The car wash industry is one of the fastest-growing industries in America today. With an average annual growth rate of 15%, the market is expected to grow to $9 billion by 2025.
Car washes can be started anywhere, including your own home garage, driveway, or parking lot. However, the best location is right next door to where people live.
People spend between 10% and 20% of their income on gas so they are likely to stop by a nearby car wash if they smell something bad. A car wash is also a good place to meet new customers.
Because most people rely heavily on their vehicles for transportation purposes, they often struggle with maintaining these vehicles. And there lies the potential business opportunity.
A car wash business plan guide for beginners
Here are the ten most important steps to take when launching a profitable auto detailing service:
1. Get Trained
If you’re serious about entering the car washing industry, then you need to get some proper training first. You need to learn new skills for cleaning cars and vehicle surfaces.
Get yourself enrolled at a nearby college or vocational school. The courses usually cover the use of chemicals, cleaning processes, business operations, etc. The duration of the classes varies from one month to three years.
2. Gather Experience
Working for an established auto detailing service will provide you with practical knowledge and experience in working with clients. You’ll get to understand their needs better and gain valuable insights into how they think.
3. Research the Market
Before starting any type of service, knowing the local market is an important first move. You need to know everything there is to know about the market before launching your own car wash.
Name your car wash business something catchy.
Choosing an appropriate name for your business is extremely important in the long run. You want to choose a name that customers can easily remember and associate with your business. Read this guide to learn how to name a business properly.
6. Write down your business plan
Start collecting data about your target market. You should know where they live, how much money they make, what kind of cars they drive, whether they’re married or single, and any other relevant facts that can help you tailor your message to them.
Once you’ve got your list together, write down everything you can think of that might appeal to them. For example, if you sell clothes, you could include coupons for discounts on clothing stores, sales ads, or special events.
6. Incorporate Your Business
Incorporate your business if you want to avoid any hassles. Each state and each county offer different kinds of legal forms. Choose one which fits your needs.
For most Americans, setting up a limited liability company (LLC) is a good choice for protecting their personal assets.
Once you start doing business, apply for a bank account for future financial transactions.
7. Licenses & Permits
You may need to check with the local authorities to determine whether you need any licenses or permits before starting a business. Many jurisdictions require a business license, an operation permit, or some type of tax registration.
It is important to note that the U.S Bureau of Labor Statistics includes this type of cleaning service under the “cleaners of vehicles and equipment” category. Make sure you negotiate with your cleaners before buying any kind of insurance.
8. Procure Equipment
If you’re looking to start a business from scratch, you’ll probably want to rent out space in a garage. However, if you already own one, you could use it to offer vehicle washing services.
You’ll need to buy some larger tickets (i.e., the car wash) plus a few additional big-name products (i.e., shampoo).
A good vacuum cleaner with a long hose.
Attaching accessories to your vacuum cleaner. Here’s where you can get the best deal.
As for the basic equipment, you’ll want to include sponges, brushes and cloths, buckets and vacuums, and polishes and sealers.
You will also need electricity and running water. As your company grows, you might want to invest in a portable power source and a large-capacity water supply.
9. Bookkeeping
Bookkeeping for a small business is simply recording daily transactions. Choosing proper accounting software is crucial in setting up a proper record keeping procedure.
10. Promote Your Business
A car wash business owner’s promotional strategy should be locally focused. You must not market your service outside your operational area. Create advertisements and place these in local media outlets, including small papers, community magazines, and local TV and radio channels. Purchase ad space in local telephone directories and coupon booklets.
Partnerships with companies that aren’t operating in your niche in the local auto-repair industry can help increase your customer base. You also need to set up a basic website for your service. Post frequently about topics relevant to your car-washing services on social media sites.
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