For decades, the car wash business has been a prosperous one. As the number of vehicle enthusiasts has increased and technology has improved, this industry has seen major growth in the last five years. If this business is successful, it will have a profit margin of 50-55 percent.
It has evolved from a car wash to a detailing business that encompasses washing, cleaning, coatings, restoration, and other services. As a result, it is now much more than simply washing a car.
It involves the employees, the location of the business, license requirements, the limit for water supply, the technology employed, and the taxes involved in the operation.
The following are the steps to starting your own car wash business:- To start your own car wash business, you must consider these factors before starting your business so that you do not have any problems at the beginning of your business.
The type of car wash business you wish to establish:
The first step is to identify what type of car wash business you wish to start. You can pick between two sorts of car wash businesses.
A door-to-door service:
In a door-to-door vehicle wash service, you must go to the customer’s house and deliver the entire range of services there. In this case, a simple business name will suffice to allow you to deliver your service.
However, because labor is the key necessity in this situation, their verification is required, and they must have your company’s identity cards. You must also provide tracking details to your clients.
People in India prefer this door-to-door service since they do not want to leave their homes to travel to vehicle wash centers.
And, unlike a vehicle wash facility, there are no high start-up fees when establishing this business, so you don’t require a large investment.
Car wash center:
Suppose you decide to open a car wash center. In that case, the location is the most significant consideration because if it is in a good location, your chances of making a lot of money in a short period of time rise.
You can situate your center near a residential neighborhood or an office building, but you will need several permits before you begin your operation.
To open a center, you must first obtain government approval or a land permit. Approval is also necessary for the establishment of a business unit in a residential neighborhood.
A large investment would be required to set up a center because you will need large machinery and staff salaries and rent costs for the center and then machinery, which can cost you up to Rs 17-25 lakhs. The cost of the machinery varies depending on the brand you choose to buy from.
Choose a location for your business
Every business location is critical to the firm’s success because if it is located in a good location, the possibilities of earning significant earnings in a short period of time improve. You might position your center near a residential area or an office building.
Before starting your business, you must study the target area and pay special attention to the traffic, the types of companies, the types of vehicles that pass by, and anything else that can increase your sales.
It would help to place your firm distant from your competitors so that your sales are not influenced by their sales. You must establish a market entirely on your own.
Research your competition
The following stage is to examine your competitors and look at the services they offer to their clients. How many clients visit them daily, and what marketing methods do your competitors employ.
Are your competitors’ services satisfactory to their clients, or do they require more from the service providers? Are your competitors debt-free, or do they have a loan on them?
To attract more clients and provide better amenities than your competitors, you can lower your rates and have a lower profit margin in the early stages of your firm.
As your business expands, you may gradually raise your rates because you will gain loyal clients who will favor you over your competitors even if you raise your prices.
Licensing requirements for your company
Before you can start your firm, you must first complete all of the legal criteria.
You must go to your local department that issues business licenses and get an MSME registration to complete your work. You must also apply for the following licenses for your car wash business in order to avoid problems later on:
GST registration is necessary to register your business with the legal components of the business.
Land permit: For this business to create a car wash center, you must also apply for a land permit, as this permit is required if you open your business in a residential neighborhood.
Water permission: You must get a water permit for this business because you will be using a large amount of water to wash the cars. Under this permit, there is a maximum amount of time that can be used. For example, the permit specifies a maximum restriction of 800 liters of water each day.
The rules and regulations vary from state to state or city to city, so check the guidelines in your area before starting your firm.
Recruit your team
Instead of handling everything yourself, you must have a good workforce to handle this business. For this goal, you can pay your competitors’ employees more to join your company.
You must hire good employees who know how to deal with consumers and interact with them pleasantly so that your company does not leave a negative impression on your customers. You can even teach your employees how to interact with customers.
You may opt to have a minimum of two employees at the start of your business, and as it expands, you may raise the number of employees.
Obtain finance for your company
This is the most significant and difficult phase for your company. If you have a sound business plan established before starting your firm, this step will undoubtedly aid in the success of your venture.
To create a high-quality car wash center and provide the greatest services to your consumers, you must have the necessary finances to invest in your business. You should also have a strong resume with a company or car wash expertise, as well as a marketing strategy.
Promote your company
Because you are establishing a new business and your consumers are unaware of your location, you must publicize your new venture so that everyone is aware of your offerings.
Before you begin your business, you must advertise your goods and attract an increasing number of consumers to your car wash center. To entice clients, you can even undertake social media marketing.
You can sell your services at a lower margin at first to create your name in the industry, which will also help you compete with your competition. However, you must ensure that the services you provide are of higher quality than those of your competitors.
Your dream to own a car and bike wash business is now an easy job. We at Ziploan can help you finance your own business with ease. If you are looking for an automobile business loan, you’ve come to the right place. Contact us now to know more details.
Frequently Asked Questions
As with the rise of car lovers and even because of innovation enhancement, this business has gotten increasingly beneficial from the last 2-3 years. In this business, there is an overall revenue of 50-55 percent if the business becomes successful.
Here are the steps you should follow:
1) Choosing the type of car washing business
2) Making a car wash business plan
3) Location for a car wash
4) Review your competition
5) Car wash set up cost in India
6) Purchasing equipment
7) Hiring employees
8) Marketing your business
The basic equipment needed for a manual car wash is:
1) High pressure system
2) Oil/water separation Unit
3) Drainage unit
4) Industrial vacuum cleaner with wet upholstery cleaning option
5) Possibly an upholstery cleaner
6) Depending on the products you choose you might need a foam attachment on your hose