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Pressure washing business plan for starting your own business
Do you want to start your own pressure washing business? Starting a pressure washing business is very easy and requires minimal investment in business plan but to carry on this work successfully, you must have excellent business and marketing skills as well as a dedicated team of professional pressure washers having experience or certification in pressure washing. You must also have to acquire permits and licenses from the state so as to start operating your business.
Another important thing that you need to do before you move on to starting this business is preparation of a comprehensive business plan. If you are wondering how to write one then here we are providing you the professional business plan for a pressure washing business startup named ‘James Washing Services’.
Executive Summary
2.1 The Business
James Washing Services will be a pressure washing company which will provide all sorts of heavy duty washing services to its customers. The company will be based in Austin, US.
2.2 Management
James will manage the overall operations of the company while the other staff will comprise of sales executives, pressure machine operators, drivers, and assistants. Considering the extensive experience of James in this industry, he knows everything about how to start a pressure washing business.
2.3 Customers
Our target market is the residential community as well as the corporate sector based in Austin.
2.4 Business Target
Our business targets for next three years are as follows:
Company Summary
3.1 Company Owner
James Washing Services will be owned by John James, a high school graduate who has spent more than 10 years in pressure washing industry.
3.2 Why the Business is being started
After completing high school, James decided to start working full time as he had never been interested in studies. He provided unparalleled pressure washing services in different reputable firms in the United States and helped them grow. Due to the appreciation and motivation from friends and clients, James finally decided to take the big step of starting his own pressure washing firm.
3.3 How the Business will be started
The business will be located midway between the residential and commercial zone of Austin. The facility comprises of Electrical grounds for the wash gun and washing system, high-pressure dead-man type water wash gun, stainless steel water storage tank, centrifugal water pump, insulator washers, 2 vacuum stations, 1 high-pressure wand self-service bay and a fifty foot fully automatic tunnel. The costs needed start pressure washing business are summarized in the chart below:
The detailed start-up requirements are given below:
| Start-up Expenses | |
| Legal | $75,500 |
| Consultants | $0 |
| Insurance | $62,750 |
| Rent | $22,500 |
| Research and Development | $42,750 |
| Expensed Equipment | $42,750 |
| Signs | $1,250 |
| TOTAL START-UP EXPENSES | $247,500 |
| Start-up Assets | $0 |
| Cash Required | $322,500 |
| Start-up Inventory | $52,625 |
| Other Current Assets | $222,500 |
| Long-term Assets | $125,000 |
| TOTAL ASSETS | $121,875 |
| Total Requirements | $245,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $273,125 |
| Start-up Expenses to Fund | $121,875 |
| Start-up Assets to Fund | $195,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $203,125 |
| Non-cash Assets from Start-up | $118,750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $118,750 |
| Cash Balance on Starting Date | $121,875 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $312,500 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $695,000 |
| Loss at Start-up (Start-up Expenses) | $313,125 |
| TOTAL CAPITAL | $221,875 |
| TOTAL CAPITAL AND LIABILITIES | $221,875 |
| Total Funding | $265,000 |
Services for customers
Before you open a pressure washing business, make sure to pay special attention to what services will you offer to your customers because the planning of many subsequent components depends on your services. James Washing Services will offer both in-station and out-station services to its customers. Our main services include:
- Parking lot & driveway washing
- Drain, duct & gutter cleaning
- Window washing & chimney sweep services
- Swimming pool cleaning & maintenance
- Other industrial cleaning services
Marketing Analysis of pressure washing business
The most important component of an effective pressure washing business plan is its accurate marketing analysis that’s why it is advisable to seek the help of marketing experts. If you are starting this venture on small scale, you can take help from this pressure washing business plan sample and carry out a marketing analysis yourself.
For the marketing analysis before starting his venture, James acquired the services of marketing experts who helped him in organizing his pressure washing business ideas.
Note
Marketing analysis is extremely important because it gives you an idea of your position in the market. Therefore, it must be considered before starting a pressure washing business plan development.
