EN
Embarking on a journey to generate income from scratch can be both exciting and challenging. Currently, the bank balance stands at approximately £4,000, with plans to undertake a pressure washing job valued at £198. Initially, this job was quoted at £99 for pressure washing a driveway, but upon discovering a patio that required attention, an additional £99 was negotiated.
Before starting the job, there was a need to refuel diesel cans, which impacted the bank balance. During the pressure washing task, an unexpected issue arose when the high-pressure hose, which had been recently purchased, malfunctioned. Fortunately, a backup hose was available, allowing the job to continue without further delay.
After completing the job, which took around four hours, the customer expressed satisfaction and even offered refreshments. Positive feedback from clients reinforces the importance of delivering quality service and ensuring value for money.
Recognizing the need for more pressure washing jobs, a strategic shift is necessary. The goal is to balance time spent on actual work with effective advertising. Currently, there is only one job lined up, highlighting the need for increased marketing efforts.
To hire an employee, it is crucial to understand the average lifetime revenue per customer, estimated at £400, with £300 from pressure washing and £100 from upsells. The current pricing strategy involves charging up to £250 for pressure washing, with additional services contributing to overall revenue.
To sustain an employee earning £30,000 annually, additional costs must be factored in, bringing the total to approximately £42,000 per year. This translates to about £183 per day, with the expectation that the employee can complete two jobs daily. However, achieving this efficiency remains a challenge.
An employee will require a van for transportation and equipment. Leasing costs are estimated at £300 per month, with additional expenses for insurance, repairs, and fuel. These costs must be carefully managed to ensure profitability.
The goal is to achieve a gross margin of at least 80% for services offered, although current calculations show a margin of 59%. While this is below the ideal threshold, it is essential to start somewhere and work towards improving profitability.
To increase job opportunities, a marketing campaign is underway, with plans to distribute approximately 1,000 letters. This effort aims to generate leads and create a steady stream of potential customers.
As part of the plan to hire an employee, exploring van options is crucial. The intention is to rent a van initially to assess size requirements before committing to a long-term lease. This approach allows for flexibility and ensures that the chosen vehicle meets operational needs.
In recent weeks, several pressure washing jobs have been completed, and assistance has been received in delivering marketing materials. The total earnings have reached £136.38, bringing the bank balance to approximately £4,410.25, marking a positive step forward in this entrepreneurial journey.
Q: What is the initial bank balance before starting the pressure washing job?
A: The initial bank balance stands at approximately £4,000.
Q: How much was the pressure washing job quoted for?
A: The job was initially quoted at £99 for pressure washing a driveway.
Q: What unexpected issue arose during the pressure washing task?
A: The high-pressure hose malfunctioned, but a backup hose was available to continue the job.
Q: How long did the pressure washing job take to complete?
A: The job took around four hours to complete.
Q: What is the estimated average lifetime revenue per customer?
A: The average lifetime revenue per customer is estimated at £400.
Q: What is the goal for the gross margin on services offered?
A: The goal is to achieve a gross margin of at least 80%.
Q: What marketing strategy is being implemented to generate leads?
A: A marketing campaign is underway to distribute approximately 1,000 letters.
Q: What are the estimated leasing costs for a van?
A: Leasing costs for a van are estimated at £300 per month.
Q: What is the total cost to sustain an employee earning £30,000 annually?
A: The total cost to sustain the employee is approximately £42,000 per year.
Q: What recent achievement has been made in the entrepreneurial journey?
A: Several pressure washing jobs have been completed, and total earnings have reached £136.38, bringing the bank balance to approximately £4,410.25.