How to Write a Car Wash Business Plan—Tips for Success

One of the very first things you should do when you launch a car wash business is to write a business plan. If you have a solid car wash business plan, you will set your company up for success, both when starting your car wash and when it is running. This article will guide you through starting a car wash business plan so you can get started on the right foot.

What is a Business Plan?

A business plan for a car wash is a document that outlines the steps your company needs to take to capitalize on an opportunity. It also determines if your business opportunity is feasible.

The business plan doesn’t always need to be a formal document, although it can be helpful when it is. At the very least, you need to jot down your business plan on the back of a napkin or your phone’s notepad. The key is that by writing down your ideas and plan, you are better able to consider every phase of the business, what you want to accomplish, and how you will do so.

Your car wash business plan is your very first step in turning a business idea into reality.

Why Should I Write a Business Plan for a Car Wash?

Every business owner needs to learn how to start a car wash business plan, but why? It will be your business’s roadmap for the first several years. It will also organize and provide important information that lets you examine your business, niche, market, and more. All of that information will streamline decision-making, leading to more informed and efficient decisions.

On top of that, a business plan for a car wash is crucial if you want any outside funding. Expect every investor or financial institution that provides funding to ask for a copy of your business plan. They will see this as an indication that you have planned your business. They may also use it to decide your probability of success and, therefore, decide whether to invest.

4 Tips Before Creating a Car Wash Business Plan

Before we look at a car wash business plan template, there are a few things you will want to keep in mind. The following tips will make it easier to write your business plan while also increasing the effectiveness and usefulness of the plan.

1. Research Your Market

Researching your market is one of the first steps in how to start a car wash business plan. For example, you should research statistics about car sales and car wash use. Your market research will help you plan and make financial predictions.

2. Visit Some Competitors and See What Works

You don’t have to reinvent the wheel when it comes to your car wash or business plan. Visit several car washes to get a feel for the various forms your car wash can take and what will work well. Consider details like whether you want a self-service car wash, an automatic car wash, or even a mobile car wash.

Talk to various companies involved in the car wash business, from car wash owners to car wash equipment manufacturers and suppliers. This will ensure you fully understand the business, so you can confirm your vision and understand what running a car wash will be like. Talking to other car wash owners can also help you figure out the number of cars you can expect to serve daily.

Don’t forget to look at the areas around the local car wash companies. What types of businesses are nearby? How accessible is the car wash?

3. Set Realistic Goals

Thanks to all of your research, you will be ready to set realistic goals. Realistic goals are crucial for any business, as their attainability will help with your motivation. If you set unrealistic goals and fall short of them, you may get discouraged. Or you may push your team too hard or try to take shortcuts to reach them.

But by setting realistic goals, you can keep your entire team on track. You will also get to experience the joy of meeting your goals. To make the most of this, set smaller sub-goals for your major goals and make those realistic as well. Accomplishing each goal will push you toward the next one, both in terms of tasks completed and your team’s overall attitude.

4. Create a Budget

Your car wash business plan will include finances, so you need to think about your budget before you start writing the plan. To create a budget, start by looking at the revenue. If your car wash is already operational, then use data from the last 12 months. If you are starting a new car wash, see if you can get data from competitors to make realistic estimates.

From there, subtract all of the fixed costs associated with your car wash. These include payroll, taxes, insurance, supplies, and rent. Next, you will need to look at variable expenses. This can include repair costs for equipment, utilities, and office supplies. Allocate additional funds for a contingency, such as damaged equipment.

Now, you can combine all of those numbers in a profit and loss statement. This statement looks at your business income (profit) and expenses (loss) for a month. You want a positive number, as this indicates your business is earning money. You can then use the profit and loss statement as a guide when creating your budget.

What to Include in a Car Wash Business Plan

At this point, you are ready to create your car wash marketing strategy and business plan. Your business plan should include the following sections, so you can use this section as a car wash business plan template.

• Executive Summary

When starting a car wash business plan, the executive summary is the first part you will come to. It should give a brief overview of your business proposal, including what you are asking for. Most people will scan this part of your business plan to decide if they even want to read the rest of the plan.

