Sunday, April 16, 2006
Life & Times of a Startup Sweeper
Greetings reader. I'm sure you've heard it said that you have to spend money to make money. As I've found out, you're going to have to lay out some cash before you ever start sweeping, even if you already have a truck.
Before I go into each item, I want to let you know that there are several aspects here you may not want right at the beginning, but I felt each was important enough to include it. For example, you may look at this list and say, "Shirts? I don't need shirts now!" That's certainly your choice. You may choose to go with a lower cost than I did or to use an item you already own, but don't skimp on some of the main items (like insurance) or you might be out of business as soon as you're in.
First, I spent $1500 on a consultation with an attorney and the subsequent filing of documents to become an LLC in my state. The thought of losing my house, future income or everything I've worked for up until this point because of a simple sweeping incident is way too scary. (To the contractor who told me about his sweeper unknowingly puncturing an oil storage tank:Thanks! I can't forget the lesson you had to learn the hard way. And no matter who asks, I won't tell them who you are.)
Second, hand in hand with the attorney goes insurance. If you call someone like Scott Cerosky at the Pavement Maintenance Insurance Agency you'll get a specialist who knows more about insuring this industry than you could ever hope to learn by research. Scott was incredibly helpful to me, and I haven't heard one naPSa member who doesn't say the same thing about him. Scott even helped me find a different agent when it became known that his company couldn't write in the state I was going to operate. That's the kind of guy you want on your side.
The agent I did end up with has also been excellent. He listened carefully to my needs, got me my policies (one for the truck, and the second for general liability coverage for the business.) In addition, he also recommended a coverage he called "Drive Other Vehicle", which basically keeps me covered at the limits I've established for my business, no matter what other vehicle I happen to be operating. This is especially critical to me because I don't own a regular vehicle that already has a liability insurance policy on it. The tab for all of the insurance policies and coverage is about $4000 per year, and the first payments were approximately $1000.
I mentioned naPSa above. Spend $275 for a naPSa membership before you get started. I'm thoroughly convinced that this is the best investment you can make as a start up. I found an organization of people that had years of experience doing exactly what I wanted to do, and without exception every one of the naPSa members I've met has offered to provide help and assistance if I need it. Also included is naPSa's Mentoring Program and the member discounts on parts, services and supplies. Do yourself a favor-join and get involved. Go to the naPSa events at the NPE or NPE West and participate in the seminars, meet your fellow contactors, and ask questions. As the commercial says, it's not really $275, it's priceless.
Speaking of priceless, there's one other exceptionally valuable place to spend money. I got Ranger Kidwell-Ross' Fundamentals of the Power Sweeping Business book and came to think of it kind of like a Sam's Club, BJ's Wholesale Club or Costco membership. Like joining naPSa, you spend a bit up front, but you save, save, save after that initial expense. Everywhere you look in Fundamentals, there are tips, explanations and processes that save you money and time. There's even a place on each page for notes! For me, this is a book I'll turn to even after the rookie stripe has been removed from my Nite-Hawk.
Now for the "make your own choice" stuff:
I searched and found a like-new low noise backpack blower on eBay. Don't waste your time buying one of the older loud ones, because you'll just end up replacing it once you start operating at night.
Next, a pressure wash for cleaning up. I bought mine at one of the big home discount stores at a sale price just before winter set in.
I had two phone lines installed because I wanted to be able to get a fax and have a separate line for the business so I wasn't answering my home phone with the business name.
A laptop computer is an essential, and I don't know how you could get along without one. The same goes for a digital camera and a mobile phone.
Business forms are very important, but if you get a good business software system for your computer there are often some nice customizeable business form templates built right into the applications. I bought Microsoft Office, and everything I wanted was there.
Business cards are one of the most important expenses, as everyone will ask for one from you. Don't be surprised how quickly you go through your first box of 250 cards.
The same thing goes for color flyers. If you're not a graphic designer, seek out a professional with the skills and experience to do this for you. Even better, look for someone who has experience in the power sweeping industry who offers this service, because you'll get a very well-developed product right up front.
