By Lars Lofgren
Car detailing is an exciting industry that offers some serious earning potential and can help you establish a great reputation in your community.
To start a car detailing business, you have to be meticulous, detail-oriented, and comfortable working with vehicles.
There are a few other points to remember, which is where this guide comes into the picture.
Read on as we give you a step-by-step rundown of how to start a car detailing business.
The Easy Parts of Starting a Car Detailing Business
Car detailing is a viable and growing business, where you get to decide how busy you want to be.
With new car prices rising at an average of $1,000 per year, car owners have become more serious about maintaining their vehicles. They want to keep their cars for longer—much longer—and are ready to do whatever it takes to ensure it.
This creates a steady stream of business opportunities for car detailing.
Another significant advantage is the ease of starting a car detailing business.
You don’t need any special expertise or experience and can kickstart operations even with minimal technical knowledge. What’s more, you can use a reliable business formation service like LegalNature to take over the formation process and make things even more convenient for you. Its business formation services include document handling, filing, and additional services like EIN and registered agents.
You can choose from different types of detailing businesses. For instance, you could opt for mobile detailing, fixed-site detailing, and temporary location detailing. Each option has its own specifications, pros, and cons, but one thing that’s certain is the high earning potential.
Plus, there are tons of car detailing services you can offer.mFrom deep interior cleaning to engine cleaning to metal polishing to paint chip repair, the list is huge. As such, you have plenty of flexibility to offer the services you like best.
You don’t have to set up something fancy to start earning as well. Offering specific add-ons in addition to the base services is enough to attract more customers.
The Difficult Parts of Starting a Car Detailing Business
One of the biggest problems of having a car detailing business is the longer sales process.
Getting a car detailed is often a huge time and money investment on your customer’s part, meaning you have to plan and predict a longer conversion funnel. Plus, you need to be in constant touch with your customers to retain (and attract) clients.
So while there can be many lucrative car detailing opportunities, your workload can be inconsistent. As a result, your income will be less stable in the beginning. That’s why it’s critical you set boundaries and budget according to the amount of work you think you’ll have.
You’ll also have to pay self-employment taxes, which are quite high in the United States. You should know how much you’d be paying in taxes before you take the plunge and start your business.
Lastly, your clients will have high expectations, especially considering the investment car detailing involves. Trying to live up to their expectations can be challenging and stressful at times.
Nevertheless, starting your car detailing business allows you to put your time and energy into something you’re truly passionate about—and make money doing it! Let’s take a look at the steps to start a car detailing business.
Step 1: Familiarize Yourself (More) With Car Detailing
Starting a car detailing business doesn’t require a lot of experience.
For starters, you can offer to detail a friend or family member’s car—or simply use yours. If you want more knowledge, you can always refer to YouTube that is filled with hundreds of instructional auto detailing videos to guide you.
But what’s most crucial here is to understand what it takes to offer excellent car detailing services. In a nutshell, you’ll have to learn the required technical skills, practice them, and nurture your soft skills.
Learn the Required Technical Skills
Car detailing is slightly technical in nature. Some of the hard skills you need are:
- air compressor operation
- car washing and drying by hand
- leather conditioning
- pressure washing
- upholstery cleaning
- wet/dry vacuuming
Make sure you learn and practice these skills. Having an eye for detail, in particular, will help you differentiate your car detailing business from your competitors.
Learn the Required Not-so-Technical Skills
Non-technical skills are equally important for your business’s success.
You can add more value to your car detailing service by offering incredible customer service, where everyone on your staff is personable, knows your customers’ names, and are eager to help your customers. Soft skills like empathy, patience, trustworthiness, and good communication also impact your business‘s success.
Step 2: Develop Your Car Detailing Business Plan
Your car detailing business plan will be your roadmap to a long-term process. But more importantly, it’ll help you decide what type of car detailing business you would want, as well as iron out other details concerning your business.
Decide Your Detailing Business Type
There are many types of detailing businesses to explore, including:
- At-home car detailing
- Commercial fleet inventory, such as a car dealership
- Recreational vehicles (RVs)
- Shop, garage, or car wash-based operations
For instance, if you have limited capital and experience, you can consider starting mobile detailing. You’ll be surprised at how many people love the idea of having someone come over to their home to detail their car.
