Car detailing, a rapidly growing industry, offers a lucrative opportunity for those who are passionate about maintaining their vehicles in top condition. The market demand for this service is evident, with the average revenue for a car detailing business standing at a substantial $100,000, as reported by IBISWorld.
However, it’s not an easy industry to crack. You need to have exceptionally high standards, attention to detail, and a desire to persist and hone your skills to build a great reputation and deliver exceptional results.
Sounds good? Let’s examine how to set up as a car detailer and what you need to know before entering this space.
You Need Experience
Car detailing is not just about washing cars; it’s about developing a high level of skill and knowledge. Before you start offering your services, gaining experience in the field is not just beneficial; it’s crucial. You can work for an existing company or start by detailing family and friends’ cars. This hands-on experience will not only prepare you for the job but also provide valuable feedback, making you feel more prepared and confident in your skills.
Use social media accounts for existing businesses in the car detailing space to help you learn tips, tricks, and techniques and do as much research as possible into everything you need to know. This can be things like the best products to use for different types of carpet and upholstery, the best waxes, and tools. You need to even understand the dilution calculator for detailing chemicals, so you know exactly what you’re doing and how to handle chemicals correctly.
While you don’t need formal training—there is no car detailing school you can attend—you need to learn as much as you can from resources already in the industry, such as those offered by the International Detailing Association, to gain a recognized certification.
You Need A Business Plan
Every single business needs a business plan, and car detailing is no exception. Your business plan needs to be as detailed as possible (pun intended), and you can lean on this to make decisions that will help you get started. It will guide you in understanding the sector you’re setting up in, whether you’ll be a mobile detailer or have a location customers come to, and how you’ll operate. It will also help you determine if you need investors to secure premises and kit it out with the right equipment or if you need investors or business partners to help fund this initiative.
In addition, your business needs to detail the work you plan to do and will offer as part of your services. For example, vacuuming, handwashing, engine detail, overspray, carpet dying, windshield repair, dent repair, and more are all services you can offer and include as you wish.
You also need to know how you will charge and price your services and how you will appeal to local customers and stay affordable based on the current economic status of your intended audience. You will also need to know what other competitors are already offering for their detailing services so you can differentiate yourself.
Business Licenses and registrations
At a minimum, you will need to register your new business even if you’re not operating yet so you can secure all the details you need, such as registering your business name, getting an EIN if you need one, and obtaining any permits or undertaking the registration process if required in your state. The method of obtaining these licenses and permits can vary depending on your location and the nature of your business. However, things like building permits, fire department permits, and certificates of occupancy might be required if you want to work from a business location. Insurance or mobile services will be required, as will finding a suitable method of transportation and having this registered too.
Always check with your state for what registration and permits you need. For example, in California, you will need to register your car washing and cashing business to get a license.
You might also need to register with any department overseeing air quality and pollution and detail how your business will be reclaiming water for use, for example, and disposal requirements for chemicals that might enter the sewage system.
You Need Insurance
As a business owner, it’s crucial to protect your investment. This means having the right insurance coverage. You’ll need vehicle insurance to cover your business vehicle and general liability insurance to protect against bodily injury or property damage claims.
Additional coverage, such as specific auto detailing insurance, can provide further protection. The business will also need unemployment, disability, and worker compensation insurance if you plan to have employees. Each type of insurance serves a specific purpose, and understanding these purposes will help you make informed decisions about your insurance needs.
You Need Tools and Equipment
It’s kind of stating the obvious, but you need a hefty investment for tools and equipment to fit the business model you want to use, either static or mobile. The equipment tools you might need can include but are not limited to,
- Van or truck
- Physical location
- Pressure washer
- Wet-dry Vacuum
- Hot water extractor
- Water reclamation system
- Rotary buffers
- Orbital buffers
- Air compressor
- Cleaning solutions
- Towels, buckets, sponges, etc
In some cases, you might be able to afford these out of pocket. However, if you need a loan or investment to operate and get up and running, then you need to order SBA loans or other business loans or investment opportunities to afford what you need. This is where the detailed business plan from above will come in handy.
You Need To Understand Your Finances
An important aspect of your business is the finance side, and before you go full steam ahead, you need to understand the complexities of business finances to assist you in making sound financial decisions and not burning through your cash pot before or even after you turn a profit.
Some financial decisions include opening a business checking and saving accounts, filing taxes, paying employees, purchasing accounting software, and other administrative tools and resources. You need to be aware of the cost of the products you use, the volume you need to complete each service you offer, and how you price your services.
More importantly, you need to separate your personal and business finances from each other and ensure that you don’t let things merge to protect you and your business.
A Good Marketing Plan
Lastly, you need an extensive marketing plan and a budget for this to market your car detailing services. If you have been working for others or ad hoc to gain experience, it’s likely you have your social media accounts set up you can use. However, you do need to look into developing a marketing plan without marketing so one will know you exist or know how to find you and what you do.
It can be as simple as setting up a website, registering with Google My Business, and maintaining associated social media accounts. However, you might find you need extensive local SEO services, content marketing PPC options, flyers to promote local events, and more. Understanding how to market yourself can enable you to craft a comprehensive marketing strategy to support success and growth.
Starting a detailing business is about more than being good at washing cars; providing expert cleaning services or a range of vehicles to take even the most stubborn messes can be an art form and something you need to be fully invested in to make this venture successful. However, understanding what you need to get started and the importance of getting it right can help you have a fruitful career in the space so you can go from strength to strength.