Opening an auto detailing service seems like the perfect business model. Low-capital startup and plenty of positive cash flow, the only thing missing is a trip to Auto-Mart to pick up some equipment and you could be in business tomorrow.
This is where taking a moment to count the full cost of doing business can save you plenty in the long run. There is much troubleshooting, cautious planning and important considerations that must be addressed before you can get a bona fide business off the ground.
The most important of these is proper insurance coverage. This is where the unassuming shake their heads and say “don’t worry, nothing will happen,” “it’s not demolition derby, it’s just auto detailing,” or “but, what about my positive cash flow”. This type of mentality is not conducive to a productive business of handling other people’s property.
Auto detailing, simplistic as it may sound, will mean handling the second-largest investment many people will make. Car owners can be especially sensitive about the way their cars are handled and the conditions in which they are returned.
While general business liability insurance should just be a given, it is important that you consider proper garage keepers insurance as well. This is especially important if you will work in a fixed-location, even if you are not actually doing any mechanical work.
It is a good idea to ask your insurance agency in Texas how much garage keepers insurance coverage you are going to need to safely conduct your business. Think of the negative possibilities; a car could get stolen, subjected to fire damage or even accidentally damaged while being moved or detailed.
You will want to look for coverage in the vicinity of $50,000 to $100,000 simply for damage to any of your client’s vehicles while they are in your charge. A reputable independent insurance agent in Texas can give you more information for fire or theft insurance.
The good news is that there are some ways to keep your premiums from destroying your positive cash flow. First of all, consider paying minor claims with cash out on hand. If you turn every small claim to the insurance coverage they will simply up your premiums.
Furthermore, if you are operating a pick-up and drop-off services, you will want to make sure you have a spotless driving record. If you plan on hiring employees you will want to be sure their records are equally clean, this will help to keep those garage keepers insurance premiums to the bare minimum.