As we’ve been talking about hosting our first clinic, it got me thinking about all aspects of detailing and business ownership. I frequently see people here who are thinking of opening their own business and it inspired me to share some thoughts and lessons from our first official year in business.
First though, a little back history. I believe to understand where you’re going, you need to understand where you’ve been. So to understand Detailed Reflections and our story, the history becomes important.
I have a successful career as a firefighter/paramedic. Detailing for me has never been the way to “pay the bills.” What my career provided for me though was a means to explore something that I’d always wanted to do with minimal risk...owning a business.
Like many, I started detailing my own cars. Once friends found out that I did that, and could do it well they started asking for “help” detailing their cars. In other words, they asked me to detail their cars. As I went along, I learned all the time. Suddenly I found myself finally feeling confident I could do this and charge money for it. Not to mention, I got tired of giving away time frequently. Like many, I have a family and activities I enjoy.
Next thing I knew, I was collecting cash for detailing cars here and there. I realized how much time and money I kept reinvesting. New product, tools, etc. At that point the idea was hatched that I would go out on a limb and open my own business.
I’ve use the “I” a lot so far, and there’s a reason for that. When I talked to my wife about opening a business, she suggested I partner with the husband of someone she works with. He was working as a detailer at a small shop that did production detailing. Think more car wash than true detailing.
I was a little apprehensive about bringing someone else into the mix. Little did I know it would be one of the best things I could do and the strength of a friendship born through a common interest and business venture. After some conversation over dinner, “I” became “we.” He didn’t have the financial means to invest in everything needed to take on business ownership, but he brought an incredible work ethic with him and has grown tremendously in our time working together. I still hold ownership (for now) but he’s every bit of a partner a business owner could ask for.
This was lesson one. Don’t be afraid to take a chance. It might not work, but it just might lead to the best decision you’ve ever made. To watch Marquis grow in his craft has made it worthwhile. His knowledge of the business side is growing and his worth ethic is among the best I’ve seen.
Now that we had a legal LLC, it became a game of constantly navigating new tasks. Paying sales tax, tracking EVERY expense, scheduling, acquiring clients, ordering product, shopping for price. The list goes on.
Which brings us to lesson two. Track EVERYTHING. Literally, save every receipt. Track mileage. Be diligent in recording expenses. You want to know where every dollar is going. You’re not spending, you’re investing. Most of the money we take in goes back to the business. Advertising, product, etc. You also want to know if you’re profitable.
Lesson three...it takes time to be profitable. You’re going to make ordering mistakes. You’re going to need to grow your equipment to set yourself apart. You’ll need to try different products to see what you like and what you don’t like. You need to set yourself apart from the competition.
Lesson four...don’t sell on price. You can easily get sucked into a low cost bidding war. Some people will walk because they can “get it cheaper elsewhere.” Let them go. The price customer isn’t likely to become a client, and they usually expect the most for the least. If you don’t value your time, product and knowledge who else will? That being said, don’t gouge people because you can. It’s poor practice and will bite you.
Lesson five...clients and customers are different people. A customer is a one time transaction. A client is multiple times. They come back. They talk to people. They engage with you. These are who you want to be your clients. It’s a mutually beneficial relationship. Customers are still good revenue, but don’t provide the continued returns that a client does.
Lesson six...know your costs. This is a cost of operating. And it’s how you establish an hourly rate to estimate pricing. How much is your time worth? How much do you pay your employees/partners? How much is your product? How much does your business need to make to grow? How much are your expenses (rent/insurance/phone/etc)? Once that’s done, work it backwards. You should have an hourly rate you try to achieve on every job.
Lesson seven...sometimes you win. Sometimes you lose. In the end, make the client happy. There’s jobs we’ve misquoted and done for little to nothing at the end of the day. There’s jobs we’ve made more than we thought. Keep the client happy. It’s how they return. Don’t sweat the small things. A job that doesn’t make money is simply a mistake. Learn from it.
Lesson eight...be honest with customers and clients. Under promise and over deliver. It’s better to wow a client with more than they expected than to disappoint them by promising something you couldn’t deliver. An unhappy client will tell everyone.
Lesson nine...don’t give clients what they didn’t pay for. Does this mean never throw someone a bone? Not at all. If someone pays for a one step polish, that’s what you need to give them. You can’t do a two step for the price of one. You’re not doing your business any favors. That being said, if a small spot needs more attention, just do it. The customer will thank you and it’s a few minutes.
Lesson ten...buy smart. Research products. Reach out to vendors to see what they can offer you. Reducing costs is a good way to improve profit margin without increasing costs to clients and customers. You owe it to yourself, your business and your clients. It’s how you offer a fair product at a fair price.
Lesson eleven...you’ll make mistakes. Own them. Fix them. Learn from them. Move past them. That’s all there is about that.
Lesson twelve...growth takes time. Experiment. It’s not easy to acquire clients as the new guy around. Word of mouth is the best advertising. Incentivize people to send business your way. Try new things. Network. You never know what great connections you’ll make. Talking to people is the best way.
And thirteen...have fun. If you’re not enjoying it, it’s not for you. The friendships you’ll make are invaluable and don’t have a price on them.
And on trying new things, we are working on a clinic! All of the topics here will be in play. Well, except price. The clinic is free. But the networking, sharing knowledge, etc. All will be on display.
If you’re thinking about owning a business...do it. There’s enough work to go around and it’s rewarding. Even if you weren’t successful, you will have done something few people dare to do!
Anyway, just some rambling thoughts from a first year business owner. Hopefully you guys will be putting up with me for a while!
