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Car Wash Business

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How to Start a Car Wash Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on November 18, 2021 Updated on May 24, 2024

Investment range

$2,350 - $157,800

Revenue potential

$37,000 - $100,000 p.a.

Time to build

Profit potential

$20,000 - $55,000 p.a.

Industry trend

Some people love their cars (they really, really love their cars). They like them looking clean and perfect all the time. If you’re a car lover, you might lean toward starting a car wash business so that you can make everybody’s car shine. There’s real money to be made in car washing, as the industry boasts healthy profit margins.

Starting a business is rewarding, no doubt, but it also takes work and dedication. You need to begin with information so that you know what you’re getting into, and how to get started. This step-by-step guide will get you on the road to starting a profitable car wash business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its ups and downs, its pros and cons. You should carefully weigh them to determine if starting a car wash business is right for you.

• Constant demand — Cars will always need washing
• Profit potential — Steady income and strong margins
• Startup costs — Low compared to other auto businesses
• Seasonality — Car washing is much less frequent in colder months
• Maintenance — Maintaining your facility and equipment can be costly
• Competition — Most high-traffic areas will already have a car wash or two

Car Wash Industry Trends

The industry’s growth reflects consumers’ greater interest in car care and increased desire for convenience.

Industry Size and Growth

• Industry size and past growth — The US car wash industry is valued at more than $15 billion(( https://www.grandviewresearch.com/industry-analysis/us-car-wash-services-market )), about half of the $32.47 billion global market.(( https://www.grandviewresearch.com/industry-analysis/car-wash-service-market ))
• Growth forecast — The US market is predicted to expand nearly 6% annually through 2030.(( https://www.grandviewresearch.com/industry-analysis/us-car-wash-services-market ))
• Number of businesses — There were more than 60,000 car wash & detailing businesses in the US.(( https://www.ibisworld.com/united-states/market-research-reports/car-wash-auto-detailing-industry/#IndustryStatisticsAndTrends ))
• Number of people employed — These businesses employ more than 200,000 people.(( https://www.ibisworld.com/united-states/market-research-reports/car-wash-auto-detailing-industry/#IndustryStatisticsAndTrends ))

Trends and Challenges

• Increasing automation and use of sonar technology that senses the car’s size and adjusts accordingly
• The rising popularity of ceramic treatments to prevent beading and pooling
• Growing demand for sanitation and disinfection services
• Tough competition among the small operators in the industry
• High fuel prices are deterring road trips, which impact car wash services

What Kind of People Work in a Car Wash?

• Gender — 91% of car wash managers are male, while 9% are female.(( https://www.zippia.com/car-wash-manager-jobs/demographics/#gender-statistics ))
• Average level of education — 37% of car wash managers hold a bachelor’s degree and 26% have a high school diploma.(( https://www.zippia.com/car-wash-manager-jobs/demographics/#degree-level-types ))
• Average age — The average age of a car wash manager is 46 years old.(( https://www.zippia.com/car-wash-manager-jobs/demographics/#age-statistics ))

How Much Does It Cost to Start a Car Wash Business?

Startup costs will vary depending on the type of car wash you open. You can start a handwashing business for as little as $2,500 or an automated self-service wash for $150,000 or more. The main expenses on the high end are the facility and the machinery.

You’ll need a handful of items to successfully launch your car wash. Here’s a list to help you get started:

• Automated washing systems
• Chemicals for cleaning
• Car waxes, polishes, and accessories
• Dryers and vacuums
• Brushes and towels

How Much Can You Earn From a Car Wash Business?

The average cost of a car wash is about $4.50, while the average price is about $10, resulting in a 55% profit margin.

If you can do 15 car washes 250 days a year (3,750 total) at $10 each, you’ll have $37,000 in annual revenue and more than $20,000 in profit, assuming a 55% margin. As your brand gains recognition, you might do 10,000 car washes in a year and make $55,000 in profit.

What Barriers to Entry Are There?

There are very few barriers to entry for a car wash business. Your biggest challenges will be:

• Location — Finding a strong location with adequate infrastructure
• Expenses — Costs to start are high if you go the automated route
• Competition — Many areas are saturated with car washes

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Step 2: hone your idea.

Now that you know what’s involved in starting a car wash, it’s a good idea to hone your idea in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Look for an area of your city or town where there are few or no car washes or look for a type of car wash that is missing. You’re looking for market gaps that you can fill. Perhaps a full-service car wash with automation, vacuuming, and hand polishing services is not currently available, and you can fill that gap.

What? Define the Scope of Your Services

In addition to a basic car wash, you could offer:

• Interior and exterior detailing
• Waxing and polishing
• Tire shining and mat cleaning
• Free accessories, like air fresheners

You can offer various packages of services for different prices.

How Much Should You Charge for a Car Wash?

As mentioned above, your average car wash costs about $10. But with add-on services like waxing and detailing, a full-service wash can run as high as $40. Check car wash businesses in your area for their prices and offerings. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Knowing your target demographic will help you determine your service offerings as well as your marketing approach. If you want to launch a full-service car wash and command higher prices, your business should be located in a more high-end district. Your customers are likely to be aged 30 and above, so you might target them with ads on Facebook or Angie’s List.

Where? Choose Your Car Wash Location

Your location should be convenient and see a lot of car traffic and a lot of your target market. For example, if you’re going to have a hand-washing car wash with discount prices, you may want to be in an area with a younger demographic, like a university district.

Here are some factors to guide your decision:

• Traffic count — Choose a location with high vehicle traffic to ensure maximum visibility and potential customer base.
• Accessibility — The location should be easy to enter and exit for vehicles.
• Visibility — The site should be clearly visible from the main road and not obscured by other buildings or objects.
• Local competition — Analyze nearby competitors and their offerings.
• Demographics — Understand the local population’s income levels, habits, and preferences.
• Size and layout — Ensure the location is spacious enough for your operations, including queuing cars and equipment storage.
• Environmental considerations — Understand local water usage restrictions and waste disposal regulations.
• Local regulations — Check local zoning laws, permits, and regulations related to car wash businesses.
• Neighboring businesses — Look for complementary businesses nearby, such as gas stations, auto repair shops, or shopping centers.
• Safety — Ensure the location feels safe and well-lit, especially if offering services after dark.

Step 3: Brainstorm a Car Wash Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “car wash” or “waxing,” boosts SEO
• Choose a name that allows for expansion: “Foam & Shine Car Wash” over “Mobile Car Wash”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 320 unique car wash business name ideas here . If you want your business name to include specific keywords, you can also use our car wash business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Car Wash Business Plan

Here are the key components of a business plan:

• Executive summary — A concise overview of your car wash business, summarizing key aspects such as your mission, vision, and unique value proposition
• Business overview — Detailed information about the car wash industry, your specific business model, location, and any relevant background information
• Product and services — Clear descriptions of the car washing services you offer, including any additional services like detailing or specialty treatments
• Market analysis — Examination of the car wash market, including target demographics, local demand, and trends that could impact your business
• Competitive analysis — Evaluation of other car wash businesses in your area, highlighting strengths, weaknesses, opportunities, and threats to your venture
• Sales and marketing — Strategies for promoting your car wash, attracting customers, and retaining their loyalty through effective sales and marketing techniques
• Management team — Introductions to key members of your team, detailing their roles and qualifications, emphasizing their relevance to the success of the business
• Operations plan — Detailed plans for the day-to-day operations of your car wash, including workflow, equipment, and staffing requirements
• Financial plan — A comprehensive overview of your car wash’s financial projections, including startup costs, revenue forecasts, and profit margins
• Appendix — Supporting documents such as permits, licenses, resumes of key team members, or any additional information that strengthens your car wash business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to car washes. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your car wash will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. A corporation or an LLC can elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital — Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a car wash business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Car Wash Business Licenses and Permits

Starting a car wash business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you will need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your car wash business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet is vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. We examine several of them below.

You can use software for car wash businesses that provides point of sale (POS) and management tools such as Washify , ezWash , or Wash Systems .

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your website using SEO best practices for local car wash-related search terms and encourage satisfied customers to leave positive reviews to boost local visibility. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional branding — Ensure your branding reflects cleanliness, speed, and quality service, from your logo to your on-site signage.
• Direct outreach — Build partnerships with local businesses, car dealerships, and fleet operators to offer corporate deals or special service packages.
• Social media engagement — Use Facebook and Instagram to post before-and-after images, customer testimonials, and time-lapse videos of the car washing process.
• Car care tips blog — Publish articles on car maintenance, the benefits of regular car washing, and tips for protecting car paint.
• Customer spotlights — Highlight customer reviews and stories that showcase the convenience and quality of your services.
• Educational content — Create infographics on car care importance and videos about your eco-friendly car wash methods.
• On-site promotions — Host special event days at your location featuring discounts, demonstrations, and family-friendly activities.
• Partnerships with local businesses — Collaborate with nearby businesses for cross-promotions, offering discounts to each other’s customers.
• Email marketing — Keep in touch with customers through newsletters that offer car care tips, promotional deals, and news about new services or products.

Focus on USPs

Unique selling propositions, or USPs, are the unique characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your car wash meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your car wash business could be:

• Exceptionally fast service
• Comprehensive full-service for the perfect wash
• Budget-friendly wash at a discount price
• The best car accessories anywhere

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a car wash business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in a car wash for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in car wash services. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home-based office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a car wash business would include:

• Car washers — Vacuuming, cleaning, waxing, and detailing cars
• Receptionist — Welcoming customers, processing payments
• Office manager — Scheduling, ordering supplies, staff oversight
• Marketing lead — SEO, social media strategies

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn or Facebook. You can also use free classified sites like Jobs and AngelList. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Car Wash Business — Start Making Money!

A car wash has the potential to be a very profitable business once you grow a strong customer base. It’s an industry that always seems to be growing because most people don’t like to wash their own cars! 

You can start a basic handwashing car wash for very little money and eventually expand. If you differentiate yourself from the competition, you may even be able to franchise and build your own car wash empire. One way to do this is to invest in the latest technologies.

Now it’s time to start the engine on your car wash business! 

• Car Wash Business FAQs

You can start a car wash with a relatively small investment, around $2,000 for a hand-wash business. You could quickly make that money back and start earning a profit and grow your business into something much larger.

Your location is critical – you want a place that’s convenient with high visibility, in an area where you’ll find your target market. You also need unique selling points to stand out from the competition. A great marketing plan will also help to get you to profitability faster.

Finding the right location may take some time, as well as acquiring all the necessary equipment. You can probably count on it taking about 3 to 6 months to get an automated car wash business off the ground. For a hand-washing business, you could start washing cars within a few weeks.

Increase your car wash’s visibility with promotions, discounts, and loyalty programs. Boost your online presence through a well-maintained website and active social media, where you can post customer reviews and before-and-after photos.

Consider selling car care items like wax, cleaners, and towels, as well as snacks and beverages for waiting customers. Automotive accessories like organizers and sunshades, along with maintenance essentials like windshield wipers and motor oil, can also boost sales and enhance customer convenience.

The most profitable car washes focus on efficiency, high-quality service, and workflow optimization. They invest in advanced equipment and manage expenses well. Additionally, offering value-added services like detailing, express options, and memberships can boost customer spending and loyalty, enhancing profitability.

To differentiate your car wash business from competitors in the area, focus on providing unique value propositions and outstanding customer experiences. Emphasize factors such as superior cleaning quality, efficient service, environmentally friendly practices, or innovative technology.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Car Wash Business Name
• Create a Car Wash Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Car Wash Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Car Wash Business — Start Making Money!

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How to Open a Car Wash Business

Last Updated: December 5, 2023 Fact Checked

This article was co-authored by Angel Ricardo . Angel Ricardo is the owner of Ricardo's Mobile Auto Detail headquartered in Venice, California. With over 10 years of experience in mobile detailing, Angel continues to attend auto detailing trainings to improve his customer service and auto detailing skills. There are 14 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 1,047,245 times.

Opening a car wash business can be a fun, interesting, and profitable business for somebody with business smarts and perseverance. With the right location, good marketing, and top-notch service, you can draw in numerous customers who need their cars washed quickly, efficiently, and at a good price. However, opening a car wash business also requires a significant investment, good planning, and attention to detail in order to make your business profitable.

Planning Your Car Wash

• For example, people use car washes more when the economy is doing well and when motor vehicle sales are up. When people have more money to spend, they are more willing to pay for a car wash. Knowing the car sales statistics in your area could help you predict success for your business.
• Talk to car wash owners, car wash suppliers, and car wash equipment manufacturers. You want to understand the car wash business from all sides so you know what you are getting into.
• The International Carwash Association is a good resource to learn about the industry and the current trends. [2] X Research source
• In addition to doing some in person visits, it might help, at this point, to read some internet trend reports and business periodicals. Find out what the demographics are in your area and read up on how car wash businesses are doing in areas with similar demographics.
• Read some business publications, too, to find out what the newest materials and equipment are. The car wash industry is developing more energy efficient and environmentally friendly materials, so it's important to stay abreast of new developments.

• Take notes as you investigate the car washes. You can go back and review them as you make plans for your car wash.
• Also pay attention to the other businesses around the car washes. If a car wash has a high volume of customers, what are some of the factors that are contributing to this? Is it located in a busy shopping center or right off the highway?

• The introduction should include your Executive Summary, table of contents, and a cover page.
• Your market analysis demonstrates your knowledge of the car wash industry and the results of any market research and analysis that you have done. Who are your customers and what are their purchasing habits? What are the risks, strengths, and weaknesses involved with opening a car wash? What is your projected revenue based on the current market and future market trends?
• Your company description should include information about your car wash business and why you think it will be successful.
• The organization and management section should detail the structure of your company, the board of directors, and the qualifications of your management team.
• The marketing and sales portion should clearly outline your marketing strategy. How will you get customers? What avenues will you use to reach them? What is your overall sales strategy?
• The product or service section outlines exactly what you will be selling. How does your car wash business fill a void in the market? Why would people want to use your car wash as opposed to other car washes?
• The equity and funding section details exactly how much money you will need to start your business and what financial resources you already have to invest in the business.
• The financial information is the most important part of your business plan and should be reviewed by an accountant or financial planner. Include your personal financial information, any existing businesses you have, a list of debts, projected income for 5 years, and certification that your information was reviewed by a 3rd party financial adviser.

• A bank loan requires a loan-to-value ratio of 75%. You will need to come up with 25% of the fair market value and the bank will fund the other 75%. It will be harder for you to secure bank financing if you have never owned a business before.
• An SBA loan will either be a 7a or a 504. If you get a 7a loan, the SBA will partner with a local investor. Your actual loan will be financed by the local lender. A 504 loan is actually financed by the SBA and has job creation criteria.
• The start-up costs for a car wash range from $100,000 - $400,000.

• Your sign is visible to drivers for at least 40 seconds. Ideally, traffic should travel past at no more than 40 miles per hour (64 km/hr) so drivers have time to see your signage and make that split-second decision to have their cars washed.
• Choose a venue large enough to accommodate the bays, pump rooms, vacuum and drying areas, and the office.
• Check your city's zoning regulations to be sure you are allowed to open a car wash at your chosen location. If you need a special permit, obtain it before you buy or lease your venue.
• It is helpful to work with a real estate agent, city planner, lawyer, and/or an accountant to get the best deal on a location.

Opening Your Car Wash

• Ask your state business office about the insurance requirements for your car wash business.
• Once you get all of the necessary permits and licenses, keep track of your renewal dates and make a copy for your business records. You will also need to display your license in your car wash so that customers can see it.

• The International Carwash Association has a supplier guide to help you find reputable manufacturers.
• Look in trade magazines like Auto Laundry News and Modern Car Care to buy your chemicals. It is best to buy from big manufacturers. [7] X Research source
• Make sure the distributor of your equipment is available to service your equipment when needed. Find out how they handle equipment servicing before you buy from them.

• Social media is an important aspect of marketing these days. Set up a website and establish a presence on Twitter and Facebook. Make sure any of the paper items that you have include links to your website and social media accounts.
• Use your website to share information about taking care of your car and other relevant tips.
• Schedule a visit to your local radio station to discuss your new business.
• Consider starting a loyalty program. This will encourage repeat customers instead of people who use the coupon one time and never return.

• Invite friends, neighboring businesses, your supplies, and the media
• Give away free car washes and promotional items.

Running A Profitable Business

• Do I have enough space or will I need additional space?
• How much will it cost?
• What will be the return on my investment?
• Will people buy this service?

• It is important that you complete the detailing portion of your services is completed quickly. The speed and low cost of the service make it attractive to your customers.
• Make sure that you advertise your detailing services to your customers.
• Check the prices of similar services at a free-standing detail shop to help you determine your prices. Also, check the prices of other car washes in your area that offer these services so that you can be competitive.

• Choose a keyword (e.g. water, wash, clean) and advertise by saying, "Text water to 12345 to get special discounts, specials, or coupons." You could also say "Text 12345 to get $3 off your next car wash."
• It only costs one or two pennies to send a text message.
• Text your customers once a month with a special.

• Consider pricing your passes to cost 2 or 3 times the price of a single wash. If you find that customers are not interested, you may need to adjust your price.
• You can offer different price points based on the type of car washes you offer. For example, a monthly pass for basic car washes would be less expensive than a monthly pass for premium car washes.

Community Q&A

• Plan regular specials during off-peak hours to keep customers coming back. Thanks Helpful 2 Not Helpful 0
• Many of your customers will be local, so be sure to focus your marketing campaigns on your immediate area. Thanks Helpful 2 Not Helpful 0
• Be kind to others. Thanks Helpful 2 Not Helpful 1

You Might Also Like

• ↑ http://www.yellowpages.ca/tips/8-steps-to-starting-a-successful-car-wash-business/
• ↑ http://www.carwash.org/about-ica
• ↑ http://www.carwash.com/how-to-start-a-carwash-the-secrets-to-successful-carwash-ownership/
• ↑ https://www.sba.gov/content/what-state-licenses-and-permits-does-your-business-need
• ↑ https://www.sba.gov/blogs/how-find-right-license-and-permit-your-new-business
• ↑ Angel Ricardo. Auto Technician. Expert Interview. 1 October 2019.
• ↑ https://www.startingabiz.com/starting-a-car-wash-business/
• ↑ https://www.carwash.com/hiring-quality-conveyor-carwash-workers/
• ↑ https://www.indeed.com/hire/how-to-hire
• ↑ https://smallbusiness.chron.com/make-successful-grand-opening-event-19258.html
• ↑ http://www.bluetoad.com/publication/?i=249754#{ "issue_id":249754,"page":20}
• ↑ http://www.bluetoad.com/publication/?i=286923#{ "issue_id":286923,"page":32}
• ↑ http://www.bluetoad.com/publication/?i=276457#{ "issue_id":276457,"page":14}
• ↑ http://www.bluetoad.com/publication/?i=246415#{ "issue_id":246415,"page":18}

About This Article

To open a car wash business, start by applying for a loan from the Small Business Administration or a bank so you have the $100,000-$400,000 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. Then, choose a location for your car wash, bearing in mind that it should be easily visible from the road, and in an area with a high level of traffic. Additionally, you'll need to purchase car wash equipment and chemicals, including pressure washers, vacuums, waxes and soaps. For tips on how to write a business plan and how to run a profitable business, read on! Did this summary help you? Yes No

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How to Write a Business Plan for a Car Wash: Complete Guide

• February 16, 2023

👇 Check all our resources on car wash businesses 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a new car wash , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car wash business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors .

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car wash?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for your car wash?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the 5 main paragraphs:

• Business overview : introduce your car wash company: what is your business model (hand wash vs. automated car wash ; franchise vs. independent business), how many car wash bays will you operate, how many employees will you have, where will the car wash be located, etc.
• Market overview : briefly analyze the car wash industry in your service radius (area), your competitors and target customers (average income, demographic distribution, etc.). One important question you must answer here is how big is your target market is . Also outline the specific problems in your service area that you intend to solve and how you differ vs. competition
• Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

2. Business Overview

The Business Overview segment of your car wash business plan will introduce your company and try to answer some important questions that potential investors and lenders may have. Here is a sample list of questions that you must try to address in the company overview section:

• Why are you opening a car wash service?
• Where is your shop located? Why did you choose that location?
• What services will your offer?
• What will be your pricing strategy ?
• What will be your operating hours?
• Who is your target audience ?
• How many car wash bays will you operate?
• What will be the legal structure of your company?

a) History of the Project

Any business must have three components:

• Passion & experience of the business owner
• The rationale behind you starting this business today

Passion & Experience

You must be passionate about the business and demonstrate the same to the potential lenders and/or investors through the business plan.

Also, you must have some experience or training in this type of business. For example, you might have been a senior manager at a car wash in the past and want to build your own today.

The business must try to resolve some issues in its current area of operation. For instance, there may not be any 24×7 car wash facility in the area or maybe there are no full-service car wash facilities nearby and your company will resolve that problem.

b) Business Model

Describe the business model that you will adopt in this sub-section. Try and answer some questions like:

• Will you acquire an existing car wash facility, a franchise? Or will you start your own car wash business from scratch?
• What type of car wash is it (full-service, automated, self-service, hand wash, etc.)?

For example, here are a few examples of the different types of car wash:

• Full-service car wash : This vehicle wash is the most thorough. The automobile will have its outside cleaned, the inside of its windows washed, and its inside vacuumed. Customers wait in the waiting area
• Self-service car wash : There are self-service car washes in practically every town for those who enjoy washing their own vehicle. These car washes allow customers to wash their own vehicle anyway they choose with high-quality solutions and brushes and wands
• Brushless car wash : The phrase “brushless car wash” is used in the industry to describe vehicle washes that use soft cloth pads as equipment. Because they are gentle on a car’s surface, cloth and more recent synthetic variants of cloth are frequently utilized, and regular brushless car washing greatly reduces the risk of paint oxidation
• In-bay touchless automatic car wash : This is a reference to the touchless car washes that may frequently be seen at convenience stores and gas stations. When using a touchless in-bay automated car wash, you pull your vehicle into a bay as directed by the LED signs, and the machinery works its way around your vehicle to clean it using carefully formulated detergents and pressurized water streams

c) Pricing Strategy

Explain the pricing strategy of all your car wash services in this segment. Essentially, you must provide an estimated price range for specific services.

We strongly recommend you include here a pricing list for the products and services that you will offer. You don’t need to provide precise numbers. Average pricing will do.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

d) Legal Structure

Finally, your business overview section should specify what is your company’s legal structure.

Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if you want to open a brushless car wash facility, which happens to be the only facility of its kind in the area, it makes sense.

Similarly, if your car wash facility is a self-service facility in an area with a high percentage of white-collar workers and mothers with children (who generally prefer conveyor facilities over self-service facilities), the business will not succeed.

Therefore, you must cover 2 important areas in the market overview section of your business plan,:

• Market trends : how big is the car wash industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : what is your target audience (customers)? What type of cars do they have? How much do they spend on car wash services per year?

a) Car Wash Industry Status Quo

How big is the car wash industry in the us.

