Do start ups underestimate what it takes?

[Mountain View 14]

I've been noticing a fair amount of professional rigs for sale locally on craigs list and ebay. In your opinion, how many start ups don't make it past a year or two? I get the feeling many of them think, "Hey, that's easy, I can do it" and drop several thousand on a trailer rig only to find out it's not that easy. Did they underestimate what it takes to sell a service to people, charge too little and get frustrated because they can't make money, don't realize the amount of work involved to get something like this off the ground? Probably all of the above but I'm interested what others think.

I'm in my fourth year part time, wood and residential only for now, and am happy with the income I make (profitable from year one). I may pull my finger out and get more aggressive next year.

Edited July 9, 2009 by Mountain View

[TNRoofCleaner 16]

I know that I have under estimated the amount of time it takes. But that is my learning curve. I have not killed myself doing it either.

My take on it is this.

1. As I learn I will get faster. (at least I better)

2. As I learn I will find out that I am fast and need to adjust the time I charge.

What I think the main problem is, is that they are borrowing money to start and buying the biggest and the best right from the start. I am using rental machines until I can pay for one with cash. I am going to grow with cash or I will not grow. I am still working part time to fill in the blank weeks but things are starting to pick up and may have to go full time cleaning. Not a bad thing.

Told my wife I was going to find a dirty, nasty job and get paid for it. Well I am on my way. This is my first year by the way.

[Mountain View 14]

I started with 3k seed money, basic equipment and trailer. Paid myself back and only upgrade when the business can pay cash for it. I agree about others financing too much and then going bust.

[plainpainter 217]

90% of contractors go out of business in the first 5 years. The main reason being they weren't businessmen. It's one thing to master the 'technicals' of any trade - it's quite another to start a marketing/advertizing campaign, get accountants, orchestrate Web sites and SEO managment, estimation, sales, and finally dealing with a public that constantly wants to devalue your service - and are aided and abetted by other guys starting who are charging too little.

[keepinitclean 14]

Well put Dan!!

There are so many guy's trying to become professional power washers overnight around here it nuts, and a lot of them are starting to give us real full time power washer a bad rap. I've learned the hard way too many times, but I'm still in biz after 7 years on my own. Don't underbid yourself ever, Rule #1, Rule number two- WORK!

[TNRoofCleaner 16]

The other thing I have seen is they may only have it a short time but want nearly what they paid for it. Not from me. I don't know you or how you maintained it. They need to think of it like a car. Value drops like a rock. the worst thing is that there are not as many buyers of this type of equipment.

[Beth n Rod 1,279]

Since this industry in particular is so obscure in it's scope of work, there is much to be overlooked.

Aside from general business knowledge, there is a learning curve that is hard to anticipate unless you have someone to guide you.

I think BBS's such as TGS and others help quite a bit but nothing beats one-on-one learning from someone who has experience and gotten it right.

Rod!~

[Richard 17]

Did they go into it thinking "they knew or would learn how to do the work, and that all they had to do was the job and they would be succesfull

OR,

Did they go into it thinking "that they wanted to own a business", AND, that they would eat sleep and breath it until their business was succesfull.

Those are two complete different outlooks. I agree that if you build it, they will come. But if you built it, you better be like the town crier, and let EVERYONE know..They will only come if they know it's there.

Sell the job, get the job done in the amount of time slotted, collect the money and the taxes, pay everyone for everything at a profit, (includeing your wages), submit your taxes. NOW, you are starting a business.

Now, repeat again and again and again............

If it was easy, everyone would do it and it then would no longer be as rewarding.

Edited July 10, 2009 by Richard

[Paul Kassander 26]

90% of contractors go out of business in the first 5 years. The main reason being they weren't businessmen. It's one thing to master the 'technicals' of any trade - it's quite another to start a marketing/advertizing campaign, get accountants, orchestrate Web sites and SEO managment, estimation, sales, and finally dealing with a public that constantly wants to devalue your service - and are aided and abetted by other guys starting who are charging too little.

Exactly, the work is the easy part it is being able to run a business and do all the other things that make it successful.

[MattsPristinePW 14]

Did they go into it thinking "they knew or would learn how to do the work, and that all they had to do was the job and they would be succesfull

OR,

Did they go into it thinking "that they wanted to own a business", AND, that they would eat sleep and breath it until their business was succesfull.

Those are two complete different outlooks. I agree that if you build it, they will come. But if you built it, you better be like the town crier, and let EVERYONE know..They will only come if they know it's there.

Sell the job, get the job done in the amount of time slotted, collect the money and the taxes, pay everyone for everything at a profit, (includeing your wages), submit your taxes. NOW, you are starting a business.

Now, repeat again and again and again............

If it was easy, everyone would do it and it then would no longer be as rewarding.

I totally agree that you need to eat, sleep and breath your business to be successful. I am in my first year and things are actually going better than expected so far. I have ran into little trouble (mostly b/c of TGS) and I am constantly thinking of ways to improve.

[Scott Stone 604]

90% of contractors go out of business in the first 5 years. The main reason being they weren't businessmen. It's one thing to master the 'technicals' of any trade - it's quite another to start a marketing/advertizing campaign, get accountants, orchestrate Web sites and SEO managment, estimation, sales, and finally dealing with a public that constantly wants to devalue your service - and are aided and abetted by other guys starting who are charging too little.

