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Michael01

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    Michael01 got a reaction from Tyrone McGee in Lots of Questions.... Need Help From You Business Owners In The Industry   
    I have lots of questions and dearly need help and opinions from several of you guys in the industry, who might have a little time to spare and help someone out. I'll start by introducing myself and move on to some questions for you guys. Again, if your willing to help, your time is greatly and dearly appreciated! With that said, I'm not looking for negative feedback, but will accept honest criticism. I'm a long-time landscaper, a member of large commercial mowing forums, and I hear guys tell new guys on there, how hard it is to get started, and many criticize them rather than helping answer their questions. So I'm looking for honest help of answering my questions so I can gain some insight on the industry.
     
    A little about me: 
    As mentioned above, I'm a long-time landscaper. I started mowing and doing residential and commercial lawn care many years back. I developed a passion for it, grew a good size business, and really enjoyed it over the years. I started off from the bottom, with a push-mower and a truck, working 7-day weeks, from dusk to dark. A few years later, I was maintaining 15+ apartment complexes and commercial contracts, and over 40 residentials. I have a good amount of knowledge in business and come from a business family. However, like any other service industry, landscaping has its set-backs.  Mostly high over-head, high operation expenses, and a lot of hassles when it comes to equipment maintenance. When I got into commercial landscaping, it almost seems as if things are constantly breaking, this year we're replacing several engines on mowers, at several thousand dollars each. The lawn and landscaping industry has really payed me well, but I'm not sure it's worth all the hassle to keep running. My days are often long, then I come home, and often find myself spending hours and hours at night working on things, then paper work until Midnight, and back up to mowing the next morning.
    Now that you know a little about me, I've been looking into the Pressure Washing Industry. I've been running some numbers, the numbers don't look far off or bad in comparison to what I currently do. The expenses look a lot less on the Power Washing side. And not to say this industry doesn't have its down-falls, because every industry has those. But it honestly looks like a lot less stress and hassles. So that brings me to this forum to pick all of you seasoned guys knowledge, for those whom are willing to share their knowledge and experience, I'd appreciate your time.  
     
    Power Washing Business and Questions: 
    I know this will be a major transition and take many leg hours of research, reading, and learning to understand things better. Please ignore my basic newbie questions, but I'm starting from ground zero and honestly, some of my questions may sound really newbie or annoying, but like I said I'm starting with the basics, so here we go.
     
    1.  One problem I'm having is understanding operations and income. One thing I loved about landscaping was my money was consistent each month. I always knew I had x amount of money coming every month and who it was coming from. The only way I can see that happening in the "Pressure Washing Industry" is by targeting a large number of commercial contracts, whom are willing to pay for Pressure Washing several times a year. Possibly places that need a "Neat and Clean" appearance to attract customers. I'm thinking Hotels (Structure and Parking Lot), Gas Stations (Parking Lot and Structures), commercial office and buildings, and etc. So my question is, when finding commercial contracts, how are you guys coming across consistent income? Are you guys selling them x amount of washings per year? I could see offering service visits at intervals for example, every 30-days, 90-days, and 120-days on commercial places and offering a discount per sq. foot the more cleanings they agree to per year? Does this sound right, or am I way off?
     
    2. Question two involves generating residential Income. With my old business, I frequently used EDDM or Every Door Direct Mail marketing to reach and gain residential clients. I would use an awesome flyer, with professional copywriting to gain the attention of prospects. I've been running some numbers, starting out solo, I would need to average 1-2 houses per day, or a minimum of 5 driveways a day, to make a living that would equal up to my previous pay. I have money in the bank to start-up and was considering sending out 2,500 Flyers Per Week through EDDM. I've always averaged a 1 to 3% response rate. But worse case scenario, sending out 2,500 a week, at only a 1% response rate, that should be enough to pull in 20-25 jobs per week.  Does this sound like it would be a reasonable way to gain residential clients? Also, are residential clients usually willing to sign up for a cleaning say example (every 180 days) or (Twice a Year) or are they usually a one time job?
     
    3. The next question involves equipment and set-up. What would you say the basic equipment that is needed to get started or at least test the waters? I live in a huge city (Houston) and everyday I dread pulling a large landscape trailer full of equipment in traffic. My idea on it is an efficient set-up, not having to pull a trailer. I do have a HD truck, and my idea was a flatbed, large tank, commercial cold washer (4,000 psi / 4 gpm) to start, possibly a hot washer, a telescoping wand, ball valve, hoses, a good commercial surface cleaner, chemicals, and ladders. Am I missing anything that would be a basic necessity? 
     
