Business Plan is Road Map to Success

When asked about the definition of success in the detail business, many business owners would answer money, or the freedom to do what they want, or to be able to spend more time with family. Each answer is tailored to the wants and needs of the individual answering, yet they all define success depending on one’s point of view.

In order to become successful, you must first define what success means to you. Then you need to reassess that definition periodically. As your detail business grows, so too will your definition of success. Your definition today may not be the same as it was when you started, and it may change again as conditions in your business or your life change.

To find your way to success, you need a solid business plan that lays out your goals, defines your business and acts as your business resume. A business plan should consist of a business description, a marketing strategy, information on finances and an explanation of management.

The primary landmarks that should be maintained on this map are marketing, customer service, finance, equipment and facility.

Marketing

Marketing includes sales, advertising and promotions, and requires knowledge about your market. Learn the preferences of your target customers and why they feel that way. If they prefer a quick maintenance detail, you don’t want to pitch a full four- or five-hour detail service.

First, develop goals and then set a plan for achieving them. Plans will change along the way, but you need to have an initial starting point.

Be innovative. Innovation is a major factor for success in any business. If your detail service includes features not included in other detail companies’ offerings, you have an advantage. Advantages translate to business which should translate to more profit. The detail business allows you to be creative in your service offerings. Detailers across the nation have capitalized on innovations such as shuttle service, pickup and delivery, maintenance programs, free touchup details and other points of differentiation.

Keep a sharp eye on your market and don’t react slowly to change. Many detailers tend to wait to see if things will get better. For example, after fuel costs rose sharply in recent months, many mobile detailers didn’t (and still haven’t) adjusted their pricing. These companies are watching their bottom line decrease and are doing nothing to compensate for it.

Customer Service

Customer service is the most important aspect of your business. Without the client there would be no business. Your customers expect great service from the initial call to the final detail. Every aspect of customer service should be professional and courteous. To ensure quality of service, consider using secret shoppers. They will give you an unbiased opinion and help you provide better service.

In the case of a dissatisfied client, you and your personnel need to know how to handle the situation. You can’t satisfy everyone all of the time, but you can try. A dissatisfied customer generally means there was a breakdown somewhere in the customer service line. This is something that needs to be identified and remedied immediately.

Finance

This area addresses bookkeeping and accounting. Most detail business owners know the importance of the financial aspect of their businesses, but most are not experts at it. Not keeping an up-to-date budget is where many small detail operations go wrong. Your budget keeps your spending in check, and controlled spending helps you maintain profit.

Pricing goes hand in hand with financing. Know what it costs to operate your business. You can’t stay in business if you price yourself too low. Don’t allow your competition to dictate your pricing. You have to determine what it takes to operate, and then set your prices at the best level for you.

Equipment & Facilities

The last of these key landmarks is your equipment and facility or mobile rig. If you are just beginning, you need to determine whether to go with new or used equipment. It is generally a good idea to purchase used equipment first. After all, you are not yet established and do not have customers. The payments on new equipment may be far more than you can afford.

Be careful in spending too much for a mobile rig or renting a building with too high a rent. Know what it will take in business to make the payments. Once your detail business is operational, you need to determine when to add more and better equipment. These decisions are relatively easy. You don’t need another extractor until the one you have is in constant use. When you are keeping busy and booking customers a week or two in advance, then it is probably time to add more equipment.

When servicing your equipment, you need to weigh the cost and value of in-house maintenance vs. outsourced maintenance. Being a small business, it is probably better to send equipment out for servicing. Your budget probably could not afford a person who can detail and perform maintenance.

Keith Duplessie is technical services manager for Portland, Ore.-based Detail Plus Car Appearance Systems, in charge of all installations, training and technical services. He can be reached at keith@detailplus.com.