Business Plan
For
Mobile Power Wash Contract Cleaners

By

Robert M. Hinderliter, President
&
Larry Hinckley, Senior Technical Advisor

Delco Cleaning Systems of Fort Worth
2513 Warfield Street
Fort Worth, Texas 76106-7554
Phone: 800-433-2113, Fax: 817-625-2059
Email: delco@dcs1.com, Website: http://www.dcs1.com

Last update: June 25, 2008


Preface

This business plan is for a start up Mobile Power Wash Contact Cleaning Business. Several assumptions have been made trying to describe a typical person just entering the pressure wash business. The problem is that there is not a typical person entering the business. People from all walks of life enter the pressure washing business. Some by choice, some because they lost their corporate jobs, and still others because they did not fit into Corporate America. Others just want to be their own boss. This means that the following is based on a composite of information that I have gained over the last 30 years. Some over simplification has been done to create the Business Plan. You should not use it as a literal application to yourself or to anyone in particular. It should be used a guide only to create your own business plan.

One problem I encountered was the cost of advertising. Yellow Pages and Newspaper Advertising costs vary a great deal when going from a Metroplex Newspaper to small town newspaper and the same holds true for Yellow Pages. Another problem was that not all contractors itemized their costs in identical categories or the same way.

Another problem is the fact that only about 25% of the Contract Cleaners advertise their businesses. What happens is the Contract Cleaners will do a lot of cold calling and advertising in getting their businesses started in the first year of operation. After that word of mouth and referrals keep them busy. I have had many contractors brag that they have not made any sales calls in 3 to 10 years. Repeat business and referrals keep them busy. Larry Hinckley just had one of these Contractors tell him that he just turned down $95,000.00 per year of business because he just did not have time to do it. His marketing budget is just the cost of his business cards!

Another variable is weather. We showed some decrease in business during the winter months. For many contractors this is a tuff period to get through. While for others it is their best months. A lot depends on the imagination of the individual contractors in searching out and finding winter jobs. Some specializations like Kitchen Exhaust Cleaning are almost insensitive to weather.

The single most important factor in success is sales ability. Sales ability is more important than technical ability. Without "people skills" and the ability to sell yourself "technical ability" is worth very little. I have seen many excellent auto mechanics go into auto repair business for themselves and fail because of poor people skills. You will have to be realistic with yourself in evaluating your own skills and goals.

The most important factor in the growth of your company is your management skills particularly in choosing and motivating people. Again your management skills are more important than your technical skills. You will need to be realistic in evaluation your skills in this area also. For example when PWNA was formed in April of 1993 there was a contract cleaner who attended with his wife. They had 6 employees. By the end of 1998 they had almost 70 employees doing pressure washing. What are your management skills?

We tried to show the Gross Sales and Gross Profit in a reasonable light and not some pie-in-the-sky figure. We believe these figures are middle ground and reasonable. However, you will still need to interpret these figures as to how they may apply to you. There is no way that these figures will apply directly to any particular individual.

The basic projection is based on a Contract Cleaner doing cosmetic cleaning with a Hot Water Mobile Power Wash Rig. However, if you are going to be doings decks with a cold water unit then there will not be any kerosene heat expense but your chemical expense will be higher. You will have to modify the projection based on how you are going to operate and market your business.

What may be more important to you than the financial projections are the following guidelines on costs as a percentage of gross sales. The ranges are based on confidential information from successful contract cleaners and my own experiences of having my own contract cleaning business for 10 years. These guidelines can be used to modify the Financial Projections in the following business plan to fit yourself.

Item........................................ % of Gross Sales (Range)

With the above percentages combined with our projections you can enter them into Microsoft Excel or any spreadsheet program and do your own financial analysis. In our projections we did not include "uniforms" because most contractors cleaners do not use them.

There is a lot of information available on the Internet at the U.S. Small Business Administration's website at http://www.sba.gov/. The information that we are providing is so that you can refer back to this document when filling out SBA Loan forms for projections and etc.

The most popular funding sources for Contract Cleaners are: Credit Cards, banks, personal savings, friends and relatives, credit unions, SBA guaranteed loans, and leasing companies.

At the present time credit cards are probably the most popular source of financing for contract cleaners. When applying for new credit cards you can take advantage of low introductory interest rates. By transferring balances to the new credit card you can typically obtain interest rates between 3 and 10 percent. At the end of the introductory interest rate period it is necessary to start the process all over again with another credit card company in order to keep a very low introductory interest rate.


