Business Startup Guide
Business Startup Guide
START UP
CHECKLIST
TABLE OF CONTENTS
TESTIMONIALS 28 >
9 STEPS TO
GET STARTED
03
STEP 1 STEP 3
DECIDE ON YOUR COMPANY NAME GET YOUR FEDERAL EIN
(EMPLOYER IDENTIFICATION NUMBER)
Your company name should include the word
“Painting” or “Painters” in it. Once you have registered your business with the
Secretary of State, you are ready to register your
Your company name should be easy to spell so you are business with the Federal Government to get your EIN.
easy to find by potential customers. You’ll need a Federal EIN to open a bank account, file
taxes, and legally operate your business.
Do a google search to see if there are any other
companies using that name already… Or any name
like it. You don’t want potential customers accidentally HOW TO GET YOUR EIN VIDEO
hiring a competitor when they were searching for you.
STEP 2 STEP 4
REGISTER YOUR BUSINESS WITH SET UP YOUR BANK ACCOUNT
THE SECRETARY OF STATE
Once you have registered with the Secretary of State
To register your business you’ll register it with and got your Federal EIN, you’re ready to set up your
your Secretary of State. Go to google and search bank account. Take your “Articles of Organization”
“Colorado Secretary of State” or whatever state you from the Secretary of State and your Federal EIN
are in. confirmation to the bank. Also bring your driver‘s
license.
If you’re having any trouble finding out where or how
to register your business, do a Google search: “How to These are the 3 documents you’ll need to set up your
register my business in (state)” bank account.
CO N T I N U E D
04
STEP 5 STEP 7
GET A GENERAL LIABILITY INSURANCE CREATE YOUR FIRST LOGO
INSURANCE & WORKERS COMP POLICY
Don’t spend too much time or money on your
You need to contact an insurance agency to set up logo. You can always redesign it later. You just need
your General Liability Insurance and your Workers something to start with. Don’t spend more than $50-
Compensation policies. $100 on a logo.
The basics are: There are a few ways you can get a logo created.
• Get $1,000,000 in General Liability Insurance
• Get a Workers Compensation Policy 1. Ask friends and family or post on your social
media networks. You probably know someone who
A good insurance agent can help get you the best can help you with that… Or someone you know
policy with the best protection. Insurance is not a will have a referral for you. This is the best option.
place you want to get “the best price”... Because the 2. Fiverr.com
best price usually means bad insurance. If you ever 3. 99Designs.com
need insurance, you don’t want bad insurance. 4. Upwork.com
STEP 6
DETERMINE LICENSING REQUIREMENTS &
GET LICENSE (IF REQUIRED)
05
STEP 8
BUILD A COMPANY WEBSITE
You don’t need to invest a lot of money in your website early on WEBSITE + SEO
either. Nobody will be visiting your website until you give them the Ranking your website on the top of Google
direct link… Nobody will be able to find you on Google right away, is very profitable but also expensive. You
and nobody knows about your business yet. should start investing in SEO as soon as
you can afford it. SEO stands for Search
The reason you need a website is because customers will ask for Engine Optimization… This is a term
your website, and if you don’t have one you seem untrustworthy. used for “how do you get a website at the
This is about credibility and being “legit”. top of Google”. There are 2 companies I
recommend for a new business.
06
S TE P 9
ORDER BASIC MARKETING
& SALES MATERIALS
Use the templates provided for your first version. Again, don’t
overcomplicate this. These templates provided are basic to make
it easy for you… And they work!
CONGRATULATIONS! YOU’RE
READY TO BUILD YOUR BUSINESS!
07
POWERFUL
REASONS
TO B U I L D A PA I N T I N G COM PA N Y
The painting business and painting industry have a LOT of appeal and
opportunity. It’s not that I’m passionate about painting, I am passionate about
serving my customers, taking care of my employees, and building a great
business.
I am passionate about building a business and the kind of life it provides me.
What you do with that time and money is different for everyone. We’ll get to
that soon enough but for now, let me show you why the painting business is a
very attractive business to be in.
