Government SBA loans and detailing

R

roybiggens

New member
I have gone as far as putting together a business plan and researching some possible building locations in a fast growing area where I live.



This area is upper middle class and higher and is the PERFECT site for a nice high-end detailing shop. I've spoken to a couple of members of the local Small Business Association about the plan and they both seem to think it would go over well as there is nothing like this in the area.



However, due to location the land / building prices are high and it would require me to take out a Small Business Loan for startup costs. Has anyone else who runs a "Brick and Mortar" detailing buisness gone this route?



I guess I should add I've been detailing on the side for about two years now. Mainly on weekends so I don't necessarily have true customer base.



I just keep thinking to myself...I LOVE doing this (as opposed to my day job as an accountant) and I feel like this is the opportunity to turn it into a career.



I've read and learned so much from this site over the past year or so and there's no way to express what it's meant to me.
 
I think everyone who has taken on detailing as a full time business, or any business for that matter, has gone on the line the way you are planning...we've all had to take on a certain amount of risk and in some cases give up steady pay checks and take out a loan to do so.



Without getting a real good look at your business plan and location you probably won't hear many say, 'go for it'. But if you're confident in your plan and dedicated to the idea AND the work that it will bring then that makes the decision an easier one. Just make sure you don't under estimate operating income for the time period that you will not be profitable when you go for that loan.



I hope this helps. I didn't really see any specific questions in your post.
 
Thanks for the reply, what you say makes perfect sense. I guess a more specific question is what is a good estimate for a startup loan?





As far the plan goes, here's an oversight.



I live near and work in Huntsville, AL. There are a couple of VERY fast growing high income areas around Huntsville. Huntsville itself is a high income town (especially for the SouthEast) due to Department of Defense driven engineering jobs that permeate the place.



The particular area I'm looking it is based very close to several private golf courses, and one Robert Trent Jones Golf Trail course. There has been a Wal-Mart and a Lowes built in this area over the past year and there are several small strip malls popping up.



The road I would want to build is on is heavily traveled by high income persons and I'd like to put my shop within five minutes of where most of these people live.



There are no other "high end" detailing shops anywhere even in the vicinity of where I speak. I really do think it's primed for something that caters to the "high-end" type customer.



I would probably start off with a 1-bay metal type building with a small waiting area. I would of course continue to to do a little "on-site" detailing on the weekends for people who request it.



I really am green when it comes to starting up a business of my own but I'm going Monday to talk with a couple of realtors and to price out a metal buidling to my specs.
 
i would think that saturday MUST be a day of operations for a store front business...sunday would be optional, but SATURDAY is a must



figure in operating expenses even for the days you are not doing a detail



I am thinking about opening up a storefront as well in the next year or so, same situation as you
 
Not a bad plan. I live on a barrier island where the median home price is over $500K and most of the residents are aging boomers with pricey cars- many Lexus, M-B, BMW, Infiniti, etc. I am kinda retired and got bored doing the at-home Dad to our adopted twins once they started school, so I decided to open a part-time mobile detailing biz. There is no competition here and the mainland detailers don't want to drive out here for a job. Within a month I was booked to about 75% of my capacity.



I went mobile only as I didn't want to take on a lot of overhead which helps keep my prices affordable. I have no inclination to get a brick and morter shop. With a set location, not only do you have the rent/mortgage, insurance, etc., but also the permits, licenses and all that crap.



Your clientele sound similar to mine. The working folks have better things to do with their spare time than washing their cars and the older folks aren't in the shape to care for their own cars.



I hit up a couple businesses to detail their vehicles for barter exchange (hardware store, convenience stores) While doing the on-site work in their high profile business locations, I picked up jobs from their customers in local developments. While doing those residential jobs, I picked up others from neighbors watching my work, an so on.



Even in my own community I'll approach someone washing their car and do the old plastic bag test to show them how much crud is embedded in their paint. The average car feels like used 100-grit sandpaper. That's an easy sell for a wash/clay-bar/polish/wax job.



If you try to do the work to Autopian standards, the people will be pleased and tell their friends.



I'd start mobile, part-time (eves, weekends) until things get up and running before quitting your regular job. If things go well, then think about a permanent location.



I find the work very rewarding- I instantly get to see the results of my work and the smiles on the customers' faces also.
 
MMasz,



Thanks for the reply. Basically exactly what you said is kind of my "more conservative" backup plan. I don't currently advertise per se other than word of mouth and most of my current details are for people who live in the small town where I'm located, about 45 miles from where the "big" market is.



