14 Steps How To Start A Car Wash Business

(doylc.com) How To Open a Car Wash Business - Opening a car wash business can be a fun, interesting, and profitable business for someone with business acumen and perseverance. With the right location, good marketing and first class service, you can attract numerous customers who want to wash their car quickly, efficiently and at a good price. However, opening a car wash business also requires a significant investment, good planning, and attention to detail to make your business profitable.

• How to plan your car wash

1. Visit a few car washes to get a feel for what might work. Even if you've worked in a car wash, you need to be up to date with the latest trends and technology to have a good understanding of the industry. Visit other car washes and find out what type of car wash you want to open (e.g. self-service, automatic, waterless, full cleaning, etc.)

For example, people use car washes more often when the economy is good and car sales are rising. When people have more money to spend, they are more willing to pay for a car wash. If you know the car sales statistics in your area, you can predict the success of your business.

Talk to car wash operators, car wash providers and car wash manufacturers. You want to understand the car wash business from all angles so you know what you're getting into.

The International Carwash Association is a good source to find out about the industry and current trends.

In addition to a few personal visits, it can be helpful at this point to read some Internet trend reports and business magazines. Find out what the demographics are in your area and see how car wash companies are performing in areas with similar demographics.

Also read some business publications to find out what the latest materials and equipment are. The car wash industry is developing more energy efficient and environmentally friendly materials, so it's important to keep up to date with new developments.

2. Investigate all competitors in your area. In order for your business to be competitive, you need to do thorough research on the other car washes in your area. If you've already chosen a location for your car wash and haven't visited everything in the area, explore all the competitors within a 5 mile radius. What services do they offer? what are their prices How do you market your company? How often do customers use the services?

Take notes as you examine the car washes. You can go back and check them out while making 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 factors contribute to it? Is it in a busy mall or just off the freeway?

3. Create a detailed business plan. A business plan will help you get financing to start your car wash and start thinking about the details of your business. Make your plan as detailed as possible. The business plan should include an introduction (3-5 pages), market analysis (9-22 pages), company description (1-2 pages), organization and management (3-5 pages), marketing and sales strategies (4-6 pages), product /service (4-10 pages), application for participation and funding (2-4 pages), financial information (12-25 pages).

The introduction should include your summary, a table of contents, and a cover page.

Your market analysis will demonstrate your knowledge of the car wash industry and the results of any market research and analysis you have conducted. Who are your customers and what are their buying habits? What are the risks, strengths and weaknesses associated with opening a car wash? What is your projected revenue based on the current market and future market trends?

Your business 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 part 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 describes exactly what you will be selling. How does your car wash business fill a gap in the market? Why would people want to use your car wash as opposed to other car washes?

The Equity and Funding section describes exactly how much money you need to start your business and what financial resources you already need to invest in the business.

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 a certificate that your information has been verified by an outside financial advisor.

4. Find the investment capital to open a car wash. You can finance your new car wash with bank financing, a Small Business Association (SBA) loan, or private investors. You must also have some money saved of your own to secure funding from others. The best way to do this is to present your business plan to your potential investor and show how your idea can become a viable business.

A bank loan requires a 75% loan-to-value ratio. You have to pay 25% of the market value, the bank finances the other 75%. You will find it more difficult to secure bank financing if you have never owned a business before.

An SBA loan is either a 7a or a 504 loan. If you get a 7a loan, the SBA works with a local investor. Your actual loan is funded by the local lender. A 504 loan is actually funded by the SBA and has job creation criteria.

The initial cost of a car wash ranges from $100,000 to $400,000.

5. Choose the location for your car wash business. The right location can make or break your business. A successful location should be near a shopping mall, in a high traffic residential area, be easily and visibly accessible from the street, allow for expansion and business growth, and have enough space for cars.

Your shield is visible to drivers for at least 40 seconds. Ideally, traffic should pass at no more than 40 miles per hour (64 km/h) to give drivers time to see your signage and decide in a split second to have their cars washed.

Choose a site large enough to accommodate the pens, pump rooms, vacuum and drying areas, and office.

Check your city's zoning regulations to ensure you're allowed to open a car wash in your chosen location. If you require special permission, obtain it before purchasing or renting your venue.

It is helpful to work with a real estate agent, town planner, lawyer and/or accountant to get the best deal on a location.

• How to opening of your car wash

6. Get the required permits and licenses. You definitely need a permit or license to open your business. However, the requirements differ depending on which state you live in. The SBA website maintains a list of business licensing offices to help you find information. In addition to a trade license, you need a federal tax identification number and, if necessary, a sales tax certificate, wage tax deduction and unemployment insurance tax.

