Do you want to start a car wash company and need to write a business plan? If YES, here is a sample car wash business plan template & feasibility report.
Okay, so we have considered all the requirements for starting a car wash business. We also took it further by analyzing and drafting a sample car wash marketing plan template backed up by actionable guerrilla marketing ideas for car wash businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a Car Wash Business?
- Car Wash Business Plan Executive Summary
- Our Services and Amenities
- Car Wash SWOT Analysis
- Car Wash MARKET ANALYSIS
- Our Target Market
- SALES AND MARKETING STRATEGY
- Sales Forecast
- Publicity and Advertising Strategy
- Our Startup Expenditure (Budget)
- Sustainability and Expansion Strategy
Why Start a Car Wash Business?
It is true there will always be the need for people to go out and make ends meet. This may however cause them not to have the luxury of time to attend to washing the cars (interior and exterior). This is why most car wash companies have positioned themselves in areas where they can get clients who have no time at all to see to the maintenance of their automobiles.
Starting a car wash business is one of the ways to hit good money really fast. This is because of the way people use them. However, care has got to be taken so that one sets up something quite unique and different form the conventional car wash centers.
This is because everybody gets attracted to something pretty unique. That is why anyone who is looking to start a car wash business must be ready to invest a lot in it, as well as promote the business to all and sundry with the right strategies. Here below is a sample car wash business plan that can readily help you deal with yours.
A Sample Car Wash Business Plan Template
- Industry Overview
In the united states of America and even all over the world, the car wash industry is regarded as one of the industries that accommodate more of unskilled workers than skilled workers. Simply put, some of the basic services offered by car wash companies revolve around cleaning, washing, and waxing services for automobiles (cars, trucks, vans, and trailers et al).
In the car wash industry, you will also find customized services such as full- and self-service car wash services, as well as truck and bus washes and vehicle detailing services. The industry is open to both small entrepreneurs (neighborhood car wash) and big time investors (Mr. Clean Car Wash owned by Procter & Gamble)
In the United States, the car wash industry is indeed a big industry, so much so that the annual revenue from the industry is in excess of 6 Billion US Dollars annually.
There are about 15,000 registered car wash companies scattered all over the United States of America and the industry is still in the position to accommodate more car wash businesses. The car wash industry is project to grow to about 7.7 Billion US Dollars in annual revenue by the year 2018.
The market for car wash is driven by the purchase of cars and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will buy cars and more people will patronize the services of car wash on a regular basis especially if their driving habits encourages them to do so.
The trend in the car wash industry is that most car wash companies in the bid to survive the recent global economic meltdown, have included additional services to their core service offerings. Some car wash companies include washing of rugs, selling of car accessories, running a bar, barbing saloon and even restaurant within the same premises if they have enough space.
It is much easier for car wash companies to increase their revenues by diversifying as against increasing the scope of their market. Over and above, car wash businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market (business, government and household et al).
Car Wash Business Plan Executive Summary
Spotless Car wash Company is car wash Company that will be located in the heart of Las Vegas less than 20 minute drive from McCarran International Airport in Las Vegas, and few minute drive from Mandalay Bay Event Center. We are strategically positioned in the world’s headquarter for casinos and games; a commercial center and we are set to services the whole of the community as well as visitors and travelers
Spotless Car wash Company will be providing our esteemed customers with three basic services and they are exterior car washing, interior cleaning, and waxing services. Although our intention of starting a car wash business is to offer only the above stated services, but we will not close our doors to diversification (additional services), as long as it does not affect our core services.
In the bid to maximize our position as the number one car wash company in Las Vegas, we will offer our esteem customers the opportunity to buy quality car care products in our reception area.
Our car wash company is located in a full-service car wash facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; and 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines.
Our customers will have the options of choosing from our different packages – we have the plans to serve both big customers and small customers as well which is why we designed various packages. Will offer car wash services that ranges from $7.00 to $15.00 per wash.
At Spotless Car wash Company we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own carwash business; we are in the industry to make a positive mark.
We are quite optimistic that our values and quality of service offering will help us drive our car wash business to enviable heights and also help us attract the numbers of clients that will make the business highly profitable. We are a company that will be dedicated to establishing and maintaining the best car wash business in the Las Vegas.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in the industry. No doubt our excellent customer service and the range of services we offer will position us to always welcome repeated customers.
Spotless Car wash Company is owned by Roy McQueen and Family. Roy McQueen is a notable figure in the automobile industry in Las Vegas. Aside from this new car wash business (Spotless Car wash Company), the family owns an automobile dealership business and also auto repair workshop all in Las Vegas.
