Equipment expenses?

thebamboo23 said:
There are a lot of guys off AG boards that are clearing more than 50K a year. Either they have been at this for 10+ years or their shop/business offers waaayyy more than just detailing services.. but again, TIME and EFFORT is what got them there

$15K is unnecessary. Are your plans to open a shop or what? i always advice to be mobile for the first 1 or 2 years as you get your name known around town and build up your skills/experience. youll have almost no overhead which is greaaattttttttttt. You dont need a water tank, generator, pressure washer, etc.. at least for when youre first starting off.

You need to master with what you have and as the jobs increase so will your equipment and prices you charge. you seriously dont need "top of the line" anything when first starting. but also none of that autoparts store products either

Dont get caught up in all the new products and tools that come out on the market. you dont need a $20 wax for daily drivers and a $90 wax for the show cars. thats not how its gonna be in the beginning

What tool, products, and equipment do you currently own?
What are your plans to buy with the loan?
shop or mobile?
what size shop/what mobile vehicle?
what training classes are you gonna attend?
how many full paint corrections have you performed?


There are TONS of great threads of starting a business. Not only on AG but other detailing boards as well. go through all of them. even if theyre 4 years old
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Well, I plan to star mobile and would love for it to build to a shop years down the road. The convenience of being mobile is awesome but I think I will look forward to having a brick and mortar shop to go to.

As for equipment, I currently have a lot of your basic essentials. Griot's 6in, various compounds, polishes, sealants, waxes, pretty hefty supply of microfibers, vaccum etc.

I know it's everyone's dream, but I want my image to say a lot. With the loans I would like to get a computer, paint depth gauge, iPad, quality camera, steamer, extractor, a Rupes, generator, water tank and custom business attire. Would need a website designed which I know isn't cheap. My college roommate was a computer science major.

I am considering selling my Trailblazer SS to purchase a fairly modern, nice Ford E-250 rather than purchase a higher mileage one and avoid as many repair contingencies as possible. With the equity I have in that, I could cover quite a large portion of my expenses. But like the poster above you mentioned, I don't want to liquidate my savings or cash reserves if I can help it. That's why I prefer loans.

As for training and education, I am reading and re-reading Mike Phillips' book as well as Renny Doyle's. I plan to attend one of AG's detailing boot camps next year and would love to fly out to CA for some training with Renny or the Chemical Guys. Might try to take some training on PDR, windshield repair, and window tinting. I also read every post I can get my hands on on here to gather knowledge because I never know when I might be faced with something out on the job that I will know how to approach because I read some posts about it 3 years ago :D

I'm also trying to get my hands on as many friends and family's cars as possible. Fortunately, I am connected to quite a few individuals with impressive car collections and have considering asking them to let me do a little work, even if it's for free, to expand my experience base and get some quality pictures with the cars :)
 
dcjredline said:
Start small and stay away from debt... that is the best way to have a successful business. I always recommend this book to people trying to start up a business.

Dave Ramseys Entreleadership. its on sale right now for $10 EntreLeadership
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:iagree:

Especially if you are starting out part time. Having to make monthly payments on a part time income can be difficult. I started part time, and even without any debt, I hardly paid myself anything for years, just reinvesting in my business.

Also before moving to a bigger city be sure to research the detailers that are there & figure out how you will be different & what type of clients you will market to.

Best wishes!
 
jta98z said:
Hey guys. I'm drafting a business plan and have a question. I'm currently working full time in a corporate job, but really feel that my passion lies within automobiles.
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I am in a similar position as you are, working in IT and trying to do something I love part time (maybe full time?).

Have you tried going to a bank to open a business account yet? I would imagine you would be able to get a business credit line opened up no problem, assuming your personal credit is good.

My bank gave me a good sized credit line for my business to start with when I opened my biz account. But, I have been using money from another side business to fund this one initially. I have spent well under $1k on supplies/tools so far, not counting the stuff I already had.

Do you have $$ from savings or something to fund the start up costs? Maybe ask for family/friend donations for capital? Loans/credit are not bad as long as you have a plan for paying them back.

jta98z said:
I need to do a bit more research it seems. As much as I love this, I can't support a family on 20k a year. I know it's not all about money but I need to find some realistic income expectations.
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I am also right here with you. $20k doesn't sound very realistic, that is like $11 an hour. But, I also understand business in detailing is not a constant like a typical 40hr a week job.

For me, I am starting very small and slow as a part time business. I have some goals set for the next year and will evaluate where I am at the end of the year. At that point I will determine if it is logical to go full time or not.

Hope that helps and good luck!
 
Here is what I can suggest to you.

Make sure you have enough Equipment to handle any job you are planning to do. Don't buy more than that at first.

If you go mobile, your most expensive piece of hardware will be your truck. If you can start without one (by using your personnal car for instance) that would be a way to save money. If you go fixed location then your rent and everything that comes with the fixed location will be a huge investment, I would not start that way.