The US car wash industry is estimated at $13 billion in 2021 , and is expected to grow at 3.1% from 2022 to 2030. Factors driving market growth include stringent environmental regulations that restrict residential car washing in some states.

How big is the car wash industry in your area?

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market .

To give you an example, let’s assume you plan to operate in an area where there are already 30 car wash businesses:

As we know, the US car wash industry is worth $13 billion today, and there are about 60,000 car wash businesses across the US. This means the average annual turnover per car wash is around $220,000. Now, we can safely assume that the car wash industry is worth $6.5 million in your area .

How fast is the car wash industry growing in your area?

Growth is an important metric for assessing the status of the car wash industry in your region. 

Here if you don’t find information online or via your research, you can calculate growth using the total number of competitors in your area. 

For example, assuming there were 25 competitors in the region in 2018, and 30 in 2022, the car wash industry growth rate in your area is about 5% per year .

What are the current car wash market trends in your area?

It is vital to understand the car wash trends in your target location because it will allow you to come up with effective marketing strategies . 

The best way to perform your research will be to talk with your potential customers. Also, you can study competing car wash facilities to get an idea of the type of customers they receive, the services they provide, etc.

Some common questions you may ask the target audience include:

• What type of car wash facility do they want?
• How many vehicles do they have in a family?
• How frequently do they avail car wash services?

b) Competition overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their products and services, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Car Wash SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : 5 years of experience in full-service and brushless car wash; eco-friendly and bio-degradable chemicals cycled through water reclamation system’s purification system; a team of highly specialized team with experience in equipment, etc.
• Weaknesses : Startup costs, no initial reputation / brand image
• Opportunities : High percentage of resident car owners and located close to businesses with delivery and company cars
• Threats : Established competitors with large existing customer base and years of operational experience

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

c) Customer analysis

This is a section where you should provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Number of vehicles per family
• Average monthly income and disposable income
• Average annual spend on car wash service per household
• Social group preferences and distribution
• Inclination towards loyalty programs & free perks

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and the needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost ?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do car wash companies use?

A few marketing channels that car wash facilities typically use are:

• PPC ads, Facebook ads, etc.
• Print media
• Direct ZIP code mailing
• Innovative TV & radio ads
• Loyalty programs
• Word of mouth
• Local listing
• Cross promotion together with nearby local businesses

It is not necessary to use all channels. You can start by focusing on a few of them initially and expand later on.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing may lead to investors losing confidence.

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Convenience : 24×7 automated car wash – no more rush hours
• Price match : Find a lower price in 20-mile radius and we will match it
• Freebies : Enjoy free Wi-Fi, TV, and coffee while you wait

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car wash business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the car wash facility you are proposing. If they have specialized training and education (such as car wash chemistry, equipment maintenance, equipment control, etc.), add that information.

Organization Structure

Even if you haven’t already hired a service manager, coordinators, sales & customer service, administrative assistant, receptionists, etc., you must provide a flowchart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car wash is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to start a new car wash business, or add a few car wash bays, etc.)
• The 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For an auto repair business, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

• Lease deposit or loan downpayment for the real estate
• The car wash bay
• Other car wash equipment

Assuming you do not buy the land and the building but decide to rent instead, it costs on average $50,000 to $150,000 depending on the type of car wash you operate. For more information on how much it costs to open and run a car wash, read our complete guide here .

c) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your car wash.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics and KPIs , key assumptions and benchmarks used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of cars you service over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of members as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your car wash . Now that we have explained what type of car wash services your company would offer, at what price, your marketing strategy, management and people, this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations? Or will it cover the cost of the salaries of your childcare staff and other employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car wash financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How to Start a Car Wash Business: The Ultimate Guide

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There are plenty of reasons why a budding entrepreneur might want to know how to start a car wash business. Car washes are in high demand: More than 2 billion take place each year in North America alone, and more than 72% of people report going to a car wash versus washing their own vehicle at home.

There’s more to a car wash business than merely making vehicles sparkle on the outside, too. The services car washes can provide range from washes to detailing and waxing to vacuuming and more. With so much to offer, starting a car wash business can provide an entrepreneur with a worthwhile business opportunity that can create steady revenue streams — if they take the right steps.

How to start a car wash business

If you’ve ever wondered how to start a car wash business, you’re far from the only one. There are pros and cons to starting your own car wash business of course, and plenty of financial considerations you’ll have to factor in. But if the math adds up for you, starting a car wash could be a great opportunity to be your own boss (and make the town’s vehicles sparkle, too). Here’s how to get started.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 1: Write your business plan

No matter the industry, opportunity, or location you have in mind for a new company, you have to start with a robust business plan before getting your operation off the ground. A business plan outlines your aspirations for your company, financial projections about the costs involved, industry research, and more.

In fact, a solid business plan does much more than just detail how you plan to get your company off the ground. It also provides you with a general roadmap for how you will run your business on an ongoing basis as well. Think of a business plan as your template for beginning your business and keeping it focused on a specific goal (or goals) after it takes off. You may even want to update your business plan from time to time so it reflects the changing goals and financial needs of your business.

Last but not least, you’ll likely need a solid business plan for financing and small business loan applications as well. Lenders want to know what your business is about, how it makes money, and what your overall vision for the enterprise is. Business plans make it easier for lenders to get this information in one helpful guide, which, in turn, makes it easier for you to make a compelling argument for why you need the financing you seek.

Developing a robust business plan doesn’t have to be a difficult undertaking, either. This is true even if you’re not the most confident writer or a math prodigy. Your typical business plan follows a conventional format. In fact, there are even business plan templates out there to make the process even easier.

Step 2: Get your car wash business registered

Once you’ve got your car wash business plan drafted, you’re going to want to get your company off the ground. But before you can dive in, you’ll need to take care of some additional preparatory work. Some elements of this are obvious, such as coming up with a business name. Other parts are a bit more complex, such as registering your business entity with the state and getting a federal tax identification number. Here’s what you need to know and what to do in order to get your business on the right side of the law.

Set up a business entity

Before you get busy washing and detailing vehicles, you’ll need to set up a business entity to make sure you’re operating within the full regulatory requirements of the town and state in which your business will be based. There are several kinds of business entities, each with different advantages depending on your operating circumstances and needs.

A limited liability corporation (LLC) is a popular option for most kinds of businesses. LLCs make it easy to set up your business, pay taxes, and give your personal assets some distance from your business’s financial operations. Plus, you can determine how you pay business taxes as well—even opting to pay them as part of your personal tax returns if you so choose.

On the more complex end of the spectrum are S-corps and C-corps, which both allow for more control over how a business pays taxes (but require a more complex governance structure and more rules about how business owners can pay themselves).

Step 3: Obtain business licenses

Every municipality is different when it comes to licenses and permits for businesses. It’s crucial to register for each if your location requires them, as they help enforce a set of standard practices between businesses. Perhaps more importantly, your state or town could shut down your business if you don’t have them. Remember that ignorance of the law is no excuse for not following the law: Be sure to check with your local secretary of state’s office or chamber of commerce to make sure you have everything you need. The SBA is another helpful resource to make sure you have all the licenses and permits you need.

One specific consideration for car wash businesses are regulations around waste containment and mitigation. Most states and local governments place strict rules on car washes aimed at controlling their waste water and grit-trap waste disposal, the air emissions allowed from customers’ cars, and the proper storage of fuel tanks. Operating a car wash is an inherently dirty business, and often requires the use of harsh chemicals. These rules help dictate what kinds of mitigation efforts are required for your business to reduce environmental harm.

Step 4: Get business insurance

Just about every kind of entrepreneurial effort benefits from having comprehensive small business insurance. The kind of insurance, as well as the breadth of your policy, depends largely on the kind of company you operate.

In the case of car wash businesses, there is a ton that can go wrong—and in the event of an accident or damage to a customer’s vehicle, you’re going to want to make sure your insurance can pick up a big portion of the bill. You’ll want to make sure your car wash business has good general liability and workers compensation insurance, at the very least. Talk to a business insurance agent or business lawyer for more specific information about your individual needs.

Step 5: Separate your business finances

Once you’ve set up your business registration, obtained any required licenses, and have insurance in the works, your next step toward starting a car wash business is setting up your company’s finances. The first step is making sure that your company has its own business checking account , so that you’re able to keep your business and personal finances separate.

You might be wondering why it’s so important to keep business and personal finances separate. After all, the business is your business, right? Well, there’s more to it than that. You’ll need a business bank account in order to protect your personal assets. If you operate as an LLC, separate business banking accounts will prevent creditors (and, in the event of legal action, those who sue you) from being able to come after your personal assets as well as those of your business. Plus, having separate business accounts will make it easier for you to keep track of your company’s financial performance, pay taxes, and track your cash flow.

Once you have a business bank account, you’ll also want to find the best business credit card for your needs. You’ll use this card for all of your business-related spending, and depending on which one you choose, you can also receive cash back, travel rewards, 0% introductory APR, and more to help make the most of your money.

Step 6: Consider small business financing needs

Buying the machinery needed to operate a car wash can be expensive. So can keeping everything in working order on a regular basis. The equipment involved in most car wash businesses can cost more than $30,000 for a touchless system, and even more basic setups can still cost several thousands of dollars. Whether you choose to buy or rent your equipment, you may still find yourself in need of financing to get everything that comes along with getting your car wash business off the ground.

Thankfully, there are plenty of financing options out there that can make it a little more affordable to get your car wash up and running. Whether you need one large loan, rolling credit for incremental purchases, or financing that’s designed to help you buy equipment, there’s a solution out there.

If you’re able to get a Small Business Administration loan , more commonly known as an SBA loan, you’re in luck. These types of loans provide large sums of cash to qualified applicants at low interest rates and with generous repayment periods.

This can be an excellent option for small business owners who have an existing track record of success with other business undertakings, have good credit, and can show that their business will be viable over the long term. One of the most popular SBA loan options is the SBA 7(a) loan program. These loans can total up to $5 million, and can be used to raise working capital, refinance other loans, or even renovate your business.

Another type of loan, the SBA 504/CDC loan, on the other hand, is designed to help small businesses purchase large, expensive items that they might need for their operations, or even for things like commercial properties. This can be particularly helpful for car wash businesses, as much of the requisite machinery tends to be on the expensive side (and most certainly qualifies for the conditions of this loan program). You can borrow up to $5.5 million through this program, and have anywhere from 10 to 20 years to pay back what you borrowed.

Finally, the SBA microloan program can be a great option for new or smaller-sized businesses that need loans up to $50,000. These loans are great for companies that need smaller sums of cash to get themselves off the ground. Plus, borrowers can take up to six years to repay what they’ve borrowed, which is better than other non-SBA loans in most situations.

Business term loans

Getting approved for an SBA loan can be a pretty difficult thing for most small business owners to accomplish. That doesn’t mean that you’re out of luck with regard to getting small business financing, though. Another great option for accessing the funds you need to help move your car wash business forward is a business term loan .

Term loans provide borrowers with a lump sum of cash that they can use for appropriate business purposes. Your business may be a decent candidate as long as it’s been in business for a while, and both you and your company have a good credit score. The interest rate, payout terms, and the amount of money your lender provides will between applicants and businesses.

Equipment financing

Similar to the SBA 504/CDC loans, equipment financing can also help you obtain the money you need in order to purchase equipment and machinery that you may need to operate your car wash. These loans provide an attractive option to small business owners who may not have enough of a credit history, time in operation, or have bad credit. Instead of basing the loan approval on the track record of the borrower, equipment financing provides an alternative model for serving loans.

Borrowers approach their lender with the price of a piece of equipment, and the lender then provides the small business owner with the money needed in order to make the purchase. The borrower then pays back the loan, plus interest, over a set period of time. If the borrower can’t make payments, the lender will repossess the equipment purchased with the loan. This means you don’t have to offer up collateral to get the money you need, either, which can be great for businesses that are low on cash but big on financing needs.

Start Your Dream Business

The bottom line

There are plenty of boxes to check off when you’re starting your car wash business. But, taking the time to do it right is crucial. You’ll save yourself the headache of doing more paperwork when you’re knee-deep in running daily operations, and will prime yourself for success down the road too.

Knowing how you intend to operate your business, what your financial needs are, and how you’re going to satisfy them all can put you at a distinct advantage.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Car Wash Business Plan Template

Written by Dave Lavinsky

Car Wash Business Plan

You’ve come to the right place to create your Car Wash business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their car washes.

Below is a template to help you create each section of your Car Wash business plan.

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.

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

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.

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:

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.

Competitive Advantage

Eco-Clean Car Wash will be able to offer the following advantages over their competition:

• 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.

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.

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.

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

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, balance sheet, cash flow statement, 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:

• How to Start a Car Wash Business

Other Helpful Business Plan Templates

Franchise Business Plan Template Car Detailing Business Plan Template

• +1 (833) NCS-WASH

How To Start a Car Wash Business: An Expert’s Guide

The U.S. car wash services market ended 2021 with a value of $14.67 billion , and it is expected to grow at an annual growth rate of 5.5% from 2022 to 2030. With more than 8 million cars visiting professional car washing services daily, starting a car wash business can be a fruitful venture. Below you’ll find seven essential steps that will show you how to start a car wash business.

Starting a Car Wash Business in 7 Steps

1. research the types of car washes you could operate.

Your first critical step to starting a car wash business is understanding the different car wash operations. There are both automatic and self-service car washes. An automatic car wash uses machinery to do most of the hard work, meaning the cars get washed with little to no human intervention. A self-service car wash, also known as a manual car wash, is one where the car owner or employee use tools and equipment to wash the cars themselves. 

More types  of car washes include:

• In-bay car washes are structures where the vehicle enters and remains stationary while machinery moves around it to perform the wash. 
• Tunnel car washes have the vehicle move through large, stationary wash equipment. Usually, the vehicle is placed in neutral and then moved along a conveyor belt through the wash. 
• Touchless car washes use powerful chemicals and high water pressure to clean cars.
• Friction car washes clean cars using brushes and cloths that spin and rotate to provide friction against the car’s surface.

2. Draft a Solid Business Plan

Every potential business owner should start with a business plan. A traditional business plan  includes an executive summary, a company description, a market analysis, organization and management details, service and product line information, market and sales plans, location options, and financial plans. 

3. Form a Legal Business Entity and Obtain the Necessary Business Licenses

Once you have a solid car wash business plan, it’s time to decide which type of business entity your car wash will be. The different types  of business entities are:

• Sole Proprietorship 
• Partnership
• Corporation 
• S Corporation 
• Limited Liability Company (LLC)

Once you select a business entity structure, you’ll need to complete the business registration process and register your car wash name with the state where it will reside. Next, you need to get a federal Tax ID number which essentially acts as a Social Security number for your business. 

The next important legal step for your car wash business is to obtain the required permits and licenses . Virtually any business will need a general business license. From there, your building will need an occupancy license to state that your facility is safe for employees and customers to use. 

Since car washes handle wastewater that can pollute the surrounding environment, your car wash business will need to obtain an environmental permit. This permit will ensure that your business’s wastewater is treated correctly and disposed of to minimize environmental impact. 

With customers’ vehicles in your care, you’ll want to purchase insurance for your car wash business. Depending on your business structure, there are several types of business insurance you may need: 

• General liability 
• Garage keeper liability 
• Commercial property insurance 
• Workers’ compensation 

4. Estimate Your Startup Costs and Obtain Business Financing

The costs associated with starting a car wash business vary drastically. Traditional car wash businesses, like those that exist at a commercial location, can cost anywhere from $500,000 to $3 million or more to start. It depends on if you are buying land and building a completely new structure for your car wash business, you are purchasing a pre-existing car wash, or you are renovating an existing structure that meets the demands of a car wash location. 

When determining a startup budget, you’ll want to consider the costs associated with the licenses, permits, and insurance listed above. In addition to those business expenses, you’ll need to budget for cleaning supplies, equipment and parts , building and land costs, initial marketing materials, and personnel.

How will you obtain the money to start your car wash business? Well, there are a few business financing options :

• Loans:  You can obtain a bank loan or a U.S. Small Business Administration Loan if you meet the qualifications.
• Business line of credit and credit cards:  This is a relatively flexible way to borrow money on an as-needed basis. 
• Business grants:  Grants are appealing as they provide funds you do not have to pay back. Most grants are highly competitive and have specific requirements. 

5. Purchase Top-quality Equipment and Supplies

Choosing reliable and top-quality car wash equipment and parts will be key to the longevity of your car wash business. A car wash will need various brushes, chemicals, parts, and tech supplies to function at its best. Always partner with a reliable, experienced supplier for equipment and parts. Avoid trouble down the line by having a partner with a robust service network.

6. Construct Your Car Wash

Building a car wash is a challenging undertaking. It’s a good idea to start by taking some educational courses  to understand the logistics behind car wash construction and maintenance. 

7. Attract Customers With an Effective Marketing Strategy

As with any business, marketing is vital to achieving long-term financial success. Ensure your car wash business’ Google Business Profile is up to date with accurate contact information and develop a strategy to be present online via a website and social media. 

In addition to these basic marketing strategies, car wash businesses can benefit from loyalty program marketing (monthly or annual memberships), customer referral marketing, and getting involved in their city’s communities.

Here To Help You Build and Maintain a Successful Car Wash Business

Each of these seven steps comes with a multitude of nuances and details you’ll have to work through to build your car wash business. Thankfully, you don’t have to go it alone. National Carwash Solutions (NCS) is an industry-leading car wash solution provider with decades of carwash experience. NCS is ready to help you build and maintain a thriving car wash business by offering high-quality products, top-notch service, and plenty of educational resources. Contact NCS  today. 

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Quick Links

How to Start a Car Wash

Some people are naturally attracted to this business. They like to see clean cars and they like working to make cars look clean. A Car Wash can be a rewarding and profitable business that with enough effort and knowledge, anyone can learn how to run one.

Learn how to start your own Car Wash and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a car wash by following these 10 steps:

• Plan your Car Wash
• Form your Car Wash into a Legal Entity
• Register your Car Wash for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Car Wash
• Get the Necessary Permits & Licenses for your Car Wash
• Get Car Wash Insurance
• Define your Car Wash Brand
• Create your Car Wash Website
• Set up your Business Phone System

We have put together this simple guide to starting your car wash. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Car Wash Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your car wash?

Business name generator, what are the costs involved in opening a car wash.

The costs involved in starting this business depend on the level you want to operate.

Level One – Hand Car Washing

Anyone who can afford a few hundred dollars can start at this level. You will need:

• A water supply (monthly cost is $20+)
• Buckets - $10 each
• Sponges - $10
• Window Squeegees - $10 each
• Chamois - $10 each
• Industrial Wet/Dry Vacuum - $100
• Promotional Flyers - $50
• Signage - $75
• Shade Cover - $150

Level Two – Self-Service Car Wash

This type of operation requires a significant investment of up to $200,000 or more depending on the location. You will need:

• Self-Service Car Wash Equipment - $50,000
• Car Wash Shed Building - $100,000
• Lease Payment and Deposits - Allow $5 per square foot. For example, a 1,000 square feet facility would typically require $5,000 per month rent and a $10,000 security deposit.
• Signage - $2,500

Level Three – Car Detailing

Some automatic car washes and touchless car washes offer car detailing as an enhanced service. However, it is also possible to operate a car detailing business independently and do all the work by hand. The startup investment for an independent car detailing business is similar to a hand-washing business, except because you will offer more services you will need additional supplies and perhaps helpers. You will need:

• Car Wax - $25
• Water Repellant - $35
• Armor All - $50 (used for treatment of tires and other surfaces)
• Window Cleaner - $25
• Leather Restorer - $30
• Air Freshener - $20
• Chrome Polish -$25
• Pressure-Wash Cleaning Equipment - $500 (used to clean the engines and undercarriages)

Level Four – Automatic Car Wash

This type of operation requires a significant investment of up to $500,000. It is a much bigger facility than a self-service car wash. You will need:

• Automatic Car Washing Equipment - $250,000
• Car Wash Building Construction - $200,000
• Lease Payment and Deposits - Allow $5 per square foot. For example, a 5,000 square feet facility would typically require $25,000 per month rent and a $50,000 security deposit.
• Signage - $5,000

Level Five – Touchless Washing

This is the highest level of car washing that uses automated equipment with lots of hands-on workers. Luxury vehicle owners are especially attracted to this type of car wash because nothing except human hands and soft clothes touches the car. These facilities can easily cost up to $1 million or more to start and many find it easier to buy an existing one rather than create a new one. You will need:

• Touchless Car Washing Equipment - $250,000
• Car Wash Building Construction - $500,000
• Lease Payment and Deposits - Allow $5 per square foot. For example, a 15,000 square feet facility would typically require $45,000 per month rent and a $90,000 security deposit.
• Signage - $25,000

If you are going to open a commercial car wash you will need to make a significant investment in the equipment needed to operate the car wash. The best places to have a commercial car wash are on very heavily used streets with lots of auto traffic passing by. This means the rent will be a very substantial expense.

Car washes need to have plenty of space for the cars to pass through the washing system and for them to be parked while they are being dried by hand to make each car ready. Typical car wash lots are at least 5,000 to 10,000 square feet and rent for a minimum of $10,000 to $50,000 per month. To be really successful operating a commercial car wash, you will need to do at least 100 cars per day at an average profit of $10 each per car.

What are the ongoing expenses for a car wash?

Water is really expensive, especially in places like California where the water is in short supply. Reclaiming water is important. This requires capturing the water and pumping it through a filtration system to clean it before it is used again.

Automatic car washes use a lot of electricity as well. Labor is paid at the minimum wage because the workers also get tips.

The expenses depend on the number of cars you wash per month.

To wash about 50 cars your monthly expenses will be:

• Water - $20+
• Replace worn out sponges/equipment - $25 to $50
• Flyers - $50

Your expenses will be water, supplies, electricity, rent, and the cost of maintenance of the equipment. This averages in total to be about $5,000 to $7,000 per month.

If you work independently your expenses will be similar to hand washing of about $135 per month, except you need to allow for additional supplies of $150 per month. You may have to pay a commission and/or a fee to have an association with another business.

Level Four and Five – Automatic and Touchless Car Wash

Your monthly expenses for this type of operation will include the following:

• Rent - $10,000 to $25,000 per month
• Labor- $5,000 to $12,000 per month
• Water - $2,000 to $3,000 per month (depending on the part of USA)
• Supplies - $2,500 per month
• Electricity - $3,000 to $5,000 per month

Who is the target market?

The best customers are the ones that return weekly to get a car wash. Many car wash companies give a free wash after a certain number of washes to get customers to come back again and again.

How does a car wash make money?

Each car wash has a basic charge and there are typically additional things that can be requested by clients, such as using auto freshener or wax that are sold for an additional charge. Detailing is the most expensive because of all the additional services provided.

