I've done similar calculations Marc (with different figures obviously as we are opposite ends of the country)
The conclusion I've drawn is that residential window cleaning on a large scale (at least for my numbers) is a hell of a lot of hard work and investment for not a great deal of return.
That's why I've decided to stay small, just under VAT and look into other business opportunities.
even with the one part time lad the added jobs at the end the day sorting a second van out and customer sheets etc all adds to the workload.
I think it all sounds great until you actually start putting it into action.
Wait until you have an employee and another van then decide is you want much more of them!
I'll admit this last couple of months since I've been employing I've questioned on a daily basis whether I really want all this hassle and that's with a good worker, god only knows how hard it but be if you get a crap one.
If your prices are good a domestic business with multiple vans is as good as a commercial round. More secure too as losing customers won’t have the same impact as a large commercial job.
Sounds like you need to increase your prices.
You can only increase your prices so much in your local area.
If i increased my prices much more i wouldnt get the volume of work fast enough to grow, i already struggle at my current prices which are more than most around here....if i lowered them i would grow faster at the expense of profit.
Its not that i couldnt make profit from a larger business, i could.
I just dont think that all the investment, hassle and stress that goes along with it is worth it. The profit margins are too low, especially when VAT comes into the equation.
You need to turnover roughly 3x what you pay an employee per one man van. I guess the going rate there is perhaps £70 a day for a solid and decent worker? £210 a day from the van therefore. If you aren't able to get that you may as well just give up. 17 £12 houses.
Those are the sort of figures I can expect an employee to do.
£210 a day is doable on my round in am 8 hour day.
My point is this.
With those prices yes I can make a profit with a larger busineaa. Without doubt I could.
BUT I don't think it's worth it.
200k turnover would be 5 vans each at 40k
20% I'd gone for vat that's 160k, let's be very generous and say I claimed half of it back so 180k
100k would be In wages and van costs (and a bit more)
That's 80k minus other expenses then tax and N.i etc
Can't be arsed doing the math but would be lucky to take 50k profit.
Why bother spending £1000s and years and years in growing that big for 50k profit a year.
I could take one van with myself and another in it and do 80k turnover with probably the same profit margin.
What I've quickly learnt on the very limited time I've been employing someone is that just because I could have 5 vans out doing the work and me taking 50k it's certainly not any easier than doing the work yourself. The lack of control is stressfull in itself.
Then from this point I could invest in other businesses with less labour intensive models.
I just don't think it works for me, that's my opinion, I don't think it's worth it
I believe I can make more money, easier elsewhere than a service business.
I'm not just taking a wild guess at this. I know my local market, I know what other cleaners charge and i know what I can and can't get away with to grow on a bigger scale.
If I was in Surrey with an average price of £24 it would be a totally different game, but I'm not.
Here's what it boils down to for me.
Window cleaning is great, it got me out of a dead end job and it opened up my eyes to what is possible if you work for it. I really enjoy business, i just wouldn't enjoy a big window cleaning business, it's far too stressfull on a small scale, I wouldn't want that amplified.
All just my opinion, but it's the only one that matters to me tbh.