Startup Capital Help and Revenue questions

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childers1

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Hello fellow detailers,

I have searched high and low and I research almost daily as I am truly passionate about starting a stand alone detailing shop. My question goes out to those that have opened up their own shop. My plan in the interim is to continue mobile detailing on the weekends until I get everything lined up. I'm curious as to what some of you guys required up front to open up your own shop. I want to do this right and I want it to be the best! So I'm looking to go full throttle. I have my eye on a great location on a 45 MPH road near dealerships (just in case I hit rock bottom and need them), and right beside an O'reilly's. My target market will be just up the road at a new equestrian center that generates tons of traffic. The cost of land is $128,000, excavating and site prep $30,000, building structure roughly $75,000, and other costs suchas inventory, equipment, furnishings, POS system, etc for about $50,000. Is this too much? Is it just right? What did you guys do? Where did you get a loan? Did you use a lot of personal cash?

Another question for those with a standalone shop....

How did you guys do your first year? I've projected to have monthly revenue of about $6000 within a year as a conservative estimate with expenses at $3000. Mortage $2000, utilities $500, and other of about $500. My high end projections have me at about $12,000 a month within a year. Is this feasible with a one man show? Can anyone shed light on how much revenue they were raking in their first year? Worst year? Best year? I would GREATLY appreciate it!

Thank you guys!!!
 
My first question for you is what is your income stream now as a mobile detailer? How many customers are gonna start coming to you and how many are you gonna lose?
 
a few mistakes there: "one man show" , you will burn in no time , your head will spin between mobile and shop and schedule and work......than if you hire add training time and dealing with a variety of characters so add that to initial head spin list
second: before you loan money or "invest" that much money , rent a warehouse for 2-3 cars and test the water.....

yes... on the paper numbers add up , in reality surprises are around the corner.....
 
childers1 said:
Hello fellow detailers,

I have searched high and low and I research almost daily as I am truly passionate about starting a stand alone detailing shop. My question goes out to those that have opened up their own shop. My plan in the interim is to continue mobile detailing on the weekends until I get everything lined up. I'm curious as to what some of you guys required up front to open up your own shop. I want to do this right and I want it to be the best! So I'm looking to go full throttle. I have my eye on a great location on a 45 MPH road near dealerships (just in case I hit rock bottom and need them), and right beside an O'reilly's. My target market will be just up the road at a new equestrian center that generates tons of traffic. The cost of land is $128,000, excavating and site prep $30,000, building structure roughly $75,000, and other costs suchas inventory, equipment, furnishings, POS system, etc for about $50,000. Is this too much? Is it just right? What did you guys do? Where did you get a loan? Did you use a lot of personal cash?

Another question for those with a standalone shop....

How did you guys do your first year? I've projected to have monthly revenue of about $6000 within a year as a conservative estimate with expenses at $3000. Mortage $2000, utilities $500, and other of about $500. My high end projections have me at about $12,000 a month within a year. Is this feasible with a one man show? Can anyone shed light on how much revenue they were raking in their first year? Worst year? Best year? I would GREATLY appreciate it!

Thank you guys!!!
Click to expand...

Recommend you contact your local Small Business Development Center (SBDC) or SCORE (Service Corp of Retired Executives) that partner with the U.S. SBA and provide free consulting advice to small businesses. Most are housed in SBA offices or universities and generally free to the public.
 
I highly agree with Cosmin - you will really see the power of simply renting a garage or warehouse and working out of there. Your costs will stay much much lower and the quality of your workspace wont be drastically different... My 2 cents. If you're focused on getting traffic from the surrounding area I think you may be looking at your lead source in only one way. If you want to chat about this hmu :)
 
Personally, I think you are going way over your head by getting raw land and building something. If you have the cash great, as Mark Twain said invest in land they aren't making anymore. BUT I would lease at a much lower cost, establish your brick and mortar then go for the raw land/building. I would not bank on the local equestarian center for major business, horse people while needing details, don't generally spend big bux because the truck/car is trashed pretty quick. I have a very good friend that is into horses and she has pumped my business with very little success, and these are people who can afford my details.
As far as income, that is difficult for any of us to say. Geographic location plays a huge part. My shop is in Silicon Valley and people here don't blink an eye at a $500 detail.
But keep in mind, my 1300 sq foot 3/2 home is going for $1 million, the location I am in has an average income of $250,000, the neighboring suburb has an average income of $440,000, the other neighboring suburb, where many employees with a bite taken out of a fruit, is $325,000.
Give us a location, $3000 of expenses in my area barely covers my utilities and part of my payroll in the first year. I was trying to do it myself in the beginning and failed miserably.
 
childers1 said:
Hello fellow detailers,

I have searched high and low and I research almost daily as I am truly passionate about starting a stand alone detailing shop. My question goes out to those that have opened up their own shop. My plan in the interim is to continue mobile detailing on the weekends until I get everything lined up. I'm curious as to what some of you guys required up front to open up your own shop. I want to do this right and I want it to be the best! So I'm looking to go full throttle. I have my eye on a great location on a 45 MPH road near dealerships (just in case I hit rock bottom and need them), and right beside an O'reilly's. My target market will be just up the road at a new equestrian center that generates tons of traffic. The cost of land is $128,000, excavating and site prep $30,000, building structure roughly $75,000, and other costs suchas inventory, equipment, furnishings, POS system, etc for about $50,000. Is this too much? Is it just right? What did you guys do? Where did you get a loan? Did you use a lot of personal cash?

Another question for those with a standalone shop....

How did you guys do your first year? I've projected to have monthly revenue of about $6000 within a year as a conservative estimate with expenses at $3000. Mortage $2000, utilities $500, and other of about $500. My high end projections have me at about $12,000 a month within a year. Is this feasible with a one man show? Can anyone shed light on how much revenue they were raking in their first year? Worst year? Best year? I would GREATLY appreciate it!

Thank you guys!!!
Click to expand...

I'm no expert but I think you would be better finding a place to rent for now until you can prove your business will make money.

You want to spend a couple hundred thousand on something that you don't even know will work? Unless you are rich screw that you know how many cars you have to detail to make that back? Especially a 1 man show.
 
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