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 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 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:

Pressure Washing Business Plan - 3 Years Profit Forecast

Pressure Washing Business Plan 1
Strategic/Operational Business Plan
This deliverable will contain a business development road map that will help the company achieve its goals and become a market leader.

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:

Pressure Washing Business Plan - Startup cost

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

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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 Plan

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:

Pressure Washing Business Plan - Market Segmentation

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.

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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

Pressure Washing Business Plan - Sales Monthly

6.4 Sales Yearly

Pressure Washing Business Plan - Sales Yearly

6.5 Sales Forecast

Pressure Washing Business Plan - Projected Cash Flow Diagram

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

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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

Pressure Washing Business Plan - 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

Pressure Washing Business Plan - PROFIT MONTHLY

8.3.2 Profit Yearly

Pressure Washing Business Plan - PROFIT YEARLY

8.3.3 Gross Margin Monthly

Pressure Washing Business Plan - GROSS MARGIN MONTHLY

8.3.4 Gross Margin Yearly

Pressure Washing Business Plan - GROSS MARGIN YEARLY

8.4 Projected Cash Flow

Pressure Washing Business Plan - Projected Cash Flow Diagram

 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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