Opening a business maybe

[the Camaro show]

So guys I’m 18 and I’ve gotten really good at detailing and doing paint correction. I was thinking of opening some type of business to make money but the issue is I can’t really do any large operation at my house other then doing a few cars for neighbors. And I obviously can’t rent a building I thought of doing like a storage unit I’ve seen some people do. What are your guys tips and how should I go about it I plan on doing it in the summer and a few cars during the week.  And how do I go about doing the legal part

Edited February 3, 2018 by the Camaro show

[shane@detailedreflections]

Take a few minutes and search my post history. You’ll find many answers there. I’ve been pretty open about how I run my business and the things I’ve leaned along the way. I’ll answer any questions along the way...just ask. 

[pirahnah3]

A business is a rough venture, usually early on they lose money. If you are prepared for that it is much easier to handle if/when it happens. There are tons of ideas/advice on what you should do and how to do it around here. 

[shane@detailedreflections]

I was on my way out when I posted initially which was why I suggested searching my history. I have a little time now, so I’ll get into it. 

 

Jim brings up a valid point. Your business WILL lose money up front, at least if you’re doing it right. You’re constantly going to reinvest in the business. It’ll be advertising, tools, equipment, product, etc. There’s a ton of ways to improve your craft, and time is money. Spending money to become more efficient isn’t a poor business decision. Sometimes, it’s hard to be willing to take a loss. 

 

As as far as the legalities, you’ll need to set up your business in accordance with the laws of your state. I formed mine as an LLC. After that it was filing with the state and federal government. Once that’s done, you start to collect sales tax. Payments need to be made timely, and you need to collect. You have a business decision to build tax into your pricing or make pricing plus tax. We use quick books for accounting purposes. Everything gets tracked. EVERYTHING.  You’ll want to talk to your accountant about how you should be recording things.

 

You’ll want a website. Get a good camera to take high quality photos. Have a logo designed. Things like that. Appearance matters. You’re entering a professional realm, not some “guy with a polisher.”

 

You will spend time negotiating with vendors for the best pricing. You owe it to your business and profit margin to do this. Less expensive product allows you to make more money without charging more. Purchase smart. 

 

The business side of it isn’t really complicated, it’s just learning process. The complicated part is acquiring clients. I call them clients as opposed to customers due to a personal philosophy. A customer comes in and leaves. One and done. Clients are people you have relationships with, repeat business and all that. 

 

How do you price your product?  Our business is myself and one other guy. I know what he costs me per hour. I have a feeling for product costs. I need to make a few dollars, and the business needs to retain capital for reinvestment and operating expenses. This means my shop rate is $75-85/hour. That’s how I price my jobs. Sometimes it’s less, sometimes more when all is said and done. But that’s the target. 

 

We don’t discount our product other than than an occasional rare sale. I don’t want to train my clients to wait for sales. We offer a fair product at a fair price. If we don’t value our work and chase jobs based on price, we hurt everyone but mostly we hurt ourselves and our profit. We aren’t afraid to lose a job if it comes to a price war. Generally speaking, those aren’t the clients we want anyway.

 

Be knowledgeable about your product and process. Be honest about the results you’re going for and can obtain. Undersell. And over deliver. It’s better than over selling and under delivering. Be responsive to clients. Communication is key. Knowledge is power. It’s true on both sides. The business and the clients.

 

Be fair to your clients. Know you will make mistakes. When you do, own them and make it right. Even if it’s not totally on you, a client will appreciate you going the extra mile. That being said, don’t three step a vehicle when the client pays for one step. If there’s a small spot that needs some work, get it done. But don’t undersell what needs to be done. Be fair in your expectations and qualify from the client what they’re looking for. That way everyone is on the same page. Oh, and put it all in writing. It’ll protect you and them.

 

And friends...they’ll always want the “hook up.” Sure, toss them a small bone. Your true friends won’t ask you to work for nothing. The good ones will support you by paying a fair price. Mixing business and friends without defined boundaries is a good way to ruin both. 

 

Work hard. Before you know it, clients will be coming to you and giving you work without asking the price. This means you’ve succeeded in your reputation.  Strive to keep it. 

 

Let me know if you have questions. I’ll be happy to answer them. 

[Thorsager]

Shane explained it well. What are you future plans? Are you going to college/trade school? I would continue doing what you are doing through the summer. Focus on pricing and the services that you want to provide. Who is your competition and what are there services? What do they charge? Who is your target market? You may want to develop a business plan. This will give you direction. The U.S. Small Business Administration web site has a good outline for a business plan. I learn something from every detail that I do.

 Always keep learning and improving.

[the Camaro show]

Yes I’m going to a Jesuit university that is local and playing D2 golf for them and majoring in pre dentistry and then going into orthodontics 

[FrozenWS6]

To add to what Shane was saying.

Trying to work for yourself means you won’t always have a guaranteed paycheck. So take note and add the expenses of your existing bills to what you need to bring in every day to pay everything. I know exactly what I need for my minimum daily sales to cover everything for the business and then pay myself to cover my existing bills.

Be sure to look at the big picture. Business insurance can get very expensive. That way you’re covered if a car were to get damaged.