The average price for a simple hand car wash is $5 to $7. For self-service systems, the charge is usually $1 to $2 for a 15-minute use of the washing equipment. Vacuum charges are about the same. The average customer might spend $2 to $4.

For automatic car wash systems, the average charge is $10. Most customers like to add some extras and can pay as much as $15 for a wash with the extras of interior cleaning, freshener, tire treatment, and the application of car wax.

Touchless wash is about $20 per car and with some extras added on the charge can go up to about $30 per car. Car detailing is the most expensive and the customers pay about $50 to $150 per car.

How much profit can a car wash make?

• About $7 per car
• About $3 per car
• About $50 to $75 per car
• About $10 to $15 per car

Level Five – Touchless Car Wash

• About $12 to $18 per car

An automatic car wash operating at 100 cars per day at the average price of $10 per car will make $1,000 in gross profits per day. Labor will cost about $60 per hour so for an eight-hour shift that is $480 plus $120 more for employment taxes paid by the employer. Electricity will be about $200 per day and water about $75 per day and supplies about $25 per day. Insurance will cost $2,000 to $3,000 per month. Taking these expenses into consideration gross profits per day would be about $220 per day.

The owner of a modestly successful commercial car was would make around $6,600 per month in profits after paying all the expenses. In really busy areas, it is possible to make up to ten times this amount.

How can you make your business more profitable?

• Also advance from simple hand-washing to offer car detailing as well.
• Open in multiple locations and create brand awareness.
• Contract for providing service to customers of high-end luxury hotels and luxury auto dealerships.
• There is an excellent opportunity to sell additional items to clients who are waiting for their car wash to be finished. One terrific and very successful idea is to have a drop-off dry cleaning and laundry service associated with a car wash.
• Offering fast food is another revenue source. The typical car wash customer, using an automatic or touchless car wash, is waiting for about 15 minutes at a minimum for their car to be washed. This is an excellent time to sell them other things.
• Making deals with auto dealerships to wash cars at night is a great way to make extra money. Typically, the public is not looking for a car wash at night. However, car companies and auto rental places need to have cars washed at all times of the day and night. This is a great deal to seek for extra income if there are such dealerships and car rental places nearby.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your car wash is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In accordance with the Clean Water Act of 1972, car washes must obtain a wastewater permit from the NPDES. A list of state specific regulations can be found here .

• Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Labor Safety Requirements

It is important to comply with all Occupational Safety and Health Administration requirements.

Relevant regulations include:

• Appropriate hazard identification
• Injury reports
• Proper safety precautions when operating potentially dangerous equipment

Certificate of Occupancy

A car wash is generally run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a car wash business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your car wash business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Car Wash needs and how much it will cost you by reading our guide Business Insurance for Car Wash.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a car wash

Your best promotion will be receiving positive word-of-mouth referrals from existing customers. Giving them a discount card to hand out to their friends and business associates is a really good idea. Distributing flyers in the local area and walking around to do a “meet and greet” with local residents and businesses is an excellent way to find new customers. Offering to collaborate with another business such as a restaurant or a parking lot is another way to create new business.

Staying open 24-hours with bright signage when located on a busy thoroughfare is the best way to attract business to this kind of operation. People are attracted to use these services by seeing them when they drive by.

For this type of business, you will be looking for customers that have luxury vehicles. One excellent way to promote your services is to create an affiliation with a five-star hotel and offer the car detailing to guests. You will make their cars look perfect overnight and ready the next day as sparkling clean.

These businesses use different equipment; however, the promotional methods are the same.

How to keep customers coming back

Asking existing customers to spread the word about your services by giving them a discount coupon to give to their friends is an effective marketing method. Register the discount cards, which are numbered, to the person you give them to. If someone uses the numbered discount coupon, the registered person gets a free wash.

Loyalty programs work very well. Issuing a reward card for the number of washes and giving a free wash after a certain number of paid washes is a terrific way to keep customers loyal. Giving rewards to customers that come back for repeat business is a really good idea.

In dirty environments, such as big metropolitan cities or winter road conditions that throw destructive salt up to the undercarriage, a car wash is needed about once per week. This means that a single customer that returns once per week for a year will be a very valuable customer.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Let us share a real-life story about a man who came to America as a refugee from Myanmar. He was a fairly wealthy businessman in Myanmar and became successful selling the delicacy of bird eggs. The government got jealous of his success and literally took his business from him. He left Myanmar with almost nothing.

When he arrived in the USA, he took a job as a dishwasher at a fancy restaurant. He could not even speak English, but he washed the dishes so well the owner was very impressed. On a lark, the owner, using sign language, showed him the owner’s car and asked him to wash it.

Because the man was previously wealthy in Myanmar and he had a nice car there, which is an incredible luxury for a person in such a poor country, he took very good care of it. In the past, he washed his own car so well and when asked to wash the restaurant owner’s car he washed it with the same enthusiasm. The results were spectacular and the owner was very happy.

In this fine restaurant, the customers would drive up and give the keys to the valet to park their car. Normally they would stay having dinner for two or three hours. This man from Myanmar asked the owner using sign language if he could wash the customer’s cars.

The restaurant owner immediately recognized the opportunity to make his customers so impressed. They could have a dinner and have a hand car wash done while they were eating. He immediately set up the special offer to give a free car wash for the diners. He also took the man from Myanmar off of washing dishes and told him to concentrate on washing the cars of the customers.

Of course, the customers paid a nice tip to the valet for parking the car and paid an even better tip for a perfectly clean and washed car. The man from Myanmar got to share in the tips and the restaurant became even more popular. The reason for telling this story is the only real requirement that you need to enter this business is to love washing cars.

By the way, the man from Myanmar is a real man. He went on to learn English and built up his efforts to wash cars. He now owns two professional car washes in California and he became a multi-millionaire from this effort. His name is Mr. Tan and his car washes are named after him. It all starts with loving to wash cars. You can do this also if you like to make cars look great!

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a car wash?

Get the supplies. Turn the water on. Get the equipment ready and make sure the helpers show up. If you need inspiration play this song, Car Wash .

• You will want to make sure you will have some cars to wash. The way to get customers is to locate on a busy street or have an affiliation with other businesses. You may spend some daily time looking for other opportunities to find cars to wash.
• You will check to make sure there are enough supplies. You will make sure the water connection is working. If you have helpers. you will supervise their efforts.
• Each day you will need to make sure all the equipment is functioning properly and there are enough soap and wax supplies to feed the systems. You will remove the coins from the coin boxes to collect the money made from the day before. You will fill the bill changer with coins to make sure the customers can get the change they need to use the system. You will make sure the facilities are clean and attractive to potential customers.
• This can be either an independent business or operated in association with a professional car wash. Car detailing includes not only washing and waxing the car but also bringing the interior back to pristine condition. The main thing you will do each day is to make sure you have enough supplies and if you use helpers you will make sure they show up on time to take care of the clients.

Level Four – Automatic Washing

• These systems are the most common form of car washing. The simple ones will be offered as part of a gas station. Your daily duties will be to check that the equipment is working properly and replace any worn out parts, such as brushes, with new ones. You will check to make sure there are adequate supplies that are needed for the operations such as soap and liquid wax.
• If payment can be made by coins or bills at the entry point, you will remove money from the collection device for deposit to the bank.
• Touchless washing combines an automated system to do the rough washing with many employees to do the final cleaning. Besides checking the equipment for proper operation and making sure you have enough supplies, the main part of your job is to make sure there is enough staff on hand to help process all the cars that come through. A successful system may wash 200 to 300 cars per day.

What are some skills and experiences that will help you build a successful car wash?

Being a gregarious person helps when looking for customers for hand-washing or detailing services. For self-serve, automated, and touchless car washes, it is important to pick a very good location with lots of automobiles that pass by. Make sure your washing services are excellent and the customers feel very happy with the results. Give them all a little extra bit of attention and they will tell their friends.

What is the growth potential for a car wash?

Since getting a car wash is a matter of convenience, there is the possibility of having multiple locations served by a hand-wash company or a detailing company. For self-service, automatic, and touchless car washes, it is possible to have one on any major thoroughfare and even add other locations after the first location is successful.

Having the locations a few miles apart will help to make sure you do not cannibalize your own market.

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

You can start all by yourself and then add helpers if you get more cars to wash.

This type of car wash does not require a permanent staff. You will only need maintenance people to repair broken equipment when necessary. You may want to hire a part-time worker to sweep up and clean the place once or twice per week if you do not want to do this work yourself.

Just like hand washing you can start as a sole owner/operator. However; most of these businesses have at least three people to process the cars more rapidly. Two work the outside of the cars and one works on the inside. Depending on the volume of cars washed, you will add new three-person teams to handle the additional workflow.

An automatic commercial car wash needs to have at least six people to operate properly if it is a busy car wash. Laborers get minimum wage plus tips. Workers are pretty easy to find. Students are a good source for workers, so recruiting for part-time workers from a nearby college campus is a good idea. Because a touchless car wash uses more workers, you will need to have at least 12 and maybe more. Adding more staff depends on the volume of daily car washes.

Useful Links

Industry opportunities.

• Mr. Clean Car Wash Franchise
• International Carwash Association

Real World Examples

• Zippy Auto Wash

Further Reading

• A how-to guide detailing the process of starting a car wash
• Find more  Business Ideas  perfect for Small Towns!

Have a Question? Leave a Comment!

How To Write a Winning Car Wash Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for car wash business owners who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every car wash business owner should include in their business plan.

Download the Carwash Business Plan Template

What is a Car Wash Business Plan?

A car wash business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Car Wash Business Plan?

A car wash business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Car Wash Business Plan

The following are the key components of a successful car wash business plan:

Executive Summary

The executive summary of a car wash business plan is a one to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your car wash company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your car wash business , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your car wash firm, mention this.

You will also include information about your chosen car wash business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a car wash business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the car wash industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a car wash business may include people who regularly get their car washed (e.g., every two weeks), those who only wash their car when it’s necessary (e.g., when it’s visibly dirty), and those who never wash their car (but, may take it to a detailing service once or twice a year).

You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or car wash services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your car wash marketing plan . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your services here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them, if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or, you may promote your car wash business via word-of-mouth marketing.

Operations Plan

This part of your car wash business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person? What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a car wash business include reaching $X in sales. Other examples include expanding to a second location, launching a new service, or hiring additional staff.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific car wash industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Car Wash Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Car Wash Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup car wash business.

Sample Cash Flow Statement for a Startup Car Wash Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your car wash company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is a critical document for any car wash business. If you are seeking funding, it can help you obtain it.  

Finish Your Carwash Business Plan in 1 Day!

Wish there was a faster, easier way to finish your carwash business plan?

With our Ultimate Carwash Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Articles

How To Write a Winning Mobile Car Wash Business Plan + Template

BUSINESS STRATEGIES

How to create a car wash business plan

• Annabelle Amery
• Sep 6, 2023

Starting a business , whether it's a small venture or a large enterprise, requires careful planning and strategizing. One essential component of this process is creating a clear business plan that serves as a roadmap for starting your car wash business .

A business plan can help you effectively navigate the challenges of the car wash industry, and can serve as the driving force behind your business. Keep reading to learn more about how to create a strong plan, and put your business in the right lane.

Looking to promote your car wash business online by making a website ? Get started for free with Wix’s website builder .

How to write a car wash business plan in 6 steps

As mentioned above, a well-structured business plan serves as a roadmap, guiding your decisions and strategies to ensure the success and profitability of your venture. Here are the six main parts of a car wash business plan:

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is the first part of your car wash business plan, providing an overview of your entire plan in a concise and compelling manner. It should capture the reader's attention and provide a clear understanding of your business idea, goals and strategies.

To write a clear executive summary for your car wash business plan you should start with a compelling introduction that highlights the unique aspects and value proposition of your car wash business. Always provide a brief description of the market opportunity and target audience for your services. Make sure to summarize your marketing strategies , competitive advantages and financial projections. Finally, include key milestones and objectives that you aim to achieve with your car wash business.

02. Business and domain names

Choosing the right business name for your car wash is crucial for building brand awareness and trust among your target audience. Your business plan should outline the process of deciding on a company name and domain name.

To choose the right name for your car wash business:

Brainstorm small business name ideas that reflect the nature of your car wash services, such as cleanliness, efficiency or environmental friendliness.

Use a business name generator tool to generate creative and unique name options.

Consider the availability of domain names that align with your chosen company name.

Check for trademark conflicts and ensure that your chosen name is not already registered by another business in your industry. (And make sure to register your business once you’ve decided on your name and business structure.)

When choosing a domain name:

Keep it short, memorable and easy to spell.

Avoid hyphens or numbers that can confuse potential customers.

Use relevant keywords if possible to improve search engine visibility.

Select a domain extension (.com, .net, .org) that is widely recognized and trusted by customers.

03. Market analysis and research

Market analysis and research in your business plan is crucial for understanding the competitive environment and developing effective marketing strategies. This section should provide an in-depth analysis of your target market, customer demographics, competitors and industry trends.

You can do this by:

Analyzing the competitive landscape by researching existing car wash businesses in your area. Identify their strengths, weaknesses, pricing strategies and customer reviews.

Identifying market trends and opportunities that can help you differentiate your car wash business and attract customers.

Conducting surveys or interviews with potential customers to gather insights into their preferences, expectations and willingness to pay for car wash services.

Then, use the data and information gathered from your marketing analysis to develop a solid marketing strategy that will effectively target and attract your ideal customers.

04. Operations plan

The operations plan is a crucial part of your car wash business plan as it outlines the practical aspects of running your business. This section should cover location selection, premises layout, equipment requirements and staffing needs.

When developing the operations plan make sure to:

Select a suitable location for your car wash business that offers high visibility, easy access and ample parking space.

Choose the layout of your premises to optimize workflow and create a pleasant customer experience.

List the required equipment for your car wash, such as automated washing systems, water treatment systems, vacuum cleaners and payment systems.

Outline the staffing needs for your car wash business, including roles like car wash attendants, cashiers and maintenance personnel. Specify their responsibilities and required qualifications.

05. Marketing and advertising plan

The marketing and advertising plan in your car wash business plan details the strategies and campaigns you will implement to promote your services. This section should include an overview of your target market, branding strategies, online presence, advertising channels and promotional activities.

Start by creating a strong brand identity that reflects the values and unique selling points of your car wash business. As part of this, establish an online presence through a business website , social media profiles and online directories. Consider using a mix of advertising channels like local newspapers, radio ads, online ads and community sponsorships.

You could also think about promotional activities—like loyalty programs and referral incentives—to encourage repeat business. By implementing a well-thought-out marketing and advertising plan, you can effectively reach your target audience and maximize customer acquisition for your car wash business.

Building your brand from the ground up? Use Wix’s logo maker to get the creative juices flowing.

06. Financial plan

The financial section of your business plan provides holistic insight into the financial facets of your venture, including how you plan to raise money for your business , revenue forecasts, operational costs and the timeline for achieving profitability. This section not only establishes the fiscal soundness of your car wash business but also helps prospective investors and lenders assess the projected return on their investment.

Thinking of starting another type of business? Check out some of these creative service business ideas  to help get you started.

Car wash business plan examples

These draft business plan templates provide a starting point for your own car wash business plan. Customize them to fit your specific goals. Remember to conduct thorough research and analysis to ensure the accuracy of your financial projections and strategies. Check out these service business examples to help you get started:

Business plan template 1: Full-service car wash

Sparkling Suds Car Wash is a full-service car wash facility located in downtown Anytown. Our mission is to provide exceptional car washing services with a focus on customer satisfaction and environmental sustainability. With our state-of-the-art equipment, eco-friendly cleaning products and highly trained staff, we aim to become the go-to destination for car owners who value quality and convenience.

Company name and domain name

The company name chosen for our car wash business is Sparkling Suds Car Wash. The corresponding domain name will be www.sparklingsudscarwash.com.

Target market: Our primary target market includes busy professionals, families and car enthusiasts who seek high-quality car washing services.

Competitive landscape: We have identified three major competitors in our area, each offering different levels of service and pricing.

Market trends: There is a growing demand for eco-friendly car wash services as customers become more conscious of their environmental impact.

Location: We have secured a prime location in downtown Anytown with high visibility and easy access.

Premises layout: The premises will be designed to accommodate multiple vehicles simultaneously, ensuring efficient workflow and minimizing customer wait times.

Equipment: We will invest in state-of-the-art automated washing systems, water treatment systems, vacuum cleaners and payment systems.

Staffing: Our car wash business will require a team of skilled car wash attendants, cashiers and maintenance personnel.

Target market: Our marketing efforts will focus on reaching our target market through online advertising, local community events and partnerships with nearby businesses.

Branding: We will create a strong brand identity that reflects our commitment to quality, convenience and environmental sustainability.

Online presence: We will build a professional website and establish a presence on social media platforms to reach a wider audience.

Advertising channels: Our advertising strategy will include local newspaper ads, radio commercials and online advertisements targeted at our specific demographic.

Financial projections

Startup costs: We estimate the initial investment required for equipment, leasehold improvements, marketing expenses and working capital to be $300,000.

Revenue projections: Based on market research and conservative estimates, we project annual revenue of $500,000 in the first year, with steady growth in subsequent years.

Expenses: We have carefully considered all expenses associated with running the car wash business, including labor costs, utilities, supplies and maintenance.

Business plan template 2: Self-service car wash

Bubbles & Jets Car Wash is a self-service car wash facility located in a high-traffic area of Suburbia. Our goal is to provide a convenient and affordable car washing experience for individuals who prefer to wash their own vehicles. With our user-friendly equipment, well-maintained facilities and competitive pricing, we aim to become the preferred choice for self-service car washing in the area.

The chosen company name for our self-service car wash business is Bubbles & Jets Car Wash. The corresponding domain name will be www.bubblesandjetscarwash.com.

Target market: Our primary target market includes budget-conscious individuals who enjoy the satisfaction of washing their own vehicles.

Competitive landscape: We have identified two existing self-service car washes in the area, each with its own strengths and weaknesses.

Market trends: There is a growing trend of people opting for self-service car washes as they value control over the cleaning process and cost savings.

Location: We have secured a strategic location in Suburbia with easy access and ample parking space for customers.

Premises layout: The premises will be designed to accommodate multiple vehicles simultaneously, providing customers with enough space to comfortably clean their cars.

Equipment: We will invest in high-quality self-service car wash equipment, including pressure washers, foam guns, vacuum cleaners and vending machines for cleaning products.

Staffing: Our self-service car wash business will require minimal staffing, primarily for maintenance and customer assistance.

Target market: Our marketing efforts will focus on reaching our target market through local advertising, online directories and word-of-mouth referrals.

Branding: We will create a brand identity that emphasizes convenience, affordability and a clean and well-maintained facility.

Online presence: We will establish a basic website with information about our services, location and operating hours.

Advertising channels: Our advertising strategy will include local newspaper ads, flyers distributed in nearby neighborhoods and online listings in car-related directories.

Startup costs: We estimate the initial investment required for equipment, leasehold improvements, marketing expenses and working capital to be $150,000.

Revenue projections: Based on market research and conservative estimates, we project annual revenue of $200,000 in the first year, with steady growth in subsequent years.

Expenses: We have carefully considered all expenses associated with running the self-service car wash business, including utilities, supplies, maintenance and minimal staffing costs.

Benefits of creating a car wash business plan

Your business plan has both short-term and long-term implications for your business. Among them:

Attracting financing: A well-structured business plan tailored to your car wash venture can pique the interest of potential investors and lenders. By showcasing your understanding of the car wash industry, competitive strengths and growth projections, you increase your chances of securing the funding needed to launch or expand your car wash business.

Resource planning: Crafting a business plan specific to your car wash operations allows you to gain a comprehensive grasp of the resources required for a successful launch and ongoing operations. This encompasses identifying essential equipment, supplies, technology and staffing necessary to efficiently run your car wash establishment.

Goal setting: A thoughtfully outlined car wash business plan empowers you to set achievable objectives and milestones. It provides a roadmap for measurable targets, guiding your progress and channeling your efforts toward attaining sustainable success.

Competitive insights: Infusing thorough market analysis into your car wash business plan equips you to navigate the competitive landscape. By pinpointing competitors' strengths and vulnerabilities, you can devise strategies to differentiate your car wash business and gain a distinct market advantage.

Risk management: Integrating a comprehensive market evaluation and competitive assessment into your business plan enables you to identify potential risks that might impact your car wash enterprise. Developing contingency measures and risk-mitigation tactics within your plan equips you to navigate uncertainties and minimize potential disruptions.

Expansion possibilities: A well-constructed business plan for your car wash enterprise lays the groundwork for future growth and diversification. It provides a platform to assess expansion opportunities, such as adding more locations or introducing novel services, while also offering strategies to capitalize on these prospects.

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How to Start a Car Wash Business

Starting a car wash business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful car wash business.

Importantly, a critical step in starting a car wash business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Car Wash Business Plan Template here .

Download our Ultimate Car Wash Business Plan Template here

14 Steps To Start a Car Wash Business :

• Choose the Name for Your Car Wash Business
• Develop Your Car Wash Business Plan
• Choose the Legal Structure for Your Car Wash Business
• Secure Startup Funding for Your Car Wash Business (If Needed)
• Secure a Lease for Your Location
• Register Your Car Wash Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Car Wash Business
• Buy or Lease the Right Car Wash Business Equipment
• Develop Your Car Wash Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Car Wash Business
• Open for Business

1. Choose the Name for Your Car Wash Business

The first step to starting a car wash business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your car wash business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your car wash business.

2. Develop Your Car Wash Business Plan

One of the most important steps in starting a car wash business is to develop your car wash business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

To enhance your planning process, incorporating insights from a  sample car wash business plan  can be beneficial. This can provide you with a clearer perspective on industry standards and effective strategies, helping to solidify your own business approach.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your car wash business.
• Company Overview – this section tells the reader about the history of your car wash business and what type of car wash business you operate. For example, are you a self-service car wash, an automatic car wash, or a detailing car wash business.
• Industry Analysis – here you will document key information about the car wash industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your car wash business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – In this section, you will document the financial projections for your car wash. This should include your sales and revenue projections, cash flow statement, and your expense budget, detailing the car wash startup costs .
• What startup costs will you incur?
• How will your car wash business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your car wash business.

Next you need to choose a legal structure for your car wash business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the car wash business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to open a car wash business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a car wash business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a car wash business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your car wash business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Car Wash Business (If Needed)

In developing your car wash business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a car wash business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a car wash business that they believe has high potential for growth.

5. Secure a Lease for Your Location

When starting a car wash business, the first thing you need to do is find a location. You’ll want to choose a spot that is easy for customers to access and is in a highly trafficked area. You may also want to consider choosing a location that is close to other businesses, so you can attract customers from those businesses as well.

You’ll want to look around for a location that can accommodate all of your car wash equipment. You’ll need a bay or stall where your customers will wait and you’ll also need space for the washing equipment and supplies. Make sure you will have access to enough water and electricity as well.

