New Business Looking to Grow

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OnTheSpotMobile

New member
Hi everyone, I've just started detailing full time last spring. I've been self teaching myself for about ten years now since the time I got my first car was about the same time I got my first buffer! I started a little mobile unit by myself out of my truck and got a decent amount of business through a few of the summer months, but of coarse had to shut down and hibernate in the winter because in my area there is 3 feet of snow on the ground from January through the end of March.



Now my main obstacle to growth is getting a shop. There are about 10 detail shops all along the same street in my city with one being the most popular by far, the others are not exclusively detail shops they are used car dealerships, collision centers, stereo and tint shops, etc.



This year I hope to get a small crew of 2-3 guys together so I can get some cash flowing. Last year was more of an experiment than anything, but this year I'm jumping into things full on.



My question is how does one go about getting a shop? There was one for sale on "detail shop boulevard" last summer for $250,000. I was considering leasing it but then when I found out it was a sale I moved on. I was making just enough to pay my bills and thats about it. That was hard since I had left a job of $80,000/year to pursue this business.



Some problems with mobile detailing for me is the weather, and working space. I can only really work 2-3 days per week most of the time. I can't hire full time employees because of this alone, forget actually getting the business. Also much of the time it seems like it would be much more convenient for the customer if they could just drop the vehicle off, especially dealerships and fleets. That being said, I would like to keep mobile detailing a significant part of my business after moving into a shop, particularly for the marine sector.



I would like to hear how some of you have gone from a tiny business like myself, into a self sustaining and profitable detail shop.
 
OnTheSpotMobile said:
Some problems with mobile detailing for me is the weather, and working space. I can only really work 2-3 days per week most of the time. I can't hire full time employees because of this alone, forget actually getting the business.
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Just to clarify, you're saying that you can only work 2 to 3 days a week because of the weather and available working space ?
 
WAS said:
Just to clarify, you're saying that you can only work 2 to 3 days a week because of the weather and available working space ?
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Yes unfortunately due to the coastal weather here it is raining 2 or 3 days of the week most of the time or heavy fog and mist that soaks the vehicles. I'd say we get a solid 5 weeks per season without some kind of weather set back.



In regards to space, the used car dealers are used to dropping their cars off at the detail shop after getting MVI and mechanical work done. In some cases the mechanic will drive the car to the detail shop for them when they're done with MVI, etc. This works for them and they don't seem to be interested in having you on their lot making noise and taking up their space. Just another reason I'm itching to get a roof over my head!
 
Sounds like your definitely need a shop. Now that I see where you are, it makes more sense to me (I used to live in Halifax for quite a while, done the Halifax <-> Moncton trip more times than I can remember). Anyways, from what you've said, you're pretty committed to the detail venture, having left a good paying job (in that area of the country that was really HIGH paying job). I would definitely look for a shop location. Being "closed" in the winter REALLY kills your business' professional image, so I suggest avoiding that again if at all possible. Did you check out what the mortgage was on $250,000 ? How is your company setup, sole propriator or corporation ? Don't exclude buying right off the bat, as your property, if you own it, does become your most valued asset.



How "regularly" booked are you ? What type of clientele are they, retail customers or wholesale customers ? If you could have been open this past winter, how busy would you have been ?
 
I dont get much snow where I am (Vancouver area), but I do get plenty of rain all winter and had the same problem with working mobile during the winter months. This past November I decided to find a shop that I could work out of when I needed too. I got a small one bay shop attached to a used car lot/rental car company. They give me a lot of work and I have a couple other dealer accounts, but building up the retail end has been slow during the winter months. I still offer mobile service but I find it much easier to work from the shop.



Currently I am JUST making it in this new set up and I do not have employees. Hopefully come spring I will be able to bring on some help and make a little more $.
 
