A business plan is a description of the pressure washing business you intend to develop. Any document that talks about the business idea you have and how you plan to execute it is your business plan. When you create this plan, you prepare for every aspect of your company. If you prepare for it in detail, you’ll likely have to deal with fewer impediments and snags. You might want to create this plan for getting financiers to invest in your company or when you’re seeking to expand it by hiring fresh talent and getting new suppliers. With a detailed business plan in front of you, you have a clear view of the direction in which you can take your company and how you can make a success of it.
Components of a Business Plan
Company Goals and Objectives
An effective business plan for starting your pressure washing business includes several important components. The first section among them is the formulation of the company goals and objectives. This section includes a description of the particular industry you plan to work in such as the pressure cleaning industry. Consider the specific services you’ll provide such as power washing and pressure washing and how you can make a success of your business by providing them. Also, factor in the reality that pressure cleaning is a seasonal service and business is likely to be slow during the winter months.
Marketing the Business
The next step is to identify your target market. Work out the particular niche of customers you’ll contact in the initial stages such as homeowners, restaurants, vehicle owners, and so on. Also, work out the cleaning contracts you intend to pick up such as home exteriors, driveways, cars, trailers, patios, chimneys, windows, parking lots, garages, and decks, among others. Identify the competing businesses in your area and plan how you’ll match up to them, perhaps, by providing better services or competitive prices. Anticipate the possible problems in getting your business off the ground and how you can overcome them.
Financing the Business
When planning for the finances you’ll need, you first need to work out the possible expenses you’re likely to incur in the initial stages of setting up your pressure cleaning business. For instance, you’ll need finances for;
- Vehicle or truck for transporting supplies to your worksites
- Equipment such as power washers, pressure washers, nozzles, chemicals, fuel, etc.
- Fees incurred for registering your business, business permits, licenses, and any other costs
- Insurances needed to protect your business from damages
- Advertising costs such as flyers, web and TV ads, commercials, logos, signages, and truck wrapping
- Transportation costs for accessing your worksites
- Other overheads such as maintaining records and a website, storing equipment when not in use, and parking costs for your truck.
- Maintenance of equipment
- Applicable taxes
Earning Revenue
Now that you have a clear estimate of the costs you’ll incur, the next part of the business plan entails working out the prices you can charge your customers. This price rate depends on many factors aside from the investment you’re making. For instance, you’ll need to work out how to charge for the time and effort you’re putting in. At the end of the day when you make up for the costs you’ve incurred, you must have enough left to count as profit.
Ultimately, the formula to follow is simple:
Revenue earned – Investments or expenses = Profit.
Working out Pricing
An essential part of your pressure washing business plan is working out how much to charge your customers. You can either work out a per square feet rate or charge by the hour. A good guide on the rates you can fairly charge is to study the prevalent rates in your locale and understand what your competition is charging. Typically, prices also depend on the kind of surfaces you’re working on, the inputs you’ll use, and the kind of services you’ll provide.
With all these details and a complete plan for your pressure washing business in front of you, you are now ready to begin work. Do keep in mind that while formulating a business plan can give you an idea of what you can expect to invest and earn, you might have to deal with various ups and downs as you navigate the practical nuances of running your business. However, with hard work and perseverance, you are sure to make a success of it.
References:
1. “What Everyone Ought to Know About Starting a Pressure Washing Business.” Pressure Washr. n.d. Web. 7 Aug 2016.
2. “An Introduction to Business Plans.” The Small Business Encyclopedia, Business Plans Made Easy, Start Your Own Business and Entrepreneur magazine. n.d. Web. 7 Aug 2016.
3. Hinderliter, Robert. “Mobile Power Wash Pricing Survey – Rates for Pressure Washing.” Power wash .com. 31 May 2011. Web. 7 aug. 2016.