Why does winter scare contractors away?

[RockyMountainMobileWash 14]

I don’t understand!

Why does winter scare contractors away? Now please keep in mind that I am in my start-up phase still and will be launching my business this winter.

My equipment that we our purchasing is: one 20 foot trailer with two 8 gpm @ 3000 psi hot water, two anti-freeze tanks, two chemical tanks, 4 wands, 4 hose reels, and altogether over 800 foot of hose all quick connect. Plus we are purchasing a 40 foot bucket truck.

Now with a rig like that, how could I not try to work thru the winter and build my business? This month I am going to Florida for classes in pressure washing for PWNA, when I come back I will be finalizing my advertising and will be booking clients for November.

My goal is to hire a full time sales staff to do commercial flat work contracts, plus hitting up Real Estate agents for a curb appeal package on their listings. Plus reduce fees for homeowners to do home and flat surfaces as well as wash their decking & fence.

Please tell me if I am wrong in trying to think I will be very successful this winter when, from the sounds of it I will be the only pressure washer in the Denver Metro Area working with my four man crew well everybody go into habitation till spring 2007.

The way I am looking at it; is that everyone will be in habitation till spring 2007. I will be building a solid business and be adding trucks and building my commercial business so that I will have two shifts running an almost 24 hour operation, so when spring comes around I should be ready for the huge home show to show case our wood restoration!

So bring on winter, I am ready!

[PressurePros 248]

Hello RMMW, welcome to the board. I love your enthusiasm. When one starts a business is it is vital to have aspirations. Many enter a business with the idea that the business will guide itself and grow when it wants to grow. That lack of planning usually results in poor growth. At the same time, realistic business models have to be designed and analyzed for a company to perform up to par.

A possible flaw in your plan is the assumption of "if you build it, they will come". You may be willing to work in the winter. That doesn't mean people will hire you. You are fighting a mentality. People spend less money in the winter. They pull in their carpet, close the shutters and other than the retail Christmas trade rarely open their wallets. They especially don't open them for exterior cleaning.

In building a forecast model and executing budget plans one has to also balance ROI (return of investment) on equipment purchases. Ron ********** purchasing those rigs would get a logical ROI. A new guy with no clients purchasing that caliber or equipment is borderline ridiculous. I say this not to offend you or to dampen your spirits but to have you look at reality. I don't know if anyone has told you this yet but you will be VERY lucky to gross $30k your first year. With a a super aggressive marketing campaign (read that as $$$$), excellent sales presentation and closing ability and prior experience in this field you may be able to make it to $50K. Its just the nature of the beast. You can have the biggest, fanciest rig and perform the nicest work but until you have a reputation, people won't hire you. If you are planning on having multiple employees you won't see any net profit until 2010.

Your plans are not without merit. Take them apart and put into writing realistic time goals. Decide which facet of our industry you like the best and which you want to pursue. Budget about $50 K to put into this venture. That will cover modest equipment, marketing and advertising costs and subsidize the money you will make your first couple of years until by the third year you can start adding multiple crews and machines and begin actually seeing some profit.

I wish you the best in your venture. Above all, use the library, FAQ sections and the search function and spend hours and hours doing your research.

[Celeste 341]

Welcome RMMW - As Ken suggested, check out the search feature - there are thousands of posts that can prevent costly mistakes in starting up.

Also, please check the signature rules!

Celeste

[John Doherty 126]

Research your market, I admire your ambition, but keep doing what you're doing by posting here, gathering information.

I know your market pretty well, building/house washing really doesn't exist there, dry climate=no mold mildew growth. Flatwork virtually ends at the first snow because it's too costly to have you out after each storm so they wait until spring (also this is night work can't be done in freezing temps). Decks can be good money but you need to really sell the quality to get a decent price and you can almost forget about fences, nobody will pay what it's worth. Check the local water districts too, Denver and Aurora for instance restrict you to 2 gpm machines, they catch you with anything more and be prepared to open your checkbook for fines.

I'm not trying to discourage you just to prepare you, continue your research, and watch every penny, try not to get ahead of yourself on equipment that will be a capital killer.

