Mobile Car Detailing: Is It a Good Option for a Car Wash Franchise Owner?

Car wash businesses all over the world have been multiplying at a fast clip ever since car owners realized that conventional garage washing is not effective enough to get rid of all the oil, dust, and dirt that have accumulated on their vehicles. That’s why more and more car owners are turning towards the newer methods for car care, such as mobile car detailing, to bring their cars back to their original pristine look.

Auto specialists have begun to expand their businesses to accommodate the influx of vehicles being scheduled for detailing work at their shops. Some of the really big names in the car detailing industry have even opted for franchising in order to expand their customer base and to establish branches across different cities.

Big bucks

A franchise is a contract one party is granted the exclusive rights to market a product or service in exchange for a fixed sum and a percentage of the profits paid to another party. If you seriously wish to participate in a booming market but are not confident that your entrepreneurial skills are enough to start your business from scratch, you might want to opt for a franchise instead.

All you have to do is to fork over the required franchise payment and accomplish the paperwork, and you’re done. Even if you’re buying into a fairly innovative business like a mobile car detailing shop, you can expect to have relative ease breaking into the market.

You don’t even have to have your own physical shop in order to start a mobile car detailing business. All you need is the mobile servicing unit to help you go from location to location and do your job.

Make it your own

Participating in the automobile care industry means acquiring a thorough understanding of how it works, what it takes to grow the business, and what customers (namely, car care owners) need. At the very least, you need some level of entrepreneurial techniques to help you cope with the job of running a full-blown business on your own.

Even though you’re already partaking of a stable business brand, you still have to put in hard work in order to ensure that it will remain successful in the long run. A tried and tested business model can only go so far if you don’t do your share, especially if you’re expanding into the newer technologies like mobile car detailing.

Before you buy into a business, you should have a fair idea of its performance and profits for at least the past five years. Some of the questions you might want to ask are: What is their unique selling point? What is their edge over their competitors? How good is their reputation with customers? What equipment do you need in order to service your customers? These are only just a few of the basic things you need to know before you sign up to become a franchisee, especially of a mobile car detailing franchise.

What’s the deal?

Auto detailing franchisees can expect to avail of exclusive benefits when they open their own franchise. First of all, they will be ensured of an exclusive customer location to ensure non-competition with other franchisees. That means that you will be able to maximize all the profit opportunities in your area instead of sharing them with another franchisee.

Second, your franchiser will provide you with basic car care training before you open shop as well as throughout the life of the franchise. You will also be given a comprehensive operations manual that can help serve you, should you encounter trouble with the business. This is especially important when you’re offering the newer innovations in the business, such as mobile car detailing or waterless car wash.

Finally, you will have extensive business support from a network of fellow franchisees who can help you out if you ever get into trouble in business, as well as share their expertise and knowledge with you.

Opting in a car care franchise means that you will need to help build the brand and grow the business. The market is on a slow but steady rise and the prospects are looking good. The newer trends like mobile car detailing are also quickly gaining popularity among car owners, so you can expect great profit-making opportunities along the way.

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Venture Capital

Venture capital represents financial investment in a highly risky proposition in the hope of earning a high rate of return. While the concept of venture capital is perhaps as old as the human race, the practice of venture capitalism has remained somewhat fragmented and individualized through its long history. Only in the last four decades or so has the field of venture capital acquired a certain coalescence, maturity and sophistication, particularly in the US.

The origin of venture capital in its modern form may be traced to General Doriot, who established the American Research and Development Fund at the Massachusetts Institute of Technology in 1946, to finance the commercial exploitation of new technologies developed in US universities. The small business act of the US permitted the Small Business Administration to license and even support financially small business investment companies engaged in venture capital finance, provided fuel to the growth of venture capital finance.

Larger companies in the US like Xerox, 3M and General Electric entered the field with their venture capital divisions. These examples from the US stimulated the development of venture capital throughout the world. Though the initial efforts made in the early seventies to introduce venture capital were rather unsuccessful, the changed environment of the eighties witnessed a phenomenal growth of hi-tech industries and provided a fertile ground for the blossoming of venture capital.

Venture capital plays a helping hand in the financing of startup and early stage businesses, as well as businesses in “”turn around”" situations. Firms raise funds from different sources. Some funds like share capital are kept permanently in the business. Some funds like debentures are kept for long periods; while some funds are kept for short periods. The entire composition of these funds in an organization is generally termed a financial structure. Generally, the short-term funds are excluded since they are shifting often and the composition of long-term funds is known as capital structure.

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