Door-to-Door Detail

Business Plan
Prepared by Taisa Stocks
A. Executive Summary..........................................................................................................4
A1. Company Identification........................................................................................................................................4

A2. The mission of Company......................................................................................................................................4

A3. Business Goals......................................................................................................................................................4

A4. Keys to Success.....................................................................................................................................................4

B. Company Summary..................................................................................................................................... 5
B1. Industry History....................................................................................................................................................5

B2. Legal Form of Ownership.....................................................................................................................................5

B3. Location and Facilities..........................................................................................................................................5

B4. Management Structure........................................................................................................................................5

B5. Products and Services...........................................................................................................................................5

C. Market Analysis.......................................................................................................................................... 6
C1. Target Market......................................................................................................................................................6

C2. Industry Analysis..................................................................................................................................................6

C3. SWOT Analysis.....................................................................................................................................................7

D. Market Strategy.............................................................................................................................................. 8
D1. 4Ps.......................................................................................................................................................................8

D2. Price List..............................................................................................................................................................8

D3. Promotional Strategy..........................................................................................................................................8

D4. Sales Forecast......................................................................................................................................................8

E. Implementation Strategy................................................................................................................................. 9
E1. Overall Strategy....................................................................................................................................................9

E2. Monitoring Plan....................................................................................................................................................9

F. Financial Statements and Projections............................................................................................................. 10

F1. Forecasted Profit and Loss Statement................................................................................................................10

F2. Forecasted Balance Sheet...................................................................................................................................10

G. Financial Report............................................................................................................................................ 11
G1. Financial Projections..........................................................................................................................................11

G2. Financial Position...............................................................................................................................................11

G3. Estimated Capital/Investment Needs................................................................................................................11

H. References.................................................................................................................................................. 12
 A. Executive Summary
A1. . Door-to-Door Detail, located in Johnstown, Colorado.
A2. The mission of Door-to-Door Detail is to provide efficient, convenient, mobile auto detailing
services to our customers and community.
A3. The first goal of Door-to-Door Detail is to have a 95% response rate to customers through
every communication channel. To support the company’s mission to be efficient it will be
necessary to make sure that when customers try to reach us we are responding and doing so
promptly.
The Second goal of Door-to-Door Detail is to have a rate of 80% job completion in three
days. The mission of the company to be convenient through mobile services means that jobs
will need to be finished in a timely fashion from contraction to completion.
A4. The first key to success will be to purchase a reliable vehicle. The company has a vision and
goal of being mobile and responding quickly. To realize this quality, dependable vehicles will
need to be acquired.
The second key to success will be to invest in online scheduling platforms such as google
business or a personalized website. The company has a goal of efficiency. This goal can be
realized if customers can make appointments at any time, even when a physical employee isn’t
available.
The third key to success will be to invest in the equipment necessary for car detailing.
For the company to provide auto detailing services they will need the proper equipment to
perform the service.
 B. Company Summary
B1. Industry History: The auto detailing industry began over 200 years ago when animal fat was
used to protect the paint on horse-drawn carriages. There have been several advancements in
technology. In 1910 Simons Manufacturing Company created cleaner and wax specifically for
cars. In 1925 masking tape made it possible for painters to get better lines. In the late 20 th
century inventions of polymer coatings, paint sealants, and portable vacuums revolutionized
auto detailing (DetailXPerts, 2015) Detailing became more desirable in the 70s when older cars
gained higher values and new cars became more expensive people were incentivized to care for
their vehicles. Mobile detailing is a natural progression so that detailing is more convenient and
sustainable (Turner, 2018)
B2. Legal Form of Ownership: Door-to-Door Detail will be a Limited Liability Company (LLC).
B3. Location and Facilities: This is a mobile business. The facilities will be primarily a van
containing the detailing equipment that will be stored in the secure parking lot of the owner’s
home in Johnstown, Colorado.
B4. Management Structure: The management structure will be flat. The owner will be the only
employee at this time. The owner is responsible for facilitating and completing all contracted
jobs. The owner is responsible for all communication between the company and the customer,
as well as processing payments. All accounting functions, such as taxes, payroll, and bills will be
the responsibility of the owner. If the company grows it will evolve into a team structure
B5. Products and Services: Detailing is a more detailed form of auto maintenance. All company
services are mobile, we come to you. Door-to-Door Detail will provide buffing, waxing, clay,
washes, paint touch up, and vacuum/shampooing services. These services will be offered in
bundles so customers get a truly efficient detail (Wallis, 2022).

