Piggy back business!

F

FijiFresh

New member
Hello Everyone,



This is my first true post and, naturally, I'm looking to get some info and advice!



I used to detail at a high end automotive dealership when I was a teenager and found that there was something about making a car beautiful that just made me smile inside. It has been a hobby if mine for the last 8 years.



Now I want to do it full-time. Coming from the safe and secure world of Corporate Security Management where my cheques were cut by the municipality and my future secure, this idea of entrepreneurship is new ( and a little scary ) to me. But it was time for me to get uncomfortable while I was still young and be happy again.



Here's the skinny on my plan folks... Let me know how good (or bad) this idea is!



I have been in talks with a very successful coin operated car wash owner who would like to venture into the world of hand wash and eventually full blown detailing. I would like a place to call "base camp" where I can do wash an wax services on a "walk in" or appointment basis and also detail my clients cars while I build my reputation and thusly my business.



This space and all equipment will be made available to me for the exchange of my services and ofcourse a cut of the profits.



I am still planning on Having a mobile operation down the road and all that profit would be my own. But the shop will help keep me and my family alive in the winter.



THe business will fall under the business owners umbrella, so as to simplify licensing permits insurance etc. But I will handle all my own finances and schedule etc. A business within a business if you will.



So.... Thoughts?
 
That's sort of how my shop is set up. I used to work mobile part time but I got too busy and decided to go full time. The company that I work/worked for while detailing part time rents cars and has a small used car lot...I worked out a deal with them that allows me to work out of one of their spare bays without paying lease (they also pay for supplies and provide me with a van for my mobile jobs). Of course they take a cut of whatever I bill out but the percentage that they take is far less than the overhead I would have if I had to lease a shop, pay insurance, supplies, van maintenance, etc.



So far it has worked out well, the only downside is that I am techniquely still an employee even though I set my own rates, hours, do all my own advertising, etc. I would rather be a sole proprieter because of the tax advantages, but the way it is set up now has eliminated a lot of the risk and I still have a lot of the same upside. If I don't book work I don't get paid, but I also don't have to worry about paying the lease, insurance, and everything else. It has also worked well for them too because other than supplies they really have no additional expenses. They also benefit from having an on-site detailer to detail their used cars for the car lot.
 
That sounds like a sweet set up. I would still want to enjoy the tax benefits so I will be incorporating and both of our businesses will most likely enter a co-op style relationship where we trade services for the means to provide those services. Benefits of both... But there are a few legal consultation costs I have to swallow (gulp).



Have you been able to grow your business to where you want? or do you feel like you've been stifled a bit by this cooperative relationship?



Since you're doing it now... I kind of want to pick your brain a bit. :P
 
I don't feel stifled in any way except for the tax issues. The business I partnered with has been in business for 50 years and has a good reputation so being linked to it has been good for my business. My shop is also on the busiest street in town right in the middle of 6 or 7 dealerships so there is a lot of opportunity for both retail and wholesale work. This will be my first summer working full time, but I expect to have more work than I can handle.



I'm sure the legal fees are tough to swallow up front but probably worth it. We drafted an agreement but it was not run through lawyer.
 
My shop is on the same physical property as a coin op car wash. My shop doesn't have a wash bay, so having the car wash so close is very important. Being partnered (or maybe associated is a better word) with the wash has been very beneficial. The wash has an excellent reputation in my city, and has been around for over 20 years now. I have been able to save a LOT of upstart costs by doing things the way I have.



If I may ask, what legal consultation costs do you need to swallow ?
 
I would like to have our final agreement notorized and open for discussion following 12 months of operation. This way everyone is forced to be honest about everything. I would love to own my own shop with my own name and such but i am trading that level of autonomy for an already present infrastructure and an established client pool.



If after 12 months one of us is getting the short end of the stick, i want there to be the the possibility of us fixing it without indicent.



Also, we need to ensure what were doing with insurance is entirely legal as im the "Garage keeper" and he is the property owner.



It seems as though every point at which our interests or liabilities cross over there are long reaching decisions to be made.
 
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