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End of year check list revisited

Posted by Linda Chambers on Mon, Dec 21, 2015 @ 09:00 AM

I though I would revisit a post I did back in 2008 for the end of this year 2015.

With the year winding down there are things to do before the end of this year to get ready for next year especially if this is a slow time for you.

Do a Business Wellness Check. CheckingCosts.jpg

First take a look at the cost increases you had during the past year and make sure that your prices are still in line with the changes. If not now is the time to make the rate changes for next year. You may be able to use the sales pitch to lock in next Springs contract now allowing them to lock in today's pricing before next years price increases. Just be sure you can still make a modest profit at the old price. It never makes sense to work just for works sake it, you must be able to make a living at this.

In fact price adjustments are something that you may need to do twice a year or quarterly depending on how volatile the year is for your vendors. Even if the new pricing is to just to your new customers during the year.

You need to see where your major cost increases were and make the needed adjustments now. If it was in supplies are there ways you can save? Can you make better purchase decisions that will help you next year? For example is there anyway to maximize your purchases? Can you buy 3 or 4 kits of product instead of 1 or 2 at a time and save some on shipping costs? Are there more affordable options for your supplies? Have you been using your products at their optimum? For example are you sure you are using the right concentration for the job or are you using more than you need therefore have been wasting money? Are you able to buy in bulk for consumables at discount or bulk shopping locations like Sam's, BJ's or similar companies.
 
If the higher costs came with labor was everyone used the most effective way? Can you tighten up your schedule, fit more jobs in, work faster while still maintaining quality? Do you just have too many employees or too few and are paying too much in overtime?

Next evaluate your equipment needs. If you have had to make repairs repeatedly on a piece of equipment during the last season, now maybe the time to consider replacing it. Many times Winter is the time of year when equipment vendors have sales or give discounts for end of season and to save on the price of taxes carrying that inventory over into the new year. It is hard to stick to a busy schedule when equipment failures put you behind and possibly lose you jobs and money. Would a newer piece of equipment make you more efficient thus saving you time and labor costs? Can you have a tax savings by purchasing a new machine and spreading the cost over the next few years?
 
What about the services your business uses, can you save there. Check your phone, insurance, accounting, any monthly bill. Check prices and look for less expensive options.

One thing to not forget to put on your business wellness check list is to make sure your business stays in compliance with your local, state and the federal waste water regulations.

Here is a link that I think will be helpful to many of you: http://www.washwater.org/. This will allow you to find links and the information you need at one site. Increased awareness with droughts, water restrictions and tighter regulations you need to be in the know instead of on the receiving end of a warning or worse a heavy fine.

These are just a few items to put on a check list. Make yours as long or short as you need but be sure it covers all of the areas that effect your bottom line. Every cost to you and your business makes a difference in the end.

I hope you had a good 2015 and will have an even better 2016.

Tags: washwater.org, business costs, Business, business plan

Buy vs. Lease. Improving your Pressure Washing Businesses bottom line

Posted by Linda Chambers on Wed, Dec 29, 2010 @ 09:18 AM

If equipment costs this year have put you in the red I have a suggestion to turn that red to black next year.

If you have been in business for at least two years and up to now have had a good profit track record, now may be the time to switch from owning your own pressure washing equipment and rigs to leasing them or at least any new ones.

If you are wanting or needing to expand your business and need another rig but just can not find the financing due to banking changes or you need the benefit of cash liquidity in your current business dealings look into leasing.

There are numerous companies that will lease complete pressure washing rigs; to find one is as easy as doing a computer search engine query for "name of your town or state, along with the words "pressure washer leasing" or "leasing for pressure washing equipment". Many of the best deals can be found with local family owned companies but there are a few National franchise chains as well that lease, such as Hotsy and Hydro Tek.BuyvsLease resized 600

The value in leasing vs. buying out right are many, but here are a few.

1. Less of a large up front cash out lay, as needed if you are buying outright or making a down payment for a loan.

2. Monthly payments are usually lower per month with a lease vs. a loan repayment. Generally you can make your lease payment up in a day to two. Giving you the freedom to make money for yourself the rest of the month.

3. Tax benefit in being able to write off most if not all of the lease payment expense every year instead of having to amortize the equipment cost over 5-10 years of tax returns.

4. Selling older equipment or rigs that may be getting close to the end of there working life span now and using that money to get industry cutting edge equipment that may be out of your price range if you had to purchase it out right your self.

A leasing contract is also usually easier to get approved then a bank loan since the company you are leasing from deals in this type of equipment daily, and can reclaim the equipment more easily than a bank can if you are unable to met your monthly payment obligations. Also leases are easier to get out of if the equipment is not performing to your needs and might even be able to be changed or adjusted while only having to modify the lease slightly as your business needs change.

I hope this has given you some thing to think about if you are needing to improve your equipment next year while lowering your overall cost of that equipment. Happy New Year.

For similar tips go to www.pressurewashers.lifetips.com.


Tags: expenses, business costs, Leasing

End of year check list

Posted by Linda Chambers on Mon, Oct 06, 2008 @ 10:10 AM

Welcome to a new month and the last quarter of the year.

With the year winding down I wanted to touch on things to do before the end of this year to get ready for next year especially if this is a slow time for you.

A great idea is to do a Business Wellness Check.

First take a look at the increases you have had during the past year and make sure that your prices are still in line with the changes. If not now is the time to make the rate chart changes for next year. You may be able to make the sales pitch for next Spring to get a contract now is for the company to lock in today's pricing before next years inevitable price increases. Just be sure you can still make a modest profit at this new price. It never makes sense to work just for works sake it, you must be able to make a living at this.

In fact price adjustments are something that you may need to do twice a year or quarterly depending on how volatile the year is for your vendors. Even if the new pricing is to just to your new customers during the year.

You need to see where your major cost increases were and make the needed adjustments now. If it was in supplies are there ways you can save? Can you make better purchase decisions that will help you next year? For example is there anyway to maximize your purchases? Can you buy 3 or 4 kits of product instead of 1 or 2 at a time and save some on the rising fuel costs? Are there more affordable options for your supplies? Have you been using your products at their optimum? For example are you sure you are using the right concentration for the job or are you using more than you need there fore have been wasting money? Are you able to buy in bulk for consumables at discount or bulk shopping locations like Sam's, BJ's or similar companies.

Next evaluate your equipment needs. If you have had to make repairs repeatedly on a piece of equipment during the last season, now maybe the time to consider replacing it. Many times Winter is the time of year when equipment vendors have sales or give discounts on end of year models getting ready for next years models just like the car manufactures. It is hard to stick to a busy schedule when equipment failures put you behind and possibly lose you jobs and money. Would a newer piece of equipment make you more efficient thus saving you time and labor costs?

One thing to not forget to put on your business wellness check list is to make sure your business stays in compliance with your local, state and the federal waste water regulations.

Here is a link that I think will be helpful to many of you: http://www.washwater.org/. This will allow you to find links and the information you need at one site.

In these days or increased awareness with droughts, water restrictions and tighter regulation you need to be in the know instead of on the receiving end of a warning or worse a heavy fine.

These are just a few items to put on a check list. Make yours as long or short as you need but be sure it covers all of the areas that effect your bottom line. Even down to the cell phone use and insurance policies. Every cost to you and your business makes a difference in the end.

Have a good month and next time will be about increasing your business exposure in the community.

Tags: Business, washwater.org, business costs, business plan

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