Name Your Car Detailing Business
Choosing your business name is an exciting and creative part of the entrepreneurial process. But there are a few guidelines you should keep in mind.
- You want to keep it simple. Pick a name that’s easy to spell and pronounce. This can help you gain more word-of-mouth publicity.
- You want a name that can be easily incorporated into branding elements, such as logos, graphics, and other marketing material.
- You should consider your location when choosing a business name. This will make it easier to attract customers in your area and establish yourself within the local region.
After finalizing your business name, set up a dot com and register it legally.
Develop Your Car Detailing Business Plan
Business plans are usually standard, regardless of your chosen niche and business idea. But you can always get into specifics to make your plan as relevant as possible to your vision for your business.
A car detailing business plan should cover the following particulars:
- auto detailing insurance
- competitive analysis of car detailing in my area
- marketing plan
- strategies to make money
- detailing supplies
- financial projections
- ideal physical location
- licenses and permits
Keep referring to your business plan to ensure everything remains on track.
Step 3: Set Up Your Car Detailing Business
You’re almost there! All that’s left now is hiring employees and getting the required equipment and supplies.
You have to be very careful when selecting staff.
Ideally, you want a mix of employees and independent contractors who are dependable, enthusiastic, safety-conscious, and team players. While they should also possess the required technical skills, these can be taught and learned.
Keep in mind that you will also have to pay your staff’s salary. According to Payscale, entry-level automobile dealers earn about $12.37 per hour.
Get Your Equipment, Supplies, and Software
Equipment and supplies for your car detailing business will vary depending on whether you have a mobile or stationary business. But there are a few things in common, which include:
Exterior detailing products:
- Acid-free degreasers
- Detail clay
- Drying towels
Interior detailing products:
- Cleaning products meant for different interior materials, such as synthetic carpet upholstery, vinyl, leather, natural fibers, carbon fiber composites, plastics
- Liquid and foam chemicals
- Steam cleaner
Besides equipment and supplies, you’ll also need vehicles, such as a van, trailer, or an SUV. Be sure to select a model that’s presentable, reliable, and has tons of space to store your supplies and equipment.
You’ll also have to set up an accounting system to manage your finances. It’s critical to your long-term success, so don’t neglect it.
Step 4: Meet the Legal Requirements
Establishing a legal structure, among other requirements, is necessary to run your car detailing business legally. You’ll also need to procure applicable business licenses and permits.
Choose a Business Entity Structure
Each entity structure—sole proprietorship, limited liability company, general partnership, corporation, or something else—has its own share of pros and cons. You have to be very careful when deciding between them since the structure you choose will impact everything, from your tax liability to how you bring investors to your bankruptcy options.
After deciding on a legal structure, file the necessary paperwork to register your business. If the process of registering your car detailing business seems too tedious or intimidating to you, you can use the services of a business formation service.
I highly recommend LegalNature that offers legal documents for a wide range of categories. Moreover, they also offer registered agent services, EIN, articles of amendment, and foreign entity registration that can come in handy down the line.
Set Up a Business Bank Account
Open a dedicated bank account for your business to make business transactions. This will protect you and your personal assets while simultaneously making it easier to manage your finances.
Get Your Business Licenses and Permits
You have to apply for a combination of licenses and permits at the federal and state level.
The requirements and costs will vary depending on your state—sometimes, even from city to city. For instance, California requires all businesses that offer car washing and detailing to register with the California Department of Industrial Relations.
Besides specific licenses and permits, you’ll also need general business registrations such as state sales tax permits.
Car detailing businesses also require a few different types of insurance policies. These include:
- Commercial liability insurance that covers the business in case you ever damage a customer’s car
- Commercial property insurance to reimburse you for the cost of the detailing equipment if it’s ever damaged or destroyed in an event like a fire.
- Workers’ compensation insurance if you plan to hire employees.
That’s it! You’re now ready to start earning from your car detailing business. I hope this guide helps you in your entrepreneurial journey.