The best locations for a car wash business are those that can accommodate large numbers of customers and self-service locations that are open 24 hours a day.

6. Register Your Car Wash Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your car wash business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your car wash business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

A car wash business typically needs a business license from the local government, as well as a permit to operate a car wash. This depends on the city’s business license requirements. Other permits may depend on where you live, what you will be washing, and if there are specific health or environmental regulations that pertain to your location. Some examples of these types of permits include a storm water discharge permit from the local government, a pollution control device permit from the state environmental protection department, and a wastewater discharge permit from the local board of health.

10. Get Business Insurance for Your Car Wash Business

Below are the main types of insurance to consider for your business:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Car Wash Business Equipment

To start a car wash business, you will need a few pieces of equipment. You will need a pressure washer, a number of hoses, buckets, and some cleaning supplies. For automatic car washes, you will also need a vehicle wash system. These systems are pricey, but they will make the process of car washing much quicker. Some car washes also offer vacuums for customers to use after they have washed their vehicles.

12. Develop Your Car Wash Business Marketing Materials

As part of your car wash marketing plan , marketing materials will be required to attract and retain customers to your car wash company.

The key marketing materials you will need are as follows:

• Logo: Spend some time developing a good logo for your car wash business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website: Likewise, a professional car wash business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your car wash business.

13. Purchase and Setup the Software Needed to Run Your Car Wash Business

To start a car wash business, you’ll need software to help manage your operations. Car wash business software can help you track customer information, charge customers and make appointments.

Here are some popular car wash business software solutions:

• Car Wash POS – Track customer information and process payments with this point-of-sale (POS) software. You’ll be able to track customers’ loyalty program status, view transaction history, and more.
• Car Wash Management Software – Manage daily tasks with this software, which helps you schedule appointments, produce reports, and stay on top of marketing efforts. You’ll also be able to track customer information for each vehicle that enters your car wash business.
• Car Wash Cleaning Scheduling Software – Store details about your equipment and cleaning chemicals, and then use this software to schedule jobs. You can choose the type of equipment that will be used for each job, what chemicals are needed, and more.
• Car Wash Marketing Software – Promote your car wash business with this software, which helps you manage customer lists, target ads to specific audiences, produce reports, and more.

14. Open for Business

You are now ready to open your car wash business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.  

Car Wash Business Plan Example PDF

Download our car wash business plan pdf here. This is a free car wash business plan example to help you get started on your own car wash plan.

Additional Resources

Car Wash and Detailing Maverics  

How to Finish Your Ultimate Car Wash Business Plan in 1 Day!

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With Growthink’s Ultimate Car Wash Business Plan Template you can finish your plan in just 8 hours or less!

Car Wash Business FAQs

Is it hard to start a car wash business.

No, it's not. In fact, it's quite easy to get started and operate a car wash business. All you need is the necessary know-how and a location with sufficient space for your equipment and operational needs. 

How can I start a car wash business with no experience?

You can start a car wash business with no experience by doing the following:

• Research the competition in your area and come up with a plan to differentiate your car wash from the others.
• Create a business plan and get funding, if necessary to help get your business started.
• Purchase the necessary equipment and supplies needed to run your car wash business
• Hire employees and get started.

Is a car wash business a good idea and/or a good investment?

Yes, investing in a car wash is an excellent idea and can be very profitable. You can start small and scale it up as you go along without investing too much money initially. The initial setup cost is quite low, mainly the equipment itself depending on its size, type and how elaborate your car wash business plan is. 

What type of car wash business is most profitable?

There are many different types of car wash businesses, but the most profitable type is the full-service car wash. This type of business offers a wide range of car wash services, such as vacuuming, shampooing, and waxing the car. The equipment and supplies for this type of business can be expensive, but the market is currently booming.

How much does it cost to start a car wash business?

The cost to open a new car wash business varies depending on the location and size of the business. This figure includes the cost of purchasing commercial property, construction and equipment. 

Additional start ups costs include:

• Licenses and permits
• Insurance: general liability insurance, workers compensation insurance and vehicle liability insurance
• Repair and maintenance
• Utilities: electricity, water/sewer, natural gas, sewage disposal

What are the ongoing expenses for a car wash business?

There are a few ongoing expenses to consider when starting a car wash business. These include water bills, trash removal and supplies.  Depending on the size of your car wash business, you may also need to hire employees and pay for advertising.

How does a car wash business make money?

A car wash business makes money by charging customers a fee to have their car washed.  Another way a car wash business can make money is by selling car cleaning products and supplies to customers. A car wash business can also make money by providing other services, such as auto detailing or oil changes.

Is owning a car wash business profitable?

Yes, owning a car wash business is very profitable.

A car wash is a business that is always in demand. The fact that it is a recurring service means that you will always have customers. In addition, a car wash is relatively simple to start, and with the right marketing, you can see significant profits from this business.

Why do car wash businesses fail?

A car wash business can fail for a number of reasons, but the most common reason is a lack of marketing. Other reasons include a lack of proper maintenance, not catering to customer needs, and not having the right team in place. These are all factors that can be controlled, meaning that a business owner has the opportunity to turn things around, no matter how dire the situation might be.

Where Can I Download a Car Wash Business Plan PDF?

You can download our car wash business plan PDF template here. This is a business plan template you can use in PDF format.

Other Helpful Business Plan Articles & Templates

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

How to Start a Car Wash Business

Free Car Wash Business Plan Template

10 Min Read

If you want to turn your love for cars into a profitable venture, then starting a car wash business can be your ideal path. There are millions of cars on the road and a vast market size of car owners seeking cleaning services, so there’s an ample opportunity to shine.

Starting a car wash business doesn’t need a vast investment or any fancy degree. All you need is some tools, cleaning skills, and a drive to sparkle the cars.

So if you’re ready to establish yourself as a successful car wash owner, we’re here to help you through this step-by-step guide.

How to start a Car Wash business in 8 easy steps

• Research the types of car wash business
• Prepare a comprehensive business plan
• Select a car wash location
• Register your car wash business
• Obtain business licenses and permits
• Figure out financing
• Hire and train staff
• Market your car wash

1. Research the types of car wash business

Before entering the car wash industry, you must choose the type of car wash service you’ll offer customers. You can make the choice based on your budget and the service that aligns best with your local market.

Based on different business models, each car wash type has pros and cons. Here is an overview of the different types of car wash businesses you can opt for:

• Self-Service Car Wash
• Automatic Car Wash
• Full-Service Car Wash
• Mobile Car Wash
• Tunnel/Conveyor Car Wash

By carefully understanding all the types of car washes, you can decide a niche to establish your venture on, as it will decide the future of your car wash company.

2. Prepare a comprehensive business plan

To ensure your car wash business is a success, you need a business plan.

A solid car wash business plan helps you run your business smoothly, keeping your final goals in focus.

The plan will cover your strategy, identify risks, market research, service offerings, financial projections, and exit strategy. It also helps in securing funding to expand and grow your enterprise.

You can build the perfect manual and guide to run your business successfully with a car wash business plan. It is a roadmap of how you will meet the challenges of your business.

So let’s have a look at the sections you need to include in your business plan:

• Executive summary
• Business Overview
• Market Analysis
• Products and Services
• Sales Strategies
• Marketing Strategies
• Operations plan
• Management team
• Financial plan

To write all these sections with precision requires long hours, attention to detail, and constant effort.

Not very good at writing? Need help with your plan?

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3. Select a car wash location

Location is a key to attracting customers for your car wash services.

The ideal locations are in residential areas, shopping centers, office buildings, or busy highways.

Your choice should factor in your business model, financial expectations, target market, niche, and services offered.

A quick checklist that your car wash business should include:

• High traffic volume
• Ease of access
• Surrounding businesses
• Competitors nearby
• Rent and utility costs
• Ample space for parking
• How close is it to your target customers?

4. Register your car wash business

Opening a car wash business is exciting, but don’t forget to comply with all local, state, and federal laws. Doing business registration ensures that you are committed to the legal norms.

So, to make your car wash business a legal entity, you must adhere to some of these legal requirements.

Register your Business Name

To get a general business license, you need to register your business entity with the state and local government. This will also ensure that your business name is officially yours and you can do business using that name.

Register your Business Structure

You need to select from business entities such as Sole Proprietorship, Corporation, or LLC (Limited liability company), and register it.

By doing this step, you can determine how you pay business taxes. So choose the business entity that balances the legal protections and benefits.

Get an EIN: Federal Tax Identification Number

The Employer Identification Number (EIN) will be a social security number for your business. It is also required when you apply for investors or bank loans.

Open a Business bank account

Once you have your EIN, you can open a business bank account to separate your business and personal finances. Also, get a business credit card to cover your basic business expenses.

5. Obtain business licenses and permits

To operate your car wash business legally by avoiding potential fines or shutdowns, you need to obtain all the necessary licenses and permits.

Depending on the location of your business, you might need different permits, but here are a few common types:

General Business License

Obtaining this license gives you an official allowance from the state to operate the business.

Doing Business As(DBA) License

You can also opt for the DBA (Doing Business As) name. It allows the business to operate under another name other than the formal business name.

Zoning Permit

Ensure your car wash business conforms to local zoning regulations and land use requirements. These permits confirm that your business location is suitable for its intended purpose and complies with local ordinances.

Sign Permit

A sign permit is necessary for your car wash business as it allows you to legally display important information such as your business name, logo, and other signage.

Building Permits

If you’re planning to build or renovate a wash shop, you’ll need this to ensure compliance with safety standards and building codes.

Fire Department Permits

This permit will make sure that you’re ready to handle and prevent fires safely at your business location.

Environmental License

Many states and local governments have strict rules for car washes to control the disposal of wastewater and grit. So make sure that you register with the water department and show that you’ll use the water responsibly.

Moreover, you’ll have to purchase insurance for your car wash business with a customer’s vehicle in your care. It will offer protection against any damages to your property, financial losses, and any risks or liabilities.

Here are some business insurance categories, you can choose from:

• General liability insurance
• Commercial property insurance
• Workers compensation insurance

Always consult a trusted insurance broker to ensure you get the right coverage.

6. Figure out financing

To start and run a car wash business, one needs to deal with various challenges and one big hurdle is to get enough money to get going.

You need to prepare a detailed budget for the startup and operational costs of your car wash business before you start looking for funds.

Estimate your startup costs by listing the essential startup supplies, car wash equipment, insurance costs, licensing requirements, office space, and associated business expenses. The operational costs include employee salary, marketing, advertising costs, etc.

After you’ve got a clear budget, you can look for various funding options like:

• Bank Loans: A business auto loan from a bank is the classic choice but requires a solid plan and strong credit.
• SBA Loans: The Small Business Administration loans are specially designed for small businesses and help secure bank approval.
• Grants.gov: Explore various government programs that might fuel your entrepreneurial journey.
• Crowdfunding: Here you can raise funds from large groups of people and platforms like Kickstarter let passionate donors support your venture.
• Angel Investors and Venture Capitalists: These entities provide capital in exchange for equity.

Careful planning and consideration will form a solid foundation for your business and help to attract the right investors to fund your car wash company.

7. Hire and train staff

To establish a thriving car wash business, you need reliable, detail-oriented employees committed to providing exceptional customer service. Their experience and level of service are capital.

So, how and where do you find the right employees? Here are some ways to find one:

• Post job ads on social media platforms like LinkedIn, Facebook, or Jobs.com
• Hire a recruitment agency if you have the budget.
• Tap into your professional network and ask for referrals.
• Encourage your existing employees to refer qualified candidates.

Also ensure that your employees receive thorough training on car washing techniques, equipment usage, customer engagement, and safety measures. Do set some transparent guidelines and performance benchmarks to uphold the quality of service provided.

So, hiring skilled and experienced staff members is key to a profitable business.

8. Market your car wash

Marketing is super important to establish a successful car wash business.

You can develop a comprehensive marketing plan that utilizes both traditional and digital channels. The traditional way has been around for a long time, but online advertising is relatively new.

Let’s have a look at both of the methods:

Traditional Marketing

We must recognize the power of traditional marketing in this era of digitalization. It’s still an effective way of advertising.

Here are the various traditional methodologies to market your car wash business:

• Shop window displays and signs
• Catalogs sent by mail
• Phone calls
• Billboards and posters
• TV and radio ads

You could also make flyers, business cards, and even newspaper ads. Then hand out all these in your local area or at any nearby businesses. Offering discounts for new customers or referrals can also help.

Digital Marketing

We’re in the digital era, where you can reach the various people online who may require your car wash services.

Digital marketing includes:

• Email campaigns
• Improving your website’s visibility (SEO)
• Social media posts
• Partnering with other websites
• Collaborating with influencers

Moreover, you can showcase the feedback of your happy clients on your social media accounts to attract new clients.

Challenges of operating a car wash business

Running your own car wash business offers various advantages but it also comes with its share of challenges. So you’ve to be prepared to face it confidently.

Here are some common challenges that you can overcome with the right approach.

Competition

The car wash industry is highly competitive. So to differentiate your business, focus on providing additional services, and customer experience, and try to be punctual to stand out from the crowd.

Equipment Costs

Investing in quality car wash equipment and maintenance can be expensive. Research suppliers, compare prices, and prioritize durable, efficient equipment. So plan a regular maintenance schedule to increase the lifespan of your equipment.

Labor Management

Finding and managing a skilled workforce can be challenging. Hire employees with strong work ethics who would be able to provide excellent customer service. Provide thorough training, and foster a positive work environment to retain talent and ensure consistent service quality.

Business Seasonality

Car wash businesses may experience fluctuations in demand throughout the year. So to overcome this challenge, offer additional services or promotions, or referrals to attract customers, and maintain business momentum year-round.

Launching a car wash business brings together your passion for automotive care and entrepreneurship with the thrill of running your own business. It can draw clients who are eager to maintain their vehicles’ cleanliness and appearance.

The good news? You’ve got the potential to make it happen!

Let’s take the first step together toward crafting a solid business plan through a business planning tool and have a successful launch.

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Frequently Asked Questions

How profitable are car wash businesses.

The profitability of a car wash business depends on various factors such as the type of car service, the location of the business, and the daily expenses. On average, it can start from $41,000 per year for a small self-service car wash to $686,250 for a large luxury car wash.

How much does it cost to start a car wash business?

The cost of starting a car wash business can vary depending on various factors such as location, business size, services offered, and equipment.

However, it costs $20,000 per month to operate a small car wash business with 2 attendants.

What equipment and supplies do I need?

As a car wash business owner, you should have both exterior car washing and interior car washing equipment, such as:

• Acid-free degreasers
• Detail clay
• Applicators
• Drying towels
• Steam cleaner
• Liquid and foam chemicals
• Safety Equipment

How should I market my new business?

To market your new business effectively, you need to use social media platforms like Facebook, and Instagram to showcase the positive feedback of your potential customers. Run advertisements on local paper or online.

Do market research to make your marketing plan for your new customers, making sure you differentiate yourself in the competitive business landscape.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Car Wash Business Plan Template & Guidebook

Starting a car wash business can be intimidating, but with the right plan, you can feel confident knowing that your business will be successful. The #1 Car Wash Business Plan Template & Guidebook provides everything you need to create a comprehensive plan that will help you launch and grow your car wash business. Learn more here about how this template and guidebook can help make your car wash business a success.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Car Wash Business [11 Steps]
• 10+ Best & Profitable Car Wash Business Ideas [2023]
• 25 Catchy Car Wash Business Names:
• List of the Best Marketing Ideas For Your Car Wash Service:

How to Write a Car Wash Business Plan in 7 Steps:

1. describe the purpose of your car wash business..

The first step to writing your business plan is to describe the purpose of your car wash business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a car wash business:

Our mission at ABC Car Wash is to provide our customers with an unbeatable car cleaning experience through the provision of efficient and reliable services that leave vehicles shining and spotless. We prioritize safety, sustainability, and customer satisfaction above all else.

2. Products & Services Offered by Your Car Wash Business.

The next step is to outline your products and services for your car wash business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your car wash business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your car wash business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your car wash business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a car wash business?

• Industrial-grade car wash machine
• Quality cleaning material such as brushes, sponges, and car wash detergent
• Towels and drying cloths
• Vacuum cleaner
• Hose with running water
• Appropriate drainage system to capture wastewater
• Business Permits and Licenses

5. Management & Organization of Your Car Wash Business.

The second part of your car wash business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your car wash business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Car Wash Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a car wash business varies based on many different variables, but below are a few different types of startup costs for a car wash business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your car wash business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your car wash business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your car wash business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Car Wash Business Plans:

Why do you need a business plan for a car wash business.

A business plan for a car wash business is necessary to provide a roadmap for starting and operating the business. It helps to create a plan for success, define the target market, identify competition, outline legal and financial requirements, develop marketing and operational strategies, and project income and expenses. A well-thought out business plan can help ensure that your car wash business is successful now and in the future.

Who should you ask for help with your car wash business plan?

You should ask a professional business consultant or mentor for help with your car wash business plan. They can provide valuable advice on market research, financial projections, marketing strategies, legal considerations, and more. You may also want to speak with other successful car wash owners to gain insights into their operations.

Can you write a car wash business plan yourself?

Although it is possible to write a car wash business plan yourself, it is highly recommended to consult a professional business plan writer for assistance. A professional business planner can help create a strong, detailed and well-thought out plan that will give your car wash the best chance of success. Additionally, utilizing the services of an experienced business advisor can help you identify potential risks and opportunities, create an accurate budget and timeline, and provide sound advice to ensure the success of your business venture.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Car Wash Business Plan

Start your own car wash business plan

Soapy Rides Business Plan

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

East Meadow long island and its surrounding area is quite affluent, 40% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There are five different car dealerships within a three-mile radius which will require car washing services for the various fleets. Lastly, there are many different local businesses that have company cars and that require clean appearances.  All of these potential customers need a car wash that fits their needs and their budget. We will happily fill that need.

Soapy Rides will be providing customers with three services: exterior car washing, interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate

This area has a number of benefits in terms of the market that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000 annually. Many people in the neighborhood own and/or lease new cars and place great value on their cars and how they look. There are a large number of car dealerships in the area–five within three miles of the proposed location for Soapy Rides.

Competition

There is one other hand car wash shop in East Meadow. It is quite new and is trying to compete with automatic car washes by offering low prices. However, it is not targeting the customers who seek quality cleaning.

Soapy Rides will be providing customers with three services: exterior car washing, , interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate.

Expectations

The business will be initially financed by a personal investment by Mark Deshpande and will finance growth through cash flow. This will mean that the company will grow more slowly than it could, but it will ensure that Mark retains control over the direction of the company. In year three, it is hoped that the company will be able to open a second location. It is envisioned that an outside loan or equity funding will be sought at that time.

Financial Highlights by Year

Financing needed.

Mark Deshpande will invest $40,000 dollars to change the the location into a car wash.

Problem & Solution

Problem worth solving.

The car wash will be based in East Meadow, New York. This area has a number of benefits in terms of the market that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000 annually. Many people in the neighborhood own and/or lease new cars and place great value on their cars and how they look. There are a large number of car dealerships in the area–five within three miles of the proposed location for Soapy Rides

Our Solution

Soapy Rides will be providing customers with three services: exterior car washing, , interior cleaning, and detailing. We have the ability to provide a high quality service, both in regards to the actual washing as well as customer service is all based on their ability to find the best employees. Hiring the best employees is cost effective because it decreases HR costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers. Study after study proves that a happy employee is far more likely to provide the highest level of customer service compared to an employee who is not happy and feels that they are being taken advantage of.

Target Market

Market size & segments.

Soapy Rides segments its customers by type of car ownership. We believe that the type of car that a person owns says volumes about their driving, and, therefore their car washing and detailing requirements.

• Local businesses : Some local businesses have fleets of cars and small vans that must be kept clean to maintain their company image. These businesses will be looking for a cost effective, efficient car washing service to perform this service, and will prefer to use a car wash service during the week rather than during weekends, like the general public.

Current Alternatives

The hand car washing business in East Meadow consists of many small competitors. Everything from local children raising money for their youth group on a Saturday by cleaning cars, to the automatic car wash machines, are competition for Soapy Rides. However, these two alternatives aim to meet the needs of the price-conscious individuals who are choosing the service simply so they do not have to clean the car themselves. 

Our Advantages

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Keys to Success

Our keys to success are: 

• To be viewed as a premium car wash and detail service in East Meadow.
• Maintain a very high gross profit margin.
• Maintain a modest, steadily growing net profit margin.
• Expand to two locations after third year of operation

Marketing & Sales

Marketing plan.

Our marketing strategy is to attract customers who will be repeat users and will frequent the business in the typically quiet times. It will not be difficult to attract customers during the summer months and on the weekends, the weekdays however, especially in the winter, people will not think about having their cars washed. For this reason, Soapy Rides will target people who will tend not to be restricted to these busy times.

More specifically we plan on targeting: 

• Business owners who make their own hours. We will reach out to them by paper promotions and brochures handed to everyone who works in the area and connect to the local businesses through facebook and linked in. They will get a discount the first time they use our service for giving us a try. 
• Retired people – we will mail them promotions or drop them by their homes in the area. This demographic is less likely to be on social media but we will honor any promotions they find online. 
• Dealerships will need cars detailed and washed regardless of the time of the day and week.  We will build a very good quid pro quo relationship with these dealerships. This will supply a constant flow of traffic.
• Businesses will need their fleet cars washed during the week during regular business hours. Again this will be due to  strong quid pro quo relationships with these businesses. If they trust their cars or their clients cars with us we will take very good care of them 

Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of Soapy Rides, and that all employees care about the care and upkeep of each vehicle. We must be aware that there are low switching costs in the car washing industry, so we have to work hard to develop and keep repeat customers.

Locations & Facilities

The location was previously used as a quick stop automobile service shop, so it is set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a car wash and detail facility. The services of a contracting company will be sought to convert the use of the facility and to improve the customer waiting room facilities.

Milestones & Metrics

Milestones table, key metrics.

Our Key Metrics 

• Cold calls – We are aiming to have 3 to 5 percent of who our sales people call use our service
• The number of cars washed in a day 
• The number of cars washed in a month
• The number of businesses that have a working relationship with me. 
• The number of staff members needed to wash the cars in a timely manner. 

Ownership & Structure

The company is solely owned by Mark Deshpande and will be funded by an initial personal investment. Soapy Rides is New York State registered C corporation.

Management Team

Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped (on an unofficial basis) by his father, Barry Deshpande. Barry has over 30 years experience as an entrepreneur, both in the car business and in property development and management.

Mark will also have the assistance of John Shine, the family accountant, in creating a long-term strategic vision for the company. John is a family friend and has worked with the Deshpande family for 23 years. He has worked with hundreds of small- and medium-sized businesses during his career.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our Key Assumptions: 

1 – Everyone appreciates a clean car 

2 – Research and experience show that the average household income in the area is 70,000 so they can afford a 10 to 15 dollar exterior car wash once a week without sacrificing their essentials. 

