Start a pressure washing business by following these 10 steps:
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your pressure washing business. These steps will ensure that your new business is well planned out, registered properly and legally compliant. Show
Exploring your options? Check out other small business ideas. STEP 1: Plan your businessA clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
Luckily we have done a lot of this research for you. What are the costs involved in opening a pressure washing business?The main startup up cost is leasing the pressure washing equipment and the transportation to take the equipment to work at the client’s premises. Transportation is usually a van with advertising of the company painted on the van to attract more customers when the van is in operation with the power washer. Having a physical facility, such as renting an office space or work space is not necessary unless you want to offer services of power washing to vehicles that are passing by on a main thoroughfare. The basic expenses for starting this business include:
You will need to have good credit to get the leases for the equipment and the van, a few thousand dollars to get started for the down payment, plus enough to pay the lease payments for the first six months while you find customers. You can easily start this business with less than $10,000 in cash and finance the rest using credit. Your goals will be to generate $2,000 or more per month in paid jobs in order to create a sustainable business effort. What are the ongoing expenses for a pressure washing business?The ongoing expenses for this business include the labor cost for the workers, lease payments for the equipment and the van(s), insurance, and the amount allocated to the monthly marketing efforts. Who is the target market?Depending on the target market, the customers might be homeowners, vehicle owners, government agencies (which need pressure washing services for roads and other government buildings/structures), and/or commercial property owners. Most pressure washing businesses do better by offering their services to all types of customers and have workers that are experts in doing certain kinds of pressure washing. Besides seeking customers from the general public, it is advisable to get long-term contracts from commercial operations. Examples of these contracts would include maintaining the exteriors of multiple commercial properties owned by the same person or organization or cleaning a fleet of vehicles on a regular basis. How does a pressure washing business make money?Some of the most successful businesses in this sector have many repeat clients. For simple jobs like pressure washing a car, pressure washing businesses charge a flat rate of around $50 to $100, which includes “detailing.” Detailing is the finish work after the pressure cleaning is done. It includes waxing the vehicle and making the vehicle look like it is brand new. Another mainstay in this business is the cleaning of the exterior surfaces of real estate. Power washing homes and commercial properties is very lucrative. You can charge by the square footage of the exterior surfaces that are cleaned. How much can you charge customers?Home advisor gives some examples of the range of prices for pressure washing a home. A typical homeowner will spend between $184 to $380 for a pressure washing of the home and its exterior surfaces. Here are a few of the common prices:
Commercial properties pay $0.25 to $1.50 per square foot of exterior surface area. Higher rates are charged for buildings that are multiple stories and include the rental cost of the scaffolding or window washing equipment needed to reach the higher levels. Cleaning a vehicle is around $50 to $100. Washing semi-trucks and boats would be about twice that amount. How much profit can a pressure washing business make?If you keep the equipment usage level high, you can expect to make at least 100% of the amount you pay for the equipment lease per month. For example, if the monthly lease payments for a van and equipment plus insurance are around $1,200 then you should earn at least $2,400 per month as your minimum goal. If your main customers are homeowners, you will be doing about 3 to 4 jobs per week to meet this minimum. How can you make your business more profitable?As an expansion of the pressure washing business, you can also offer pressure cleaning of drains, pipes, and sewage lines. The equipment is similar and the water pressure is very effective in clearing blocked pipes, blasting tree roots out of the way, and keeping sewer lines flowing. What will you name your business?Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Pressure Washing Business Name Generator If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more. When registering a business name, we recommend researching your business name by checking:
It's very important to secure your domain name before someone else does. STEP 2: Form a legal entityThe most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your pressure washing business is sued. Read our Guide to Form Your Own LLC Have a Professional Service Form your LLC for You Two such reliable services: You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee. Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own. STEP 3: Register for taxesYou will need to register for a variety of state and federal taxes before you can open for business. In order to register for taxes you will need to apply for an EIN. It's really easy and free!  You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?. Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide. Small Business TaxesDepending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp). You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides. STEP 4: Open a business bank account & credit cardUsing dedicated business banking and credit accounts is essential for personal asset protection. When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil. Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more. Open a business bank accountBesides being a requirement when applying for business loans, opening a business bank account:
Open net 30 accountsNet 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term. NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit. Get a business credit cardGetting a business credit card helps you:
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly. STEP 5: Set up business accountingRecording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing. Make LLC accounting easy with our LLC Expenses Cheat Sheet. STEP 6: Obtain necessary permits and licensesFailure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down. State & Local Business Licensing RequirementsIn most states, it is necessary to obtain a wastewater discharge permit. More information about these permits can be found on your local state website. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits. In addition, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses. For information about local licenses and permits:
Services Contract (e.g. MSA)In business where services are provided on an extended basis, a services contract is often put in place outlining terms and conditions of service. You may wish to require clients to sign a services agreement before starting a new project. This agreement clarifies client expectations and minimizes risk of legal disputes by setting out payment terms and conditions, and service level expectations. Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your pressure washing business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice. Labor Safety RequirementsIt is important to comply with all Occupational Safety and Health Administration requirements. Relevant regulations include:
Certificate of OccupancyWhen pressure washing businesses operate from a physical location (like when offering a drive-thru pressure washing service for cars) a Certificate of Occupancy (CO) will be necessary. A CO confirms that all building codes, zoning laws and government regulations have been met. If you plan to lease a location:
If you plan to purchase or build a location:
STEP 7: Get business insuranceJust as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss. There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business. Learn more about General Liability Insurance. Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage. STEP 8: Define your brandYour brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors. If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business. If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website. How to promote & market a pressure washing businessThe best promotion comes from word-of-mouth that happens naturally when you please customers with the work you do. A campaign of using hand-out flyers is also a good idea. Giving discounts for repeat customers helps build a stable business. Offering a commission to related businesses such as an auto repair shop or a landscaping company for bringing you customers is another great way to increase business. Contracts in this business often come from local government agencies looking to fix up part of the area. Establishing long-lasting relationships with government officials can help ensure your business is responsible for the restoration of your area. As this is a service that is not crucial for everyone, it is important to consider your market. Residential customers with high disposable income tend to be the most valuable customers. Power washing is often needed at construction sites upon finishing. Another good source of customers is homeowners who are putting their homes on the market. People usually want a house they are selling to look its best and that includes the cleanliness of its exterior. How to keep customers coming backOne of the most effective ways to advertise your business is to have a very attractive logo and big lettering of your phone number painted on your van(s). When the van is not busy doing a job, park it in a place where it is highly visible to lots of traffic that passes by, who can see the van. Customers are naturally drawn to high quality service and low prices. This is another place where word-of-mouth is extremely valuable. Satisfied customers will stay and recommend your services to others. Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you. STEP 9: Create your business websiteAfter defining your brand and creating your logo the next step is to create a website for your business. While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler. Here are the main reasons why you shouldn’t delay building your website:
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete. Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify. STEP 10: Set up your business phone systemGetting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you. There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business. Recommended Business Phone Service: Phone.com Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing. Start a Pressure Washing Business in your State
What is needed to start a Powerwashing business?The Investment Needed to Start a Pressure Washing Business
To get started, you'll need a pressure washer, pumps, nozzles, engines, chemicals, surface cleaners, and so on. This will cost at least $2,000, going up to $25,000, depending on whether you buy new or used ones, or rent them.
How much is a business license in Arizona?The price of a business license or permit can vary depending on the type of license, business location, processing fees and recurring fees. Phoenix charges an application fee from $24 up to $1,665 and a license/permit fee between $10 and $360, depending on the type of business.
Is a business license required in Arizona?Business License - Arizona does not issue nor require a state business license, however, most city/town offices issue business licenses.
What category would pressure washing fall under?Before performing any power-washing jobs, companies in California must obtain a pressure-washing license through the state Contractors State License Board. The proper designation is Sand and Water Blasting Limited Specialty Contractor, Class Code C-61/D-38.
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What licenses are needed to start a pressure washing business
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