    4. My last question involves pricing. I've did a little bit of research on numbers. I know the average price per square foot in my area. My question is what are you guys striving for per hour on Residential and Commercial? My minimum has always been $50.00 an hour, however I often shoot for $75.00 an hour when I bid. I was thinking on the Pressure Washing side around $75.00 an hour? Does this sound reasonable?
     
    5. Next, my last questions involve efficiency. I do have pressure washing experience, however in a different environment. I used to do pressure washing on military equipment. Cleaning the tents, equipment, and machinery. However, I've never got into residential and commercial. This question is pretty broad and basic, but I'd just like a reasonable guestimate as I know there are a lot of factors that can play in here.  How many driveways per day (Using a 24" Surface Cleaner) could one person expect to do in a day after they are seasoned and experienced? Also, how many houses could a solo person expect to do in a day, using a (1-story - 2,000 square foot surface area) as an example. I was thinking (5-6 driveways) per person, or (2) Houses per day. 
     
    6. My last question involves selling and up-selling on (RESIDENTIAL). When you guys market, what is your bread and butter on calls that you receive? Do you sell mostly "House or Structure" Cleaning, and then up-sell driveways, windows, patios, fences, and so on? What would you say you get the most calls for (Houses and Structure, Driveways, or something else? 
     
    Again, I'm sorry for all the basic questions, but this is a short list of the things that are confusing me, that I desperately need answers for, and insight on, to at least get me started drawing up a business plan. I really and truly appreciate any help and answers from anyone who is willing to help me get started! 
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    Michael01 got a reaction from Clean & Clear in Lots of Questions.... Need Help From You Business Owners In The Industry   
    Rod, you definitely gave me some guidance and insight that I needed. I decided to go ahead and go through for it, so I'm going to give it a round. Having been in the service industry for nearly a decade, I really don't see it as being difficult to get up and running. I like your idea of a sprinter van, I will defiantly be changing vehicles now that my towing truck better known as gas guzzler won't be needed to tow around 3 or 4 zero turns at a time. I'll probably go for something economical. My main and only concern I would appreciate you touching on a little more is marketing and getting constant cash flow coming in. 
    I'm really worried about constant cash flow, as in landscaping, I've had year around customers, on a weekly schedule, and that money was guaranteed every month. With power-washing I worry the week work schedule and work load could simply depend on luck in marketing. What do you do to guarantee cash flow? The first year, I plan to start solo, but can easily hire someone if it takes off. Just to make a living, according to my math, I'll need at bare minimum of 15 to 25 customers a week, depending on how much they spend on up-sells. If I can up-sell a lot through the week, I could make it work with 15 customers or jobs per week. 
    Here's what I have planned for marketing, let me know what you think and if you think it will be enough to book between 15 and 25 jobs a week. 
    Step 1:  Tomorrow I will start on building a website and a business Facebook account. I already have a business name in mind that I'll need to file a DBA for that is not in use around here. I'll use the social media for creating a portfolio and building a name, and also have the website ranked near the top on Google.
    Step 2: I have a local printer that prints me (10,000 Full Page 8.5 x 11) Flyers at a time for $250.00. (I use full page, because I noticed an increased response rate in previous years over business cards and small postcards.)  I plan to have 2,500 of these go out every single week. I plan for this to be my primary mode of marketing. I will either pay someone to distribute 2,500 each week or use EDDM through the postal office. I expect a 1% response rate at minimum off of them each week. In turn, this should provide me with 25 calls at minimum. I prefer this method because I can control my work area and have a tight route each week, and practically be in the same zip code all week rather than having too much windshield time between each stop. 
    Step 3:  Every job I complete, I intend to drop a 2nd flyer off by hand to the closest (5) neighbors, letting them know we had just did their neighbors, which I'm sure they will take notice of. I will also use coupons on the flyer to reel them in. 
     
    With that said, I'm hoping these (3) small steps will be enough to at least get my feet wet and reel in the amount of work or 15-25 jobs a week that I need to keep a float until I build a reputation. 
     
    Ram, please let me know what you think about the above and you think it will AT LEAST real in enough work to keep a solo guy busy his first year? Also, my ears are open to any other tricks or methods you might have to reeling in or securing steady cash flow. 
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