Setting up shop...need tips

A

Anosmiac

New member
As winter is starting to approach the Chicagoland area, I am getting closer to making the big jump and opening a detail shop. As of today, I am looking at approximately 1500 sq ft, with about 200 of that dedicated to a reception/retail/waiting area. Based on the avaialble sq ft remaining, I estimate enough room to be able to detail three cars simultaneously.



I now am at the point where I need to look into setting up this space once I sign a lease. Aside from your "direct" detailing supplies (buffers, chemicals, supplies, etc), what other types of costs should I anticipate? I highly doubt any place I look at will have an in-floor drain system, so I will probably have to invest in a wash containment mat. Any suggestions on electric industrial power washer systems? Are you setting up a retail area in your shops, or strictly only selling your detail services? How are you searching for employees?



Any and all tips are greatly appreciated.
 
I guess we are somewhat in the same water. I too might(!) be setting up a shop. It would be great to here what you guys have to say on this thread! Any pics of the place your looking at?
 
Anosmiac said:
As winter is starting to approach the Chicagoland area, I am getting closer to making the big jump and opening a detail shop. As of today, I am looking at approximately 1500 sq ft, with about 200 of that dedicated to a reception/retail/waiting area. Based on the avaialble sq ft remaining, I estimate enough room to be able to detail three cars simultaneously.



I now am at the point where I need to look into setting up this space once I sign a lease. Aside from your "direct" detailing supplies (buffers, chemicals, supplies, etc), what other types of costs should I anticipate? I highly doubt any place I look at will have an in-floor drain system, so I will probably have to invest in a wash containment mat. Any suggestions on electric industrial power washer systems? Are you setting up a retail area in your shops, or strictly only selling your detail services? How are you searching for employees?



Any and all tips are greatly appreciated.
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Utilities (heat, power, water)

Taxes (local, state and federal)

Insurance

Advertising



Good luck!
 
Before you sign the lease, you may want to check in with The Small Business Administration office in your area. They would offer the best advice when it comes to other types of business costs. Another resource would be talking to the loan officer at your local bank. They too would surely have some good first hand advice and would probably want to see a copy of your business plan.



http://www.sba.gov/
 
Thanks for the reply guys. What about actual physical setup? Since I am still searching for a spot, and uncertain what township it will be in, some of the tax costs are still being researched.



For those of you that own shops, what did you do in terms of setting up power washers? Lighting? Reception/waiting/retail areas? For those that have shops, but do not have drainage in your shop, did you utilize a containment mat?



Also, how did you go about hiring employees? My biggest concern is finding people I can trust to do sufficient work. In the early stages, I will only trust a rotary in my hands, but depending upon how much business I acquire, I would need to find an experienced set of hands to take on some rotary work. Do you put ads out in your local papers?
 
I rented out an empty building and built evrything myself from scratch. it had sections bricked off where things were obviously going to be. But I built my office desk and reception area by hand the way I wanted it.



Lighting will always be an issue I think I have 10 shop lights in my bay and I still don't have anywhere near enough lighting in there. Anytime you think something looks just killer in the bay pull it outside and think again. I put my powerwasher on it's own circut so not to share with any other plugs in the building. (they tend to draw a lot of amps on their own) same with the carpet extractor. I added all the plugs and stuff (It was seriously an empty building LOL) I had one drain in the floor. And quite frankly unless it's just the sweetest spot in the city unless it had floor drains I wouldn't even bother looking at the building. Always my very first question when looking at new possibilties to expand is " Does the building have adequate floor drains"



Hiring employees is and will always be a headache. First off you need people that are skilled. However they may be skilled in bad habits. Which you usually don't find out until after you hire them. Then you have to try and break those bad habits. You can try the flip side of the coin and go after a noob that has little to zero skills and train them the right way. I've done that as well. The only problem them (especially if you have any sort of volume to get out) is you're now babysitting a non skilled person while still trying to get out top quality vehicles and you will seriously tell yourself an many many occasions the headache simply isn't worth it and you can do it yourself. (which of course you can't physically if you have high volumes) So it's a crap shoot.
 
Thank you for all the replies. I have taken all of your suggestions to heart, but the search still continues.



My most difficult hurdle is the thought of how do I get past the cost of rent, utilities, etc with a minimal client base at this point in time? My schedule is very eradic. One week, I am booked every day, the following week may be just one detail. I suspect, living in Chicagoland, things will only get slower as the weather worsens.



Would it be best to make due with what I have (detailing in my garage) during the winter? My thought was to hold off until March, and invest in a mobile detail setup (pickup, detail trailer, market the heck out of my operation). Hopefully, I will be able to save up enough money during the spring/summer/fall to set up shop as planned.



I might be too conservative in my plan, but I just can't see how I can pay $1200+ per month just for rent!



Again, any and all suggestions/comments/ideas would be very appreciated.
 
Most of the problems to set up a detailing shop can be overcomed, either with plenty of cash, or good relations with the local government agencies, and plenty of patience ( especially the part of looking for the right shop, at the right location etc ).



The only real problems would be finding clients to support your business on a regular basis, expanding your client base, and staffs to support the business.



To look for customers, it's always : advertising either thru your local mail, your local Craiglist ( which seems to be very popular ), and then another sort of Craiglist, the one whereby your clients put up their reviews. Do not forget word of mouth, one of the greatest free advertisement ever.



As always, you have to keep on improving the quality of your work up the point it cannot be improved anymore, i.e the best there is. That would include keeping up with client's etc.



Staffs : This is a major problem. Now, I presume you're doing your business from your garage. Do you employ assistants at the moment? If you don't, and if you seriously need one, ask someone around, nearby your location, who seems to have the interest of detailing vehicles, to assist you on a job - to - job basis. Do promise ( and keep 'em ) incentives etc as well. Keep a payroll ( a proper payroll working together with your detailing accounts, which I presume you already have one in your PC already ), and always ask the assistant to sign a declaration form, and every payroll receipts as well.



Now, if you do already have one guy helping you out, and you see the potential with him, groom him to be as good as you, not only in detailing, but in other areas as well, which includes communication with clients etc. If he is up to it, he really wants it, and he's loyal to you, this means that you have already solved a part of your staffing problem.



Keep on working with him for a while, and when the cold season if gone, or going to be gone, survey your local and see whether you can maintain a good business ( both in keep doing it at your garage, and mobile ). If you see that's it's viable, then now is the time for you to seriously go mobile as well. But you have to make sure that your current assistant is up to it as well, for if he's not, you'll have a hard time to go mobile.



Buying a cheap van, water tank, generator set plus mobile canopies is much easier and safer to your wallet, compared to setting up a shop, which will cost you a heck more cash! I'm not saying that setting up a shop isn't bad, it's the best, but you have to be prepared for everything, from every angles, before you take the plunge.
 
poyo said:
As always, you have to keep on improving the quality of your work up to the point it cannot be improved anymore, i.e the best there is.
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Improving the quality of your work is a never ending process. There will always be something that can be improved.
 
Physical setup should be last on your list, somewhere near what magazines to buy for the waiting room. The flow of the shop will develop as the work comes in, ever changing...



Sales and Budget should be your top priority.

Does my current business generate enough positive cash flow to pay my personal bills plus the shop bills? If it doesn't, how long can I live with no income?



Does the area of the shop have enough of a pool of customers to sell to? Have I captured a thorough demographic of the area?
 
My recent thoughts are unless you have history of a steady, high volume of cars from a number of big clients, mobile is the way to go.



For me, the biggest problem about having my car detailed is dropping it off at a shop and getting a ride home and then back to pick it up. If a guy came to my driveway, it would make life easier for me.
 
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