90% of any business does not last five years. There is nothing special about this industry.

And yes, most new start ups do not take into account all the things that need to be done to be a viable business.

[plainpainter 217]

90% of any business does not last five years. There is nothing special about this industry.

And yes, most new start ups do not take into account all the things that need to be done to be a viable business.

I thought that statistic was unique to the painting and pressure washing trades, my bad - if you're right. I did see another statistic for painting that said in the second set of 5 years that another 90% of the remainder goes out of business, leaving just one guy in a hundred after a 10 year duration.

[XSTREAM H20 14]

Of all you successful washers, how many became successful by learning on your own, and how many did it by doing this stuff for somebody else and then branched off and started up your own gig? How many had an education in small business and accouting, marketing as well as a good sales on top of all that?

I've been doing nothing but researching on top of researching and there is still so much to learn. Making time to go get hands on with somebody who is a professional already is a task in itself. I myself are one of those guys who accidently stumbled into the power washing industry. Ill admit $$$ signs made my Dad and I hungry to get a business going at first, but like anything else there's a heck of lot more to it then just going out and wash dirty stuff.

Keeping my full time job and doing small stuff on the side to learn is what I'm concentrating on. Eventually my goal is to do it full time though. It is enjoyable and rewarding when you can step back and know you did that work and it truely looks great. Even though I am new to the industry, ill throw in my little tip...a problem I've had is having my girlfriend want me home for this and that since I generally make my own schedule. Make sure your family, wife, husband, significant other or whoever is understanding to your commitment to your business. You owe it to yourself for taking the risk of investing your equipment. 7 days a week is often an only option whether its book keeping, finding more clients or doing the washing. I think people who fail sometimes get caught up in the "its my business" bubble and take off whenever they want and choose to spend their freetime in a non productive way. Expecially with a young business.

Best of luck!

Edited July 11, 2009 by XSTREAM H20

[Ron Musgraves 240]

[ame=http://www.youtube.com/watch?v=mcD7yNmHF8I]YouTube - Grime Scene[/ame]

[Scott Stone 604]

Starting a Business: Top 7 Reasons Why Small Businesses Fail

Notice that these statistics are for companies that have actually employed people, and not for solo operators, like many of us. I really think that variable says a lot, and that solo enterprises are usually more likely to fail.

[gutterdog 14]

i STARTED GUTTERDOGS BOUT 5 YEARS AGO. CLEANIN GUTTERS. ADDED POWER WASHIN BOUT 3 YEARS OR SO AGO. RECENTLY I LEARNED BOUT THE XJET N MY MACHINE, 4GPM, 3750 PSI IS GOOD ENUF. IT PAYS TO KEEP AN OPEN MIND TO NEW IDEAS!!! I AM DOIN OK BUT THERE ARE SO MANY "LOWBALLERS" I HAVE TO COMPETE WITH TO GET THE JOB. IT IS VERY TOUGH. I ONLY HAVE 1 REPEAT COMMERCIAL SERVICE. AND I NEED TO WORK ON THAT. CURRENTLY MY BIGGEST PUSH IS ON INTERNET ADVERTISING. AND THAT I DO HAVE A FAIR AMOUNT OF KNOWLEDGE. IVE JUST ABOUT LEARNED WHAT IM PAYIN OVER 1000 A MONTH FOR. SOON ILL SAVE THE "G" AND DO IT MYSELF!!!

[Brad Corns 14]

If you take the time and effort to learn all their is know about the business it can be very rewarding. It's not easy, you need to do your research, do quality work, and advertise and promote your company every chance you get. Unlike some businesses, you need to get your name out there, they wont just come.

[jnoden 15]

When I started I was looking for a business that wouldnt cost much to get started and I think that is what attracts many people. During my first two years I had cheap equipment that broke down a lot, went to the hospital for getting stripper in my eyes, shot two nozzles off my gun and in to siding and patio glass doors, covered two nice cars with overspray and paid $700 for detail work and things like that. I always took care of the customer though and have lost money on several jobs. Even the people whom I broke the glass doors and siding are still customers four years later because I had it fixed right away and did a good job on their power washing projects. Most people will not post on here mistakes that they have made with customers but It has happened to all of us. I remember almost crying because I took a latex strip job for next to nothing and ended up working on it for a week and a half and made like $5/hr on it. I went through three pressure washers in my first two years. I bought my first 3/4 ton work truck for $8k and it threw a rod a year after I bought it with only 85k miles on it. It went to the junk yard. I have been through 6 employees in two seasons with the best employee only lasting 4 months. Then dealing with the whole Wood Tux Stain from last year. Moral of the story; Yes it is nothing like people are hoping it will be and chances are they are not going to last in this business. I am not even sure how I have lasted through everything. I guess I am a glutton for punishment. I do love overcoming barriers and there is a definite attraction for me to develop and continue to build the business and make customers happy. I found that to run this type of business you need to be a little bit of everything from hard laborer to salesman, mechanic, researcher, accountant, marketer and more.