Business Plan For

George's Mobile Power Wash

George M. Smith, Owner
2513 Warfield Street
Fort Worth, Texas 76106-7554

817-625-4213


Career Objectives

Establish, own, and operate a
Mobile Power Wash Business in Central Texas


Description of business

The proposed name for this new business is "George's Mobile Power Wash". The proposed start date for the business is March 1999.

Delco Mobile Power Wash will be a sole proprietorship with George M. Smith as owner. A Corporation Structure may be evaluated as the business grows.

Description of services offered

The mobile power wash business is business and industry's answer to the major problem of how to keep things clean. Everyone has become concerned over pollution, knowing that dirt can be destructive not only to their image, but can cause costly repairs, renovations, or replacement. Since most items are immovable, practically speaking, they must be cleaned at their location. Mobile power washing has proved to be the solution to the problem.

The basic concept of high pressure washing with detergent has been tested and proven. By mounting the equipment on a truck or trailer mobility has been added. Units typically have the following capabilities: 4 to 6 GPM (gallon per minute flow rate), 1,500 to 3,500 PSI (pounds per square inch pressure), and up to 200 °F. The equipment is similar to a typical coin-op car wash only portable and more powerful. Units typically have gasoline engines and are heated with diesel fuel fired burners for heat. With the addition of a water tank the units are completely portable and independent.

With the correct combination of pressure, flow, chemicals, and temperature a wide variety of cleaning jobs can be accomplished typically without scrubbing or brushing. Additionally, the cleaning can be done without harming painted surfaces, as is the case with steam cleaning and without creating air pollution residue as is the case with sandblasting.

Wash water is captured so that there is "no off property discharge" and discharged to Sanitary Sewer to conform to the Clean Water Act and protect the environment. Each municipality is responsible for developing the exact Best Management Practices (BMPs) for pressure wash contractors for their area.

Typical jobs that are accomplished with pressure washers with the appropriate chemicals and coatings is the cleaning of: trucks and cars, building exteriors, kitchen exhaust systems (vent-a-hoods), house exteriors, airplane exteriors, shopping center parking lots and side walks, parking garages, parking lots, sports stadiums, side walks, construction equipment, manufacturing areas with heavy machinery interior and exterior, farming equipment and buildings, and wood restoration of log homes, decks, and fences. The list is only limited by ones imagination, as there are hundreds of uses.

Location of the Business

The business will be operated from my home with the equipment stored in my double car garage at 2513 Warfield Street, Fort Worth, Texas 76106-7554. An answering machine will be installed to take phone calls when I am not available and I will carry a cell phone

The projection shows rental cost as I am considering operating out of a small self storage center.

The work will take place at the customer's site. No pressure washing will be done at my residence.

Marketing the Business

We will start out by making cold calls in person and by telephone. We will ask for the opportunity to send or leave a brochure and business card. Hopefully these items will get filed for later reference when needed. When cold calling we will collect names, addresses, phone numbers, fax numbers, and email addresses for future contact. This information will be put into a database for continued sales effort. When calling we will determine if they have an immediate need, future need, are they satisfied with there current contractor, or do they know someone else who could use our services. We will make a checklist of questions of the above items as reminders when calling. For prospects that have a need for our services 3 callbacks will be scheduled.

Initially we will concentrate on Fleet Washing and Home Deck Cleaning for homes. Fleet Washing is primarily a weekend activity and Home Deck Cleaning can be done during the week. This will provide a large economic base from which to launch the company. We will also accept all work we can find.

Regular listings in the yellow pages will be put under the following headings: Truck Washing & Cleaning, Steam Cleaning Industrial, House Washing, Roof Cleaning, Building Cleaning-Exterior, Deck and Patio Builders, Wood Preserving, and Cleaning Roof, Patio, Sidewalks.

In newspapers an advertisement will be placed under the "Home Repair" section for "Decks".

There are two major trade associations which serve the Mobile Power Wash Industry. They are "Power Washers of North America" at http://www.pwna.org and International Kitchen Exhaust Cleaning Association at http://www.ikeca.org. These national trade associations provide a lot of business resources for the Power Wash Contract Cleaner on a variety of topics including marketing, technical information, trade shows, and networking. Initially I will join PWNA as it services all segments of the Power Wash Industry.