Having a website is becoming more and more important. (Hey, you're reading this on the web now!) Find a good, experienced host that understands the industry and go for content, content, content.
Bidding software is available to help you with that aspect of the business that seems to make most new contractors just shake their heads. Look at the information that's available on WorldSweeper.com or through naPSa.
As I said above, I bought some uniform shirts to enhance my company's image from the start.
I wanted to make certain clients knew that I was soliciting a premium service, not the cut-rate discount version that some others are content to provide. I promise my customers up front that I will treat their parking areas like they are my own, and that I got into this business because what I saw passing for "good enough" quite simply wasn't. (This isn't a difficult concept to reinforce when you're having the conversation in front of a litter-covered lot with filthy curb lines that they're already paying someone to sweep.)
In addition to the shirts reinforcing my company's image, I found a sign shop nearby that specializes in computer-cut vinyl signs. They worked up a price for adapting my company logo, as well as additional lettering I wanted. I had received a previous quote elsewhere, but this shop took the time to explain that the quality of the material they use was much better (7-year vinyl durability instead of the 3-year vinyl I was offered elsewhere) so I decided to go with them, especially with the environment my truck will be used in and the amount of washing it will see.
I also estimated the costs of three months of fuel and maintenance on the truck. I put that aside to help me get up and running in the event that I couldn't find any work, or that the clients were slow to pay initially.
Finally, the big hit. I had to come up with the sales tax and registration fees on the sweeper. There are few things that let you know you're committed faster than writing a multi-thousand dollar check to your state's Department of Motor Vehicles.
Whew. All told in my case, the initial outlay was about $13,500 out of pocket. It was pretty steep, but this is MY business, and all that cash was spent to safely and professionally help me generate some income. I hope. Next time I'll tell you about searching for a truck. Good sweeping!
Greetings reader. I'm sure you've heard it said that you have to spend money to make money. As I've found out, you're going to have to lay out some cash before you ever start sweeping, even if you already have a truck.
Before I go into each item, I want to let you know that there are several aspects here you may not want right at the beginning, but I felt each was important enough to include it. For example, you may look at this list and say, "Shirts? I don't need shirts now!" That's certainly your choice. You may choose to go with a lower cost than I did or to use an item you already own, but don't skimp on some of the main items (like insurance) or you might be out of business as soon as you're in.
First, I spent $1500 on a consultation with an attorney and the subsequent filing of documents to become an LLC in my state. The thought of losing my house, future income or everything I've worked for up until this point because of a simple sweeping incident is way too scary. (To the contractor who told me about his sweeper unknowingly puncturing an oil storage tank:Thanks! I can't forget the lesson you had to learn the hard way. And no matter who asks, I won't tell them who you are.)
Second, hand in hand with the attorney goes insurance. If you call someone like Scott Cerosky at the Pavement Maintenance Insurance Agency you'll get a specialist who knows more about insuring this industry than you could ever hope to learn by research. Scott was incredibly helpful to me, and I haven't heard one naPSa member who doesn't say the same thing about him. Scott even helped me find a different agent when it became known that his company couldn't write in the state I was going to operate. That's the kind of guy you want on your side.
The agent I did end up with has also been excellent. He listened carefully to my needs, got me my policies (one for the truck, and the second for general liability coverage for the business.) In addition, he also recommended a coverage he called "Drive Other Vehicle", which basically keeps me covered at the limits I've established for my business, no matter what other vehicle I happen to be operating. This is especially critical to me because I don't own a regular vehicle that already has a liability insurance policy on it. The tab for all of the insurance policies and coverage is about $4000 per year, and the first payments were approximately $1000.
I mentioned naPSa above. Spend $275 for a naPSa membership before you get started. I'm thoroughly convinced that this is the best investment you can make as a start up. I found an organization of people that had years of experience doing exactly what I wanted to do, and without exception every one of the naPSa members I've met has offered to provide help and assistance if I need it. Also included is naPSa's Mentoring Program and the member discounts on parts, services and supplies. Do yourself a favor-join and get involved. Go to the naPSa events at the NPE or NPE West and participate in the seminars, meet your fellow contactors, and ask questions. As the commercial says, it's not really $275, it's priceless.
