Just an idea for some of you newer and somewhat experienced washers. Something I did a year or so ago and one of the best things I did.
I often read in here and on some of the FB pages about my downstream injector’s not working, my hose blew, or even worse, my pump took a dump and I don’t have the money to get a new one or repair it. Guys. I don’t care how tight your budget is or how small or large your business is, you’ve got to have the capital to replace broken and worn out equipment. Without it, you’re out of business or at best subjecting yourself to a lot of stress.
At least on a weekly basis I transfer 10% of my gross revenue into a business savings account. That way I’m not tempted to spend it, even if it’s business related. And most of my equipment is relatively new. You’re going to have some major expenses along the way. Be prepared. You’ll be amazed at how much you can save up in a relatively short period. And once you reach a predetermined amount to would cover any emergency, then any excess is what you use to purchase new equipment, spares or whatever. Of course as your inventory of equipment goes up, that emergency number goes up too.
All of your equipment is expendable and is going to need replacing or major servicing at some point. I don’t touch mine for little day to day stuff, like nozzles, injectors, or even hoses. Anything $200 or less I just try to pay for out of cash flow. Each of you, will have to set your own comfort limits for that. But I would encourage all of you, especially starting out, to do this. And in all honesty, I’m thinking of increasing mine to about 15%. When you start taking into account, replacing truck transmissions, trailers, tires, brakes and all the related items probably the real cost is closer to 20%+.
I also encourage some of my residential customers to do this, even the wealthier ones. I just relate it to the old xmas savings account and most can remember those. I tell them to set aside just small amount per month and that way when they need some house maintainance done it’s not such a big hit. I tell them realistically that they need to set aside 1/2% of the value of their home per year. So if they have a $300k house that would be $1500. Then when it needs cleaned every other year, or the driveway every few years or painting, etc then the moneys there. I sell them on the idea that by keeping their home in tip top condition, then that’s going to help the marketability when they ever decide to sell. Most have never even thought about it and they love the idea. I know for a fact some have done it. So by putting the idea into their head and showing I care about the long term prospect of their financial and property being, I’ve just set myself apart from every other swinging d___ out there.
Just food for thought.
