Got my first round of funding soon..

I

imported_d00t

New member
So I've been detailing as a side business now for almost 2 years, just to keep my hobby afloat. Recently I decided to make something more of it and became more interested in making it a full time job. Well, about three months ago I met a guy whos car I detailed, and he was so impressed with me and my services that he offered to help me out with whatever I needed.



As I have no capital to start with, I needed someone to help with funding my business, and he actually OFFERED this to me, rather than me asking. It seemed too good to be true, but I kept talking to him about it. Sure enough, in a month or so I'll be getting my first few grand to really build up my business.



I have a few of the essentials such as a metabo, menzerna polishes, CCS pads, lusso oro, and your basics for everything else including a pressure washer, towels, etc. I don't feel like listing every product I have, but it's enough to get my side business going, but I want to turn this into "the real deal" and here's where I'm thinking of starting with the first few grand:



Infaratech, more menzerna polishes, some good swissvax/zymol waxes, more pads and towels, maybe the swissvax master kit, cr spotless, some good interior cleaners/protectants (in case customer doesn't want to pay for the swissvax stuff).



What else should I add to my list? I know $3k or so isn't a TON in detailing.. but what's your input? Also, the marketing he's taking care of as far as creating the business cards, getting me my domain, and that stuff.



Forgot to add, located in the SF Bay Area



Any input is greatly appreciated!





Aaron (ACDetailing)
 
Can you use and do you have a rotary? What if you run into a detail that requires a rotary. What if your Metabo craps out, do you have a back up? Not trying to burst your bubble, but some things to think about.
 
I'm not going against your word, I'm just stating what I was told. If you have insight as to what would be a better polisher, please chime in. I'm not discounting your word at all, just misunderstood your statement!
 
i has a hitachi and works great.



that is an awesome opportunity you have been given, make the most of it. i wouldn't spend too much money on high end stuff as most customers wont want to pay for it since they aren't aware of the value. i would stick with good product and maybe a few higher end ones.
 
d00t said:
I'm not going against your word, I'm just stating what I was told. If you have insight as to what would be a better polisher, please chime in. I'm not discounting your word at all, just misunderstood your statement!
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I cant comment on the Metabo as I have no experience with that polisher. If you have corrected lets say a Vette with a lot of swrils with the Metabo within a resonable time then I think youve got yourself covered. If on the other hand it takes you all day instead of a few hours then you are losing money. I dont know your abilities only you know what you can accomplish. Im sure your investor has faith in your abilities or he would not front the money. Be sure to have a solid contract so there is no misunderstanding in the future. Again, the best of luck to you.
 
What I was thinking about getting. Made this for my investor too. Would you take out the swissvax collection to save money? I wanted to get that for those customers who wanted to spend the extra buck for the top of the line, as we are working out deals with higher end dealers in our area, as well as I have good friends who know CEOs etc, who wouldn't mind paying for for the expensive stuff. Let me know if I'm heading in the right direction...



Infaratech 5300- $150

CR Spotless DIC-10- $350

Optimum No Rinse- $40

P21s Auto Wash- $20

3M Backing Plate- $60

CCS 5.5inch pads- $50

CCS 6.5inch pads- $50

CCS Purple Foamed Wool Pad- $10

Menzerna PowerGloss Compound- $30

Menzerna 106fa- $50

Swissvax Master Collection w/ Mystery- $1160

Swissvax Concorso- $240

Ace Powerstick- $273

P21s Wheel Cleaner- $23

Wheel Brush- $25

Black WOW- $25

CG Bare Bones- $30

CG CWG- $20

CG Grime Reaper- $20

CG JETseal109- $40

CG 5050- $50

Aztec Hot Water Extractor- $620

50 16x16 Microfibers- $150

10 24x36 MF Drying-$160

25 Glass towels- $74

10 Foam Applicators- $40

2x Boars hair brush- $50

Zymol duster- $40

Zymol Glasur- $101

Cam spray pressure washer+foamer- $855
 
Is this guy taking a cut, or just lending you the money?

