If you are starting a mobile detailing company, it is likely that you will need a business plan at some point. The experts at Pro Business Plans have worked with dozens of detailing companies to prepare plans for investment and strategy. This article contains information about what is included in the plan and how it is typically structured.
There are several factors that uniquely contribute to create a successful mobile detailing company. Among the most important are the location, scope of detailing offered, and business model. For instance, some mobile detailing companies may offer a quick and no frills service that targets the price sensitive market for mainstream cars. Others may have a smaller operation and provide a more boutique level service, which charges a higher price at a much lower capacity. These unique aspects combine to form your business model and assist to determine your potential for success, they also serve to direct your marketing strategy and form the foundation to your financial assumptions.
The business model of a mobile detailing company is based around improving the exterior condition of mobile transportation devices. Some companies focus on an exclusive niche such as cars and collision repair, whereas others serve anything from motorcycles to boats, cars and RVs. The business model that is most applicable in your case will range depending upon the nature of the competitive environment, the owner’s interest of size and sophistication, and the resources available. If you are presenting your business plan to banks or investors , they are highly likely to analyze your market positioning compared to the competitors in the regional market and base your projections relative to this.
The location of a mobile detailing business plan is important because the successful detailing company must combine a convenient location accessible to a wide radius, with affordable cost. Being located in a dense urban area will provide this centralization, but at a cost that is likely far too high to compensate for the influx of customers. On the other side, being located in a poor area where rent is cheap will not satisfy the price or demand levels in order to be sustainable.
The positioning of a mobile detailing business plan is based upon several components. The most effective way to determine the market positioning is to analyze the market demographics and current competitors in the area. For instance, if the residents are mostly middle-class automobile owners, perhaps there is an untapped area for the smaller luxury car market that nobody is presently serving. If you are going after the mainstream market, there may be a region that has yet to be penetrated.
The marketing section for a mobile detailing business plan is based upon the business model and age of the company. If it has recently entered the market, it will need to have a launch campaign that alerts the surrounding area of its entrance and effectively enables it to scale. In some cases, you may be acquiring an existing company and need to turnaround the brand or scale an existing one. The marketing plan should be dynamic to reflect these elements.
The promotion strategy of a mobile detailing business is designed to focus on owners of the asset class that you provide services for in the area of your company’s focus. This may include initial discounts through Groupon and regional deal websites, direct mail distribution, and displaying promotions at places like parking garages, marinas, and storage facilities.
As any company scales, reputation management becomes a critical success factor. People within the community may discuss the quality of their services and also make online reviews through websites such as Yelp! and Google Places. Without a few short years, the extent of your reputation can shape the bottom-line performance of your company and direct its long-term success.
The financial projections of a mobile detailing company will likely be requested by banks or investors if you are seeking any type of financing. The most standard projections are completed in the form of a three to five-year income statement, balance sheet, and cash flow forecasts. These may be segmented based on the revenue forecast section and an expense forecast, which enable investors to analyze your risk level and potential profitability given your business model.
The revenue forecast section of the business plan is designed to provide a range of possible scenarios that investors are likely to encounter and identify the potential size of the company. Many mobile detailing companies are limited by capacity and unable to effectively scale without acquiring additional locations. Therefore, a reasonable foundation to the revenues will be based upon the potential capacity level and forming conservative assumptions about how many customers will be acquired.
The expense structure of a mobile detailing company can range substantially depending upon the size and location. However, the general expenses incurred related to operations costs are similar industry wide. Therefore, the best approach is to review the financial structure of similar mobile detailing companies and use them to form a conservative basis as drivers to the expense forecasts. Any substantial variance from the norm should be explained.
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