Do you want to start a truck wash business and need to write a plan? If YES, here is a sample truck wash business plan template & feasibility report. If you want to carve a niche in the car wash and auto detailing industry, then you should look towards starting a truck wash business and then go ahead to start selling franchise. But when starting a truck wash business with the intention of selling franchise, you need significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.
Just like any other business, the demand for truck wash services usually decline during periods of economic downturn due to owner truck operators not spending on services they can do for themselves and reduced demand from business clients (trucking companies, logistics and shipping companies et al).
If you are interested in starting a truck wash business with the aim of selling franchise in future, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it.
Aside from a detailed feasibility studies and market survey, one of the important documents that will aid the success of the business is a good and workable business plan. Below is a sample truck wash franchise business plan template that can help you write your own with little or no stress.
A Sample Truck Wash Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Truck wash business is part of the car wash and auto detailing industry and operators in this industry clean, wash and wax automotive vehicles, such as passenger cars, trucks, vans and trailers. This industry also includes self-service car wash establishments. Please note that the Car Wash and Auto Detailing industry does not include companies that predominantly change motor oil or provide automotive repair and maintenance services.
In the united states of America and even all over the world, the car wash and auto detailing industry of which truck wash business is a subset of is regarded as one of the industries that accommodates more of unskilled workers than skilled workers because some of the basic services offered by auto mobile detailing companies revolves around cleaning, washing, and waxing services.
Statistics has it that in the United States of America alone, there are about 66,708 licensed and registered car wash and detailing services businesses (strictly truck wash businesses inclusive) responsible for employing about 224,874 employees and the industry rakes in a whooping sum of $12 billion annually with an annual growth rate projected at 4.0 percent between 2014 and 2019.
A recent report published by IBISWorld shows that the Car Wash and Auto Detailing industry has experienced strong growth over the five years to 2019, as the economy continued to grow and industry operators reaped the benefits of rising employment and per capita disposable income.
Severe drops in oil prices during the early half of the period have also encouraged more consumers to hit the road, as lower gas prices translated to a greater number of cars used. As a result, consumers were more likely to purchase discretionary services, such as car wash and auto detailing.
Over the five years to 2019, revenue is anticipated to grow at an annualized rate of 4.0 percent to $12.3 billion, including an anticipated 2.9 percent increase in 2019 alone. Broader economic landscape has boded well with industry growth.
Truck wash businesses and franchise 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 (corporate organizations with fleet of trucks, transport companies and haulage companies et al).
2. Executive Summary
Charles Holmes® Truck Wash Services, Inc. is a standard truck wash services and franchising company. The company will be located in Grand Forks, North Dakota – United States of America and we have plans to also cover other cities such as Bismarck, Fargo and Minot et al.
We chose to operate in these cities because we know that our truck wash services and franchise will be in high demand due to the growing number of automobile owners in these cities.
Charles Holmes® Truck Wash Services, Inc. is located in a full-service truck 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.
We will offer truck wash services and franchise that involves thorough cleaning, restoration, and finishing of trucks and trailers, both inside and out, to produce a pristine level of detail. It involves cleaning and restoring or exceeding the original condition of the surface of the car’s finish, chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a truck and trailer.
We are well trained and equipped to service the market segments that require truck wash services. Although our intention of starting a Charles Holmes® Truck Wash Services, Inc. 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.
Our customers will have the option of choosing from our different packages – we have the plans to serve both individual clients (owner truck operators) and corporate clients (trucking and transport companies, haulage companies and the government) as well which is why we designed various packages.
We are quite optimistic that our values and quality of service offering will help us drive our truck wash services and franchising business to enviable heights and also help us attract the number of clients that will make the business highly profitable.
We are a company that will be dedicated to establishing good business relationship with our clients (franchisees inclusive) giving them value for their money and reasons for them to hire our services over and over again. Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. Charles Holmes® Truck Wash Services, Inc. is owned and managed by Charles Holmes and his immediate family members.
He is a notable figure in the automobile industry in North Dakota. Aside from this new truck wash services and franchising business, the family owns an automobile dealership business and also an auto repair workshop all in Grand Forks – North Dakota.
3. Our Products and Services
Charles Holmes® Truck Wash Services, Inc. is well – equipped truck wash services and franchise company that offers a wide range of services that revolves around the car wash and auto detailing industry.
Charles Holmes® Truck Wash Services, Inc. will offer truck wash services that involve thorough cleaning, restoration, and finishing of trucks and trailers, both inside and out, to produce a pristine level of detail; it involves cleaning and restoring or exceeding the original condition of the surface of the truck’s finish, chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a truck and trailer.
We will also sell our truck wash franchise.