Speaking of priceless, there's one other exceptionally valuable place to spend money. I got Ranger Kidwell-Ross' Fundamentals of the Power Sweeping Business book and came to think of it kind of like a Sam's Club, BJ's Wholesale Club or Costco membership. Like joining naPSa, you spend a bit up front, but you save, save, save after that initial expense. Everywhere you look in Fundamentals, there are tips, explanations and processes that save you money and time. There's even a place on each page for notes! For me, this is a book I'll turn to even after the rookie stripe has been removed from my Nite-Hawk.
Now for the "make your own choice" stuff:
I searched and found a like-new low noise backpack blower on eBay. Don't waste your time buying one of the older loud ones, because you'll just end up replacing it once you start operating at night.
Next, a pressure wash for cleaning up. I bought mine at one of the big home discount stores at a sale price just before winter set in.
I had two phone lines installed because I wanted to be able to get a fax and have a separate line for the business so I wasn't answering my home phone with the business name.
A laptop computer is an essential, and I don't know how you could get along without one. The same goes for a digital camera and a mobile phone.
Business forms are very important, but if you get a good business software system for your computer there are often some nice customizeable business form templates built right into the applications. I bought Microsoft Office, and everything I wanted was there.
Business cards are one of the most important expenses, as everyone will ask for one from you. Don't be surprised how quickly you go through your first box of 250 cards.
The same thing goes for color flyers. If you're not a graphic designer, seek out a professional with the skills and experience to do this for you. Even better, look for someone who has experience in the power sweeping industry who offers this service, because you'll get a very well-developed product right up front.
Having a website is becoming more and more important. (Hey, you're reading this on the web now!) Find a good, experienced host that understands the industry and go for content, content, content.
Bidding software is available to help you with that aspect of the business that seems to make most new contractors just shake their heads. Look at the information that's available on WorldSweeper.com or through naPSa.
As I said above, I bought some uniform shirts to enhance my company's image from the start.
I wanted to make certain clients knew that I was soliciting a premium service, not the cut-rate discount version that some others are content to provide. I promise my customers up front that I will treat their parking areas like they are my own, and that I got into this business because what I saw passing for "good enough" quite simply wasn't. (This isn't a difficult concept to reinforce when you're having the conversation in front of a litter-covered lot with filthy curb lines that they're already paying someone to sweep.)In addition to the shirts reinforcing my company's image, I found a sign shop nearby that specializes in computer-cut vinyl signs. They worked up a price for adapting my company logo, as well as additional lettering I wanted. I had received a previous quote elsewhere, but this shop took the time to explain that the quality of the material they use was much better (7-year vinyl durability instead of the 3-year vinyl I was offered elsewhere) so I decided to go with them, especially with the environment my truck will be used in and the amount of washing it will see.
I also estimated the costs of three months of fuel and maintenance on the truck. I put that aside to help me get up and running in the event that I couldn't find any work, or that the clients were slow to pay initially.
Finally, the big hit. I had to come up with the sales tax and registration fees on the sweeper. There are few things that let you know you're committed faster than writing a multi-thousand dollar check to your state's Department of Motor Vehicles.
Whew. All told in my case, the initial outlay was about $13,500 out of pocket. It was pretty steep, but this is MY business, and all that cash was spent to safely and professionally help me generate some income. I hope. Next time I'll tell you about searching for a truck. Good sweeping!
Saturday, April 08, 2006
Today I’ll continue with some more info on evaluating your options when you enter the sweeping business. As I said in my previous post, building a spreadsheet will really help you with this. I’ll be happy to send you a copy of the one I made if you ask...