I would certainly have no trouble at all doing more of the mobile thing I just haven't been able to come up with a good marketing plan to get my name out there, nor to be honest have I really tried. I thought about doing a test run of 1000 flyers or so in the area of which I speak just to see what kind of response I get.



If you were in my shoes and wanted to take your mobile detailing to the next level whay would be your first option? I mean as far as advertising goes. I have even thought about renting a bill board for a month just to see what would happen.



I really appreciate everyone's feedback so far, its been enlightening.
 
roybiggens said:
If you were in my shoes and wanted to take your mobile detailing to the next level whay would be your first option? I mean as far as advertising goes. I have even thought about renting a bill board for a month just to see what would happen.
Click to expand...





Frequency is key to effective marketing. The more people see your message the more they are inclined to act on it. You may not see any response from a single month or try of any type of advertisement.



If I were you i'd get my hands on as much reading material on the sublect as I could, especially now before you are fully committed. One book that has helped me in my marketing plans is "Guerrilla Marketing" by Jay Conrad Levinson. It is focused on marketing for small businesses.



As far as determining start-up costs and other sections of your business plan take a look at the SBA's website, www.sba.gov. They have alot of good information about planning for a new business.
 
Marketing can be done almost for free as when detailing for a business on their premises. For example, I just got a call from the owner of a laundromat who wants me to detail his 2 vehicles. He saw the work I did for the owner of a convenience store next to his place. The convenience store owner called me after seeing the work I did on the hardware store's truck. The hardware store became a client when I went in and talked with him about doing barter (truck detail/biweekly washes at full price for in-kind store credit). Yesterday, I did a full detail for the father of the owner of the hardware store.



I just started advertising in a local paper which comes every 2 weeks in the mail. It covers the island where I live. When the ad exec came to my home to get info, I noticed that her RX300 was a pit. I bartered 2 ads (cost $120.00) for a detail on her vehicle. While I was at her place doing the work, 2 of her neighbors came over and asked for full details on their vehicles. That type of exposure/advertising is free and more productive than mailings- most of which get tossed. I can't say whether the ads themselves will be effective right now. Time will tell.



Magnetic signs on your vehicle can work well too. I was dropping my kids off at school and another mother saw my vehicle's sign and called me right there. She has 4 kids and a dirty van. I got an interior detail job out of that and later a full detail on her spouse's pick-up. I also had some shirts made with my company's name embroidered on them. The shirts were about $20/ea. You will look like a professional unlike some of the detailing yokels who look like they just got out on parole.



Shameless self promotion is essential and your work should be your best marketing. You could try to visit some businesses in your target area and arrange for some barter. This will get exposure to the public. Try high visibility locations with company vehicles and do the work on weekends when their traffic is highest.



I invested about $5K into the biz to get started (using my own Sienna). No need for a loan. That bought PC7424, steam cleaner, pads, polishes, waxes, MF towels, licenses, etc. I should note that $2K of the total went for a killer carpet extractor which is not absolutely essential, but if there are a lot of families with young kids in your area, the vehicles will be pig-pens and a good extractor does a great job and saves a lot of time. Plus, I can use it to cle4an my own home's carpets.



In reality, most people have never seen a real "Detail" and once they see the results, are pretty open to having work done on their cars. BUT you have to do good work!!!
 
All of this is such great information, I REALLY appreciate. I'm starting to lean towards trying to build the mobile buisness the more I read.



I'll make sure to pick up the marketing book too.





I swear the people on this site are the greatest in the world.





I have decided to go ahead and start a website, I have a friend who's already agreed to setup it in trade for a full detail.



Thanks again!!
 
MichaelM said:
...we've all had to take on a certain amount of risk and in some cases give up steady pay checks and take out a loan to do so.
Click to expand...



In the process of becoming a successful entrepreneur you will sometimes be tested by your ability to know and understand the difference between taking calculated risks and just taking chances.



You see, most successful entrepreneurs are in fact, risk-takers. However, you will find that they usually do not take chances. Successful business people realize that taking a well-calculated risk will require careful planning and creative use of their time and energy. In most cases, they look at it as an investment.



On the flip side are those people who like an adventure. They usually jump in with both feet and when the business begins to fail, they look around and wonder what went wrong. By that time it is usually too late. They took a chance and it did not work out.



Taking a well-calculated risk is an investment that you will make in yourself and others closely associated with your business. Your ability to plan ahead, do your homework and succeed will depend on your ability to assess and manage risk.
 
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