what do i need to build a detail shop?

[Tassadar]

How did you lose $20k? Overhead and related costs?

[Beemerboy]

KOOP

I had 3 mill in stock options in 2000 today its worth about 300k at best. The electronics industry is in the tank so I`ll clean cars instead

[Tassadar]

Makes you wish you had cashed out, doesnt it?

[Koop]

Originally posted by Tassadar
Makes you wish you had cashed out, doesnt it?

NO! If i and eveyone else had there would be no more wallstreet. I may sell and buy something else but i`ll never get all the way out.

[Koop]

Originally posted by Tassadar
How did you lose $20k? Overhead and related costs?

My stocks just droped signifigantly after 9/11. Nothing i could do about it. I didn`t lose it cause i spent it.

[GraniteState]

Allright now for my 2 cents.....

This is business advise for you...

Allright first off a suggestion do not buy 2 high priced cars. For a day job I am a loan officer. And you do not want to much debt to start a business such as 2 high end cars. Becuase as i`m sure as you know you can`t walk into a bank being self employed and just tell them what you make you have to be able to prove it. especialy if you are SMART you will not prove all that income on your taxes as you will need tax returns and bank statements for a loan to purchase real estate... The IRS will take 33% of all income. so you have to right as many things off as you can thus your taxes will show a fraction of your income...So that alone will reduce you income verification.. ARE you going to buy or lease a place? each has it`s own advantage and disadvantagees..

Secondly......

You need a business plan to obtain any business loan be prepared to spend hours and months on doing research on that..and thats a short period of time.. You havn`t given us any info on what you plan to do except you make 25k in 3 months and you want to buy a shop to start full time...I need more info to give you better advise...KOOP gave you great info on what you need except he left out CUSTOMERS.. 15 will not cut it long term becuase I can come in and steal half buy offering lower prices and same quality just a heads up what is your plan? How do plan on bringing customers in? How do you plan to keep those customers besides your work? And what do you offer that your competion doesn`t and better quality work will not cut it on a business plan... these are just some questions on what you will need to answer in a business plan...

Thirdly........
I am happy for your sucsess but being 18 years old is showing for the simple reason you will need more than 25K to start a business especially a shop.... And you want to go out and buy not 1 but 2 high end cars... if you are serious about starting a business think logicly not as a 18 year old that wants some toys as I`m sure we all here can tell you your 25k is great but does not mean it is enough to keep a business rolling.. there are lots of expences you are not thimking of INSurance is one of them employees and taxes..... good luck I wish you the best.....

ps*** anyone want to add anything I missed plz do I don`t think he has thought this all out.. 25k is alot of money in 3 months but that is with no expences....especialy no mort if he plans on buying..and spending on nice cars....

[Ferrarislave]

Wow this thread has some nice helpfull statements and tips. Thanks folks

[GraniteState]

Just another note 25k in three months is only 100k a year gross your not factoring taxes, ins, mort payment on a building, supplies, employees, workmans comp ins, and dozens of other things... if my calculations are about right that is 39k net a year...

I know people that make triple 300k a year that own shops.. they do make good money however they have been in business for years and are very frugal with the money they work hard for and they make sure everything is paid and they probably net 90k - 120k a year off 300k gross... just something to think about...

[jimmybuffit]

I started my own shop six months ago.
It is in a small strip center (Glass storefront with a 10`x10` overhead door on the side). 40,000 cars per day (!) traffic count. The zip code is in the 97th percentile of household incomes in the US.

The space is rented - $1300 per month for rent and Common Area Maintenace - and has about 1200 square feet. Room for two cars and plenty of space to move around.

Including Deposits, insurance, advertising, tools and supplies, the cost of Startup was just over $23,000. I had six months of operating capital in reserve, to lessen the frustration of potential slow days. Monthly fixed, recurring costs appear to be just about $1600.

The business is quite successful. But please understand a few basic principles of MY idea of success: I`ve owned bigger businesses in the past, and I do NOT want this one to grow...
For the foreseeable future, I intend it to be just me... I`m liking it that way just fine!

I`m booked about a week in advance, doing about one full detail per day. I can do 7/8 cars per 6 day week. I`m good, but I`m not fast! I charge $165- $225 per vehicle, averaging $200...

Eventually, I`ll have a $150k sales goal (with parttime help) and will expect to NET 80/90k.

In my book, that`s not bad for washin cars - and no Corporate Bulls**t!

Jim

[Tassadar]

How the heck did you manage $1300 a month! Wow thats a heck of a deal on storefront property.

BTW, I love the lighting in that picture.

[Ferrarislave]

I agree that pictures looks really good. Thats a hefty size garage for the buck.

[Tassadar]

Actually, that is quite possibly one of the best amateur photos I have ever seen. Thats just immaculate.

[Koop]

Direct lighting is never good for picutres. It always has to be reflected.

[jimmybuffit]

Thanks to all. Hope i haven`t hijacked the thread.

Tassadar: What a nice compliment! I have two utility carts with 4200K flourecesent light fixtures. These carts can follow me around the car as I work. That`s the light source.

Yeah, my CRV EX is Clean, but, hey! Who does those floors?

Jim

PS Ever notice that Honda does not badge the CRV with the DX, LX, EX? My EX would become ... CRVEX? Make your own joke...

[Koop]

I also should add it is a great pic. It`s not a phtography studio! You did great with what you had there. Also it looks like a great place to detail. I wish my bay was more like yours.