does it cost to start a painting business?

There are a few things you’ll need to purchase before you can start your business, and a couple of factors affect your initial costs, like if you hire employees and how much you spend on equipment.

According to Newfoundrz, it will cost you about $16,500.

Q2. Why start a painting business?

There are numerous advantages to starting a painting business. Startup costs are low, but service demand is high, and you can be flexible in your operations. 

It offers steady income and the opportunity to scale and grow. In addition, you can showcase your creativity and painting skills and meet a diverse range of clientele.