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How to Start a Car Wash Business
Car Washes are a great business to be in because of
the fact that we live in an automobile society. And as long as there are
cars, there will always be plenty of demand for all types of car wash
services. But do keep in mind before starting a car wash business to do
due diligence in regards to competition, location, and demographics.
Generally speaking 80% of a car wash customer base will come from a 10
mile radius and usually the only 15-20% of customers was their cars at the
same car was every week. So as a starting point, one should look at a
location and see if the demographics can support a car wash operation
whether it's self service bays or full service car washes. In addition, it
is important to look for the most visible locations such as corner lots or
high traffic streets. As a rule of thumb, customers need to be exposed to
a sign for 40 seconds to become aware of a particular business in the
area.
To build a new car wash one should consider
the following:
- If you are new to the car wash industry, research
this business in general and choose the type of car wash that best suits
your lifestyle and financial goals. Do your due diligence and then re-do
it again!
- Develop a business plan for the type of car wash
you want to operate. This will help in case you need to seek a loan to
finance the building of the car wash. You can also consult with an
industry expert to make sure you have a viable business plan.
- Location will amount to probably 50% of the
success rate of a car wash. Choose high traffic locations to gain as
much exposure as possible to local traffic. Remember, 80% of customers
will be local and places that are near shopping centers, gas stations,
supermarkets, local business, etc. are ideal.
- Check the city for permits and operational
licenses. Find out what are the impact fees (in any) your city requires.
- Research and choose a reputable equipment vendor.
They usually can assist in building plans, contractors, permits, etc.
- Hire a lawyer to negotiate contracts and leases
for locations.
- Find out where to buy car wash supplies,
negotiate terms of payment.
- Choose staff experienced in the business. You
will gain from their experience, from the person washing cars to the
manager, industry experience is always an asset.
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