How will you handle a recession as a pressure washing business owner?
As 2022 progresses a recession seems more and more likely, what does that mean for you?
Many economists are predicting "doom and gloom" for the US economy but what will that mean for the pressure washing industry and how can you best prepare for this?
First off, what is a recession? A recession is defined as a period of 2 successive quarters of GDP fall. This has already happened so for basic purposes we are in a recession right now.
Continue reading to learn why we think a recession won't affect most pressure washing companies.
What industries are most affected by a recession?
Looking back to data from the last recession we had (2007-09) the construction industry was most affected, partially from the housing boom that preceded the recession.
Other industries have historically performed well in recessions such as healthcare, education, I.T., and more.
Industries with thin profit margins and large value items are also hurt in recessions. There is limited room for sales or promotions in these industries.
Why won't pressure washing be affected by a recession and why pressure washing might just be the best "recession proof" business
The pressure washing industry is most generally dominated by owner operators and companies with 5 or less employees. This business design is much less susceptible to declines from a recession for a few key reasons.
- Less overhead than larger companies
- Higher margins for similar work
Why pressure washing might be the perfect "recession proof" business to start in 2022?
The pressure washing industry has very low start-up costs, high average margins, limited training or prior knowledge to get started, and the industry has a variety of work and a large amount of jobs which are complimentary to the service to be sold as add-ons.
How can you prepare your business for a recession?
The biggest asset to your company during a recession will be your sales and marketing abilities. As the industry changes you will need to look for ways to communicate with past and prospective customers more frequently.
Emails, postcards, flyers, and occasional phone calls can help you drastically improve your gross sales. Combining this with extra focus on upselling while on the job will make almost all businesses who follow these simple 2 steps a success.
Obviously this article is opinion that is based on research and industry experience, This should only be used in conjunctions with your own research so you can make informed decisions for the future of your business.