There is also a lot of marketing and technical information on the internet which is free at Delco Cleaning Systems of Fort Worth Website at http://www.dcs1.com.

Competition

There are 15 companies listed in the yellow pages. Upon doing a survey I found that most of them specialized various markets with 80% of their business being specialized and 20% of their business being all sorts of miscellaneous pressure washing work. The larger the contractor the more specialized was their work.

Calling PWNA I found out that in large metropolitan areas Contract Cleaners generally serve specialized markets and in smaller rural areas the Contract Cleaners generally serve all markets within a 1 to 2 hour drive.

As an owner/operator I will have the advantage of being on all jobs to ensure good customer relations and the quality of my work.

Personnel Required

Initially I will have no employees and I will do all the work. As the business grows I will hire part time then full time employees.

My wife will keep my books on the computer using "Quick Books Pro" software.

The projection is based on us doing our own payroll. Once the business is started the payroll may be handled through a payroll service that will handle all the payroll taxes, workmen's compensation, and health insurance or we may have our CPA do the payroll.

The "Labor" figure in the projections is for my employees and as a sole proprietor my salary is in the "Gross Profit" figure.

Also my wife has offered to help on weekends as needed until I get the business established.

Licenses

In the state of Texas no licenses are required. Some Pressure Washing Services are taxable therefore a sales tax number will be required from the State of Texas.

Federal I.D. number will be obtained for taxes.

Please find attached:

Supporting documents -. Personal

1. Personal Financial Statement

2. Resume

Supporting documents - Business

1. Capital Equipment and Supplies List. The equipment will be purchased from Delco Cleaning Systems of Fort Worth, their bid is attached.

2. Financial Projections for "Delco Mobile Power Wash"


FINANCIAL STATEMENT

Assets

. Cash On Hand and in Banks $6,000.00
. Savings Accounts $2,000.00
. IRA or other Retirement Accounts $2,000.00
. Accounts & Notes Receivable $0.00
. Life Insurance-Cash Surrender Value $2,500.00
. Stocks and Bonds $4,000.00
. Real Estate $70,000.00
. Automobile-Present Value $15,000.00
. Other Personal Property $4,000.00
. Other Assets $2,000.00
. . . Total $107,500.00

Liabilities

. Accounts Payable (Credit Cards, etc) $3,000.00
. Notes Payable to Banks and Others $2,000.00
. Installment Account (Auto) $9,000.00
. Monthly Payments $300.00
. Installment Accounts (Other) $7,000.00
. Monthly Payments $300.00
. Loan on Life Insurance $1,500.00
. Mortgages on Real Estate $45,000.00
. Unpaid Taxes $0.00
. Other Liabilities $0.00
. Total Liabilities $67,500.00
Net Worth (Assets less Liabilities) . . . $40,000.00

Source of Income:

. Salary $45,000.00
. Net Investment Income $500.00
. Real Estate Income $0.00
. Other Income $0.00
.

Contingent Liabilities:

. As Endorser of Co-Maker $1,000.00
. Legal Claims & Judgments $0.00
. Provision for Federal Income Tax $0.00
. Other Special Debt $500.00

Resume

George M. Smith
2513 Warfield Street
Fort Worth, Texas 76106-7554
Phone: 817-625-4213

Career Objectives

Establish, own and operate a Mobile Power Wash Business in Central Texas.

Experience

May 1996 - Present City Automotive, Fort Worth, TX
Automotive Mechanic on automotive repair and service
.
June 1993 - May, 1996 Fast Lube Oil Change, Arlington, TX
Quick Change Oil Technician. Responsible for the servicing of automobiles.
.
January 1990 - June, 1993 City Wide Lawn Service, Burleson, TX
Landscape Technician. Responsible for lawn maintenance, including mowing, and the planting of scrubs, trees, and grass.

Education

Mansfield High School Graduated May, 1989
Tarrant County Junior College Completed one semester, 15 hours

Skills

Automotive Mechanic on General Motors Vehicles.
Computer Skills: Microsoft Office Suite, Internet and Quick Books Accounting Software.