08
LOW RISK & LOW START UP COST
If you don’t have a dollar to your name, So many businesses require a lot of money
you can still get this business started quite to start, and you’re “crossing your fingers”
easily. If you have some money to invest, that you start making money and making
#1 it’ll make it even easier for you. profit.
I’ll even show you exactly how I started my It kills me to see that happen. You see
business with $200 and made $4,000 in restaurants or shops open and then close
profit in the first 4 weeks working part time. their doors 6-8 months later. How much
money and time did they lose? How big is
We’ll also cover how much it can cost to the hole they need to dig out of now?
get your business started on the low end to
the high end. You don’t have to worry about putting
your life savings at risk when starting this
Once you get your business started, you business… And you can make profit
can keep it simple and avoid any big risks. very quickly!
This is rare to find.
Residential painting is a huge market and is Immediately you can have money and
highly profitable… profit coming in.
You get paid right away... You can also start this business with no
equipment and no office (more to come on
You can set the business up so that that later).
money never goes out unless money
comes in first...
09
LOW LEVEL OF COMPETITION
Everyone I talk to has a bad contractor Most painting contractors have no idea
story. This industry has a bad reputation. what they are doing when it comes to
That reputation has been earned. marketing, estimating, selling, managing
#3 In this entire industry (not just painting),
subcontractors or employees, and the like.
010
IT’S SIMPLE AND EASY
Painting contractors out there hate me for An exterior paint job is prep work (how
saying this. to fix problems), application, and what
products to use...
#5 I don’t mean all of painting is simple…
Hiring experienced painters will fill in the
I mean you can keep it simple at the smaller details.
beginning!
I can teach this to you in an afternoon.
You don’t need a ton of technical
knowledge. Then you slowly expand out from there as
you gain knowledge.
If you start with residential exterior
repaints, there is little technical knowledge You don’t need to chase the complicated
you need to start this business. jobs to make a great company.
You aren’t going to be the one doing the The residential repaint market is
painting - you’ll hire experienced painters enormous, very profitable, and the
to do that for you. competition is weak and not business
minded.
You need to know the problems that
happen on a house, the solutions to
those problems, and the products to
recommend.
011
ERIC BARSTOW
Founder
YOU
PROBABLY
ALREADY
KNOW
WHAT I’M
TELLING
YOU...
Most people I talk to are interested in starting a So you see an opportunity to come in and do a better job.
painting business because they’ve been working as a And it’s almost impossible to find another industry like
painter and they want more for themselves… this one…
Or they see what a terrible job the owner of their 1. Start up for less than $1,000
existing company is doing, or they think they can do as 2. Make profit in the first 30 days
good or better of a job. 3. Have a massive, need-based market
4. With low level competition
Or you aren’t from this industry and you’ve seen, from 5. With low technical knowledge
the outside, how low the bar is. 6. And low barrier to entry
I hear from people all the time that they were trying You probably won’t find another industry or
to get estimates and nobody would show up, or did opportunity like this one.
terrible work…
It is an amazing opportunity for building a business.
012
WHAT ARE
YOUR START
UP COSTS?
013
Starting up a painting business does not need to be expensive.
I started my business with $200 invested and made $4,000 in
profit in the first 30 days.
I’ll outline the start up costs with a low end and high end of what BUSINESS REGISTRATION
you can expect to spend to get your business started before you Range: $0-$150
are making profit. There is a small fee to register your business in every
Once you are doing your first jobs, the business expenses will be state. This fee should be between $0-$150 depending
covered and you’ll be earning profit on where you live. This is a requirement and something
you’ll have to pay to register your business.
These are the costs required before you can do your first jobs.
BANK ACCOUNT SET UP
Range: $0-$200
Depending on the relationship you have with your
bank, you may need to deposit a small amount of
money to open a new account. The bank won’t charge
you to open an account, they might just require a small
deposit into the account.
LICENSE
Range: $0-$1,500
Most states don’t require a license. But if your state
does require a license, it should cost less than $1,500.
This is the most expensive I’ve heard of… And if you
are in a state that requires a license, you have a couple
options… You can save up and get the license. Or you
can start your business without a license and sell your
first job without a license. Then use the deposit from
that customer to get your license. Then do the actual
painting once you have your license… Be creative. This
is an example of getting creative!
