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If you’re considering starting a pressure-washing business, you’re in luck! This comprehensive guide provides a step-by-step breakdown of everything you need to know to launch and run a successful pressure-washing business. From initial setup to acquiring customers and investing in the right equipment, it’s all here. Let’s dive in!
Step 1: Choose a Business Name
Selecting a business name is crucial. Consider choosing a name that includes a keyword related to your service and location, as it can help with your Google profile and search engine optimization. For example, “Cincinnati Pressure Washing” would be a suitable name.
Step 2: Obtain an EIN Number from the IRS
Visit the IRS website (irs.gov) and apply for an Employer Identification Number (EIN). This number is essential for tax purposes and is required to legitimize your business. The cost is approximately $20 as of 2022.
Step 3: Register with the Secretary of State for the LLC
Visit your state’s Secretary of State website and register your business as an LLC (Limited Liability Company). Consult with a CPA or an attorney to determine the best legal structure for your business. An LLC provides personal liability protection and is often recommended.
Some people might not want to go through all these things and just try using PayPal, Venmo, or Cash App instead. I wouldn’t recommend it because you may end up paying more taxes if you don’t have a legitimate business.
Step 4: Acquire a Business License
Check with your local city’s requirements to obtain a business license. Some cities may have specific licenses or permits necessary for operating a pressure-washing business. Ensure compliance to avoid legal complications.
Step 5: Set Up a Business Bank Account
Separate your personal and business finances by opening a dedicated business bank account. This separation will simplify accounting and help you track your business expenses and income more efficiently. The book “Profit First” by Mike Michalowicz offers valuable insights into managing multiple bank accounts effectively. I suggest you read it.
Step 6: Obtain General Liability Insurance
General liability insurance is essential to protect your business in case of accidents or damages. It covers any potential harm caused to property during your pressure-washing operations. Consult with local insurance providers to ensure you have the appropriate coverage.
Step 7: Acquire Commercial Auto Insurance
Obtain commercial auto insurance if you plan to use a vehicle for your pressure-washing business. This insurance protects your vehicle and covers any liability in case of accidents during work-related activities.
Step 8: Consider Workers’ Compensation Insurance
If you intend to hire employees, it’s crucial to have workers’ compensation insurance. It provides coverage for employees’ injuries and protects you from potential legal complications.
Step 9: Develop a Marketing Strategy to Attract Customers
Create an online presence through platforms like Facebook, LinkedIn, and Google profiles. Join local Facebook groups, leverage online networking, and consider investing in a website. Utilize yard signs, referrals, and word-of-mouth marketing to attract customers effectively. Using yard signs is a great way of getting new customers.
Step 10: Invest in the Right Equipment
Purchase a pressure washer with a minimum flow rate of four gallons per minute (GPM) for efficient cleaning. Ensure you have sufficient garden hoses and pressure wash hoses for your operations. You don’t need a buffer tank.
A Success Story
My friend Greg Townsend lost his job during the pandemic. He started his pressure-washing business around March 2020. He got clients by going around and promoting his business. Two years later, his business has grown to almost $150,000. He only bought the required equipment after he got confirmed bookings. He started with basic equipment and was able to upgrade when his business started picking up speed.
Start Your Pressure Washing Business Now!
Starting a successful pressure-washing business requires careful planning and execution. By following these ten essential steps, you’ll be well on your way to building a thriving business. Remember, focus on acquiring customers first before investing in equipment. Stay dedicated, continuously learn, and adapt to ensure long-term success in the pressure-washing industry.
Visit King Of Pressure Wash to learn the Top 10 Mistakes to Avoid When Starting a Pressure Washing Business. Also, you can visit my YouTube channel, King of Pressure Washing. I’ve got lots of content there to help you get started.