Once I established my baseline costs, I began studying options I had for starting the business. For example, do I choose a new truck, or a used one? Do I operate the business part time or full time? Do I move to an area where I can sweep year round, instead of the seasonal nature of sweeping up north where I’m currently located? Finally, do I choose a single-engine sweeper or one of the more conventional twin-engine types? Every question can easily be plugged into a spreadsheet for evaluation.
I’ll show you a couple of examples: First, part time vs. full time. If you go down through the spreadsheet, you’ll see that several key items don’t change: Insurance, advertising, the rent and utilities for the shop, etc. However, some items do change significantly: I didn’t need health insurance; my current salary would continue to pay my existing expenses; and my fuel costs and water used are reduced. In keeping with this thought of reducing expenses, I also looked at whether I could operate this start-up company out of my own garage, thus eliminating the expenses for the shop.
Another idea I looked at was purchasing a used truck. Although the monthly payments went down a bit, I did notice other increases because the lenders charged a higher rate on the used vehicle, I had to budget for additional repairs that would have been covered under warranty on a new truck, and I added in the cost of purchasing an extended warranty for the major truck components.
Finally, I need to caution you fellow rookies on something VERY important here: While you may be able to operate without some of the expenses I first explained in the post on 04-07-2006, don’t make the mistake of quoting your jobs based on operating without them. If your costs as a full fledged business are $62.00/hour, but by working out of your house, cutting corners and using an old sweeper you can reduce your costs to $22.00, you can’t quote the job at that $22.00 an hour. Why? Sustainability. The first time you have an equipment failure, you’ll be paying out of pocket because you didn’t plan ahead and budget for this failure. (And don’t think it won’t fail-you’ve already cut your preventative maintenance to the bone to lower your price.) At this point, you’re already locked into a low-ball contract, so you can’t increase your fees to cover the repair costs. What happens now? You can add more accounts, but at the expense of quality on the original sites. Good luck getting those renewed when the contract ends. Quite simply, you’re toast, and you’ll soon join the long but undistinguished line of ex-sweeping company owners who learned this fact the hard way.
OK, let’s say you’re lucky and you don’t have a mechanical failure. You make an entire year, and you’re happy with your progress. Now you get the opportunity to bid some additional contracts, but you realize that to do so you’ll need an additional truck. Do you tempt fate and buy another used truck, trust it to the hands (and right foot) of someone else, and now expect both of your old trucks to make the year? And where do you park the trucks? Does your spouse want a second truck taking up his or her spot in the driveway? What about the possibilities of purchasing that staple of established sweeping companies, a “back up truck”, to use if one of your main trucks fails? You can’t do any of this on that low-ball bid price. You’ll suddenly realize that you’ll need to raise your price by about $40.00/hour. Now you begin to look like somebody who low-balled the clients. What happens? See the last line of the above paragraph for the gory details.
Next time, I’ll go into start up costs. Until then, good sweeping!
Once I established my baseline costs, I began studying options I had for starting the business. For example, do I choose a new truck, or a used one? Do I operate the business part time or full time? Do I move to an area where I can sweep year round, instead of the seasonal nature of sweeping up north where I’m currently located? Finally, do I choose a single-engine sweeper or one of the more conventional twin-engine types? Every question can easily be plugged into a spreadsheet for evaluation.
I’ll show you a couple of examples: First, part time vs. full time. If you go down through the spreadsheet, you’ll see that several key items don’t change: Insurance, advertising, the rent and utilities for the shop, etc. However, some items do change significantly: I didn’t need health insurance; my current salary would continue to pay my existing expenses; and my fuel costs and water used are reduced. In keeping with this thought of reducing expenses, I also looked at whether I could operate this start-up company out of my own garage, thus eliminating the expenses for the shop.
Another idea I looked at was purchasing a used truck. Although the monthly payments went down a bit, I did notice other increases because the lenders charged a higher rate on the used vehicle, I had to budget for additional repairs that would have been covered under warranty on a new truck, and I added in the cost of purchasing an extended warranty for the major truck components.
