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 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.
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Car Wash Business, Car Wash Center, How to Start Car Wash Business
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