How to start a car wash business? There is a lot to consider. However, with research, planning, and our expert advice, you can make the dream happen. There are a couple of important points to address straight away.
First, is a car wash business the right fit for you? Second, can you afford to open one? Having a firm grasp on the financial side of things is essential. As you learn more about how to start a car wash business, your decision making becomes easier.
You can get off to a strong start. CLICK HERE to download: How Much Does It Cost to Start a Mobile Car Wash. Our comprehensive guide covers everything from startup costs to business financing. Additionally, you will learn more about running a lucrative mobile car wash and how we use eco green methods that save water and help protect the environment.
So, if you are seriously thinking about how to start a car wash business, the following 3 areas need your careful consideration and attention.
How to Start a Car Wash Business: Assess Your Options
According to recent research and analysis, the US car wash services market is expected to reach $23.78 billion by 2030, expanding at a CAGR of 5.5%. So, you will be entering a booming market. But you need to know precisely what it will take to get your business up and running successfully.
Buying an Existing Car Wash
You could buy a car wash today if you wanted, providing you had the means. For example, search online for car wash businesses for sale. The results will produce listings of different businesses from express car washes to an auto detailing and hand car wash. However, due diligence is essential. And the asking price can vary from $275,000 to $1.5 million or even more.
So, ensure all income and expense information is well documented and verified before going down this route. And find out about permits, licenses, growth potential, and the owner’s reason for selling.
Building from Scratch
You can build a car wash business from scratch. This gives you the freedom to do things your way. For example, you can open a mobile car wash or build your business at a fixed location. Regardless of what type of car wash you choose, you need a future-proof car wash business plan that capitalizes on industry trends to attract funding from investors.
Bear in mind, although you have more control over your decision making, learning how to start a car wash business on your own can be tough. You need to come up with a name and a logo. Then you must know the best tools and equipment to buy. On top of that, you are also responsible for recruitment, marketing, brand building, and so on. There are easier ways to go about it. See below.
Joining a Franchise System
The easiest way to start your own car wash is to join a franchise system. This means that a company licenses you the use of its brand and car wash processes. This guarantees you support at the startup stage. Additionally, you will have their ongoing guidance and training to help you build a thriving business. Unlike other options, you don’t have to do everything on your own. Furthermore, it can be a much more affordable way to open a car wash. For example, read our post: how much does it cost to start a mobile car wash.
If you want to diversify your business portfolio and acquire another business, our car wash franchise is an excellent opportunity for ambitious business owners. DetailXPerts has been franchising since 2008. Our mobile units use water-saving steam technology to set it apart from the competition.
How to Start a Car Wash Business: Avoid These Common Mistakes
Learning how to start a car wash business is not without its challenges and difficulties. However, you can overcome startup problems by avoiding these mistakes.
Inadequate Financial Planning
Poor budgeting is a common mistake made by entrepreneurs. If you do not have a financial planning checklist in place, you immediately put your business at risk. You must know how much money you will need throughout your startup journey. Additionally, you must plan and prepare for financing requirements further down the line when you need more money for business growth, equipment upgrades, marketing etc.
Not Enough Market Research
Passion and enthusiasm drive entrepreneurs. However, you won’t get far if you attempt to open a car wash without conducting thorough target market research. You must know everything about your customers and what they want. Also, you should identify your competitors, and find out what sets you apart from them.
However, if you decide to be a franchisee with a reputable brand, they can share their knowledge and expertise with you. You will be better informed and more likely to succeed. For example, DetailXPerts has a loyal target market of eco-conscious customers who want an eco-friendly car wash. And our green business has a unique selling proposition (USP). We can clean a car with just 1 pint of water.
Lack of Promotional Planning and Marketing
Knowing how to start a car wash involves thinking beyond opening your doors for the first time. Don’t make the mistake of thinking the customer will find you by chance. You need to be active on social media and in your local community. Offer introductory discounts and special offers. Also, plan to promote your business throughout the year to retain your customers and attract new ones. This action will ensure your profits don’t fall away.
Not Nurturing Relationships with Customers and Employees
From the moment you open your car wash, you must start building relationships with your customers and employees. It is a mistake to think that people will become loyal customers or dedicated employees without making them feel valued or special. Instead, nurture relationships through great communication and positive leadership skills.