Finally, I need to caution you fellow rookies on something VERY important here: While you may be able to operate without some of the expenses I first explained in the post on 04-07-2006, don’t make the mistake of quoting your jobs based on operating without them. If your costs as a full fledged business are $62.00/hour, but by working out of your house, cutting corners and using an old sweeper you can reduce your costs to $22.00, you can’t quote the job at that $22.00 an hour. Why? Sustainability. The first time you have an equipment failure, you’ll be paying out of pocket because you didn’t plan ahead and budget for this failure. (And don’t think it won’t fail-you’ve already cut your preventative maintenance to the bone to lower your price.) At this point, you’re already locked into a low-ball contract, so you can’t increase your fees to cover the repair costs. What happens now? You can add more accounts, but at the expense of quality on the original sites. Good luck getting those renewed when the contract ends. Quite simply, you’re toast, and you’ll soon join the long but undistinguished line of ex-sweeping company owners who learned this fact the hard way.
OK, let’s say you’re lucky and you don’t have a mechanical failure. You make an entire year, and you’re happy with your progress. Now you get the opportunity to bid some additional contracts, but you realize that to do so you’ll need an additional truck. Do you tempt fate and buy another used truck, trust it to the hands (and right foot) of someone else, and now expect both of your old trucks to make the year? And where do you park the trucks? Does your spouse want a second truck taking up his or her spot in the driveway? What about the possibilities of purchasing that staple of established sweeping companies, a “back up truck”, to use if one of your main trucks fails? You can’t do any of this on that low-ball bid price. You’ll suddenly realize that you’ll need to raise your price by about $40.00/hour. Now you begin to look like somebody who low-balled the clients. What happens? See the last line of the above paragraph for the gory details.
Next time, I’ll go into start up costs. Until then, good sweeping!
Friday, April 07, 2006
Life & Times of a Startup Sweeper
OK, so how many of the existing contractors out there that have read this so far are laughing now? Yup, it’s been 3 weeks since my last post, and I’ve been getting my butt handed to me on a platter. I’m so buried I had to be told twice that there was a daylight savings time change.
As Ranger said, I looked at the numbers for a long time prior to jumping into this industry. I started with looking at operating costs. I created a theoretical budget for the business so I’d have an idea whether I could pay my own obligations (mortgage, student and vehicle loans, utility bills that would allow me to power up this computer, etc…) as well as the expenses associate with operating the truck.
In case you’re looking to do this yourself, here are the categories I came up with. You can fill your own numbers in, or if you’d like to see what I used for values, feel free to drop me an e-mail and I’ll send you a copy of the spreadsheet I came up with.
Obviously, I had to include a salary for me. I chose the same thing I’m currently making in my current position. I added self-employment tax to that, as well as the costs of health insurance and payroll costs. (I don’t really want to try to figure that out myself.)
Next, I looked at operating costs for the truck. I figured out the monthly payments on a truck (sold at list price and financed at a rate I received from a few different financial sources.) I added in the annual registration and taxes on the truck, fuel costs, then the monthly maintenance cost based on parts and labor estimates supplied by the truck manufacturer. I also included vehicle liability coverage for the truck, as well as the business-again, based on a consultation with a leading insurance agent in this industry.
After this, I went to housing the business. I figured shop costs based on research I performed around what I would expect to pay to rent a facility. I included utilities such as electricity, water, heat and refuse disposal.
Finally, I included business related expenses such as advertising, accounting, legal representation and association memberships. I also added an amount in for “incidentals.” In each case, I attempted to be close, but always err on the high side. (I’m comfortable in saying I’d much rather deal with the difficulties that come from excess revenues than excessive expenses…) I figured all of these things up, took into account that I probably couldn’t operate more than 10 months a year due to weather, and then figured all of that into my spreadsheets.
So far, this seems to have been reasonably comprehensive. Next time, I’ll cover another aspect of my calculations: The comparisons.
OK, so how many of the existing contractors out there that have read this so far are laughing now? Yup, it’s been 3 weeks since my last post, and I’ve been getting my butt handed to me on a platter. I’m so buried I had to be told twice that there was a daylight savings time change.
