'Plan
for the future, because that is where you are going to spend the rest of your
life'. Mark Twain
Recommended Products
In the interest of full
disclosure, I am in no way affiliated with, employed by, have any vested
interest, or in any way receive compensation from the sale or distribution of
the product lines reviewed or the company that manufactures or markets it.
~The Keys to Success~
·
PRACTICE ~ learn ‘how to’ use tools and chemicals
·
PREPARATION ~ the final
finish can only be as good as the prepared surface it’s applied to
·
PROCESS ~ learn what
products really work and in what order to apply them
·
PRODUCTS
~ what’s available and what ‘fixes’ a given paint
condition
·
PATIENCE ~ it’s the
journey not the arriving, so enjoy
·
PRIDE ~ in a job
done to the best of your ability
·
CREDITABILITY ~ is the
biggest challenge for small businesses.
·
QUALITY ~ will enhance your reputation
·
CLIENT ~ find out and satisfy their needs
·
EXPECTAIONS ~ meet and wherever possible exceed client expectations
Random success plays a part
in all industries; randomness or the ups and downs of luck, both good and bad,
sometimes mask for a while anyway; underlying quality. But few people are
confident enough to stand by their judgements about underlying quality or
character and so remain fixed upon short-term indicators - indicators bedevilled
by chance.
Entrepreneurs: born or made?
Made - there is no doubt
that here is aptitude involved and some people have more of it and some people have less, just as some
people will be adequate entrepreneurs and some extraordinary ones. But all people
who are successful need huge amounts of training, learning and support along
the way, so by definition entrepreneurs are made.
Born - entrepreneurs are
born because you need to have a slightly rebellious streak in you to be an
entrepreneur. You must have an innate ability to challenge the status quo. You
are someone who likes being in control of your own destiny rather than just
joining a company and climbing your way to the top.
You can learn the basics of
entrepreneurship, you can learn the steps you need to go through and the rules
you need to stick to if you are to make any venture successful. But you cannot
teach someone that they have to take all of the responsibility themselves and
that they are going to have to provide all the drive themselves to achieve
their business goals
Establishing credibility is one of the biggest challenges for small start-up businesses. Success is down
to the hunger and passion that you are born with. It is a part of you and it’s instinctive.
If you have it, you can’t switch it off. Often they are not driven solely by
monetary gain; it’s more usually about independence and proving something to
themselves.
10 Characteristics of Superior Leaders
(Do you have these
essential traits?) - http://www.entrepreneur.com/article/204248
Business Acumen
[The "FATAL" mistake that many, too many, small
business people make is that they believe that if you know the technical work
of a business, you can operate a business that does technical work. Because the
"technician" when faced with business problems such as marketing;
advertising; financial accountability; proper hiring and training of employees,
do not have these knowledge and skills to handle these problems and the best
they can do is try to throw what they know, "technical solutions" to
the problem, which doesn’t work and before long they are out of business.]
Michael Gerber
There is a lot more to
getting started in business then knowing the techniques of that business and
how to use the tools and equipment, using chemicals and etc. In any business
there are various financial considerations, the upkeep of company books and
accounts, contacts to be generated, Insurances and permits along with sales and
marketing concepts to be put into place in order to grow your new business venture.
Getting started in business
should be a decision your confident in making happen. Be sure to do your
research, get educated and find out just what it takes to get a great return on
your investment of time and money.
Starting a business is not
hard to do, nor does it cost a lot of money. However, just like any business it
needs to be done correctly. Many who get
started don't set up the business correctly in the beginning stages and end up
either loosing or completely folding up; a large percentage of fail within the
first 18 months of getting started.
There are two main reasons;
they don't know how to run a business and don't have enough knowledge to keep
it up. And they are usually much undercapitalized to support their business
until they do learn how to make it work. Basically, they run out of capital
before they make a profit, this unfortunately is very common in many businesses
today
Being good at what you do is
25% the balance is business acumen, client relationships and marketing yourself
and your services and product. Strive to offer customer-focused services that
differentiate your company from the competition. Ensure that your marketing
focuses on customer’s needs as opposed to what you think they want. Making the
other person think that they’ve got a good deal; and always try to exceed customer
expectations
Becoming a Professional Detailer
There are
various levels of detailing
·
Production
·
Paint
renovation for high-end vehicles
·
Concours
and show car preparation
Advanced
detailing; comes about when someone becomes so in tune with their craft it
becomes art.
High end
A-list vehicles and prestige concourse entrants; customers in this type of
niche market will have their vehicles detailed on a fairly regular basis,
especially during the concourse show season. Building long lasting customer
relationships should be your main goal, ideally you want to establish a
customer base that uses you not only for the major concourse details, but also
for maintaining their vehicles on a weekly to monthly basis.