WORKERS COMPENSATION
Range: $0-$500
You get your workers comp policy from the same
insurance agent as your general liability insurance. But
you can set up your workers comp policy to cost you
$0. You’ll end up “paying” for the policy at the end of
the year when you do an audit… Or you can set it up
to pay $0 for the first 2 months, then start paying once
your business is going. Ask your insurance agent (or the
one I refer you to) to help you with payment structure.
014
EQUIPMENT START UP
Range: $0-$5,000
Please do not buy any equipment. This is one of the COST OVERVIEW
biggest mistakes people make. The only reason you
need equipment is if you are using employees. And
starting your business off with employees makes this a MINIMUM START UP COSTS:
LOT harder… My advice is to follow my teaching and
start with subcontractors. Subcontractors are business $2 5 0
owners who have their own equipment and a lot of
painting experience. This helps you avoid purchasing Business Registration
any equipment, ladders, trucks, sprayers, etc… And Insurance
you also don’t have the pressure of “keeping your Marketing & Sales Materials
employees busy”. You can do a job “here and there” as
you get started.
MAXIMUM START UP COSTS:
MARKETING AND SALES MATERIALS
Range: $100-$500
$1 5 ,0 0 0
This includes the paperwork you should print off to
Nobody should ever start a painting business
start marketing and selling including flyers, estimate
with this much money. You would be very
forms, contracts, and a client manual. This is all
foolish to spend this much money. But it
included in the Painting Business Pro course so you
would include spending money on everything
can simply download, add your logo, and print it off.
listed above… Including the $5,000 spent on
equipment which you DO NOT NEED… And it
INITIAL MARKETING COSTS
would actually make this harder.
Range: $0-$3,000
There are a ton of options for marketing your business
and getting customers. Some of them cost money and
RECOMMENDED START UP COSTS:
some of them don’t cost money. For example, posting
on your Facebook feed, posting on Next Door, going $8 5 0 -$2 3 5 0
door to door, calling real estate agents, or personally
dropping flyers in a neighborhood… This is all free for Business Registration: $50
you to do yourself. Then there are paid options to get Insurance: $150
you customers right called “lead services”. Examples Marketing & Sales Materials: $150
of these are Painter Choice, Thumbtack, Craft Jack, Business Training: $500
etc… If you spend $3,000 on these lead services, Optional: Initial Marketing Costs: $1,500
you’ll get about 50-60 customer leads… More than
enough to start winning jobs!
015
HOW FAST
CAN YOU
MAKE
PROFIT?
016
This is one of the most incredible opportunities in
the painting business… How fast you can start making
profit. (Hint: You can make profit very fast!)
And I hear from people all the time who are asking for
help who have already started their business. And they
have already made a lot of mistakes…
But you are the one who has to take the action.
017
LET‘S
CREATE
YOUR
BUSINESS
GOALS
018
GOAL SETTING EXAMPLE
With any start up business, you should plan on doing
all of the sales and production management yourself.
We call this “Phase 1”. Phase 2 is when you start
hiring other key players like a salesperson (estimator)
and project manager.
SAMPLE GOAL:
Setting your goals is critical. Without goals, you will just end up $50,000 PROFIT IN 6 MONTHS
wherever you end up. With the end in mind, the actions to take Assume: $3,000 job size, 33% profit margin, 25%
now will be obvious. The painting business (the way we have it closing rate
designed) is a beautiful business because of its simplicity. There
are not a lot of numbers or metrics to follow or to track that will Total Revenue Needed = $50,000/.33 = $150,000
lead you to your end goal.