C. Market Analysis
C1. Target Market: Door-to-Door Detail will be business-to-consumer. The geographic target
market is located within 35 miles of Johnstown, Colorado. The target demographic is male
oilfield workers, single or married, with disposable income.
C2. Industry Analysis: According to Govdysh (2023) competition in this industry is high.
However, barriers to entry are rather low. There are few regulatory barriers and does not
require large amounts of initial capital. The work is high-margin and relies heavily on labor.
Govdysh (2023) states that one of the key factors for success is being close to key markets
where there are busy roads and frequent car usage. Johnstown, Colorado is within the range of
people who commute to Denver, Colorado for work. According to Paul (2016), nearly 43% of
the people who work in Denver commute. The profit of this market was averaged at 16.1% of
industry revenue in 2023. Wages are considerably higher at 30.7% of industry revenue
(Govdysh 2023). With all labor coming from the owner it will be possible to lower labor costs
and increase profit. Globalization in this industry is very low as is market share concentration.
This market is characterized by many small, competing companies (Govdysh 2023). The average
price per detail for Colorado is $165.75, with the high-end price reaching $213.75
(Macdonald,2020b).
C3. SWOT Analysis:
a.

S (Strengths) W (Weaknesses)

1. More affordable 1. Limited Staff

2. Fast Response 2. Limited Time

3. Flexible to Change 3. Limited Equipment

O (Opportunities) T (Threats)

1. Expanding customer base 1. Established Competitors

2. New User Interface 2. Unpredictable Fuel Prices

3. Increase Product Range 3. Increased cost of living

b. The company has the strength of being more affordable because there are fewer

overhead costs than competitors as we are completely mobile and can therefore charge less.

The company’s ability to respond quickly, due to a flat structure, will help to ingratiate the

company with customers. The company has a minimal structure that also allows it to be

dynamic and adjust to change. The company will be able to create more specialized customer

care through its flexibility.

The weakness of the company is a limited staff. The number of staff determines

productivity and the limited staff may make it difficult to expand. The limited staff also limits
the time available for services. A smaller service timeframe can cost customers. Limited

equipment can potentially lead to missed jobs where even if you have the staff, you may not

have the equipment available.

The company being mobile creates the opportunity to expand its customer base by

expanding the geographical location that is serviced. The company can take advantage of online

scheduling services to provide customers the opportunity to schedule without needing to call, a

service not offered by competitors. The company will also have the opportunity to increase its

products and provide deeper cleaning services or even auto wrapping services.

There is a decent amount of competition in Johnstown Colorado for auto detailing. It

can be difficult to take business from established service providers. As this is going to be a

mobile business that drives to the customers fluctuating fuel prices can cut into profit margins

and lead to price changes that hinder consistency. Auto detailing is a luxury service good. This

means that business can become very slow if there is an increase in the cost of living that leads

to a decrease in disposable income.

D. Market Strategy
D1. 4p’s: Product- Door-to-Door Detail will provide 2 service products. The first service product
is interior detailing. This service will include vacuuming and steam cleaning carpets, scrubbing
and brushing the interior parts, glass cleaning, leather or cloth cleaning for seats, and
deodorizing the car with a clean scent. The other service product is exterior detailing. This will
include wash and dry, polishing, paint claying, and sealing or waxing (MacDonald, 2020a). A
bundle product will be offered where the customer can get both services for a reduced price.
The service itself cannot be branded but the mobile company vehicle will have the company’s
logo and phone number on it.
Price- The average price per detail for Colorado is $165.75, with the high-end price
reaching $213.75 (Macdonald,2020b). This is the price for an exterior or interior detail on an
average car. To combat stiff competition the company will use a penetration pricing strategy.
Our prices will be set below the average in our area and provide further reduced pricing on
bundles.
Promotion- To be successful we will have to make ourselves very visible so that we
aren’t lost in the competition. We will achieve this by having a very strong online presence.
Using Facebook, Google, and a personal website that allows customers to reach us always. We
will also have direct marketing and post flyers in places with high foot traffic like restaurants
and grocery stores. We will drum up excitement by offering a 15% discount for our first 5
customers which will be advertised on all our platforms.
Place- Part of Door-to-Door Detail’s mission is to make detailing services convenient and
mobile. We will go right to our customer’s doors. The mobile vehicle will have all of the
equipment necessary including a water tank. Any supplies will be procured directly from a local
auto care shop by the owner. Customers will be able to contact the business through our online
business pages or by phone. Once a service is requested, we will come to them.
D2. Price List:

