There is more to a business than purchasing equipment and maybe renting office space. Especially in the early stages, startup costs require careful planning and meticulous accounting. Many new businesses neglect this process, relying on a flood of customers to keep the operation afloat. A business plan should be your first objective as a startup. A business plan forces you to consider the different costs associated with the business. Startup costs are the expenses incurred during the process of creating a new pressure wash business. Not all businesses are alike, so there are a number of startup costs that could apply. However, there are a few expenses that are common to all business types.
Common Startup Costs for New Businesses:
Advertising and promotion
A new company will never succeed without promoting itself. Promoting a business is much more than placing ads in local newspapers or magazines. Today’s digital world offers a number of low cost marketing outlets for new businesses. While social media and other marketing can be a powerful tool, you will need to be consistent and dedicated to growing your audience to get real results. Our article How To Advertise Your Pressure Washing Business can give you a few tips and ideas. For more help with social media, check out our 5 Tips to Improve Your Social Media Marketing too. If you have a bit more budget, consider branching into more traditional outlets, such as newspaper ads or signage. The most important thing is to track and measure how your marketing expenses are bringing in new business.
Starting a business requires capital. For small business owners, the most likely source of financing comes from a small business loan. You can often get loans from a bank, savings institution and the U.S. Small Business Administration (SBA). Don’t overlook your loans once you are up and running.
Businesses planning to hire employees must plan for wages and salaries, as well as benefits. Check with your state’s Workers Compensation Bureau to see what your requirements are to cover your employees if they are injured on the job.
Equipment and supplies
Adding equipment expenses to the list of startup costs can go one of two ways. You will need to first decide to lease or buy. How much of a role will finances play in this decision? What kind of pressure wash unit do you need? Set your budget and stick with it.
Insurance, license and permit fees
Some businesses might require basic licenses, while others need industry-specific permits. Carrying insurance to cover your employees, customers, business assets and yourself can help protect your personal assets from any liabilities that may arise. Be sure you get your insurance for an industry expert. At Joseph D. Walters, we’ve exclusively worked with mobile cleaning contractors for 40 years. We can give you a free quote or review your current policy to guarantee that your business will be covered correctly. Just call us at 1-800-878-3808!
It is also a good idea to have some extra money set aside for any overlooked or unexpected expenses. Make sure your company does not fail because you lack the cash to deal with a surprise problem.
It is important to note that startup costs for a sole proprietorship will differ from the startup costs for a partnership or a corporation. Additional costs that can be incurred by a partnership include legal costs of drafting a partnership agreement and state registration fees. Other costs that can be incurred by a corporation include fees for filing articles of incorporation.
Launching a new business can be a great experience. Above anything else, observe and consult with others who have traveled this road before. You never know where the best business advice will come from! And if you have any questions, our knowledgeable agents would be happy to help!