Newbie Question? Profit???

[SHAGGY]

I’m seriously considering getting into the business. Currently I work for a company that sells medical equipment; however, I’m much happier working for myself. I’m extremely motivated and good at marketing which I believe will be handy in this business. I’ve seen claims on some web sites that one could profit between $50,000 and $150,000. I just want to know if this is realistic and if not what is.

[plainpainter]

Originally Posted by SHAGGY

I’ve seen claims on some web sites that one could profit between $50,000 and $150,000. I just want to know if this is realistic and if not what is.

Ha ha ha hhaa haa haah ahaha haahaha haah aha ah. If Phillip Doolittle still came to this site - he'd tell you that you need to charge $40/man-hour for every honest to goodness 'salary' or 'profit' money in the amounts of 10k. So to 'profit' $50,000 - you better be charging $200/man-hour. And as cynical as that may sound - I have as yet to prove him wrong.

[Tegrey]

Shaggy,
Your profit will be up to you. If you make $10,000 profit, you worked for it. If you make $1,000,000. same. I have painting friends who made $6,000,000. last year painting residential repaints. I also have friends who went out of business. Your business plan, the work and desire you build your business with determins your profit. I hear of a lot of struggling artist who live day to day. Ask them what they do with their profits? Invest in the future? Do they work Saturdays and even Sundays to get ahead? Will they come out at 11pm for an estimate? In our business, we are where we are because of what we have done in the past, present and will do in the future. If we are hungry and no work, who do we blame? The answers in the mirror. My 2 cents. Thank You.

[Beth n Rod]

Originally Posted by SHAGGY

I’m seriously considering getting into the business. Currently I work for a company that sells medical equipment; however, I’m much happier working for myself. I’m extremely motivated and good at marketing which I believe will be handy in this business. I’ve seen claims on some web sites that one could profit between $50,000 and $150,000. I just want to know if this is realistic and if not what is.

Have you ever taken any basic business courses? It might be a good investment if you haven't and can fine one geared to small business start ups.

Hope this helps!
Beth

[statewidehoodcleaning]

Keep your day job, scraping grease aint as fun as it seems.

[SHAGGY]

Originally Posted by Beth n Rod

Have you ever taken any basic business courses? It might be a good investment if you haven't and can fine one geared to small business start ups.

Hope this helps!
Beth

I have a business degree; however, I tend to think that common sense is of more value to me. I’m not looking to become rich doing this, but if I can make about 50-70k in my own small business I’ll be a happy man. Do you think this is realistic?

[Scott Stone]

It all depends. I have a friend with an MBA from the top rated business school in the nation who recently started his own business. I have an associates. For some thigns, he comes to me for advice. For some things I go to him for advice.

Now to the meat of the question. Can you make $75k a year? Yes, eventually. Will it be easy? Not at the start. Will PDoolittles formula apply. Not to me. I proved him wrong, but I think for some people it might apply.

[RPetry]

Originally Posted by SHAGGY

I have a business degree; however, I tend to think that common sense is of more value to me. I’m not looking to become rich doing this, but if I can make about 50-70k in my own small business I’ll be a happy man. Do you think this is realistic?

If you love what you do, and have no doubts or spousal problems, can put in 12 - 14 hrs. a day to get started, have enough financial capital or other earnings for a while, no doubt about it.

Dreams are made from hard work and ideas.

[BUNN]

Originally Posted by SHAGGY

I’m seriously considering getting into the business. Currently I work for a company that sells medical equipment; however, I’m much happier working for myself. I’m extremely motivated and good at marketing which I believe will be handy in this business. I’ve seen claims on some web sites that one could profit between $50,000 and $150,000. I just want to know if this is realistic and if not what is.

Some people mistake their salary for "profit".

IMO, your happiness is more important than your salary. Do what makes you happy.

[plainpainter]

Well let me throw this out, now this isn't a 'steady' state business - certainly I am in the middle of growing my company - but out of the 40k of sales I grossed last year, the only 'salary' I was able to draw after expenses was the occasional filling up the gas tank and going for a drive to the beach - and a few starbucks lattes every week - everything else went into the company, everything! So to make 50k salary - I assume I need to gross 90k, and probably will have incurred more expenses in doing so. And now that I am marketing much more - guess what - you need to in order to attract more customers - now I'd say making 30k salary from 100k in sales is about what to expect - and if you gross 120-130k in sales, that'll all you'll be able to do off your own back before needing help. And 'help' will never be as hard working nor as efficient as you. And of course more expenses, say they want a medical insurance policy and workers' comp, good luck.......

