Things to watch out for and to avoid when starting a new business?

E

Eastcoastdetail

New member
Since most of you guys have been in business longer than i have, what are things that people should watch out for when you first start out?
 
If you haven't already, you'd be wise to consult a CPA and a lawyer about the requirements for operating a business in your local area. Also make sure you have a business plan in place and stick to it.
 
charge your price from the beginning and stick to it makes for a easier road down the line. im also a firm believer in know your products and know them from experience it will just strengthen your knowledge to sell your services to customers
 
Jean-Claude said:
Don't overspend.
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I agree completely.



Most detail business don't make it to month 6, so buy a used electric pressure washer, used buffer, used vacuum cleaner, used air compressor, and the bare minimum in products.



If you fold by month 6, you should get 80 - 90% of your investment back. If you make it to month 6...upgrade to better equipment!



And make sure that you do great work on interiors. That's what gets you referrals. Soccer moms especially will refer anyone who can get their suvs/vans sparkling clean inside.
 
Good luck, "don't overspend" is right, particularly with advertising. I've got a marketing background and unfortunatly tend to shoot from the hip when it comes to doing advertising and to this day still feel that my money is best spent with google adwords and a website vs conventional ad methods.



Consider your target demographic and absolutely stick to your pricing scale. People will justify high price with quality (especially if you have a site that can show off those impressive restorations).



This year I was slammed with a ton of opperational costs that I wasn't aware of, so besure to have legitimized yourself with your local governments so that you stay in the green.
 
602rwtq said:
I agree completely.



Most detail business don't make it to month 6, so buy a used electric pressure washer, used buffer, used vacuum cleaner, used air compressor, and the bare minimum in products.



If you fold by month 6, you should get 80 - 90% of your investment back. If you make it to month 6...upgrade to better equipment!



And make sure that you do great work on interiors. That's what gets you referrals. Soccer moms especially will refer anyone who can get their suvs/vans sparkling clean inside.
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Solid advice! Also stick to proven products that have wide range. Lots of times people get excited about new (and hyped) products.
 
I would suggest taking some night courses in business management if you don't have any prior experience in managing a business and a marketing class would be a good idea as well. I was a restaurant manager for many years prior to starting my detailing business so I already had a good idea how to run a business. If I hadn't been a manager, I'm not sure I could have handled the business end, especially in the early days. Plus I had taken a couple marketing classes in college and participated in marketing my restaurant.
 
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