Starting (a small) business - what to watch out for?

Would local garages hire detailers?

Have looked into that too.

I wouldn’t get paid enough if I were to work there alongside them for it to really be worth it, and dealerships don’t really want to price the work within the sale, and have to make a margin if they’re selling it on.


Might be better to build a partner network with dealerships where I give them commission.
 
Things to consider

Relevant insurances will be big and needs dealt with asap. Damage to someone's pride and joy could end up costing thousands to sort out
Vat registered?
Accountants fees/costs?
Maintain books if your not using accountant ?
Self employed? Sole Trader? Ltd ?
Property/Rental unit? - Electric costs etc
Travel costs to and from jobs

£300 a day is a very tough ask as your starting costs.... So if you earn £400 a day.... That's a very basic £100 a day "profit" - That' around £25k a year before any other costs....

Making £400 a day seems a very very big ask... How many jobs is that in a single day?

You need to find something unique to tap into - I know one person locally who had a passion for same sort of thing - Within 12 months he hated it and wished he's never started.

It's extremely manual labour, his back and arms were killing him after a busy few months.

He said - Detailing is easy. Running a business is hard. Running a business successfully is VERY hard.
 
Yeah you’re absolutely right, it just depends on whether you can get it off the ground vs the extra work required to do so. I don’t know if I’d have enough energy to do both, and the detailing should be significantly more profitable

Unless you're fully booked with a backlog of customers already queuing up to take up all your time with detailing work, then it's probably worth spending a bit of spare time to get social media all set up while you have the time slots available to do it. I'm sure the videos/editing process, or even just Instagram posts, etc., will get easier/quicker once you've done a few of them. could even just be shorts/TikTok style things lasting a minute or something - new detailing tip, etc.

I totally agree in that a fresh perspective might be welcomed, but in all honesty I don’t have the desire to try to re educate the entire community. Even when you can produce facts, backed by science and evidence, you can get swamped by people who have been reading/watching the same content for years telling you otherwise.

You don't need to directly engage with plebs in the commnets and if they're commenting, they're driving engagement... in fact, that gives you more material for follow-up videos "some commentors said X on the last videe, this is why that's wrong..." and of course more engagement from that too.

Yeah I’ve done the maths. With overheads inc unit cost it needs to be about £300 a day, accounting for 3 weeks of holiday a year and pension.

I'd be very careful with jumping right into having big overheads like that, as @booyaka has pointed out. You mention doing it already as a "hobby" but how easily can that translate into rapidly having sufficient customers to occupy each working day?

I have two friends who set up businesses that eventually involved renting industrial units - one of them sold up the business and now has a very good tech career, the other is still going and owns his own premises now. Neither of them started off by renting a unit; both started off working from home, then renting cheap/small premises.

The friend with his own large unit and multiple staff (now) relied initally a lot on Facebook marketing and picked a simple business name that he's managed to get high into google search rankings for his industry (I guess your industry might be a bit different re: branding as you may need to tilt it towards having a premium feel etc..) - but he is constatnly marketing and spending on ads too - the days of very easy views/engagement on facebook are now over - I understand TikTok is useful for free promotions though.

Have a think about the "hobby" bit - how much work is it actually generating now? My friend started off by reducing hours/working part-time at his existing employer and grew from there, the transition to full time self emplyment was his business being succesful enought that he found he had too much work to fit into those few days off so he'd need to quit his job in order to handle all the work his business had generated, then soon after employ his first staff member too etc.. Now he has a bunch of staff with managers/team leaders below him.

If instead you're doing it rather casually and aren't facing the situation where you've got loads of bookings then jumping right into getting a premises seems like a risk that could kill the whole business quite early on. Do you absolutely need a unit right away, or could you build up a customer base from visiting customers and working from their driveways? Building up a social media profile, referrals from customers, car meets etc.

Jumping right in and renting a unit might work but if it's not initially necessary, or you don't initially have the orders to justify it then it seems like it would be eating into a lot of your savings/runway for trying to get this venture started.
 
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I'm not sure its sustainable.

I used to use a chap to wash our cars. He used to charge £30 per car. Inside and out.
or £199 for a full detail on the drive.

