If you are going to open a car wash, first of all you need to analyze the market, plan the work of the future business and calculate the necessary financial investments.
We offer you a brief car wash business plan with calculations, calculated, as of 2017, for starting investment $36,900.
The goal of the project: opening a manual contactless car wash for two posts.
Consumer audience: the main customers will be the middle class and private entrepreneurs.
Working hours: from 8:00 to 23:00 seven days a week.
Required investment: $36,900.
Monthly net income: from $1,150 to $8,000.
Payback: 8 to 10 months.
Targets and goals
The goal of the project is to create a modern manual car wash that provides customers with quality and affordable services. The company will provide its founders and staff with a stable income. Through direct cooperation with suppliers, as well as the effective use of the latest equipment, the company will be able to provide services at affordable and competitive prices. Due to the high service and quality of services in the medium term, the company will form a base of permanent loyal customers.
Service
Providing car owners with comprehensive cleaning services:
- Contactless car body, wheel and underbody washing,
- polishing,
- engine wash,
- Interior and trunk cleaning.
Market analysis
The constant increase in the number of cars on the roads indicates an increase in demand for car washes. There are automatic portal and tunnel type car washes on the market, as well as manual ones. The services of manual touchless car washes are in the highest demand, especially in 2017.
There is a rather strong seasonal factor in this business. In summer and winter, demand for services is low, while in spring and autumn it is high.
During periods of maximum demand, there are queues in front of car washes. This suggests that the competition is not very high and the market is not yet fully saturated.
Marketing plan
The car wash will be located in a residential area near the service station and parking lot, which will help attract a steady flow of customers.
To increase the number of customers and increase loyalty, the following promotions are planned:
- Sale of subscriptions for 10, 20 and 50 washes,
- Every tenth wash for 50% of the cost,
- Comprehensive service at a discount.
Production plan
To organize the work of the enterprise, you will need to issue a package of documents:
- Certificate of registration of an individual entrepreneur or LLC, on registration with the tax office,
- Agreed and approved car wash project,
- Lease agreement for land and premises,
- Contract for connection to electric networks,
- Contract for the purchase of water or for connection to water networks,
- Contract for the disposal of used water, municipal solid waste, dry residue from the activities of a car wash.
To minimize the initial investment, the premises and land for organizing a car wash will be leased. The total area of the premises is 80 square meters. meters. The premises will be re-equipped: repairs have been made, water and drains have been connected.
All equipment, auto chemicals and consumables will be purchased from the official regional dealer of the manufacturer.
Staff
The car wash will require 4 people working in two shifts, as well as a cashier-accountant. Monthly salary expenses will be $4,200.
Required Resources
As mentioned earlier, opening a car wash will require an investment of at least $36,900. The source of financing will be the investments of personal funds of the founders of the enterprise. It is not planned to attract credit funds at the initial stage. The land plot and premises will be leased for 10 years.
Financial plan and risk analysis
The initial investment for opening a car wash is $36,900:
- One-time investment $28 900
- Expenses for the first month of work $ 8,000
The car wash will be open seven days a week, seven days a week, from 8:00 to 23:00.
The average check at the car wash is $10.
Accordingly, the estimated revenue for the month of work is 1,320 * 10 = $ 13,200.
Profit before taxes will be 13,200-8,000=$5,200.
The average net income after taxes is about $4,550.
The number of cars will fluctuate depending on the season and the figures may deviate from the average by 30%. Monthly net profit - from $1,150 to $8,000.
Return on investment - from 8 to 10 months.
| Risks | Grade | Characteristics and solutions |
|---|---|---|
| Poor car wash location | High | A detailed analysis of the terrain, traffic flows and nearby competitors will help you avoid the wrong choice of location. |
| Problems with regulatory authorities | Medium | To minimize possible problems with government services, the company will cooperate and draw up all permits with the help of a professional law firm. |
| Equipment breakdown | Medium | All equipment will have a warranty period and undergo periodic technical control. In the event of a breakdown, all equipment will be repaired at the manufacturer's service center. |
| Shortage of qualified personnel | Low | Competitive salaries will be offered to attract experienced professionals. Car washers without experience will be trained. |
Conclusion
We hope that this car wash business plan, with our calculations relevant for 2017, was useful to you and was able to answer key questions.
Despite all the difficulties associated with the organization and execution of permits, this business is attractive for its high profitability and quick return on investment.
