Out of line?

[misterzippo]

Trying to wrap up writing my business plan for my mobile detail business and I am wondering if my Break Even Analysis is out of line?

Here's where I am at. I have always wanted to own my own business. ALWAYS, as in since I was 5 years old selling homemade puzzles by the side of the road. In 6th grade I was selling candy out of an abandoned locker in my middle school and in high school I would make $10/day selling pop tarts on the honor system out of my locker. The Principal shut me down and wasn't too keen when I offered him a cut if he would let me continue.

I attended college and majored in Business Administration. I ran a "mobile" detailing business for about 2 years and did ok at it, meaning my expenses were very low and I made enough money to support it and myself. I had a passion for detailing and cooking. I always seem to have multiple hobbies/interests but several have remained with me my whole life including the aforementioned. I took a job in a restaurant and worked there until I graduated and took a sales position.

One thing led to another, the economy went south, blah blah and here I am as an assistant manager at a retail location.

The pay is decent for our area (15/hr) but I did not go to school and God did not bless me with a sense of business skills to make 15/hr working for someone else!

I had been dreaming of opening a restaurant but after spending several months researching and talking to owners I realized that at this time the financial (readEBT) burden is too great for someone in my position with very little capital. I think my break even analysis would be $15,000 gross per month to cover everything.

After doing some more thinking it occurred to me that going back to detailing could be a reality. I have continued to detail my dads truck for the last few years as well as other random vehicles here and there. The low start up cost is appealing but what really gets me excited is taking pride in my work.

At my current job it is very cyclical, you never really start or finish anything so retail is very unrewarding. I am in charge of all of the operations and HR but I have been doing that for years and there is no challenge left. We recently had a store concept change and the work load has lightened and there is no challenge in the new system because there really is no system. It's a bit complicated without getting into specifics but the take away point is this: I'm extremely bored there and I LIKE to work. I LIKE to be busy, I NEED it. I'm always doing something around the house because of a NEED to stay busy.

When I was detailing cars there was a satisfaction when you took the owner out and showed him/her their "new car". I was proud of the work I did and I felt like I was accomplishing something in life. I want that feeling back.

Apologies for the book I just wrote but it leads to where we're going.

I would love to quit tomorrow and start detailing full time but the reality of financial survival is very low. My expenses are very little but they are an unfortunate reality. I have very little debt so I could afford to take some on to make this business work. I would like to start detailing part time to bring in some revenue and set up a client base but am somewhat limited as retail is an alternating schedule of days and hours. If I work at my retail job it would be hard to detail cars that same day due to the hours/location so this leaves me with 2 days a week. I spoke to my head manager about going to 4 days a week and that ruffled some feathers so I had to make up a reason as to why i asked, so that's out.

Here is the breakdown of what is needed to survive financially.

Monthly salary of $1900. This covers everything for me personally, house payment, food, gas, bills, etc. I live alone and try to live as frugal as possible but this has to be in place to replace my current stream of income.

My projected break even on the business itself is as follows:

Vehicle loan (van) $150
Insurance $250
Loan/credit card repayment $100
Fixed costs: $500

Chemicals $75
Advertising $50
Fuel $300
Tax Prep $50
Misc/petty $100
Variable costs: $575

Estimated monthly expenses $1075 + $1900 salary = $2975/mo or roughly $3000.

I'm hoping that the insurance costs for the vehicle and liability will be less that 250/mo but I wanted to estimate high. The loan repayment of $100/mo is for purchasing the rest of the items/chemicals I don't have and will run an estimated 3-4k. The work van is around $6k.

Water reclamation is the other item I haven't finalized because it seems to be an elephant in the room with other detailers. I looked on the ECHO EPA website and no detail or shop operations have been audited in the last few years but I don't want to be the first. That being said I don't want to sink alot of cash into something that is not a necessity. Waterless washes are a reality but a pressure washer is still needed imo.

I'm hoping I estimated a little high but its better to do so rather than go into this unrealistically. I'm sure theres something I haven't calculated for on here and would love a critique.

My targeted weekly sales need to be $1000/week to make this work, that gives me 41 weeks to make money and some to rest. If I detail 52 weeks/yr the break even is $790.

If you've stuck with me this far as I tend to be a bit long winded.