However, his prices are now £50 for a standard wash and £399 for a detail on the drive.
This stopped us all using him. It just wasn't sustainable.

I've no idea if he is still going.
 
Yes, you don't want to be renting a unit to begin with. You don't need one, you can just provide a mobile service.

You also don't need a website, a Ltd company, or branded workwear. These are just unnecessary costs to begin with, you just need a flyer with a mobile number, to get proof of principle that your business will actually work. Only start spending money when you have proven you can make money. The unit upfront is a big no no.
 
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That sounds very ambitious for a single person, with a very labour intensive job. What's the going rate for a standard detail these days? £1k for a 3 day detail?

In what way ambitious?

The going rate is irrelevant, really - the services can vary massively in quality and price.


Top end market rates are:

From £1000 for a single stage polish and ceramic + VAT
From £1500 for a two stage polish and ceramic + VAT


These exclude interior.


The "from" prices are for the smallest cars. It would take me roughly 3 days to do a 3 series for a 2 stage cut and finish with a ceramic coat. Longer with interior.


It also gets overly complex where people list different upgrades for ceramic coatings with longer life spans etc.


My belief is it needs to be simple and clear.

-> Maintenance
-> Decon
-> Light swirl correct + ceramic
-> Deep scratch correct + ceramic
-> Sanding + deep scratch correct + ceramic


No mucking about with "2 year ceramic as standard - upgrade for XXX". Top tier as standard.



Things to consider

Relevant insurances will be big and needs dealt with asap. Damage to someone's pride and joy could end up costing thousands to sort out
Vat registered?
Accountants fees/costs?
Maintain books if your not using accountant ?
Self employed? Sole Trader? Ltd ?
Property/Rental unit? - Electric costs etc
Travel costs to and from jobs

All good points and already planned for.

Sole trader, not VAT registered yet (as below limit), use accounting software and do it myself, additional fixed costs have been estimated based on conversations with existing detailing businesses & research. No travel cost really as unit is round the corner from me.


£300 a day is a very tough ask as your starting costs.... So if you earn £400 a day.... That's a very basic £100 a day "profit" - That' around £25k a year before any other costs....

Making £400 a day seems a very very big ask... How many jobs is that in a single day?

You need to find something unique to tap into - I know one person locally who had a passion for same sort of thing - Within 12 months he hated it and wished he's never started.

It's extremely manual labour, his back and arms were killing him after a busy few months.

He said - Detailing is easy. Running a business is hard. Running a business successfully is VERY hard.

I don't think I worded it very well but £300 a day is not to cover my costs, it's to:
  • Cover costs (fixed and otherwise)
  • £500 a month pension
  • £2k a month income roughly
The manual labour is one of the things which is most exciting to me. I can't be sat at a desk for my entire life, it's horrific.


I have got my "Why" though - the detailing is a vessel for my longer term goal & vision. Something I can be good enough at to make money from, to build the longer term strategy.


Unless you're fully booked with a backlog of customers already queuing up to take up all your time with detailing work, then it's probably worth spending a bit of spare time to get social media all set up while you have the time slots available to do it. I'm sure the videos/editing process, or even just Instagram posts, etc., will get easier/quicker once you've done a few of them. could even just be shorts/TikTok style things lasting a minute or something - new detailing tip, etc.

I have had a think about this, and will probably speak to my sister to see if she's interested in helping out, but I don't think that the client base I'm targeting will really be using Insta etc, though I will investigate it. I don't have any social media so it would be entirely new to me.

You don't need to directly engage with plebs in the commnets and if they're commenting, they're driving engagement... in fact, that gives you more material for follow-up videos "some commentors said X on the last videe, this is why that's wrong..." and of course more engagement from that too.

It's a good point but to be completely blunt, I have 0 desire to do it. I don't care about trying to educate the masses, and I'd rather spend the energy elsewhere.


'd be very careful with jumping right into having big overheads like that, as @booyaka has pointed out. You mention doing it already as a "hobby" but how easily can that translate into rapidly having sufficient customers to occupy each working day?

I have two friends who set up businesses that eventually involved renting industrial units - one of them sold up the business and now has a very good tech career, the other is still going and owns his own premises now. Neither of them started off by renting a unit; both started off working from home, then renting cheap/small premises.