What is the best demographic to cater to as a detailer? If
you live in an area where there are people with prestige cars and high
disposable incomes, the sky is the limit.
I would strongly recommend
that you learn the most you can from Internet detailing forums you’ll find a
wealth of knowledge from people who have experience of most if not all of the
problems you’re likely to encounter as well as the existing high end detailers
who contribute and are making a lucrative living with this type of detailing.
Time is money, but quality,
consistent results will enhance your reputation and gain repeat customers.
Repeat customers and "word of mouth" is you #1 advertising tool. As
an experienced detailer you need to know how to tackle any detailing problem,
including paint and interior renovation
/ restoration that comes along, although it is impossible to prepare for every
situation possible, the more knowledgeable you are, the more valuable you
become, and hence the more you can charge for your services.
With a well thought out
business and a solid marketing plan, a good work ethics, quality tools,
products and workmanship, along with outstanding customer service, knowledge
and experience of products and the tools of your trade you'll be on your way to
achieving success.
Business Start-up
As a ‘new business if you
have no client base or reputation to trade on, in essence you’re a complete
unknown. You might be absolutely fantastic at what you do and the business side
of things, but at that very moment the hard work begins. Without a client base
and repeat business however good you are, you won’t last long in business,
regardless of income your business expenses (rent /lease, electricity, etc)
have to be met.
There is a so much to learn
about setting up and running a business as well as having the knowledge of your
profession. Do adequate research on owning and operating your own business
first
Adequate insurance, stable
finances, available credit, a good working relationship with your banker or
business backer, accounting, tax law, properly setting up your business (sole
proprietorship, Limited Company etc.) as well as having the necessary
discipline and organizational ability to pay bills on time, are just some of
the things required and to start maintain business momentum. This is all in
addition to sales, marketing, customer relationships, vendor relationships, and
actually doing the work.
Company Formation
Talk with a layer that
specializes in company formation and company law and an Accountant to help you
set-up you’re bookkeeping, accounts and tax payments
·
Company structure - Sole-proprietorship, Partnership, Limited
liability (LLC) or an S Corporation?
Your decision will also determine how you are taxed.
·
Business registration/licensing: local, state and federal.
·
Some cities and municipalities do not allow a business to be
residence based (home)
·
Depending on your state laws, you may need a sales tax license.
·
Insurance - how much is dependent on what you plan on doing. I
recommend talking to an insurance agent
Mobile Detailing Business
Mobile detailers operate
from a specifically adapted van, truck or trailer that often includes an
electric generator and water storage tank. Fully equipped detailing trailers
start at $3,500. There are many benefits to this type of operation, including a
low initial start-up cost, low running costs and the ability to service clients
who prefer the convenience of having their vehicle detailed at their home or
office. Dependent upon location and climatic conditions may affect the amount
of time available to detail cars.
Bricks & Mortar Detailing Business
Before opening your doors
for business there are some major costs involved. But there are benefits of a fixed location
detailing over a mobile business, in that you can locate your business in a
natural traffic area that will attract ‘walk-in ‘business.
Each type of professional
detailing business has its own list of pros and cons that should be carefully
explored and understood. Mobile detailing can be both a lower first cost option
compared to a fixed location type operation and a viable business in the
southern regions that enjoy mild winter; as it can be operational most of the
year.
However in northern regions
that experience snow and freezing daytime temperatures, a mobile business would
see a significant slowdown and a substantial loss of revenue in winter.
The first thing you should
do is contact the community's city/town clerk building department to see what
permits are required, and then City Hall
is the Department of Public Works water and sewer division and Conservation
Commission to see what the storm water/wastewater reclamation, sewer back up
prevention, back-flow devices, etc regulations are. Check with the building
department's division of code enforcement to see if any changes affect the use
of the building. Finally have a fire safety inspection prior to taking
possession check with the Fire Department for any requirements for fire
alarm/sprinkler systems and fire extinguishers.
Business Name or DBA (Doing Business As)
Is a Fictitious Business
Name is the legal name, other than the owners name, you decide to give your
business.
Do I
need to have a DBA?
The answer is probably
"yes", and you definitely want to take the time to find out. Most
states require that you get a DBA. Sole proprietors and general partnerships
operating their businesses under fictitious and or assumed names may need to apply
for a DBA certificate in the county where the business is physically located.
You will not be able to enforce any contracts you sign under your business name
unless the name legally belongs to you. Another important point is, unless you
register your DBA, other businesses will not know that you exist and may take
the name.
What
are the benefits to establishing a DBA?