I would suggest looking into renting a shop. Just about every area has been hit by the recession, which means there is some premium rental property available on the cheap. If you were in the shoes of a landlord wouldn't you rather break even or even loose a little money instead of a significant negative cash flow? Our lease was up on the first of the year, instead of paying $1500 for 1000 sq and one bay we moved and are paying $1200 for a two bay, about 1800 square. Plus you won't be more committed to the building/area then the amount of your lease, so if you start to feel the pressure from your a-bit-too-close established competition you can relocate without losing your shirt.
 
JReed said:
I would suggest looking into renting a shop. Just about every area has been hit by the recession, which means there is some premium rental property available on the cheap. If you were in the shoes of a landlord wouldn't you rather break even or even loose a little money instead of a significant negative cash flow? Our lease was up on the first of the year, instead of paying $1500 for 1000 sq and one bay we moved and are paying $1200 for a two bay, about 1800 square. Plus you won't be more committed to the building/area then the amount of your lease, so if you start to feel the pressure from your a-bit-too-close established competition you can relocate without losing your shirt.
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Yeah but the OP is in Canada, where the recession has been the most non-existant of any 1st world country. I'm not even sure if the province of NB lost any jobs...
 
Recession is pretty much unheard of in this area. A big part of the reason I didn't pursue that 250,000 shop I mentioned was because the mortgage would have been around $1500/month and at that time I wasn't prepared for that kind of hit. I didn't have a customer base built up, I still don't have a huge retail customer base, except in spring time when everyone remembers they have a boat sitting in a boat yard waiting to be dropped in the water. I have found boat detailing to be much more profitable (from april-June) than auto detailing for me, in the way my business is set up, in my area. During those months I don't even want to look at a vehicle. But then there are the other nine months of the year.



What I need to go after is dealerships. There are about 20 of them all on the same street (detail shop boulevard), and maybe 10 more scattered around the city inside my service area. I have limited experience dealing with dealerships but I know I can get business from them if I approach them with the right set up. The right set up of course being a shop where I can produce results for the customers without the inconvenience of having to wait for the weather to clear up, or the winter to end. But going from "just paying the bills" driving around in my truck detailing boats to getting approved financing for a $1000+/month shop sounds like a daunting task to me. I guess I don't really know what to expect.



Last year I was doing work for a small used car lot but around November I had to shut down for the winter. Now that dealership has been going to someone else for the past four months. When I call him up in a couple of weeks to announce that I'm back in service, he may be a lost customer. This is a not acceptable! If he does bring me back, I have outright stolen that other shop's customer. My mission is to get in a shop this year even if I have to sleep there!
 
If you are working solo you will only need a couple dealerships to keep you busy along with whatever retail stuff you can pick up. Maybe you can hire a helper or two to help with the spring/summer rush and you could still do the more lucrative boat details during the spring/summer and service your dealer accounts. College students finish up in May or something and go back in September...just the perfect window of time for your needs.



In my experience it is better working with the smaller lots where you are dealing directly with the owner...I have found them to be more loyal and understanding if you get backed up once in a while. The hard part is getting the dealership initially because they are often times loyal to whatever shop they already use.



If you are seriouse about sleeping in your shop try find a shop with a "caretaker" suite. A guy that owns one of the detail shops in my city lives above his shop which allows him to offer more flexible hours and saves him rent or mortgage payment for a house.
 
JPostal said:
If you are working solo you will only need a couple dealerships to keep you busy along with whatever retail stuff you can pick up. Maybe you can hire a helper or two to help with the spring/summer rush and you could still do the more lucrative boat details during the spring/summer and service your dealer accounts. College students finish up in May or something and go back in September...just the perfect window of time for your needs.



In my experience it is better working with the smaller lots where you are dealing directly with the owner...I have found them to be more loyal and understanding if you get backed up once in a while. The hard part is getting the dealership initially because they are often times loyal to whatever shop they already use.



If you are seriouse about sleeping in your shop try find a shop with a "caretaker" suite. A guy that owns one of the detail shops in my city lives above his shop which allows him to offer more flexible hours and saves him rent or mortgage payment for a house.
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this sounds like the right kind of set up. Living above your garge; roll out of bed, fall into work is a great feeling.
 
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