Car Wash Business Plan
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Executive Summary
Business Overview
Eco-Clean Car Wash is a startup car wash company located in Boston, Massachusetts. The company is founded by Thomas Wright, a former car wash manager who has gained valuable insights in how to run a car wash during his time working at Clean & Dry Car Wash. Now that Thomas has garnered a positive reputation for his exceptional management skills, he is ready to start his new company, Eco-Clean Car Wash. Thomas is confident that his ability to effectively manage staff and operations combined with his winning customer service record will help him successfully open and run a profitable car wash.
Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any vehicle owner. Eco-Clean Car Wash will be the ultimate choice in Boston for people looking for an eco-friendly car wash option. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.
Product Offering
The following are the services that Eco-Clean Car Wash will provide:
- Eco-Express Car Wash
- Full Service Eco-Clean Car Wash
- Eco-Car Detailing
- A La Carte Services (vacuuming, window cleaning…)
Customer Focus
Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash. No matter the customer, Eco-Clean Car Wash will deliver the highest quality car care and the best customer service.
Management Team
Eco-Clean Car Wash will be owned and operated by Thomas Wright. Thomas is a former car wash manager for another local car wash. He has gained valuable insights in how to run a car wash business during his time working for Clean & Dry Car Wash. Thomas is a graduate of the University of Boston with a Bachelor’s degree in Finance. He will be in charge of the finances, supplier relationships, and eco-initiatives for the company.
Thomas has recruited an experienced car wash attendant, Patrick Collins, to be his co-manager and oversee the maintenance of the equipment and handle the training and management of the car wash attendants. Patrick Collins has been the top performing car wash attendant at Clean & Dry Car Wash for over five years. Thomas relies strongly on Patrick’s diligence, attention to detail, and focus when providing car detailing services, inspecting equipment, and training car wash attendants.
Success Factors
Eco-Clean Car Wash will be able to achieve success by offering the following competitive advantages:
- The management team, car wash attendants, and car detailers will all provide exceptional service for every customer that comes in for a car wash. The attendants will be trained to employ a high attention to detail to ensure every vehicle is cleaned to perfection.
- Eco-Clean Car Wash strives to live up to its name. The company uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
- Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services like vacuum only or window cleaning only.
Download the car wash business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Eco-Clean Car Wash is seeking $350,000 in debt financing to launch its car wash business. The funding will be dedicated towards securing the property and purchasing car wash equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, utilities, and marketing expenses. The breakout of the funding is below:
- Property purchase and build-out: $200,000
- Car wash equipment and supplies: $40,000
- Three months of overhead expenses (payroll, utilities): $90,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Eco-Clean Car Wash.
Company Overview
Who is Eco-Clean Car Wash?
Eco-Clean Car Wash is a newly established full-service car wash located in Boston, Massachusetts. Eco-Clean will be the most reliable, eco-friendly, and high quality choice for vehicle owners in the Boston area. The company’s eco-friendly approach is built on less water, less energy, and more customer service. Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any eco-conscious vehicle owner. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.
The company’s management team is dedicated to training all employees on the best practices for car detailing and customer service to exceed customer expectations. Each car wash attendant and auto detailer is trained to practice attention to detail and thorough cleaning of each car that comes through the car wash.
Eco-Clean Car Wash History
Eco-Clean is owned and operated by Thomas Wright, a former car wash manager who has a Finance degree from the University of Boston. Thomas has worked for a local car wash company and managed a small team of car wash attendants. Thomas’s tenure with the car wash company has given him the skills and knowledge required to venture out on his own and start his own car wash. Thomas has gained a reputation for being an exemplary manager and has a list of car wash attendants who have expressed interest in working for his new company.
Since incorporation, Eco-Clean Car Wash has achieved the following milestones:
- Registered Eco-Clean Car Wash, LLC to transact business in the state of Massachusetts.
- Has identified the desired location and vacant property to purchase for the car wash.
- Reached out to potential suppliers of chemical-free products and eco-friendly car wash equipment to get quotes.
- Began recruiting a staff of car wash attendants and car detailers to work at Eco-Clean Car Wash.
