Troubleshooting Your Business with Andrew Houston

In our third episode of the Troubleshooting Your Business, we are joined by Andrew Houston. Hosted by Kevin Davis from the Cruise Control Podcast, this episode promises a candid discussion about Andrew's business. 

Andrew shares a bit about his background, discussing how he transitioned from working for a corporation to starting his car detailing business. Overwhelmed with bookings, he made the bold decision to leave his full-time job and pursue car detailing full-time. With his father-in-law joining the business for support, Andrew has been steadily growing his venture.

Andrew's been in business for a couple of years with a team size ranging from four to seven. Monthly revenues are around $15,000, while operating costs, labor costs, and fixed costs are $5,600, $3,100, and $19,137, respectively. Based on these numbers, Andrew's margin is approximately 29%. 

He offers various services, including ceramic coating, exterior maintenance, washes, paint correction, and mobile detailing. Some of his strengths include outstanding service, quality interior detailing, and a solid reputation in the community. 

However, he faces challenges with cash flow, employee retention, and inconsistent bookings. His first-level goal is to consistently book larger jobs, add new services, and retain employees.

With three employees and a monthly revenue of $15,000, Andrew's certainly making progress. Kevin asks about salary and learns that Andrew pays himself irregularly, ensuring that basic expenses are covered. 

When it comes to hiring and retaining employees, payroll can be a challenge. In South Carolina, the average hourly wage for detailers is around $13 to $15. But is that enough to prevent people from going out on their own? Grant, who has successfully built a long-lasting team in Pennsylvania, knows the answer. In his area, basic detailers are being paid $35 an hour. It's a whole different world. 

As a business owner, it's natural to always strive for more. The goal is to generate enough revenue to support higher wages. The average range for detailing businesses is around $17 to $20 per hour. 

For those just starting out, like Andrew, who's in his second year of business, achieving a $270,000 annual revenue is exceptional. But he's aiming even higher and wants to reach his two-year vision now. 

Andrew's transition from earning around $15,000 to $22,500 a month with three employees is impressive. But he's not satisfied and wants to keep growing. 

Ultimately, Andrew wants to get close to the salary he made in his previous full-time job, which was around $50,000 to $55,000 per year. His goal is to reach a monthly revenue of $30,000, which would put his take-home pay at around $100,000 per year.

Having a solid financial foundation from their previous jobs gives Andrew and his wife some stability, but they're starting to dip into their savings more than they'd like to. Their vision for the business is to consistently earn $30,000 a month, which would allow them to pay themselves $50,000 each per year.

Watch the entire first part of their conversation below & tune back in in a few weeks for the follow-up to see where the panel’s advice has gotten Andrew to.