Things To Consider Before Starting a Pressure Washing Business

You`ve probably seen them on TV or in the newspaper,offering to clean your roof or driveway with a pressure washer. You may have even heard that this business means easy money. If you live in an area where there is a lot of rain or need to keep your property tidy,this could be just what you`re looking for. But before taking the plunge into starting up a business,it`s important to know all about the requirements and regulations that come with operating such an enterprise.

1. First,You Should Learn How To Pressure Wash Like a Pro

Find ways to practice on things that don`t matter if you damage them,like your gutter or a fence. Find a YouTube video on the things you`re rusty on and watch it over and over again. Drive around town and see if you can find anyone who looks like they need some pressure washing done,then ask them if they`ll let you do their siding in exchange for giving you experience.

2. Can The Pressure Washing Business Make Profit? Here’s How To Know: (Money In) – (Money Out) = (Profit)

It is important to be able to track the expenses and profits of your business. There are many ways to keep track of this information such as a simple spreadsheet or using an app on your phone. It is important to know how much you have spent on a job in order to determine if you are going to make a profit,so always include your costs when calculating.

The 4 main upfront expenditure categories are:

Pressure washing gear includes pressure washer,surface cleaner, nozzles, chemicals and trailer or equivalent.

One big expense when starting a pressure washing company is insurance,contractor license and permits.

Cost for marketing to get your first customers like Ads,pamphlets,flyers etc.

Cost of your transportation to get to customers homes (truck,van etc.)

Of course there’s also ongoing maintenance,fuel and marketing costs. follows:

Cost of Equipment – So you will need to purchase some equipment. What kind and how much depends on what type of work you want to do. Remember,if there is not a business already doing the kind of pressure washing you like,then you may be able to use your existing skills and equipment (if any) to accomplish it.

Plan to spend at LEAST $1,500 on the pressure washing gear.

Cost of Liability Insurance— This is pretty self-explanatory,however sometimes people decide against buying insurance because they think their risks are too low or they might not make enough money to justify paying for insurance for years. Hopefully after reading about the common risks below this will change your mind.

Professional business insurance covers many things including property damage due to various accidents,injuries,lawsuits and other catastrophes. One example would be if a customer slips on the wet driveway after you`ve completed pressure washing it. Another common insurance policy used by pressure washers is liability coverage for bodily injury or property damage caused by their work or products. This means that if someone else gets injured while using your equipment that you will have help covering the costs of compensating them for damages. Another important aspect of business insurances is worker’s compensation,which provides medical care benefits and lost wages to an employee who becomes sick or disabled because of a job-related accident or illness; unemployment/job displacements benefits; and death benefits for dependents of employees who die from job-related injuries.

Another important part of liability insurance is general liability which covers financial responsibility for bodily injury and property damage that occurs on the insured`s premises or while doing work there,as well as products manufactured or sold by the insured (and related bodily injury) off-premises; personal and advertising injury claims against the insured; legal defense costs; and uninsured/underinsured motorist bodily injury.

Cost of marketing your pressure washing business – If you`re trying to get your business out there without a massive budget this may be a tough task. Getting marketing for small businesses usually involves some kind of advertising,whether that be in the local paper to attract attention from passing potential customers or a sign on your truck for people to see. This can cost a pretty penny but if you can afford it you`ll most likely see the long-term benefit.

One thing to keep in mind is that you should be focusing your marketing efforts on a specific type of person. For example,are you trying to get more business from the homeowner or do you prefer to target companies? Picking your target audience can greatly help you narrow down your advertising efforts and keep your budget low.

Cost of Vehicles and trailers for your pressure washing business –

If you`re thinking about picking up a new business truck for your pressure washing company,you might need to save that money and spend it on a trailer instead. Trailers are much more cost effective to buy and insure than a commercial vehicle,so this might be the way to go if you`re looking for a cheaper route.

3. Keep it Legal. The Ins and Outs of Pressure Washing Business Permits,Licenses and Insurance

To help you stay on the right side of the law,check out this list of what is needed in order to operate your pressure washing business legally .

Insurance Requirements –

Since you`ll be dealing with potentially hazardous chemicals and water-fed equipment,there are quite a few things you`ll need to pay attention to when it comes to insurance.

In order for your business to be covered in case of an accident where someone was hurt,you must have workers` compensation coverage. If someone who works for you dies on the job or becomes ill,you will also need this type of insurance.

You`ll also need general liability coverage to be able to handle any potential claims that come up from customers or clients who were injured on your property. For example,if someone slips and falls in your parking lot while you are pressure washing the building,they can file a lawsuit against your business for damages.

Licensing Requirements –

Before operating any type of pressure washing or similar business in your state you will need to know if there are any licensing requirements. For example,if you`re going to be doing work for customers and spraying chemicals on their property,you will likely need a license in order to do so. In some areas,you may need a contractor`s license.

Getting Paid For Your Pressure Washing Business –

The goal of running a business is to make money,so you`ll need to find ways to make sure you`re getting paid for your work. This may include getting invoices,working with a contractor`s license and signing contracts with customers as well as taking payments and credit cards. To help you get paid for your work as quickly as possible,it`s best to accept credit cards at a minimum.

In order to take credit cards you`ll need to get a merchant account. You can get one through your bank but take note that there are extra fees and these credit card machines can get costly.

As a business owner,you may need to file taxes for multiple states where your customers are located. You`ll likely need to get your business set up in the state where you`ll be working but keep in mind that this won`t mean you don`t need to pay taxes for other states. You`ll need to contact your state`s tax authority for details on this matter.

Sales Tax Registration –

If you`re planning on doing residential or commercial pressure washing,make sure you know how to properly register for sales tax. In most states,you need to register for sales tax if you make more than a certain amount of money each year. For example,some states require you to start paying sales tax if you rake in more than 100,000 dollars a year. You`ll typically be required to file a form for each state where you`re doing business.

Most states require you to collect sales tax from your customers and submit it on a regular basis,so it is best to keep up with all of this information.

Environmental Permits –

If you`ll be doing work in a state or city that requires environmental permits,arrange to get one. These applications can take some time. One such example is if the water you produce drains into a storm drain. Your business may need an environmental permit for this as well as a pesticide and/or storm water discharge license.

– Contributed by