The friend with his own large unit and multiple staff (now) relied initally a lot on Facebook marketing and picked a simple business name that he's managed to get high into google search rankings for his industry (I guess your industry might be a bit different re: branding as you may need to tilt it towards having a premium feel etc..) - but he is constatnly marketing and spending on ads too - the days of very easy views/engagement on facebook are now over - I understand TikTok is useful for free promotions though.

Have a think about the "hobby" bit - how much work is it actually generating now? My friend started off by reducing hours/working part-time at his existing employer and grew from there, the transition to full time self emplyment was his business being succesful enought that he found he had too much work to fit into those few days off so he'd need to quit his job in order to handle all the work his business had generated, then soon after employ his first staff member too etc.. Now he has a bunch of staff with managers/team leaders below him.

If instead you're doing it rather casually and aren't facing the situation where you've got loads of bookings then jumping right into getting a premises seems like a risk that could kill the whole business quite early on. Do you absolutely need a unit right away, or could you build up a customer base from visiting customers and working from their driveways? Building up a social media profile, referrals from customers, car meets etc.

Jumping right in and renting a unit might work but if it's not initially necessary, or you don't initially have the orders to justify it then it seems like it would be eating into a lot of your savings/runway for trying to get this venture started.


I've had mixed discussions with various people, including a career coach, about turning a hobby into my work.


Ultimately, my view is to do something you love. That's different from it being a hobby.


My love is not detailing - it's the hobby. As I mentioned, it's the vessel to build the longer term vision I have, which is:

  1. Work independently
  2. Build a "school of business" for younger people to learn essential skills, knowledge and experience
  3. To prove that doing things properly, and not for marketing/politics/profit, is still intrinsically important to myself and others.

I'm not driven by money for this, I'm driven by the service I know I can provide people that others can't.

I'm not sure its sustainable.

I used to use a chap to wash our cars. He used to charge £30 per car. Inside and out.
or £199 for a full detail on the drive.

However, his prices are now £50 for a standard wash and £399 for a detail on the drive.
This stopped us all using him. It just wasn't sustainable.

I've no idea if he is still going.

A different market really. It's like clothing - just because something costs more, it doesn't mean people won't buy it, it just means different people will buy it (if the brand is right).

You can't charge £50 for Primark - you need a different brand.

You can't charge £50k for a SEAT - you call it a Cupra, once you've established the premium brand and have good recognition.


Yes, you don't want to be renting a unit to begin with. You don't need one, you can just provide a mobile service.

You also don't need a website, a Ltd company, or branded workwear. These are just unnecessary costs to begin with, you just need a flyer with a mobile number, to get proof of principle that your business will actually work. Only start spending money when you have proven you can make money. The unit upfront is a big no no.

This will sound arrogant and condescending, but I don't mean it to be - this gives me more fuel to start it.

The misconception that you can provide the same service, or even any type of service worth paying for, mobile is common.


You wouldn't let a guy turn up in a van to paint your car properly with spray cans, and the same is true for proper paint correction.


You can't sand, polish and ceramic coat a car in conditions/environment you have no control over. It's why I've only done it for friends and family for 6 years - I could NEVER charge someone to do the work mobile knowing how terrible of a job I'm doing, which is of course not good for making money :P


I will happily charge big money for doing it a unit though, because I know the level of finish I can achieve.



I know the business can work - I know there are people who will pay for it. I've just got to build that customer base which will be the most challenging bit. It definitely exists though as I've spent the last year networking with people who do (pay for that level of service).
 
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It's a good point but to be completely blunt, I have 0 desire to do it. I don't care about trying to educate the masses, and I'd rather spend the energy elsewhere.

Fair, but the main goal of that stuff isn't really about educating the masses, that's a nice secondary effect - the main goal is just to establish a funnel for customers.

There's a supercar dealer up north that literally designed their whole new showroom around looking good on Instagram/TikTok videos - it's become pretty important for various businesses. My friend isn't exactly in a young/hip industry himself but he's still posting regular social media updates as it all functions as additional marketing. (It's just a mixture of things from new products, to quirky office updates from the team to some tips/"education" content re: their products), just keeps their brand out there/gets more views/attention and potential customers can see the people behind it all.

