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Pressure Washing Business Plan For Mobile Power Wash Contract Cleaners

Starting a Mobile Power Wash Contract Cleaning Business

Preface

Unlike some of the so-called "Business Plans" you might find on other sites that are nothing more than simple cost-estimating, the PowerWash.com Pressure Washing Business Plan for Mobile Professionals is truly comprehensive overview of starting your own Mobile Pressure Washing or Power Washing Business. This copyrighted material is a Power Washing Business Plan that has been created with years and years of on-hand and in the field experience; you can learn to start your own business based on what we've learned as we began ours.

Sample Business Plan

Entering into the mobile power wash contracting business can be rewarding, both personally and financially. The needed start-up capital for equipment is the greatest expense, but it is not as prohibitive when compared with many other businesses. Contributing to this is that most who enter this business perform the work themselves while building a client base, keeping initial labor costs low. As the business grows, additional employees may be needed and can be hired as the workload increases.

The mobile power wash business is filled with people from all backgrounds, each with his or her own motivation for pursuing this line of work; there is no typical individual. Those who remain in the business do so because they like the work and enjoy working with others, and they benefit financially. The successful contractor is one who is willing to do the legwork to build a customer base, and provide quality work and services at a fair price for all involved.

Since everyone’s needs and motivations are different, this business plan is a simply template, designed to provide some guidance give an idea about what to expect in the first one to three years of being in business. It is not definitive, and needs to be adjusted to meet the requirements of each individual.

Getting Started

In order to begin a mobile power washing business, the first steps are 1) purchasing or leasing equipment and 2) deciding what type of service to perform. The mobile power wash industry has numerous applications, and all have profit potential. Most contractors can work in several areas at the same time. Among the most visible jobs performed by mobile power wash contractors are cleaning:

  • Trucks and cars
  • Building and/or home exteriors
  • Kitchen exhaust systems (vent-a-hoods)
  • Airplane exteriors
  • Shopping center parking lots and sidewalks
  • Parking garages
  • Parking lots and sidewalks
  • Sports stadiums
  • Construction equipment
  • Manufacturing areas with heavy machinery both interior and exterior
  • Farming equipment and buildings
  • Wood restoration for decks, fences, and log homes

This is but a small sampling. Many more options are available, and with a little imagination and ingenuity, an aggressive power wash operator can find business almost anywhere. Being a specialized or diversified services company is up to the individual. According to the Power Washers of North America (PWNA), an organization that represents power washing contractors, contractors in metropolitan areas tend to specialize, while contractors in rural areas diversify. The principal reason for this difference is the amount of work available.

Equipment

The equipment needed depends, in part, on the services offered. The best resource for what is needed is a power washing supply company, such as Powerwash.com, that provides equipment for all possible applications. Their experienced professionals work with customers to help determine needs and what best meets them. They go over the complete range of products, the prices, and explain the differences among them. They will also guide you to the best value for your budget and what services you want to offer.

In general, the expected startup costs average $6500 - $10,000 for the basic equipment needed to begin work. This includes hoses, wands, sprayers, tips, chemicals, etc.  For the most important piece of equipment – the pressure washer itself – leasing may be a better option. Depending on the size needed, costs run from $100 - $500/mo. Prices increase or decrease depending on the specifications of the equipment.

Expenses and Cost Projections

In any business, there are necessary expenses. Understanding those expenses helps in pricing when bidding on a job. The success of a mobile power washing contractor rests on the ability to keep expenses stable while contracting at a rate that provides an acceptable profit margin. Putting these two together helps determine bid prices. Below is a list of common expenses, and the percentage of gross sales they should reflect.

This basic projection is based on a contract cleaner doing cosmetic cleaning with a hot water mobile power wash rig. However, if you are going to be using a cold water unit, there will not be any kerosene heat expense but your chemical expense will be higher. You will need to modify the projection based on how you are going to operate and market your business.

