Many entrepreneurs have a car wash business in their portfolio because of how simple it is to manage. But don’t let that fool you. A car wash business has the capability of earning millions of dollars in revenue every year. The car wash and auto detailing market was worth $11.5 billion in 2021 this year and is expected to grow with a healthy compound annual growth rate of (CAGR) 5.3%.
That’s a decent percentage considering that the market has already reached the billion-dollar mark. This steady growth is why many business owners are planning to join the market, and maybe one of the reasons you are joining the market.
It’s not that hard to manage a car wash business. Most of the time, you only need a few employees to manage it. Now that the pandemic is subsiding in the US due to the availability of vaccines, it’s only a matter of time before life goes back to normal again. More people will be using their vehicles, and they’re going to look for someone to clean their cars for them.
No one really has the time to clean their cars anymore, and this is what you will capitalize on as a car wash business. Here are some things you should know to start a great car wash business:
Wait Until the Pandemic Subsides
First of all, you shouldn’t rush into starting this business while the pandemic is still around. If you do start your business right now, you’re not going to get many clients. The pandemic has many people stuck in their homes doing their work, and they don’t really use their cars to go around a lot. However, once the pandemic has subsided, you should get a decent amount of clients visiting your business.
Some of these clients might even ask you to do some detailing because they haven’t used their cars for a long time. This will lead to a good stream of revenue during the first few months of your business.
Holding off and waiting to start your business is a good thing, especially when there is still a pandemic around. You should consider starting an online business first before starting your car wash business. This will ensure that you’ll have enough funds to start your car wash business once the pandemic has subsided.
You can’t just rely on clients visiting your business alone. There are some instances where there aren’t going to be enough clients to sustain your business. You’re going to make clients of your own, clients that will visit your business regularly. One way you can do this is by making partnerships.
Before you start your business, you should ask around your neighborhood regarding auto-vehicle companies looking for someone to clean their vehicles for them. You can also ask around for any carpooling services or taxi companies that might be in your neighborhood. By doing so, you have an idea as to whom you can make partnerships with.
Start talking to the owners of these companies and see if you can strike a deal with them. Since they are most likely to ask for your services in bulk, it might be a good idea to give them discounts.
Use High-Quality Equipment
You can’t have faulty equipment in your car wash business. This will lead you to lose revenue. You’re going to need to invest in high-quality equipment so you can keep your company going.
High-quality equipment is going to ensure that your car wash business runs at maximum efficiency. You’re going to need hydroblasting services to remove dirt and grime from your client’s vehicles, and a low-quality one isn’t going to cut it. You’re going to use something that’s on top of the line. By utilizing high-quality equipment, you can ensure that your business does a good enough job in cleaning vehicles that it will bring back loyal customers into your company. This will help your business grow in the long run.
Market Your Business
Lastly, you’re going to have to market your business. Unlike other businesses, you’re going to mainly market your business locally. This is because car wash businesses rely on the local market to sustain their needs. This is only until you have grown into a franchise, which is a goal that every car wash business has in mind. But when starting off, you should market yourself locally.
You can concentrate on traditional marketing campaigns such as billboards or maybe posters for your grand opening. You can also let Google ads do some work for you. You pay less when you’re only trying to market within your state, so it’s worth it. Primarily this is to make sure that people know that your business exists. Once you let people know that you’ll have a healthy stream of customers visiting your business.
Here are some of the things you should know before starting your car wash business. It isn’t that tough to run a car wash business since you don’t have many employees. What you need to start concentrating on is building a loyal customer base that will keep returning to your business time and time again. These ways will help you do exactly just that.