How to Grow A Pressure Washing Business Like Jeff Bezos
Growing a service based business like Jeff Bezos
What we care about in the long term is free cash flow inside our business
The is the principle in with Jeff bezos has built Amazon and can be adopted inside our service based business
You are the share holder inside your business giving you 100% ownership of your shares.
We have two ways to create a business, that is with earnings in mind or future cash flows
Long term thinking will favour long term cash flow over short term profits.
Let’s have a look at some of the costs inside a pressure washing business below:
Fixed costs to this business
- vehicle costs
- Equipment costs
- Other costs (materials, consumables)
- Software costs
- Administration costs
- Staffing and labour cost
- Marketing
Over time many of these costs are fixed
Let’s consider there’s an opportunity to buy a piece of equipment that will allow you and your team to earn a revenue of £1000 per day on average.
And the cost of this equipment costs £10,000
How much can a pressure washing business earn
£100,000 revenue per year is achievable for a pressure washing business in its first year, but the sky really is the limit.
Let’s consider the average job sells for £1000
The cost of providing this service is relatively low. If you add together the cost of operations (£10,000) to the marketing spend (£5000) and the operators salary (£35,000). Each day your running expenses are = £50,000 pear year / 365 = £136 per day. This is the cost to keep the wheel turning on your business.
Completing 100 jobs in your first year at your £1000 average ticket price is very achievable allowing you to this that magic £100,000 per year number.
See the numbers broken down below to give you an idea to refine your own business plan.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Total sales | £100,000 | £200,000 | £300,000 |
| Average jobs completed | 100 | 200 | 300 |
| Gross profit | £25,000 | £35,000 | £85,000 |
| Gross margin | 25% | 17.50% | 28.33% |
| Depreciation | £5000 | £10,000 | £15,000 |
| Operators salary | £35,000 | £70,000 | £105,000 |
| Director salary/managers | £20,000 | £30,000 | £35,000 |
| Admin salary | £25,000 | £25,000 | |
| Cost of operations (van lease, fuel, chems, maintenance, software) | £10,000 | £25,000 | £40,000 |
| Marketing | £5000 | £5000 | £5000 |
| Earnings | £25,000 | £35,000 | £85,000 |
| Margin | 25% | 17.50% | 28.33% |
This provides a brilliant earnings in your pressure washing business.
And this income statement does show a clear path of steady earnings
Year one allowing the income of an operator of £35,000 and a directors / managers salary of £20,000… this will likely be YOU!
At the start of your business it’s common to be both the operator and manager of your business.
Year two will be the introduction of a second cleaning technician and an admin assistant.
Again, you will become the second cleaning tech.
Year 3 provides you the opportunity to employ the third cleaning tech and either become the manager or find an operations managers for your business
You now have a path to become an investor and owner of your own service based business.
If your familiar with Robert Kiyosaki of the book rich dad poor dad, becoming an investor and business owner is the highest level in the business and money game of life.
Download our custom pricing calculator and revenue tracker to help you hit your goals.
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Keeping your goals front of mind is half the battle with endless distraction so this pricing calculator allows you to generator quote for pressure washing easy and quickly
And with the revenue tracker built in, you simply set your goal which could be £100,000 and the revenue tracker will break down your weekly and month goals.
Then all you would need to do is enter your revenue collected each week or month, whichever you prefer and you get a cool tracker which shows you how far you're moving towards your revenue goals.
but lets move onto the income statement for the fat cash flows that you only seem to be able to get as a business owner!
Pressure Washing Business Income statement is one dimensional! Let’s check out the CASH flows!
Each year we need to add equipment to our business
Let’s consider we want to add the purpose built pressure washing and softwash equipment…
Our Van Mounted Pressure Washer
At just £10,000 this unit would need to be added to a vehicle each year
Inside the £15,000 materials cost, there is the cost of a van lease included at £4000 per year
Considering the other equipment that may need to be purchased to go along with your equipment such as lances, surface cleaners an other small consumables
We will make the capital expenditures for equipment purchases at £13,000
Let’s look at cash flows (the long term game)...
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Earnings | £25,000 | £35,000 | £85,000 |
| Depreciation | £5000 | £10,000 | £15,000 |
| Working capital | ~ | ~ | ~ |
| Operational cash flow | £50,000 | £100,000 | £150,000 |
| Capital expenditures | £13,000 | £13,000 | £13,000 |
| Free cash flow | £37,000 | £87,000 | £137,000 |
Based on the typical roof cleaning prices in the UK, a typical 4 bedroom home to be cleaned is worth £1900-£2400
Now you can see the two sides of this business, the earnings and the cash flow which takes into account the capital expenditures (buying equipment) for you to grow
Growing the business at 1 machine per year
You now have a projection for earnings and a plan to follow should you decide to grow your pressure washing business
Why use a Van Mounted "Super Wash Big Brain" system to grow your pressure washing business?
As one of the largest capital expenditures in your business
We have gone through the learning of figuring out all the issues that go along with opening a pressure washing van
Working efficiently is essential to running a profitable business
Using fundamental principles in efficiency to eliminate wasted energy when your out pressure washing in your van
We have created the ultimate UK pressure washing and softwash van mounted system
At an affordable £10,000 per unit, you’ll have all you need to grow and scale your business
Allowing you and your employees a workable system to follow in investing into what could be your next machines
I hope you’ve found this article useful and I hope we can help you level up your UK pressure washing and softwashing game!
Do you want to dominate your local market?
If you’re on the fence about investing in yourself and your equipment, reach out to our team for help and advise on your next equipment purchase on 0121 817 7934
Dan @
Herosoftwash
