Tuesday, November 27, 2012

Is It Wise to Start a Mobile Auto Services Business At the End of 2012 or Beginning of 2013?

Most people may not realize this but service businesses particularly those in the auto sector are generally the last hit by a recession, and the first to recover. Now then, a mobile auto service business, one which is home based has even more advantages. This is because there are no high-rent costs hanging over your head. Does this mean there is little risk to operating a business of this type in an economic downturn?

No, of course not don't be silly - yes, of course there is risk in operating any business especially in a recession. It's just there may be less risk, and with lower costs in the automotive service sector. Thus, it improves you chances of weathering the storm. Okay so, let's talk shall we?

Well, as I write this article we are in the fourth quarter of 2012, and looking ahead at a recession in the first two quarters of 2013. Now then, by definition a recession is two-consecutive quarters of negative GDP growth, so we may not know if we are even in a recession until we are well into the second quarter or even the third quarter of 2013, by then who knows it could be one-third to half over with you see? Do I recommend that you start your business now know this information?

Well, if you are out of work, you might consider it, but no I am not going to necessarily recommend it. Personally, and realize I am retired from this sector, I wouldn't advise anyone starting a business in the US until the socialists are run out of office, or the voters grow up and realize that socialism is a dead end. But, since you are interested let me tell you what I know from experience.

You see, I was in the franchising sector previously, franchising automotive service businesses usually home based where someone could work out of a trailer, van, pick-up, or flatbed truck. We had units operating in 23-states, and we served some 450 different cities. We operated through decades of good times and bad, recessions and growth periods. Times when we couldn't find any labor because Bush's tax cuts had the unemployment rate down to 5.4% and times when the economy was so bad, we had reduced our prices so low, it's amazing we made any money at all, but we went to a "low-down menu" strategy and made it up in volume remaining highly efficient.


What I am saying to you is that it can be done, and no, I wouldn't want to do it again, but it's possible. So, please consider all this and think on it.

Lance Winslow has launched a new series of eBooks on the Aircraft Cleaning and Detailing Business. Lance Winslow is a retired Founder of a The Aircraft Wash Guys, a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net

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