Expense Percentage of Gross sales
Labor (including owner salary) 20% - 45% (exceeding 45% will result in profit loss)
Chemicals and Supplies 2% - 6%, not to surpass 15%
Fuel for equipment 2% - 6%
Fuel for truck(s) 2% - 6%
New Equipment (lease or depreciation) 3% - 6%
Truck Maintenance and Repair 2% - 8%
Equipment Maintenance and Repair 2% - 5%
Rent 1% - 3%
Utilities 0.5% - 2%
Office Supplies 0.5% - 2%
Advertising 1% - 3% (not to exceed 6%)
Communications devices 2% - 4%
Insurance 2% - 3% ($600-$1200/yr for startup businesses)
Licenses, permits, business taxes 0.5% to 0.9% (does not include income taxes)
Professional Services (legal/accounting) 0.5% - 1%
Bad debt 1% - 3% (not to exceed 5%)
Uniforms 0.5%  - 1%
Water 0.1%  - 0.2%

By taking the above percentages and combining them with our projections, you can enter them into any spreadsheet program and do your own financial analysis.

The most popular funding sources for Contract Cleaners are: Credit Cards, banks, personal savings, friends and relatives, credit unions, SBA guaranteed loans, and leasing companies.

At present, credit cards are probably the most popular source of financing for contract cleaners. However, as regulations are changing, carefully read all materials regarding their use, payment schedules, and moving debt among cards offering low introductory rates.

There is a great deal of information available on the Internet at the U.S. Small Business Administration's website at http://www.sba.gov/. The information that we are providing is a general guide you can refer to when filling out SBA Loan forms for projections, etc.

Business Plan for George's Mobile Power Wash
George M. Smith, Owner
2513 Warfield Street
Fort Worth, Texas 76106-7554
817-625-4213

Career Objectives: Establish, own, and operate a Mobile Power Wash Business in Central Texas
Description of business
Proposed name: George's Mobile Power Wash
Proposed start date: March 1999

George’s Mobile Power Wash will be a sole proprietorship with George M. Smith as owner. A Corporation Structure may be evaluated as the business grows.

Description of services

The mobile power wash business is a solution to a major problem; namely, how to keep things clean. With concerns over pollution and the knowledge that dirt can be destructive to an image, can cause costly repairs, renovations, or replacement, the need for effective, environmentally sound cleaning processes exists. Since most items are immovable, practically speaking, they must be cleaned at their location. Mobile power washing is the solution to the problem.

The basic concept of high pressure washing with detergent has been tested and proven. By mounting the cleaning equipment on a truck or trailer, adding a water tank, the units are completely portable and self-contained. The equipment used is similar to that of a typical coin-op car wash, only portable and more powerful.

With the correct combination of pressure, flow, chemicals, and temperature a wide variety of products and surfaces can be effectively cleaned. Wash water is captured so that there is "no off property discharge" and discharged to Sanitary Sewer, thereby conforming to the Clean Water Act and protecting the environment.

George’s Mobile Power Wash will provide environmentally sound pressure washing services for the following:

  • Trucks and automobiles
  • Building exteriors,
  • Kitchen exhaust systems (vent-a-hoods),
  • House exteriors, and adjacent property
  • Airplane exteriors
  • Shopping center parking lots
  • Parking garages
  • Parking lots
  • Sports stadiums
  • Sidewalks
  • Construction equipment,
  • Manufacturing areas with heavy machinery, both interior and exterior
  • Farming equipment and buildings, and
  • Wood cleaning and restoration of log homes, decks, and fences

As other opportunities open up, they will be pursued.
Location of the Business

The business will operate from my home and the equipment stored in my double car garage at

2513 Warfield Street
Fort Worth, Texas 76106-7554.

An answering machine will be installed to take phone calls when I am not available, and I will carry a cell phone This projection includes rental costs as I am considering operating out of a small self-storage center. All work will take place at the customer's site. No pressure washing will be done at my residence.

Marketing the Business

We will start out by making cold calls in person and by telephone, asking for the opportunity to send or leave brochures and business cards. Hopefully, these items will get filed for later reference when needed. When cold calling we will collect names, addresses, phone numbers, fax numbers, and email addresses for development of a future contact database.

When calling we will determine if they have an immediate need, future need, are they satisfied with their current contractor, or do they know someone else who could use our services. We will make a checklist of questions of the above items as reminders when calling. For prospects having a need for our services, three callbacks will be scheduled.

Initially we will concentrate on fleet washing and deck cleaning for homes. Fleet washing is primarily a weekend activity and deck cleaning can be done during the week. This will provide a large economic base from which to launch the company. We will also accept all work we can find.

