The Emerging Mobile Auto Detailing Business Industry
It is no surprise the automotive industry has been steadily increasing over the years. Vehicles have higher costs, are more luxurious and are holding their resale value, among many other benefits. As a result, the need for auto detailing services has increased. Here is the blueprint on how to start a mobile car detailing business to get your foothold in this emerging industry.
It is important to note that your local market may expand further than to just consumers. As we have seen throughout many areas of the United States, many car dealerships, commercial fleets and home service businesses have increased the demand for mobile car detailing services. One of the greatest aspects of this type of business is that it has low barriers of entry and relatively minimal startup costs.
Identify Your Local Market
It is important to first understand the need for a mobile auto detailing business in your local area. Are there commercial car wash locations? Do gas stations have a free-standing car wash tunnel? Are there luxury car dealerships in your area? If you can answer yes to these questions, it is a safe bet to continue pursuing the concept of starting a mobile car dealing business.
If you drive through your local market and notice newer vehicles greatly outnumber the amount of older and damaged vehicles, your services could greatly be appreciated. It is even more of a benefit if you can identify many luxury and exotic vehicles. As we will discuss later in this article, targeting your proper demographic is an important aspect to your future success. It’s not to say that we only suggest you targeting more luxurious and exotic vehicles for your mobile auto detailing services, but there tends to be higher ticket sales for these types of vehicles.
Provide a few “Free” Auto Detailing Services for Friends and Family
Your success in a mobile auto detailing business will rely on several different factors. One of which will certainly be the quality of service you provide. As with anything in life, when people have a great experience and are pleased with the results, they will come back for more. Furthermore, they will also promote your business within their network of acquaintances.
Fine-tune your basic auto detailing skills on as many different types of vehicles as possible before you officially start your mobile car detailing business. I’m not suggesting you need to do a 4-hour detail on each of these vehicles, but gain some experience on a few different types of cars, trucks, SUV’s, vans, etc. One thing for sure is that the more knowledge and experience you can gain early on in this venture, the more successful you will be!
Decide on a Business Name and Incorporate Your Company
Now comes the fun stuff. This is the foundation of starting your car detailing business. Being creative when choosing your business name is a huge benefit. Spend some time online researching your local competition. Get a good idea of who is currently operating a mobile auto detailing business in your market.
Perhaps some of the business names of your competition sparked an idea in your mind. Write out a few business name options for your company and do your diligence researching throughout your State and County Business Incorporation Website to ensure that business name is not already taken. Register your business with the Internal Revenue Service (IRS) to apply for an employer Identification Number (EIN). Furthermore, it may be best to consult with a business attorney and local accountant to be properly guided if you are not familiar with these processes.
Get Your Business Licensed and Insured
Proper commercial licenses and insurance for your business are paramount. Depending on the city, county and state you operate in, certain types of licenses and insurance are required to be in compliance with local regulations. Contact your local Occupational License Office for more information.
Contacting your insurance agent is the best strategy for learning about your business insurance options. Some types of coverage are required by law and others make good business sense. Investigate your options by speaking with a professional you trust.
Open a Business Bank Account at your Local Branch
Now that you have officially started your mobile car detailing business, make an appointment at your local bank branch to meet with a Business Banker. They will help you open your Business Checking Account and possibly a Business Savings Account to begin building credit for your company. Bring your Articles of Incorporation paperwork along with your Employer Identification Number (EIN) that was emailed to you from the IRS.
Register with a Payment Processor to Collect Funds
Your business name and bank account has been established, now it’s time to register with a merchant for payment processing. When it comes to starting a mobile car detailing business, the most recommended platform to use is Quickbooks Online. This software is very cost effective, easy to use, and allows you to link your Business Bank Accounts to more streamline your finances and bookkeeping. Learn more about this great product at Quickbooks Online.
Consider Applying for a Small Business Loan – if necessary
If your car detailing startup is low on funds, considering a business loan may be a necessary option. Some entrepreneurs go the route of borrowing money from family members, but I advise against this at all costs. I’ve never been a fan of mixing family or friendships with business. In my option, it’s not worth the risk.
The more logical approach is to apply for a business loan from a reputable lender. One that has a simple process and multiple options for the type of loan you need. This is where we recommend OnDeck for your small business loan needs.
Purchase Your Mobile Car Detailing Products & Equipment
There is a wide array of different auto detailing products and equipment that exist in the industry. When it comes to finding the best products for your business, make sure they are of high quality and affordable. Oftentimes, purchasing a larger quantity of products will reduce your overall “cost per ounce,” which will be one of the most significant factors when calculating your profit margins per job.
We advise keeping your costs as low as possible when you are first starting out. The startup expenses of your new business venture will overshadow your finances for the first few months. Your initial financial goal should be to “break-even” from those startup expenses. Depending on the amount of work you can fulfill, you business can certainly be making a profit within the first three months of operation!
Below are some of the necessary auto detailing products to help get your business started. They check the boxes of being high quality and affordable.
https://gvautomotiveproducts.com/product/premium-carnauba-car-wash-and-wax/
Your Business is Up and Running
Congratulations on officially launching your new business venture! If you were able to follow this guide on how to start a car detailing business, your are one step ahead of your competition.
You have created the foundation to have successful business as an entrepreneur. Sure, there will be challenges, frustrations and learning experiences along the way, but that is part of the journey that makes this opportunity so rewarding!
Be sure to follow along for more business advice and please share this article with a family member or friend that may be interested in learning more. Your support is greatly appreciated!
Great article and very informative. I have been thinking about starting my own mobile detailing business and this blog made a few things more clear for me. Time to get to work!