I am in a similar situation you are, I am just starting out. So far I have spent about 1500$ on products and Equipment, maybe 2K have not calculated it yet. I spent maybe 400$ on advertisement material (uniforms, business cards and the like). I already had a web hosting plan for my poker league so I did not have to spend for that but if I had not that would have been an extra 100$ for a year (or so).

I have pretty much everything I need. Only thing I am missing is a paint gauge, an industrial or commercial steamer (I am using a low cost one from Walmart) and a commercial water extractor (using a Bisell right now). So depending how well equiped you wanna start I would say 2K to 4K should cover everything.

I would not take a loan to start, especially if you have a good income right now, I would make the transition slowly re-investing revenues into items you still need.

The truck is something I am planning to get in the spring. I started too late in the season to be Worth getting one since I won't be doing much detailing during winter. But since the truck is a moving billboard for your business, I think it's Worth getting one even if I don't have a client list yet. Just make sure that it looks really good and that it showcases your business. Renny talks about them in his book. I decided against full wrap to start with because it will run me around 2K to do one and I don't have that kind of money to spend on it yet. But down the road I want to have one since it's really impressive looking and I believe it makes a better presentation to potential clients.
 
Salary is complicated to calculate. I will throw some numbers out so we can get an idea.

First problem is that when you start off it's hard to get appointments so you have a lot of time you are not working. So let's say you have been doing this a while (3 years or something) and you can get booked for a full work week of 35 hours.

I think that 40$ an hour is a good price for detailing. I know some charge more and some charge less but unless you are at a point where your reputation and your clients allow you to charge more, it's a good ballpark salary.

So if you charge 40$ per hour and work 35 hours a week that's 1400$ a week gross, or 72K a year roughtly.

You have to calculate expenses out of that for products used, gas for the truck and all the other expenses but you can make a very decent living doing this.
 
When you consider vacation time, no shows, slow weeks, that $72k turns into 50k really quick, but if you are really good at upselling coatings, and add ons you can make it back.

I've found that people will only pay so much for a detail. The $300 threshold is hard to get past. Doable, but difficult at first. That said, I think people are willing to pay a little extra if they feel like (and genuinely are) getting something unique like a high quality coating or fabric protectant. Coatings and ad ons can get you in the 400-$500 range and beyond pretty quick.
 
You don't need much to start a shop $9000 tops. We started ours with $3k and now gross over $30k a month but we live in Hawaii with tons of cars and nowhere to wash them.
 
I bought a cheap DA and moved up to better machines. I use a cheap extractor and steamer. The technique is what u need. If there is a will there is a way. Get a few products that are all around good and inexpensive I.E. APC, Ultimate Compound and Polish, ONR, Folex, NU FINISH, stuff like these will not break u and can be found at most local stores. Watch YOUTUBE videos like that's ur TV. Read the info on the forums here and anywhere u can. Stop by local Detailers and ask questions as if u were a prospective customer so u can learn how they do things. U may learn what or what not to do and offer and what the market is. Wait for sales on detailing sites like AGO,...BLACK FRIDAY IS A HUGE ONE right around the corner. Get money in ur pocket so u can reward yourself and not feel as if ur just working for nothing. Take ur girl out once in a while to keep her interests up. Speak to every1 u can and tell them who u are and what u do. WORD OF MOUTH. Don't GIVE UP!!! Good luck and its not easy but if it were, every1 would do it.
 
Loans are bad, just having a plan doesn't cut it! Plans change, things happen and having debt/loans over your head those banks WONT CARE. Please, please do yourself a favor and don't use debt.
 
jta98z said:
Well, I plan to star mobile and would love for it to build to a shop years down the road. The convenience of being mobile is awesome but I think I will look forward to having a brick and mortar shop to go to.

As for equipment, I currently have a lot of your basic essentials. Griot's 6in, various compounds, polishes, sealants, waxes, pretty hefty supply of microfibers, vaccum etc.

I know it's everyone's dream, but I want my image to say a lot. With the loans I would like to get a computer what kind of computer?, paint depth gauge the highline II runs around $300. you seriously dont need the super expensive one that reads the individual layers, iPad, quality camera, steamer, extractor, a Rupes why? GG6 will do just as fine., generator, water tank there are A class detailers out there who use customers water/electricity with 0 problems., and custom business attire. i ordered 10 hanes comfort shirts with my logo in front and logo+website on the back= $230. if you want a polo and all this other fancy stuff than its overkill. Would need a website designed which I know isn't cheap most guys here make their own website. once things pick up then theyll get it professionally made. My college roommate was a computer science major.

I am considering selling my Trailblazer SS to purchase a fairly modern, nice Ford E-250 rather than purchase a higher mileage one and avoid as many repair contingencies as possible. No, you dont need a huge set up starting off. MrSparkle works out of his 2009 Toyota Tacoma and it WORKS (i sent you a pm with the link). look into volvo v40 or v70. they have longggg rear ends. able to fit a looottttt of stuff. Not to mention Auto Finesse started off in a Volvo as well (way before they started their own product line). TLC Auto Detail works mobile from his Nissan Cube. Autolavish are nationally known and they rely on customers water/electricity. they use a dually to get around. nothing fancy. their proven work and honesty is what makes customers go to them. With the equity I have in that, I could cover quite a large portion of my expenses. But like the poster above you mentioned, I don't want to liquidate my savings or cash reserves if I can help it. That's why I prefer loans.