Average job size (assumed) = $3,000
Start by considering what your real goal is. Is it to make as much Total Jobs to book = $150,000/$3,000 = 50 jobs
money as possible? Is it to work as little as possible? Is it to make
money on the side? What is your goal – the end result? What Closing Rate (assumed/targeted) = 25%
is it that you want to fulfill? Do you want to pay off $40,000 of Total Estimates to do = 50/.25 = 200 estimates
debt? Do you want to take an amazing trip around the world for
$10,000? Conversion Rate: Leads to Estimates (assumed/
targeted) = 70%
Most of your goals can be broken down into monetary goals. If Total Leads needed = 200/.7 = 285 leads
something that you are after is freedom of time, it is going to
take a little more work. Your access to having a painting business Note #1: If you are paying for leads through a lead
that earns you a nice living, and does not take a lot of time, is service, the average cost per lead is around $60.
to have sales people working for you and a production manager 285*$60 = $17,100, or about 11% marketing cost.
who manages your production. This will take time. Before you
can delegate the tasks of sales and production, you have to first Note #2: Conversion will vary depending on your
master them yourself. Start there! lead source. The main focus is the number of
estimates. Adjust marketing to meet your estimate
We want to create a model for you to be able to set your own numbers.
goals. First, we will go through an example, and then you can
create your own. Note #3: These assumptions are low. Most painting
contractors average job size is more than $3,000
and their sales rate is more than 25%. As your
job size gets larger and sales rates go up, your
marketing costs go down as a percentage. This
creates better profit %.
# WEEKS = 40
WEEKLY GOALS:
Leads: 285/40 = 7.1 leads per week
Estimates: 200/40 = 5 estimates per week
Jobs: 50/40 = 1.25 jobs booked per week
Revenue: $150,000/40 weeks = $3,750 per week
Rates: 25% closing rate, 70% conversion rate
019
NOW WHAT? Now that you have your goals, you need to create a structure to
fulfill those goals.
What are the actions needed to generate 1.5 jobs per week?
25% closing rate?
1. You’re going to need a professional and proven sales process.
This is covered in depth in the Painting Business Pro course.
2. Be GREAT with people – deliver what people are looking for
and what they want. Care about the customer.
3. Ask for the job. If they don‘t want to sign, ask why. What are
they looking for? Can you deliver on that?
4. When you are starting out – your profit margin is 30-40%,
so you can afford to negotiate a little bit with them early on.
DO NOT TRAIN YOUR SALES PEOPLE THIS WAY. However,
when you are doing estimates yourself, you can negotiate
down if their only concern is price. If that is the only way you
will book the job, you can wiggle down a couple hundred
dollars. Make sure you never estimate for less than a 30%
profit margin.
Now that you have all the actions required, put them into your
schedule, and execute.
020
NOW IT‘S YOUR TURN....
SET YOUR OWN GOALS BELOW:
# Weeks:
Calculate Revenue
Assume 40% profit margin. Calculate Total # of Jobs
0.4 $3000
(Profit) (Revenue)
0.25 0.7
(Jobs) (Estimates)
021
WHAT IF YOU DON‘T
HIT YOUR GOAL?
First, look at what number you didn‘t hit. If you didn‘t hit any
of them, start with marketing. Consult the Painting Business
Pro course, and the trouble shooting guide to increase your
results in that area the next week.
Keep tweaking and improving week over week until you can
consistently hit your goals. Once you can do that, you are
ready to hire people to do it for you.
022
T H E B I G PI CT U R E:
GROWING
YOUR
BUSINESS
023
Starting a painting business is great… But growing your business is
where the real opportunity is.
There are 5 key areas of the business you need to know if you
want to build a successful company.
THE BIG 5
BUSINESS PLANNING & STRATEGY
024
BUSINESS PLANNING
AND STRATEGY
This is how you map out your financials, marketing
plan, sales plan, project management plan, and track
it on a weekly basis. You need to know your numbers
as a business person. This is how you determine what
actions to take next.
For example…
• Who is the first person you should hire in your
business?
• When should you hire that person?
• Who is the second person you should hire?
• When and how do you know you’re ready to hire
that person?
• What jobs are you going to target?
• Which jobs will you avoid and why?
• Will you use subcontractors or employees? Why?
025
MARKETING AND
GENERATING CUSTOMERS
There are endless strategies for marketing your
business and getting customers…
026
PROJECT MANAGEMENT &
DELIVERING ON PROMISES
Now that you have paying customers, how do you
deliver on your promises?
027
TESTIMONIALS
028
TESTIMONIALS FROM FACEBOOK
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