3 – We assume current and long term loan rates will be 10% and tax rate will be 25%. We have planned our financing and our payables with this in mind. We will appreciate lower rates but will be profitable with higher rates in place 

4 – We assume that we have relationships that will result in deals that will be mutually beneficial. Mark’s family has been in business in the area for years and have contacts that like and trust him. This will help us get going. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our startup Expenses are: 

Stationery etc. $400

Brochures $450

Insurance $200

Rent $1,200

Research and Development $300

Expensed Equipment $4,100

Building Materials $1,200

Building Labor $1,000 

total 10,050 

Sources of Funds

Mark will invest $40,000 to start. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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How To Start a Car Wash Business: The Ultimate Guide

March 27, 2024

Starting a car wash business can be profitable if you’re business-minded and willing to put in the work. According to ondesk , nearly 66% of car owners living in the United States use a car wash service once or twice a month. In addition, the average profit margin per car is about 29%, which accounts for $4.35 on an average ticket of $15. 

So, by finding a good location for your car wash business, implementing an effective marketing strategy, and offering a quality service, you can attract many customers who want to get their cars cleaned quickly and at a good price.  However, opening a successful car wash requires good preparation and knowledge of some aspects related to the car washing industry.  In this article, we’ll walk you through the nitty-gritty you need to know before you start a car wash business.

Starting a Car Wash Business: Step-by-Step

Knowing how to start a car wash business primarily involves choosing the type of car wash service you will offer to customers. This choice depends mainly on your budget and which car wash service works best in your area.  Each type of car wash has advantages and disadvantages and is likely to suit a specific type of business. 

Therefore, it is imperative to know from the outset the different types available so that you know how much you need to budget in terms of capital and what type of equipment and machines you will be investing in.

Here is an overview of the main types of car washes:

1. Research the Different Types of Car Wash Services

Conveyorized tunnel system car wash.

The conveyorized tunnel system car wash is a type of car wash that requires the customer to drive their car into the tunnel and let the conveyor system guide the vehicle through a series of detergent applications, wash equipment, and a rinse and blow system. 

The advantage of the tunnel system car wash is that you can wash several cars at once in one tunnel, saving you time. In addition, the washing time of a single-vehicle is between 5 and 10 minutes. 

Full-service car wash

A full-service car wash involves cleaning the exterior and interior of the vehicle and detailing the car thoroughly. The full-service car wash provides a more complete wash than other types of wash. 

Self-service car wash

The self-service car wash is a type of car wash for people who like to clean their cars themselves. Customers wash their vehicles, paying separately for options such as soap, brushes, high-pressure water, and wax.

When opening this type of car wash business, consider providing customers with all necessary equipment such as wands and brushes to allow them to wash their cars as they wish. In addition, you can consider offering other services such as vacuum cleaners and tire inflation.

The benefit of self-service car wash is that the services provided are much cheaper than other car wash types and allow customers to take care of their cars if they cannot be washed in other car wash facilities.

Touchless car wash

A touchless car wash is a type of car wash that uses a flexible machine that can clean all parts of a car’s surface using high-pressure water jets and a combination of cleaning and polishing chemicals. In this type of wash, no cloth, bristles, or mechanical action is required to clean the vehicle. 

In general, a touchless car wash takes a little longer than a traditional brush wash. Also, improper or incomplete drying can leave stains on your finish.

In-bay touchless automatic car wash

In-bay automatic car washes are generally associated with gas stations and convenience stores. They are either friction, touchless, or both. This type of wash allows customers to choose from a menu of wash options. The menu can range from tire and wheel cleaning to undercarriage cleaning and spray waxing.

At a touchless in-bay automatic car wash, drivers pull their car into a bay while following the instructions on the lighted sign. The washing process involves running the automatic machines over a stationary car to wash it. 

The equipment cleans the car with detergents and high-pressure water jets. The benefits of this type of car wash are that it is becoming increasingly popular and does not require regular staff. In addition, customers have the option of a wash menu to suit their budget.

An in-bay automatic car wash is one of the most profitable types of car wash. On average, an in-bay automatic car wash can generate $139,000 in revenue per year with a net annual profit of $86,531.

2. Write a business plan

No matter what type of business you plan to open, you need to start with a business plan before launching your operations. Opening a car wash business is no exception to this rule. 

Your business plan should outline your aspirations for your business, the results of your market research, a detailed plan of your marketing strategy upon opening the business, financial projections on the costs involved, and unforeseen expenses to be covered. 

It should also indicate the expected financial performance and profitability potential over the next three years. Your business plan will be required to apply for financing from a financial institution. 

It will be required by any bank or investor you approach to help finance your business. No investor will fund a project that does not have a clear and precise roadmap of its activities. Here is a detailed description of what the essential points of your car business plan should include. 

Market research

Market research has three main objectives:

• Ensure there is a demand or need for a car wash in the area where you want to set up your business.
• Develop an appropriate business plan to meet this demand. 
• Help you collect the necessary information that will give you an overview of the sales potential. 

The findings of your market research will help you understand the needs of your potential customers and ensure that the location or area you have chosen has enough traffic. 

Location is everything if you want to start a car wash business successfully. You need to know how often people visit a car wash, how many car washes there are in the area, and what type of car wash is preferred by most customers.

The market research should also give you an idea of the demographics of the people surrounding your future business location. 

Here are some questions you can ask yourself to establish your study market better: 

• On average, how many times do customers visit a car wash per week?
• Who prefers which type of car wash: full-service, touchless car wash, self-service car wash, pressure washer?
• What is the average budget per customer?
• How many car washes are there in the area?
• What services do they offer, and how much do they earn?

Develop a marketing plan for a car wash

Once you’ve completed your market research, you need to think about the marketing strategy you will implement to attract customers. The first thing to do is to look at your competitors’ communication and marketing approaches to attract and retain customers, whether it’s a jiggle ad on local radio stations or posting car wash discounts on social networks. 

Learning more about other people’s strategies allows you to adopt better strategies to promote your carwash. While having a great location is the most critical first step, you’ll still need to find a way to turn potential customers into regulars. 

You can also offer personalized services to your customers. Paid Ads, advertising in your local newspaper, creating a website and loyalty cards or developing offers, and creating Instagram and TikTok promotional accounts are great ways to do this.

The staffing and equipment needs of a car wash

The choice of staff and equipment will depend on the type of car washes you choose. Also, selecting the type of car wash shouldn’t be done on a whim. Base your decision on the results of your market research.  

For example, if you are opening a self-service car wash or an in-bay touchless automatic car wash, you will not need enough staff to run the business. However, you will have to invest in the necessary equipment and renovations. 

On the other hand, if you open a car wash that only offers hand washing like a full-service car wash, you won’t have to spend a large amount of money on equipment but rather on employees. You’ll need to hire many employees to provide fast service to customers. 

Estimated start-up cost 

As an entrepreneur who wants to know how to start a car wash business, the financial aspect is important. You can’t start a business without knowing the start-up costs. Here’s an estimate of the starting costs of a car wash. 

• Hand Car Washing : $1000-5000
• Self-service car wash : $200,000-500,000
• Automatic car wash : $500,000 and more, depending on the size of the business
• Touchless Washing : $1,000,000+

The costs of opening a car wash depend on the type of car wash you want to open. However, there are certain unavoidable expenses, such as water and electricity. To limit the expenses, it is advisable to collect the water by capturing it and passing it through a filtration system to clean it before reusing it. This will help conserve water use and cut back on your water bills. As for automatic car washes, they consume a whole lot of electricity.

3. Set up a legal business

After writing your business plan, you must think about actually opening the car wash. But before launching any operations, you must first set up a legal business. And setting up a legal business means first getting your business a name and trademarking it, getting your business registered, and then forming a legal business structure. 

Find a business name and trademark it

You can’t open a car wash business without giving it a name. Your business name is what defines you and differentiates you from your competitors. 

For example, if you don’t know how to name your car wash business, you can simply add your first name to “Car Wash.” 

If your first name is Bobby, you can name your business “Bobby’s Car Wash.” Once you have found a name that suits you, you need to start trademarking it. 

Trademarking your business name allows you to avoid legal disputes, attract investors, and build your brand. Apply to register a trademark on the USPTO website . 

Get your employee identification number

Also known as the Federal Tax Identification Number, the Employer Identification Number EIN is like a social security number for your business. Obtaining an EIN is mandatory if you are going to register your business. It is also required when you apply for loans from investors or for bank loans. Applying for an EIN is done online , and it is issued immediately. You can then use it to open a bank account for your company and other suppliers.

Register your business name

Registering your business name is all about finding the best business entity for your company. There are several business entities under which you can register your business, each with different advantages depending on the circumstances and needs of your business. 

One option is to register your business as a sole proprietorship . This is the most accessible and popular type of business entity to create. As a sole proprietor, you are the only one who manages your business and assumes all liability in the event of your business failure. In addition, it should be noted that if you set up your business as a sole proprietorship, it will be difficult for you to obtain loans from banking institutions. 

A limited liability company (LLC) is another option and is the most recommended business entity if you want to start a car wash business. This type of business structure makes it easy to set up your business, pay taxes, and keep your personal assets separate from your business’s financial operations. In addition, registering your business as an LLC increases your chances of receiving financing and determines how you pay business taxes. 

You can also choose to incorporate. This is also another form of business structure that gives you more control over how the business pays its taxes and protects you from liability if the business fails. However, this type of business requires a more complex governance structure.

4.  Get business licenses and permits

If you want to know how to start a car wash business, you also need to know about the various licenses and permits required before opening your business. Permits and licenses vary depending on the state, municipality, or county in which your business is located.

Most importantly, your state or municipality may close your car wash business if you don’t have them. To make sure you have all the information you need about the licenses and permits you need to obtain, check with the Secretary of State or Chamber of Commerce in your area to get all the information you need. 

General business license

Among others, you will need a general business license. This is the most basic type of license that almost all states require before opening a business. 

Doing Business As (DBA) licenses

You may also need a Doing Business As (DBA) License. This type of license allows you to conduct transactions on behalf of the business and manage accounts.

Zoning permit

Another essential type of permit to have is a zoning permit. You cannot start a car wash just anywhere. Obtaining a zoning permit is proof that the structure or building you have chosen complies with zoning guidelines and that you have the authority to operate your business at the chosen location. 

Sign permit  

The final permit that is essential to your car wash business is the sign permit. Sign permits give you the legal authority to post information about your business. This information can be your name, logo, or any other signs associated with your business. 

Environmental licenses

Additionally, climate change and environmental protection issues are becoming increasingly important. Most states and local governments have strict rules for car washes to control the disposal of wastewater and grit, allowable air emissions from customers’ cars, and proper storage of fuel tanks. Since running a car wash is a business that requires the use of many chemicals, there are strict rules to limit the effects of these chemicals in nature. Ask the relevant authorities to find out more and prepare yourself accordingly. 

5. Get business insurance

Just like licenses and permits, your business needs insurance to protect you and keep you running safely and legally. There are several types of insurance policies, and they depend on the type of business you are operating.

The most popular type of insurance to purchase is general liability insurance if you are unsure of the risks your business faces. However, many things can happen when it comes to a car wash business.

For instance, accidents or damage to a customer’s vehicle will happen at some point. You need to ensure that you have insurance that will get you out of any undesirable situation. In addition to general liability insurance, you should also have workers’ compensation insurance to protect your employees. 

If you have employees in your car wash business, your state will likely require you to carry workers’ compensation insurance. For more information, consult an attorney or a commercial insurance agency.

6. Finance your business

Financing is an essential part of the car wash industry. Purchasing the machines needed to operate a car wash can be expensive. The equipment needed to operate a touchless car wash, for instance, will cost approximately $250,000. 

Plus, the construction of a building for a car wash costs about $500,000, not to mention other additional costs. So whether you choose to rent or buy new equipment or add new services to your business, it is important to make wise financial choices. 

However, there are several options for financing and operating your carwash. While you may be able to get loans or support of any kind from investors, it is also essential that you contribute to the financing of your business. Loans or alternative financing will not cover all of your financial expenses. 

Here are some of the financing options available to you. 

SBA-backed loan

The most common way to finance a car wash is through a loan from the Small Business Administration (SBA). The SBA allows you to obtain loans at low interest rates and generous repayment periods. 

However,  the SBA is not a direct lender. Instead, it provides guarantees to lenders. The SBA’s most popular loan option is the SBA 7(a) loan program. Loans can provide financing up to $5,000,000, with very competitive pricing and flexible requirements.

The SBA 7(a) program is not the only option you have. The SBA 504/CDC loan is designed to assist small businesses in purchasing large, expensive items or equipment they may need for their business or commercial property.

This type of loan is ideal for entrepreneurs who wish to open a car wash business, as it will cover a good part of the expenses related to the purchase of equipment. 

There is also an SBA micro-loan program for new or small businesses needing loans up to $50,000. This type of financing is ideal for opening a self-service car wash or a mobile detailing business where the start-up costs are lower than for a touchless car wash. SBA loans require individuals to submit annual tax returns and tax returns to support the loan agreement.

Credit cards

Credit cards are still one of the fastest and most effective ways to obtain financing and get your new car wash business up and rolling, although they are a little risky because of the high-interest rates required by lenders. 

The best way to assure lenders is to pay regularly and on or before the due date. Not meeting your commitments can put you in compromising situations later on and prevent you from getting more financing when you need it most.  

7. Invest in a POS system

It’s true that a point of sale system is not the number one priority in starting a car wash business. However,  it plays a vital role in the smooth operation of your car wash as it allows your customers to pay and checkout and be swiftly on their way once their car is ready. 

Although the right equipment, knowledgeable staff, and proper training all contribute to the quality and speed of your service, there is another aspect that comes into play: an excellent point-of-sale system. 

A car wash point-of-sale system can benefit the customer and the business owner in several ways. Here is how it can help your business:

Customer loyalty programs for a car wash business

When it comes to increasing your revenue, half the battle is won if you keep your existing customers coming back regularly. That’s where loyalty clubs come in. Setting up a loyalty program is very difficult if you do not have a good car wash POS software system. 

Loyalty programs help promote repeat business and customer loyalty and allow your company to collect data about your customers who agree to join the program. 

This data will, in turn, allow you to provide special offers and wash reminders and can be designed and sent automatically, thus introducing an element of CRM and marketing into your car wash business. The use of an automated and cloud-based point of sale system is, therefore, essential in managing a loyalty program. 

Track your car wash business operations in real-time. 

Ideally, when choosing a point of sale software solution, it should be linked or integrated with your management or accounting software. This helps you more easily track business and slow periods, the profitability of key periods, staff scheduling, the effectiveness of marketing campaigns, and even blocking equipment maintenance periods. 

The more connected and automated the information, the smarter you can make decisions and the less room for error. Point of sale systems offer a range of automation and marketing opportunities, promoting more effortless and accurate month-end accounting.

If you’re looking for a cutting-edge POS system for your car wash business, feel free to click on the button below to get in touch with us. 

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Top 7 Mistakes When Starting a Car Wash Business

Launching a car wash business can be a fulfilling venture, but avoiding common pitfalls is crucial for success. Here are 7 mistakes to steer clear of:

• #Mistake 1: Skipping market research: Don’t jump in blind! Research the car wash landscape in your area. Who are your competitors? What services do they offer? What are the demographics of your target audience? Understanding the market will help you tailor your offerings and pricing strategy.
• #Mistake 2 : Underestimating the competition: The car wash industry is competitive. Don’t assume you’ll automatically succeed just because there’s a need for car washing. Analyze what your competitors do well, and identify opportunities to differentiate yourself. This could involve offering express washes, eco-friendly cleaning options, or superior customer service.
• #Mistake 3: Lacking a solid business plan: A business plan is your roadmap to success. It should outline your financial projections, marketing strategy, staffing needs, and overall goals. A well-crafted plan will not only help you secure funding but also keep you focused as you navigate the challenges of running a car wash business.
• #Mistake 4: Cost miscalculations: Opening a car wash requires significant investment in equipment, property, and ongoing operational costs. Don’t underestimate the financial demands. Factor in everything from equipment maintenance to employee wages and utility bills to ensure you have a realistic picture of your financial needs.
• #Mistake 5: Poor customer service: In any service industry, customer service is paramount. Train your employees to be friendly, helpful, and efficient. Create a welcoming atmosphere and address customer concerns promptly. Loyal customers are the backbone of any business, so prioritize building positive relationships with them.
• #Mistake 6: Neglecting marketing: Don’t expect customers to flock to your car wash simply because you’re open. Develop a marketing strategy to reach your target audience. Consider promotions, loyalty programs, and digital marketing to generate interest and brand awareness.
• #Mistake 7: Slacking on maintenance: Regular maintenance is essential to keep your car wash running smoothly and efficiently. Schedule regular equipment inspections and service to avoid breakdowns that disrupt operations and frustrate customers. A clean and well-maintained car wash environment is also important for creating a positive customer experience.

FAQs: How to Start a Car Wash

• What are the benefits of owning a car wash?

Depending on the type of car wash you own, some can be self-sustaining, with little maintenance and employees. In return, making it a very profitable business because of low over-head.

• What is the target market for a car wash?

The target market is usually best in urban areas with many drivers. New car owners are also a specific group to market to, who will always want to keep their brand new car smell and their vehicle in pristine condition.

• How do I make my car wash successful?

Giving exceptional customer service will create a winning relationship with customers. By creating that relationship, you will grow a loyal clientele. In addition to great customer service, put in a sense of care and urgency. It will ensure your services are worth the price and keep your customers returning.

• Is a Car Wash Profitable?

Yes, car washes can be profitable, with profit margins ranging from 20-55%. But, success depends on factors like location, competition, and how you run the business. Careful planning, strong marketing, and excellent customer service are all key ingredients for a thriving car wash.

Mahougnon Martial Amoussou

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Car Wash Business Plan

The business of car washing has been around for over a century. Back in 1914, Automated Laundry, the first-ever car wash business, launched in Detroit. Fast forward to today, countless car wash businesses are serving customers around the world. If you have plans to open a car wash, you should make it a reality. The best thing about the car wash industry is that there’s not one company having major control of it. Every aspiring car wash business owner has an equal chance to earn a steady footing. With that said, we invite you to use our Car Wash Business Plan Examples and start planning your profitable car wash business!

10+ Car Wash Business Plan Examples

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What Is a Car Wash Business Plan?

A car wash business plan contains info about a car wash business’s goals, operations, and strategies. It’s just like any other simple business plan ; the only difference is that it focuses on a car wash business, as its name implies. A car wash business is a type of dynamic commercial cleaning business. Because of that, you have to prepare a lot of things to open one. And that’s why you need a car wash business plan doc to have a recorded, written guide of what you must do and accomplish.

How to Get More Customers for Your Car Wash Business

One of the major challenges in owning a car wash business is getting customers. So before we show you how to make a car wash business plan, we’ll share some tips to bring more people to your car wash.

Locate Your Car Wash on a Busy Road

Right from the beginning, when you first have the idea of opening a car wash, your plan should be to locate it on a busy road. It doesn’t matter if you make thousands of car wash flyers, build a billboard , print  posters , or distribute  brochures to attract people. They won’t help much if you establish your car wash in a remote area. It’s simple. Busy roads have more cars passing by it regularly. And more cars means more customers will come across your car wash.

Stay Open for Longer Hours

Some of your potential customers might be late-night drivers. So you should consider staying open for longer hours. This might require you to hire more attendants. But it’ll pay off because you’ll have more customers at night. You can even let your car wash operate for 24 hours a day. Vehicles such as taxis and delivery trucks are traveling at night. Their drivers could stop by your car wash and let their vehicles experience your cleaning services. Speaking of delivery trucks, you can exclusively add truck wash services to your business.

Establish a Customer Referral Program

Another method to attract more customers to your car wash is by encouraging your regular customers to invite their friends and family. The best approach for that is by establishing a customer referral program. You can reward discount coupons , gift certificates , or cool merch to your customers who can successfully bring people to your car wash. That should motivate them to find referrals for you.

Be Wary of Customer Reviews

Customer reviews have a significant impact on your business. It could either be good or bad. Regardless, you have to keep your eye on them. Customer reviews are your means of knowing the positives and negatives of your car wash. Subsequently, you’ll know what improvements your business needs. Your aim should be to earn positive reviews consistently. Thanks to the internet, reviews could spread like wildfire in the market. So if you can achieve good reviews, that means more people could deem your car wash as a dependable cleaning service business.

You can use survey questionnaires to ask for your customers’ feedback.

How to Create a Car Wash Business Plan

According to a BrandonGaille report, over the past decades, there has been a 69% increase among car owners who depend on car wash facilities for car cleaning. The most probable reason why that’s the case is that people simply don’t have the time to wash their cars themselves. With that in mind, operating a car wash is an excellent business to have today. So without further ado, here’s our quick guide in making a car washing business plan proposal .

 Create a Business Profile

A business profile is an executive summary of everything about your car wash business. It should serve as the introductory section of your business plan. In it, you can talk about what inspired you to open your car wash, and also what you want obtain from it. Of course, you must state its name, possible location, and your name as its owner.

Provide Descriptions of Your Operating Procedure

It’s understood that your services are car washing. But know that each car wash business has its own way of doing things. That said, you should provide details of your possible standard operating procedures or SOP. Show the readers of your business plan what makes your services distinct from other car wash businesses. Well, more or less, you’ll have similar SOPs with your competitors. But at least try to add something that makes yours unique.

Explain Your Marketing Strategies

Marketing is vital in running a car wash business. It’s a practice that enables your business to garner attention in the community and obtain customers subsequently. Without it, your car wash’s potential to generate revenue and profit will be extremely low. So make sure to perform a thorough marketing analysis of your local car wash industry. After that, devise your marketing plan and integrate it into your car wash business plan presentation.

Plan Your Startup Budget

A startup budget is your launching pad to begin the real work in bringing your car wash to life. So plan it well and make it enough to purchase everything you need. For this matter, you have to gather every financial resource or asset at your disposal. In preparing your budget, our advice to you is to have a cost-effective mindset. Try to find the cheapest alternatives for equipment and tools without jeopardizing quality.

How much can I earn in my car wash business?

Car wash business profit is every car wash business owner’s motivation. Of course, you’d want to know how you can earn from your car wash. So here’s our answer to your question: An article by JBS Industries says that a self-service car wash can generate $1,500 of revenue monthly. Whereas, an in-bay automatic car wash can generate $139,000 of revenue annually, which can accumulate an $86,531 annual profit.

What are good ideas to renovate my car wash?

As your car wash business grows, you’re going to want to renovate it. So here are some good ideas for that:

• Add a waiting lounge, with cable TV and WiFi access
• Install vending machines and massage chairs
• Install state-of-the-art car wash equipment and machinery
• Add car repair services
• Transform your car wash into a truck-friendly facility

How can I promote my car wash?