I've had mixed discussions with various people, including a career coach, about turning a hobby into my work.


Ultimately, my view is to do something you love. That's different from it being a hobby.


My love is not detailing - it's the hobby. As I mentioned, it's the vessel to build the longer term vision I have, which is:

  1. Work independently
  2. Build a "school of business" for younger people to learn essential skills, knowledge and experience
  3. To prove that doing things properly, and not for marketing/politics/profit, is still intrinsically important to myself and others.

I'm not driven by money for this, I'm driven by the service I know I can provide people that others can't.

Totally fair and very worth goals, doing something you love and striving for independence are absolutely great reasons to pursue this. My point re: the hobby was just about the transition to getting your own premises right away - as in, does doing it as a hobby mean you already have a backlog of customers/orders? If not, then it might be worth ramping it up part-time or indeed going without premises initially. Obvs I've seen you've clarified the overheads issue and it's not as steep as it initially appeared, but just be very careful with costs initially is all I'm saying - the two people I know who did establish businesses organically like this let the demand from customers steer thier investments in new premises etc. I'm not saying be driven by money, you can choose to grow conservatively (one of my friends could've taken more risk and grown quicker than he did, but actively chose not to) or indeed to just put a halt on growth if you're happy where you are - but this is all the more reason why it's safer to not commit to any high fixed costs before building a customer base. :)
 
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I know the business can work - I know there are people who will pay for it. I've just got to build that customer base which will be the most challenging bit. It definitely exists though as I've spent the last year networking with people who do (pay for that level of service).

The problem you have is you don't know how many customers will be prepared to pay what you want to charge for your high end service. What I would say is that you have to keep costs down until you can establish that you actually will be profitable. Getting a unit would be a big recurring cost, that could make you go bust. So, I'm saying think of a way you can offer services without big costs to begin with, until you are making enough money consistently, and then think about investing in a unit.
 
You can't sand, polish and ceramic coat a car in conditions/environment you have no control over. It's why I've only done it for friends and family for 6 years - I could NEVER charge someone to do the work mobile knowing how terrible of a job I'm doing, which is of course not good for making money :P


I will happily charge big money for doing it a unit though, because I know the level of finish I can achieve.

Unless you have a lot of money saved, what you probably need to do is come up with a Minimum Viable Service, i.e. something you can make money with, with minimum outlay for yourself, and do that for a while to see if you can make money. The higher end stuff sounds like it needs more investment, and you need to be sure the demand is there. When you get to know customers providing more basic services, you'll be able to tell if the demand for high end stuff is there. Remember, a business fails if you run out of money.
 
I still don't see how your getting £300 a day income... You expect to turnover £1500 a week, then say 46 weeks a year (with some holidays etc) - £70k a year turnover detailing cars yourself, but currently have no clients.

You've said above that you expect to pay yourself £2k a month and £500 a month into a pension so before you even start - you need £30k a year of turnover before even paying a penny out insurance, tools, materials, advertising, rental etc....

So you need to have 100 days of work (20 five day weeks) at £300 a day lined up before you even break even on salary and pension contributions....

But you have no clients, no market research with regards who's going to pay that level of service.
 
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But you have no clients, no market research with regards who's going to pay that level of service.

That's my worry too - obvs that can still work, people take even bigger risks than that in the startup world (often with other people's money), though with the intention of being able to rapidly adapt and completely change their business in response to feedback if necessary.

It just seems like an unnecessary risk...

What my friend did was IIRC:

Worked on his business evenings and weekends initially - was in the same industry as his employer, but importantly, not competing against them, so he had a few contacts.

Then transitioned to working 4 days a week... then after he'd handed over more work, he went to like 50% of his original hours.

Then, not long after, he was ready to fully quit his job and work on his business full time.

He didn't actually get a premise, though, until it was time to hire an employee. At that point, he had cash in the bank/a nice buffer and more work than he could handle himself + felt if he was going to hire someone, he'd need an actual premises.