If its the latter, it does sound to good to be true .



How do you know you will be getting the money in a month?



I would strongly advise you to write up some kind of contract, form an LLC and don't forget about insurance. If your partner is providing the funds, doing the marketing and advertising and creating the website, than I imagine you are somewhat disposable.



Good luck!
 
drop the swissvax, find a carpet extractor. Pick up a few tubs of p21s 100%.



Your customers are not going to know the difference about the swissvax vs the p21s 100%, so its not gonna be worth bragging to them that you are using a wax that costs half a years insurance for them.



edit: how are you only spending 100 dollars on pads all together? :confused:



i spend well over 140 on just 7.5 inch pads :confused:
 
Personally, I think you aren't looking at this the right way.



Broadening your supply of products isn't necessarily going to increase your business. Think of the money, if you get it, as a business loan and use more of it towards the business rather than the details. If it were me, I'd probably stop at $500-$750 in supplies and put the rest into licensing/registration, insurance, and advertising. You say you've got most of the high dollar equipment already purchased- so you've got that going for you.



Also leave yourself a safety net, just because you get $3000 doesn't mean you need to spend all $3000. What are the terms of repayment? What happens if you drop $2999 on polishes, pads, and towels but don't pull in any clients or make any money?
 
I don't do this professionally, but I got a similar offer from a friend in the car business. i did 2 of his cars that were for sale and he offered the funding for whatever I needed. I was like "whoa, step back a second". Good to know for later but i wasn't ready to quit my 'day job'.





I agree that, you don't need to rack up products, especially chemicals. I DO think you need supplies such as towels, pads, extractor, PW, brushes etc but I would limit the chemical products to ones that work for you and buy them in bulk. Stay away from the overpriced boutique stuff and stock up stuff that works, easy to use, good results etc.



good luck! sounds like a good opportunity
 
I work in a bank right now, and I have two business bankers working with me right now to help get the ball rolling on everything from contracts, to licensing, to insurance, to permits etc. So that area is covered.



As far as the funding goes. He, much like myself, is part of the on-going gamble of high-risk high-return investments. My company (hell, any detail company) is pretty much high risk/return. The potential is out there, and it's definitely up for grabs, but it's how I go about doing so that will make the difference in if I get the business to me. So once he lends me the money, I don't have a certain time to pay it back, because we're both in it for the long term, not to make a quick buck, because it just won't happen in detailing. So it's going to come down to a certain percentage of what I make, he gets. He'll continue to fund, so the business continues to grow (theoretically) eventually going full mobile with a van 'n all. But we're starting off slow.



As far as "quitting my day job".. not! Got bills to pay for and the business isn't stable enough. I figure I'll start off as the business working around my day job and school. Then as it grows, cutting my hours at work, until eventually I don't need the job, and I can go full time school/detailing.



The pads: I just put the kits in there. I already have a fair amount of pads at home.



Chemicals: So I'll completely drop the swissvax, that's $1200. But I do believe I still need most of those chemicals. If not, what would you guys recommend I take out/replace/keep?



Also, I do agree that I need a cushion, but I just got excited and carried away I guess!



Keep it coming guys, I'm loving the input!



Aaron
 
I agree with dmw - drop the Swissvax.



The most important pieces of equipment are carpet extractor, steamer, back up rotary, generator, water tank etc.



Also use some money for marketing materials - website, bus cards, logo, shirts, fliers, letterhead.



Menzerna, P21s, Swissvax are all good products but will give you less margin if your prices are not high enough. Also... contact Dr. G over at Optimum and get an account setup.



Best of luck!
 
walnuts said:
I agree with dmw - drop the Swissvax.



The most important pieces of equipment are carpet extractor, steamer, back up rotary, generator, water tank etc.