Eco-Clean Car Wash Services
The following are the services that Eco-Clean Car Wash will provide:
- Eco-Express Car Wash
- Full Service Eco-Clean Car Wash
- Eco-Car Detailing
- A La Carte Services (vacuuming, window cleaning…)
Industry Analysis
The global car wash industry is an estimated $33B market with North America boasting the most car washes of any region. The United States alone contributes to approximately 43% of the total global market share with over 60,000 car wash locations operated by 16,000 companies with over 163,000 employees across the country. The states with the most car washes are California (2,025) followed by Texas (1,465), Florida (1,289), and New York (901).
The market for car washes is highly fragmented with no major players and no companies with more than 5% market share. The most common types of car washes are self-service bay, detailing services, in-bay automatic wash, hand washing, exterior only, and full service. In-bay automatic car wash stations are the most popular, with 51% of customers preferring this type of car wash.
Car wash operators who use eco-friendly products and run eco-friendly facilities can gain a competitive advantage especially among millennial and Gen Z customers who prefer eco-friendly options and are willing to spend more money on these products and services.
Download the car wash business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash.
The precise demographics for Boston, Massachusetts are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Eco-Clean will primarily target the following customer profiles:
- Owners of cars, trucks, vans, SUVs, motorcycles, and RVs
- Eco-conscious consumers
Competitive Analysis
Direct and Indirect Competitors
Eco-Clean Car Wash will face competition from other companies with similar business profiles. A description of each competitor company is below.
Clean & Dry Car Wash
Clean & Dry Car Wash is a full-service car wash located in Boston, Massachusetts. The car wash offers a wide variety of car wash and detailing services including automated, self-service, handwash, and no-water wash options. The company is owned and operated by car enthusiasts who know the importance of car care and are dedicated to providing quality service for their customers. Clean & Dry Car Wash ’s promise is to deliver personalized customer service, exceptional car washes, and low prices.
Classy Bubble Car Wash
Classy Bubble Car Wash is a Boston-based car wash and auto detailing company that provides outstanding service to car owners. Classy Bubble Car Wash makes it easy to get a high quality car wash without the hassle. The company provides comprehensive full-service car wash services for cars, trucks, vans, and any other standard-sized vehicle. The owners of Classy Bubble Car Wash are car detailing professionals so they understand how a thorough detailing job should look. The company has three tiers of car wash packages to choose from – basic, premium, and extra premium. Customers can choose eco-friendly product options like chemical-free soap and waterless washes for an additional fee.
Shine Clean Car Wash
Shine Clean Car Wash is a trusted Boston-based car wash that provides superior service to car owners in Boston and surrounding areas. The company has three locations throughout the city and is able to provide a one-stop shop for anyone looking to get a quality car wash fast. Shine Clean Car Wash provides full-service car wash and auto detailing packages. The company’s car wash attendants are trained in efficiency to provide the quickest service possible and get customers back on the road sooner.
Download the car wash business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Eco-Clean Car Wash will be able to offer the following advantages over their competition:
- The management team, car wash attendants, and car detailers will all provide exceptional service for every customer that comes in for a car wash. The attendants will be trained to employ a high attention to detail to ensure every vehicle is cleaned to perfection.
- Eco-Clean Car Wash strives to live up to its name. The company uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
- Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services such as vacuuming or window cleaning.
Marketing Plan
Brand & Value Proposition
Eco-Clean Car Wash will offer the unique value proposition to its clientele:
- Eco-Clean Car Wash uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
- Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing.
Promotions Strategy
The promotions strategy for Eco-Clean Car Wash is as follows:
Social Media Marketing
The company will invest in professional marketing services provided by a local marketing firm. Social media marketing will be one of the most effective and low-cost strategies for gaining brand awareness and increasing the company’s customer base. The marketing firm will help manage the social media presence by creating and updating various social media accounts such as Twitter, Instagram, Facebook, and TikTok.
Print Advertising
Eco-Clean Car Wash will invest in professionally designed print ads to display in flyers, newspapers, magazines, and direct-mailers.
Broadcast & Streaming Media Advertising
The company will invest in commercials to be played on broadcast networks, podcasts, and streaming services.
