mobile and shop?

**southerndetail** · 12-09-2007, 07:27 PM

I`m at a point in my career and life that I have to make a decision on what direction I want to take my biz. I am strictly mobile right now with two rigs, a full time employee(my PDR guy) and a part timer. I really want a home base other than my garage, I`m overflowing out also I want to have my personal space. It has gotten to the point where I have enough clientèle for one rig full time and the second maybe twice a week. This is my plan, take it down to one mobile unit with two bodies running it and putting myself in a shop. Heres the problem I`m going to need @ least 5 grand to get started, and the shop I am looking at is $1700 a month but its in a great location making me think that it wouldn`t take long to turn it around. Also most of my clients I have now only want me to work on there cars. Oh and I have a second child coming in 2 months, I am 28 so I think that it is time to make some solid moves. Any kind of input will be helpful.

**Pander5** · 12-09-2007, 07:53 PM

I would suggest you completely cost out the shop and look at the numbers. I like your idea though. Would the customers that insist on you having their work done be willing to come to your new location? In other words, they now have you coming to them, no?

**southerndetail** · 12-09-2007, 08:10 PM

I do come to them now, but it is usually just for weekly or bi-weekly washes. So they probably would not be able to come to me.

**Troy@Protekt** · 12-09-2007, 10:01 PM

I think you have the right idea. Being mobile has definitely made detailing tougher for me over the years.

Yes not having the over head is nice but a shop has more potential IMO. Weather isn`t as much of an issue, you`re not losing time driving place to place...

It sounds like you will be able to do both which is great. Go for it.

**gator1** · 12-10-2007, 06:27 AM

I don`t no how the economy is in N.C. ,but when you open a shop theirs alto of cost that is involved.

**Brenton** · 12-10-2007, 06:39 AM

The benefits of a shop in my case:
1. Less weather dependent. You still get cancellations, but not as dramatic. It is amazing what weather people will ask you to wax their car in.
2. Credibility. Certain customers like the sense of location you offer.
3. Visibility. Depending on the location, the shop offers more advertising than you could pay for out of a mobile ad budget.
4. Good working conditions. A shop is (almost) always warm, has a bathroom, has hot water on demand, has an even floor, has a place to do paper work or sit down for lunch.
5. Retail opportunity. Having some products allows an opportunity to teach customers about detailing and make some retail sales.
6. Product proliferation. Space has allowed me to become an expert on problem solving and to always have a chemical or solution nearby to tackle weird and wildly variant issues.
7. Real estate development. Shop-based business will allow you to look at owning down the road. No matter what happens to the industry, have your own place would give more value to your business.
8. Overflow work. I make my shop more efficient by taking on lower priority dealer cars that can sit in my shop for a few days until they get done. If retail comes in, they get set aside; if a cancellation comes, there is always something to do.

Disadvantages:
1. Low season. In many places there is a lull in the season, and the cost of the shop maintenance in this season is quite high. The extra rent and insurance and phone and alarm and (potentiallly) staff and heat and lights add up.
2. Cost. As I mention above, there are great costs.
3. Customer service time. Gaining visibility means maintaining more customers which can be costly. You will probably charge more than many can or will pay, so you have to weed them out. In spring, I mostly do technical work and deal with customers. But hiring extra shoulder season help is okay (see below).
4. Overhead and casflow. You may be able to handle the cost of a business, but there are cashflow issues--more dealer work, increased staff, more accounts, more products etc.
5. Economic dependency. No matter what happens to the economy now, you can sell your van & truck and take a job at Wal-mart changing oil and do a little on the side. You get into the real estate, and you are committed to rent/lease or to the real estate market.

Just some thoughts.

**RANDAL** · 12-10-2007, 08:30 AM

Brenton has got excellent comments until the DISADVANTAGE #5, you WONT make a living changing oil at walmart.( I was part time with 2 other busineeses going on, no time withthe family). $1700 a month sounds like a lot for rent, but if in good location should pay for itself. I DONT detail for aliving, my plan is working outside thehome/farm with my wife, using little money out of business account, trying build that account balance up for my sons college fund and maybe have them take over as they get older. 2-3 sons teting to farm where dad doesnt have enough wont work in 10-15 years, s othisway they have something else to do to make money instead of working in local hog confinements. Enough of my rambling, niceto see positive post from BRENTON.

