trying to get started with used equipment . help!

All right southern. With regards to insurance and the biz set up you should consult with a pro.  There are a lot of advantages to an LLC and if your doing primarily residential and no govt stuff a 1 million  general liability policy would be a good start but again speak to the pros

Insurance: you need a general liability policy with a "care custody and control" rider.

IICRC? Well I have been in this biz 26 years and exactly one person asked me about it. It is a scam for sure.

With regards to IIRC none has mentioned it. One did call a retailer to discuss weather the low moisture was an accepted process

I would start with sole proprietor first before jumping into LLC, unless if you have a home that's close to being paid off or even paid off, then I would go with LLC, it's a good idea to cover your behind just in case.
IICRC is hmmmm how do I put it, they can be good to add knowledge through their classes, but I wouldn't waste your $$ on them just yet, I would wait a few weeks - a few months and make sure that this industry is for you.
I've had 3 customers asking me to sign their warranty form but that's over in 5 years period and the last one was about 3 years ago, so I wouldn't put my hope too high on that.

The million dollar policy should suffice it unless the Hampton demands additional. I carry 2 million only because some of my contracts required it...I'm even insured against a terrorist attack.

As for the iicrc, I have been associated with them for the last 8 years and although I have never been asked by a customer, I would VERY strongly recommend taking the classes and getting certified when working commercial.

Why certification? If you screw something up, it is the only defense that you have in court. Any attorney will go after your credentials and experience and if you are certified AND followed the guidelines under that certification, you will be on solid ground. Without it, you are just some bum trying to make a buck to the courts.

You will probably not learn more than the lingo in a iicrc class, but you will learn from the other cleaners in the room. I used to take 2 notebooks to class, one for the instructor and one for what I learned from the members in the room. I only filled about 6 pages from the instructor, but normally half a notebook from everyone else. Even then, learning the lingo is an important thing to providing credibility.

As for LLC, you can do it yourself or hire an attorney to put it together...it will cost about the same either way. I agree with Dp, you probably should just start out as a sole proprietor. There are many advantages to incorporating, but if you are the only member of the corporation, you will not gain much protection from liability.

As for the hotel itself, get them to sign a 12 month contract. When you are starting out, stability is very important. With a solid contract, you can budget and can grow your business equipment-wise without falling on your face because your anchor customer decided to go another route.

After the first year, renew at a better rate. I can almost guarantee that you are low in what you are charging.....we all were when we started out.

The jets keep getting clogged on my wand . I have cleaned the jets and flushed lines several times. It is little black pieces of metal that im getting out of it.I tested with a magnet.Could this be coming from the pump impeller? Is there a inline filter to prevent clogs? This equipment has sat for over a year.

You should have a filter in the solution tank. I presume you have cleaned out solution tank and waste tank? You probably need to descale and clean out the lines don't connect the wand when you do this flush so that you don't clog up the wand.

Here your manual and parts list

Manual

Parts List

Yes there is a filter that you can install depending on the wand if the jets are screwed directly to the wand there's a kit you can buy too install between valve Assy and Q connect. If you have jets that you can screw a nut off and the jet is inside the nut then there should be a large hole under the jet the the filter goes in there, or the old filters are still in and needs replacing that could be the problem also.

Black pieces of metal clogging things up? That's interesting, your pump impeller might be iron, so if the guy was adding caustics through the pump, you could see corrosion flaking off the vanes.

I would suggest just opening all the lines and flushing really well with plain old soft water for about 10 minutes. Then replace the shut off valves, jets, wand trigger valve, and quick connects accordingly.

Why replace everything? They are also metal and would be affected by those caustics. Replacing them now will provide assurance that you don't have problems when cleaning.

Few things ruin a cleaning job more than a break down. Not only does it slow your progress greatly, but it just makes you look bad to the customer and that impression is an important one.

To me, that piece of mind is worth spending the $100 to upgrade all those items.....they are probably worn out anyway.

A friend of mine owns a tree removal service. One of his employees talked him into buying a new truck mount and van for when the tree service gets slow. His employee flaked and he don't have anyone trustworthy to run the carpet cleaning. He has $30000 in the equipment that now has only 4 hrs on it. He offered it to me to run on a 50/50 take. Would this be a good deal?

Are you talking about becoming equal partners or just giving him half of what you make?

If equal partners, it could be a good situation. If it is giving him half of everything without being a partner, I would say no.

Why would I say this? Well, cash flow is very important when starting out (still important later too) and working for half would be tough. Sure, he provided the machine, but you could find a machine and pay a lot less per month than 50% of your revenue.

If you wanted to make him an offer for the van and equipment....that might be a good opportunity as he is stuck with buyer's remorse and would probably like to get out of it altogether.

What is the equipment, maybe we could help you navigate through this decision. Heaven knows, many of us made bad decisions early on....I know that I certainly did.

Yes! providing you have things dialed in with a written agreement and performance contract! You need to know his role and what is expected of you....you need to determine what value of the company will be yours if you build it and he wants you out....or you him. this can get sticky so make sure its written! if it is, then everyone knows whats expected of who. A good attorney will find more detailed potential problems. address everything. But the 50/50 gig is good for you!

Is the equipment financed?
Is there pressure to make payments?
Do you have accounts to bring in?
Why did the other guy split?
Is there an account with any funds to help support starting?...
Will you resent giving him half when you start making good money?

More info would help.....pursue it slowly.

This is good for both of you actually, providing you two are businessmen about it.