·
Here are some of the more important benefits to establishing a
DBA:
·
Operate and advertise under your business name.
·
Prevent other businesses from using the name within your state.
·
Operate with a bank account under your business name.
·
Accept checks written out to your business name.
·
Gain a more professional image.
What is the process of
getting a DBA?
Contact or visit your local
county clerk's office and ask about the specific requirements and fees. There
typically is a small registration fee. The county clerk's office will often
conduct a complimentary name search for the intended business name to make sure
it's not already taken. There are several online resources available to conduct
searches on your intended business name as well.
Some states may require you
to place a fictitious name notice in a local newspaper for specified period of
time. The costs for this are usually small, and the newspaper may even file the
necessary papers with the county. Consider checking with different local
newspapers to see what they offer.
For the majority of states,
corporations are not required to file fictitious business names unless they do
business under names other than their own. The incorporation documents have the
same effect that fictitious names filed for partnerships and sole
proprietorships do.
US American Business
Directory - http://library.dialog.com/bluesheets/html/bl0531.html
Banking under your business name
The vast majority of banks
will not allow you to open a bank account unless you have shown them proof of a
filed DBA. It is important to have a business bank account so that you can
accept payments written out to your company name. You may consider checking
with different banks to see the differences in services they will offer you and
the requirements they have to set up a business account.
Local Licenses and Permits
Search for Business Licenses
and Permits - http://www.sba.gov/content/search-business-licenses-and-permits
How to Name Your Business
What's in a business name? Not only must your name reflect your brand and be
memorable, there are also a host of legal issues to consider. Business small
and large can suffer losses from infringement of intellectual property rights.
These rights include Copyright, Trademarks, Patents and more. At www.stopfakes.gov
you will find more information, articles and training modules to help protect
your business
·
Research your intended business name to make sure it is not
taken.
·
Determine if it will be to your benefit to pursue a trademark
for your business.
Choosing
a business name
Crucially,
you need to strike the right chord with potential customers. Your business name
must create the desired impression in their minds of what your business
does and what it stands for (its values). Using your own name for your
business can be effective if building close relationships with clients is
important.. It gives the impression of a small and personable approach to
business. Giving a sense of place can be effective, too. It suggests local
pride and identity and possibly authenticity and quality.
Be cognizant that selling a
business with your name in it would not be a challenge. Even if someone would
buy it, they would have to re-brand the business, which devalues it
Browse existing business names.
Browse directories of existing company
names and brands from specified industry or category. Looking though the lists
of carefully selected existing names may spark a creative idea. Other
considerations when naming a business
Ask yourself whether a
potential name is easy to say and spell over the phone or online (also whether
it can be misheard as something offensive or amusing). Steer clear of long
names, strange words and unusual spellings.
Research and find out if the names you
have narrowed down already exist. You can search online and in the local county
clerk's office to see if similar names exist. You will want your name to be as
unique as possible to avoid confusing potential clients.
Check whether the
corresponding domain name is available. Also consider how your name would look
in an email address, marketing materials and signage.
Should I trademark my business name?
You are not required by law to do this but
registering your name as a trademark is always a good idea. It provides you
with protection in case another business tries to use your business name or a
name that is likely to be confused with your business name. It may be smart to
file an application for a federal trademark if your company is doing business
in several states. Run a search with the government or through a service to
determine if your name is taken.
Seller’s Permit
Sometimes a seller's permit
is called a "certificate of resale" or a "certificate of
authority." This permit lets you collect sales tax from your customers,
which you in turn pay to the state. Keep in mind that a seller's permit is
different from a business license. Are you engaging in retail sales? If the answer
is "yes", then you probably need to register for and get a sales tax
license or a seller's permit.
You still would need this permit if you are also
selling goods that are exempt from state sales tax. If you are selling both
products and services, it is important you keep sales organized separately.
Sales of services are not usually taxed in most states. Sales tax is imposed at
the retail level and will vary depending on your state.
Where do I get a seller’s
permit?
You can register for a
sellers permit through state’s Board of Equalization, Sales Tax Commission, or
Franchise Tax Board. The following is a useful link from the Irs.gov Web site
to help you locate the appropriate offices in your state. IRS.gov - Register
Seller's permit
Employer Identification Number (EIN)
An Employer Identification
Number (EIN), also known as a federal tax ID, is similar to a social security
number for your business. This nine-digit number is important because it allows
you to identify your business on important government forms and official
documents. Oftentimes, wholesale distributors require either a federal tax ID
or a seller's permit from a retailer.