Type of Vehicle Interior Exterior Bundle (Both)

Car $140 $140 $240

Small SUV $160 $160 $270

4 Door Truck $175 $175 $290

Large SUV $175 $175 $290

 D3. Promotional Strategy: Launch Date- January 1st

Task Completion Date Responsible Party

Create Website 05-Dec Owner

Create Google Business and optimize search terms 10-Dec Owner

Create Facebook Page 10-Dec Owner

Create targeted online ads 15-Dec Owner

Create Flyers 15-Dec Owner

Start Posting Flyers and generating word-of-mouth 20-Dec Owner

Offer a %15 percent discount to the first 5 10-Jan Owner

customers

D4. Sales Forecast: Govdysh (2023) states that one of the key factors for success is being close
to key markets where there are busy roads and frequent car usage. Johnstown, Colorado is
within the range of people who commute to Denver, Colorado for work. According to Paul
(2016), nearly 43% of the people who work in Denver commute. The area also has several
oilfields nearby that feed our target demographic. Demand should be relatively steady with
seasonal increases in the summer as people in Colorado do more outdoorsy things like camping
and trips to the lake that would necessitate deeper than usual cleaning. The main constraint for
sales will be the labor as it is a single-employee company and maintaining consistency with the
competition. Due to the heavy competition, the forecast is rather conservative with the
summer months still averaging less than 2 customers a day for a 20-day work month. Sales are
lower in December and January as those months have holidays and people will likely prioritize
gifts over luxury service spending. More single services were accounted for in the forecast as it
is more likely that people will choose one of the less expensive options.

Jan Feb Marc April May June July Aug Sep Oct Nov Dec
h

Single $1,28 $1,92 $2,24 $2,24 $2,24 $2,40 $2,72 $2,72 $2,40 $1,92 $1,28 $1,28
0 0 0 0 0 0 0 0 0 0 0 0

Bundl $1,08 $1,08 $1,62 $1,62 $1,62 $1,89 $2,97 $2,97 $1,89 $1,08 $1,08 $1,08
e 0 0 0 0 0 0 0 0 0 0 0 0

Total $2,36 $3,00 $3,86 $3,86 $3,86 $4,29 $5,69 $5,69 $4,29 $3,00 $2,36 $2,36
Sales 0 0 0 0 0 0 0 0 0 0 0 0
E. Implementation Strategy
E1. Overall Strategy:

Implementation Strategy

Task Completion Date Responsible Party

Meet with a lawyer to establish LLC 10-Sep Owner

Obtain a Business License 15-Sep Owner

Open a business checking account 20-Sep Owner

Purchase Van 5-Nov Owner

Order Equipment 5-Nov Owner

Take an online training class 1-Dec Owner

Assemble the van with equipment 1-Dec Owner

Implement Promotion Plan 5-Dec Owner

Launch Date 2-Jan Owner

E2. Monitoring Plan:

Monitoring Strategy
Task Frequency Responsible
Party
Links to satisfaction surveys will be emailed to every Weekly Owner
customer. Results will be reviewed and responded to as
needed.

Ad data will be reviewed for effectiveness and Quarterly Owner

engagement.

Online Reviews will be monitored and responded to as Weekly Owner

needed.

A report on the real sales will be reviewed with the Monthly Owner
forecast and next month’s forecast updated accordingly.

