Sustainable Business

kdubski

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How many of you guys on here have a crew working that doesn't need to be watched over at every second? If yes, how did you do it?

I just graduated college and parted ways with my business that kept me busy (~50 cars annually). I miss it dearly and I still have a lot of business that I could take if I wanted to. A lot of my former clients haven't transitioned to anyone else.

I am thinking of registering as an LLC, hiring 2 guys as contractors, training them on a weekend, and letting them work out of my driveway when I am at work. Also, strongly considering a commission for them if they bring in work.
 
What would happen if you trained them the right way and then once they get familiar with your clients and build a relationship with them since they are the actual people taking care of the vehicles and they end up branching off from you and taking those clients with them?
 
What would happen if you trained them the right way and then once they get familiar with your clients and build a relationship with them since they are the actual people taking care of the vehicles and they end up branching off from you and taking those clients with them?


A non-compete clause would take care of that headache
 
Great! I figured you already had that figured out, i just wanted to put my two cents worth in. I do not comment much because i am still learning everything and my input would be pointless. So when i seen this post i thought to myself, "hey i can actually have an opion on this one" hahaha
 
Although I do not detail anymore I run a business as a contractor. You will never have the same quality using employees. Sorry but nobody will care as much as you do. My family has been running a business for 70 years with employees and I will say that is always a pain in the ass. Employees will botch up jobs, and ruin and waste your equipment and supplies. Although you can make money with employees it does come at a cost

I guarantee you that it will take hiring at least seven different people before you find one that is a good fit for your business


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Let me give you an example of what employees do. While transitioning away from detailing I had the same thought as you. I had my friend who was out of work detail a customers car using my equipment. I figured he could earn some money and I can get a cut of the cash by hustling the job. When I got all of my stuff back I realize that my mytee hp60 extractor was rolling funny, upon inspection the solid rubber wheels were completely flat spotted, ground down flat from him leaving the foot brake on and dragging it around probably by yanking the hose on the concrete driveway


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Id say don't let the horror stories of "bad employees" scare you. I was that guy before, thought that I'd never find "good help". Thought that "If you want something done right, you do it yourself"....and then i moved into a shop.

When I moved into a shop I started realizing very quickly that it was a lot different than a mobile or work from home type of set up. Business was growing quickly and even though there were two of us, the number of responsibilities was also growing. The number of hours I was putting in and the tax I was putting on my body was also adding up - so I decided to look to hire.

The first 2-3 people we hired didn't work out and that was due more so to my poor choice than anything else (which is a responsibility I feel a lot of employers avoid taking). It was also due to the fact that TEACHING someone is a totally different skill set than DOING it yourself. However, just like with detailing, I learned. I learned how to look for the right people, to not judge people by age and experience (actually young, unexperienced guys have been my go to with great luck so far) and I learned how to take a step back, allow them to learn but also constructively criticize when needed. I do also however give praise when deserved as well.

This has put my business on a totally new course. I still take a manager's roll of doing a final inspection of vehicles before returning...and even then once and a while things get missed. Small, but still it happens. Don't let that detour you though. Fix the problem, learn from it and then improve and continue.

For ME, it has allowed me to focus on so many other things that really needed my attention (marketing, finances, expanding, adding on other services and so on). It does come with its own set of new things to have to handle, but you have to realized that and deal with it when it happens. I love my guys and I deal with them on both a level of employee/employer as well as mentor. You do need a plan though...a system in place that you can teach them....a check list for quality and of course the right guys to accomplish that for you.
 
What would happen if you trained them the right way and then once they get familiar with your clients and build a relationship with them since they are the actual people taking care of the vehicles and they end up branching off from you and taking those clients with them?

Exactly detail business is very hard to scale with trying to find employees who have a passion for the job.Very hard to sell as well.
 
Anyone willing to take that deal will not be the kind of hardworking long term employee your looking for. Seems maybe some younger kids would be willing to work in your driveway but nobody actually looking to make a living.
 
Anyone willing to take that deal will not be the kind of hardworking long term employee your looking for. Seems maybe some younger kids would be willing to work in your driveway but nobody actually looking to make a living.

Pretty much.

And, about the no compete clause, that's a college student talking. As a small business (Well, actually micro small compared to the range of businesses classified as small), you probably couldn't afford to legally enforce it. If you could afford it, no way you could justify it economically. But assume you could and choose to whether it was financially prudent or not. What are you going to do when the other side raises the issue of your contract being void because you're running an illegal business out of your residence?
 
One more thing. Maybe Will or his sister would like to weigh in on how well they think a business that requires this level of skill, quality and liability would do being run by basically an absentee owner.

Not trying to bust on you OP as much as interject a bit of reality.
 