You are required to have an
EIN in some, but not all circumstances. We recommend you get an EIN instead of
using your social security number. It is safer to give out your EIN than it is
to give out your personal social security number. There is no fee for receiving
this from the IRS. A benefit to having an EIN is that it can help you establish
credibility with whom you do business.
An EIN is required if
Your business has employees.
·
Your business is a Corporation or a Partnership.
·
You file any of these tax returns: Employment, Excise or
Alcohol, Tobacco and Firearms.
·
You withhold taxes on income, other than wages, paid to a non-resident
alien.
·
You have a Keogh plan.
·
You are involved with: trusts, IRAs, exempt organization
business income tax returns, estates, real estate mortgage investment conduits,
non-profit organizations, farmers' cooperatives or plan administrators.
·
If you provide health insurance for your employees, you may need
a National Standard Employer Identifier (NSEI) for your electronic health
transactions.
How do I apply for an EIN?
Fortunately the Internal
Revenue Service makes it very easy to apply. You can apply by phone, fax, mail,
or online. Please have a look at the links to the IRS Web site below. It is
important to note that your business may also need to acquire a tax
identification number from your states department of revenue or taxation.
Top Ten Do's and Don'ts
Top ten do’s
·
Determine if you need a zoning compliance permit.
·
Verify with your health insurance carrier if you need a National
Standard Employer identifier number.
·
Check on the zoning laws for your business location.
·
Check if you need a special license to do business out of your
home
·
Check to see that the business name you have chosen is not
already taken.
·
Get a DBA by going to your local county clerk's office.
·
Get a business license and a federal tax ID number.
·
Open a business banking account in your business name.
·
Get a seller's permit if you need one.
·
Consider registering your trademark.
Top ten don’ts
1.
Go into business without a business license.
2.
Start building without a building permit.
3.
Proceed without first consulting with a business attorney.
4.
Use your social security number as your tax ID number. Get an
EIN number instead.
5.
Choose a business name without first checking to see if it is
taken.
6.
Begin business without verifying zoning requirements.
7.
Operate under your business name until you have successfully
filed for you DBA.
8.
Forget to check if your business requires state and/or federal
licensing.
9.
Use your personal checking account for your business.
10.
Fail to collect sales taxes when required
Start-up Costs
Here are some basic cost assumptions:
·
Incorporation fee (attorney) - $1,200
·
Accountant or bookkeeper - $1,000
·
Office equipment - $3,500
·
Office supplies - $550
·
Detailing equipment - $5,500
·
Initial stock of detail supplies - $1,500
·
Air compressor - $1,000
·
Washer and dryer - $1,000
·
Tools and Equipment - $1,500
·
Miscellaneous shop requirements - $2,500
·
Shop Signage - $3,500
·
Initial promotion and advertising - $2,500
·
Business licenses - $1,000
·
Cash on hand (always available) - $5,000
Total estimated start-up costs - $25,000
These cost need to be
incorporated into both your Business plan and Cash flow
1.
Monthly
Expenses
·
Rent – $3000
·
Business Insurance – $100
·
Liability insurance - $80
·
Automobile insurance - $200
·
Telephone service (inc mobile) - $250
·
Utilities (Water, Elect, Broadband etc) - $550
·
Employee’s wages (2 x 40 hrs x $10.00) - $1,000
·
Office supplies - $100
·
Marketing - $200
·
Detailing supplies – $1,500
·
Maintenance - $100
Total estimated monthly expenses -
$7,000
2.
Tools
and Equipment
·
Rotary polisher – $200
·
Orbital polisher – $150 - 300
·
(2) Washing buckets +
GritGuard – $150
·
(10) Micro fibre towels - $150
·
(10) Wool and Foam pads – $70
·
Assortment of brushes – $35
3.
Required for each
operative $ 1,000
·
Electric pressure washer – $800
·
Hose reel – $75
·
Hot air gun – $25
·
Heated carpet extractor- $1,400
·
Air compressor (100 PSI) – $500
·
Pad washer – $150
·
Halogen work lights (2x 500 Watts) - $50
·
Heavy duty Vacuum (4 HP, 95-inch lift) - $200
4.
Total
shop equipment $3,250
These
$ numbers are given as a guide only, replace with your own estimated costs to
arrive at a start-up cost
Insurance
Obtain business liability
coverage; specifically Garage Keeper's Insurance (fixed location) or a
Commercial General Liability policy (Mobile detailer’s). See also- UK: http://www.detailingworld.co.uk/forum/showthread.php?t=61615
Start-up
Starting a new business
demands much more than a good idea, a new business needs seed capital, which
means that you must also convince a wide range of people that your idea is a
good one and that you can successfully generate profits in the future.
Some general rules of engagement before
you start should include:
·
Be as brief as possible, short, sweet and to the point.