Placement of regular listings in the yellow pages will be in the following areas:

  • Truck Washing Cleaning
  • Steam Cleaning Industrial
  • House Washing
  • Roof Cleaning
  • Building Cleaning-Exterior
  • Deck and Patio Builders
  • Wood Preserving, and Cleaning
  • Roof, Patio, Sidewalks

In newspapers, an advertisement will be placed under the "Home Repair" section for "Decks".
There are three major trade associations serving the mobile power wash industry.

These national trade associations provide business resources for the power wash contract cleaner on a variety of topics including marketing, technical information, trade shows, and networking. Initially I will join PWNA, as it services all segments of the power wash industry. There is also a great deal of marketing and technical information on the internet, much of which is free. In particular, the Powerwash.com, is an excellent resource for this information.

Competition

There are fifteen companies listed in the yellow pages, most of them specializing various markets. The larger the contractor the more specialized was their work. Upon calling PWNA I found out that in large metropolitan areas, contract cleaners generally serve specialized markets, while in smaller, rural areas contract cleaners serve all markets within a one to two hour drive. As owner/operator, I will have the advantage of being on all jobs to ensure good customer relations and the quality of my work.

Personnel Required

Initially I will have no employees and I will do all the work. As the business grows, I will hire part time, then full time, employees. My wife will keep my books on the computer using "Quick Books Pro" software. This projection is based on our doing our own payroll. Once the business grows, the payroll may be outsourced to a payroll service that will handle all the payroll taxes, workers’ compensation, and health insurance, or we may have our CPA do the payroll. The "Labor" figure in the projections is for my employees. Because I am the sole proprietor, my salary appears in the "Gross Profit" figure. In addition, my wife has offered to help on weekends as needed until the business is established.

Licenses

In the state of Texas, licensing is not required. Some pressure washing services are taxable, and therefore a sales tax number will be required from the state. A federal I.D. number will be obtained for taxes. Please find attached:

Supporting documents -Personal
1. Personal Financial Statement
2. Resume
Supporting documents - Business
1. Capital Equipment and Supplies List
The equipment will be purchased from Powerwash.com of Fort Worth. Their bid is attached.
2. Financial Projections for "George’s Mobile Power Wash"

FINANCIAL STATEMENT

Assets

Cash On Hand and in Banks

$6,000.00

Savings Accounts

$2,000.00

IRA or other Retirement Accounts

$2,000.00

Accounts Notes Receivable

$0.00

Life Insurance-Cash Surrender Value

$2,500.00

Stocks and Bonds

$4,000.00

Real Estate

$70,000.00

Automobile-Present Value

$15,000.00

Other Personal Property

$4,000.00

Other Assets

$2,000.00

Total

$107,500.00

 

Liabilities


Accounts Payable (Credit Cards, etc)

$3,000.00

Notes Payable to Banks and Others

$2,000.00

Installment Account (Auto)

$9,000.00

Monthly Payments

$300.00

Installment Accounts (Other)

$7,000.00

Monthly Payments

$300.00

Loan on Life Insurance

$1,500.00

Mortgages on Real Estate

$45,000.00

Unpaid Taxes

$0.00

Other Liabilities

$0.00

Total Liabilities

$67,500.00

Net Worth (Assets less Liabilities)

$40,000.00

 

 

Sources of Income

Salary

$45,000.00

Net Investment Income

$500.00

Real Estate Income

$0.00

Other Income

$0.00

Total

$45,500

 

Contingent Liabilities

As Endorser of Co-Maker

$1,000.00

Legal Claims Judgments

$0.00

Provision for Federal Income Tax

$0.00

Other Special Debt

$500.00

Total

$1500.00


Resume
George M. Smith
2513 Warfield Street
Fort Worth, Texas 76106-7554
Phone: 817-625-4213

Career Objectives: Establish, own, and operate a Mobile Power Wash Business in north central Texas

Experience


May 1996 - Present

City Automotive, Fort Worth, TX

Automotive Mechanic on automotive repair and service
June 1993 - May, 1996

Fast Lube Oil Change, Arlington, TX

Quick Change Oil Technician. Responsible for the servicing of automobiles.
January 1990 - June, 1993

City Wide Lawn Service, Burleson, TX

Landscape Technician. Responsible for lawn maintenance, including mowing, and planting of shrubs, trees, and grass.