As Ranger said, I looked at the numbers for a long time prior to jumping into this industry. I started with looking at operating costs. I created a theoretical budget for the business so I’d have an idea whether I could pay my own obligations (mortgage, student and vehicle loans, utility bills that would allow me to power up this computer, etc…) as well as the expenses associate with operating the truck.
In case you’re looking to do this yourself, here are the categories I came up with. You can fill your own numbers in, or if you’d like to see what I used for values, feel free to drop me an e-mail and I’ll send you a copy of the spreadsheet I came up with.
Obviously, I had to include a salary for me. I chose the same thing I’m currently making in my current position. I added self-employment tax to that, as well as the costs of health insurance and payroll costs. (I don’t really want to try to figure that out myself.)
Next, I looked at operating costs for the truck. I figured out the monthly payments on a truck (sold at list price and financed at a rate I received from a few different financial sources.) I added in the annual registration and taxes on the truck, fuel costs, then the monthly maintenance cost based on parts and labor estimates supplied by the truck manufacturer. I also included vehicle liability coverage for the truck, as well as the business-again, based on a consultation with a leading insurance agent in this industry.
After this, I went to housing the business. I figured shop costs based on research I performed around what I would expect to pay to rent a facility. I included utilities such as electricity, water, heat and refuse disposal.
Finally, I included business related expenses such as advertising, accounting, legal representation and association memberships. I also added an amount in for “incidentals.” In each case, I attempted to be close, but always err on the high side. (I’m comfortable in saying I’d much rather deal with the difficulties that come from excess revenues than excessive expenses…) I figured all of these things up, took into account that I probably couldn’t operate more than 10 months a year due to weather, and then figured all of that into my spreadsheets.
So far, this seems to have been reasonably comprehensive. Next time, I’ll cover another aspect of my calculations: The comparisons.
Thursday, March 16, 2006
Life & Times of a Startup Sweeper
I guess I should answer the questions I’ve already gotten from two people who are already established in this industry. Why the power sweeping business, and why today?
If you ask one of my old philosophy professors from college, the first part of the answer is easy-Why Not? In reality though, it's not quite that simple. It is, however, easier to understand once you take a step back and look at the big picture view.
Go back 17 years to when I was an Airman in the US Air Force. I was a technician on fighter aircraft at a base in Florida, and part of any technician's duties is the daily FOD walk. FOD, of course, means Foreign Object Debris (or if it's too late, Foreign Object Damage.) Part of our duties was to line up approximately arm's length from other service members, then walk along the flight line looking for anything that might cut a tire, get sucked into the intake system, or any one of a million unthinkable horrors. The idea that something I missed was very sobering, so I took a great deal of care in what could have been a pretty mindless task.
At one point, I ended up winning a contest designed to reduce FOD, and for that award I was given an opportunity to run a big Tymco sweeper. I remember being fascinated with it, and that I thought it was unbelievably cool in how it worked with no main broom on it. All in all, a very impressive unit, especially for a farm kid who loved not only working on and operating mechanical things, but also keeping things neat and clean.
OK, so I'm not going to be intimidated by the mechanical side of keeping the sweepers running, and taking care of machinery and property was part of the way I was raised. Another critical aspect of owning a business is dealing with people, whether it be potential customers or your employees. I really enjoy dealing with people, and if I believe in something, I can sell it. I’ve long been able to make a “connection” with others once we find some common ground, so I believe that part of the business shouldn't be a problem.
Fast-forward a few years. I’d been keeping several aircraft, a couple of hangars and the operations facility clean for a company in Florida. I knew that there had to be a better way to clean the entire flight line ramp than the hours I spent with a hand-held blower, but I still had yet to hear of the parking lot sweeper (even though the need for the concept had crossed my mind on more than one occasion.) The day finally came when I happened upon a Tymco 210, and seeing it was life changing. However, even after that discovery happened I still wasn’t ready to take the plunge. I needed to see whether I could meet the challenges I’d surely face, including the most intimidating: Could I afford to do this?