The owner will create financial reports to determine if Quarterly Owner

current pricing and productivity are sustainable.
F. Financial Statements and Projections
Please see attached.
G. Financial Report
G1. Financial Projections: During the first year of operations the owner sought to keep
operating expenses under $100 by not taking a paycheck each month. This allowed the
company to reach profitability every month. Advertising expenses of $50 were listed for the
first three months. Advertising was essential for market penetration but after the 3-month
mark, the company had enough exposure that it was less necessary. Because this is a mobile
business fuel is one of the biggest expenses. Monthly fuel costs were calculated under the
assumption that the van had a 25-gallon tank and averaged 20 miles to the gallon. Each service
call was averaged as a 20-mile drive and fuel prices were averaged at $5 a gallon. The fuel price
rises in the summer because there are more service calls in those busier months. According to
TRUic (2023), basic business insurance in Colorado would cost at least $65 a month. Website
maintenance was averaged between $5-500 (J & S, 2023). Because the company strategy
involves having a strong online presence the company would likely pay more than average,
$100 was a figure that wasn’t exorbitant but that would allow the company website many
necessary customer features, such as scheduling. The average annual car insurance in Colorado
is $1901.85 (Martin, 2023). This averages out to a monthly expense of $158. The MSC. supplies
category is there to cover the small expenses that are hard to calculate. It is safe to assume that
some minimal cost will be incurred. However, since this is a small business that relies heavily on
its equipment more than anything, a conservative estimate of $50 monthly seemed suitable.
The owner of the company invested $30,000 initially. The final Net Profit was $39,082. This
means that the owner personally increased the value of his investment by $9,082. The company
has a healthy cash flow and if they wait a year or two to expand, they should be able to do so
without taking out a loan.
G2. Financial Position: Door-to-Door Detail will end each month of its first year with a profit.
This is due largely to the fact that there are no loans or wage payments. As the owner is the
only employee, wage payments are not taken out of profits. This allowed the company to end
with a large amount of cash on the balance sheet, $43,480. If the owner decided to expand
they would see less profit initially as they would have to start taking wages out of every month,
which would decrease cash and increase total liabilities. The company is in good financial
standing at this size. Profit margins will temporarily decrease if the company decides to expand
but would eventually jump back up as revenues increased.

G3. Estimated Capital/Investment Needs: The initial investment in the company was by
the owner in the amount of $30,000. This money went primarily to securing a vehicle and
equipment. See the list below. If the company decides to expand by adding another van, it will
need all of the same investment costs as the beginning minus advertising, $23,242. Employee
wages will be taken out of the increased business capacity.
 Capital Needs (Mobile Tech RX Team, 2020)

Item Cost

Mechanical Polisher and Sander $500

Foam Pads $80

Paint Thickness Gauge $200

Headlight Restoration Kit $27

Wash Bucket $55

Detailing Hoses and Reels $200

Vacuum Cleaner $150

Carpet and Upholstery Extractors $1,500

Detailing Steamer $200

Ozone Generator $150

Detailing rags $30

200-gallon water tank $100

Van $20,000

Van Logo $50

Advertising $200

Total $23,442
H. References
DetailXPerts (Ed.). (2015). Auto detailing: A brief history. DetailXPerts. Retrieved from
https://www.detailxperts.net/blog/2015/09/17/auto-detailing-a-brief-history/
Govdysh, A. (2023). Car wash & auto detailing in the US. Ibisworld. Retrieved from
https://my.ibisworld.com/us/en/industry/81119a/competitive-landscape
J, T., & S, A. (2023). Website maintenance cost in 2023 + hiring a professional vs self-
maintenance. Hostinger Tutorials. Retrieved from
https://www.hostinger.com/tutorials/website-maintenance-cost
MacDonald, S. (2020a). The beginner's guide to professional car detailing. MobiletechRX.
Retrieved from https://www.mobiletechrx.com/resources/beginners-guide-professional-
car-detailing/
MacDonald, S. (2020b). Average car detailing prices in US: How do your prices compare?
MobiletechRX. Retrieved from https://www.mobiletechrx.com/resources/car-detailing-
prices/
Martin, R. (2023). How much is car insurance in Colorado. The Zebra. Retrieved from
https://www.thezebra.com/auto-insurance/colorado-car-insurance/co-average-cost-of-
auto-insurance/
Mobile Tech RX Team. (2020). Car detailing equipment for professional detailers. MobiletechRX.
Retrieved from
https://www.mobiletechrx.com/resources/car-detailing-equipment/#:~:text=Interior
%20Car%20Detailing%20Equipment&text=One%20of%20the%20more%20expensive,you
%20need%20mobile%20detailing%20supplies).
Paul, J. (2016). 43 percent of Denver-area workers commuted 30 minutes-plus to their jobs las
year. The Denver Post. Retrieved from
https://www.denverpost.com/2016/09/15/denverarea-work-commutes/
TRUic Team (Ed.). (2023). Colorado business insurance. TRUic. Retrieved from
https://howtostartanllc.com/business-insurance/colorado
Turner, M. (2018). The history of auto detailing. Bowtie Detail Services. Retrieved from
https://bowtiedetailing.com/history-auto-detailing/
Wallis, K. (2022). Car wash vs car detailing: What's the difference? Elite Window Tinting.
Retrieved from https://elitewindowtint.net/car-wash-vs-car-detailing.