Education


Mansfield High School
Graduated May, 1989
Tarrant County Junior College Completed one semester, 15 hours

Additional Skills
Automotive Mechanic on General Motors Vehicles
Computer Skills: Microsoft Office Suite, Internet and Quick Books Accounting Software


References
John Doe, III
746 Walnut Street
Fort Worth, TX 76106
Phone: 817-625-4689

Roger Wash
1425 Water Street
Burleson, TX 76028
Phone: 817-296-5142

Roger Dodger
843 Cedar Lane
Cedarville, TX 76023
Phone: 817-334-2501

Capital Equipment List (Prices as of Nov 7, 2008)


Powerwash.com RK-41-1AE Single Axle Trailer Wash Rig

$9,050.00

VSF-55 Vacuum Sludge Filtering System

$2,310.00

20 Foot Vacu-boom

$1,132.00

Two DC-4.6 Drain Covers

$320.00

Two PD-620 Portable Dams

$160.00

WPSP-25 Wash Pit Sump Pump

$149.00

Chapin Acid Sprayer

$79.00

Subtotal

$12,880.00

Taxes

$1,062.60

Total

$13,942.60

 

Chemicals Supplies


100 lbs R-109 Truck Wash Detergent

$187.00

DNB-1430 Heavy Duty Degreaser Mix-Kit

$180.00

50 lbs V-501 Vent-A-Hood Degreaser

$114.00

5 gallons OD-100 Oriental Detergent

$65.00

8 lbs DSR-49 Deck Siding Restorer

$33.00

5 gallons DSR-50 Deck Restorer plus Stripper

$53.00

Subtotal

$632.00

Taxes

$52.14

Total

$684.14

Financial Projections for George’s Mobile Power Wash

Income and Expense Projections for the 1st year of Operations

Direct Cost Of Sales

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Total Year

% of Gross Sales

Labor Part-time

000

000

000

325

325

325

400

400

400

325

325

400

3225

5.74

Chemicals Supplies

60

88

140

200

200

200

240

240

240

200

200

240

2248

4.00

Kerosene

45

66

105

150

150

150

180

180

180

150

150

180

1686

3.00

Gasoline

120

150

160

225

225

225

270

270

270

225

225

270

2635

4.69

Total Direct Cost

225

304

405

900

900

900

1090

1090

1090

900

900

1090

9794

17.43

Indirect Cost of Sales

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Washer Payment

275

275

275

275

275

275

275

275

275

275

275

275

3300

5.87

Truck Expenses

100

100

100

150

150

150

200

200

200

200

200

200

1950

3.47

Maintenance Repair

100

100

100

100

100

100

100

100

100

100

100

100

1200

2.14

Rent

100

100

100

100

100

100

100

100

100

100

100

100

1200

2.14

Utilities

20

20

20

20

20

20

40

40

40

40

40

40

360

0.64

Office Supplies

200

50

50

50

50

50

50

50

50

50

50

50

750

1.33

Advertising

300

120

120

120

120

120

120

120

120

120

120

120

1620

2.88

Telephone

75

75

75

75

75

75

75

75

75

75

75

75

900

1.6

Insurance

75

75

75

75

75

75

75

75

75

75

75

75

900

1.6

License Permits Taxes

500

.

.

65

65

65

80

80

80

65

65

80

1145

2.04

Accounting Legal

100

65

65

65

65

65

65

65

65

65

65

65

815

1.45

Total Indirect Cost

1845

980

980

1095

1095

1095

1180

1180

1180

1165

1165

1180

14140

25.16

Total Expenses

2070

1284

1385

1995

1995

1995

2270

2270

2270

2065

2065

2270

23934

42.59

Gross Sales

1500

2200

3500

5000

5000

5000

6000

6000

6000

5000

5000

6000

56200

100

Gross Profit

-570

916

2115

3005

3005

3005

3730

3730

3730

2935

2935

3730

32266

57.41

Operating Hours

38

44

54

77

77

77

80

80

80

80

80

96

.

.

Income and Expenses Projection for the 2nd year of Operation

Direct Cost Of Sales

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Total Year

% of Gross Sales















Labor

1000

1200

1500

1500

2000

2000

2000

2000

1500

1200

1200

1500

18600

19.07

Chemicals Supplies

310

310

340

340

360

360

390

390

310

240

240

310

3900

4.00

Kerosene

235

235

250

250

270

270

295

295

235

180

180

235

2930

3.01

Gasoline

350

350

378

378

400

400

440

440

350

270

270

350

4376

4.49















Total Direct Cost

1895

2095

2468

2468

3030

3030

3125

3125

2395

1890

1890

2395

29806

30.57















Indirect Cost of Sales

.