I would like to throw in a different point of view. I am currently toying with the idea of doing the same thing (well pretty close to the same thing). My brother in law is interested in the industry and is in college so he would be good additional labor and I am looking to create a small business to create some additional income on the side. A little background on me, I have lived and breathed the air conditioning industry since I was a little kid. I started working in my dads shop when I was 12 and worked every position up to General Manager by the age of 21. Since then I have moved to a new city and am Vice President of Consumer Services with a very large state wide air conditioning company based in Orlando. In my state (Florida) the number of small A/C companies outnumber the large ones. To get into the A/C industry all it takes is some tools, a truck, some insurance and license (hopefully) and a phone number. The entry barrier is extremely low which is why there are so many people in the industry.

The detailing business is the same in this respect and the same argument can be made in A/C as many of you have made in this thread. If your service tech or installer is doing all the work, signs the customer up for the maintenance and is the one the customer sees then what stops them from taking those customers and starting their own business? The answer is a lot of things; The risk, the capital (even with the low cost to start), the confidence, the ability to answer phones, schedule, perform and keep customers happy, and the biggest one is THEY are now responsible for the number of calls they get per day, not someone else. I could continue on with the list but there is a reason that everyone doesn't own a business and it ultimately comes down to the know-how. Running a business properly is as important as actually detailing the car (or fixing/replacing their A/C system) and not everyone can do that.

The kind of detailing company I am starting will be like most, a mobile detailing company that will at first focus on quantity vs quality (by quality I mean high end details). The areas that I think I will differ is that I will find the labor that will fit with what I am looking to do (it will probably take me quite a few candidates) and find someone that is truly passionate about cars and taking care of them. The way you keep them interested and engaged and take the worry away of having them steal your customers, or money for that matter, is by making them a part of the company. The right employee with me will have an extremely attractive compensation package that will have a generous hourly compensation as well as a large amount of bonus or "spiff" opportunities that will reward them handsomely. The last piece will be a very upfront conversation with clear expectations from the beginning of how I would like to see this going and how they can work their way into having an ownership of the company.

This approach will take the risk of them taking my customers and running off the table, it reduces the risk or chances of bad quality work being performed (lets face it, no matter what, you will have mistakes and, unhappy customers are a part of customer service) and it helps me find a long term partner. I know this approach is not for everyone and certainly does not seem to be common. If my cash flow reports and forecasts are correct, this person may very well make more money than me in the first 12 months but I am willing to do that as an investment in the future.

Also, I have a fairly comprehensive marketing plan to acquire and retain customers. Again, this (if I choose to do it) will be my first time in the detailing industry but not my first time running a company, marketing, acquiring and retaining talent and growing a successful company.

Just my .02 on the topic. Might be a bit out there but it is what I am considering.

Glad to be a part of the group!
 
Would love to talk about your comprehensive marketing plan, PM me if you're free
 
I've only owned a tunnel car wash. What I did was what every other wash I worked or studied did. I designated a manager. I trained him, and observed him training others. I've even had a peer go through the wash to get his feed back.

Obviously, the most ideal situation is to be present. You'd be surprised how much morale is affected by the presence of "the boss". It's almost as of they feel more secure. At least I did when I operated in a managerial capacity. As an owner, I never knew...

You want to have someone who can operate the production in your absence. They need to know YOUR process, and teach it to the crew. They need to have confidence in their skill, and that they can understand/replicate/teach what you taught them. You also want to be open to their ideas, but be ready to state your reason for doing things your way.

My opinion is that they need to have a clear title that designates his level of importance to the company. This individual should also be compensated accordingly. The manager has to have incentive to maintain his job. Otherwise the temptation to start their own business and find their way around a non-compete could come back to bite ya.

Both of the most successful detail shops in the metro area are structured similarly. They do excellent business, and a stellar reputation in town.

I say give it a shot, and best of luck!
 
Pretty much.

And, about the no compete clause, that's a college student talking. As a small business (Well, actually micro small compared to the range of businesses classified as small), you probably couldn't afford to legally enforce it. If you could afford it, no way you could justify it economically. But assume you could and choose to whether it was financially prudent or not. What are you going to do when the other side raises the issue of your contract being void because you're running an illegal business out of your residence?

I was in a situation where I signed a non-compete contract and it felt like a prison sentence. I spoke with two attorneys and they told me that it is enforceable but rarely does the arbitrator rule in favor of the plaintiff. If the defendant was a former partner that had access to financial records, then the arbitrator will probably rule that it would be harmful to the business. Large companies use the non-compete as a scare tactic. Most arbitrators will rule in favor of the working slob who is just out to make a living like a salesman, technician or detailer.
 
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