Car Wash Business Plan

Business Plan Articles

If you are starting or buying a car wash, it is likely that you will need a business plan at some point. The experts at Pro Business Plans have extensive experience preparing plans for investment and strategy. This article provides information about what is typically included in a car wash business plan and how it is structured.

Car Wash Business Plan

There are several unique factors that contribute to the success of a car wash including the location, age/brand, capacity, and business model. Not all car washes are the same, for instance some may be manual labor intensive in a dense urban area with a focus on luxury automobiles. Others may be primarily self-service and automated targeting the price sensitive market in a rural location. Investors and banks will review each one of these factors relative to the regional competitive environment and the qualifications of your management team.

Business Model

The business model of a car wash business plan contains a large number of aspects that will separate it from the competition. For instance, some car wash companies may be located in rural areas with a lot of space and room for many cars. They expect high turnover and low rent costs to balance a price sensitive market that reaches the mainstream consumer demographics. Their business model may focus on automation and providing a streamlined series of car wash options. Other smaller locations that are located where rent is higher, but a population with a higher income exists, may provide a ‘higher level of detail’ that may include a wash by an employee using premium chemicals complemented by an array of premium additional offerings.


Location

The location of a car wash company can be very critical when determining its potential for success. Some car washes are located in areas with a very high proportion of customers, whereas others are located in more remote areas. The location often dictates the style of service provided as some in denser areas must charge higher prices or have a much higher turnover level. However, many are located nearby gas stations or similar synergistic establishments.


Operations Structure

The operations structure of a car wash may vary considerably depending upon its size and market positioning. Some smaller car washes are owned and managed by the same individual with a few part-time staff working to wash the customers’ cars. Larger car washes may be focused around a hybrid of manual or automated washes and others are exclusively automated. The financials will reflect the operations structure both directly and indirectly.


Marketing Plan

The marketing strategy of a car wash depends on what stage it is at and the method of its inception. For instance, some car washes may be acquired with a bank loan and promote the management change by offering discounts and retaining the existing brand. Others may start from the beginning and build a foundation on public relations, local mass promotions, and direct mail. The actual marketing strategy should be determined based upon the unique approach taken by your car wash with consideration to the existing market environment and the nature of the situation. For instance, you may be purchasing an existing car wash that has a poor reputation by being badly managed. Therefore, your marketing efforts may be focused on focusing of the fact of the management change and reaching out to the prior customers, engaging in reputation management, and potentially restructuring the brand image.


Promotional Strategy

The promotional strategy for a car wash generally depends upon several factors such as if the car wash targets a regular business commuting demographic or an infrequent traveler demographic. If it is the latter, road signs and regional mass promotion may be more effective than promoting to the regional market.


Customer Loyalty

The most effective method of establishing customer loyalty is through a combination of customer service, digital reputation management, and incentives such as discounts and special offers. If you are targeting a regional audience, the importance of customer loyalty cannot possibly be underestimated.


Financial Projections

The financial forecasts for a car wash business plan are designed to provide investors with a three to five-year ProForma financial period to project the profits and identify key risk areas. If the car wash has an operating history, the prior performance is used as the basis to form assumptions about the future. If it is a new car wash without a history, the best approach is to analyze the performance of similar car wash companies and form conservative assumptions as it applies to your specific case. In general, investors will request to see an income statement, balance sheet, cash flow forecast, and profit/loss statement. A strong financial model can also help you to plan internally by planning internal decisions such as having a deeper understanding of your depreciation schedule and a variance in the financing structure will impact your profitability. For instance, you may realize that adding debt payments will increase your risk at a level that is unsustainable and it may make more sense for you to issue equity instead.


Revenue Projections

The revenue forecasts for a car wash business are driven by a combination of what the company anticipates generating based on historical performance as well as an analysis of similar car washes. These revenue forecasts will influence the decisions that banks and investors make when considering whether or not to support your business.


Budget Forecasts

The budget estimates of a car wash are most effective if they are based upon an analysis of quotes and proposals received from suppliers and vendors. Real estate agents may provide one cost, as well as construction firms, utility companies, and chemical manufacturers or distributors.


What is Included in Our Custom Car Wash Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

Speak With An Expert advisor about your plan at (877) 810 - 4172