·
Place financial data in an appendix at the end of the document
·
Demonstrate respect for your competition
·
Mix in a spell and grammar check before you send your plan
·
Justify any projections you make for your business
·
Focus on your profit potential
·
Include a risk analysis for the business and a realistic
diagnostic for its survival
·
Go easy on industry and technical jargon
·
Be honest about any major claim
·
Talk about relevant experience of your executive team
A start-up business may
spend more than it earns for two or three years. The amount of financing needed
may continue to go up through this time. For example, millions of people owned
mobile phones and the networks became known internationally long before they
made a profit
Many businesses have
seasonal sales patterns that lead to predictable cash flow peaks and troughs
For example detailing ; faces heavy material costs Car care chemicals,
etc) in the summer with a much reduce
demand for products / services in the colder months
The secret to happiness is doing what
you love - The secret to success is loving what you do
Here are four key steps you
need to take
Financing your business
A solid financial base is
essential when you are starting up a new business. The right financing package
will carry you through any temporary difficulties yet still allow you to make
the most of growth opportunities when they arise. This briefing focuses on four
areas:
There are a number of
options if you need backing to start a new business:
·
A bank loan
·
Venture capital
·
Investment from family and/or friends
·
'Business angels' - independent, wealthy individuals looking for
investment opportunities
Allow for some contingency funding. How
much extra finance might you need?
Consider worst-case
scenarios to help you decide how much finance you should have available. What
if a product launch is delayed, you lose your best customer, costs overrun or
interest rates go up?
How accurate is your forecast? If you
are unsure, you may need to set up substantial contingency funding
Even if you don't need all
the money at once, don't wait until your need for the extra finance becomes
urgent. For example, borrowing £20,000 in January and then asking for £20,000
more in April may alarm your bank manager. Let the bank know the total amount
in the first place - even if you ask to borrow it in stages.
Other finance
·
Trade credit (paying your suppliers after 30 to 60 days) and
bank finance may be all that a small business needs. Suppliers keen to enter a
new market may offer extended credit. But other options are worth considering,
especially for vehicle finance.
·
Leasing is used to finance equipment you do not need to own
·
Instead of buying the item, you rent it for a fixed period -
usually three to five years
·
Payments are spread out over the period, helping your cash flow
·
You get full tax relief on most lease payments
In addition, there is the
option to fix maintenance costs as part of the agreement (contract hire)
So how do you prepare your
detail business so it is attractive to potential investors?
Here are some suggestions:
1.
Have audited financial statements available for the past 2- 3
years
2.
They will only want to invest in a profit making concern, so
anything you can do to add profit to the bottom-line is critical. Eliminate as many unnecessary costs as you
can to increase the profit of the business.
3.
3. Insure that you stated
objectives for taking on an investor (s) matches your business objectives.
4.
Have a well-laid out business plan that reflects a new strategy
to grow the business with additional funding
Each option has advantages
and disadvantages - a bank loan can be expensive, for instance, but allows you
to keep a greater control of the business.
Before you go about raising
capital, it is also worthwhile exploring whether your business may qualify for
a grant from a local or national source. Businesses that are likely to employ
workers from deprived areas could qualify, as could those that will have a
beneficial effect on a deprived area or section of society.
Similarly, grants and tax
breaks are also available in specific locations, such as enterprise parks section
of society.
Business Loan Application
A Financial Plan is usually
a requirement of a lending institution or investor; specify the amount of
capital which you expect to put into the business. Provide specific information
as to how the loan will be used; purchase of new equipment, a building,
inventory; supplies or working capital. Identify what items will be purchased
or leased, name potential suppliers and estimated costs.
Show return on investment
(ROI) for this capital and estimated profit. In the event the loan or
investment cannot be made, describe what changes, if any, must be made in order
that the business would still be operational.
a) Financial Data: Sources of funding;
Mortgage Loans, Term Loans, Personal Equity Investments. Applications of funding;
Purchase Building, Purchase Equipment, Renovations, Inventory, Supplies,
Working Capital
b) Balance Sheet;
Assets- Cash, Accounts Receivable, Inventory, Supplies. Fixed Assets; Fixtures,
Vehicles, Equipment, Building, Land. Liabilities- Accounts Payable, Bank Loans,
Net Worth; Owners Equity
c) Operating Expenses: Salaries, Wages,
Commissions, Payroll Taxes, Marketing, Advertising and Promotion, Office
Administration, Legal and Accounting Operating Supplies, Bad Debts, Rent,
Repairs and Maintenance Utilities, Insurance, Taxes and Licenses, Depreciation,
Interest
d) Break even Analysis:
Sales Cost of goods / services sold Gross profit Fixed expenses Net profit
(loss) Gross profit as % of sales Divide Gross Profit by Sales (To show
percentage relationship) (Break even) divide fixed expenses by Gross Profit (As
% of Sales expressed as a decimal)
e) Supporting Documents:
Personal Resume Job Descriptions Financial Statements Credit Reports Letters of
Reference Letters of Intent Copy of Lease Copy of Agreements Copy of Contracts
Copy of Proposals Quotations and Estimates Census and Demographic Data and
Industry Surveys
3. Write a business plan: The
first and most important step in raising finance is a solid and convincing
business plan. Competition for the attention of banks, venture capitalists and
other investors is fierce and potential investors receive many hundreds of
business plans every year.