Ask your regional office about the insurance requirements for your car wash.

Once you have obtained all necessary permits and licenses, keep track of your renewal dates and make a copy for your business records. You must also display your driver's license in your car wash for customers to see.

7. Buy equipment. The equipment you buy depends on the type of car wash you have chosen and the services you offer. Full-service car wash, self-service car wash, and an automated car wash all have different requirements. Typically you will need a car wash (e.g. pressure washer, conveyor belt, self-service equipment, mobile car wash), chemicals (e.g. cleaning solutions, wax, stain-free dish soap, conditioner, soaking agent etc.), dryer, blower, vacuum cleaner, brush, Towels, compressors, pumps and a water system (e.g. boiler, water heater, water filter, range hood, etc.) and a billing system.

If you buy the cheapest version of everything, you can potentially get started for around $2000. If you want a nicer setup, it will likely cost you around $5000 or more.

The International Carwash Association has a supplier guide to help you find reputable manufacturers.

Check trade publications like Auto Laundry News and Modern Car Care to buy your chemicals. It is best to buy from large manufacturers.

Make sure your gear dealer is available to service your gear if needed. Find out how they handle device maintenance before you buy from them.

8. Market your business. Use a multi-faceted approach to promoting your business that includes flyers, posters, and an online presence. Your car wash signage should be colorful and convey clear messages. Make sure people can see it clearly from the street. A popular way to attract new customers is by handing out coupons or laundry discounts. Also, develop relationships with other small businesses near your car wash.

Social media is an important aspect of marketing these days. Set up a website and build a presence on Twitter and Facebook. Make sure any paper items you have have links to your website and social media accounts.

Use your website to share car care information 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 once and never come back.

9. Hire employees. A car wash is very customer oriented. Your employees should be punctual, efficient, competent and good at communicating. During interviews, pay attention to body language and communication skills to get an idea of ​​how the person will interact with clients and colleagues. Also, always check the references of potential employees.

10. Open your car wash. Do a soft opening of your car wash before you have a grand opening. Wait at least 30 days before having the big event. You want to solve some of the problems and get comfortable with car washing before you make a big deal. Think of a grand opening as a party and social event that you want to promote.

Invite friends, neighboring businesses, your supplies and the media

Give away free car washes and promotional items.

• Run a profitable business

11. Add services. Many car washes have combined other services and businesses with their car wash to increase sales. Additional services make your car wash more attractive to customers and stand out from the crowd. A convenience store restaurant, a barber shop, or even an expanded waiting area (e.g., TV, free coffee, comfortable seating, etc.) are possible additions. Before you invest in an add-on service, ask yourself a few questions

Do I have enough space or do I need additional space?

How much will it cost?

What will be the return on my investment?

Will people buy this service?

12. Provide express processing services. Express detailing services are services (e.g. wax, sealant, carpet shampoo) that can be completed in 30 minutes or less and are performed to maintain the appearance of your customer's vehicle. Because you already have the space and equipment, you can offer these services at a lower price than a freestanding detail shop. Also, it is more convenient for your customers to have their car washed and treated in one place.

It is important that you complete the detailing portion of your services quickly. The speed and low cost of the service make it attractive to your customers.

Make sure you promote your detailing services to your customers.

Check the prices of similar services at a freestanding retail store to determine your prices. Also check the prices of other car washes in your area that offer these services to stay competitive.

13. Use text messages to contact customers. Text marketing is an inexpensive and effective way to market your business to your customers. Your customers redeem mobile coupons at a much higher price than printed coupons. Even if a customer doesn't use a coupon, you're still building your brand and spreading the word about your business.

Choose a keyword (e.g. water, washing, cleaning) and promote it by saying “Send 12345 an SMS with water to receive special discounts, special offers or coupons.” . "

It only costs a penny or two to send an SMS.

Send your customers a special message once a month.

14. Offer monthly or unlimited passes. Monthly and unlimited passes ensure stable earnings even when customers don't actually come to the car wash. This is also a method you can use to build a stable customer base. Evaluate these passes carefully. The price should be low enough for customers to feel like they got a good deal and high enough for you to make a profit.

Consider pricing your passes at 2x or 3x the price of a single wash. If you find customers are not interested, you may need to adjust your price.

Depending on what type of car wash you offer, you can offer different price points. For example, a monthly pass for a basic car wash would be cheaper than a monthly pass for a premium car wash.