Mobile Car Washing - Staying Small or Going Big?

Well, it is interesting how many smalltime operators that do mobile car washing want to go all the way, and grow their company as large as possible rather than staying small with one washing rig, and perhaps one helper going with them to office buildings and companies to clean cars. Yes, there's always this need for an entrepreneur to get bigger, and take on new business, especially if they're doing great work and everyone is referring them and they can't get all the work completed, as they don't want to turn down the money. However, I'd like to give you a few cautionary tales, and explain why sometimes smaller is better. Okay so let's talk about this for second shall we

With the new laws starting in 2014 when ObamaCare comes into being, it will cost you $4500 more for every employee you add. Therefore you if you add a second mobile car washing rig, and it has two people on it, plus the individual who is probably working with you on your first rig, then you can multiply $4500 per year times three as your new increased employment costs. Not to mention your workers comp, payroll, and all the other mandatory withholdings. That's a big cost, and that means you have to wash quite a few more cars just to get it done and pay those extra expenses.

Also, you know that you're a hard worker, and if you are with your helper, you probably work very good together and quite efficiently. But it's hard to duplicate that, because employees just don't care as much as the owner of the company. Further, on your second, third, or fourth rig those employees are out working where you can't see them, they could be making mistakes, or doing things less efficient, but you aren't there to manage them. Sure, you can pay them with incentive pay, give them more money for every car they wash, but then you also have to keep an eye on the cash, because for the most part mobile car washing is a cash business.

Here's the deal, you should get a second rig until you are maxed out with about 130% of the volume you could possibly do on your first rig. If you are so overloaded that you can't get your own schedule done, and you are turning too much business away, you might consider putting together an independent contractor route, which you can rent out to someone else that owns their own truck with their own equipment.

Still, no matter what you do, what the numbers, make money, and don't assume that getting bigger will be better, or that you will automatically make more money. Your cost will increase significantly, and you may actually take home less money, with more headaches. Please consider all this and think on it.

Lance Winslow has launched a new series of eBooks on the Mobile Auto Services Business. Lance Winslow is a retired Founder of a The Oil Change Guys, a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net

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