If you are thinking of starting your own car wash business, then there are several factors that you need to consider before you plunge into this venture. You need to first decide what kind of car wash business you want. You can go in for self-service, automatic, hand wash, mobile or a combination of either of this. Before you start your business, you must carefully analyze and research out about your business regarding profitability, economic viability and return on investment. For instance, in the case of hand wash and mobile car detailing services, the initial upfront investment is small but the ongoing labor charges are high. Less labor is required by self-service and automatic car wash services but the upfront machinery and the real estate costs will be higher in such cases.
Checklist While Starting Your Car Wash Business
- Conduct Research: You need to carry out a thorough research of your local market so that you can understand the feasibility of a lucrative car wash business and what type of services can be offered through your business. Your research should include area demographics, climatic conditions, competition and various other factors. If you cannot perform the research by your own, you can take the help of a market research firm.
- Purchasing Car wash equipment: You should make contacts with the distributors of car wash equipment, and can request them on the pricing and specifications of the various equipments. You can also get meaningful information from your distributor regarding the tips on how to start a car wash business.
- Car Wash Business Plan: You need to certainly have a car wash business plan which will include all the relevant details regarding your market research and equipment choices. The plan should also cover all aspects of your business. You certainly need to have a good business plan especially while applying for loans and you may have to seek the expertise of a business consultant for creating an accurate business plan.
- Creating Business Structure: A suitable business structure is extremely important for a car wash business. You can choose to operate as a corporation, sole proprietor, partnership or a limited liability company.
- Identifying the Work Space Area: You need to identify the right space which will be apt for your car wash business.
- Legal Procedures: You need to complete all the legal procedures that are required for setting up your business. This includes local business permits, zoning variances, environmental and safety inspections, etc.
- Purchasing equipment and business liability insurance: You should create your business space by buying the right equipment. Your local insurance agent will be able to help you with the business liability insurance which is also utmost important for your business.
Starting your own car wash business is not a very tedious process, but the right information and decisions will make a big difference in making your venture a successful one.