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How to Do SWOT Analysis for a Car Wash Business

Are you about writing a car wash business plan? If YES, here is a sample SWOT analysis for a car wash company to help you form a competitive strategy.

There are many reasons why you should consider conducting a SWOT and Risk Analysis for a car wash business prior to opening the business, as well as frequently during the lifetime of the business. In fact, it should be enshrined in your business plan.

It will most definitely ensure you have a comprehensive grasp of the monetary, human, and material resources you require to flourish in this competitive industry. However, it is essential to reiterate that success isn’t guaranteed in this line of business.

There are risks associated with each step. You will also have to understand that a good number of new businesses fail within the first 10 years. According to reports, 20% of small businesses in the United States crumble in the first year, 50% within five years, and only 33% make it to 10 years or longer.

To ensure you can attain success, carry out a SWOT and Risk Analysis. This will ensure that you have a comprehensive view of your business environment. It will as well get you prepared to surmount any possible obstacles that your business might possibly encounter and also explicitly define your goals and objectives.

Steps to Conduct a Car Wash SWOT Analysis

This is a very important part of planning a successful business; nevertheless, you have to do it right to be able to reap its astonishing benefits. Below are steps to guide you through the process.

  1. Understand your objectives

There are numerous reasons why you should carry out a SWOT and Risk Analysis. For a new car wash, you might be eager to understand your potential market and how best to position your business.

For an already existing business, you might be looking to understand your competition and how your customers feel regarding your business. Nevertheless, regardless of your objectives and intentions, it is important you collect all the data you need to ensure you have the right information.

The things you need to collect include customer feedback, financial data, as well as industry reports. Don’t forget to seek insights from your workers, leadership, as well as key stakeholders.

  1. Conduct a SWOT analysis

Once you understand your objectives and have all the requisite information, it is now time to conduct the SWOT analysis.

  • Strengths

Take your time to analyze what you feel are the strengths of your car wash business. This might be your business location, the level of service you offer to patrons, your pricing structure, or a devoted clientele. Ensure to extensively evaluate your car wash strengths using your business’s performance and the upper hand you have over other businesses in your area.

  • Weaknesses

This is where you analyze the weaknesses or limitations of your car wash business. Most often, this will include obsolete equipment, inadequate space, or not enough workers. Also, analyze how all these impact your business revenue and position in the industry.

  • Opportunities

Also analyze the opportunities available to your car wash business both in your immediate location as well as other open markets where you can expand to. Ensure to take into consideration industry trends, possible alliances, innovative service offerings, or marketing strategies.

  • Threats

This will encompass the possible threats that have the propensity to disrupt your business and revenue. Most often, this will be similar businesses in your location, economic downturns, changes in industry regulations, or client interests.

  1. Conduct a risk analysis

There are certain risks to avoid if you hope to be successful in this line of business — and risk analysis can provide you with insights regarding where you’re most at risk and also ensure that you can take preventive actions. Understanding these risks and avoiding them will ensure that your business will reach its full potential.

Truth be told there are numerous risks associated with starting and operating a car wash. Although a good amount of them are rare, knowing more about these concerns will most definitely help you make your car wash safer. The most common car wash risks and safety concerns include:

  • Electrical hazards
  • Chemical hazards
  • Conveyer belt malfunctions
  • Brush malfunctions
  • Water pressure malfunctions
  • Slips and falls
  • Car accidents
  1. Make a Risk Management Plan

Developing a risk management plan is very important after you must have identified the possible risks that could impact your business. This plan consists of four parts.

You’ll have to start by listing out your potential risks and afterward rate every one of them based on their impact and likelihood. The second part involves assessing your current risk management abilities and designing strategies to augment them.

While putting together this plan, it is essential you take into consideration how you are presently managing risk, with priority given to safety concerns you’re not currently handling appropriately. Once you have realized your risk management needs, you can start putting together a plan for limiting them.

A Sample 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 of the result we got from the SWOT analysis that was conducted on behalf of Spotless Car wash Company Las Vegas, Nevada;

Economic Analysis

Technological advancement on products and equipment has made a huge impact on the car wash industry over the past decade. This has been a great improvement for the industry and has seen businesses getting quick return on investments.

Household customers account for about 76 percent of those who used the services in the car wash industry. These household customers are usually between the ages of 16 and above and own a car and a valid driver’s license. Those with high income represent those that have the highest demand for car washing services.

Employment of workers into the car wash industry is likely to increase by 19 percent between 2010 and 2023. However, this number will not remain stable especially as more car washes are favoring automatic conveyors to full service car washes, an action which is likely to cause a decline in the employment of workers.

1. Strength

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.

2. Weakness

Spotless Car Wash 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.

3. Opportunities

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.

4. Threat

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 carwash is located.


There are many reasons why you should consider conducting a SWOT and Risk Analysis for a car wash business. Have it in mind that this will ensure you have a comprehensive view of your business environments. Nevertheless, understanding your abilities and the possible risks your business will encounter will definitely ensure your business is not negatively impacted by unforeseen problems.