4. Our Mission and Vision Statement
- Our Vision is to become the number one truck wash services and franchise company in the whole of North Dakota with active presence in major cities in the United States of America and Canada.
- Our mission as a truck wash services and franchise company is to develop a highly successful, profitable truck wash services and franchise business which provides quality services in our community and to become the standard for an ideal truck wash business not only in the State of North Dakota but also throughout the United States of America and Canada where we intend selling our franchise.
Our Business Structure
We are set out to build a truck wash services and franchise business that will be a standard for the industry in the United States of America and Canada. We want to build a business of dedicated workforce and partners (franchisees) who will go all the way to ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we are set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot.
With the wide range of our service offerings and selling of franchise, we are only expected to employ more than it is required to run a conventional truck wash services business. Charles Holmes® Truck Wash Services, Inc. Company will employ professionals and skilled people to occupy the following positions;
- Manager (Owner)
- Marketing and Sales Executive
- Client Service Executive
- Truck Washer (6)
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creating, communicating, and implementing 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 signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily activities of organization.
Marketing and Sales Executive
- Identify, prioritize, and reach out to new clients, and business opportunities especially those who show interest in buying our franchise
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent Charles Holmes® Truck Wash Services, Inc. in strategic meetings
- Help increase sales and growth for Charles Holmes® Truck Wash Services, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Charles Holmes® Truck Wash Services, Inc. Company
- Serve as internal auditor for Charles Holmes® Truck Wash Services, Inc.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Truck washers (6):
- Make use of high lubricity sprays to polish and wash the truck’s bodywork.
- Responsible for handling core truck wash services
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Handle any other duty as assigned by the manager.
6. SWOT Analysis
Truck wash services is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard truck wash service and franchise business which is why we have decided to subject our business idea to SWOT Analysis.
Ordinarily we can run a normal truck wash business without writing a detailed business plan, but because of the kind of truck wash service and franchise business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Mr. Larry Brown, a HR and Business consultant with bias in startups 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 Charles Holmes® Truck Wash Services, Inc.;
Charles Holmes® Truck Wash Services, Inc. is centrally located in a densely populated industrial and residential estate in Grand Forks, North Dakota; our location is in fact one of our major strengths. We have a well – equipped truck wash and auto detailing facility and we are also one of the very few truck wash companies in the whole of Grand Forks, North Dakota that is into franchising.
Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered experts in the car wash and auto detailing industry, a team of hardworking and dedicated individuals.
Charles Holmes® Truck Wash Services, Inc. is a new business which is own by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to win some of the high paying clients in Grand Forks, North Dakota.
We are centrally located in one of the busiest areas in Grand Forks, North Dakota 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 truck wash services and franchise line of business.
The truth is that there are no standard truck wash services within the area where ours is going to be located; the closest truck wash service to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Due to the discretionary nature of industry services, customers’ perceptions toward economic outlook have a significant impact on industry demand. When customers perceive positively about their finances and employment outlook, they tend to increase spending on industry services. The consumer confidence index is expected to decrease in 2019, representing a potential threat for the industry.
7. MARKET ANALYSIS
- Market Trends
The market for truck wash services and franchise is driven by the purchase of trucks and trailers, the season and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will buy trucks and more people will patronize the services of truck wash businesses.
The trend in the car wash and auto detailing industry is that most car wash companies (strictly truck wash companies inclusive), in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
Some truck wash and automobile detailing companies include 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 truck wash companies to increase their revenue by diversifying as against increasing the scope of their market.
8. Our Target Market
Before choosing a location for our truck wash service and franchise business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Below is a list of the people and organizations that our truck wash services and franchise is designed for;
- The public sector; government ministries, agencies and parastatals who own trucks
- Households that own trucks
- Trucking and Transport Companies
- Haulage Companies
- Owner truck operators
- Investors and entrepreneurs who are interested in buying a truck wash franchise.
Truck wash services is an easy to set up business that does not require formal training to achieve; anybody can set up this business if they have the required startup capital. It means that the possibility of truck wash services springing up in the location where our truck wash service is located is 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 Grand Forks – North Dakota.
Our competitive edge is that we are standard and well – equipped truck wash and franchise business that has loads of complimentary business offerings that can easily assist us in attracting truck owners (customers) within the radius of our business operations.
We can confidently say that the location of our truck wash services and franchise business will definitely count as a positive for us amongst any competitor. For the time being, Charles Holmes® Truck Wash Services, Inc. has no real competitors that can compete with the quality of service we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Charles Holmes® Truck Wash Services, Inc. is established with the aim of maximizing profits in the industry and we are going to do all it takes to attract both individual and corporate clients on a regular basis.