If you are to win backing
for your new company, your business plan must stand out from the pack.
Make
sure your business plan follows these guidelines:
The front cover should be
clearly dated and should identify ownership of the plan:
A clear index:
An executive summary
previews the main points of an in-depth report; it is written for nontechnical
people who don't have time to read the main report. The executive report
contains enough information for a reader to get familiarized with what is
discussed in the full report without having to read it
An executive summary,
providing the reader with a brief (no more than a single page) but thorough
idea of the proposal: organisational information, which should include: contact
numbers; the company's legal form, registration number and incorporation date;
directors and shareholdings, if appropriate; employment numbers and the
projected increase in staff over a specified time scale; the names and
addresses of the company's advisers.
a)
The
main section - which should provide a history of the organisation with a
mission statement, clear details of the project being proposed for funding, a
thorough analysis of the market, customers and competition, management details
and finance details.
Management details should
include the CVs of main management and an analysis of the team's ability to
manage marketing and sales, finance and administration and technical issues.
The finance section should
include projections for monthly cash flow, and profit and loss accounts and
balance sheets covering a minimum of two years. An assessment of the project's
long-term financial viability should also be included, along with a realistic
statement of the total funding requirement (split between capital expenditure
and working capital).
Security for borrowings
For any borrowing you need
to show that you can afford the capital and interest payments. In addition, a
bank usually wants security to ensure the loan is repaid if things go wrong.
There are a number of different possibilities:
·
A personal guarantee is a guarantee from an individual
·
If supported by a legal charge over your personal assets, these
assets (including your house) can be at risk if the guarantee is called upon.
·
A guarantee from a third party, who will be liable to pay the
debt if you default
·
Directors of limited companies are often asked to provide
personal guarantees in case the company fails.
·
Sole traders (and partners) are already personally liable for
all business debts
·
You may need to take out insurance that will pay out if you
suffer an accident, sickness or death. This will also protect the bank if you
are unable to work
A good source of information is ‘Business Panning Made Easy - http://www.bplans.com/sample_business_plans.cfm
Business plan software - http://www.paloalto.com/uk/business_plan_software
As the business expands and
changes are made, the business plan will need to be amended and revised to fit
the new business environment. The business plan should be treated as an ever
evolving document, don’t get caught up in following the plan rigidly or you may
end up missing new business opportunities
Find an office / detailing space:
Once your funding is in
place, the next step is to find a base for your company. Again, there are a
number of options:
·
Be conservative. Take your time and set priorities.
·
Choose a location with easy access: This can be a personal
residence, mobile rig, commercial building, or rental space in an existing
automotive-related business (car wash, lube shop, stereo shop, window tint,
etc.)
·
Shop-around for financing: Interest rates vary. You might also
consider alternative financing.
·
Leasing a property - Points to look out for include: break
clauses, which give you the option of leaving the premises before the end of
the lease; that the responsibility for maintenance and repair of the building
is clearly defined; and that the terms for rent increases are laid out in the
contract.
·
Buying a property - should be seen as an option for the future.
·
Purchase adequate insurance: This includes full coverage on
customer vehicles in the shop, and off the premises during pick-up and
delivery.
·
Invest in a good phone system: If you cannot be reached
directly, you should be able to return a customer's call within 15 minutes.
·
Set-up a credit card accounts for business purchases: Some
suppliers do not offer credit terms or C.O.D.
·
Set-up credit card accounts for retail sales: Electronic credit
card machines offer financial safeguards and convenience for your customers.
·
Investigate state and city tax laws: Some require sales tax on
services.
a) Get
equipped: The final step is to find the right equipment and software for
your needs and to stock up with stationery and other office goods. You'll also
need to find yourself legal, tax and accounting advisers.
b) Cash
Flow:
Cash (Liquid Assets) - cash
available or income from the business
1. Starting cash -
this is your starting balance - what you have on hand at the beginning of each
month.