Essentially, he took quite a conservative approach and scaled it up gradually. he employed more people, moved to bigger premises when he needed to, there was nothing speculative about any of it - the initial business while being run in the evenings and weekends took no financial risk to set up and if it had failed then no loss to him but as it worked out he was able to keep on building it.
 
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Unless you have a lot of money saved, what you probably need to do is come up with a Minimum Viable Service, i.e. something you can make money with, with minimum outlay for yourself, and do that for a while to see if you can make money. The higher end stuff sounds like it needs more investment, and you need to be sure the demand is there. When you get to know customers providing more basic services, you'll be able to tell if the demand for high end stuff is there. Remember, a business fails if you run out of money.

The challenge is that the customers you target with a minimum viable product aren’t the same customers who will also pay big money for a full service - so building that customer base is irrelevant.


They’re typically not in the same network groups either, so you don’t get word of mouth.

I still don't see how your getting £300 a day income... You expect to turnover £1500 a week, then say 46 weeks a year (with some holidays etc) - £70k a year turnover detailing cars yourself, but currently have no clients.

You've said above that you expect to pay yourself £2k a month and £500 a month into a pension so before you even start - you need £30k a year of turnover before even paying a penny out insurance, tools, materials, advertising, rental etc....

So you need to have 100 days of work (20 five day weeks) at £300 a day lined up before you even break even on salary and pension contributions....

But you have no clients, no market research with regards who's going to pay that level of service.

I’m working with a few people to understand the process, and they’re all booked up until mid August currently with PPF/sanding work/ceramic coating, averaging >£500 a day.

There is a market there for it - this hasn’t been the problem.

It’ll be challenging, but it’s not a problem.



I wanted to seek clarity on anything else I’m potentially missing :-)



I’m about a year into planning this, traction really started in Dec when I was made redundant.


I’ve otherwise got about £45,000 aside.



This isn’t a rash “yolo” situation, it’s more of an educated risk.


I’ve planned what I can, networked and communicated my intentioned with those that know me, as best as possible.


But ultimately the issue with building the client base is that I can’t actually do the work properly until I’ve got a unit. There’s not a way around it.
 
In what way ambitious?

The going rate is irrelevant, really - the services can vary massively in quality and price.


Top end market rates are:

From £1000 for a single stage polish and ceramic + VAT
From £1500 for a two stage polish and ceramic + VAT


These exclude interior.


The "from" prices are for the smallest cars. It would take me roughly 3 days to do a 3 series for a 2 stage cut and finish with a ceramic coat. Longer with interior.


It also gets overly complex where people list different upgrades for ceramic coatings with longer life spans etc.


My belief is it needs to be simple and clear.

-> Maintenance
-> Decon
-> Light swirl correct + ceramic
-> Deep scratch correct + ceramic
-> Sanding + deep scratch correct + ceramic


No mucking about with "2 year ceramic as standard - upgrade for XXX". Top tier as standard.

It's ambitious as I said it is a very labour intensive job, and you'll be doing it solo 5 days a week with no one to help you. Factor in time spent doing things that isn't your day job, maintenance, cleaning equipment and your unit, ordering stock, dealing with suppliers, doing your accounts, managing bookings, etc. How many hours do you expect to work a week in total?

As for your pricing you cannot say £1000 + VAT on your price list or paperwork, as you aren't going to be VAT registered you have to say £1200.

With regards to your opinions of things being done wrong by other people you have to convince them you are right, and if what you say is correct when/if they go online to check or speak with other competitors they are going to tell them the status quo answer which is not what you are saying. I am not arguing with your methods just saying people will ask, "Why is this one person/business saying something different to long established ones?"

I do hope it works out for you, but its good to be honest with yourself and as you have done ask people for positives and pitfalls, and be willing to be semi flexible with your predicted business model if it isn't going as anticipated. :)
 
It's ambitious as I said it is a very labour intensive job, and you'll be doing it solo 5 days a week with no one to help you. Factor in time spent doing things that isn't your day job, maintenance, cleaning equipment and your unit, ordering stock, dealing with suppliers, doing your accounts, managing bookings, etc. How many hours do you expect to work a week in total?

As for your pricing you cannot say £1000 + VAT on your price list or paperwork, as you aren't going to be VAT registered you have to say £1200.