**southerndetail** · 12-10-2007, 10:04 AM

The economy in Charlotte N.C. is really good right now alot is happening here. We just got a light rail that rides by the potential shop every day so that would be a great advantage. It almost seems to good to be true not only is the shop suited perfect for a detail biz, it is still on the market and has been for the last 3 months that I have been considering doing this. It is alot to think about but in the long run I am trying to build something that hopefully my son will be able to take over.

**Poorboy** · 12-10-2007, 10:14 AM

I`ve been on both sides of the game and mobile was a lot better for both $$ and piece of mind.
If your mobile business is doing well, build it up even better and add more trucks and services (PDR , clear bra etc.) Having a shop is a lot of constant overhead and then you really need to have an extra person to answer phones, questions and take care of the bills that never seem to end.
As much as having a shop can look advantageous, (having a bathroom, hot water, and be weather proof) there are many headaches and burdens that are equally not worth it. If you can get a month to month lease, it might be worth a shot, but if they insist on a long term lease, you might want to give this a lot of thought and consult a lawyer too when you are presented with a lease.

**Brenton** · 12-10-2007, 11:09 AM

Originally Posted by RANDAL

Brenton has got excellent comments until the DISADVANTAGE #5, you WONT make a living changing oil at walmart.( I was part time with 2 other busineeses going on, no time withthe family). $1700 a month sounds like a lot for rent, but if in good location should pay for itself. I DONT detail for aliving, my plan is working outside thehome/farm with my wife, using little money out of business account, trying build that account balance up for my sons college fund and maybe have them take over as they get older. 2-3 sons teting to farm where dad doesnt have enough wont work in 10-15 years, s othisway they have something else to do to make money instead of working in local hog confinements. Enough of my rambling, niceto see positive post from BRENTON.

You are, of course, precisely right. You can`t make a living at Wal-Mart.
What I meant was that if an economy tanks (which it could in the U.S.), stripping down or downsizing a mobile system is a lot easier to do than a shop system.

**Poorboy** · 12-10-2007, 11:16 AM

Originally Posted by PEI Detail

You are, of course, precisely right. You can`t make a living at Wal-Mart.
What I meant was that if an economy tanks (which it could in the U.S.), stripping down or downsizing a mobile system is a lot easier to do than a shop system.

yes it`s looking that way, and the worst part of having a shop was people driving in, asking for you to stop what you are doing , take a look at their vehicle, then ask if you can work on it now

or was it stopping what you are doing to answer a question on the phone

**dave40co** · 12-10-2007, 11:42 AM

I have a friend who just moved his interior plantscaping business from his house to a warehouse. He had to spend a lot of money that he didn`t plan on remodeling the space. There is also the overhead that comes with a shop such as elec., water, gas for heat and telephone. Add those things to your rent and it ends up being much more expensive than you first thought. I would tough it out another year at the house and reevaluate it next year to see where you stand. At 28 you have a lot of productive years left so I wouldn`t rush it. I wish I was 28 again, even 38 would do!

**Poorboy** · 12-10-2007, 12:18 PM

Originally Posted by dave40co

At 28 you have a lot of productive years left so I wouldn`t rush it. I wish I was 28 again, even 38 would do!

I hear that

......

...life before marriage and kids

:blue::white:

**southerndetail** · 12-10-2007, 02:44 PM

These are great suggestions and I will be thinking long and hard about this. Unfortunately I may have to lay off my two employees until spring, it is very slow and I am becoming very broke. If this shop was meant to be than it will be around when I decide to make my move.

**dr_detail** · 12-11-2007, 05:09 PM

Do the #`s -- write it all down, everything -- rent, phones, payroll, taxes, insurance, utilities, loan payments (read through this all before you ask), materials, advertising, office supplies, internet, I mean everything. Put it all together along with your income and expense reports from the last 3-5 years combined with I&E projections for the next 5 as well as your ideas on how your business is going to grow, and you`ll have a solid business plan. With this solid business plan in your hand, you will see exactly how much money you really need to open a shop ($5000 IMO is nowhere near enough). Informed with this information, and this plan in your hand, you will be able to apply for a business loans which will provide a more realistic amount to launch a shop or expand your opperational needs -- say $50, $100, $250k?

just my $0.02