The opportunity is here! For me..

david001wj

david001wj

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To start:
Me and a good friend of mine have been partners for almost 5 years now with our homebase detail company. We live in a small city of 50000+ habitants. I came across a deal that seem very legit.

The oppotunity:
The only deatail shop in town (I say only! because I don't consider homebase a shop)is up for sale...but the building is a lease. 50'x20' drive through wash bay a 40'x28' dry bay and a 300sqft office and waiting roow with a washroom all of that for 2500CAD/month all included exept phone and internet.

My conserns:
Overhead.
Employees salery/training.
Too much room.
Seting up (painting of floors and walls+more tools and chemicals).
And finally advertising.

With all of that I'am very interessted in moving and growing. I have considered keeping the current company name for all general cleanings and adding our company to it for indepth details. My head, I'm sure is bleading internaly and my brain is about to explode. I need help!!!!

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Maybe you could get a window tinting company to share the space. That's a business that could gain you new customers as well...or add window tinting to your services. Fairly high profit service I believe.
 
Make a business plan. Do SWOT analysis. Figure out fixed/variable costs to determine how much you'll need to make to stay open. Talk to others in Canada who are or have done similar to get their lessons learned and advice. Good luck!
 
DaveT435 said:
Maybe you could get a window tinting company to share the space. That's a business that could gain you new customers as well...or add window tinting to your services. Fairly high profit service I believe.
Click to expand...
I was thinking protecting film.

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Way too much, I can get a shop here in greater Vancouver which has a way higher population for 1400 max and I'm worried that is too much.
 
I wouldn't be comfortable with a 2500 monthly buisness.

A lot of pressure especially your home expenses and living

Even if you make 3k a month that still doesn't cut it. That shop must provide 6k+ in order to turn a profit.

Chemicals
Employees
Electric
Water
Heat
Advertisement
Internet
Phone
Your bills @ home
Your rent/mortgage
Your cell phone bill
Your internet/cable bill
Your heat/water/electric

Its alot .I'm not saying its impossible but its a lot.

I have a mid size shop with not that much overhead and sometimes the bills get over whelming.

Worrying about
2 rents
2 internet and phone bills
2 gas bills
2 electric
1 water bill
Advertisement
Help

You just need to look over everything and not jump into anything quick good luck bro follow your gut and just look over everything
 
There is a space here that I have been looking at (when I drive by) MUCH MUCH smaller than what you are looking at. BUT how I would approach it is this

Lets just say the rent for the place I am seeing is $500 a month...

First question I ask myself is "Have I been making $500 a month for the last 3-4 months"?

NO - Cant afford to open a place yet.
YES - Insurance is $350-400 a year, Have you made $535 a month for the last few months

ETC, ETC, ETC

In my opinion, if I can't afford all the things it takes to open that shop I cant afford to do it.

Im weird and I dont do loans, hate debt after being $52k in debt for a long time (not including my house) and since getting rid of all that weight on my mind every month I VOWED I WOULD NEVER EVER EVER GO BACK INTO DEBT for anything!
 
PFinishDetail said:
Way too much, I can get a shop here in greater Vancouver which has a way higher population for 1400 max and I'm worried that is too much.
Click to expand...
I understand I'm looking at retail like rent here.

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NextLevelDtail said:
I wouldn't be comfortable with a 2500 monthly buisness.

A lot of pressure especially your home expenses and living

Even if you make 3k a month that still doesn't cut it. That shop must provide 6k+ in order to turn a profit.

Chemicals
Employees
Electric
Water
Heat
Advertisement
Internet
Phone
Your bills @ home
Your rent/mortgage
Your cell phone bill
Your internet/cable bill
Your heat/water/electric

Its alot .I'm not saying its impossible but its a lot.

I have a mid size shop with not that much overhead and sometimes the bills get over whelming.

Worrying about
2 rents
2 internet and phone bills
2 gas bills
2 electric
1 water bill
Advertisement
Help

You just need to look over everything and not jump into anything quick good luck bro follow your gut and just look over everything
Click to expand...
True!