Charles Holmes® Truck Wash Services, Inc. will generate income by offering the following services: thorough cleaning, restoration, and finishing of an automobile, both inside and out, to produce a pristine level of detail, cleaning and restoring or exceeding the original condition of the surface of the truck’s finish (usually a paint with a glossy finish), chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a vehicle.
Aside from operating a truck wash, we will engage in the sale of franchise and we are also open to generate income from other related services as long as it falls within the scope of the industry we are operating in.
10. Sales Forecast
One thing is certain, there would always be trucking companies and haulage companies who would need the services of truck wash services.
We are well positioned to take on the available market in Grand Forks – North Dakota and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our truck wash services and our clientele base.
We have been able to examine the car wash and auto detailing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Charles Holmes® Truck Wash Services, Inc., it is based on the location of our business and of course the wide range of related services (selling of franchise) that we will be offering;
- First Fiscal Year (FY1): $440,000
- Second Fiscal Year (FY2): $950,000
- Third Fiscal Year (FY3): $2.8 million
N.B: This projection was done based on what is obtainable in the car wash and auto detailing industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing strategy for Charles Holmes® Truck Wash Services, Inc. is going to be driven basically by excellent customer service, honesty and quality service delivery. 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.
Charles Holmes® Truck Wash Services, Inc. is a truck wash services and franchise business that is strategically located and we are going to maximize the opportunities that are available to us which is why we spent more to locate the business where it will be visible to our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Charles Holmes® Truck Wash Services, Inc.
Charles Holmes® Truck Wash Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our truck wash services and franchise business by sending introductory letters alongside our brochure to corporate organizations that own trucks, transport and logistics companies, households and key stake holders in Grand Forks – North Dakota
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that attract clients who need our customized services
- Advertise our truck wash services and franchise company in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
11. Publicity and Advertising Strategy
Charles Holmes® Truck Wash Services, Inc. is set to create a standard for truck wash services in Grand Forks – North Dakota and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise a truck wash services and franchise business. Here are the platforms we intend leveraging on to promote and advertise Charles Holmes® Truck Wash Services, Inc.;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our truck wash services and franchise business in relevant automobile magazines, local newspaper, local TV 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 Billboards in strategic locations in and around Grand Forks – North Dakota
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the car wash and auto detailing 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 Grand Forks – North Dakota.
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.
- Payment Options
The payment policy adopted by Charles Holmes® Truck Wash Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Charles Holmes® Truck Wash Services, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via POS
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part.
13. Startup Expenditure (Budget)
Charles Holmes® Truck Wash Services, Inc. understudied one of the leaders in the truck wash line of business to be able to determine the essential things that we would need to successfully launch our business. These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in Grand Forks – North Dakota – $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.
- The cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing standard car wash facility- $100,000.
- The cost for facility remodeling – $10,000.
- 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 (pressure washing machine, vacuum cleaner with attachments, white cloth rags, paper towels, brush, bowl cleaner, dust pan & brush, dry mop, wet mop & bucket, latex gloves, extension cord, window cleaner, disinfectant cleaner, furniture polish, soft scrub product, SOS pads, feather duster, high duster, caddy with handle to keep your supplies in, cleaning chemical supplies, detergents and soaps) – $25,000
- The cost for store equipment – $15,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for the purchase of utility truck – $15,000
- Miscellaneous: $10,000
We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully launch our truck wash services and franchise business in Grand Forks – North Dakota US.
Generating Funds/Startup Capital for Charles Holmes® Truck Wash Services, Inc.
Charles Holmes® Truck Wash Services, Inc. is owned and managed by Charles Holmes and his immediate family members. They are the sole financier of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Charles Holmes® Truck Wash Services, Inc. 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 business such as ours is financial leakages. In order to plug financial leakages, the management of Charles Holmes® Truck Wash Services, Inc. will adopt 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 adopting new technology, best practices and diversifying our services.
Charles Holmes® Truck Wash Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- 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
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed pressure washing machines, vacuum cleaner with attachments, white cloth rags, paper towels, brush, bowl cleaner, dust pan & brush, dry mop, wet mop & bucket, latex gloves, extension cord, window cleaner, disinfectant cleaner, furniture polish, soft scrub product, SOS pads, feather duster, high duster, caddy with handle to keep your supplies in, cleaning chemical supplies, detergents and soaps: 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
- Establishing business relationship with trucking companies, haulage companies and vendors – suppliers of all our needed cleaning accessories and supplies et al: In Progress
- How to Buy a Pharmacy Business and What to Look Out For - May 28, 2021
- How Much Does It Cost to Build a Dog Park in 2021? - May 28, 2021
- How to Start a Halfway House for Inmates in 20 Steps - May 28, 2021