References

John Doe, III
746 Walnut Street
Fort Worth, TX 76106
Phone: 817-625-4689

Roger Wash
1425 Water Street
Burleson, TX 76028
Phone: 817-296-5142

Roger Dodger
843 Cedar Lane
Cedarville, TX 76023
Phone: 817-334-2501


Capital Equipment List

Prices as of June 25, 2008

Delco RK-41-1AE Single Axle Trailer Wash Rig $7,645.00
VSF-55 Vacuum Sludge Filtering System $2,260.00
20 Foot Vacu-boom $1,132.00
Two DC-4.6 Drain Covers $320.00
Two PD-620 Portable Dams $160.00
Two PD-650 Portable Dams $310.00
WPSP-25 Wash Pit Sump Pump $149.00
Chapin Acid Sprayer $79.00
Chapin Deck Sprayer $39.00
.
Subtotal $12,097.00
Taxes $998.00
Total $13,095.00

Chemicals Supplies

100 lbs R-109 Truck Wash Detergent $185.00
DNB-1430 Heavy Duty Degreaser Mix-Kit $187.00
50 lbs V-501 Vent-A-Hood Degreaser $110.00
5 gallons OD-100 Oriental Detergent $71.00
8 lbs DSR-49 Deck & Siding Restorer $33.00
5 gallons DSR-50 Deck Restorer plus Stripper $68.00
.
Subtotal $654.00
Taxes $53.96
Total $707.96

Financial Projections for Delco Mobile Power Wash

Income and Expenses Projections for the 1st year of operations
Direct Cost
Of Sales
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Total
Year
% of
Gross
Sales
Labor
Part-time
000 000 000 325 325 325 400 400 400 325 325 400 3225 5.74
Chemicals
&
Supplies
60 88 140 200 200 200 240 240 240 200 200 240 2248 4.00
Kerosene
45 66 105 150 150 150 180 180 180 150 150 180 1686 3.00
Gasoline
120 150 160 225 225 225 270 270 270 225 225 270 2635 4.69
Total
Direct
Cost
225 304 405 900 900 900 1090 1090 1090 900 900 1090 9794 17.43
Indirect
Cost of
Sales
. . . . . . . . . . . . . .
Washer
Payment
275 275 275 275 275 275 275 275 275 275 275 275 3300 5.87
Truck
Expenses
100 100 100 150 150 150 200 200 200 200 200 200 1950 3.47
Maintenance
& Repair
100 100 100 100 100 100 100 100 100 100 100 100 1200 2.14
Rent
100 100 100 100 100 100 100 100 100 100 100 100 1200 2.14
Utilities
20 20 20 20 20 20 40 40 40 40 40 40 360 0.64
Office
Supplies
200 50 50 50 50 50 50 50 50 50 50 50 750 1.33
Advertising
300 120 120 120 120 120 120 120 120 120 120 120 1620 2.88
Telephone
75 75 75 75 75 75 75 75 75 75 75 75 900 1.6
Insurance
75 75 75 75 75 75 75 75 75 75 75 75 900 1.6
License
Permits
Taxes
500 . . 65 65 65 80 80 80 65 65 80 1145 2.04
Accounting
& Legal
100 65 65 65 65 65 65 65 65 65 65 65 815 1.45
Total
Indirect
Cost
1845 980 980 1095 1095 1095 1180 1180 1180 1165 1165 1180 14140 25.16
Total
Expenses
2070 1284 1385 1995 1995 1995 2270 2270 2270 2065 2065 2270 23934 42.59
Gross
Sales
1500 2200 3500 5000 5000 5000 6000 6000 6000 5000 5000 6000 56200 100
Gross
Profit
-570 916 2115 3005 3005 3005 3730 3730 3730 2935 2935 3730 32266 57.41
Operating
Hours
38 44 54 77 77 77 80 80 80 80 80 96 . .


