For many ambitious entrepreneurs, opening a car wash can be a very attractive investment. After all, consumer demand for car washes in the United States only continues to grow. According to data gathered by the International Carwash Association, roughly 48% of Americans reported taking their vehicle to a tunnel or bay car wash on a regular basis in 1994, but today, almost 80% of drivers consistently have their cars washed by experienced professionals.
If you’re interested in opening a car wash business, it’s critical to plan ahead and map out how your business will operate, where it’ll be located, the type of equipment you’ll need, and the amount of staff required to keep operations running smoothly. In addition, you should gain a deeper understanding of local laws or regulations governing car washes to avoid fines or liabilities. Read on to explore nine important considerations to bear in mind before launching a washing business so you hit the ground running with confidence.
Why You Should Start a Car Wash Business
According to a 2023 Car Wash Services Market report, the industry is on track to exceed $23.7 billion in revenue in America by 2030. Aside from offering a potentially high return on investment, car washes also afford business owners considerable flexibility to explore a wide range of services, products, and membership offerings depending on demand and local customer demographics. Furthermore, car wash technology keeps evolving, making it easy to invest in upgraded equipment as your business scales up.
9 Key Considerations for Opening a Car Wash
Learning the basics of how to start a car wash business largely comes down to preparation. By building your brand on a firm foundation, you’ll have a much easier time creating a successful car wash from scratch. Here are nine essential aspects of opening a car wash that every business owner should consider.
1. Market Research and Location Selection
Dive into learning more about the car wash market in the state and city in which you intend to open your business. Look into the number of car washes already active in the area and the types of services they tend to offer customers. You’ll also want to consider the demographics of the customers you hope you attract. In a sprawling suburb, for example, your main customer base may be older clients with more disposable income looking for a full-service car wash experience.
Once you’ve identified your target market and the general area where you plan to operate, you can begin searching for an ideal location for your car wash. Avoid opening your business in the immediate vicinity of other established car washes to avoid direct competition. With that said, you also don’t want to place your car wash in an area that’s inconvenient for customers or too far away from major intersections. Instead, look to strike a balance between affordability and desirability when selecting a location for your car wash.
2. Legal and Regulatory Compliance
While the Environmental Protection Agency and OSHA provide broad guidance for the laws or environmental standards car washes must follow, each state and city have different regulations. In general, the EPA requires that commercial car washes prevent wastewater from entering into sewage systems without treatment, as outlined in the Clean Water Act of 1972. For a complete understanding of your legal obligations, it’s important to carefully research the laws in your area before opening your business.
In addition, you may need to offer workers’ compensation insurance to protect employees from potentially dangerous machinery such as conveyors. Just like environmental regulations, workers’ compensation laws vary by state. To protect customers and their vehicles from equipment malfunctions or other accidents at your car wash, it’s also advisable to invest in liability insurance.
3. Investment Budgeting and Financial Planning
If you’d like to attract potential investors, you’ll need to create a comprehensive car wash business plan that contains a summary of upfront investment costs, expected overhead expenses, and projected revenue. Having a business plan will also help you qualify for other financing options like bank loans or SBA loans. Be sure to include a breakdown of how money from investors or a loan program should be allocated during the first few years of opening your business. Having these financial details sorted out well in advance will make it much easier to create a healthy budget for your car wash so you can begin to build your business on solid financial footing.
4. Car Wash Equipment
Next, you’ll need to consider the type of car wash equipment you’ll need for your business. This may include pressure washers, a water runoff reclaim system, conveyor machinery, and chemical pumps. Equipment costs will vary depending on the manufacturer and the type of car wash you’re running. Additional equipment costs to bear in mind include microfiber towels, tire brushes, employee uniforms, and cleaning solutions like presoaks, soap, or wax. If you plan to offer detailing services, you’ll also need to purchase vacuums, steam cleaners, and brush kits.
5. Staffing and Employee Training
Spend some time determining the number of part-time or full-time employees you’ll need and the training they’ll require to work safely and efficiently. Onboarding should include live demonstrations of how your car wash equipment works and any potential hazards machinery may pose to workers or customers. It’s also important for all employees to know how to recognize potential maintenance concerns and which vendor to contact for maintenance or repairs.
6. Marketing and Customer Acquisition Strategies
Attracting customers to your car wash instead of a competitor’s is essential to growing your business. When it comes to marketing your car wash, start by building a website that lays out everything people should know about your car wash, including hours of operation, location, services, and a brief history of your company. Be sure to also claim your business on Google My Business so customers can quickly find you online. Next, create a strong presence online through social media to help spread the word about your car wash. Additional marketing efforts like offering customer loyalty rewards or sending out direct mail fliers can also help to draw in more new visitors over the long term.
7. Business Operations and Workflow Management
Another thing to consider is how your car wash will operate. This includes determining which employees will manage to direct customers to wash lanes, who will handle detailing, and how customers will pay for services. Organization is key to any successful car wash as speed of service and convenience go hand in hand with the overall customer experience. By clearly defining workflows and employee roles upfront, you’ll run into far fewer hang-ups that can bog down business.
8. Maintenance and Upkeep of Car Wash Facilities
Regular inspection and maintenance of all car wash equipment should be a part of daily operations. Maintenance is especially important for in-bay or tunnel car washes that rely on conveyors and heavy machinery to keep the queue moving. Rollers, conveyors, and brushes should be cleaned at the end of each workday to prevent unexpected breakdowns that can bring business to a screeching halt. Be sure to include the ongoing expenses of routine maintenance, upkeep, and repairs in the financial section of your business plan as well so you’re not blindsided by the costs later down the road.
9. Business Security Considerations
Thieves will often target car washes due to the fact that many car washes are cash-centric businesses. Self-serving car washes that operate 24 hours a day are especially at risk as there are rarely attendants on-site to oversee security. In many cases, criminals will seek to break into change machines or coin reservoirs in vacuum stations. Installing HD quality security cameras across your car wash is an effective way to deter would-be thieves while hiring a security guard can provide further protection for customers and workers. In addition, it’s advisable to spend a little money on bright lighting across the entire premises so any intruders at night can be clearly captured on camera. You should also consider investing in a reputable alarm system to protect your car wash after hours.
Embrace Innovation and Future-Proof Your Business Today
At National Carwash Solutions, our goal is to provide you with the equipment, chemicals, resources, and expert support you need to create a thriving car wash business. By partnering with many of the most trusted brand names in the industry, we’re able to provide you with top-tier solutions you can trust including individual component replacement to complete tunnel wash systems. In addition, NCS provides extensive educational and training materials to help car wash owners navigate the industry. Best of all, NCS is at the forefront of car wash innovations that can prepare your business for the future, such as a convenient app for tracking chemical levels and a helpful carbon footprint tracker to assist in reducing the environmental impact of your business. If you’re ready to learn more about how NCS can keep your business running smoothly, contact us today.
