Business Questions

this is primarily directed towards the big dogs on here (phil, ken, norcalbob, etc), but any and all input is obviously welcome and appreciated.

ok here's the deal. i've been thinking a LOT lately about the possibilities of beginning to plan and take action on setting a dream of mine in motion. opening up a shop. the main thing im having trouble with figuring out is a rough estimate of capital necessary to get something like this rolling. the idea i have is that it would be nice to go halfsies with someone, or do it myself and have a silent partner/investor involved. so im thinking about initial expenses that come to mind:

-first years lease of a property/building up front
-insurance on the building and business insurance
-money i would need towards setting the building up (flooring, lighting, water, etc)
-additional supplies/equipment i would need or like to have (i have a good amount of my own stuff to get started already, but im thinking....extractor, steam machine, additional rotaries, surplus chemicals, supplies etc)
-money for advertising
-utilities

i know there's more that im not thinking of right now, and if im missing anything big, please let me know. what im trying to figure out really is a ROUGH estimate of how much up front would be needed to get something like this going. obviously, real estate is a big variable in this case. this is just something ive had on my mind for a couple years now, and i've basically said eff it, i want to do it, so i will. obviously this is not something that will come together for a number of years, but i want to get the ball rolling now, and gathering as much info as possible is the first step for me.

 

Huge question Bill. I'll try to get something together for you shortly. Keep bugging me.

 

dont forget insurance to cover the vehicles you are working on, security for your shop. health/medical benefits for you and/or any employees you might have (if it comes to that).

 

i know right? regardless of the fact that i consider myself to be an educated person, im having a tough time articulating my thoughts about this online, so i figured i would just throw up something broad and see what responses i got. i was hoping you would respond, and if you didnt i was going to call you this weekend and take up as much of your time as possible picking your brain :cig:.

 

yeah im figuring a custom business insurance plan would cover the vehicles. security, good point. i guess that doesnt mean sleeping there with my guns right? haha, but seriosuly, interested rog? i was gonna call you but im all over the place right now.

 

it sounds good, but wees gonna need some serious capital. Its possible in a couple years hopefully.

plus we would need a good clientele base, such as returning customers, people with multiple vehicles who use us solely for their vehicles, and ways to get the word out and get people seriously interested in doing business with us.

 

No custom insurance plan needed. It's called "Garage Keepers Insurance". It covers you when your driving the cars, and when they're stored in your shop.

I would say just to get a small shop opened (like less than 1500 sq.ft.) you'd need at least $10k to start off with. That's AT LEAST. And that's with having your own supplies too..

I've done research, and had the pleasure of being around some decision making (not making the decisions, but witnessing them) during a shop build like this and I was astounded at how quickly money goes...

 

The only thing I know about the shop type stuff, is that you need at least 6 months rent up front, then add your chemicals,equipment, electrical, water, insurance, advertising, signage, and general repairs.

Shops are expensive to run, no matter where you are. I would say you would need in the neighbourhood of 25 000 dollars in capital to get it up and running properly. People generally don't come knocking at your door as soon as you open up.

Just my two cents

 

well when i opened my shop, i put in $50K in 9 months. insurance depends on the building owners. i had to have a $2 million general liability, garage keepers, insurance for my products, equipment and so on. cost me about $2000 a year total. worst part was a lot of my accounts were selling to auto dealers.i lost 13 accounts in one month, 9 owed me more than $600+ each

 

I'm planning on starting mobile to get off the ground before even thinking of opening a shop.... I can afford to buy a van... lol

 

damn how are people suppose to make a profit these days

 

thats what i wish i would have done. but now i'm mobile and still can't afford a van LOL

 

I would say at the very least just work on building your credit, capital, and name until the economy starts to pick back up, and keep in contact with your customers. And start small.

One thing I would do is make a list of all the stuff that I want in the shop, then go back through it a couple of times and figure out if you really need it, or if it is just making the job easier. Get the essentials and get the rest of the stuff later, every last dollars gonna help you. For example, kinda small but CR Spotless. Nice to have, but not at all necessary.

 

I almost bought a van, it was $800, lol...

 

It'd be a good idea to become a corporation as well if you really want to do things right. Also, you'll probably want to build some company credit history as well. You really need to protect yourself.

 

circa 2001 [Detailing For Profit: A Guide For Professional Detailers] DavidB

- Detailing for Profit - Autopia.org

 

thanks for all the responses guys. ive been very busy and didnt mean to let this thread go by the wayside. the responses have been very helpful thus far, and this is something im dead set on doing, so all of your input is helpful and appreciated.

just waiting on ken to write me up that "report"! haha. take your time kind sir.

 

my friend wants to open shop in west chester, he already does it in his garage so at least he has customer and many are refered by curent customers and a lot of return as well. plus he is vendor on local tristate website (oh, i guess you know him).

maybe start doing mobile detail first and then if clientele is good, open up a shop? it helps if you have garage so you can do cars at home

 

I will and I am. Just sold my van so I nee to build another and just tore out a few of the walls in my shop so I can have a retail area. The amount of walk in traffic I'm getting is crazy. Seems a lot of guys like having a local supplier. I will get to it though. Keep bugging me.

 

you think. i wish i lived closer to Phil. id buy more stuff im sure, shipping and waiting time just kills it, even though i get my stuff next day with ground shipping.