Are you an auto aficionado? Does your dream job involve spending time around hot rods of every vintage and color? You don’t have to commit to the extensive training it takes to become a mechanic. Instead, you may be interested in another vehicular vocation—auto detailing. Auto detailing is a great way to beautify a car, and it won’t be hard to draw in new clients once you connect with the many car enthusiasts and owners in your area.
If you’ve ever owned or leased a car, you’ve likely spent some time with a vacuum and sponge making your own auto sparkle like new. But there’s much more to starting a detailing business that runs for years to come. Just like cars themselves, successful businesses require expert design, consistent maintenance, and safe handling.
Are you ready to learn how to start a car detailing business?
Start your engines and let’s go.
Understand the industry
Before you start buying abrasives, it’s important to get a sense of whether car detailing is really the right career fit.
First of all, car detailing can be divided into two categories.
- Interior detailing involves vacuuming, shampooing, and generally cleaning a car’s interior until it looks (and smells!) as close as possible to brand new.
- Exterior detailing involves the cleaning and restoration of a vehicle’s wheels, tires, body, and windows. Some detailers may offer light repairs to scratches and other small imperfections. Exterior detailing tends to be what most people think of when they consider automotive detailing. This is the car’s finish and includes paint correction.
It’s worth considering which services your detailing shop will offer and whether you’ll venture into the world of patching or repainting to fix small cosmetic issues.
What skills do you need to be an excellent auto detailer? Beyond being detail-oriented (we couldn’t resist) and willing to get dirty while cleaning, you’ll need the following traits:
- Good communication skills
- Business managerial knowledge
Next, we’ll go over how you can put these traits to use in formulating a business plan.
Research the market & create a business plan
Car detailing can be a lucrative profession—but only if there’s a true need for car detailing in your area. Consider the professional detailing businesses that exist already and whether or not your business idea offers something new. Consider the auto detailing industry need in your area as well.
Don’t let your business be a lemon.
Instead, do your due diligence with market research. Consider the following areas:
- Need – Is there a high rate of car ownership in your area?
- Competition – How many car dealerships currently serve the area?
- Services – What services do businesses already offer?
If there is stiff competition, you’ll brainstorm features to make your business stand out. Perhaps you offer more services, more affordable services, or a faster turnaround. You could even offer a membership structure or other unique incentives.
Once you have a general vision for your business, you’ll need to write a formal business plan as you seek out funding from banks or independent investors.
Make sure your business plan includes:
- A name – Establish your business’ brand identity from the get-go.
- Location – Where will you set up your business? How much will it cost to lease your commercial space?
- Startup costs – How much will you need to invest in cleaning supplies like waxes, shines, brushes, steam cleaners, etc.? In your software, web hosting, and insurance costs?
- Marketing – How will you reach your target audience? Will you market through flyers, social media, or commercials? How will you measure a campaign’s success?
- Pricing structure – What services will you offer, and at what price point?
- Break-even point – Based on the volume your business can handle, how long will it take to recoup your initial costs? When will you start making a profit?
Once you have a detailed business plan, you’ll have enough gas in your tank to start wooing investors so that you can rev up your business.
Establish a legal business
As a small business owner, you’ll be responsible for paying taxes, keeping track of your finances, and managing any employees’ wages and benefits.
The first step? Establishing a legal business.
Many small business owners choose to form a Limited Liability Corporation (LLC).
- When you file with your state to form an LLC, you’ll receive an Employer ID number.
- With your EIN, you can open a business bank account to keep your business’ income and expenses separate from your own.
- You’ll also need an EIN as you begin paying your employees and providing their tax documents.
If you’re working with a crew, make sure you look into other legal requirements in your state. For example, you may need to provide them with workers’ compensation insurance.
Protect your business
Do car detailers really need small business insurance?
The short answer is yes.
You may want several kinds of insurance:
Workers’ compensation insurance
If you have employees, your state likely requires that you cover them with workers’ compensation insurance. This kind of insurance can help provide payment for injury, illness, or disability that employees sustain while on the job.
General liability insurance
Your employees aren’t the only people who could experience injury or other adverse events while interacting with your business. In fact, one of your biggest risks is your bread and butter—the risk of damaging your clients’ cars. General liability insurance can help provide legal defense and damages arising from the following third-party claims rendered against your business:
- Property damage
- Bodily injury
- Personal injury and advertising injury
Are you looking for affordable general liability insurance for your car detailing business? Insurance via Thimble is fast, flexible, and designed with small business’ needs in mind.
Getting insured with Thimble takes less than 60 seconds. Just click “Get a Quote” or download the Thimble app. Enter a few quick details about your business, and choose your policy length (you can pay by the hour, day, or month).
Review your quote, and if everything looks good, purchase with a single click! From there, you’ll have your policy and any necessary Certificates of Insurance (COI) sent directly to your email inbox. Now you can get back to the real job—building your car detailing business.
Put the pedal to the metal
As you can see, starting a car detailing business requires some preparation and know-how. To get started:
- Understand the job requirements
- Create a solid business plan
- Decide on a business structure and hire your crew
- Cover your business with insurance
As with any venture, your business plan may need occasional updates and maintenance. As a car detailer, you know that regular servicing is key to longevity!
As your business evolves, make adjustments and continue to grow. With a little dedication, you’ll see an open road to success ahead.
Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.