Sustainable Business

[ducksfan]

One more thing. Maybe Will or his sister would like to weigh in on how well they think a business that requires this level of skill, quality and liability would do being run by basically an absentee owner.

Not trying to bust on you OP as much as interject a bit of reality.

[jj01231]

I would like to throw in a different point of view. I am currently toying with the idea of doing the same thing (well pretty close to the same thing). My brother in law is interested in the industry and is in college so he would be good additional labor and I am looking to create a small business to create some additional income on the side. A little background on me, I have lived and breathed the air conditioning industry since I was a little kid. I started working in my dads shop when I was 12 and worked every position up to General Manager by the age of 21. Since then I have moved to a new city and am Vice President of Consumer Services with a very large state wide air conditioning company based in Orlando. In my state (Florida) the number of small A/C companies outnumber the large ones. To get into the A/C industry all it takes is some tools, a truck, some insurance and license (hopefully) and a phone number. The entry barrier is extremely low which is why there are so many people in the industry.

The detailing business is the same in this respect and the same argument can be made in A/C as many of you have made in this thread. If your service tech or installer is doing all the work, signs the customer up for the maintenance and is the one the customer sees then what stops them from taking those customers and starting their own business? The answer is a lot of things; The risk, the capital (even with the low cost to start), the confidence, the ability to answer phones, schedule, perform and keep customers happy, and the biggest one is THEY are now responsible for the number of calls they get per day, not someone else. I could continue on with the list but there is a reason that everyone doesn't own a business and it ultimately comes down to the know-how. Running a business properly is as important as actually detailing the car (or fixing/replacing their A/C system) and not everyone can do that.

The kind of detailing company I am starting will be like most, a mobile detailing company that will at first focus on quantity vs quality (by quality I mean high end details). The areas that I think I will differ is that I will find the labor that will fit with what I am looking to do (it will probably take me quite a few candidates) and find someone that is truly passionate about cars and taking care of them. The way you keep them interested and engaged and take the worry away of having them steal your customers, or money for that matter, is by making them a part of the company. The right employee with me will have an extremely attractive compensation package that will have a generous hourly compensation as well as a large amount of bonus or "spiff" opportunities that will reward them handsomely. The last piece will be a very upfront conversation with clear expectations from the beginning of how I would like to see this going and how they can work their way into having an ownership of the company.

This approach will take the risk of them taking my customers and running off the table, it reduces the risk or chances of bad quality work being performed (lets face it, no matter what, you will have mistakes and, unhappy customers are a part of customer service) and it helps me find a long term partner. I know this approach is not for everyone and certainly does not seem to be common. If my cash flow reports and forecasts are correct, this person may very well make more money than me in the first 12 months but I am willing to do that as an investment in the future.

Also, I have a fairly comprehensive marketing plan to acquire and retain customers. Again, this (if I choose to do it) will be my first time in the detailing industry but not my first time running a company, marketing, acquiring and retaining talent and growing a successful company.

Just my .02 on the topic. Might be a bit out there but it is what I am considering.

Glad to be a part of the group!

[theclock12]

Would love to talk about your comprehensive marketing plan, PM me if you're free

[dlc95]

I've only owned a tunnel car wash. What I did was what every other wash I worked or studied did. I designated a manager. I trained him, and observed him training others. I've even had a peer go through the wash to get his feed back.

Obviously, the most ideal situation is to be present. You'd be surprised how much morale is affected by the presence of "the boss". It's almost as of they feel more secure. At least I did when I operated in a managerial capacity. As an owner, I never knew...

You want to have someone who can operate the production in your absence. They need to know YOUR process, and teach it to the crew. They need to have confidence in their skill, and that they can understand/replicate/teach what you taught them. You also want to be open to their ideas, but be ready to state your reason for doing things your way.

My opinion is that they need to have a clear title that designates his level of importance to the company. This individual should also be compensated accordingly. The manager has to have incentive to maintain his job. Otherwise the temptation to start their own business and find their way around a non-compete could come back to bite ya.

Both of the most successful detail shops in the metro area are structured similarly. They do excellent business, and a stellar reputation in town.

I say give it a shot, and best of luck!

[UncleDavy]

Pretty much.

And, about the no compete clause, that's a college student talking. As a small business (Well, actually micro small compared to the range of businesses classified as small), you probably couldn't afford to legally enforce it. If you could afford it, no way you could justify it economically. But assume you could and choose to whether it was financially prudent or not. What are you going to do when the other side raises the issue of your contract being void because you're running an illegal business out of your residence?

I was in a situation where I signed a non-compete contract and it felt like a prison sentence. I spoke with two attorneys and they told me that it is enforceable but rarely does the arbitrator rule in favor of the plaintiff. If the defendant was a former partner that had access to financial records, then the arbitrator will probably rule that it would be harmful to the business. Large companies use the non-compete as a scare tactic. Most arbitrators will rule in favor of the working slob who is just out to make a living like a salesman, technician or detailer.