Owning a power washing business allows entrepreneurs to make good money and enjoy flexible working hours. However, there are some administrative pieces that need to be handled before getting started.
A well-researched business plan keeps your company on track and is invaluable when seeking loans or investors. Other important items include acquiring the right equipment, ensuring the safety of your workers, and understanding the local demand for pressure washing services. Read this first!
Equipment
Starting a power washing business can be an excellent way to make some extra income. With low start-up costs and high-profit margins, this business has become a popular side hustle for entrepreneurs. But before you jump in, there are a few things you should know.
One important factor in determining the profitability of a power washing business is the amount of equipment needed. It is recommended that you purchase the highest quality equipment possible, as it will be more durable and efficient than cheaper alternatives.
Besides the pressure washer itself, you will need a variety of accessories. These include a pressure washer gun assembly, a hose connector, and mosmatic swivel, among others. The accessories will help you save time and effort by cleaning surfaces faster and more thoroughly.
Other essential equipment for your power washing business includes marketing materials, uniforms, and a vehicle for transportation. The marketing materials will allow you to create a professional image for your company, while the uniforms will help you build team unity and brand recognition.
Licenses
As with any business, getting the proper licenses and permits is essential. Depending on your state, you may need to register as an LLC, C-corp, or corporation and obtain a tax ID number. Consider adding workers’ compensation insurance to your policies for any employees you bring on board.
Other requirements, such as a wastewater discharge permit and a commercial garbage dump permit, can vary by locale. Finally, you’ll need to get business insurance that covers third-party claims like customers tripping over hoses or property damage from water spraying.
Starting a power washing company can be an excellent way to make money. However, there are several startup costs to consider, including leasing equipment and transportation for taking it from your HQ to client locations. It’s also important to consider the cost of registering your business, acquiring appropriate licenses and insurance, and accounting. All of these factors can add up quickly.
Insurance
Many clients feel more comfortable hiring power washing services when the company can show proof of insurance. General liability insurance for power washing businesses is one of the most basic types of business insurance, and it covers common accidents and risks like third-party bodily injury and property damage.
In addition to GL, your business might need other coverage for specific aspects of its operations. Tools and equipment coverage, for example, helps protect expensive gear while in your vehicles or trailers. Commercial property insurance can help with damage to your shop, warehouse, or office space, as well as rented spaces such as storage units. Workers’ compensation is another crucial policy to consider if you plan to hire employees for your power washing company.
Thimble offers a convenient online experience that makes shopping for insurance easy and affordable. We partner with Hiscox, an established insurer with a long history in the industry and a good appetite for small businesses. Hiscox provides a short-term general liability insurance option for power washing companies at an average cost of around $50 per month, or $600 a year.
Marketing
Your business plan should include a detailed description of your goals and how you plan to achieve them. It will also describe how your company will be structured and if you’ll need to request funding or hire employees. It’s important to decide the legal structure of your business before launching it, as it will affect how much you pay in taxes. You can choose between a corporation, an LLC, or a sole proprietorship.
You should also conduct thorough market research to see how competitive the market is for power washing services in your area. This research will help you determine your value proposition, which is how your business stands out from the competition.
Another way to promote your business is through local business listings. These websites allow you to list your company’s name, address, phone number, and other information for free. You can also use social media marketing to reach out to potential customers. Discounts and incentives are also effective marketing tools. Click here for the next blog post.