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GreatWhiteTechnologies wrote:

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Slowly getting my hands around things. I am trying to decide what the potential is for this line of business so I have a few questions.


1st - I have about 1 million homes within a 1 to 1.5 hour drive from my house. What percentage of the homes can you expect to handle starting out if you do your marketing homework?

2nd - What is the average per job profit? I will be doing this myself to start. I was thinking around $200 without paying my self any wages at the moment.

If I figure this out right and I may be a little high

1,000,000 homes
.25% = 2500 homes
2500 x $200 = $500,000

Not counting businesses in the area. This is figuring on 1/4 of 1% of the homes using my services. This is not including any added services like house washing etc.

What do you think? Have I just stepped off the deep end or what?

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LOL, we grossed  over 250,000 last year, but I have two employees, and ads to pay, chemical and gas costs, etc.
Still, I make a comfortable living.

I KNOW folks making MUCH more then me cleaning roofs. and some make less.

It is UP to you.

Like ANY business, there is NO Ceiling.

But, there is no FLOOR either

 

GreatWhiteTechnologies wrote:

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I guess there are no stupid questions just alot of inquisitive idiots. Myself included.

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The ONLY "stupid question" is the one you dont ask that COULD have preevented you from making a roof cleaning mistake

 

Pat, gonna keep it real with you here. You've jumped off the deep end. LOL!

Realistically, DO NOT expect to make anywhere near that your first year, or two, or probably 3. There are certain limitations to those projected numbers that are intangible. First, you won't be able to hit even a quarter of those enough times to produce a solid ROI in any given year. The standard on any ONE piece of advertising is about a 1% ROI.

With that being said, don't be discouraged. Just be realistic and honest with yourself. You can probably hit 20,000 to 30,000 homes effectively(key word here) in any given season. We'll say 20,000 with an ROI of 1%. Average net profit per job (for us) is around $300-350.

20,000 x 1% ROI = 200 homes responding (not necessarily buying, just responding)

200 buying x avg. $425 (good average number) = $85,000 GROSS (don't lose me, as this is where MOST businesses fail).

$85,000 GROSS - all expenses, overhead, etc. will leave you, if you run a business and NOT a job, with about a $45,000 to $55,000 salary, and that's on the high side.

Do not let yourself get sucked in to the mindset that so many new guys adhere to where you post an ad in the yellow pages, newspapers, etc. and EXPECT the phone to ring. It won't.

Be honest, bust your butt every day, do it for the passion. If you don't ENJOY cleaning roofs, it will never work for anyone.

Hope this helps, and I hope this doesn't burst any bubbles, but gives someone insight into how to run your numbers. As I've said so many times:

Know your numbers! Your business will live or die by your numbers.

hey, there is no limit to what you can do. If the numbers are there its possible. Those who tell you its not realistic have never made it so its unrealistic to them. the ones who have made it and still make it can tell you anything is possible as long as you keep up on it. While others are waiting for calls, you should be calling customers. We are proactive around here and find the roofs we want to clean not the other way around! we know we're cleaning there roof before they know. work AS IF  500000 is realistic and if you get close you never lose. Thats my wisdom for the day.
Also The choice of the word realistic has nothing to do with the people who said that in another reply, I do not know what they have done, I am just saying in general.

-- Edited by Roof Rejuvenators Roof Cleaning Wilmington, NC (888) 366-3051 on Wednesday 8th of April 2009 06:09:38 PM