With regards to your opinions of things being done wrong by other people you have to convince them you are right, and if what you say is correct when/if they go online to check or speak with other competitors they are going to tell them the status quo answer which is not what you are saying. I am not arguing with your methods just saying people will ask, "Why is this one person/business saying something different to long established ones?"

I do hope it works out for you, but its good to be honest with yourself and as you have done ask people for positives and pitfalls, and be willing to be semi flexible with your predicted business model if it isn't going as anticipated. :)

I always appreciate the discussion because if I can’t provide a reasonable response, it means I’m not prepared enough.


Convincing people I use the right methods will be the easiest bit :D I’ve got many plans for that including whiteboards galore and terrible drawings.


But a degree in engineering, reasonable career history for my age and training with experts, not brands, will be a good place to start that conversation.


This weekend will be a good test! 10 hour days for 3 days :p



As I say, I appreciate the challenges :-)
 
I’ve not read the thread so forgive me if any of this has been covered. Quickly posting on mobile…

Firstly, congrats on taking the plunge. Car detailing can be lucrative, there’s a couple near me that have been doing this for many years, they now have 1-2 members of staff along with their own range of detailing products. The cars they work on range from Ford Ka’s to RR’s and Astons.

In terms of marketing:

If I were you, I’d be going hard on social media… by hard I mean, get a tripod and film yourself doing the work(it can be faceless) and post the time lapses on social, Tiktok, youtube, Insta. People love seeing nice cars getting washed the right way. It’s the only reason I know about the couple/company near me.

Get a straight forward site/landing page setup with pricing and a means of contacting you. Run a paid search campaign for anyone within X radius looking for car detailing, car valeting etc. Exact match those keywords so you’re not wasting spend. There’s plenty of guides on how to do this. I don’t have figures but plenty of people are searching for this. It’s the quickest route to market, seo and all that can come later.

If you can, start out with a van rather than a premises, there’s pros and cons to both scenarios but I guess it just keeps overheads lower and if you get some branded livery, its free advertising, especially if you’re working in an affluent street or parked up somewhere.

In terms of the business, get a ltd co registered, get yourself insured, bank account setup along with Xero for book keeping and start trading.

All of that can be done in an hour or two. If you’re unsure on insurance, phone a local broker.

Unless you want an accountant to setup the ltd co and use their address for correspondence then forget that for the time being and start trading. Takes 15 minutes to phone an accountant a week or month from now, too many put off starting because they’ve not done xyz.

Good luck, if you’ve got a full diary detailing cars, you can make a nice, flexible lifestyle for yourself and earn well.
 
I've still got a lot to do, though.

I have pretty much all the basic tools necessary to start working, as I've been doing it for 6+ years as a hobby/friends and family.
This is my point - You don’t have a lot to do then ;)

Pick up the phone or drop a text to those you’ve done work for previously. Say you’re now in the business, get some cards printed off Vista, they come in a day or two, give them the cards, ask if their friends or neighbours want valeting services, say you’ll beat the competition on price to get your foot in the door.

Your website doesn’t need to be perfect either.

Don’t be worried about a quiet spell, you’ll always get those, once you get started theres always stuff to do, youll take them as a blessing.
 
Good on you. As long as you aren't locking in to a long term on your rental unit it sounds like the risk is minimal. Why not put up a few k and give it a proper go for a while. Some of the extreme caution in this thread is indicative of the culture that keeps the UK performing so poorly compared to countries like the USA.
 
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Pick up the phone or drop a text to those you’ve done work for previously. Say you’re now in the business, get some cards printed off Vista, they come in a day or two, give them the cards, ask if their friends or neighbours want valeting services, say you’ll beat the competition on price to get your foot in the door.

Apparently, those are a completely different customer base, though, so he's starting from scratch here in terms of customers:

The challenge is that the customers you target with a minimum viable product aren’t the same customers who will also pay big money for a full service - so building that customer base is irrelevant.

I think if the premesis/high initial fixed costs are a hard requirement then it's even more reason for you to have to put some effort into social media - you're going to need to find customers and if they existing people you've worked with without a premesis aren't the same sort of clientel then where are the initial orders going to be coming from?
 
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