Overall, you want your executive summary to be about half a page. Make it as concise as you can while including all of the necessary information.

It should include everything you would put in an elevator pitch, such as:

• Business concept (condensed)
• Service proposition
• Market demographics
• Names of management team
• Anticipated start date
• Equity position
• Funds required to start
• Business Description

The business description should objectively describe your small business as well as its future potential. Support that potential with facts and a bit of enthusiasm or energy.

Include relevant facts and figures with their sources. Overall, you want to include the following information about the business:

• What it does
• How it will be organized
• Car wash service description
• Car wash industry information
• Your mission
• Current and future goals
• Business status (startup, expansion, or purchase)

Don’t forget to make it clear how the services of your car wash are better than the competitors’ services, as this is part of your value proposition.

• Managers and Employees

This should outline everyone on the team, including a brief biography of them. Add their resume to the appendix of your business plan. For each position, you want to show their experience and education, as well as why they are likely to be successful.

Unsurprisingly, the bulk of this section will focus on the management team and entrepreneurs. You will also want to add smaller sections for any other advisors or professionals working with you. These include mentors, bankers, attorneys, consultants, the board of directors, and accountants, among others.

There will likely be empty positions you will need to fill at your car wash. For these, list the positions that need to be filled as well as when you need to fill them. Also include their pay, accounting for payroll taxes.

• Marketing

Your car wash marketing strategy is another important part of your business plan. Start by considering your target market, including demographics like age, geographic location, and income. This is your time to think about your average customer.

Then, look at the competition and try to find a slightly different focus. By choosing a different focus, you won’t be in direct competition with the other car washes, making it easier to succeed. Remember that even people that wash their cars at home could be considered “competition.”

Ideally, include information on three to five competitors. This should include the type of car wash, location, services, pricing, age of business, and quality. Also, include the advantages and disadvantages of your car wash.

From there, you can get into the bulk of your marketing strategy. Be specific and think about your customers or process. Don’t just say you’ll use social media; mention which platforms you will use and how.

• Operations and Locations

This goes beyond just listing where your car wash will be physically located. You will also want to outline where you make your products or services. For example, list your suppliers, along with the terms of the products they supply you with and the lead time.

You don’t need to have specific car wash locations yet. In many cases, you can’t get a location until you have a bank loan, and lenders will want to see the business plan and marketing plan before giving you a loan. In that case, describe the features of the ideal place as well as typical rents (as a slight overestimate).

• Financial Projections

Your financial projections start with your sales projections. This can be challenging, and you shouldn’t expect to come up with a completely accurate figure. Instead of being accurate, it is more important to back up your projection with data.

Look to the following sources for data as you create a projection:

• Industry journals
• Car washes in areas with similar demographics
• Trade groups
• Census data
• Industry experts

There will also be financial projections, which should go at the very end of the business plan. You need to include:

• Cash flow statement
• Balance sheet
• Profit and loss statement

This section will typically span three years of projections. Include every single relevant number. For example, loans should include what it is for, the amount, the interest rate, and the length.

Don’t forget to include your sources of funds, uses of funds, startup expenses, and cash flows.

Growth Strategies for Car Wash Businesses

Once you have a business plan, your next step toward success will be following effective marketing and growth strategies. The following are some excellent strategies to include.

1. Get Google Reviews

Each Google review can serve as a personal recommendation, attracting more potential customers. Need a helping hand? Podium offers a Google Review Link Generator to streamline and automate the process of gathering reviews.

2. Consider Text Marketing

Text messages have a 98% open rate—the highest rate you will get from any channel. They are also the preferred communication method of many of your clients. Check out our free texting templates and see how this powerful channel can help you grow your business.

3. Try Using Webchat for Your Site

The modern customer hates friction—which means you need to make it as easy as possible to contact your business. Adding Podium’s Webchat to your website allows you to turn website visitors into leads and then into clients. Interested? See Webchat in action on your site.