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Opening a car wash business can be a fun, interesting, and profitable business for somebody with business smarts and perseverance. With the right location, good marketing, and top-notch service, you can draw in numerous customers who need their cars washed quickly, efficiently, and at a good price.
However, opening a car wash business also requires a significant investment, good planning, and attention to detail in order to make your business profitable. If you want to open a mobile car wash: You'll need a tank for your water supply, a good quality pressure washer, supplies like microfiber towels and cleaning chemicals, and of course, a van or truck. Next, apply for all the permits and licenses you need in your state to start a business. Then, choose a location for your car wash, bearing in mind that it should be easily visible from the road, and in an area with a high level of traffic.
Additionally, you'll need to purchase car wash equipment and chemicals, including pressure washers, vacuums, waxes and soaps. For tips on how to write a business plan and how to run a profitable business, read on! This article was co-authored by Angel Ricardo. With over 10 years of experience in mobile detailing, Angel continues to attend auto detailing trainings to improve his customer service and auto detailing skills.
Thangpei Rainam. Learn why people trust wikiHow. Co-authored by Angel Ricardo Updated: October 8, There are 22 references cited in this article, which can be found at the bottom of the page. Research the car wash business. Even if you've worked at a car wash business, you'll need to be up to date on all the latest trends and technologies to have a good understanding of the industry.
Visit other car washes and figure out the type of car wash you would like to open e. When people have more money to spend, they are more willing to pay for a car wash.
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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. 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 business publications 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.
Investigate the competition in your area. In order for your business to be competitive, you need to thoroughly research the other car washes in your area. If you have already chosen a location for your car wash, scope out all the competition within a 5-mile radius. What are their prices? How do they market their business? How often are customers using the services? 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?
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Is it located in a busy shopping center or right off the highway? Draw up a detailed business plan. A business plan will help you get financing to start your car wash and think through the details of your business. Make your plan as detailed as possible. 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. Find the investment capital to open a car wash. You can finance your new car wash through bank financing, a Small Business Association SBA loan, or through private investors. You will also need to have some cash of your own saved up to secure financing from others.
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 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 loan is actually financed by the SBA and has job creation criteria. Choose the location for your car wash business. Having the right location can make or break your business.
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A successful location should be near a shopping center, in a high traffic, residential area, be easily and visibly accessible from the road, allow for expansions and business growth, and have enough space for cars to line up. 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. Get the necessary permits and licenses. You will definitely need a permit or a license to open your business. However, the requirements will differ depending on what state you live in. The SBA website maintains a list of business license offices to help you find the information.
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.
Buy equipment. The equipment you buy will depend on the type of car wash you have decided to open and the services you offer. Full service car wash, self-service car wash, and an automated car wash will all have different needs.