Here some excellent methods to boost the promotion of your car wash business:

• Create social media pages dedicated to your car wash
• Build an official website for your car wash
• Implement a customer loyalty program
• Offer additional car-related services
• Build partnerships with established car brands

Along the way, you’re going to encounter hurdles in managing your car wash. You see, running a business is never a cakewalk. But with a well-structured business plan as your guide, you can accomplish great things with your car wash. For that, you should take advantage of our examples of car wash business plan docs. Go ahead and start conceptualizing your car wash business now!

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Setting up a Car Wash Business

All you need to know about starting and running your business.

In this article

What is a Car Wash Business?

In 2022, there were more than 40 million licensed vehicles in the UK, with the majority of these vehicles being cars. With approximately 1.24 cars per household and the number of cars in the UK steadily increasing, now could be a great time to set up a car wash business.

A car wash is a type of business that cleans the exterior and sometimes the interior of cars. It may also include detailing the vehicle fully.

There are several different types of car washes, with different equipment and different levels of service. When choosing the type of car wash business to set up, consider your budget, the types of services you want to offer your customers and the likely demand in your chosen location.

When setting up your car wash business, you can choose to set up:

An automated car wash

In an automated car wash, the vehicles are not cleaned and serviced by employees; instead, a series of machines work in synchronicity to clean the cars.

There are two main types of automated car wash:

• Conveyor wash: In this type of car wash, the driver drives the vehicle onto a conveyor belt inside a long tunnel. The conveyor belt methodically moves the vehicle forward into different areas where a series of coordinating machines work together to clean the car.
• Roll-over wash: This is a compact car washing machine that is equipped with a variety of washing systems, car washing products and chemicals and drying systems. The driver drives into a bay and remains stationary whilst cleaning equipment moves (rolls over) over the vehicle.

Automated car washes can include contact cleaning, where soft-cloth brushes are used to wipe away dirt and grime, and touchless, where high-pressure water jets and detergents blast wash dirt and grime off the car.

A full-service car wash

A full-service car wash involves thorough car cleaning by employees, with the aid of equipment and machinery. A full-service car wash typically offers both exterior and interior vehicle cleaning. The services can vary, and customers can usually choose exactly what services they require, e.g. polishing, waxing, tyre and wheel detailing and mat cleaning. A full-service car wash provides quality auto detailing procedures that are designed to clean and maintain the vehicle and prolong the vehicle’s life.

A self-service car wash

Customers pay a significantly lower price to clean their cars themselves. The car wash business will provide any cleaning equipment, such as high-pressure water hoses, vacuum cleaners, tyre inflators and cleaning chemicals but will not be involved in the cleaning of the car. This type of business may be situated at a petrol station or service station and will likely feature an automated pay station and no employees.

A car wash that focuses on cleaning the exteriors of cars is designed to offer a quick and efficient service that requires little wait time for customers and is a more affordable price. Car detailing is a much more thorough process that aims to restore the car to a near-new condition. Car detailing can take significantly longer (sometimes several hours) and costs a significantly higher price.

The types of services you choose to offer will vary significantly, depending on the type of car wash business you set up.

Some of the services customers might want from a car wash include:

• Removing dirt, grime, dust, insects, bird faeces and grease.
• Soaping, rinsing, cleaning, sanitising, washing, shining and drying the body of the car.
• Polishing and waxing the paint.
• Tyre and wheel detailing.
• Window and windscreen cleaning.
• Cleaning the engine.
• Interior detailing, including vacuuming, cleaning the upholstery (e.g. shampooing the seats), cleaning the rugs and cleaning the interior hardware (e.g. steering wheel, handbrake, dashboard, console).
• Sanitising the air vents.
• Paint restoration.
• Undercarriage washing.
• Headlight and rear light reconditioning.

As well as the services listed above, you will have other responsibilities associated with running a car wash business, for example:

• Purchasing, cleaning and maintaining equipment and machinery.
• Ensuring your business complies with all safety regulations, including fire safety and electrical safety.
• Pricing your services.
• Handling quotes and customer payments and preparing invoices.
• Advising customers on how best to look after their vehicles.
• Managing inventory and ordering cleaning products.
• Marketing and advertising.
• Completing business and administrative tasks.

Starting up a car wash business can be extremely lucrative. To help your business succeed you will need an understanding of how car wash businesses operate and a strong business plan. Good organisational skills, good physicality (if you will be involved in the car washing services), strong interpersonal skills (to help you communicate effectively with customers) and knowledge of the relevant health and safety regulations can also be advantageous.

Types of Customers

Although your typical customer base could be made up of anyone with a car, certain factors can influence the specific types of customers who frequent your business.

Defining your target market makes it easier to focus on the specific customers who are most likely to pay for your services and determine exactly where and how to market your business.

Some of the factors that can influence your typical customer base include:

The type of car wash you set up and the level of service and detailing you offer

This is one of the most important factors in determining your typical customer base. An automated car wash is likely to attract customers who are looking for a quick, convenient and cheap car wash whereas a full-service car wash that offers additional services, such as waxing, paint restoration and headlight restoration, is more likely to attract customers who want a luxury service and are happy to pay extra money to take care of their car (for example, car enthusiasts and the owners of expensive or valuable cars).

Your location

This is another important factor in determining your typical customer base, as vehicle owners typically choose a car wash that is conveniently located to them. This could include a car wash that is close to their home or place of work. Some car wash owners choose to set up their businesses in a commercial location with a high volume of vehicles. For example, you could run your business from a shopping centre car park, offering shoppers a car wash or valet experience while they shop. Consider the location of your business to get a good indication of your typical customer base.

Your pricing

This will be a key factor in determining your typical customer base.

Customers can typically be separated into different pricing tiers:

• Budget: Price is the most important factor for this type of client. They will likely be happy with fewer services and a less thorough car wash, as long as the price is low.
• Mid-range: This type of client is looking for a combination of quality and affordability. Although price won’t be the most important factor, it will be a significant consideration.
• High-end: This type of client is willing to pay the highest prices for the best possible service. They will likely want the highest quality cleaning materials and equipment, the most thorough car wash and additional cleaning and restoration services. These factors will be more important than price.

Your branding, marketing and advertising

How you opt to advertise and market your business can impact the potential clients you reach. Your business name and logo, the aesthetic and design of your business and the design of your website or physical location can also impact your typical clients.

Your reputation and customer reviews

This is another important factor that many people will look at. They may look at your customer reviews or choose a car wash based on recommendations.

Your reputation and reviews will likely be based on multiple factors, such as:

• The quality of your service.
• How you interacted and communicated with clients.
• Your pricing.

Equipment You Will Need

Equipment is an essential purchase, as without it you will not be able to run your business. The type and amount of equipment you require will depend on the type of car wash business you set up, the services you offer and the size of your business (i.e. how many cars you have the capacity to clean at one time).

Below is a list of equipment typically required by a car wash business.

An automated car washing system

If you open an automated car wash, you will need to invest in an automated car washing system, such as a conveyor tunnel. Your conveyor tunnel will need to have large dimensions (to fit larger cars, such as 4x4s and people carriers), advanced technology with synchronised machinery and effective washing, cleaning and drying equipment. Having a conveyor tunnel made from stainless steel can help to prevent rust and make it easier to keep your car wash clean. Your system should also come with a countdown traffic light, telling customers when they can enter and exit the conveyor belt. You can choose from a flat belt conveyor system or a chain conveyor system.

High-pressure water equipment

You will need high-pressure hoses and washing systems to help you remove stubborn dirt and grime and ensure a more efficient clean. High-pressurised water can remove dirt from hard-to-reach areas, including the undercarriages and roofs of cars. Having a high-pressure washer system also allows you to offer touchless car washes. Your equipment could also include water guns (to turn the chemical and water spray on and off) and wands that have a variety of spray tips and nozzles.

A closed-loop reclaim system

You will need this type of system (or something similar) to ensure the economical use of water. The system is designed to recycle, filter and reuse water. It allows you to use and reclaim water through a filtration system. Used water will be captured in the reclaim system and filtered so it can be reused. A water reclaim system allows you to use water more economically and ensure your business is environmentally friendly, while also helping you to keep your water bills down.

Cleaning chemicals

There are a variety of different chemicals you can use to clean, wash and rinse the cars. You can choose from liquid chemicals, foam-based chemicals and gel chemicals.

Car washes typically use a wide selection of chemicals, including:

• Pre-soak: This is applied prior to the cleaning process. It prepares the surface of the cars for cleaning and waxing.
• Drying agents: This is a chemical compound that removes water from surfaces and helps it to evaporate more quickly.
• Protectants: Surface protectant chemicals help to form a chemical barrier to filter out potentially harmful UV rays. They also make it more difficult for contaminants to bond to the surface of the paint and can help to repel water.
• Wheel cleaners: Wheel cleaners can help to remove metallic contamination from your wheels and remove dirt, brake dust, grime, mud, tar and oil.
• Car shampoos: This is a cleaning product that removes the final layer or remnants of dirt from your car. It lifts and holds dirt ready to be rinsed off.
• Triple foams: Triple foam products are a type of conditioner and/or polish. They prepare the vehicle to accept sealant and protective products.
• Paint sealants/clear coat: This product penetrates the pores of the car to protect it from the elements. They provide short-term protection from UV light and weather.
• Glass cleaner: You will need to use glass cleaner on the windows and windscreens of the car to ensure a more efficient and streak-free clean. Glass cleaner can also improve driver visibility.
• Tyre shine: This gives black tyres a glossy finish. They can be water-based or solvent-based.
• Upholstery cleaners: These are specific types of cleaners that are used in the interior of cars. You will need different cleaners for leather, vinyl, fabric and plastic.

Cleaning brushes

Your cleaning brushes will be an essential aspect of your business. There are multiple types of brushing materials you may require, depending on the type of business you are setting up:

• Microfibre car wash brushes: This is a type of brush made from soft microfibre cloth that easily picks up dirt and grime from a car without scratching the paintwork.
• Wraparound brushes: This type of brush is most commonly used in a tunnel car wash. They are large (usually with a reach of 6 ft) with controlled cleaning pressure, for safe and effective cleaning. They work in a circular motion in the direction the car is moving to give a higher quality clean.
• Wheel brushes: These are used to clean the rims of your vehicle. They are shaped specifically (usually long and thin) and can bend and contort to go between the spokes of your wheels and behind the wheels to ensure a more thorough clean. They are made from specific materials to ensure they do not scratch or mark the surface of the wheel.
• Tyre brushes: There are multiple different types of wheel and tyre brushes, made from different fabrics, bristles and different materials. They can be used to remove dirt, oil and grime from between the treads and grooves of the tyre and from the tyre sidewalls.
• Brushes with hose attachments: This type of brush allows you to clean and brush the exterior of the car while also rinsing away any soap or residue that is left on the vehicle. They are typically used at the end of the service.
• Sash detailing brushes: This is a small brush with soft bristles that can be used to clean both the exterior and interior of cars. They are most often used for small, hard-to-reach areas, such as interior vents, dashboards, grills and alloys.
• Interior cleaning brushes: These are used for cleaning leather, fabrics and plastic surfaces in the interior of cars.
• Pet hair removal brushes: Removing pet hair from the interior of a car is a common request from customers. A pet hair removal brush is a more efficient way of removing stubborn pet hair, compared to other methods such as vacuuming.
• Carpet brushes: This is a type of heavy-duty brush that has stiff bristles, making it more durable. It allows you to scrub carpets more intensely and efficiently.

Cleaning cloths

Cloths are another type of cleaning material that will be essential to your car wash business. Some of the cloths you may require are:

• Window cloths: This type of cloth is specifically designed for cleaning and wiping windows and windscreens. They are usually absorbent and lint-free, to ensure no residue is left behind on the windows.
• Microfibre washcloths: These can be used for a variety of tasks, as they are made from soft material and are particularly capable of collecting dirt and dust. They can be used on both the exterior and interior of the cars.
• Detailing cloths: High-quality detailing towels can be used on paint, without causing scratches and damage. They can be used to wipe off dirt, dust, grime and debris, as well as to help you apply wax to the car.
• Drying towels: You will need to choose drying towels that will not damage the paintwork of the cars and won’t leave any streaks.

You will need different types of nozzles for different tasks. They provide different pressures and types of water delivery and can be used to achieve total coverage when applying chemicals.

There are multiple different types of nozzles you can opt for, including:

• Flat spray.
• High-impact streams.
• Low-impact streams.
• Wide angles.

Wax applicators

If you offer car waxing, you will need specific equipment to apply wax to the cars. You may opt for a wax arch, which is formulated to work on glass, chrome, rubber, metal and plastic and forms a water-resistant coating. You can opt for a foam applicator that generates foam wax using tubes fitted with special nozzles. Alternatively, you can choose a nozzle applicator that applies liquid wax using the same types of nozzles that you will use for rinsing the cars with water.

You will need a dryer system that uses high-pressure air to remove drops of water from the vehicles. This ensures that the cars are streak-free and do not have water spots. You can opt for a full-sized dryer that the car drives into or a smaller, handheld blower or dryer.

Vacuum cleaners

You will need cordless, handheld vacuum cleaners that can be used to collect dirt, dust, hair and other debris from the interior of a car. Ensure your vacuum cleaners are lightweight and compact and have an extendable nozzle to help you tackle tight, hard-to-reach areas, such as the sides of the seats.

Buckets and sponges

This is a necessary piece of equipment for a car wash business and allows you to wash certain parts of the car by hand. You can fill the buckets with warm, soapy water or specific types of cleaning chemicals.

Buffing tools

Buffing tools, sometimes known as polishers, can be used for dealing with light scratches, eliminating swirl marks, removing damaged paint and helping to shine the paint.

Undercarriage wash applicators

This type of equipment is used to clean and rinse the underbodies of the cars. They deliver high volumes of water to the underneath of the vehicles to remove dirt, grime and salt.

A website is useful for advertising your business and could act as your primary advertising strategy. Your website should list the types of services you offer, descriptions and photographs of your previous work, your location and your contact information. Design your website to include your business logo and to reflect your branding.

Personal Protective Equipment (PPE)

PPE can help to protect you and your employees, particularly when handling chemicals and potentially dangerous equipment. PPE can help to protect your skin, respiratory system and overall health and safety.

Some of the PPE you could opt for includes:

• Goggles or safety glasses.
• Face masks.
• High visibility clothing.
• Waterproof, steel-toe-capped boots.
• Chemical-resistant aprons.

Brochures, leaflets and business cards

These items are essential to your marketing and advertising strategies. These items should look professional, be made using high-quality materials and fit the design and aesthetic of your business. Ensure all of these items feature your contact information so potential clients can get in touch with you.

A fully stocked first aid kit

Accidents and injuries can easily occur in this type of environment. Some injuries will be minor and can be treated onsite. Others may require medical intervention but initial treatment using items in a first aid kit can reduce the severity of the injury. Ensure your first aid kit is stocked with items to treat cuts, burns and sprains.

A CCTV system

CCTV can protect your business from potential break-ins and theft. A CCTV system can cost between £300 and £5,000 depending on the specification of the equipment, how many cameras you require, and the installation costs.

Automated payment machines

Self-pay kiosks will be a necessity for automated and self-service car washes. Customers can use the machines to choose their car wash or service and make a payment, either with cash or on their card. The machine will then produce a ticket or token that the customer can use to access the car wash or the cleaning equipment.

Reception and admin equipment

Some of the equipment you may require for your reception are:

• A cash register and Point of Sale (POS) system.
• A laptop or computer.
• A phone – for customers to make appointments.
• An appointment book or scheduling software – to keep track of appointments and cancellations.
• A reception desk and chair.
• Business cards and appointment cards.
• Pricing signs and opening hours signs.
• Shelving for displaying products.

A waiting area

Depending on the type of car wash business you set up, whether your clients need to exit their cars (e.g. for interior cleaning) and how long each vehicle will take, you may require a waiting area, with equipment such as:

• Comfortable chairs.
• A coffee machine or water cooler.
• Magazines and newspapers.

Typical Costs

When you are planning your car wash business, you will need to calculate the approximate costs associated with setting up and running this type of business. Calculating your typical costs allows you to estimate your initial investment requirements, any monthly and annual costs, your pricing strategy, your profit goals and your acceptable profit margins.

There are multiple costs associated with setting up and running a car wash. Some of these costs will be one-off initial costs that you will need to pay when you are setting up your business. Other costs will be ongoing costs you will need to pay regularly – usually weekly, monthly, quarterly or annually.

The typical costs associated with a car wash business can vary, depending on whether you offer full-service, self-service or automated car washing, the type of car wash services you offer and the size of your car wash.

The typical costs you can expect include:

Your business location will likely be your biggest expenditure. You will need a large car parking or outdoor area so that you can work on multiple cars at one time, have space for customers to queue up or wait and have enough space to install your car washing equipment. You will need to rent your premises on a monthly or annual basis. Rental prices can vary significantly, depending on the location and the size of the premises. City centres or busy locations usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually. Prices may differ if you operate your car wash from another business’s premises, e.g. from a petrol station or shopping centre car park.

Refurbishment and installation costs

Unless your premises previously operated as a car wash business, you will likely need to refurbish or convert your premises to install the equipment you need for your business and make the area fit for purpose. You will also want to refurbish and design your premises to fit the aesthetic of your business and make it attractive to customers. Renovation costs can vary, from £500 to £20,000 depending on the level and scale of work required. Renovation costs could also include installing water lines, pipes, a water tank and electrical systems.

Your equipment will likely be a major expenditure when setting up your business. Your equipment costs can vary, depending on the type of services you offer, the size of your premises and how many cars you want to clean at one time. To reduce your start-up costs, you could buy only essential equipment initially and then purchase more equipment as your business grows. You can expect to spend between £3,000 and £50,000 on equipment.

Maintaining, repairing and replacing equipment

Repairs, maintenance and replacements are ongoing costs you will need to factor into your budget. Although some of your equipment and machinery will come with warranties or guarantees, repairs and replacements are inevitable because much of your equipment will experience heavy usage, may be used in a variety of weather conditions and can come into contact with harsh chemicals. Cleaning and maintaining equipment and ensuring it is used correctly can extend its life, but potential repairs and replacements should still be factored into your budget.

Cleaning materials

This is an ongoing cost you will need to factor into your budget. You will need to make regular orders for chemicals such as pre-soak chemicals, drying agents and tyre cleaners. You will likely also need to regularly replace cleaning materials such as sponges and cloths. To reduce the cost of your cleaning materials, purchase in bulk and purchase directly from the wholesaler.

Running costs

These are the day-to-day costs associated with running your business. Some running costs are paid monthly, and others are paid quarterly or annually. Your most significant ongoing cost will likely be your water bill, as you will be using unusually large amounts of water every day. Other running costs can include electricity, gas, council tax and insurance. To maximise your profits, try to keep your running costs as low as possible.

You will need to hire staff to help you run your car wash and increase the number of cars you can work on at one time. You will need to pay any staff you employ at least the national minimum wage and account for other expenses such as holiday pay, sick pay, maternity/paternity pay, National Insurance and any company pension contributions.

When creating your brand identity, consider how you want your car wash business to be perceived by potential customers. When creating your brand, consider the type of car wash business you are setting up, the services you will offer and your typical customer base. Branding can include creating your business’s visual identity, design and aesthetic, your business name and logo, your signage and your website. You could hire a professional to help you with branding or do some or all of the work yourself. Branding can cost between £500 and £10,000, depending on the level of work required.

Advertising and marketing

To ensure your car wash attracts customers and creates maximum profits, you will need to spend money on advertising and marketing. It is recommended that you spend between 1%–3% of your annual turnover on marketing. For example, if your annual turnover (or your desired annual turnover) is £90,000, you should spend between £900 and £2,700 on advertising and marketing. You may need to invest more money when you initially set up your business or when you are trying to grow your business. To reduce your costs, capitalise on free marketing strategies, such as on social media or in your local community. Once your business is established, you should be able to reduce your advertising costs.

Business insurance

There are multiple coverage options available for a car wash business. Some types of coverage are optional, whereas others are mandatory.

Your coverage options include:

• Public Liability Insurance.
• Employers’ Liability Insurance.
• Professional Indemnity Cover.
• Building and Contents Cover.
• Personal Accident Insurance and Accidental Death Cover.
• Financial Loss Cover.

Prices can vary, depending on your insurance provider and the level of coverage you choose. Prices typically start at £15 per month.

Typical Pricing for Customers

Once you have calculated the expected costs associated with setting up and running your car wash business, you can then determine your pricing.

Your pricing strategy will depend on multiple factors, such as:

• The type of car wash you run (e.g. automated or full-service).
• Whether the customer opts for exterior only or exterior and interior cleaning.
• The types of services provided.
• The type and size of the vehicle (e.g. larger vehicles are usually charged at a higher price).
• Your location.
• Your business’s reputation.
• How long each car wash will take.
• Your equipment and machinery.

You may charge a set fee (e.g. £8 for a basic car wash) and then charge additionally for each service. Alternatively, you could offer exterior and interior cleaning packages. If you run an automated or self-service car wash, your pricing will be set, and customers will likely make cash or card payments at a payment machine.

Safely Running a Car Wash Business

Safe practices in your car wash business can help to protect the health, safety and well-being of you, your employees and your customers. Safe practices are also designed to protect the vehicles you are cleaning and prevent any damage or incidents from occurring.

Some ways you can safely run your car wash business include:

Ensure contaminated water does not enter the drainage system

As the business owner, it is your responsibility to ensure you protect the environment and prevent contaminated water (e.g. the water you have used to clean the cars) from contaminating the environment and water sources, such as rivers.

Some procedures you could implement include:

• Make a drain plan (e.g. the types of drains on your property and where they discharge to).
• Check your drains regularly for blockages and leaks.
• Paint any manhole covers according to the standard code (blue for surface water, red for foul water and a red ‘C’ for combined water).
• Install an oil separator.

Create a pollution incident response plan (PIRP)

A pollution incident response plan is a procedure that can be implemented to minimise pollution in the event of a leak, a spill or a fire. Your PIRP should be tailored to your premises and the type of pollution that could occur.

Your PIRP should include:

• Emergency contact details.
• A product safety data sheet (PSDS).
• A layout plan of your premises.
• Details of the drainage arrangements on your premises.
• Information about emergency response equipment.
• Details of your emergency procedures.
• How to report incidents.
• A summary of your business.

Ensure chemicals and potential pollutants are stored correctly

To prevent chemicals from leaking or spilling, you must ensure that:

• Any chemical containers are in good condition.
• You inspect the containers regularly.
• Chemicals and other pollutants are protected from theft or vandalism.
• Chemicals are protected from floods.
• All chemicals are clearly marked with the potential risks and hazards.
• Hazardous and non-hazardous waste is stored separately.
• Chemicals are stored in a cool, dark, dry place.

Use water efficiently

Using water efficiently and recycling or reusing water in your business can help to protect the environment and help you to run your business more economically.

