For example, people use car washes more when the economy is doing well and when motor vehicle sales are up. When people have more money to spend, they are more willing to pay for a car wash. Knowing the car sales statistics in your area could help you predict success for your business. Talk to car wash owners, car wash suppliers, and car wash equipment manufacturers. You want to understand the car wash business from all sides so you know what you are getting into. [2] X Research source The International Carwash Association is a good resource to learn about the industry and the current trends. [3] X Research source In addition to doing some in person visits, it might help, at this point, to read some internet trend reports and business periodicals. Find out what the demographics are in your area and read up on how car wash businesses are doing in areas with similar demographics. Read some business publications, too, to find out what the newest materials and equipment are. The car wash industry is developing more energy efficient and environmentally friendly materials, so it’s important to stay abreast of new developments.
Take notes as you investigate the car washes. You can go back and review them as you make plans for your car wash. Also pay attention to the other businesses around the car washes. If a car wash has a high volume of customers, what are some of the factors that are contributing to this? Is it located in a busy shopping center or right off the highway?
The introduction should include your Executive Summary, table of contents, and a cover page. Your market analysis demonstrates your knowledge of the car wash industry and the results of any market research and analysis that you have done. Who are your customers and what are their purchasing habits? What are the risks, strengths, and weaknesses involved with opening a car wash? What is your projected revenue based on the current market and future market trends? Your company description should include information about your car wash business and why you think it will be successful. The organization and management section should detail the structure of your company, the board of directors, and the qualifications of your management team. The marketing and sales portion should clearly outline your marketing strategy. How will you get customers? What avenues will you use to reach them? What is your overall sales strategy? The product or service section outlines exactly what you will be selling. How does your car wash business fill a void in the market? Why would people want to use your car wash as opposed to other car washes? The equity and funding section details exactly how much money you will need to start your business and what financial resources you already have to invest in the business. The financial information is the most important part of your business plan and should be reviewed by an accountant or financial planner. Include your personal financial information, any existing businesses you have, a list of debts, projected income for 5 years, and certification that your information was reviewed by a 3rd party financial adviser.
A bank loan requires a loan-to-value ratio of 75%. You will need to come up with 25% of the fair market value and the bank will fund the other 75%. It will be harder for you to secure bank financing if you have never owned a business before. An SBA loan will either be a 7a or a 504. If you get a 7a loan, the SBA will partner with a local investor. Your actual loan will be financed by the local lender. A 504 loan is actually financed by the SBA and has job creation criteria. [6] X Research source The start-up costs for a car wash range from $100,000 - $400,000.
Your sign is visible to drivers for at least 40 seconds. Ideally, traffic should travel past at no more than 40 miles per hour (64 km/hr) so drivers have time to see your signage and make that split-second decision to have their cars washed. Choose a venue large enough to accommodate the bays, pump rooms, vacuum and drying areas, and the office. Check your city’s zoning regulations to be sure you are allowed to open a car wash at your chosen location. If you need a special permit, obtain it before you buy or lease your venue. It is helpful to work with a real estate agent, city planner, lawyer, and/or an accountant to get the best deal on a location. [7] X Research source
Ask your state business office about the insurance requirements for your car wash business. Once you get all of the necessary permits and licenses, keep track of your renewal dates and make a copy for your business records. You will also need to display your license in your car wash so that customers can see it.
If you buy the cheapest version of everything, you might be able to get started for about $2000. If you want a nicer setup, it will probably run you about $5000 or more. [10] X Expert Source Angel RicardoAuto Technician Expert Interview. 1 October 2019. The International Carwash Association has a supplier guide to help you find reputable manufacturers. [11] X Research source Look in trade magazines like Auto Laundry News and Modern Car Care to buy your chemicals. It is best to buy from big manufacturers. [12] X Research source Make sure the distributor of your equipment is available to service your equipment when needed. Find out how they handle equipment servicing before you buy from them.
Social media is an important aspect of marketing these days. Set up a website and establish a presence on Twitter and Facebook. Make sure any of the paper items that you have include links to your website and social media accounts. Use your website to share information about taking care of your car and other relevant tips. Schedule a visit to your local radio station to discuss your new business. Consider starting a loyalty program. This will encourage repeat customers instead of people who use the coupon one time and never return.
Invite friends, neighboring businesses, your supplies, and the media Give away free car washes and promotional items.
Do I have enough space or will I need additional space? How much will it cost? What will be the return on my investment? Will people buy this service?
It is important that you complete the detailing portion of your services is completed quickly. The speed and low cost of the service make it attractive to your customers. Make sure that you advertise your detailing services to your customers. Check the prices of similar services at a free-standing detail shop to help you determine your prices. Also, check the prices of other car washes in your area that offer these services so that you can be competitive.
Choose a keyword (e. g. water, wash, clean) and advertise by saying, “Text water to 12345 to get special discounts, specials, or coupons. " You could also say “Text 12345 to get $3 off your next car wash. " It only costs one or two pennies to send a text message. Text your customers once a month with a special.
Consider pricing your passes to cost 2 or 3 times the price of a single wash. If you find that customers are not interested, you may need to adjust your price. You can offer different price points based on the type of car washes you offer. For example, a monthly pass for basic car washes would be less expensive than a monthly pass for premium car washes.