.

.

.

.

.

.

.

.

.

.

.

.

.















Washer Payment

275

275

275

275

275

275

275

275

275

275

275

275

3300

3.38

Truck Expenses

250

250

250

250

250

250

250

250

250

250

250

250

3000

3.08

Maintenance Repair

100

100

100

100

150

150

150

150

100

100

100

100

1400

1.44

Rent

150

150

150

150

150

150

150

150

150

150

150

150

1800

1.85

Utilities

75

75

75

75

75

75

75

75

75

75

75

75

900

0.92

Office Supplies

50

50

50

50

50

50

50

50

50

50

50

50

600

0.62

Advertising

125

125

125

125

125

125

125

125

125

125

125

125

1500

1.54

Telephone

80

80

80

80

80

80

80

80

80

80

80

80

960

0.98

Insurance

75

75

75

75

75

75

75

75

75

75

75

75

900

0.92

License Permits Taxes

200

240

300

300

400

400

400

400

300

240

240

300

3720

3.82

Accounting Legal

75

75

75

75

75

75

75

75

75

75

75

75

900

0.92















Total Indirect Cost

1455

1495

1555

1555

1705

1705

1705

1705

1555

1495

1495

1555

18980

19.47















Total Expenses

3350

3590

4023

4023

4735

4735

4830

4830

3950

3385

3385

3950

48786

50.04















Gross Sales

7800

7800

8400

8400

9000

9000

9750

9750

7800

6000

6000

7800

97500

100















Gross Profit

4450

4210

4377

4377

4265

4265

4920

4920

3850

2615

2615

3850

48714

49.96















Operating Hours

104

104

112

112

120

120

130

130

104

80

80

104

.

.






























Income and Expense Projections for the 3rd year of Operations

Direct Cost Of Sales

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Total Year

% of Gross Sales

Labor Part-time

1500

2000

2000

2000

3200

3200

3200

3200

2000

2000

2000

2000

28300

24.97

Chemicals Supplies

340

360

385

440

440

440

440

440

360

315

315

340

4615

4.07

Kerosene

300

315

340

380

380

380

380

380

315

275

275

300

4020

3.54

Gasoline

380

410

435

480

480

480

480

480

410

350

350

380

5115

4.51














Total Direct Cost

2520

3085

3160

3300

4500

4500

4500

4500

3085

2940

2940

3020

42050

37.09














Indirect Cost of Sales

.

.

.

.

.

.

.

.

.

.

.

.

.

.














Washer Payment

275

275

275

275

275

275

275

275

275

275

275

275

3300

2.91

Truck Expenses

260

260

260

260

260

260

260

260

260

260

260

260

3120

2.75

Maintenance Repair

150

160

160

160

200

200

200

200

150

150

150

150

2030

1.79

Rent

150

150

150

150

150

150

150

150

150

150

150

150

1800

1.59

Utilities

85

85

85

85

85

85

85

85

85

85

85

85

1020

0.90

Office Supplies

50

50

50

50

50

50

50

50

50

50

50

50

600

0.53

Advertising

140

140

140

140

140

140

140

140

140

140

140

140

1680

1.48

Telephone

85

85

85

85

85

85

85

85

85

85

85

85

1020

0.90

Insurance

75

75

75

75

75

75

75

75

75

75

75

75

900

0.79

License Permits Taxes

300

400

400

400

640

640

640

640

400

400

400

400

5660

4.99

Accounting Legal

70

70

70

70

70

70

70

70

70

70

70

70

840

0.74














Total Indirect Cost

1640

1750

1750

1750

2030

2030

2030

2030

1740

1740

1740

1740

21970

19.37














Total Expenses

4160

4835

4910

5050

6530

6530

6530

6530

4825

4680

4680

4760

64020

56.46














Gross Sales

8400

9000

9600

10800

10800

10800

10800

10800

9000

7800

7800

7800

113400

100














Gross Profit

4240

4165

4690

5750

4270

4270

4270

4270

4175

3120

3120

3040

49380

43.54














Operating Hours

112

120

128

144

144

144

144

144

120

104

104

112

.

.

























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