There will always be a need for car wash businesses. However, there are some potential pros and cons to consider before deciding to launch your own release.
As long as there are cars on the road, there will be a need for car wash businesses. However, there are some potential pros and cons to consider before deciding to launch your own car wash business.
Advantages and disadvantages of investing in a car wash business
Depending on factors like location and weather, a car wash can be a lucrative business for a budding entrepreneur.
Potential business
A car wash can be a good deal for an entrepreneur with little business experience. According to the International Carwash Association, 37 percent of car wash owners have been in business for less than five years. Profits can average around $ 41,000 a year for a self-service wash to more than $ 680,000 for a full-service business.
Types of car wash
Types of car washes include a full service wash, which includes an exterior cleaning and an interior vacuum performed by a team of workers. The automatic tipping wash It is where the vehicle owner stays in the car as it is pulled through a conveyor belt system. A self-service car wash It is where vehicle owners wash their own cars in a bay with the use of a wand. A mobile car wash It is where the business owner travels in a specially equipped vehicle to the location of the car.
What are the benefits?
As the number of cars on the road continues to increase, the need for car wash businesses should also increase, according to the International Carwash Association website. A car wash can also be a good deal for someone who enjoys working with their hands and enjoys working with the public.
What are the downsides?
The potential downsides of owning a car wash include that depending on your geographic area, the business may be seasonal. If you operate a full service car wash, you will need to hire and manage a staff of employees. You will also have to deal with customers who are dissatisfied with the finished product. If you are not mechanically inclined, you will need to hire a maintenance worker to tend to the machinery, which can break during busy periods.
Some considerations
Other factors to consider include your ability to manage your cash flow. A string of bad weather can put a damper on your business, so you need to manage your money wisely. The business typically requires long hours and physical labor, so a high level of energy is also required.
How much money do you need for a car wash business?
Although a car wash can be a lucrative business, it is a business that requires careful research, a lot of upfront work, and a large investment.
Although a car wash can be a lucrative business making up to $ 900,000, it is a business that requires careful research, a lot of upfront work, and a large investment. This investment depends on the type and size of car wash you decide to build and whether or not you already own the property lot. Building a car wash can take about six months to complete, so you need money for administrative and other business expenses for as long as you are working but not making any income.
Find a location
If you don’t already have a car wash location, you need to buy an empty lot, as this will save you the extra expense of tearing down any built construction. The cost of this lot will vary depending on the size and its location. Preferably, you want to find something on a busy street near a department store, strip mall and several residential neighborhoods. Because real estate in high-traffic areas is more expensive, expect this type of property to be more expensive than in other areas, but also more profitable. Although this cost varies significantly from one location to another and from one state to another.
Construction cost
The cost of a car wash is also influenced by the size and type of construction. The average construction is approximately 1,700 square feet. Although cost is a factor in deciding the size of your building, a more important consideration should be its potential growth. It is best to start with a construction facility larger than your needs, as this gives you room to grow or expand to other areas within the car wash industry. To get a better idea of construction cost, consider using pre-fab car wash construction builders, or consult local architects with experience in car wash construction for a construction estimate. Underbuilding your car wash results in a longer time for you to recoup your initial investment and opens up an opportunity for a competitor to take their customers by building a larger, more enjoyable facility.
Find your team
To plan your budget as accurately as possible, consider equipment costs. The cost of this equipment varies depending on the brand, the type of equipment, and whether you are building an automatic or self-service car wash. The best way to assess the cost of equipment is to contact several local equipment dealers and compare prices for the equipment you want. Contact dealers through websites like Car Wash Network. Also look in trade magazines such as “Auto Laundry News” or “Professional Distributor” for equipment options and dealer options.
Cost calculation
A car wash involves the cost of the lot, equipment, and building construction. You can expect to invest approximately $ 42,000 per bay to build automatic units.
References (5)
- Tommy Car Wash: 5 Things You’ll Need Before Starting a Car Wash Business
- Starting a Biz. com: Starting a car wash business
- Car Wash Loans: A Guide to the Car Wash Construction Process
- Car wash portal: Car wash franchises, Business | Start a car wash
- Pelco Systems: Investor’s Guide to Car Wash
Resources (4)
- Magazine. com: Auto Laundry News
- Car wash dealers: Car wash dealers
- Car wash network: Car wash dealers
- AOK Equipment: Car Wash Equipment