Hey guys good morning to start a window cleaning and gutter cleaning business within the next few months but money is tight and then I am afraid to spend money on insurance and Licensing if I’m not going to be able to get any work. Should I see if I can get customers before I spend money on insurance and my business license?
NEVER BE AFRAID TO SPEND MONEY! Money is a tool to be used and also to put towards yourself. Also money is good for investing, not saving. (Different conversation).
Commit first and worry about the rest later. Imagine if this was a decision that took you a year to do, this would be a year wasted. If you can, start today! You owe it to yourself.
In your situation, I’m not sure how much it would cost for a LLC. In Massachusetts its 500/year. It might be cheaper where you are. If its costly, would be easier to register as a DBA (doing business as) and get your general liability policy covered for at least 1 million. DBA was 25 dollars for me to register for the next two years. LLC will be my next step at the start of next year.
What more people want to hear is you are insured, because you will lose 9 out of 10 jobs you pitch to people if they are interested but you are not insured. However, depending on how you sell yourself and if you are decent at providing service and you can close the deal, you could swing without insurance.
Don’t wait for customers to decide if you are great, just decide to be great today and they will buy from you.
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LLC in Florida is $125
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If you have it, do it. I think LLC files quarterly. DBA is yearly.
Sometimes you have to spend money to make money.
I got my first vehicle sign written only to have 2 jobs the next day as a result of the signage. Both jobs effectively paid for the sign writing.
Likewise with my WFP set up. Was paid off by the jobs I could now tender for and won.
As Jacob says above, go for it and invest in yourself.
Fortune may favor the brave but nothing is better the cash in your hand as a result of your hard work.
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I would absolutely invest in doing things the right way. Especially insurance! Find a tax professional to help you understand what the best course of action is to handle how you file. I dont give tax advice because I’m not a tax professional. I would personally start as a LLC…but I dont know everything about your situation…so again find an accountant.
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LLC essentially shields your personal assets. If your business is being sued for 20k and you are only worth 10k but you have 50k worth of assets, as a LLC that party can only come after your 10k and you probably have to declare bankruptcy. But your 50k is protected. Downside of LLC is way less tax breaks available.
DBA you get more tax breaks but in above situation that party can come after your 50k in personal assets. Also DBA is an easier process to file for. LLC is a bit tricky to set up to start.
Again just make stuff happen. In one week you definitely can make that money back with a single house cleaning.
You could connect with a local small business administration (may be a sister company ie small business development center etc), go online and they should have free classes on starting your business plus free mentors who will help you through the process, learning about taxes, financial statements, forecast & projections, market research, financial lending, etc. if you’re a veteran there is an additional resource they work with called VBOC that is helpful as well. You need insurance & make sure you understand what it covers ie if you break a window etc (ask questions). Hope this is helpful
I started with almost no money. I put together a shopping list of all the minimum tools I would need, price checked everything. I ordered all that I needed to get online, put it on credit. Then when I booked my first job I bought my ladders. $120 for my 20’ on credit. Then I found good deals on yard sales on a couple others.
Total on credit was about $320.
My first job paid it off!
Also, I did work without insurance for a while and I was picky about what jobs I would take. DONT DO THAT!! It was stupid for me to do that. My friend who is much more experienced than I am scraped a whole house of tempered glass. Scratched them all! Fortunately, he was insured. If I had done that, I would’ve been hosed! Get insurance!
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Get your basic equipment
register with IRS (free)
Get LLC ($50 in Colorado)
Get insurance (hiscox is $30 a month for us)
I think its best to Do it the right way the first time to avoid frustration later. Happy cleaning to you!!
Hey, do you happen to have pressure washing insurance with that $30 a month? That’s cheaper than what I pay.
No pressure washing for us, perhaps later down the line, windows and gutters are enough for me to handle for now lol