Our Services and Amenities
Spotless Car wash Company is a complete car wash company that offers a wide range of services that revolves around car wash and other complementary services. We intend giving our customers every reason to always come back, which is why we have customized our services. Our customers will definitely maximize their time when they visit our car wash. These are the services and amenities that will be made available to our guests;
- Exterior car washing
- Interior cleaning
- Waxing services
- Vehicle detailing
- Sale of automobile accessories
- Self – Service
- Home service
- Washing of rugs
- Snooker board
- Cigar Lounge
- Barbing saloon
Our Mission and Vision Statement
- Our Vision is to become the number carwash company in Las Vegas, Nevada.
- Our mission is to develop a highly successful, profitable all round car wash business which provides quality services in our community and to become a standard for an ideal carwash business.
Our Business Structure
Car wash business generally is seen to be a small scale business venture, but that does not stop Spotless Carwash Company to put standard structures in place that will help us achieve all our business goals and objectives.
As a matter of fact, we have set out to build a car wash business that will be a standard for the car wash industry. We want to build a business of dedicated workforce who will go all the war to ensure that our customers are satisfied and they get value for their money.
In order to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot. The success of our car wash business will be anchored on the team not on any individual.
With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional carwash business. Definitely, we will have various employees to man the various services of Spotless Carwash Company. Spotless Carwash Company will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Accountant / Cashier
- Marketing Officer
- Car Washer men / women (5)
- Bar Manager
- Barber (3)
Roles and Responsibilities
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the hotel
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Handles procurement
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
Marketing Officer (2)
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information.
- Represents the company in strategic meetings
- Helps increase sales and growth for the company
- Manages the company’s CRM system
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Interacts with customers, takes orders for drinks, food and snacks.
- Plans and presents bar menu.
- Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
- Mixes ingredients to prepare cocktails and other drinks.
- Mixes drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes.
- Prepares alcohol or non-alcohol beverages.
- Services Wine and Beer to guests.
- Arranges bottles and glasses to make attractive displays.
- Assesses customers’ needs and preferences and make recommendations
- Makes lists of supplies in conjunction with the management
- Prepares inventory or purchase requisitions as needed to replenish supplies.
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
Accountant / Cashier:
- Collects payment for drinks served and balance all receipts.
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the manager
- Manages the barbing saloon
- Handles any other duty as assigned by the manager
Car Washer men / women / Cleaners (6):
- Washes and thoroughly clean cars (exterior car washing, interior cleaning, and waxing services), trucks and bikes et al
- Handles and moves objects, such as glasses, dish and bottles, using hands and arms.
- Cleans up after customers and clean work area.
- Clears ashtrays as and when required.
- Washes glassware and utensils after each use.
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the restaurant manager
Car Wash SWOT Analysis
Car wash business is one of the businesses that can easily generate sales with little stress, as long as they are well positioned. We are building a standard car wash business with variety of services which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal car wash business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the nature of carwash business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Mr. Coleman Carrington, an HR and Business consultant to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a preview of the result we got from the SWOT analysis that was conducted on behalf of Spotless Car wash Company Las Vegas, Nevada;
Spotless Car wash is centrally located in a densely populated area in Las Vegas; our location is in fact one of our major strength. We are also a car wash company that offers variety of services. For instance, if a client visits our cash wash to wash his car, he has the options of barbing his hair within our facility, he also has the option of patronizing our bar and our mini mart where he can buy car accessories et al.
Spotless Carwash is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business.
We are centrally located in one of the busiest area in Las Vegas and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the car wash industry. The truth is that there are no car wash facilities within the area where our car wash is going to be located; the closest car wash facility to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Spotless Car wash Company is unfavorable government policies, seasonal fluctuations, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where our car wash is located.
Car Wash MARKET ANALYSIS
- Market Trends
The car washmarket is a market that is solely dependent on loads of factors; at least for people to patronize car wash, they must first of all own a car. From the recent statistics or car purchase in our target market, it is obvious that there is steady increase which indeed is a positive for the carwash market.
Car wash business responds to the increase in household spending and also increase in the volume of cars in a particular area or city. The trend of the market can be predicted without stress. Another obvious trend in the car wash industry is that most car wash companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
Some car wash companies includes washing of rugs, selling of car accessories, running a bar, barbing saloon and even restaurant within the same premises if they have enough space. It is much easier for car wash companies to increase their revenues by diversifying as against increasing the scope of their market.
Our Target Market
Before choosing a location for our carwash business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically those who will benefit from our service offering are car owners and they cut across various different sectors of the economy.
