Need business advice

DJsDetails

DJsDetails

New member
So business is booming and I just cant keep up with the work. I know there is so much more capital I could chase down if I had the time. I've built a good reputation in my area and have the ability to grow but I need to catch up with the legal aspect of the business. I need to hire but I am cautious to move forward without setting up every factor of my company legitimately first. Another important part is that I'm a full time student wanting to step back. So, to wrap the idea up, I need to setup the company properly and hire someone who can run it effectively for me while I focus on college; there's money to be made in this for me so I'm not going to just walk away.

I do have a business license. I will admit that I do not know how to file the sole prop. correctly as far as taxes. I will seek out a CPA through one of the bartering companies I am joined with promptly; I have a plan for that at least :rockon

Next aspect I need to tackle is properly setting up C.Y.A. to protect me and have my company ready to even bring on an employee. Do any of y'all have an idea of where to start or who I can consult locally? How much do business consultants charge and is it necessary? I've carried insurance off and on but have never needed it. I know its an absolute must when I bring on employees but what kind and how much is appropriate? Also, how about social security, potential to have to pay unemployment, and what other cost could I face? How else should I protect myself and what else do I need to do?

Then I need to find someone who I can bring on, train, and hopefully make a manager or partner I can trust to be effective and not run the company into the ground. I want to keep ownership, but what do I need to do so that I can step back from it a bit? How have y'all found reliable employees? I need to focus on my college degree as I do not plan on doing this the rest of my life. Again, not looking to sell the company, just want to step back from laboring.

For those of you who are successfully growing a company, and not so much for the hobbyists, how are you keeping your books? I know my methods are very lax and I would like to change this; I just need to know what is too much/too little.

I've researched a lot of this online but I'd like to hear it directly from those who are successfully in the profession. Currently I feel yall are the best source. Thank you for any suggestions guys, your input is definitely valued :yourrock
 
A difficult situation indeed.

It is "your" reputation that is bringing you the business. If you are not doing the work there is a risk of quality dropping off. Training someone to operate and manage your business will take time and money and carry with it risks. What will you do if, in the middle of a semester, that person quits or decides to start their own business? You will possibly have to fold the business anyway and/or they may take a number of your clients.

You are talking about a lot of money and headaches just to get to the point of being able to step back. Do you plan to still do a little detailing on the weekends or vacations? You might want to consider just doing what you can when you can. Set up a good relationship with another local detailer who you are comfortable referring people to for those who aren't able to wait for you to be available.

Proceed with caution. Managing a business takes a huge time commitment. It is not like being a silent partner.
 
First thing is you'll need and EIN if you plan on having emplyee's. I would most definitely structure as a LLC with emplyee's. To be honest you can set this up your self and file all the paperwork through the IRS.

Insurance definitely!

A separate checking account is a must (preferably with the new EIN)

If I was in your shoes I would consult with a business attorney and tell them your plans. The fees to have them set everything up (LLC) are minimal compared to missing something. Having employees changes things a little.

A CPA will be able to coach you on what you need to do to make their job easier and save some money bookkeeping wise. You will have to chose a cash method(easier)or acrual(better projections) of accounting. They can also instruct you how to deal with the costs associated with employees.

I too am thinking of growth. Right now by myself the books are not to hard to keep through "DOME" software. I just give the reports to my tax adviser/preparer. All receipts are copied/categorized and any checks written are copied/catorgarized for his review.

Best of luck. This is just some of the basics. You can set up an appointment with a SCORE representative in your area. It is free.
They are retired small business owners who counsel up and coming small business owners.
 
Thanks for the help guys. I don't plan on doing anything more than my personal cars in the future (2+ years down the road) labor-wise. The degree I'm seeking will pay nicely, I just have to get to that point. I just don't want to see this current venture pitfall when I know it could easily become something much larger than it is now.

I do have an EIN established along with a separate business checking/credit accounts. I looked up SCORE and it is definitely a resource; thanks for the advice. Meeting with a CPA early next week
 
Concours.John said:
First thing is you'll need and EIN if you plan on having emplyee's. I would most definitely structure as a LLC with emplyee's. To be honest you can set this up your self and file all the paperwork through the IRS.

Insurance definitely!

A separate checking account is a must (preferably with the new EIN)

If I was in your shoes I would consult with a business attorney and tell them your plans. The fees to have them set everything up (LLC) are minimal compared to missing something. Having employees changes things a little.

A CPA will be able to coach you on what you need to do to make their job easier and save some money bookkeeping wise. You will have to chose a cash method(easier)or acrual(better projections) of accounting. They can also instruct you how to deal with the costs associated with employees.

I too am thinking of growth. Right now by myself the books are not to hard to keep through "DOME" software. I just give the reports to my tax adviser/preparer. All receipts are copied/categorized and any checks written are copied/catorgarized for his review.

Best of luck. This is just some of the basics. You can set up an appointment with a SCORE representative in your area. It is free.
They are retired small business owners who counsel up and coming small business owners.
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This is solid advice! Taking your business to the next level is a much different than just finding cars for detailing and building a good customer list.
 
You're not going to find anyone that will run your business as well as you have. If your not around 24/7 the business will fold up like a cheap suit
 
Trouble said:
You're not going to find anyone that will run your business as well as you have. If your not around 24/7 the business will fold up like a cheap suit
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Oh Trouble............dont be so negative!!! That person may be hard to find but it is not an impossible to find someone capable.:bigups
 
ca.detailchick said:
Oh Trouble............dont be so negative!!! That person may be hard to find but it is not an impossible to find someone capable.:bigups
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For any other business then this one that might work, but not this business. If a person has what it takes to run a business why in the world would they want to give you money for nothing?