Income and Expenses Projections for the 2nd year of operations
Direct Cost
Of Sales
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Total
Year
% of
Gross
Sales
Labor
1000 1200 1500 1500 2000 2000 2000 2000 1500 1200 1200 1500 18600 19.07
Chemicals
&
Supplies
310 310 340 340 360 360 390 390 310 240 240 310 3900 4.00
Kerosene
235 235 250 250 270 270 295 295 235 180 180 235 2930 3.01
Gasoline
350 350 378 378 400 400 440 440 350 270 270 350 4376 4.49
Total
Direct
Cost
1895 2095 2468 2468 3030 3030 3125 3125 2395 1890 1890 2395 29806 30.57
Indirect
Cost of
Sales
. . . . . . . . . . . . . .
Washer
Payment
275 275 275 275 275 275 275 275 275 275 275 275 3300 3.38
Truck
Expenses
250 250 250 250 250 250 250 250 250 250 250 250 3000 3.08
Maintenance
& Repair
100 100 100 100 150 150 150 150 100 100 100 100 1400 1.44
Rent
150 150 150 150 150 150 150 150 150 150 150 150 1800 1.85
Utilities
75 75 75 75 75 75 75 75 75 75 75 75 900 0.92
Office
Supplies
50 50 50 50 50 50 50 50 50 50 50 50 600 0.62
Advertising
125 125 125 125 125 125 125 125 125 125 125 125 1500 1.54
Telephone
80 80 80 80 80 80 80 80 80 80 80 80 960 0.98
Insurance
75 75 75 75 75 75 75 75 75 75 75 75 900 0.92
License
Permits
Taxes
200 240 300 300 400 400 400 400 300 240 240 300 3720 3.82
Accounting
& Legal
75 75 75 75 75 75 75 75 75 75 75 75 900 0.92
Total
Indirect
Cost
1455 1495 1555 1555 1705 1705 1705 1705 1555 1495 1495 1555 18980 19.47
Total
Expenses
3350 3590 4023 4023 4735 4735 4830 4830 3950 3385 3385 3950 48786 50.04
Gross
Sales
7800 7800 8400 8400 9000 9000 9750 9750 7800 6000 6000 7800 97500 100
Gross
Profit
4450 4210 4377 4377 4265 4265 4920 4920 3850 2615 2615 3850 48714 49.96
Operating
Hours
104 104 112 112 120 120 130 130 104 80 80 104 . .


Income and Expenses Projections for the 3rd year of operations
Direct Cost
Of Sales
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Total
Year
% of
Gross
Sales
Labor
Part-time
1500 2000 2000 2000 3200 3200 3200 3200 2000 2000 2000 2000 28300 24.97
Chemicals
&
Supplies
340 360 385 440 440 440 440 440 360 315 315 340 4615 4.07
Kerosene
300 315 340 380 380 380 380 380 315 275 275 300 4020 3.54
Gasoline
380 410 435 480 480 480 480 480 410 350 350 380 5115 4.51
Total
Direct
Cost
2520 3085 3160 3300 4500 4500 4500 4500 3085 2940 2940 3020 42050 37.09
Indirect
Cost of
Sales
. . . . . . . . . . . . . .
Washer
Payment
275 275 275 275 275 275 275 275 275 275 275 275 3300 2.91
Truck
Expenses
260 260 260 260 260 260 260 260 260 260 260 260 3120 2.75
Maintenance
& Repair
150 160 160 160 200 200 200 200 150 150 150 150 2030 1.79
Rent
150 150 150 150 150 150 150 150 150 150 150 150 1800 1.59
Utilities
85 85 85 85 85 85 85 85 85 85 85 85 1020 0.90
Office
Supplies
50 50 50 50 50 50 50 50 50 50 50 50 600 0.53
Advertising
140 140 140 140 140 140 140 140 140 140 140 140 1680 1.48
Telephone
85 85 85 85 85 85 85 85 85 85 85 85 1020 0.90
Insurance
75 75 75 75 75 75 75 75 75 75 75 75 900 0.79
License
Permits
Taxes
300 400 400 400 640 640 640 640 400 400 400 400 5660 4.99
Accounting
& Legal
70 70 70 70 70 70 70 70 70 70 70 70 840 0.74
Total
Indirect
Cost
1640 1750 1750 1750 2030 2030 2030 2030 1740 1740 1740 1740 21970 19.37
Total
Expenses
4160 4835 4910 5050 6530 6530 6530 6530 4825 4680 4680 4760 64020 56.46
Gross
Sales
8400 9000 9600 10800 10800 10800 10800 10800 9000 7800 7800 7800 113400 100
Gross
Profit
4240 4165 4690 5750 4270 4270 4270 4270 4175 3120 3120 3040 49380 43.54
Operating
Hours
112 120 128 144 144 144 144 144 120 104 104 112 . .

 
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Webmaster: Robert M. Hinderliter of Delco Cleaning Systems of Fort Worth, 2513 Warfield Street, Fort Worth, Texas 76106-7554. Phone: 800-433-2113, Fax: 817-625-2059
email: delco@dcs1.com ; URL: http://www.dcs1.com/del
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