Spend Capital Where It Counts
You are excited about your new business and to a car guy or gal, a detailing business is like a toy store to a kid. All too many times, detailers spend way too much capital on items they simply do not need. We detailers are famous for spending small fortunes on equipment and products, and many times we waste too much money on them.
Also, the amount of money people waste on marketing within this industry is insane. Most of the time, this money is spent on what I call panic-based marketing. Things slow down, people entering the detailing industry panic, and they start taking ads out within useless forms of advertising. Weeks later, business usually has not changed much, they are still slow, and the bills for the ads arrive, and that is usually when trouble starts.
One of the most important things you can do is build a realistic budget for your detailing business. Whether you are just getting into detailing or you are expanding your existing business and desire to take your detailing business to the next level, no matter if you are a veteran to detailing or brand new, you need to budget every aspect of your business.
You need to know what ALL of your various costs are going to be, including your ongoing expenses. There are a few steps to follow to gain a clear picture of your overall costs and create a workable budget. First, begin by building a start-up or expansion budget. Next, build an ongoing expense budget. Finally, build a wish list budget for the future. Following these steps will help guide you in the right direction for building a budget that will work for you and your detailing business.
So many concentrate on the possible income of a business, yet fail to understand the costs and expenses associated with the business. Getting a solid grip on your expenses will help you become more profitable. Not knowing your expenses is a deadly sin within any business