As for training and education, I am reading and re-reading Mike Phillips' book as well as Renny Doyle's. Read, make a check list order on a full paint correction to go step by step. work on a car for free and spend x amount of hours going through all the steps. come back on the boards and ask for feedback. repeat 10 times. I plan to attend one of AG's detailing boot camps next year and would love to fly out to CA for some training with Renny or the Chemical Guys. Both these trainings cost a pretty penny Might try to take some training on PDR, windshield repair, and window tinting. baby steps. master paint correctino and interior cleaning.. then move on to other services I also read every post I can get my hands on on here to gather knowledge because I never know when I might be faced with something out on the job that I will know how to approach because I read some posts about it 3 years ago :D

I'm also trying to get my hands on as many friends and family's cars as possible. Fortunately, I am connected to quite a few individuals with impressive car collections and have considering asking them to let me do a little work, even if it's for free, to expand my experience base and get some quality pictures with the cars :) learning to detail is just like anything else. start off slow and easy. you need to work yourself up from daily drivers, to weekend cars, to exotic, and so on. at least in my opinion. its a progression, and trying to go to the very top as fast as possible isnt always the best way to do things
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my .02
 
I am in a similar situation myself. I will be retiring from 23 years of Army service to this great country. I have been detailing for about 20 years and have been doing it part time which has allowed me experience and the ability to buy equipment needed. I will be fortunate to have my pention but I plsn on taking out a loan to help with caring cost. I will use the VA for this. I have been learning all about add ons and trying to master them. I can tell I have fear but I am eager to start because is something I really love to do. I would suggest add ons, add on, add ons. It will help bring in additional income. I would try to push head light restoration cuz it can be fairly quick and good income. I enjoy reading all the advice so keeo it coming please. I also ask what are some unexpected things to happen to you that you may not have anticipated and what is a must have in the business not including buffers.

Sent from my SAMSUNG-SGH-I317 using AG Online
 
interesting thread. im kind of in the same situation. got layed off from my previous job and ive picked up this awesome hobby of detailing cars. ive done some cars.. mostly family and friends. im not saying im an expert but my family and friends have been very impressed with the work ive done in their cars. ive watched alot of youtube.. like my tv.. like someone mentioined.. and have applied it in the cars ive worked on so far learned.this forum has been very helpfull too. i got a pc7424 , pads, compounds, polishes and waxes. your basic stuff..ive been thinking about a name and getting the dba license here in miami. the only thing thats setting me back is a work truck. i have a honda accord now, and ive read people saying theyve worked out of sendans .. but i really dont see how. is it really possible? do you really need a water tank when youre trying to get your name out there and basicly doing work on the low side of $?? i really want to start with a van, and i know a person that can get it from auctions cheap, rebuilt title with little fixable damages.. but that will be untill income tax season comes and i can perhaps throw money down for the van. like i mentioned, im out of work now, and im going crazy.
 
Small businesses fail because they fail to provide enough income to support the business and the family. How much money can you make? Do some math, if you averaged $25 per hour, a 40 hour week will gross you $1000, or $52000 per year (assuming you have enough business to keep you busy for 40 hrs). Pay taxes, equipment, insurance etc and that quickly drops to much less (insurance not only for the business in case something happens to a customers car, but also health insurance for your family, a unfortunate medical emergency can kill a business in a heartbeat, never leave your family in that situation). If you try to go with a fixed sight, a decent shop/location is not cheap=less profit. Now put 50% back into the business...I think you see where I'm going here. So $20K net per year in the beginning isn't an unrealistic number. As you grow and add experience/skill/add on processes you will be able to charge more. If you are reading Renny's book, you have also noticed that he points out several times that location will play a big factor in what you can charge. What is the going rate for details in the area you are looking to move?

My opinion, putting a financial strain on you and your family is the quickest way to end a business. If you really want this to work, start with a full time night job. You will have days and weekends. Is it tough to start a business while working a full time job, of course, but if you really want it to happen it's easier with a steady/sufficient income. This will also allow you to put all of the money you earn from detailing back into the business. As you become more successful, you can cut back to a part time job when your business can support it.

To begin with, you will most likely be doing a lot of daily drivers with a one step process, you can do a car during the day before you go to your night job and easily knock one or two out on a weekend. If you get a bigger job that requires a 3 step process, that is a weekend job for sure. If you focus on DDs with a one step process you will not need as much in terms of start up equipment. Things like a good steam cleaner (good/not a $100 ass pain) can come with time, you don't need it to start. Check craigslist, it's full of equipment from people who spent a lot of money for start up only to find that this is not what they want/can do for a living. Upgrade when you can afford it. Don't take out any loans or use credit cards and put yourself in debt before you even start.
 
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