Is he looking to work with you during slow months in tree service?

I had a good agreement one time with a substantial company I built and a stupid thing caved in the company ...my partner had added to the agreement that we could draw weekly expenses for things like fuel, eating out, entertaining etc outside of our pay.....What he did was, he eventually gave his wife a card and she was using it just like he was...this was double the expected funds going out on his end and when I called him out he said...well, its in the contract! So, I gave my wife one! lol this is what created the fall of a company that did $1.2m in year one and by year three we were doing almost $4m.....he thought he had me with a strong contract but one thing he over looked....I was the brains to the whole manufacturing end of this....I reversed what he expected, I quit and gave it all to him. he folded within 6 months and that was holding on to pride. I gave him 3 moths but he tried to prove he could do it. I always new I had an ace in the hole.....but I didn't want that, I wanted fair! we never really got petty but when her draw was over $1500 a month and my wife got her mad money from my pay or on her own...I was not real happy. He always spent way more than I did but I wasn't petty. I wanted success. I still own the intellectual property from this company and could still fire it up....but its a sore now.


Didn't mean to get all worked up, but silly things happen when its not in detail and on paper. This was the same guy who said...we don't need an attorney! why would we screw each other. lol His wife begged me to stay with the company....he now works for someone and struggles to make ends meet. puzzles me really!

Also, dont use an attorney he chooses!...you both agree on a random one out of the phone book in another city. This is huge. Go in being as fair as possible...expect that of him.

50% of all marriages end in divorce.....the rate is a whole lot worse for partnerships.

I would still look to purchase or even lease the equipment from him and start out clean. This, of course, depends on the equipment we are talking about as you can find good back-up units out there for half that amount which would serve you well for many years.

Devon07 wrote:Is he looking to work with you during slow months in tree service?

He bought the equipment on a whim. He don't want to fool with it. I would only take this deal at 50% of the profit after expenses. I am thinking it over. But I really like the idea of being on my own. The mytee i bought has some problems. The pump fluctuates at times, it needs one of the heating elements replaced. I cleaned a shuttle van yesterday and it don't seem to have enough suction. Debating on whether its worth replacing the gauge, rebuilding the pump, replacing the elements and thermostat..I can fix it myself with about $300 in parts. The competition around here work cheap.. The only way to make it is to out perform them. I don't know if that's possible with the equipment I have. The last thing I want to do is start a business and get a bad name from the start. I was told that a company from a neighboring town cleans the applebees here for $100. I don't see how they are making it!

Lot of things in there to discuss.

I started out with a floor scrubber and a Steamin Demon extractor. Together, I could clean just about anything, except maybe stairs. I worked really hard and received good feedback, but what I couldn't do was get the jobs with that set-up.

Every bid I gave ended with them asking if I used a truckmount and no amount of sales jargon changed their minds. I had to finally buy a used mount and then the work came pretty easily even though I really wasn't cleaning any better.

Portables and encaps have there place in the market, but you have to exploit areas where the truckmounts can't go like Banks for instance or high rise buildings.

If you think you think you can find enough work in those areas, fix up the portable, get a good scrubber, an airpath, and go after it. If that market isn't really there or doesn't match your desires, strike a deal on that equipment while he is still wanting out.

Companies are always cutting their throats to get the jobs and then go out of business because they bid so low that they don't make any money. Cleaning that AppleBees for $100 would only work if they were not spending more than 40 minutes in there....doubt that is the case.

Never bid against a business that is driving themselves out of business or you will go down with them. Set your price and find the jobs that will pay it in your area.

Think things through and take it slow, it is a big step buying a truckmount.

No, don't do it. 50% of 6k, 8k or 10 k a month , in a year or 2. Even after expenses. Ouch.
30k in equipment is about $650-700 mo.
IF you make a deal, put a cap on how much you pay him a month. He is probably just wanting out/relief from the debt. Offer to help cover that cost, BUT DONT end up over paying!
The details of your agreement should be favorable to you.
He has an albatross around his neck, you don't.

Do not compare to what others are doing....build a name and move forward. This forum is a great advantage....these guys in here will help guys/gals who want to do things right. everyone has great advice. either way you do this needs to be careful....Like Milspec says, you would be doing best if you have the ability to buy the equipment...maybe he will finance...I suspect he wants to have some income and wont be that interested in letting it go without staying attached. figure out this first....you would be doing best to own it....I can be a good relationship if you do the 50% but the 50% after all expenses is more than likely not going to work....its a fair deal if you work a contract right. something along the lines of splitting all...bills and income. Maybe work a deal where you split 30 / 70 until he reaches his $30K then he is out.

I typed in a long response to this on my phone and then got a phone call from customer and when I re open my browser my response was gone

I found a cargo trailer pretty cheap. It comes with a autoscrubber,shovel nose extractor,high speed buffer,power edge scrubber. Wasn't planning on getting into commercial tile maintenance but its a deal that is hard to pass up. I maintained grocery store floors years ago its nothing new to me. I was just a laborer at the time so I don't know anything about the business end of it. Is it a good idea to try to do both carpet and tile? I will be basically getting a nice cargo trailer with all the equipment for $2200. About what i would pay for a trailer by itself. All of the equipment is in good shape. The guy inherited it all and just wants rid of it.

Carpet and tile both are good....business takes off quicker and usually one has the other.

Sounds like a nice deal, so why not.

If you don't use the equipment you could always sell it.

My thoughts exactly. Whats the going rate for stripping, waxing and maintenance.