Some ways you can ensure you use water efficiently include:

• Set up a water recycling system or install facilities that enable you to filter and reuse water.
• Use trigger-operated spray guns so that you can control the amount of water you are using.
• Treat wastewater from vehicle cleaning (e.g. by using collecting systems).
• Use an oil separator to remove oil, grease, petrol or diesel from any used water.

Protect you and your employees from potentially hazardous substances

Exposure to chemicals and potentially hazardous substances can have a detrimental effect on the health of you and your employees. To minimise the risks, PPE should be used at all times. This includes gloves (to protect the hands from chemicals and oil), goggles (to protect the eyes from chemical sprays and steam cleaning) and masks (to prevent you from inhaling brake dust, chemicals and paint and to protect your airways and lungs).

Properly maintain and set up equipment

Any equipment you use in your business must be properly maintained, correctly set up and safe to use. You must protect yourself, your employees and your customers from accidents or injuries caused by equipment. You should also perform regular equipment inspections to ensure your equipment’s safety and help extend the lifespan of your equipment. Maintenance includes dusting, cleaning and washing equipment regularly and checking it is functioning correctly.

Check and maintain electricals, electrical outlets and plumbing

Not only can this save you money by avoiding damage, repairs and replacements, but checking and maintaining electricals and plumbing can help to protect your equipment from faults and protect the health and safety of everyone who visits your business. Implement a system for regularly checking outlets and plumbing and ensuring they are up to code.

Carry out risk assessments

Risk assessments are a legal requirement for businesses with more than five employees. However, even if your business has fewer than five employees, risk assessments are still recommended to ensure the safety of you, your staff and your customers. Risk assessments can help you to identify any potential hazards and risks in your business and how these can be reduced or eliminated.

As part of your risk assessment, you should:

• Identify hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

Implement safety measures

There are multiple safety measures you can implement to protect your business, your employees and your customers, including:

• Install fire alarms and smoke detectors.
• Install a CCTV system.
• Keep a fully stocked first aid kit.

Obtain health and safety training

Obtaining health and safety training can ensure that you and your employees follow safe practices at all times.

Some training courses you could opt for include:

• Manual Handling.
• Workplace First Aid.
• Assessing Risk.
• PUWER Awareness.
• Fire Safety Awareness.
• COSHH Awareness.

Legal Requirements

Complying with legal requirements is essential when setting up and running your car wash business.

Failure to comply with legal requirements could not only result in an accident or injury, but you could also face consequences such as a warning, a fine, the forced closure of your business or, in serious circumstances, prosecution.

Some of the legal guidelines you should be aware of include:

Comply with pollution prevention guidelines

Pollution prevention guidelines apply to all vehicle washing and cleaning by any method (including automated car washes and handwashing). Any effluent and run-off from washing vehicles have the potential to include pollutants (such as dirt, brake dust and oil) that could contaminate and damage the environment. To prevent pollution, you must ensure that your business does not discharge any effluent or dirty water into the sewage system without first seeking permission.

To ensure compliance, your business should:

• Be designed in a way that avoids or minimises the amount of contaminated water you are producing (e.g. implement a drying system).
• Use a designated washing area with proper drainage facilities.
• Arrange for the correct disposal of any waste.
• Have procedures in place in case of a spillage emergency.

Apply for a waste carrier registration

If your business transports waste or arranges for someone else to dispose of waste (for example, used water or oil), you will need to apply for a waste carrier registration. You will need to register as a lower-tier waste carrier if you live in England, Wales or Northern Ireland or a professional collector or transporter of waste if you live in Scotland.

You can apply for your registration with the following governing bodies:

• England: The Environment Agency.
• Wales: Natural Resources.
• Scotland: The Scottish Environment Protection Agency.
• Northern Ireland: The Northern Ireland Environment Agency.

Any contaminated water from your business should be recycled or removed by a registered waste carrier.

Apply for an environmental permit

You will need to apply for an environmental permit if your business uses surface water or groundwater to clean vehicles or if you plan to discharge wastewater or effluent into drainage systems or into waters such as rivers, streams, lakes or coastal waters.

Comply with the Environmental Protection Act (1990)

The Environmental Protection Act has several different regulations that you must ensure you comply with.

These regulations refer to:

• The disposal of waste chemicals and detergents.
• Energy efficiency.
• Pollution prevention and control.
• The disposal of waste to land, water and air.

Comply with regulations regarding storing and disposing of hazardous substances

Some of the substances you use as part of your business are classed as hazardous substances. This includes cleaning chemicals and car wax. Different local authorities may have different guidelines regarding hazardous substances, so contact your local authority or the Environmental Health Department for more information.

Comply with the Water Supply (Water Fittings) Regulations 1999

These regulations are designed to stop the waste, misuse, undue consumption, erroneous measurements and contamination of the drinking water supply. If you need to install pipelines or water fittings when setting up your business, you must ensure any plumbing work complies with these regulations, particularly if you work on a premises that has a public water supply connection.

Comply with the Consumer Rights Act 2015

The Consumer Rights Act is designed to protect customers from sub-standard work and overpriced services. It covers the selling, terms and condition and supply of services (including car washing) to ensure consumers are better informed and more well-protected.

Under this Act, your customers have the right to:

• Request that substandard work is redone or receive a price reduction.
• Challenge unfair small-print terms, conditions and costs.
• Reject work if the tradesperson (you) used their one chance to redo the service ineffectively (e.g. the car is not cleaned to expected standards).

Comply with the Provision and Use of Work Equipment Regulations (PUWER) 1998

PUWER regulations apply to you and any employees you hire. You must ensure any equipment is fit for purpose and is maintained and inspected regularly. You must also ensure that health and safety risks are minimised to an acceptable level, that you have the correct knowledge and training to use the equipment, and that protective measures are put into place. You must also ensure the equipment is used under appropriate conditions. PUWER covers all equipment, including car washing systems, chemical sprayers and wax applicators.

Comply with the Control of Substances Hazardous to Health (COSHH) Regulations

The COSHH regulations state that you must control any potentially hazardous substances. You must appropriately assess, control and reduce any risks or potential hazards and protect people from harm. COSHH can apply to hazards related to the chemicals you use, brake dust and oil and petrol residue.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. As injuries may be more likely in a high-risk business, because you will be working with potentially dangerous tools and hazardous items, appropriate recording can help you to recognise any mistakes or patterns and prevent future injuries.

Comply with the Manual Handling Regulations (1992)

Manual handling is an inevitable part of car washing and much of the day will be spent completing manual handling activities, including handling heavy and powerful equipment, reaching high and bending low (to clean the tops and bottoms of the cars) and repetitive movements (e.g. when wiping or brushing). Manual handling, especially when done incorrectly, can result in pain or injury. Following manual handling regulations can help to protect you and your employees from sustaining an injury or illness as a result of manual handling tasks.

Comply with fire regulations

You must ensure fire safety measures are implemented onsite, particularly because you are working with electrical equipment and chemicals. There are multiple fire regulations you must ensure you comply with.

For example:

• Perform a fire risk assessment.
• Comply with the Regulatory Reform (Fire Safety) Order 2005 .
• Implement any necessary fire safety measures.
• Implement emergency procedures and ensure these are clearly displayed on your premises.

Comply with the Electricity at Work Regulations (1989)

The Electricity at Work Regulations state that any workplaces that use electricals must construct electrical systems in a way that prevents danger, maintain electrical systems to ensure they are safe, ensure electrical equipment is checked by a competent person annually and conduct Portable Appliance Tests (PAT). This includes any electrical equipment or machinery you use to wash the cars.

Prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your business, who is responsible for specific tasks and how and when these tasks are completed.

Appoint a competent person

A competent person should be appointed to help your business meet your health and safety legal duties. You can act in this role yourself or appoint another person to fulfil this role. The competent person should have the skills, knowledge and experience to identify any hazards in your business and put controls in place to protect people from harm.

Comply with employment legislation

You must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Comply with invoice or receipt guidelines

You may make it standard that all of your customers receive a receipt or invoice once they make a payment to your business. Even if you don’t make it standard, some customers will request receipts or invoices.

You should include certain information in any invoices you create, such as:

• The word ‘invoice or receipt’.
• Your business name and address.
• A brief description of your work.
• The total you are charging the customer.
• The payment method.

Ensure your website complies with the guidelines

If you set up a business website, there are several guidelines you need to comply with, including:

• Privacy policies.
• Cookie legislation.
• Service descriptions.

Under the Equality Act (2010) you must also make reasonable adjustments to your website to ensure it is accessible to people with disabilities.

Comply with the Workplace (Health, Safety and Welfare) Regulations (1992)

Under these regulations , if your business has five or more employees you must ensure you conduct appropriate risk assessments, minimise any risks and maintain all equipment. You must also make sure high levels of cleanliness are maintained.

Appoint a first-aider

All workplaces in the UK must have an appointed first-aider. In the event of an accident or injury, you will then be able to administer the necessary first aid. Although a first aid qualification or certificate is not legally required, it is the easiest way to demonstrate your first aid training.

Apply for a music licence

If you play any music on your premises, you will need to apply for a licence with Phonographic Performance Limited (PPL) and/or a Performing Right Society (PRS) Licence . You can apply for both a PPL and a PRS online.

Register your business

You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information.

Register for self-assessment tax

This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.

As part of your tax responsibilities, you must:

• Record all forms of income and expenses.
• Complete an annual self-assessment tax return.
• Register for VAT if you earn above the threshold (currently £85,000).
• Pay National Insurance contributions.
• Keep a record of your business accounts for the previous five years.

Positives of Owning a Car Wash Business

Starting up a car wash business can be rewarding in many ways.

Some of the main pros associated with this type of business include:

A huge number of cars in the UK

With more than 40 million licensed vehicles in the UK, there should always be a demand for your services. Whether your business is based in a big city, in a town or in a village, residents and workers will have cars that need cleaning and maintaining, and this can result in higher profits for your business. The car wash industry is showing positive signs of growth, which makes it more likely that your business will succeed.

Choose the type of car wash you set up

As the business owner, you have complete control over the type of car wash you want to set up. You can choose a full-service, hands-on approach or an automated or self-service car wash. You can also choose the types of services and level of car detailing you want to offer and how and where to run your business. You can make the best decisions for you and your business, based on what is most likely to be profitable and your business preferences.

Opportunities for small businesses

Unlike many other industries, the car wash industry is not dominated by major companies or popular franchises. The majority of car wash businesses are small, independent businesses that operate in the local community. This results in more opportunities for small businesses and opens up gaps in the market for new businesses to succeed.

Easy to operate

This type of business is simple to set up and run, particularly compared to other businesses. You don’t need any specific skills or training and can set up your business with only a basic knowledge of how the machinery and equipment run. The car washing industry is easily accessible to the average person.

Potentially no staffing requirements

Many car wash businesses operate with no or minimal staff. If you run an automated or self-service car wash, your business can operate without staff for the majority of the time or with only one staff member present for safety purposes. This can reduce the cost of running your business and can reduce your managerial responsibilities; for example, you won’t have to worry about creating a rota, managing your staff or handling payroll.

Flexible working

As the business owner, you can choose your own workload and the number of hours you work. You can run your business around your personal life, for example, by only opening your business during the week. You can hire staff to take over the day-to-day running of your business and be as involved in the business as you choose.

Customer retention and recommendations

People often use the same car wash every time, particularly if it is conveniently located and provides good service. People often also recommend their favourite car wash to their family, friends or neighbours which can help you to grow your customer base and your business. This can help to maximise your profits and ensure the success of your business.

Varied work

Running a car wash involves many different tasks and different responsibilities. You can work on different types of vehicles and perform different services every day, meaning that every day is likely to be different. Varied work keeps your profession interesting and stops you from getting bored in your job.

Satisfying work

Seeing the results of your work and the satisfaction of your customers when they see their clean, transformed vehicles can be very rewarding. Knowing that your work can help your customers’ vehicles to run better and extend their lifespan can be very satisfying. You can have a lot of pride in what you do.

Unlimited income potential

The more experience and exposure you gain, the more successful your business will be. As your business grows and you develop a good reputation, you should also see your profits grow. You can charge higher prices and hire more staff and expand your business to increase your profits. A car wash business can have a high-income potential and your profit margins could be high. With a good business plan and strategy for growth, your business could have unlimited income potential.

Great for car enthusiasts

If you are passionate about cars, working in this industry can be very rewarding. You will be working on a huge range of vehicles, including sports cars, vintage cars and off-road vehicles. You will have the opportunity to look inside the cars, speak to their owners and restore the cars to a like-new condition, which can be enjoyable and rewarding for someone who loves cars.

Be involved with the local community

You will likely operate your business in a location close to your home. This allows you to connect with people from your local area and become more involved in your local community. You can build personal and professional relationships in your community and get involved with community events, such as charity car washing.

Free advertising on social media

You can easily gain exposure on social media by posting photos or videos of your work online. Your customers may also post pictures to their own social media accounts which will be seen by their followers. This can help you to gain exposure and be noticed online. Social media is a form of free advertising which can help you to grow your customer base and increase your income.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of car wash business you want to set up, the service you offer and whether you hire employees. You can make the best decisions for you and your business.

Negatives of Owning a Car Wash Business

Although running a car wash business can be rewarding in many ways, there are some potentially negative aspects to this type of business that you should be aware of.

It can be weather dependent

A car wash business can experience a significant disparity in business and income at different times of the year. During the times of the year when there is high rainfall (which can be most of the year in the UK), car owners are much less likely to pay for a car wash as the rain can wash away much of the dirt and debris or they may think there is little point in washing their cars when the roads are so muddy. This can result in very little business and low profits, particularly when compared to the summer months when people are more likely to get their cars cleaned.

Many people clean their cars themselves

Many car owners prefer to clean their cars themselves, rather than pay someone to do it for them. All you really need for a basic car clean is a hose, cleaning products and a vacuum cleaner – which many people already have in their homes. This can result in decreased demand for your services, particularly as the cost of living increases and people look at how to save money.

Equipment is expensive to buy and costly to maintain

Regardless of the type of car wash you set up, purchasing your equipment will be a major expenditure. Your equipment will also require regular maintenance and you may face frequent outgoings to maintain or repair your equipment. At some point, your equipment will need to be repaired or replaced, which can significantly affect your profits.

Relying on equipment

Your business is completely dependent on your equipment and machinery functioning correctly. If any of your equipment develops an issue or breaks, or there is an issue with your plumbing or electricity, you will not be able to run your business, which can result in a huge loss of income. It can also make your business appear unreliable to customers.

High competition

With so many already established automated and full-service car washes in operation, you will face high competition. It can be difficult to establish yourself in the market and develop a customer base if there are already reputable car washes in operation in your area. Customers are more likely to choose a car wash they have visited before or that has been recommended to them, making it difficult for new businesses to enter the market.

High start-up costs

Setting up a car wash business requires a large initial investment. Renting your business location and purchasing equipment and machinery can be expensive. Not only does this mean you might need to source outside investment, but it also makes your business high-risk. It will also take you longer to begin turning a profit.

High overhead costs and low-profit margins

A car wash has higher overhead costs than many people realise, including your rental costs, running costs and staffing costs. With the rising cost of energy bills (particularly water and electricity) and a higher national minimum wage, you may find that your profit margin is lower than you expected.

It can be difficult to grow your business

Although it is relatively easy to set up a car wash business, it is not a particularly scalable business. Because the industry is so competitive, it can be difficult to grow your business, upsell your services and open additional car washes. Difficulties in achieving long-term growth can make it difficult to sustain your business long term.

Adhering to regulations

There are many different laws and regulations you need to be aware of, including environmental laws and regulations that are designed to protect your employees and customers. Failure to comply (even if it is not intentional) could result in an injury or a serious incident (such as a fire) and could result in you being fined or prosecuted. Complying with all requirements can be time-consuming and expensive and can result in additional stress.

Potentially dangerous

No matter how careful you are, there is a multitude of potential hazards and dangers when working in a car wash. From potentially dangerous equipment and working conditions to the potential exposure to hazardous chemicals and biohazards such as dirty water. There are also other hazards associated with working in wet conditions and working with equipment and materials that pose a fire risk. A car wash business could experience injuries or illness, to you or your employees.

Difficult customers

Some of your clients may be demanding in their requirements and expectations and may request additional work or expect you to remove difficult dirt from the interior and oil stains on the wheels, even on the most basic car wash package. They may expect you to complete their service in an unreasonable timeframe, with no understanding that you may have other customers to consider. To avoid complaints or negative reviews, you may feel like you have to cater to these customers, even if their demands are unreasonable. This can be stressful and time-consuming.

It can be physically demanding

Working in a car wash requires a lot of energy, physicality and manual handling. You will likely be handling heavy, cumbersome and potentially dangerous equipment and bending down or reaching high to clean the cars. You could also be using repetitive movements that cause pain or strain. Additionally, you will also be working with potentially hazardous chemicals regularly. Running a car wash business can have a negative effect on your physical health.

Potential damage to vehicles

No matter how careful you are, there is always a risk that a vehicle will become damaged at your car wash. Equipment, such as brushes, could cause scratches or damage to the paintwork and chemicals could damage the bodywork or interior of the car. Mistakes can be expensive, as you may be expected to fund the cost of repairs. They can also damage the reputation of your business.

It can be stressful

As the business owner, you will have a lot of important responsibilities, such as dealing with customers, handling your day-to-day responsibilities and ensuring health and safety. You will also face the additional pressure of being responsible for the success of your business. Running your own business can be stressful.

Irregular working hours

Car washes don’t typically follow a 9-5, Monday to Friday working week. Instead, to maximise profits, they have to be open in the evenings and at the weekend when customers are more likely to be available to bring their vehicles in. To result in more custom, you may have to open long hours every day and run your business 6 or 7 days a week. Not only can this be exhausting, but it can also have a negative effect on your personal life.

Your business could fail

Starting up your own business can be risky. Many new businesses fail which could result in you losing money or getting into debt. Your business could fail for several reasons, such as high local competition, an ineffective business plan or if the UK encounters another recession or a period of financial difficulty. Because a car wash business usually requires a high initial investment, the failure of your business could have a detrimental effect on your finances.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Bad reviews

Although the majority of customers leave honest reviews, some customers are difficult to please and will leave a negative review because of the smallest complaint (even if it is something outside of your control, such as a long wait time). Sometimes a fake customer also leaves a fake review, which can be extremely difficult to disprove and remove. Negative reviews can be extremely damaging to your business, particularly if your business is new or you’ve had relatively few reviews.

Planning Your Car Wash Business

If you are considering starting up a car wash business, an effective and well-designed business plan is essential. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

Your business plan should contain information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

When creating your business plan, some factors you will need to take into consideration include:

The type of car wash you will set up

This is the first consideration you will need to make when creating your business plan. You can choose an automated car wash, a full-service car wash or a self-service car wash. The type of car wash you set up will have a significant impact on your staffing and equipment requirements, your start-up costs and your likely income. Consider local demand, your available capital and how you want to run your business when determining what type of car wash you want to set up.

The services you will offer

Once you have determined the type of car wash you are setting up, you can then decide what services you want to offer. Will you focus on exterior cleaning or offer both exterior and interior services? Which services do you want to offer (e.g. car waxing, interior detailing and paint restoration)? Consider your own skills, training and experience and how profitable different services are likely to be when making your decision.

Your staffing requirements

Your staffing is an important consideration you will need to make. Your staffing requirements will depend on the type of car wash you set up and how big your business is. Your employee requirements could change as your business evolves and grows.

Your target market

Determining your target market is a key step in helping your business succeed. Different types of car wash businesses and different services will attract different customers. Some other factors that can influence your target market are your location, your reputation, your skills and your pricing strategy. Once you have identified your target market, you can then focus on how to attract these customers to your business.

Your local competition

Being aware of your competition is an important step to ensuring the success of your business. Analysing your competition allows you to look at what they do well and what you think can be improved upon. Look at the services your competition offers, their pricing, their target market and the number of employees they have. Analysing your competition also identifies whether there is space in the market for your business; for example, if there is already a successful self-service car wash operating in your area, you may choose to set up a full-service car wash instead.

Your brand and your unique selling point (USP)

Creating your brand is a key way to ensure you stand out from your local competition. Branding can help you to focus your target audience, attract clients and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity (e.g. your business name and logo) and creating a brand story. Your USP can also be part of your brand and can help your business stand out from your competitors. Consider what makes your business special and how this fits into what defines your business.

Your advertising and marketing strategies

There are many ways you can choose to advertise your business. This can include partnering with other businesses in your area, advertising in your local community, advertising on social media and using paid online ads. Your marketing and advertising plan should detail what your brand is and how you plan to promote your business. As part of your marketing strategy, consider the most effective ways to reach your target audience and attract potential customers.

Your equipment requirements

Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of car wash business you set up and the size of your business. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment.

Your start-up costs and running costs

Consult the list above to calculate your approximate start-up costs and running costs. Determining your approximate costs allows you to calculate your initial investment and what your monthly or yearly running costs will be. You can then calculate whether you can finance your business yourself. Being aware of your expected costs also allows you to create a budget, which is a key part of your business plan. Once you have calculated your approximate costs, you can then calculate your pricing policy and determine your profit forecast.

Financing your business

Consult the list of start-up costs and running costs above to determine what capital you will require. Can you finance the business yourself or will you need to source outside investment? You will also need to calculate when you are likely to begin turning a profit. If you require outside investment, you could consider a bank or other financial institution, a business loan or an investment partner.

Your pricing policy

How will you price your services? Will different types and sizes of vehicles have different pricing? Will you offer a base price or set packages? Will additional services be priced individually? Consider the pricing of your competitors and your overhead costs when setting your own prices.

Your sales forecast

How many cars can you work on at one time? What is the maximum number of cars you could clean per day? Are there certain times of the year that are likely to be busier than others? What are your weekly, monthly and annual sales forecasts? You can also analyse the sales forecasts of similar businesses and look at how sales vary throughout the year to estimate demand. As your business grows, your sales forecast is likely to change.

A strategy for growth

Your strategy for growth is the actions you will take to realise your goals for expansion and any potential challenges your business could face and how you will avoid or overcome them. This can help to make your business more successful.

Potential challenges could include:

• Bad weather affecting business.
• Long wait times deterring customers.

Some potential strategies for growth include:

• Hiring more employees.
• Focusing on full-service or valet services to increase your profits per vehicle.

Your business summary

Your business plan should include a detailed overview of your business, including the type of car wash business you are setting up, the services you will offer, your typical customer base, your staffing and equipment requirements and your business goals.

Your business goals

Your business goals or objectives are an essential part of creating your business plan. Your business objectives highlight the targets and goals of your car wash business and help you to create a one-year, three-year and five-year business plan.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Check you have complied with all legal requirements

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

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I.C.C. Prosecutor Requests Warrants for Israeli and Hamas Leaders

The move sets up a possible showdown between the international court and israel with its biggest ally, the united states..