Opening a Car Wash Business: Plan and Organize Every Detail
Leave nothing to chance if you want to know how to start a car wash business successfully. With so much competition, you need to know what you are doing. And how to do it better than everyone else! Plan and organize the following:
Decide on the Type of Car Wash
How to start a car wash depends on the type of car wash you want open. Another factor is ambitious you are. For example, are you interested in a hand car wash or an automatic car wash at a fixed location? You need to research your local area to find out what kind of service is in demand. Some of your choices include:
To ensure long-term success for your car wash, think of trends, opportunities, and growth factors. For example, DetailXPerts sees steam cleaning as the future of car washing.
Startup Costs and Financing
Once you know what kind of car wash you want to open, you will have a clearer idea of how much money you need to make it happen. Raising capital for your car wash can seem like a daunting task. However, there are different ways to secure financing, providing you have a solid business plan in place. You can go to your bank and ask for a loan. Or explore the following options:
- Rollover for business startups (ROBS)
- US Small Business Administration (SBA) funding programs
- Independent professional finance services
Also, be sure to check out our hard-to-beat franchise investment. DetailXPerts is transparent about our franchise cost. Furthermore, are you clear about how you can get a return on your investment? For example, our mobile cleaning business opens up 3 lines of business. You can run a mobile car wash, a fleet wash, and janitorial/sanitization services.
Choose a Great Location
If you want to open a car wash at a fixed location, you must choose a high-traffic area with high visibility and good accessibility for your customers. Furthermore, being close to other businesses, such as a store, mall, gas station, or quick service restaurant, can help attract more customers to your car wash. The critical point to remember is people like ease and convenience.
However, desirable locations with high-traffic volume are expensive. You can get around this problem by offering mobile detailing services. For example, DetailXPerts has built a successful business around mobile cleaning. The ultimate convenience for our customers. We go to them! Moreover, our mobile units excel at vehicle care thanks to our water-saving steam technology.
Pay Close Attention to Your Business Plan
Figuring out how to start a car wash business revolves around your well-crafted business plan. It is an important tool for any new business. Not only does it provide a roadmap for your future, but it can also help you secure financing from lenders.
In addition, your business plan is also a guide that outlines your key objectives and strategies. Sticking to your plan will help you open a business successfully. See also how a franchise business plan can help accelerate your startup efforts.
Organize Your Marketing Strategies from Day One
Use the data from your market research to create an effective marketing plan to launch your car wash business. See our car wash marketing guide if you need help in this area. We have packed the guide with helpful tips and advice to maximize your success in the marketplace. You might also find the following useful:
- Marketing collateral checklist
- Marketing Ideas on Connecting with Customers
- Using Facebook for Business
Again, marketing becomes easier with the support of a franchisor. For example, DetailXPerts provides franchisees with ongoing support. We can help with our tried-and-tested strategies that teach you how to promote your business and reach more customers.
Sort Out Permits and Licenses
How to start a car wash without a hitch includes having all the necessary permits and licenses. Note that laws and regulations vary between cities and states, so research local government laws. Go through our business license checklist to ensure your paperwork is correct. Additionally, check environmental or wastewater discharge permits.
Choose your Car Wash Services and Prices
Before you open your doors for business, organize your list of car wash services. What you can offer your customers depends on your tools, equipment, and the size of your team.
DetailXPerts has a list of professional detailing services ranging from auto detailing to commercial cleaning services. However, we have a large, trained workforce with the capabilities to handle large workloads. If you are starting a car wash business, only take on work that you can complete to the highest standard. Then focus on growing your business.
Finally, work out the pricing strategies for your car wash business. Pay special attention to your customer and what type of service you offer. For example, if you are using the latest green tech to wash cars, your price will reflect the high quality and value of this service.
Finding out how to start a car wash business could be the start of something big. The growing car wash market makes it an exciting and lucrative venture for entrepreneurs. But you need to be focused and organized to ensure your success. Start by researching the market to find out what type of car wash aligns with your goals and ambitions. Then get your business plan in place and take it from there. Equally important, make sure your finances are in shape.
Don’t forget to CLICK HERE to download: How Much Does It Cost to Start a Mobile Car Wash. This practical guide highlights everything you need to know about financing your startup. If you want to franchise with us, we offer training programs that take you through how to start a car wash in straightforward steps.
DetailXPerts is a niche mobile cleaning franchise. Our difference is future-proof green technology. Science-backed steam methods and biodegradable products enable us to clean and sanitize on demand. And we have a first-class training and support system to help our franchisees succeed. Contact us if you want to learn how to dominate 3 lucrative markets. And be sure to check back for our next article. Our team loves sharing industry news and advice. We write about franchising, green business, management, marketing, and more. The future of car washing is here!