Is it unrealistic to gross 800-1000/wk in this business? I know that you cant get there without hard work and busting your butt daily promoting yourself but is that a realistic number to quit your job for?

1000 may not seem like a lot but if you had to quit your job TODAY and start bringing in 1000/wk could you do it? Would you want to? Should I try and make a safety net of about 6k to cover myself until this gets going?

I know there's a lot of questions in here but I appreciate any answers you can help me with.

[AutowerxDetailing]

Stumbled across this while looking for something else... I'm not sure where you are located but if you would consider relocating I know of a great job opportunity detailing in Tennessee for a great company.

OK - Have CA hookup - Now need Middle TN Ops Manager!

[Meghan]

Wow I can tell by your writing that you are a person is detail so I know you must be one heck of a detailer!!!
I do not know where you are located so would be hard to say what going rates would be, as that really can matter. It is too bad you cannot work a few days a week to build up your business while still keeping your job.
Hopefully the guys will all lend some advice.

[arjo.reich]

I mentioned to him to search for that post in a PM since it wouldn't require relocation and is a great fit for Anthony@B&BDetailing as well.

...and that the Nashville Cars & Coffee event is this Saturday, which would be a great way to network with future clients.

Lucky Joe,
Wannabe Detailer

Sent from my HTC DNA

[jpegs13]

Well written Zip. I wouldn't quit until you've grown to a size that will sustain your lifestyle.
Detailing is "hit or miss". The economy dictates how much you will get and how many clients you will have. I really don't think you can figure on a weekly income from it. You will have ebb and flows and perhaps at the end of the year you will have met your desired income, but some months will be leaner than others. You'll need a cushion in the bank to get you through the lean times. It's very unpredictable. Right now at your current job you KNOW what you get at the end of the week. Quitting doesn't seem logical, YET. Your drive and desire to excel will most certainly speed you along the way, but don't put the cart before the horse. Just like any start up business, the first few months (years) will require a lot of sweat, tears, and hours, but you seem willing to give it a go.
Bottom line, you won't know until you give it a shot. Good luck!

[VP Mark]

I would warn you that starting from nothing and going to $1,000 per week quickly is going to be a huge challenge. I would recommend that you go down to part time at your job or another job, and push your detail business every single second that you aren't working your second job.

This is a largely referral, networking, and smart marketing type of business. You are going need to have a nice website, get it ranked well in the search engines, whether paid or not, and be extremely aggressive to get to $1,000 per week within the first year.

[FUNX650]

My targeted weekly sales need to be $1000/week to make this work,

On paper...
Going from:
$15 per hour ($2400 a month pre-taxes)...To:
$25 per hour ($4000 a month pre-taxes)...Appears very doable.

that gives me 41 weeks to make money and some to rest.

Almost (3) three months of R&R each year!!!
Nice gig...If you can get it.

Should I try and make a safety net of about 6k to cover myself until this gets going?

Yes!! At least that much...IMHO.
(a 6-month-"safety net" is recommended for everyone...regardless their occupation)




Bob

[Dr_Pain]

I agree with Bob that a 6 month safety net is a must, especially in service oriented businesses.

In these uncertain time, with the "gloom and doom" and uncertainties of the Health Care Law you will see major direct fluctuations in employment (where employers will reduce hours and the number of employees to be under "threshold") and indirect fluctuations (rises) in the price of goods and services to offset the cost of the additional requirements/benefits (or penalties). Just look at what Five Guy burgers did! The price of everything is going up on "speculation", even before it takes full effect, which in turns leaves less for the "non-necessities" (and unfortunately the delegation of detailing your vehicle to a professional falls under the non-necessities).

Add the uncertainties around the world, which impacts oil futures, which then affect the cost of goods and services. Add the climate changes and natural disasters to the mix, and this can really paralyzes you in your decision making process. BUT you can't kill your dreams based on those "uncertainties", you just have to create a plan of action which will be as recession and speculation proof as you can make it.

[swanicyouth]

Good luck. If I was you I would do it if you love detailing like I do. I make decent money, went to school for 7 years, and have a job I really don't love. Money is holding me back from leaving it.

If I could start all over I would do something I love like detailing.

[Pureshine]

Good luck with your business . One of the reason I did mine out of my garage very low over head.