Also use some money for marketing materials - website, bus cards, logo, shirts, fliers, letterhead.



Menzerna, P21s, Swissvax are all good products but will give you less margin if your prices are not high enough. Also... contact Dr. G over at Optimum and get an account setup.



Best of luck!
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Good point. I do have a PC if worse comes to worse with the metabo. Also, I don't have a generator or water tank, etc. yet because i'm not gong full mobile probably until the end of the year or so. Also, the steamers I found are like $1k is that about normal for a steamer? I found the aztec extractors for like $620 which is somewhat reasonable. I'll look at the optimum products, thanks!



Aaron
 
Invest $700 in a vapor steamer, long term it will cut down on use and expense of chemicals.



Buy or check out from your Library E-Myth By Michael Gerber



make an appointment or visit ??????????????????????????? and sba.gov



two invalubale resources for small business owners in my opinion.
 
d00t said:
Good point. I do have a PC if worse comes to worse with the metabo. Also, I don't have a generator or water tank, etc. yet because i'm not gong full mobile probably until the end of the year or so. Also, the steamers I found are like $1k is that about normal for a steamer? I found the aztec extractors for like $620 which is somewhat reasonable. I'll look at the optimum products, thanks!



Aaron
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Lets say the metabo decides to stop working at the begging of a full paint correction detail.. be realistic, your not going to do a whole car with a PC that you thought would take you 6 hours with a rotary. You would be looking at 10 hours just doing paint correction with a PC if my rotary gave out.



Do you NEED a steamer?

Nope. It saves you a small amount of time, but you can do anything that you do with a steamer with chemicals or a carpet extractor.



And i would go with the carpet extractor. Saves you some time on the carpets and helps maximize efficiency.



Yes, optimum's line is amazing. Im almost totally converted to them with ONR, OHC, OP, and Poliseal. Amazing combos that can get almost anything done. I would strongly suggest you invest in their line of products.
 
dmw2692004 said:
Lets say the metabo decides to stop working at the begging of a full paint correction detail.. be realistic, your not going to do a whole car with a PC that you thought would take you 6 hours with a rotary. You would be looking at 10 hours just doing paint correction with a PC if my rotary gave out.



Do you NEED a steamer?

Nope. It saves you a small amount of time, but you can do anything that you do with a steamer with chemicals or a carpet extractor.
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Good point on the rotary. Maybe I'll look into the hitachi or the like for the future.



As for the steamer. All I hear is to get a steamer, but you said it only saves a small amount of time. This is where the classic production model comes in to play. So does the cost of a $700 steamer, out way the extra x amount of time, as opposed to the y amount of dollars you are saving by getting just chemicals? I'd need that input from steamer users.



Also, don't worry about the extractor, that's at the top of the list for sure! :).



Keep the advice coming! I'm really appreciating all of it and trying to take it all in!



Aaron
 
StrutMotors said:
Personally, I think you aren't looking at this the right way.



Broadening your supply of products isn't necessarily going to increase your business. Think of the money, if you get it, as a business loan and use more of it towards the business rather than the details. If it were me, I'd probably stop at $500-$750 in supplies and put the rest into licensing/registration, insurance, and advertising. You say you've got most of the high dollar equipment already purchased- so you've got that going for you.



Also leave yourself a safety net, just because you get $3000 doesn't mean you need to spend all $3000. What are the terms of repayment? What happens if you drop $2999 on polishes, pads, and towels but don't pull in any clients or make any money?
Click to expand...



Bingo! d00t, listen to the man. He’s right on the money.





d00t said:
.... My company (hell, any detail company) is pretty much high risk/return. ...
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Detailing high return? I’d like to see that business plan.





PC.
 
If you can network well, market well, and be really good, I KNOW the potential to make good money is out there. So is it high return? If you can find it, of course it is. Part of the challenge is finding it..



Going to get my licenses this week actually :).



Aaron
 
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