Our target customers can be classified into three major groups (household, business owner / corporate clients and government). We are set to market our services in our neighborhood, talk to haulage companies, car dealership shops, taxi and car rental companies’ et al. These are the category of people that we intend marketing our hotel to;
- Corporate Executives
- Business People
- Car Dealership Shops
- Taxi and car rental company
- Transport Companies
- Haulage Companies
Car wash business is an easy to set up business that does not require formal training to achieve; anybody can set a car wash business if they have the required startup capital. It means that the possibility of car wash businesses springing up in the location where our car wash company is located in high. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Las Vegas.
Our competitive edge is that we are a standard car wash business that has loads of complimentary business offerings that can easily assist us in attracting car owners (customers) within the radius of our car wash business. We can confidently say that the location of our carwash will definitely count as a positive for us amongst any competitor that might start a car wash business in same location where ours is located.
For the time being, Spotless Carwash Company has no real competitors that can match and compete with the quality of services we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.
SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Spotless Carwash Company is going to be driven basically by excellent customers service and quality service delivery. This is why we invested time to create our killer car wash marketing plan. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car wash et al.
We are a carwash business that is strategically located and we are going to maximize the opportunities that are available, which is why we spend more to locate the business in a location that will be visible and accessible to car owners in our area of business.
We will adopt the following means to attract the kind of people that we want in our hotel per – time. Our unique selling proposition is that we have various complementary service offerings such as barbing saloon, bar, cigar lounge and sale of car accessories which will endear our customers to us.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales and loyalty from them. Part of the marketing and sales strategies that we will adopt is;
- Open our car wash business with a party.
- Advertise our carwash business on national dailies, local TV stations and local radio station
- Promote our business online via our official website and all available social media platforms
- Continuously Improve the performance of our brands
- Hire the services of experts to make our brands the first choice for car owners in Las Vegas
- Deliver consistent customer experiences to all our guest; making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our bar
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our carwash business.
Sources of Income
Spotless Car wash Company will generate income from the following service offerings;
- Exterior car washing
- Interior cleaning
- Waxing services
- Vehicle detailing
- Sale of automobile accessories
- Self – Service
- Home service
- Washing of rugs
- Snooker board
- Cigar Lounge
- Barbing saloon
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. We expect to wash 70,000 cars in the full-service operation and 30,000 cars in the self-service operation during our first year of operation.
We will definitely attract clients that will patronize our bar, cigar lounge, mini mart, was their rugs et al meaning that we will generate additional income from these sources. Below is the sales projection for Spotless Carwash, it is based on the location of our car wash and the services and products that we will be offering;
- First Year-: $75,000
- Second Year-: $105,000
- Third Year-: $160,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any carwash company offering same additional services within 4.5 miles radius from our carwash.
- Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products will be same as what is obtainable in the open market. On the average, our car wash services will cost between $7.00 per wash to $12.00 per wash.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
Publicity and Advertising Strategy
Spotless Carwash Company is set to create a standard for car wash business in Las Vegas and through the United States which is why we will go all the way to adopt best practices to promote our business. Good enough there is not hard and fast rule on how to advertise or promote a car wash money.
The challenge is that most car wash companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car was business. Here are the platforms we intend leveraging on to promote and advertise Sean and Sharon Hotel, Las Vegas;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our car wash business in automobile magazines, local newspaper, local TV stations and local radio station
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Direct coupon mailing approach
- Engage in roadshow from time to time
- Distribute our fliers and handbills in target areas
Our Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital on;
- The Total Fee for Registering the Business in Las Vegas, Nevada: $750.
- Legal expenses for obtaining licenses and permits: $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the car wash: $70,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000)
- Phone and utility deposits ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $7,500
- Cost for serving area equipment ( glasses, flatware) – $5,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment (vacuum cleaner et al)- $3,600
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, clippers, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our grand opening party: $1,500
- Miscellaneous: $2,000
We would need an estimate of $1.2 million to successfully launch our all-round car wash business in Las Vegas Nevada. Please note that the startup cost is higher than the average startup cost for a carwash business simply because we intend starting a small bar, barbing saloon and mini mart.
Generating Funding / Startup Capital for Our Car Wash
Spotless Carwash Company is a family business and it will be financed by the owner who is also the car wash manager. These are the areas where we intend sourcing for fund for Spotless Carwash Company;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from family members and friends (soft loans)
- Generate a larger chunk of the startup capital from the bank.
Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Spotless Carwash Company is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Spotless Car wash Company adopts the use of payment machine and accounting software to run the business.
We are quite aware that our customers are a key component to the growth and survival of our business, hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our product and service offerings once the need arises.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed car wash equipment, electronic appliances, office appliances and bar accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed carwash accessories, drinks, and tobacco et al: In Progress