In my next entry, I’ll talk about running the numbers. I’ll include how I researched the industry like I was an attorney preparing to argue a case in front of the US Supreme Court. How I created and populated spreadsheet after spreadsheet showing projected operating expenses, start-up costs and break-even points. I researched different locations, as well as the possibility of buying out an existing contractor instead of trying to start from scratch. And I looked into whether I should do this part time and keep my existing job, or take the big plunge and just run with it.
Finally, as to the “Why now?” question, that’s a bit easier. When veterans tell me how great it was back in the “old days” of this industry 20 years ago, I’m envious. But I wasn’t lucky enough to be operating then, so I have to build my plan based on the parameters that currently exist. I’m still comfortable in my ability to succeed based on the numbers I've calculated for today’s situation, as well as those I've projected for the future, so I’m going to start now. After all, I may be telling some start-up contractor this same thing 20 years from now about how much better it was back in 2006…
Until next time,
Rookie
I guess I should answer the questions I’ve already gotten from two people who are already established in this industry. Why the power sweeping business, and why today?
If you ask one of my old philosophy professors from college, the first part of the answer is easy-Why Not? In reality though, it's not quite that simple. It is, however, easier to understand once you take a step back and look at the big picture view.
Go back 17 years to when I was an Airman in the US Air Force. I was a technician on fighter aircraft at a base in Florida, and part of any technician's duties is the daily FOD walk. FOD, of course, means Foreign Object Debris (or if it's too late, Foreign Object Damage.) Part of our duties was to line up approximately arm's length from other service members, then walk along the flight line looking for anything that might cut a tire, get sucked into the intake system, or any one of a million unthinkable horrors. The idea that something I missed was very sobering, so I took a great deal of care in what could have been a pretty mindless task.
At one point, I ended up winning a contest designed to reduce FOD, and for that award I was given an opportunity to run a big Tymco sweeper. I remember being fascinated with it, and that I thought it was unbelievably cool in how it worked with no main broom on it. All in all, a very impressive unit, especially for a farm kid who loved not only working on and operating mechanical things, but also keeping things neat and clean.
OK, so I'm not going to be intimidated by the mechanical side of keeping the sweepers running, and taking care of machinery and property was part of the way I was raised. Another critical aspect of owning a business is dealing with people, whether it be potential customers or your employees. I really enjoy dealing with people, and if I believe in something, I can sell it. I’ve long been able to make a “connection” with others once we find some common ground, so I believe that part of the business shouldn't be a problem.
Fast-forward a few years. I’d been keeping several aircraft, a couple of hangars and the operations facility clean for a company in Florida. I knew that there had to be a better way to clean the entire flight line ramp than the hours I spent with a hand-held blower, but I still had yet to hear of the parking lot sweeper (even though the need for the concept had crossed my mind on more than one occasion.) The day finally came when I happened upon a Tymco 210, and seeing it was life changing. However, even after that discovery happened I still wasn’t ready to take the plunge. I needed to see whether I could meet the challenges I’d surely face, including the most intimidating: Could I afford to do this?
In my next entry, I’ll talk about running the numbers. I’ll include how I researched the industry like I was an attorney preparing to argue a case in front of the US Supreme Court. How I created and populated spreadsheet after spreadsheet showing projected operating expenses, start-up costs and break-even points. I researched different locations, as well as the possibility of buying out an existing contractor instead of trying to start from scratch. And I looked into whether I should do this part time and keep my existing job, or take the big plunge and just run with it.
Finally, as to the “Why now?” question, that’s a bit easier. When veterans tell me how great it was back in the “old days” of this industry 20 years ago, I’m envious. But I wasn’t lucky enough to be operating then, so I have to build my plan based on the parameters that currently exist. I’m still comfortable in my ability to succeed based on the numbers I've calculated for today’s situation, as well as those I've projected for the future, so I’m going to start now. After all, I may be telling some start-up contractor this same thing 20 years from now about how much better it was back in 2006…
Until next time,
Rookie
Monday, March 13, 2006
Greetings fellow power sweeping contractors.
