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You need to consider a number of factors when starting your own car wash business, particularly the type of car wash itself. Self-service, hand wash, automatic, mobile or some combination of those can all be viable options, but they must be carefully researched and priced for practicality, potential profitability and return on investment.
Conduct local market research in your area to determine the viability of a profitable car wash and which type of services to offer. Consider area demographics, competition, average weather conditions and other factors. Mobile and hand wash car washes require a smaller upfront investment in equipment, but ongoing labor costs must be considered.
Self-service and automatic car washes require less labor, but upfront machinery and real estate costs can be high. Consider hiring a market research firm or business consultant to walk you through this task and advise you on your options. Contact car wash equipment and supply distributors and request information on specifications and pricing.
Your distributor will be an excellent source of knowledge as to what will be required to start your new car wash. Create a car wash business plan based on your market research and equipment choices which includes all aspects of the business.
A business plan will be needed when applying for financing, and you may wish to hire a business consultant for this task. Alternatively, you may visit the U. Decide on a business structure for your car wash business.
You may operate as a sole proprietor, corporation, partnership or limited liability company. The paperwork for your business structure is available by visiting your state's business regulatory website.
Locate a building or work space that will provide the necessary utilities and space requirements for the car wash.
If you are operating a mobile business, locate a suitable vehicle large enough to hold and transport your mobile equipment. Apply for financing sufficient for the purchase, lease or rental of your building, vehicle, startup expenses, equipment, supplies and operating capital through your bank or the SBA.
Obtain all necessary local business permits, zoning variances, environmental and safety inspections where applicablestate tax registration certificate, federal tax identification number and Employer Identification Number from the Internal Revenue Service if hiring employees.
Purchase equipment and supplies and outfit your car wash. Purchase business liability insurance from your local insurance agent.
Items you will need.Nov 15, · To open a car wash business, start by applying for a loan from the Small Business Administration or a bank so you have the $,$, usually required to set up a new car wash. Next, apply for all the permits and licenses you need in your state to start a business%(98).
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