dirtdestroyer
New member
- Jan 8, 2014
- 114
- 0
I'm in that process right now, this being the 2nd business I have launched, the 1st being very successful and my main source of income. I keep reading threads in this section and see quite a few basic questions being asked and figured I would put my 2 cents into a post to help some of these people. Some aspects of business are the same no matter the type of business you are starting.
1) Before you lay a hand on anyones vehicle for a fee, get insurance, you may need liability only or you may need more it depends where you live and how you do business. 1 lawsuit can ruin your financial stability if you do not have said insurance, the ramifacations of legal actions are far reaching ones that you must protect yourself from. If you can put the large assets like your house in the spouses name doing so is smart (for a sole proprietor as your business is not it's own seperate entity).
2) Write a business plan 1st and foremost. The business plan will answer all of your questions about overhead and if a specific amount of business will create sustainability. A business plan is like a roadmap, a good 1 is invaluable, a poor one is useless so put real effort and time into it.
3) Know how to properly track financials, I use quickbooks because it's easy to give to my CPA, it's also the most common software used for this task by small to medium sized businesses.
4) You can't start a small business with high overhead, you will fail. You don't need every toy under the sun to do a good job but as business grows and profit increases some toys are worth the money. When it comes to equipment it is better to buy great once than crap often. Well designed equipment not only lasts longer and takes more abuse without dying, it saves time and frustration though don't forget price does not always dictate quality so ask any questions you have about specific equipment on this forum, It's been helpful when making such decisions for me.
5) Most of the effort of owning your own business is not put towards the main service offered but instead put towards managing the business it's self and networking with others, trying to get the name out there and get customers. The main service in this case detailing is what I'd call the fun part.
6) Don't start a business doing something you don't enjoy doing. If you end up hating what you do, find something else otherwise you will just complain about how bad it is and how others should look elsewhere...in which case so should you.
7) Competition will come and go, never compete on price. When you drive price lower people start expecting you to work for peanuts (people you usually want to avoid). When dealing with affluent clients they will avoid the cheap guy because they know anything that takes real time is not cheap and people undercharging are more likely to cut corners. You are also able to upsell these clients much easier as the cost in relation to the value of their vehicle is a much lower percentage than the cheaper client with a corolla, the guy with the corolla is a hard upsell.
8) Keeping in mind point #7, you don't make any money sitting on your butt. It's better to take on a horrible interior at your going rate then to sit on your butt waiting for an exotic to pull up looking for a correction. New businesses can't be picky in what they detail but price the job according to the time and products you will be putting in.
9) Your website and promotional material need to be checked for spelling and grammar errors before they are published. Errors on a forum like this are fine, I make typos and gramatical errors in posts often but promotional materials are different.
10) Use social media and network with others in the automotive industry, many people check for a facebook page before a dedicated website these days and sometimes a local body shop or mechanic will either need your services or be able to refer people to you.
11) What will make or break a business is you. The advice of others only goes so far. Get out there and work your craft!
That's it for now, I have a little too much time on my hands while recovering from a broken femur.
1) Before you lay a hand on anyones vehicle for a fee, get insurance, you may need liability only or you may need more it depends where you live and how you do business. 1 lawsuit can ruin your financial stability if you do not have said insurance, the ramifacations of legal actions are far reaching ones that you must protect yourself from. If you can put the large assets like your house in the spouses name doing so is smart (for a sole proprietor as your business is not it's own seperate entity).
2) Write a business plan 1st and foremost. The business plan will answer all of your questions about overhead and if a specific amount of business will create sustainability. A business plan is like a roadmap, a good 1 is invaluable, a poor one is useless so put real effort and time into it.
3) Know how to properly track financials, I use quickbooks because it's easy to give to my CPA, it's also the most common software used for this task by small to medium sized businesses.
4) You can't start a small business with high overhead, you will fail. You don't need every toy under the sun to do a good job but as business grows and profit increases some toys are worth the money. When it comes to equipment it is better to buy great once than crap often. Well designed equipment not only lasts longer and takes more abuse without dying, it saves time and frustration though don't forget price does not always dictate quality so ask any questions you have about specific equipment on this forum, It's been helpful when making such decisions for me.
5) Most of the effort of owning your own business is not put towards the main service offered but instead put towards managing the business it's self and networking with others, trying to get the name out there and get customers. The main service in this case detailing is what I'd call the fun part.
6) Don't start a business doing something you don't enjoy doing. If you end up hating what you do, find something else otherwise you will just complain about how bad it is and how others should look elsewhere...in which case so should you.
7) Competition will come and go, never compete on price. When you drive price lower people start expecting you to work for peanuts (people you usually want to avoid). When dealing with affluent clients they will avoid the cheap guy because they know anything that takes real time is not cheap and people undercharging are more likely to cut corners. You are also able to upsell these clients much easier as the cost in relation to the value of their vehicle is a much lower percentage than the cheaper client with a corolla, the guy with the corolla is a hard upsell.
8) Keeping in mind point #7, you don't make any money sitting on your butt. It's better to take on a horrible interior at your going rate then to sit on your butt waiting for an exotic to pull up looking for a correction. New businesses can't be picky in what they detail but price the job according to the time and products you will be putting in.
9) Your website and promotional material need to be checked for spelling and grammar errors before they are published. Errors on a forum like this are fine, I make typos and gramatical errors in posts often but promotional materials are different.
10) Use social media and network with others in the automotive industry, many people check for a facebook page before a dedicated website these days and sometimes a local body shop or mechanic will either need your services or be able to refer people to you.
11) What will make or break a business is you. The advice of others only goes so far. Get out there and work your craft!
That's it for now, I have a little too much time on my hands while recovering from a broken femur.