Question
shane@detailedreflections
As we’ve been talking about hosting our first clinic, it got me thinking about all aspects of detailing and business ownership. I frequently see people here who are thinking of opening their own business and it inspired me to share some thoughts and lessons from our first official year in business.
First though, a little back history. I believe to understand where you’re going, you need to understand where you’ve been. So to understand Detailed Reflections and our story, the history becomes important.
I have a successful career as a firefighter/paramedic. Detailing for me has never been the way to “pay the bills.” What my career provided for me though was a means to explore something that I’d always wanted to do with minimal risk...owning a business.
Like many, I started detailing my own cars. Once friends found out that I did that, and could do it well they started asking for “help” detailing their cars. In other words, they asked me to detail their cars. As I went along, I learned all the time. Suddenly I found myself finally feeling confident I could do this and charge money for it. Not to mention, I got tired of giving away time frequently. Like many, I have a family and activities I enjoy.
Next thing I knew, I was collecting cash for detailing cars here and there. I realized how much time and money I kept reinvesting. New product, tools, etc. At that point the idea was hatched that I would go out on a limb and open my own business.
I’ve use the “I” a lot so far, and there’s a reason for that. When I talked to my wife about opening a business, she suggested I partner with the husband of someone she works with. He was working as a detailer at a small shop that did production detailing. Think more car wash than true detailing.
I was a little apprehensive about bringing someone else into the mix. Little did I know it would be one of the best things I could do and the strength of a friendship born through a common interest and business venture. After some conversation over dinner, “I” became “we.” He didn’t have the financial means to invest in everything needed to take on business ownership, but he brought an incredible work ethic with him and has grown tremendously in our time working together. I still hold ownership (for now) but he’s every bit of a partner a business owner could ask for.
This was lesson one. Don’t be afraid to take a chance. It might not work, but it just might lead to the best decision you’ve ever made. To watch Marquis grow in his craft has made it worthwhile. His knowledge of the business side is growing and his worth ethic is among the best I’ve seen.
Now that we had a legal LLC, it became a game of constantly navigating new tasks. Paying sales tax, tracking EVERY expense, scheduling, acquiring clients, ordering product, shopping for price. The list goes on.
Which brings us to lesson two. Track EVERYTHING. Literally, save every receipt. Track mileage. Be diligent in recording expenses. You want to know where every dollar is going. You’re not spending, you’re investing. Most of the money we take in goes back to the business. Advertising, product, etc. You also want to know if you’re profitable.
Lesson three...it takes time to be profitable. You’re going to make ordering mistakes. You’re going to need to grow your equipment to set yourself apart. You’ll need to try different products to see what you like and what you don’t like. You need to set yourself apart from the competition.
Lesson four...don’t sell on price. You can easily get sucked into a low cost bidding war. Some people will walk because they can “get it cheaper elsewhere.” Let them go. The price customer isn’t likely to become a client, and they usually expect the most for the least. If you don’t value your time, product and knowledge who else will? That being said, don’t gouge people because you can. It’s poor practice and will bite you.
Lesson five...clients and customers are different people. A customer is a one time transaction. A client is multiple times. They come back. They talk to people. They engage with you. These are who you want to be your clients. It’s a mutually beneficial relationship. Customers are still good revenue, but don’t provide the continued returns that a client does.
Lesson six...know your costs. This is a cost of operating. And it’s how you establish an hourly rate to estimate pricing. How much is your time worth? How much do you pay your employees/partners? How much is your product? How much does your business need to make to grow? How much are your expenses (rent/insurance/phone/etc)? Once that’s done, work it backwards. You should have an hourly rate you try to achieve on every job.
Lesson seven...sometimes you win. Sometimes you lose. In the end, make the client happy. There’s jobs we’ve misquoted and done for little to nothing at the end of the day. There’s jobs we’ve made more than we thought. Keep the client happy. It’s how they return. Don’t sweat the small things. A job that doesn’t make money is simply a mistake. Learn from it.
Lesson eight...be honest with customers and clients. Under promise and over deliver. It’s better to wow a client with more than they expected than to disappoint them by promising something you couldn’t deliver. An unhappy client will tell everyone.
Lesson nine...don’t give clients what they didn’t pay for. Does this mean never throw someone a bone? Not at all. If someone pays for a one step polish, that’s what you need to give them. You can’t do a two step for the price of one. You’re not doing your business any favors. That being said, if a small spot needs more attention, just do it. The customer will thank you and it’s a few minutes.
Lesson ten...buy smart. Research products. Reach out to vendors to see what they can offer you. Reducing costs is a good way to improve profit margin without increasing costs to clients and customers. You owe it to yourself, your business and your clients. It’s how you offer a fair product at a fair price.
Lesson eleven...you’ll make mistakes. Own them. Fix them. Learn from them. Move past them. That’s all there is about that.
Lesson twelve...growth takes time. Experiment. It’s not easy to acquire clients as the new guy around. Word of mouth is the best advertising. Incentivize people to send business your way. Try new things. Network. You never know what great connections you’ll make. Talking to people is the best way.
And thirteen...have fun. If you’re not enjoying it, it’s not for you. The friendships you’ll make are invaluable and don’t have a price on them.
And on trying new things, we are working on a clinic! All of the topics here will be in play. Well, except price. The clinic is free. But the networking, sharing knowledge, etc. All will be on display.
If you’re thinking about owning a business...do it. There’s enough work to go around and it’s rewarding. Even if you weren’t successful, you will have done something few people dare to do!
Anyway, just some rambling thoughts from a first year business owner. Hopefully you guys will be putting up with me for a while!
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