It’s easy to be overwhelmed by the prospect of buying a self service car wash business, especially if you have no prior experience managing a cash business such as this. In the long run, operating your own self service car wash business can be very lucrative.
Purchasing an established car wash is, in my opinion, a great place cash business to get into. It’s very simple and as previously stated, can be very lucrative. Putting up the initial capital for the business is the only thing that is required of you in most cases. Purchasing an already established self service car wash business could potentially guarantee that you have everything you need to succeed: a dedicated customer base, the necessary equipment, hopefully some training from the previous owner, and adequate space; all you will need to do is carry on with business as usual and optimize any weak points the previous owner did not address. This article will address some of the reasons that I personally think you should consider before buying an existing self service car wash business.
Self Service Car Wash Business Demand
The demand for car wash services is growing at a steady rate. According to the National Association of Automotive Detailing, or NAA, the demand for a full-service vehicle wash increased by 33% between 2011 and 2016. This growth is expected to continue and be even higher in the next few years. The main reason behind this demand is the rising popularity of newer vehicles. Nearly 50% of all new cars produced today are newer models. These models may have a higher cost of ownership, which means they can require more frequent washing. Moreover, newer cars may also have a higher propensity to accumulate dirt and grime. All of these factors drive the demand for a car wash service and make the business, in some areas, recession proof.
Knowing What Customers Want
A self service car wash is a simple business, but you have to have a good understanding of your customers. You need to understand who they are, what they do with their cars, and what kind of wash they prefer. You can use online customer acquisition strategies for your existing car wash business. You can use social media marketing, email marketing, and even word-of-mouth marketing to reach out to prospects and existing customers. You can also use offline marketing like trade shows, car shows, and other similar events to promote your services. You can also use email marketing to send out special offers, limited-time promotions, and other helpful information.
You Have Existing Brand Recognition
If you are buying an established business then it will likely come with a brand image already and if it doesn’t then that’s honestly just more money in your pocket once you establish a brand around it. You can use your brand recognition to potentially create a new car wash chain. Think about it. You can buy an existing car wash with little to no brand image and slowly build the empire. With an established brand, there really is no ceiling to the revenue you can generate. To name a few benefits of a real brand; You can leverage the brand to acquire franchisees, investors, more customers, and even charge higher prices.
The Equipment Required Is Already in Place
Some car wash equipment, like the wash bay or troughs, can be purchased second-hand at a relatively low cost. However, it’s important to understand that an existing car wash business will have most, if not all, of the equipment in place.
Your New Business May Come With Employees
Your newly purchased business may come with employees or it may not. If it does not come with it employees then you will be an owner operator. This will allow more cash into your pocket in exchange for a bit of time, likely each week, to upkeep the business. However, you may want to one day free up that time in exchange for cash and hire an attendant to do all of the tasks that you were previously doing. Just remember that the employee performance affects overall business performance. You can try to implement the use analytics to understand the factors affecting your employees’ performance, but this is oftentimes a simple business to operate so it probably won’t be necessary. Just have a good security system set up with some decent cameras and you’ll be able to pop in from your phone to monitor their performance.
Conclusion
If you want to invest in an existing car wash business, it’s essential to carefully assess the current standing of the business, that businesses financial history, and the overall demand of car washes in that area. If you do these things with great diligence then I truly believe that you can invest in an existing self service car wash and earn a good return on your investment. More information on cash businesses can be found here and also check out some of these great books on buying a self service car wash business.