Website/SEO Marketing
Eco-Clean Car Wash will work with the same local marketing firm that created their social media strategy to also make the company website. The website will be well organized, informative, and list all the services and pricing options that Eco-Clean is able to provide. The website will also include information on all of the eco-friendly initiatives the company is implementing and ways customers can get involved. The marketing firm will also manage Eco-Clean’s website presence with SEO marketing tactics so that when someone types into the search engine “Boston car wash” or “car wash near me”, Eco-Clean Car Wash will be listed at the top of the search results.
Pricing
The pricing of Eco-Clean Car Wash will be premium. Customers come to Eco-Clean Wash for high quality eco-friendly washes and superior service. However, customers will also have the opportunity to receive steep discounts for participating in eco-friendly incentives and promotions.
Operations Plan
The following will be the operations plan for Eco-Clean Car Wash.
Operation Functions:
- Thomas Wright will be the Owner and Co-Manager of Eco-Clean Car Wash. He will oversee all finances, supplier relationships, and eco-initiatives for the company.
- Patrick Collins – Co-Manager who will be responsible for all car wash equipment inspections, car wash operations, and attendant training/management.
Eco-Clean will outsource many of its business functions including marketing, maintenance, and recruitment. The company will use business management software for customer relationship management (CRM), accounting/bookkeeping, and employee scheduling.
Download the car wash business plan template (including a customizable financial model) to your computer here <–
Milestones:
Eco-Clean Car Wash will have the following milestones complete in the next six months.
10/1/2022 – Finalize contract to purchase property.
10/15/2022 – Purchase car wash equipment and supplies.
11/1/2022 – Begin build-out of the car wash facility.
12/15/2022 – Begin recruiting and training car wash attendants.
1/22/2023 – Implement the marketing campaign.
2/1/2023 – Eco-Clean Car Wash opens for business.
Management Team
Eco-Clean Car Wash will be owned and operated by Thomas Wright. Thomas is a former car wash manager for another local car wash. He has gained valuable insights in how to run a car wash business during his time working for Clean & Dry Car Wash. Thomas is a graduate of the University of Boston with a Bachelor’s degree in Finance. He will be in charge of the finances, supplier relationships, and eco-initiatives for the company.
Thomas has recruited an experienced car wash attendant, Patrick Collins, to be his co-manager and oversee the maintenance of the equipment and handle the training and management of the car wash attendants. Patrick Collins has been the top performing car wash attendant at Clean & Dry Car Wash for over five years. Thomas relies strongly on Patrick’s diligence, attention to detail, and focus when providing car detailing services, inspecting equipment, and training car wash attendants.
Financial Plan
Key Revenue & Costs
The revenue drivers for Eco-Clean Car Wash are the car wash fees that will be charged to the customers in exchange for car wash and detailing services.
The cost drivers will be the overhead costs required in order to staff a car wash. The expenses will be the payroll cost, utilities, car wash supplies, and marketing materials.
Funding Requirements and Use of Funds
Eco-Clean Car Wash is seeking $350,000 in debt financing to launch its car wash business. The funding will be dedicated towards securing the property and purchasing car wash equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, utilities, and marketing expenses. The breakout of the funding is below:
- Property purchase and build-out: $200,000
- Car wash equipment and supplies: $40,000
- Three months of overhead expenses (payroll, utilities): $90,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the car wash business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of car washes per month: 2,000
- Average fees per month: $35,000
- Commercial property mortgage payment per year: $60,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Car Wash Business Plan FAQs
What Is a Car Wash Business Plan?
A car wash business plan is a plan to start and/or grow your car wash business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your car wash business plan using our Car Wash Business Plan Template here.
What are the Main Types of Car Wash Businesses?
There are a number of different kinds of car wash business, some examples include: Automatic or Tunnel Car Washes, In-bay Automatic Car Washes, Self-service, and Mobile Car Washes.
How Do You Get Funding for Your Car Wash Business Plan?
Car wash businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a car detailing business plan or a car washing business plan.
What are the Steps To Start a Car Wash Business?
Starting a car wash business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Car Wash Business Plan - The first step in starting a business is to create a detailed business plan for your car wash that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car wash business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car wash business is in compliance with local laws.
3. Register Your Car Wash Business - Once you have chosen a legal structure, the next step is to register your car wash business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your car wash business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Car Wash Equipment & Supplies - In order to start your car wash business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car wash business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful car wash business:
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Car Detailing Business Plan Template