If the content of this blog sounds familiar, it’s not a coincidence. The words you’ll read are yours, or at least they were several years ago when you first started your business. This time they happen to be coming from a newbie, a Johnny Come Lately, an FNG, or any of a hundred other things I’ve been called. And speaking being called, that’s how this whole thing came about. After spending many hours on the phone picking his brain, I finally met Ranger Kidwell-Ross at the Charlotte NPE, where we spoke at length about the specifics of starting my own business. A few weeks later I called and left a message notifying him that I'd found a new truck. Ranger returned my call and asked me if I’d like to document my experiences as a start up contractor in the power sweeping business, circa 2006. I'm stupid like that, so I agreed.
If you’ve ever been around professional stock car racing, you may have noticed that NASCAR has a way of identifying the new drivers so every other racer knows instantly that there’s a brand new driver in the seat of that particular car. Somewhere on the back bumper is a reflective horizontal yellow bumper sticker, a decal that is affectionately known as a “Rookie Stripe.” In the NASCAR tradition, my sweeper (a new Nite-Hawk 400DX) will proudly (?) wear its own yellow Rookie Stripe on the rear bumper for the first year I’m in the business (again, just like the NASCAR guys.)
You’ll be able to follow along as I describe all the different aspects of a startup power sweeping business, the research, the decisions, the conversations, even some of the sales calls. You’ll read about some of the help I’m receiving through NAPSA’s Mentoring Program. (If you’re in the Power Sweeping Industry and you’re not a NAPSA member, you’re really missing out on an important aspect of the business.) You’ll hear of any successes that I hope will happen, as well as read about some mistakes I’m certain I’ll make along the way. (And you’ll see just how I try to recover from these little disasters.)
Your feedback is encouraged, and constructive suggestions are appreciated. If you happen to be a newbie like me or even an interested observer, you're welcome to ask anything. And no, I won’t tell you who I am. My name has been changed to protect the guilty.
Rookie
If the content of this blog sounds familiar, it’s not a coincidence. The words you’ll read are yours, or at least they were several years ago when you first started your business. This time they happen to be coming from a newbie, a Johnny Come Lately, an FNG, or any of a hundred other things I’ve been called. And speaking being called, that’s how this whole thing came about. After spending many hours on the phone picking his brain, I finally met Ranger Kidwell-Ross at the Charlotte NPE, where we spoke at length about the specifics of starting my own business. A few weeks later I called and left a message notifying him that I'd found a new truck. Ranger returned my call and asked me if I’d like to document my experiences as a start up contractor in the power sweeping business, circa 2006. I'm stupid like that, so I agreed.
If you’ve ever been around professional stock car racing, you may have noticed that NASCAR has a way of identifying the new drivers so every other racer knows instantly that there’s a brand new driver in the seat of that particular car. Somewhere on the back bumper is a reflective horizontal yellow bumper sticker, a decal that is affectionately known as a “Rookie Stripe.” In the NASCAR tradition, my sweeper (a new Nite-Hawk 400DX) will proudly (?) wear its own yellow Rookie Stripe on the rear bumper for the first year I’m in the business (again, just like the NASCAR guys.)
You’ll be able to follow along as I describe all the different aspects of a startup power sweeping business, the research, the decisions, the conversations, even some of the sales calls. You’ll read about some of the help I’m receiving through NAPSA’s Mentoring Program. (If you’re in the Power Sweeping Industry and you’re not a NAPSA member, you’re really missing out on an important aspect of the business.) You’ll hear of any successes that I hope will happen, as well as read about some mistakes I’m certain I’ll make along the way. (And you’ll see just how I try to recover from these little disasters.)
Your feedback is encouraged, and constructive suggestions are appreciated. If you happen to be a newbie like me or even an interested observer, you're welcome to ask anything. And no, I won’t tell you who I am. My name has been changed to protect the guilty.
Rookie
