Mon, May 28, 2012, 11:27 AM EDT - U.S. Markets closed for Memorial Day

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First Person: Not Being Properly Licensed for My Small Business Cost Me $500

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When I was only 17 years old, and in search of a job, an older friend of mine suggested that I start a detailing business to put some money in my pocket. Since I had always loved cars and didn't mind cleaning them a bit I thought it was a great idea. However, I had no idea what I was getting into and therefore made no effort to gain any licensing of any kind. Instead I simply went to work. That would prove to be a costly mistake.

Drumming Up Business

One of the ways I used to drum up extra business when I detailed cars was by passing out fliers. I would print them off by the hundreds and then hit the local parking lots and simply place the advertisements under the windshield wipers of all the cars I saw. This worked great, but little did I know that I needed to be licensed in order to do this in my area.

The Call

One day I received a phone call from someone who worked at the courthouse in the licensing department and they asked me to come in with a copy of my occupational license. I went in straight away but I had no license of any kind to bring with me, which I promptly confessed as soon as I got there. That's when I found out how much trouble I was in.

Ignorance is No Excuse

I was informed that I not only had to have an occupational license to run my mobile detailing business, but that I also had to put that license number on all such advertisements. The woman actually had a copy of my ad which I had placed under her windshield wiper.

As I didn't have an occupational license I was fined $250. I was fined an additional $250 for advertising without showing proper proof of a license. I tried to plead ignorance, but she could have cared less that I was a young kid who didn't know any better.

All for the Better

After borrowing the money from my family to pay the fines I decided to get squared away properly with my small detailing business. It worked out in the end as I ran that business for several years before selling it to a friend, but I learned the hard way just how important proper licensing is for any business.

I have since run several other small businesses including the one I run today and with each new business I have obtained the proper licensing right away. This way I can be sure that I don't run into any fines for non-compliance ever again.

 

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