Small Business Possibility & Tax Questions

[diyplank]

I am looking for some advice! Currently I work 80 to 90 hours every 2 weeks and also detail cars. I would love to start my own detailing business. Now it wouldn't be a full time thing, but I would more or less be legal, claiming the money and having insurance in case I or someone else damages a customers car. I need advice on wether or not to do this. I would need a tax id number, insurance, etc. Now cutting my hours where I work probably isn't possible. If anything I could cut it to one day off a week. Now this will help, but I need to keep my insurance for the family. It is really good insurance. Also I have to mention, that my wife got let go in April. Since then I have made about 1500 on 12 cars since April when I started.

I started doing this about 3 yrs ago. I grew up always helping my dad who does the same thing. I have gone from 10 cars my first yr to this year which I have about 45 cars to do. I have about 35 left. The only thing I have a single attached garage that isn't heated so I can only do this from April til November. Buying a place is out of the question!! But a small business loan to build a 2.5 to 3 car garage is somewhat do-able!

There are a lot of questions I have, and I probably will be contacting one of the local tax advisers. I also will have to check w/ the twp. A coworker of mine's husband started his own business out of the house and the only stipulation the city had was that no more than 2 cars allowed parked on the street at the same time. Which I never have that. This is in the same city just different townships.

2 Local business in the past 2.5 yrs have gone under and didn't work out! I charge about an average of 30 dollars less than the competitors and I have seen some of their work and it isn't as good as what I do.

I have a book on starting your own small detailing business but these are the subjects I am looking for info on. Any help and/or opinions are welcome.
THANKS!!!

[HeresJohnny]

I don't really see any questions here so I'll ask one.

I charge about an average of 30 dollars less than the competitors and I have seen some of their work and it isn't as good as what I do.

Why are you charging less when you do a better job?

[diyplank]

Well, I am just starting out and don't wanna go haywire!! Yes I have been doing this for a couple yrs and have grown (clients) but I don't wanna start charging 150 a car or 180 for an suv. Thats crazy. I make a nice profit by charging what I am charging. Yes after next yr i may raise my prices a bit b/c then I will be charging sales tax. I made brochures up this winter and I wanna use the rest of them up next yr before I order more w/ the new prices and what not. Every yr the prices for my supplies go up also, not a lot but on avg. of 50 cents per gallon of car wash.

I am almost done. The twp. just has to approve the conditional use of my property as a small out of home business.

I posted this for info, comments, etc. I had to many questions to ask when I posted this, but now I have a lot of them answered and its rolling along!

I have one question. What is a good book keeping (accounting) software?? Quickbooks is nice, but 100 bucks?? If I have to I will get that. I did see a program for 40 bucks called bookkeeper 2009. Anyone use this and is it good for sales tax, tax forms, etc.

THANKS

[Shadeladie]

after next yr i may raise my prices a bit b/c then I will be charging sales tax

OK, I'm gonna ask - why are you not charging sales tax until after next year? In PA, everything is taxable and if they find out, you're going to be charged for the tax (whether you collected or not).
Also, just starting out or not, I wouldn't go too low on the prices or you may end up having too much work and end up closing the business because of burn out. Just my 2 cents. Work smarter not harder!

Quickbooks Pro is the best and if you check out stores like Staples everyday, they often have specials on it, sometimes offering it for free.

[diyplank]

Well, like I said in the beginning, I have no business experience, this is just a summer small business b/c of no heating in the garage. Also, in the past 2.5 yrs I have been doing this so to speak under the table!! SHHHHHHHH I know, so this is why I am turning it into a legit business. The first summer I started I did about 10, now I am up to 52 cars. So in 2.5 yrs I have grown. I started charging 65 for a car and 85 for an suv. This is everything, shampoo, leather seat treatment, engine detail, everything. I now charge 90 for cars and 125 for suv's vans and what not.

I know what you mean for scaring customers away by charging to little, but all of my business so far has been word of mouth, and people comment and give me props on how nice of a job I have done in front of other people and that is how I have grown. I tell them what I charge and they are amazed. They ask why I don't charge more, and I tell them. That I am just starting out, this is a side thing I do under the table and they understand. Everyone has been very happy w/ my work and its b/c I take 3-5 hrs for a car and the Escalade EX I did took me 9 hrs. I am not the auto. detailing that is get your car cleaned in 30 minutes, have a wating room or anything like that.

I enjoy turning a filthy car into one that looks like it did brand new or almost new!! I use high quality chemicals, which in my mind and experience rival mothers and meguires. The only thing meguires I use is the tire shine gel and that stuff is amazing by the way!!!

I will keep my eye out on quickbooks pro!! I have been for a couple weeks now and it has been running 100 bucks. The premium, which I do not need is 200 bucks. I think software prices are outrageous, but I guess if they keep your business in a good running order it is worth it.

Thanks for the comments, I appreciate them!! I am still learning!!