5.1 Market Trends
The pressure washing industry is a large industry which generates an annual revenue of $9 billion in the United States. The interesting fact about this industry is that no company has a leading market share in it and there are hundreds of thousands of small to medium scale businesses in the industry. According to recent statistics, there are more than 135,000 licensed pressure washing business in the United States which are responsible for employing more than 187,000 people and the industry is growing at an estimated rate of 0.5 percent.
Franchise Business Planning
5.2 Marketing Segmentation
We are strategically located midway between the residential and commercial zones of Austin so that we may easily target the residential community as well as the corporate and industrial sector. Our experts have identified the following type of target audience which can become our future consumers:
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Corporate Sector:
This target group comprises of the factories, industries, and product manufacturers. These industries frequently need pressure washing services for cleaning and maintaining heavy industrial machines as well as industrial discharge outlets.
5.2.2 Institutions & Organizations:
Our second target group comprises of various institutions and organizations located in Manhattan including government and public-sector organizations. This group seldom needs pressure washing services, such as occasional cleaning of parking and driveways, so it has a little contribution to our sales and revenue.
5.2.3 Residential Community:
This will be our biggest target group as well as the biggest generator of our revenue. This target group will need our services for cleaning and maintaining their swimming pools, drains, gutters etc.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR | ||
| Residential Community | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% | ||
| Institutions & Organizations | 18% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% | ||
| Corporate Sector | 34% | 18,322 | 19,455 | 20,655 | 22,867 | 24,433 | 15.32% | ||
| Total | 100% | 52,089 | 65,143 | 80,873 | 94,156 | 111,410 | 9.54% | ||
5.3 Business Target
- To achieve the net profit margin of $10k/month by first year, $15k by second year, and $25k by third year
- To balance the initial cost of the startup with earned profits by the end of the first year
- To open another facility in downtown location by the end of fifth year
5.4 Product Pricing
Product pricing is one of the most important factors in deciding the strategy for any business. After considering the market demands, we have priced all our products in the similar ranges as of our competitors.
Strategy
Like marketing analysis, sales strategy is also a key success determining factor so make sure to plan it before you start your own pressure washing business.
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6.1 Competitive Analysis
As mentioned earlier, there are more than 135,000 pressure washing business in the United States. To survive and excel in this environment, our biggest competitive advantage will be our exceptional and high-quality services. We will ensure that our workers do not damage the valuable properties of our clients and provide a timely service. The leadership and industry experience of James is itself a huge competitive advantage since he is already a famous figure in the industry.
6.2 Sales Strategy
For encouraging the sales during the initial months of our launch, we will offer a 10% discount on our services for the first three months. We will also give out cold calls and advertise our business in relevant newspapers, TV stations, and social media.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Parking lot & driveway washing | 187,330 | 260,320 | 258,240 |
| Drain, duct & gutter cleaning | 802,370 | 815,430 | 823,540 |
| Window washing & chimney sweep services | 539,320 | 770230 | 1,002,310 |
| Swimming pool cleaning & maintenance | 265,450 | 322,390 | 393,320 |
| Other industrial cleaning services | 1,435,320 | 1,250,430 | 1,762,450 |
| TOTAL UNIT SALES | 3,229,790 | 3,418,800 | 4,239,860 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Parking lot & driveway washing | $140.00 | $150.00 | $160.00 |
| Drain, duct & gutter cleaning | $600.00 | $800.00 | $1,000.00 |
| Window washing & chimney sweep services | $700.00 | $800.00 | $900.00 |
| Swimming pool cleaning & maintenance | $650.00 | $750.00 | $850.00 |
| Other industrial cleaning services | $140.00 | $120.00 | $100.00 |
| Sales | |||
