2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
To open your own car wash, you must first create a business plan. Any business starts with this document, especially if the start-up capital needs to be taken from the bank. Once the car wash project is approved, you can start developing your business.
What type of business should I choose?
This moment is connected with a number of factors. If the founder of the company will be one person or several, it is better to form an LLC. It allows you to employ up to 50 people per company. When registering an IP, only relatives of the director can work at the enterprise, so it makes sense to think about this in advance. Typical car wash projects will help to organize a business.
It is also worth considering the option of registering a patent. This type is associated with the type of business - renting or opening your own premises. It is important that the temporary use of commercial premises does not impose restrictions on the ability to open a business. The problem will only be closing, but that's another story. For motivation, you can also consider a few photos of car wash projects. They will help to build clear plans for the implementation of tasks. Also thisa great visual example of what the future business could look like.
Rental
A car wash business project can be based on a leased business, such as a business for renting apartments and subletting. The founder only needs to pay for the “use” of services. There is also equipment installed that you do not need to purchase. A ready-made solution will allow you to recoup a smaller part of the invested funds, but they will also be much less than what would be required to start a business from scratch. Such a business will be profitable, but there are a number of nuances:
- Paying rent. It must be monthly, so start-up capital is required.
- Ready-made business is subject to income tax because it has already functioned before.
- Staff. It already exists, so you don’t have to spend time searching, drawing up a staffing table. However, it will still be necessary to approve the positions, give the name of the company and indicate the size of wages.
Renting a ready-made car wash is beneficial for the founder. But the plan will have to calculate in advance the payback period and maintenance costs. So, in six months you can recoup investments for the quarter. The costs of maintaining equipment are also taken into account - failure and breakdowns are eliminated at the expense of the current management. And, as a rule, the equipment is not new, which means that it has no guarantees.
Rent a room with your own equipment
The development of a business plan can be based on the introduction of newtechnologies and installation of their equipment. The supply for the premises should be chosen in relation to its size and the range of services provided. Here plays an important role:
- Location.
- Number of cars served simultaneously.
- Self-recruitment.
- Ad spend.
- Re-registration of documents.
- Paying rent.
It is believed that this is the most common type of business. Renting allows you to save on construction, repair of faulty equipment and maintenance of machines. A big win for those who have the opportunity to provide the client with more modern service technologies and profitable promotions and services. The business plan should also contain product information if the capital is to be taken from the bank to purchase the equipment. It is worth noting that it can also be rented.
Building from scratch
To start your own car wash project, you must first prepare a business plan. The first thing to be specified is the type and location of construction. You should also calculate construction costs:
- Purchasing supplies.
- Purchase of territory or land.
- Terms of completion and cost of work.
- Finishing work.
- Purchasing equipment.
- Development of supply laying schemes.
- Connecting the building to communications.
This is a list of costs to consider when pricing services. It is important to establish the period during which the costs will pay off. Business-the plan also involves force majeure circumstances - an increase in fees for supply services, a change in the exchange rate, the basis of the minimum wage when recalculating the amount of wages, etc. If capital is allocated for this, it is worth finding product suppliers. In this case, the manufacturer of small parts of machinery and equipment. The conclusion of the contract will be made before the opening of the car wash, but all costs are taken into account in the expense column.
Machinery and equipment
Technical equipment is as important as marketing. The company must prepare and develop an advertising campaign strategy for the car wash project. The more useful it is, the more profitable it is for the buyer. To do this, an order is made to the marketing service, which makes advertising options for TV, radio and Internet sites. Separately, you should take care of the availability of special services that differ from those provided by competitors.
For example, the ability to wash your own car, dry cleaning, shampooing only for the salon, the presence of a cafe. Such a self-service car wash project will allow the consumer to make a choice - the range is wide, the cost is low. As an addition, especially for women, you can develop a system of discounts for the holidays. For children, you can install a separate pressure washer so that the child wants to wash his bike or electric car. This service may be included in the cost of another, but the cost of it is displayed in the business plan as a separate expense.
Wash location
The geographical component is very important for this type of business wherethe emphasis is on clientele and mass flows. From the theory of logistics, experts advise to treat the choice carefully. Some share their advice:
- Sink should not be located in the city center. No one will go there because of traffic jams.
- You can place it on the outskirts of the city, at the entrance or exit, where the flow of cars is large. Guests of the city will also enjoy the services.
- Close to shopping centers - when renting, you can choose a profitable plot for the location of the car wash. Bandwidth is high.
It is also worth considering the pricing policy for the project of opening a car wash. Market entry requires competition. The rules of economic strategy prescribe: providing services to customers only at a price below the market average, but with the same quality as similar car washes.
Pricing strategy
The business plan should clearly state the prices for a list of all services. The ceiling and floor prices are set by government agencies, and you cannot go above or below the limit. It is regulated, so it is better not to risk income. The Tax Service also controls all financial transactions. After setting prices, you can calculate the approximate income and net profit. It is necessary to take into account the additional costs that arise during the formation of the business. If the costs of salaries and settlement estimates are not taken into account, you need to supplement the business plan after the end of the year with zero tax.
The result is a small estimate,where you can see how much you can earn at the location of the sink, the flow of a certain number of people; as well as how much will need to be invested in the further development of the car wash project. The balance sheet is checked - the income must be higher so that the net profit pays off the business. Modern technology and premises (built or rented) play an important role. As for the start-up capital, you will need at least 1 million rubles to open a business.
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