Good Luck,

JD

[Ron Musgraves 240]

In building a forecast model and executing budget plans one has to also balance ROI (return of investment) on equipment purchases. Ron ********** purchasing those rigs would get a logical ROI. A new guy with no clients purchasing that caliber or equipment is borderline ridiculous. I say this not to offend you or to dampen your spirits but to have you look at reality. I don't know if anyone has told you this yet but you will be VERY lucky to gross $30k your first year. With a a super aggressive marketing campaign (read that as $$$$), excellent sales presentation and closing ability and prior experience in this field you may be able to make it to $50K. Its just the nature of the beast. You can have the biggest, fanciest rig and perform the nicest work but until you have a reputation, people won't hire you. If you are planning on having multiple employees you won't see any net profit until 2010.

I could agree if we where talking about residential work its limited to a season.

It would heavily depend on ones bank roll. If you start this business with 2 dollars then you’re probably in trouble.

If you have money to invest in a great marketing campaign then you’re going to increase your customer base a lot faster.

I have subs I have increase there revenue in three week as much as 8000.00 a month each and every month. Of course my relationship with my customers over the 20 years helps speed that process up.

I still think someone starting out can make more than 30k a year in there first year. The reality is what is the initial cost to run a company in the first year and are you will to sacrifice loosing money on the investment to reach higher expectations for the long haul.

[Ron Musgraves 240]

Sam, Keep pluging its a year round business.

[John T 744]

I'm thinking if you got the dough then go for it. I agree with alot the guys above are saying and especially when it comes to residential. If you have the funds then make sure you have a rock solid business plan and if you have enough start up capital like it sounds like you do since you want to buy the equipment you mention then spend your advertising Money wisely and Advertise like crazy if you can swing it. Winter is a tough time to start up and to be perfectly honest you can get all your equipment soon and then gear up to flood that Advertising in your area in March. For now I would track down all Property managers in your area and then some. Knock on all stores in your area and find out who there property managers are. You need to know this so you can start securing commercial accounts..

Commercial accounts are generally done all year long. I'm from NY and I have a couple of Commercial accounts that are done monthy. I'm the one who determins if they can be done every month. The Prop. Man. companies want me to get them done because If I can't then I don't get paid and they don't get paid...but of course if the weather is to bad for the whole month then its understandable....But..in over 6 yrs I don't think I ever missed a month yet..So we all got paid.

So if you have the Capital, The Business plan, The determination..Then I say go for it. You only come around once in this life time.

[Ron Musgraves 240]

I dont care where you live, its all year round....

[RockyMountainMobileWash 14]

Hi everybody,

I appreciate all your feedback on starting my company in the middle of winter. Collectively me and my family have over $80,000 to start a business, for the last 12 years all I have ever wanted to do was start a pressure washing company in the Denver metro area.

We used to have a successful mortgage company in the Denver metro area; nowadays it’s really hard to be successful in the mortgage industry, so I suggested that we start Rocky Mountain Mobile Wash. I just didn’t want to be stupid and start this business at the wrong time of the year.

Years ago when I was a kid, my mother owned a concession trailer in the Fort Lauderdale, Florida area. Every weekend we used to go down to the beach and sell slush to the beachgoers, this business was very successful we were making over $10,000 a month working part-time. But when the government told us we cannot sell our drinks anymore we had nowhere else to go, so we sold the trailer.

Recently in March 2006, we went on vacation to Mexico we found this little undeveloped town in Mexico. In their off-season get three cruise ships a week, in their high season they are getting over 14 cruise ships a week. Originally we were going to take our money and start a business down in Mexico but we felt that it was the wrong time of the season to start this business.

November starts their high season, so we are going to take our money and purchase a concession trailer and start this business in Mexico selling slush, hamburgers, hot dogs, fresh cut French fries. Then in March 2007 I will be coming back from Mexico and start my business in the pressure washing industry.

I really appreciate this form and I appreciate your feedback I was very nervous in starting this business in the middle of winter, my family was also very nervous. Money is really hard to come by and we did not put our money in an investment that would not return the amount of money that we are wanting back. See Ya!, in March.

Thanks Sam Carducci.