Car washes provide customers with a convenient way to maintain their vehicle’s appearance in a pristine condition at all times. While it may not seem like a profitable idea initially, a car wash venture can turn out to be a lucrative investment. It is a recession-proof business. As long as there are cars on the roads, car wash services will always be in demand.

Now that you have decided to step foot into the billion-dollar industry, we’ll take a look at some of the essential secrets you must know to run a successful car wash business.

Plan Your Business

A car wash business has many facets involved. A crystal clear plan will let you map out the specifics and increase your chances of success. Consider the upfront and overhead costs you will have to incur, equipment costs, and the marketing strategies you will adopt to launch the business.

Also, you will have to weigh in on the pros and cons of different car washes. There are a few types of car wash services available that you may choose from, such as a full-service car wash or a self-serve car wash.

Decide Upon the Business Structure

Do you want to run the business as a sole proprietorship and start from scratch, or buy a franchise? Buying facilities like car wash franchises would allow you to utilize a proven business model and an established brand name, which may significantly increase your chances of success. Buying a franchise will not require you to sweat over advertising and promotional campaigns for the business, and franchises will offer continuous support along the way.

Starting your own business will require you to be extremely proactive with the services offered, prices, and promotional strategies. It also has lots of legalities and paperwork involved. But at the end of the day, you will be your boss and have the freedom to change any ineffective strategies at will.

Choose the Right Location

Strategically placing your car wash business, such as in a location with high traffic volume, will increase your chances of bringing in more customers as they drive and offer you the greatest return on investment.

A good location would be easily accessible and visible to the customers from a distance. The average traffic speed should be preferably 30 mph to 40 mph, so customers can make a split-second decision to get their cars washed. There should also be sufficient space around your car wash area so vehicles can line up without blocking the roadway or traffic.

Choosing a location next to supermarkets, gas stations, or shopping malls is a good idea, as customers can get their cars washed while running other errands without having to go out of their way.

Consider the Competition Around

Another factor that you must consider is that your car wash business should preferably not be in an area where there are similar businesses. Taking away customers from an already established business is not easy, especially if you do not offer vastly superior services.

Visit different car washes setups and observe their business model, like their prices and services offered. However, there may be instances where opening your car wash a block or two away from another one could prove viable such as if others have long waiting times. That could be your chance to swoop in and pull some disgruntled customers your way.

Obtain the Licenses and Permits

It is pertinent to fulfill all necessary paperwork and obtain the required licenses and certificates before starting your car wash business. That is essential if you want to run it successfully without any legal impediments or costly legal battles in the future. Some legal documents you will need to have in place include:

– Articles of Incorporation
– Tax Identification Number
– Operating Agreement
– Insurance Policy
– Sales Tax License
– Income Tax Withholding
– Unemployment Insurance Tax

Secure Financing

No matter how enthusiastic you are about your car wash business, if you do not have the means to finance it, it will just remain a business concept and never materialize. The amount of capital needed will ultimately depend upon the type of car wash service you decide to open. You can apply for a loan with various banks, the Small Business Association (SBA), or even private investors.

The initial costs of operating a car wash business can be significant. That is when your business plan will play an integral role, as investors will use it to consider the viability of your business and decide whether to fund it or not.