In one hand out the other

It's the cost of doing business, they tell me.

If you have never owned a small service-based business, you may not be aware of the costs of doing so. It's more than you can imagine, believe me!

A perfect example is this weekend; we landed a really nice job, one for which we did not use any of the teams we have (that was because no one wanted to work the weekend at $30 an hour!). So we went to do it ourselves.

We got nearly to the end of the job, and boom, our soft washing system, which has, in fairness, been a total pain in the bottom since we have had it, finally decided to die on us but did it with about 70% of the job completed. Rather than replacing the system with another 12 Volt unit, we have decided to go to a gas-powered system, which will deliver more Gallons per minute and cover larger areas much faster. (yes, I know it will pay us in the long run, not the point of the blog!)

So, we have to rip out the old system. The new one is going to cost just over $2,200, but the mixing chamber we use, which cost us new $1,300, cannot be used as the valves are too small for the gas-powered unit we are buying so we have to have a new one of these as well which is $1,100 on top of that. Then we have to mount it, so we need a frame, so add on another $500; we also need a mounting plate and parts to secure it, so add another $125. Also, add new hoses to plumb it in, and some connectors so add another $140. So the total cost of just the new equipment is $4,065. The hose reel and trigger we used previously can be utilized, so we save a good amount not having to replace them.

Sunday was the only day I could strip out the old system, as we need to have the new one installed and working because we have to use it on Wednesday afternoon, Thursday, Friday, and Saturday this week. So that took about five hours of labor yesterday (yes, I like to get paid as well), filling in the holes from the gear we removed, spraying the bed, disconnecting everything, tightening lines and connections, etc., and just doing an overhaul.

Tomorrow, I am off to Fort Worth to pick up the new gear, which will take about 2 hours and 45 minutes each way; I have a meeting in the morning, so I'm leaving at about noon. I should get back just after 7:30 PM. Then, I can spend Wednesday morning fitting the new machine and getting it all plumbed in and mounted. (Videos will be on YouTube tomorrow. I will post the removal of the gear, and on Thursday, I will post the new one being fitted)

So what's the point of this? Any business has hidden costs, things that you are just not expecting. They just pop up and usually, like buses, come simultaneously. This week, we also spent $1,000 on new brushes for our water-fed pole systems; the beast needs new tires, so we are probably looking at $1,500 for that (find out on Wednesday). So, just this week on gear to keep things running, and today is, oh, let's see, Monday! We are $6,565 behind the eight-ball already, and the weather forecast is for strong Thunderstorms on Thursday, Friday, and Saturday so we will not be able to work. So when someone gets a quote from me for $300 and tells me well, that's a bit expensive. It's just soap and water you use. Is it any wonder it's like a scene from the exorcist in my office?

The thing is to be prepared; when you are running a small business, you need to make sure you have multiple accounts; each week, you send money into those accounts to cover repairs, equipment, taxes, insurance, etc. If you have everything sitting in one account as a small business owner, you look and think to yourself, wow, I have enough to buy food this week! and needlessly spend it on that, and then something like this happens, and you have to go into debt to cover it. So remember to plan and ensure you are covering all your bases so that when things go wrong (and they do!), you have enough to not have to worry about it.

It really is in one hand and out of the other.

If you are thinking about starting a business by yourself, next week, I will share some of the other outgoings you need to consider when putting together your plan.