| Parking lot & driveway washing | $214,800 | $274,000 | $333,200 |
| Drain, duct & gutter cleaning | $120,050 | $194,500 | $268,500 |
| Window washing & chimney sweep services | $50,110 | $71,600 | $93,000 |
| Swimming pool cleaning & maintenance | $139,350 | $194,600 | $249,850 |
| Other industrial cleaning services | $62,350 | $72,300 | $82,250 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Parking lot & driveway washing | $0.70 | $0.80 | $0.90 |
| Drain, duct & gutter cleaning | $0.40 | $0.45 | $0.50 |
| Window washing & chimney sweep services | $0.30 | $0.35 | $0.40 |
| Swimming pool cleaning & maintenance | $3.00 | $3.50 | $4.00 |
| Other industrial cleaning services | $0.70 | $0.75 | $0.80 |
| Direct Cost of Sales | |||
| Parking lot & driveway washing | $98,300 | $183,000 | $267,700 |
| Drain, duct & gutter cleaning | $66,600 | $119,900 | $173,200 |
| Window washing & chimney sweep services | $17,900 | $35,000 | $52,100 |
| Swimming pool cleaning & maintenance | $19,400 | $67,600 | $115,800 |
| Other industrial cleaning services | $27,700 | $69,200 | $110,700 |
| Subtotal Direct Cost of Sales | $294,100 | $699,400 | $1,104,700 |
Personnel plan
Personel plan shows information about the staff of a company along with their salaries and you should plan it before you think about how to start a small pressure washing business.
7.1 Company Staff
James will act as the General Manager of the company and will initially hire following people:
- 1 Accountant to maintain financial and other records
- 2 Sales Executives responsible to market and discover new ventures
- 5 Pressure Machine Operators to operate the power machines
- 4 Drivers to transport the mobile machines on-site
- 4 Cleaners/Assistants to assist with cleaning operations
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Accountant | $85,000 | $95,000 | $105,000 |
| Sales Executives | $85,000 | $92,000 | $109,000 |
| Pressure Machine Operators | $166,000 | $173,000 | $180,000 |
| Drivers | $36,700 | $43,400 | $50,100 |
| Cleaners/Assistants | $70,000 | $76,700 | $83,400 |
| Total Salaries | $357,700 | $385,100 | $422,500 |
Financial Plan
Before starting pressure washing business, you must seek the help of financial experts for crafting a detailed financial plan for your startup. The success of a business heavily depends on its accurate financial analysis so make sure to pay special attention to your financial plan before you start a pressure washing business. The financial plan covers the costs incurred on inventory, rent, equipment, personnel and it also covers how you will balance the costs with revenue and earn profit from it.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309,069 | $385,934 | $462,799 |
| Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15,100 | $19,153 | $23,206 |
| Gross Margin | $293,969 | $366,781 | $439,593 |
| Gross Margin % | 94.98% | 94.72% | 94.46% |
| Expenses | |||
| Payroll | $138,036 | $162,898 | $187,760 |
| Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
| Depreciation | $2,070 | $2,070 | $2,070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,000 | $4,250 | $4,500 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $6,500 | $7,000 | $7,500 |
| Payroll Taxes | $34,510 | $40,726 | $46,942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188,766 | $220,744 | $252,722 |
| Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
| EBITDA | $107,275 | $148,110 | $188,945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26,838 | $37,315 | $47,792 |
| Net Profit | $78,367 | $108,725 | $139,083 |
| Net Profit/Sales | 30.00% | 39.32% | 48.64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40,124 | $45,046 | $50,068 |
| Cash from Receivables | $7,023 | $8,610 | $9,297 |
| SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21,647 | $24,204 | $26,951 |
| Bill Payments | $13,539 | $15,385 | $170,631 |
| SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
| Net Cash Flow | $11,551 | $13,167 | $15,683 |
| Cash Balance | $21,823 | $22,381 | $28,239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184,666 | $218,525 | $252,384 |
| Accounts Receivable | $12,613 | $14,493 | $16,373 |
| Inventory | $2,980 | $3,450 | $3,920 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,482 | $10,792 | $12,102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $48,651 | $72,636 | $96,621 |
| Earnings | $100,709 | $119,555 | $138,401 |
| TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
| TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
| Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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