[Mathew Johnson]

Yes it is possible. You need to "keep your day job" while building your customer base. Don't be the cheapest.... you will be out of business. Do be the best at "it". "It" means being the best at marketing. professional appearance, professional quotes and best in product results. I am in my fifth year and the year has blown wide open. This follows a year when I seriously contemplated saying "&^%$ it" and return to nursing full time.


Another point to make is that always (and I mean always) look for ways to improve efficiency... If you can shave 15 minutes off of every project, your profit will increase simply by doing more projects and being above your break even point operating cost.

For example...We rented a floor buffer yesterday to buff the floors on a large multi-deck project that we are doing this summer (60K square feet). We went from 25-50 minutes buffing time per deck to 8 to 12 minutes. Plus no grunt work on hands and knees. I was amazed at the results. We bought a floor buffer this evening. It will pay for itsself in a few days. Thanks go out to Jim Foley for some great advise.


We broke last years sales last week. Feel free to give me a call and I will gladly share my successes and failures (and there have been many) along the property cleaning / wood restoration road.

[statewidehoodcleaning]

last year in are little company, we had about 40% of are gross, as profit, What you do with that profit is up to you, Many needed it to pay bill as did we, We are just a little company,
It's a 50 50 Partnership, just me and my bro so the profit is split 50 50,
Last year was are first year, almost didn't make it, don't know how we did, Maybe the grace of god.. But this year seems to be a little better.
In doing this we worked pretty much every day, and night of the year.

So it's hard but hope some day it will pay off.

GOOD LUCK...

[mbryan]

The company I worked for last year did just over $1mil in grease and the profits were about 12%. This is with a full office staff, including Marketing and Sales, IT Dept, Reception, Office Manager and all of in field technicians. The owners of the company drank pina coladas on the beach all year. If they had actually been working in the office, obviously it would have been much more than 12% because they would have taken over some of the duties and could have gotten rid of some of the managerial positions.

If you are doing the work yourself, and you or your immediate family are doing all of the office duties and sales, I would say that a 60% profit is feasible in the grease business.

[Beth n Rod]

Originally Posted by SHAGGY

I have a business degree; however, I tend to think that common sense is of more value to me. I’m not looking to become rich doing this, but if I can make about 50-70k in my own small business I’ll be a happy man. Do you think this is realistic?

None of us knows everything, and having common sense doesn't make you all knowing. Education is a life long process. I learn something new every day.

Beth

[RustyACE]

We've set a lot of greaser's up in business and we run a simple formula.

Our truck doesn't move for less than $200 profit per job.

A full time greaser can clean 7-12 restaurants a week.

$1400 to $2400 Profit per week.

50 wks a year is $70,000 to $120,000 PROFIT.

We start you out as a 1 person operation, guarantee you clients, and help you build up to as many routes as you want.

Grease Police have some of our best examples amongst thier midst and you could learn a ton from them, as well as one of our students is currently their President.

PWNA has even had one of our students as their President and offers programs as well.

If you want hands on training, I suggest the following places:

Hood Cleaning School TM (in Nashville, TN) 1 Man Operation
Delco Cleaning Systems of Fort Worth, Pressure Power Washers (Delco out of Texas) 2-3 Crew Operation
Phil Ackland Training Seminars .:::Inspecting Commercial Kitchen Systems :::.(Derby Pressure Wash- Kentucky) Heavy on Fire Codes, run by excellent folks.

Each program has its advantages and disadvantages and I recommend which ever one that you feel would be a match for you, to go for it.

I sit on the NFPA 96 Technical Committee and I personally teach the Fire Codes at the Hood Cleaning School, and I definitely recommend it over the others. But I know Delco and Phil both have excellent programs and you can't go wrong seeking to get educated in the field that you are thinking about getting into.

Also, as a greaser, you might want to consider adding Fire Safety and Equipment Maintenance along with hood cleaning.

"Fire Suppressant School"TM Nashville, TN 888-848-6636 has one of the MOST experienced Instructors, Ron Goodman, in the market and I know that you would gain from his years of experience.

So, to answer your question, can you earn $70 to $100K cleaning Grease. Absolutely. The real question is are you willing to do what it takes to do that.

Thanks,

Russell Clark
President, Certified Hood & Duct Cleaner's Association
NFPA 96 Technical Committee Member