Nah, this detailing thing is NUTS! What other business has customers open their own accounts?
 
Trouble said:
For any other business then this one that might work, but not this business. If a person has what it takes to run a business why in the world would they want to give you money for nothing?

QUOTE]
Lets see ,in this economy .........someone whos out of work and wants a job!

Never say never!Possibility always exist !
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ca.detailchick said:
Trouble said:
For any other business then this one that might work, but not this business. If a person has what it takes to run a business why in the world would they want to give you money for nothing?

QUOTE]
Lets see ,in this economy .........someone whos out of work and wants a job!

Never say never!Possibility always exist !
Click to expand...

Other then Mel Craig I've never heard of anyone successfully selling their detailing business. Everyone has big plans but nothing ever transpires. Thats not by accident.

This business is 95% labor 5% sales. When you play out they'll find another mule to pull the wagon.
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Trouble said:
ca.detailchick said:
Other then Mel Craig I've never heard of anyone successfully selling their detailing business. .
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I know of someone who did.

But thats not what we are talking about. He wants to hire employees and someone to manage his business.

Ive had people tell me I was going to fail or" not make it "in 2 businesses
and I was successful in both .

Its not a good thing to tell people they are going to fail!

No one but God knows that for sure and I dont think you qualify as God, Trouble.:D
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i think we'll take this from rzatch :D [ame=http://www.youtube.com/watch?v=KuStsFW4EmQ&feature=related]Kelly's Heroes Oddball - Negative Waves - YouTube[/ame]
 
Trouble said:
ca.detailchick said:
Other then Mel Craig I've never heard of anyone successfully selling their detailing business. Everyone has big plans but nothing ever transpires. Thats not by accident.

This business is 95% labor 5% sales. When you play out they'll find another mule to pull the wagon.
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Where I can agree that detailing is a very physical job, the 5% marketing is WAY off. I've made a career in sales & marketing helping lots of companies to penetrate new markets and grow revenue. From companies that are both manufactures to services level.

Whether you have a fixed location or mobile biz, you have to budget for advertizing. 5% of your giving income maybe what you can afford in the start, but certainly not 5% of your time.

On the sale of a detail business, I know of two in my area that have been sold and both are still going very strong. It depends on the strength of the business (customer base) and how the transition is handled. This is no different than selling any other service company, the deal has to be handled professional manner.
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Lets let it all hash out and see who was right and who is wrong

OP....If I were you I would keep a handful of your very best customers and tell the rest to hit the bricks. Best of luck in your education!
 
Trouble..........its not that I dont see your points and I agree what your saying could happen .


I would think you of all people should think anything is possible.;)

Im still trying to figure you out!:D
 
ca.detailchick said:
Trouble..........its not that I dont see your points and I agree what your saying could happen .


I would think you of all people should think anything is possible.;)

Im still trying to figure you out!:D
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I know it could happen, but it won't. Maybe I'm wrong, but I doubt it

The business would have to be grossing at least a half million dollars to even consider it

When you figure me out let me know :rockon
 
:)If you have any general business question, or retirement planning let me know. I am in Finance and know a little bit about a business:)
 
While I can agree with where your going...

I can honestly say there are detailers making over 50k and they are the employees of an outfit. If it isn't right now grossing over 7figures a year revenue it will be. I know this personally not through the grapevine.

The vehicles done will never be posted on a forum but are at every major Concours winning. I know because I am in this circle.
 
It would be very tough to pay someone in this business over 50k to clean and polish cars. What is the name of the company you work for. I would like to learn more about it. detailing cars is an unskilled labor job and these generally pay poorly. doing it part time for some pocket cash it's not that bad. My helper enjoys working with me but he's only a high school kid. He says I pay more than double what any of his buddies make. I could easily replace him he just does what I tell him to do. I'm not sure why any business owner would be paying over 50k when he could easily find someone to do the work for far less.
 
rustytruck said:
It would be very tough to pay someone in this business over 50k to clean and polish cars. What is the name of the company you work for. I would like to learn more about it. detailing cars is an unskilled labor job and these generally pay poorly. doing it part time for some pocket cash it's not that bad. My helper enjoys working with me but he's only a high school kid. He says I pay more than double what any of his buddies make. I could easily replace him he just does what I tell him to do. I'm not sure why any business owner would be paying over 50k when he could easily find someone to do the work for far less.
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I work for myself and deal mostly with local collections. I'm referring to an exclusive high end Concours representation and detailing outfit. When you have 4 or more vehicles at every Concours in the nation plus hold the most exclusive collections this is very possible. It does require manpower and pay to compensate for all the travel/loyalty to keep talent trustworthy of the type of vehicles being worked on (a mistake is thousands if not tens of thousands). This type of organization is built solely on the trust of the person in charge. It is not in any way a typical detail operation. Hand selecting the cream of the crop before they go off on their own makes the difference. To do this it also has to be muli state located. Some of the largest collections most only know of a few vehicles. It goes the same for the guys doing them. Respect has to be earned by major collectors, restoration giants, Car selection judges, chairmen of Concours events, and publishers. It takes years to get there once in the loop.

It's the nature of the game. The most exclusive collections are kept exclusive. Although it would be great for a resume you are under obligation of nondisclosure. It's really as far as I can go. I just wanted to say it IS possible and happening.
 
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