How to Start Car Wash Business

Monday, March 11, 2013

How to Start Car Wash Business

You need to consider a number of factors when starting your own car wash business, particularly the type of car wash itself. Self-service, hand wash, automatic, mobile or a combination must be carefully researched and priced for economic viability, profitability and return on investment. Mobile and hand wash car washes require a smaller upfront investment in equipment, but ongoing labor costs must be considered. Self-service and automatic car washes require less labor, but upfront machinery and real estate costs can be high.

Step 1

Conduct local market research in your area to determine the viability of a profitable car wash and which type of services to offer. Consider area demographics, competition, average weather conditions and other factors. Consider hiring a market research firm or business consultant for this task.

Step 2

Contact car wash equipment and supply distributors and request information on specifications and pricing. Your distributor will be an excellent source of knowledge as to what will be required to start your new car wash.

Step 3

Create a car wash business plan based on your market research and equipment choices which includes all aspects of the business. A business plan will be needed when applying for financing, and you may wish to hire a business consultant for this task. Alternatively, you may visit the U.S. Small Business Administration or SCORE websites for business plan and other start-up information (See resources).

Step 4

Decide on a business structure for your car wash business. You may operate as a sole proprietor, corporation, partnership or limited liability company. Your attorney, the SBA, SCORE or business consultant will provide information as to which structure is right for your business and personal situation. The paperwork for your business structure is available by visiting your state's business regulatory website.

Step 5

Locate a building or work space that will provide the necessary utilities and space requirements for the car wash. If you are operating a mobile business, locate a suitable vehicle large enough to hold and transport your mobile equipment.

Step 6

Apply for financing sufficient for the purchase, lease or rental of your building, vehicle, start-up expenses, equipment, supplies and operating capital through your bank or the SBA.

Step 7

Obtain all necessary local business permits, zoning variances, environmental and safety inspections (where applicable), state tax registration certificate, federal tax identification number and Employer Identification Number from the Internal Revenue Service if hiring employees.

Step 8

Purchase equipment and supplies and outfit your car wash.

Step 9

Purchase business liability insurance from your local insurance agent.

Things Needed

Tips

Consider a franchise if you are new to the business, or desire a turnkey operation. Franchises can provide everything from training, market research and business planning, site selection and construction, machinery, supplies and ongoing support for an upfront fee and a royalty percentage of monthly sales.
If you plan to open a mobile or hand wash operation, training is recommended and available from many car wash supply distributors. Training will enable you to learn the business end and practical, proven car washing and detailing techniques.

You'll need a decent sized van and you'll go to the customer's car, wherever that may be!
If you're based in Scotland you need a license to trade in this business. Not the case in the rest of the UK.
You'll need professional biodegradable car cleaning products, not a bottle of Turtle-wax you've just picked up at the supermarket.
To make sure you carry out a good job it's essential to regularly replace your water (if you use it), cloths, buckets, sponges and leathers. No customer will thank you for cleaning their car with dirty equipment.
The environment agency provides specific guidance on waste water regulations relating to car washing.
Try to get a mixture of private work and small car dealerships. The private work pay a better rate but the car dealers will provide regular work.
Get your van properly sign written van and wear a uniform if you choose this in your list of small business ideas.
The British Institute of Cleaning Science provide certificates in car valeting skills. They're not cheap but more information can be found at the b-skill website.
Other training options are provided by Autoglym, who are coincidentally one of the biggest suppliers of professional car cleaning products in the UK, and one of their main competitors Auto-smart.
Anyone starting this type of business would be advised to join the National Association of Vehicle Valeters and subscribe to Professional Valeter magazine.
You won't be allowed to simply pour water all over the place... you'll have to use a waterless cleaning system or use specialized tanks installed in your van, together with water containment mats and pumps to collect any run off water.
The run off water collected has to be disposed of legally and you'll have to register as a waste carrier so you can transport it to a disposal site.
You have to be fully aware of health and safety procedures as you will be handling potentially hazardous substances.
You'll need to be well insured and there are several insurance firms in the UK who offer dedicated policies for the car valeting industry.

Warnings

Hand and mobile washing require a degree of physical fitness and stamina, so make sure you are up to the task.
Car washes of any type may be subject to environmental restrictions and operational procedures in your area. Contact your local Environmental Protection Agency field office for details on drainage and chemical use. Failure to do so may result in serious fines and criminal penalties.

References (5)

Resources (4)

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Car Wash Business

2 comments:

AnonymousApril 26, 2013 at 6:36 PM
Starting a car wash business is easy because it's not risky business. We can easily start a car wash business in less amount. Here, I gain a good knowledge on how to start a car wash business.

Lone Mountain Truck Leasing
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Car Wash BusinessDecember 9, 2013 at 10:37 PM
Car Wash Business, Car Wash Center, How to Start Car Wash Business
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Monday, March 11, 2013