2. Cash receipts
-this is all cash received during the month, including sales, paid receivables,
interest or cash from sales of assets or stock.
3. Expenditure -
includes all fixed and variable expenses.
4. Balance - add
starting cash to cash receipts for total cash, and then subtract expenditure
Let's say you started the
month with $3,500. You brought in $2,500 in sales and $500 in sales
receivables. You paid $1,500 in rent, $250 in supplies, and $1,750 for wages
and owner's pay - a total of $3,500 in expenses.
1,500 3,500
250 2,500
1,750 500
3,500 -
$6,000 $6,500
500 -
$6,500
Your monthly cash flow is -$500,
despite sales of $2,500. To survive, you want positive cash flow, which means
taking in more than you are spending. Positive cash flow gives you forward
motion to build and grow
Even a small lag in sales or an outstanding bill can have
a dramatic impact on cash flow, but you won't know that without your cash flow
budget. At the end of every month, compare actual sales with estimated cash
flow and compare it to your break even analysis in your business plan. Sound
cash flow management means you can anticipate when your cash flow needs will
occur.
•Credit- extended by supply vendors; to maintain a good trade credit
ensures bills are met on time.
•Inventory- cash disbursements (supplies in
stock) this will be your biggest monetary outlay
•Debt- bank overdraft or business loans must be repaid in a timely
manner to ensure a good standing with your bank when it comes time to expand
your business
•Expenses- business rent, utilities (telephone,
electricity, water, and etc) Insurance, Taxes, salaries, monies must be
available to meet these expenses, plus state and local taxes, accountant and
attorney fees.
•Bookkeeping- always keep accurate records of all your business
transactions, these are very necessary for the day-to-day running of the
business, plus you’ll always be aware of you liabilities for sales tax and etc.
Effective cash flow management
As
the old business adage goes, ‘turnover is vanity, profit is sanity, and cash
flow is reality’.
/Profits may be the most
important priority for practice partners personally – since they provide income
– but good cash flow management is what really matters.
Profit is, after all, the
difference between outgoings and income, and income only exists when clients
actually pay, not when they’re invoiced.
Whether you are a
long-established practice, a start-up or about to undergo a step-change in
growth being able to forecast cash flow is essential. Different businesses may
have more certainty than others when it comes to cash flow, but the principle
is the same – and the forecast is one of the most vital documents in the
business, both for your own information and when seeking funding. Forecasts are
often annual or 6-monthly, but can be generated monthly, weekly or even daily
in some circumstances.
Remember these tips when forecasting your
cash flow:
1.
Cash flow forecasting is an incredibly useful tool for your
business. Treat it as something that is a friend and guide for you, not
something you have to do because you’ve been told you have to. Good forecasting
can help grow (or save) a business.
2.
It’s a forecast, not a 100% prediction. Forecasting can only be
a combination of knows and best guesses, and its accuracy will depend on a lot
of things. But the more often you do it, and the more you revise it, the better
your forecasting will become.
3.
Use it to your advantage. If you’re seeking finance you’ll know
to come armed with as much documentation as possible, and the cash flow
forecasts will be among the most important pieces of paper you possess.
Realistic and well-constructed cash flow forecasts are evidence that you really
understand your business’s finances.
4.
Don’t wait until it’s too late. If you know it’s going to rain
in winter (or indeed summer in the UK!) you don’t wait until it starts pouring
before buying something waterproof. If your cash flow forecast says you will
need extra funds to bridge a cash flow gap in, say, Q3 of the financial year,
prepare your case for funding now. Businesses who need money urgently ‘that
day’ don’t give a good impression that they have worked enough on planning.
5.
Cash flow is not always about bridging a gap – sometimes it can
be about having too much (or at least too much in the wrong place). Make sure
you’re not sitting on cash that isn’t needed for immediate or contingency
costs. Put surplus cash to work. The good news is, of course, that if you have
put the work in on good cash flow forecasting, you’ll be able to see when you
might have a surplus and make decisions as to what to do with it.
6.
Invoice early and chase payment. And if you need to use extra
resource to chase payment – again, factor this in to the cash flow forecast.
7.
Experiment with different scenarios. The cash flow forecast is
an incredibly useful tool for understanding what different trading conditions
might mean for your business. Running ‘what ifs’ through the forecast can
quickly give you an indication as to how a certain course of action might turn
out. Simple spreadsheet software will be able to do this in an instant.
8.
Get digital help. Spreadsheets are a quick and easy way to
create simple cash flow forecasts, but there are lots of other, more advanced
packages available, which enable you to have all your financial information in
one place.
Software spreadsheets - http://www.simplycashflow.com/pricing.aspx
Liability Insurance
Some of the various
covers and options available to help you with the decision on what is most
appropriate for your business.