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This week, Karim Khan, the top prosecutor of the International Criminal Court, requested arrest warrants for Israel’s prime minister, Benjamin Netanyahu, and the country’s defense minister, Yoav Gallant.

Patrick Kingsley, the Times’s bureau chief in Jerusalem, explains why this may set up a possible showdown between the court and Israel with its biggest ally, the United States.

On today’s episode

Patrick Kingsley , the Jerusalem bureau chief for The New York Times.

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Money blog: Can my lender end my fixed-rate mortgage early?

A reader wants to know why her two-year fixed mortgage is ending after 18 months - we get an expert to take a look. Read this in our weekend edition of the Money blog below and leave your thoughts in the comments box. We'll be back with regular updates after the bank holiday on Tuesday.

Monday 27 May 2024 21:09, UK

Weekend Money

• 'My mortgage lender is ending my two-year fix and I haven't been in the house for two years - can they do this?'
• How much is pocket money in 2024 and where are kids spending it? New data reveals all
• Inflation, election and energy bills: What a big week of announcements means for your pocket
• Ford engine problems, inflation data scepticism and BT landline switch: What readers have said this week

Best of the week

• What now for mortgages after inflation and election announcements?
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Ask a question or make a comment

Every Monday we get an expert to answer your money problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

I bought my first flat in April 2023 with a two-year fixed-rate mortgage. I got the deal with the help of a broker, who has now contacted me saying my deal is due to end in November - significantly earlier than I had expected. I've spoken to my lender - they said the deal I was on no longer exists. Is there anything I can do to keep my current rate?  Michelle, Kent

We asked David Hollingworth, associate director at L&C Mortgages , to answer this one...

Fixed mortgage rates do what they say on the tin and lock in the interest rate payable for a specified period of time.  Those periods will generally be blocked into market sectors and so are usually tagged as two, three or five-year fixed rates.  

Once that deal is taken, the terms cannot be changed by the lender and the rate can't be brought to an end early.

Some lenders will fix their deals for a specific number of years from completion, but a lot of lenders' rates will be fixed until a specific end date. That could mean that the fix will last even longer than two years at the point that the application is made.

However, it can take time to complete a deal, especially when purchasing a property which may be subject to a lengthy chain. 

Mortgage offers will typically be valid for up to six months. If you originally agreed to buy your flat before the end of 2022 then the deal on offer at the time could feasibly have been fixed until November 2024. 

That could have equated to two years or more when you applied but if it took some time to complete the purchase, it would explain why you feel that you haven't benefited from a full two years of the fixed rate.

It would be a good idea to look back at the original mortgage offer, which will specify all the product details. That will detail when the fixed rate ends and what rate the mortgage will move onto after that. 

That's likely to be a higher variable rate, so it makes sense to shop around for a better deal well before the current rate comes to an end. 

A broker will be able to help you work out the best available rates for you, whether from your current lender or from across the whole market. 

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about.  Submit your dilemma or consumer dispute via:

• The form above - you need to leave a phone number or email address so we can contact you for further details
• Email [email protected] with the subject line "Money blog"
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By Bhvishya Patel , Money team

Pocket money is in decline, data shows - but kids are finding new ways to pay for their everyday "essentials".

Data from the Natwest pocket money index  (looking at transactions from 308,000 children in the Rooster app) shows only 30% of families now pay pocket money as part of a regular routine (down 2%), with children getting £3.78 on average a week (down 10p from last year).

In fact, pocket money now makes up just 14% of children's income. Instead they're finding new income streams - with a typical child netting £479.96 a year (£9.23 a week) for one-off chores or entrepreneurship.

These "salaries" obviously differ for age groups... 

• £5.68 for a six-year-old 
• £24.71 for a 17-year-old

British children are now charging extra for chores and squeezing more money out of their side hustles.

• Car cleaning earned £3.25 on average - 32% (79p) more than a year ago
• Paper round earnings increased 2% (45p) to £23.10 a week
• However, it's been a less good year for reselling - with earnings down 15% to £22.62 a week.

Arguably the most interesting part of the data is where kids are spending their money.

Amazon was top, with Tesco and McDonald's next. Primark, Co-op, PlayStation, Xbox, Sainsbury's and Asda are next in that order - but there's no place this year for Apple, which has been replaced by fashion brand Shein, rounding off the top 10.

NatWest Rooster Money said "kids' money is completely changing shape"... 

"Kids are increasingly complementing [pocket money] in other, more sophisticated ways. This move to greater independence and maturity in their earning has been fantastic to see and bodes well for some bright, financially confident futures ahead." Will Carmichael, chief executive and founder of NatWest Rooster Money

An illustration of this maturity is kids' saving rate of 9.5% - not far off the adult average of 10.2%. Gaming, holidays and the future were the top three saving incentives, in that order.

Is there a right answer?

Kirsty Ketley, a parenting specialist from Surrey, said she gave her 11-year-old daughter Ella £5 and her seven-year-old son Leo £2 a week in cash.

They both started receiving pocket money when they were six.

"I often say to parents, even with children as young as four, it's fine to start giving a bit of pocket money because it's such an important life skill to have – to learn how to manage money because you don't get taught it," she said.

Presenter and children's author Konnie Huq, who has two sons, Covey, 12, and Huxley, 10, told the Money team that a regular pocket money allowance was a "really good way" of getting children into the habit of earning and spending.

She said receiving a regular allowance helped teach children "responsibility" and "financial literacy".

"That's what they will be doing as the grown-ups they become," she said. "I've always said kids are shaping and forming between 0 to seven. You want to put the values in them now in these younger years that they will take through with them in their life."

Sharon Olivero-Chapman, chief executive and founder of Harrienna Health, disagrees. She has always thought a regular pocket money figure is the "wrong message to give to children" - and her daughter Harriet, 13, is one of those raking it in from side hustles.

"Pocket money gives them the wrong association with money," she said. "They're just given money on a plate, whereas that's not real life, is it?"

Ms Olivero-Chapman said if her daughter did want to buy something she had to work out how she could get that money and would then be given chores to earn it. She said it was £1 to unload and fill the dishwasher, £1 to fill and empty the washing machine and 50p to make her bed.

"It's not a regular thing every week," she explained.

Ms Olivero-Chapman said the family's entrepreneurial bug had rubbed off on Harriet and she began running her own Etsy store business last year which sees her personalise phone cases. Her business has earned nearly £1,000 so far.

Your pocket money stories - how much, how and in return for what

The Dursuns, Scotland

Aga Dursun, 41, a PMO analyst from Erskine, gives her 13-year-old son Galip £3 a day and her nine-year-old son Troy £1 a day via transfers into a Starling account. They also get £20 each on her pay day. No chores are required.

"It gives them a lot of freedom and they learn the value of money as well because for example now if they want more expensive trainers they have to save up," she says.

"It's mostly spent on games which breaks my heart."

The Shaws, London

Sammy Shaw, from Enfield, said she gave her eight-year-old twins Teddy and Hope £3.50 a week via the Natwest Rooster Money card.

To earn the money, her son and daughter are set a number of activities which they must complete  - if they don't, money is deducted.

"My two have got an exceptional amount they have got to do. The first thing they've got to do is make their bed, get dressed independently. When they go downstairs they've got to do 10 minutes of practice on the keyboard, they do Times Tables Rock Stars (a digital maths app) and then 10 minutes of reading. 

"The parent has to go into the app and approve these activities and if they don't do them it takes percentages off."

Last year, the twins saved up to buy theatre tickets for the family at £35 a pop.

The Regulskis, Wales

Over in Caerphilly, Dean Regulski, 44, has a fairly similar routine: money in return for washing, ironing, dog walking, laundry and vacuuming. He and his wife give kids Emmeline, Nancy and Abraham (aged 12 to 15) £10 a week also using Rooster.

"Every time they want to make a transaction, it pings my phone so straight away I can have a conversation with them about what they are buying and if it's just sweets I can limit it on the app so it's a £1 transaction," Dean says.

"My son the other day was asking if he could buy something that was beyond the £40 and I said he can take it out next month but that will cost extra chores. I explained the concept of interest to him."

The Moores, West Midlands

Ben Moore, 40, from Solihull, said his 13-year-old twin daughters had got £5 a week in pocket money for the past two years.

They used GoHenry before switching to a debit card.

"We spent a year on GoHenry and it was good because we could say 'you can't spend it on McDonald's' and restrict the type of spending but there was a monthly fee for it," he said.

Chores are not a requirement as he is "really keen" his daughters use the money to "go out with their friends rather than just sit on their phones".

The Scotts, Wiltshire

Fiona Scott, 58, from Swindon in Wiltshire, said her three children Samantha, 24, Georgia, 22, and David, 17, all got pocket money until they were able to make their own money.

"We've always had a little book at home showing this is what is coming in and going out and this is what we've got to spend, so I've encouraged them all to do that in different ways. They've got used to seeing and understanding what a household budget is," she said.

The Joneses, West Midlands

Mother-of-three Jenny Jones, 43, said her 11-year-old daughter Rebecca receives £10 a month - no chores, but everyone is expected to muck in.

It started off with 50p a week when she was seven but when she turned 11, Ms Jones opened up a junior account at Barclays and money goes in monthly.

"It's taught her general management around money. At the moment she loves bubble tea and she loves getting bits of jewellery so it's a case of her thinking what does she want, can she afford both? It enables her to make those decisions.

"It's just those life lessons, isn't it? We can't have everything we want and you've got to make those decisions - and it's okay to make the wrong decision, which is normal."

The main topics from the Money blog that got you commenting this week were...

• Known issues with Ford EcoBoost engines
• Inflation drops to 2.3% 

BT delays switch from analogue landlines

'My second-hand Ford is being written off with a known issue - but no one is taking responsibility'

Every Monday, we get an expert to answer your money problems or consumer disputes. 

This week, Rory Raftery told us about a known issue with his Ford C-Max which had caused it to be written off. He asked if there was anything he could do. 

Dozens of readers wrote in to say they had similar issues. 

Money Blog, I had a Ford Focus with an EcoBoost Engine that failed after 62k miles on it, and Ford won't entertain any responsibility because not full Ford service history, offered no help whatsoever, have and are being treated appallingly at every level. Damian Moynihan

Bought a second hand EcoBoost 1.0 13 plate Focus from a broker… had it less than three months and the car has had sudden coolant loss and engine failure due to a cylinder head crack, almost a £5,000 repair. Ford need to be held accountable for this, it's ridiculous... no warning light, no temperature rises and then bang the car's engine is finished. The car has covered 73,000 miles. Gareth from Wigan

The Ford EcoBoost problem has prompted a recall for US cars with the exact same issue. Yet in the UK Ford are doing nothing about the issue. There is a Facebook page with over 20k members all experiencing the same issue and Ford refuse to acknowledge the issue, in the UK at least. anonymous

Here's what Ford had to say when we published Rory's problem: "Ford is confident in the robustness and reliability of its EcoBoost engine technology when the stated guidelines for maintenance and service are followed. 

"Ford UK is happy to investigate service support and/or compensation measures for any customer who believes they have had an EcoBoost engine issue and is happy to review cases with a full-service history for vehicles up to 10 years old with less than 150,000 miles.

"For any customers in the UK whose vehicle meets these parameters, you can speak to our customer relationship team and contact details can be found on our website  here ." 

The company said timely and correct servicing as outlined in the owner's manual was key for wet belt maintenance and any illuminated dashboard warning lights should always receive attention. 

On Wednesday, we got the latest inflation figures, showing it had dropped to 2.3% in April - down from 3.2% in March.

A drop to 2.1% had been expected by the Bank of England, but it showed the fight against price rises was being won.

Here's what some readers had to say about it... 

All my experiences when I go grocery shopping don't fill me with optimism that prices are almost stabilising. Particularly household items, such as cleaning costs, are still rising steadily and frequently. An item I buy was £3 something a matter of weeks ago. This morning... £5. Su H

Am I the only person who thinks that increasing the minimum wage by 10% in April and the knock-on effect of increasing wages by more than 8% in labour intensive industries is going to cause an increase in inflation that will make a reduction in interest rates very unlikely? Rayayre

The national living wage for workers increased by 9.8% on 1 April from £10.42 to £11.44.  

Since the recent decline in inflation is largely due to energy prices, can anyone name a specific government action that influenced energy prices traded on the international market? This government can't resist taking credit for everything! Marek

You have written this story as a failure of government to bring inflation down to a level some analysts forecast, despite it being a huge drop and within a whisker of the 2% target. It reads like a piece one would expect to hear coming from a Labour politician. Tom Jeffries

I don't believe this for one moment, did my shopping yesterday the price of food is disgracefully high still and takes up most of my income as a family. Andrea

I have seen no change in the cost of living, my car insurance is up 10%, council tax did the same. Shrinkflation is still going on. Food prices may have stopped increasing, but they have not gone down. My job as an assessor had its hours and pay cut of 1/3, bills remain! StevieB

Inflation down but prices remain high, my mortgage and day-to-day bills are still cripplingly high while my wages stagnate. In real terms I've never had so little disposable income. The cost of living crisis is far from over. Kingsholm_Neil

How does UK inflation compare around the world ? KevinPB

We found the answer to this one on Wednesday...

Why are prices on certain things still expensive and will they ever go down? Nick12

On Nick's question, inflation coming down doesn't mean prices are. It just means prices are rising at a slower rate. 

For prices to drop, we would need negative inflation, which isn't common. 

But, in the April data, we did see it in the energy sector thanks to the price cap change. 

On Monday, BT Group pushed back its timetable for moving all customers off the Public Switched Telephone Network (PSTN) and on to digital landlines.

From this summer, customers who have not used their landline in the past 12 months, who do not identify as vulnerable or have additional needs, have not contacted an Alarm Receiving Centre (ARC) in the past 24 months and live in an area where a data sharing agreement is in place, will be switched - unless they have opted out.

Vulnerable customers or those with additional needs will start to be switched from summer 2025, with the aim to have all customers moved off the old analogue PSTN by the end of January 2027.

We have a thatched house and no mobile signal. We signed up to Fibre-to-the-Premises (FttP) and despite protests, we were "upgraded" to digital voice at "no extra cost". Time to give us back our copper which always works - even when we have no electricity. Ian P

Living in a rural area where we have power cuts for different reasons and internet signal is non-existent without Wi-Fi, how will we stay connected? Melanie

I live in Lancaster but my signal is so poor that I have to ask family to call me on my landline. How on earth are we supposed to manage without one? Pat

Three big announcements this week could have significant implications for the money in your pocket.

First, April's inflation data , which on the face of it was good news. 

Price rises slowed to 2.3%, within touching distance of the Bank of England's 2% target and into what economists regard as normal levels.

The Bank has repeatedly stressed that interest rates (which have been elevated to squeeze spending and encourage saving, which usually stops prices going up so quickly) would start to fall when the 2% figure was sustainably hit.

Herein lies the issue - sustainability. Because while headline CPI has fallen dramatically from highs of more than 11% in 2022, a closer look at the numbers suggests the fight against price rises isn't over just yet.

Core inflation, which strips out the volatile elements like energy and food, remains at 3.9% - while service inflation is at 5.9%. All of these numbers, including the headline figure, are above forecasts.

All of which has prompted markets to price in an August rate cut from 5.25% to 5% - previously they'd expected June.

Economics editor Ed Conway wrote this analysis...

Some suggested the fall in inflation, combined with the IMF upgrading UK growth forecasts , provided Rishi Sunak with a positive platform on which to call a summer election.

Conway isn't so sure.

He says: "We're out of recession. That's one of the key things they were waiting for. Inflation is now down to a normal level. Those things have been ticked off [but] there are a couple of issues. 

"First of all, it doesn't look like, with inflation not falling quite as far as everyone would have expected, that the final thing they were hoping for, the Bank of England cutting interest rates, is going to happen in June. There probably is not going to be an interest rate cut before the election. That's quite significant.

"Secondly, when people look at this election, it's that old question: do you feel better off than you did four or five years ago? 

"And in this case, there is no parliamentary period in history where people have seen their real disposable incomes squeezed as much as this one. 

"That's what the prime minister's fighting against."

We took a closer look at what the election and new interest rate forecasts mean for mortgages and the housing market here...

We also examined what the election result on 4 July could mean for people's finances, honing in on what we know about the major parties' plans from childcare to train fares to tax...

Finally, energy bills will fall again in July after Friday's price cap announcement.

They'll be £122 (annually) below the April-June figure.

However, daily standing charges are going up - which means those who use more energy will feel the most benefit from the price cap fall...

Sir Keir Starmer told us that Labour's plan for a new company called Great British Energy would help bring prices down...

And business presenter Ian King explained why energy bills are still £300 more than before the Ukraine war...

The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

Check them out this morning and we'll be back on Monday with our regular Money Problem feature - and full rolling news and features after the bank holiday on Tuesday. 

The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

Cara Delevingne's childhood home is up for sale - but it's come to market with a huge £23.5m price tag. 

The 5,456 sq ft property in London's Belgravia was also home to controversial casino and zoo owner John Aspinall in the 1960s. 

Mr Aspinall and the mansion were also linked to the disappearance of Lord Lucan in 1974 - a mystery that still hasn't been solved. 

After he died in 2000, the five-bedroom house was bought by Charles and Pandora Delevingne - the parents of supermodel Cara and her older sisters Chloe and Poppy.

The Grade II-listed building on Lyall Street comes with two reception rooms, a study, a home cinema and a professional chef's kitchen. 

A gym, sauna, steam room and rooftop cocktail bar are also included. 

In around 2014, with their daughters grown up, the Delevingnes moved from the Lyall Street mansion and downsized.

The current owners bought the house a couple of years later and have given the mansion an extensive renovation and modernisation. 

"It is one of the best houses currently available for sale in Belgravia and is immaculately presented and beautifully interior designed," said Charles Lloyd, head of Beauchamp Estates. 

The reason for the fall in the household energy price cap is pretty straightforward - wholesale electricity and gas prices have fallen since the price cap was last set in February this year.

Wholesale gas and electricity prices make up by far the biggest proportion of the energy bills - £720 of the current £1,690 - and Ofgem is assuming, for July, August and September, a wholesale electricity price of 22.36 pence per kilowatt hour (kWh), down from 24.50 pence per kWh during the current quarter.

It is also assuming a wholesale gas price of 5.48 pence per kWh from July to September, down from 6.04 pence per kWh during the current quarter.

That brings down the wholesale energy component of the typical bill (which is based on an assumption that a household will use 12,000 kWh per year of gas and 2,900 kWh of electricity) from £720 to £619.

The question some people may have, though, is why the energy price cap that Ofgem has set for the three months from July remains higher, at £1,568, than the level at which it was set - £1,277 - at the time the energy crisis was sparked by Russia's invasion of Ukraine.

At first blush, this seems a reasonable enough question, given that a barrel of Brent Crude - a reasonable enough proxy for wholesale energy prices - stands today at $80.78 (£63.50) per barrel, down from the heights it hit after the invasion.

But bear in mind that, in those days, the price cap was only set by Ofgem every six months, rather than quarterly as at present.

The price cap in place immediately before the crisis came into effect on 1 October 2021 having been set on 6 August that year.

Prior to that, wholesale energy prices had been lower than they are now. The wholesale energy component for the price cap for the winter of 2021/22 was, accordingly, £528 - lower than the £619 it will be from July.

Other costs taken into account by Ofgem are also higher now than they were before Russia invaded Ukraine.

The UK needs "longer term solutions" on energy prices because they are still "record high almost", Sir Keir Starmer has said.

The Labour leader was commenting on a fall in the energy price cap.

From 1 July it will be £1,568 a year - a drop of £122 from the previous quarter. 

But Sir Keir said many people were still struggling to make ends meet.

"Everywhere I go, so many people tell me the cost of living is still bearing down on them," he told Sky News.

"People on a mortgage, [those] coming off a fixed mortgage, know their mortgages are going up by hundreds of pounds.

"Everybody knows prices are still going up - energy prices are still record high almost."

He added: "We need longer term solutions."

Labour's proposed Great British Energy (GBE) would help energy prices "come down for good", Sir Keir claimed.

GBE would be a publicly owned company with a mandate to invest in clean energy – wind, solar, tidal, nuclear and other emerging technologies. It would be designed to invest in riskier areas where the private sector might be reluctant.

Asked when energy prices would drop under GBE, and how quickly it could be established, he said: "Certainly by the end of the parliament, and a lot sooner than that.

"We can set up Great British Energy pretty quickly."

Discussions are already under way with potential partners, he added.

Claire Coutinho, the energy secretary, told Sky News that Great British Energy is a "complete gimmick" and a "drop in the ocean".

She also accused Labour of having "no plan" on energy security.

Putting off "life admin" could be costing you thousands of pounds a year, research has suggested.

It is estimated that adults in the UK could save £300 a year by cancelling unused subscriptions, £420 by reviewing their day-to-day finances, and £372 by re-evaluating a gym membership. 

"On average, Brits admit to putting off simple tasks by four to six months," Lloyds Bank said.

When asked why they had been delaying, almost a fifth (18%) said there was no deadline, one in seven (16%) said it was easier to take no action, while for 13% the memory of previous difficulties was off-putting.

Turning to the future, a fifth (20%) admitted not having a pension, while only two fifths (42%) knew how to add more money to their pension if they had one. 

If you are looking for a detailed analysis of today's cut in the energy price cap (see our breaking news post from 7am) then the following from Martin Lewis is worth digesting.

The founder of Money Saving Expert has split his reaction into three sections.

Lewis says the cap will drop on 1 July by an average of 7.2% for Direct Debit customers, 6.9% for prepay customers, and 7.1% for those who pay when they get a bill.

The cap will fall to £1,568 a year - a drop of £122 from the previous quarter. 

Standing charges (what you pay regardless of how much energy you use) "remain high" and are "virtually unchanged", Lewis says.

"All the cut" is via unit rates, he adds.

That means those who use more energy will be seeing bigger savings.

The electricity unit rate for Direct Debit customers from July will be 22.36p/kwH - down 9% from 24.5p, Lewis says.

The electricity standing charge will be 60.12p a day - up from 60.1p.

The gas unit rate will be 5.48p/kwH - down 9% from 6.04p.

And the gas standing charge will be 31.41p - slightly down from 31.43p.

Lewis says the results of a consultation on standing charges are likely to be published sometime in the "summer", adding: "Whenever that is."

As we reported in our post at 7.34am, respected market researcher Cornwall Insight is predicting that bills are likely to rise once more in the run-up to winter. 

Lewis comments: "If they're right this is the last fall, and the coming rises are big.

"On 1 July it's confirmed [the cap] drops 7%, so for every £100 paid today you pay £93. 

"Then on 1 Oct it's predicted to rise 12%, so you'll go back up and be paying £104. 

"Then on 1 Jan the crystal ball is saying it'll stay flat (at £104). 

"All this makes the cheapest fixes, which are currently 9% cheaper than now (so £91 per £100 on the price cap), look a decent bet."

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