Sunday, July 17, 2011

Mobile Car Washing and Fleet Cleaning Cost Cutting Considerations

The other day, I received a question from a mobile car washing, detailing, and fleet washing entrepreneur in the South. He was happy to be busy and still in business even with our slow economy. He has been steadily expanding his company, and has trained a new crew and bought a new unit to help keep up with his new accounts.

Still, there are always cash flow issues to watch in service businesses, especially during times of expansion, with large corporate customer contract accounts that often pay slow. Okay so, lets' talk about some of the real life challenges out there shall we - the entrepreneur and mobile service operator asks:

"Dear Mobile Car Wash Man, I have some good accounts, but they are a good distance from home. I am spending a good amount on supplies as well as fuel. I am also paying employees. So the money I make is basically going out the door. What kind of advice do you have for me?"

Well, there are several things you can do to streamline your operation in this case. You see, what you need to do first, is to find some nearby "extra accounts" near those large fleets that you travel too, just a couple of smaller accounts nearby or along the way on the same schedule will help a lot, plus attempt to find some cash accounts along the way, where you can clean vehicles and be paid on the spot.

If you end up adding a lot of "billed customers" then you need to also add in some pay-in-cash customers to offset the costs until you finally receive the checks in the mail. Also, consider only taking one other employee on the jobs far away, until your cash flow improves, yes more work, but less money to pay out too.

Also, try to pull your trailer empty to and from and fill up water when you get there and dump any extra water before you return, this way you can drive on cruise control. Also make your workers bring a lunch to save additional money.

You might also find a worker who lives near those accounts to pick up and help you, thus, not have to pay them all that traveling time. Indeed, I think if you will do these things you can tighten up your outlays and costs, and increase revenue at the same time without putting you in the poor house waiting for those big checks to come in. Please consider implementing these strategies as soon as possible. Okay, next questions!

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 24,222 articles by July 22, 2011 at 2:22 PM is going to be difficult because all the letters on his keyboard are now worn off now..


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