Public
Liability Insurance - whilst this cover is not compulsory, it
should be considered as a necessity by anyone running their own business
“Per
Capita” Public Liability -there are quite a few Insurers who
offer “per capita” Public Liability policies. These are traditionally for
Tradesmen who operate without premises (bricklayers, painters & decorators,
carpenters etc) and the premium is based on the number of persons, hence “per
capita”.
Motor
Trade Liability Insurance - Public Liability for
valeters is available under a Motor Trade Liability policy which caters more
specifically for persons in the Motor Trade.
Servicing
Liability
– the policy cover also includes Servicing Liability. This is something
normally taken up by mechanics and the like and covers the consequential loss
of your actions.
Marketing Plan
With a well thought out
business and a solid marketing plan, a good work ethics, quality tools,
products and workmanship, along with outstanding customer service, knowledge
and experience of products and the tools of your trade you'll be on your way to
achieving success. (See
also “Business Marketing” article)
Mobile Detailing Business
Mobile detailers operate
from a specifically adapted van, truck or trailer that often includes an
electric generator and water storage tank. Fully equipped detailing trailers
start at $3,500.
There are many benefits to
this type of operation, including a low initial start-up cost, low running
costs and the ability to service clients who prefer the convenience of having
their vehicle detailed at their home or office.
Bricks & Mortar Detailing Business
Before opening your doors
for business there are some major costs involved. But there are benefits of a
fixed location detailing over a mobile business, in that you can locate your
business in a natural traffic area that will attract ‘walk-in ‘business.
Protecting Ownership of Your Products/Services
Patents, Trademarks,
Copyrights, and Intellectual Property; businesses requiring legal advice should
contact an attorney. Put very simply, copyrights are to protect ownership
(authorship) of written words, i.e. in books, pamphlets, etc. Patents are to
protect ownership of processes or technologies. Trademarks are to protect
ownership of names, titles, slogans; images, etc. (See also Copyright and Intellectual Property article)
Summary
Professional detailing can be a great business
opportunity, but like any other business, it requires very careful planning and
execution. Work smart, take the time to study and understand your market and
build a business strategy around it. Once you’ve established your business plan,
all it takes to execute it is hard work.
Forms of insolvency
Bankruptcy: The
traditional way of escaping overwhelming debt. Ends after one year, but you are
likely to lose all your assets including your house to pay something to the
creditors
Individual voluntary arrangement (IVA): A
deal between you and your creditors, overseen by an insolvency practitioner.
Less stigma, less chance of losing your home, but involves paying some of your
debts in one go or over a number of years
Debt Relief Orders:
Introduced in April 2009, these allow consumers with debts of less than £15,000
and minimal assets or surplus income to write off debts without a full-blown
bankruptcy
Recommended reading-
1.
Start Your Own Automobile Detailing Business by Eileen Figure
Sandlin
2.
Selling The Invisible" by Harry Beckwith
3.
The E-Myth Revisited: Why Most Small Businesses Don't Work and
What to Do About It by Michael E. Gerber
4.
What Clients Love: A Field Guide to Growing Your Business by
Harry Beckwith
5.
Mentored By A Millionaire by Steven K. Scott
6.
Think and Grow Rich! by
Napoleon Hill
7.
The Seven Habits of Highly Effective People
by Stephen Covey
9.
9 Super Simple Steps to Entrepreneurial Success by Martin J.
Grunder Jr.
10.
How to Start a Home-based Car Detailing Business by Renny Doyle
Recommended Software-
·
Service CEO - ServiceCEO Auto Detailing Software - http://www.insightdirect.com/auto-detailing-software
·
Quicken Quick Books - Accounting Software - QuickBooks
·
Executive Coaching and Business Coaching Martin Brossman is a
personal coach operating in the Raleigh, Durham and the Washington DC Area's.
Client referrals have extended his practice nationally and internationally.
Coaching areas include, personal coaching, executive coaching and business
coaching.- Personal Coach Martin Brossman serving Raleigh, Durham and the
Washington DC
I
would like to think that these articles become an asset to anyone who is new to
detailing and to professionals alike, as well as industry experts who seek to
advance their knowledge.
I hope the
above article was informative. By having some understanding of the ‘What’ and
‘Why’ as well as the ‘How’ along with a little science to help you understand
how the chemicals we use react, you can achieve the results you desire.
I would appreciate it if you would share this article as it
helps other detailers further their knowledge. Questions and/ or constructive
comments are always appreciated.
Copyright
© 2002-2010, TOGWT ® Ltd (Established 1980) all rights reserved
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