Starting a business, need info on licenses, insurance, etc.

[kpagel]

Hello all, I'm looking to start my own mobile detailing business and need some info. First a little background (if you're uninterested, just skip to the second paragraph)... I've always wanted to start a business of my own, but I was always scared of taking the risk. What if I don't get customers? What if I'm not good enough? That sort of thing. Anyways, I had basically decided that I wasn't going to get into my own business and was able to score a job with a local mobile detailer through the owner of my local detail supply shop. He was able to get me in touch with a guy that needed help. I started working for the guy and it wasn't long before I realized this guy had absolutely no idea what he's doing. He has very little knowledge (I know much, MUCH more), doesn't care about professionalism, and he's all around just really cheap and likes to cut corners. I've been working for the guy for about two months now. The only reason I've stuck with him for this long is he is supposed to buy a second truck which I will run and we worked out extremely fair pay splits. Anyways, I'm now tired of waiting for him to buy a second truck. I have a lot of people (mostly friends and friends of friends) that want my services, but I'm unable to help them out because I'm still working for this guy as his "assitant" doing work that I could be doing on my own for slave wages. Other complaints about him: he refuses to buy water retainment systems, he shows up to jobs unprepared (i've had to go to AutoZone many times to pick up basic things like wax applicators, etc), he's unlicensed and uninsured. I can go on and on with whats wrong with this guy, but I think you get the point. The thing that blows my mind is he has a pretty good customer base. He has regular customers in high end neighborhoods with BMWs, Mercedes', classics, and even a Lamborghini. I've now realized that if this idiot can do it, then I certainly can do it.


So now I'm looking to go mobile. I have the knowledge, skill, the desire to get keep learning in this trade, most of the chemicals and equipment I would need, and I guess, more importantly, the money to start up. I refuse to do something like this half-@ssed and I want to be completely legit. What sort of licenses do I need (I'm in Southern California, btw)? Is there a general "business license" that I get through my city, or does mobile detailing fall under some sort of specific area that needs a special license? What sort of insurance do I need? I think I've read before about something like car handler's insurance, is this correct? What are some of you guys paying and what companies are you using? Also, anything else I need to know about that deal with the legal and liability side of things?

I thank everyone in advance for their help.

[calgarydetail]

I know exaclty how you feel and what you are going through, its always though diguring out everything you need. As for licences and insuance and what not I woud contact your city. They should have a number on there web site that you can call or e-mail and they will be able to provide any info needed. I know in calgary i needed to know about licnecing as well as using a preset up coin wash as a place, they helped me out as well as gave me the contact info for other people i needed to contact. I would start by contacting your city.

[paradigm]

not sure if you should be concerned or not...but if he is uninsured you should be careful that blame isn't put on YOU personally if you cause damage to a customer's vehicle, etc. not sure if it by default goes to him anyway...but things get weird when lawyers are involved. make sure you are protected!!!!

(or if you yourself get hurt while on the job...you need to be covered by the employer i would think)

[Bobalude]

words of advice, becareful if you end up picking up those customers your current boss details. Sounds like it could get sticky when ti comes to 'stealing' (as perceived by some) customers.

otherwise, u can try looking up local detailers in so cal for advice/info/mentoring for details on local laws and the such.

I know one guy that used to do professional detailing in so cal, not sure if i'm allowed to post a link to him though?

[Scottwax]

You need to check with your city to see what is required. Here in Texas, all I needed to get started was a DBA (doing business as) certificate that cost me $6 and is good for 10 years. You also need to check with your state to see if you are required to collect sales tax. Usually if it is a straight service business and you sell no products, you don't have to worry about sales tax but some states do require it. Better to be on the safe side.

I believe you do have to use a water containment system in California if the amount of water you are using will reach any storm drains. Another option is using Optimum No Rinse Wash. You only need a gallon of water per car and there is no run-off to worry about.

Definitely call around on insurance, prices are all over the map. Carry at least $250,000 coverage and make sure it protects you not only if you damage a customer's car but if someone trips over your equipment or slips in water around the car you are cleaning.

I agree with bobalude about your current boss's customers. Not only will it make him mad but you also risk having his customers think poorly of you if they like his work and then you'll never get their business.

[kpagel]

Thanks for all the help so far. I'm not worried about any blame being put on me, as 95% of our jobs are washes. The occasional wash, clay, and wax is thrown in there, but I've never even buffed a car while on the clock with this guy. Also, I'm not even going to bother trying to get any of his customers, mainly because I have a few good ones lined up already. Also, most of his clients think that I'm just some kid who's helping him out and I'm being "trained" by this guy.

Anyways, thanks again for the replies. I'll be getting in contact with my city and trying to find out what I can.

[toyotaguy]

Kyle, I was told that I need a business license for every city I plan on doing business in....orange county one doesnt exist, I have to get and pay for like 10 cities to cover my area and a 25 mile radius!!! they are about 120 each or so....that was from the city person in charge of making sure people are licensed....but this person also said she doesnt care too much as its too much trouble to monitor it....

but I just found out from an accountant:

if you dont claim that you made money from doing something like washing or detailing a business' cars, and they claim a 1099 on you (paying you for your services as a deduction/write off, i think thats the number) then you will get NAILED for it....

as far as water reclaim goes, I dont see the need while using ONR....no water to clean up, nothing runs off into storm drains, etc. plus with ONR, i induce less marring on relatively clean cars compared to washing with water/soap/mitts etc, but with dirty cars, its a whole 'nother story!!! cant do a dirty car with ONR

also if you set yourself up as a car wash jockey, what the other guy is doing, then you will want a water tank, washer, etc...but if you setup as a detailer, seldom washer, then you will have no problem with ONR because if you do induce scratches/swirls, they will be removed by polishing....

[BigAl3]

hey kyle, i know your standards are high and you'll do just fine. good luck!

[mirrorfinishman]

So you want to become an entrepreneur?

To succeed at starting your own professional detailing business you will need to concentrate on business principles even more than you concentrate on the actual process of detailing. Keep in mind that 80% of your educational effort should be focused on learning more about what it takes to own and operate a successful and profitable business. The other 20% should be learning more about the actual process of detailing.

Get in touch with your local US Small Business Administration Office and find out what you will need to get started. You would also benefit from taking some small business courses.

Los Angeles District Office
330 North Brand, Suite 1200
Glendale, CA 91203
(818) 552-3215
http://www.sba.gov/ca/la/index.html

Santa Ana District Office
200 W Santa Ana Blvd., Suite 700
Santa Ana, CA 92701
(714) 550-7420
http://www.sba.gov/ca/santa/index.html

San Diego District Office
550 West C Street, Suite 550
San Diego, CA 92101
(619) 557-7250
http://www.sba.gov/ca/sandiego/index.html