We both work full time shift work 4on 5off and average out 2000$/month part time detailling (may to september). I have worked in a porely run shop that averaged 1200$+/day in a vary small building. So I see the potential that this shop has.

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Go for it man. You might regret it if things don't work out, but you will DEFINITELY regret it if you never even try.
 
Sounds like a pretty good opportunity. However, that is a lot of overhead for a two man shop, but it could be done, there's definitely space for expansion if you want to go that route. I just signed a lease on my own shop a few weeks ago, so I know how you're feeling' good luck with the process and keep us posted on how it's going.
 
You could build a shop tailored to your specs for a mortgage much lower than $2500 a month, if you could qualify. It's a long term commitment however and partners is a word that most banks don't like to hear.
 
2500 a month is a lot plus all the extra,if you get one bad week it will be hard to make it up in this business,and the factor is a lease if it doesn't work out it will put a negative stamp on your trw credit report.for it to be logical and profitable you are gonna have to gross at least 150000 at the minimum .50000 pop is really small,but with that it could work are there dealers in the area that you can take a huge bite of there of work.window tinting has a nice profit but reality is how many people tint there windows in Canada.I myself have a great opportunity here in south fla for 500 a month and exposure like crazy on a main road,I just don't want the growing pains and headaches that come along with it.we don't know your financials if you want to try it then do so,don't let someone crush your dreams I just don't like the contractual leasing part,if it fails you will pay for that mistake for a long time.so good luck keep positive and make smart decisions ,see if you can not lease the spot for one year and build it then maybe sign a lease.
 
Thanks all! What I thought was "the opportunity" was not infact it. Like many have said the lease is just too much. On to the next one....

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NextLevelDtail said:
I wouldn't be comfortable with a 2500 monthly buisness.

A lot of pressure especially your home expenses and living

Even if you make 3k a month that still doesn't cut it. That shop must provide 6k+ in order to turn a profit.

Chemicals
Employees
Electric
Water
Heat
Advertisement
Internet
Phone
Your bills @ home
Your rent/mortgage
Your cell phone bill
Your internet/cable bill
Your heat/water/electric

Its alot .I'm not saying its impossible but its a lot.

I have a mid size shop with not that much overhead and sometimes the bills get over whelming.

Worrying about
2 rents
2 internet and phone bills
2 gas bills
2 electric
1 water bill
Advertisement
Help

You just need to look over everything and not jump into anything quick good luck bro follow your gut and just look over everything
Click to expand...
He needs to gross 150000 a year to feed himself his partner and employees and all the extra stuff ,the first year will be tough but can be done,he has to hustle like crazy every single day,and battle the winters there.
 
dcjredline said:
There is a space here that I have been looking at (when I drive by) MUCH MUCH smaller than what you are looking at. BUT how I would approach it is this

Lets just say the rent for the place I am seeing is $500 a month...

First question I ask myself is "Have I been making $500 a month for the last 3-4 months"?

NO - Cant afford to open a place yet.
YES - Insurance is $350-400 a year, Have you made $535 a month for the last few months

ETC, ETC, ETC

In my opinion, if I can't afford all the things it takes to open that shop I cant afford to do it.

Im weird and I dont do loans, hate debt after being $52k in debt for a long time (not including my house) and since getting rid of all that weight on my mind every month I VOWED I WOULD NEVER EVER EVER GO BACK INTO DEBT for anything!
Click to expand...

I'm with you 100%.

I bought an automatic tunnel car wash business in December of 2013. The subsequent winter of 2014 literally put me out of business. The worst winter in 100 years to hit Michigan.

Bankruptcies are a pain in the rear.

I would take working from my garage, with mobile capabilities any day of the week, over trying to operate a stand alone location.

But that's the beauty part of it. Everyone can find a business model that fits their lifestyle.

The best advice my old boss, and good friend told me:
"Be careful what you ask for, you just might get it".

He was right on so many levels....
 
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