AUTO DETAILING BUSINESS

Auto Detailing Business or Mobile Detailing Business


Decide if the business location will be a fixed, mobile or both.

Demographics:

(Determine where the customers are and how you will reach them)
1.                              joe’s body shop is limited to exterior cleanup only
2.                              ABC Auto dealer offers limited service to some customers at the dealership
3.                              Car Wash Inc. only offers a “quick wax option” but not full detailing.
4.                              Manny’s Mobile Car Wash and Auto Appearance Center appears to offer the most complete service options of all of the reviewed businesses. They should provide the best competition and will be the benchmark for startup efforts.
5.                               
The ten mile radius of our proposed location (fixed 0r mobile) shows there are four high end neighborhoods with homes ranging in price from $400,000 to $1,500,000.

These four areas contain approximately 250 homes all within 10 miles of our business location.
In addition there are two industrial parks, two hospitals and numerous office building complexes with approximately 8,000 employees. The local private airport and the three marinas are also within that 10 mile radius.

Services Offered:

(What types of service and products will you offer)
·                                 Exterior Services
Complete exterior detailing including washing the vehicle, claying the paint, removal of all bugs & tar followed by paint correction (scratch removal) will prepare the vehicle of cleaning and polishing the finish. During this operation all exterior rubber trim and tires will be dressed to like new condition.
·                                 Interior Services
The interior of the vehicle will be purged of all loose material carpets, seats miscellaneous upholstery will be spot treated shampooed and deep cleaned with a special heated extractor.
·                                 Engine Cleaning & Dressing
Engines will be cleaned using the finest products to remove grease and grim from the surfaces. A special non-silicone dressing will be applied to ensure a bright clean surface for a long time.
Note: List all other services you intend to provide.

1.                              Retail clients in the upscale neighborhoods defined in the demographic section.
2.                              Companies that have been identified within the industrial parks in the area.
3.                              Hospitals in the area with specific attention to the doctor offices within the area.
4.                              Marinas in the area especially in the fall months with boats are coming out of the water.
5.                               

 Marketing Plan:

The marketing plan will vary from season to season throughout the year. The important issues of the plan include the following items.
1.                              Development of the website to ensure a presence on the internet.
2.                              Join the local chamber of commerce to gain immediate exposure to the businesses in the area. Create a special pricing for all chamber of commerce members and their families to promote growth.
3.                              Development of a plan for exploiting the social media tools on the internet and the smart phones in use.
4.                              Create proper signage, logos, and business cards for use by the company and its employees.     (Branding the Business)
5.                              Develop a plan for monthly or quarterly flyers and promotions. Including the face to face meeting of each auto related business to foster a relationship with each so that they are aware of your business and how you can help each other. Place service menus and business cards at their locations to create business.
6.                              Advertising mediums should be monitored and controlled to determine success in terms of customer and revenue growth.
7.                               

Cost and Profit Model:

Using the cost and profit model provided, project the number of detailing services you expect to complete in the next twelve months. Follow that by your income and expense projections for the next twelve to twenty four months.
Use this tool to project your income, expenses and net income for the next three years.
Understand your fixed and variable costs, your margin and your cost per hour to operate your business.

Equipment and consumable products:

Build and list your equipment needs or purchased equipment. (Include Vendors)
Create a list of consumable products including polishes, cleaners, compounds etc. along with all brushes and cleaning cloths both microfiber and non microfiber.
1.                              Car wash equipment
1.                                                      Pressure washer
2.                                                       low pressure washer
3.                                                       vapor steamer
4.                                                      Paint correction
1.                                                                              Buffers
2.                                                                              Polishers
5.                                                      Interior Cleaning
1.                                                                              Cleaning and deodorizing equipment
2.                                                                              Heated extractor
3.                                                                              Tornador air purging equipment
4.                                                                              Ozone generator
6.                                                      Tools
1.                                                                              Brushes
2.                                                                              Towels
3.                                                                              Chemical storage
4.                                                                              Applicators
7.                                                      Added Value Profit Centers
1.                                                                              Paint chip repair
2.                                                                              Headlight restoration
3.                                                                              Plastic trim restoration
4.                                                                              Glass repair
5.                                                                              Vinyl and leather repair
6.                                                                              Carpet dying
7.                                                                              Odor removal
8.                                                                              Window tinting

Methods and Procedures:

Consider what methods and procedures you need to start and maintain your business. Start by determining what is important to you and to the success of the business.

Licenses and Permits:

List all permits and licenses needed to be compliant with the local, state and federal regulations. Review legal requirement with counsel and accounting professional.

EPA and local environmental regulations:

It is important to understand the regulations and the potential equipment needed to comply. Be sure to search them out and list them in your plan so that your lawyer can assist you in understanding and complying with them. These requirements are different in each area and require your attention.

Business Structure:

 

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S corporations are the most common entities that provide the owner personal protection with pass-through tax treatment. To create any corporation, the owner must file Articles of Incorporation with the Department of State, make an election to be treated as an S Corp., adopt bylaws and hold initial meetings of shareholders and directors – among other organizational tasks.

In comparison with other entities, startup cost and administrative formalities are usually greater for S Corporations. S Corps are limited to 100 shareholders.
Limited Partnerships (LPs) and Limited Liability Companies (LLCs) offer a usually less burdensome alternative to S Corps.

 Both of these entities are formed by filing documents with the Department of State, and are largely governed by internal agreements between the owners. While at least one owner of a limited partnership must serve as general partner and be subject to unlimited liability, all members of an LLC are afforded limited liability. LLCs
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“Choosing the right structure, with the assistance of an attorney and an accountant, enables entrepreneurs to protect their personal assets from business creditors, while avoiding corporate taxes. This will prove instrumental to:

Try to anticipate your growth relative to volume of customers, employees, equipment and marketing needs. Consider forecasting customer and revenue growth along with retained customers. This will tell you that your overall plan is working.