Business plan for car wash

1. A brief investment memorandum. Every day every kilometer any car is contaminated in one way or another. We are all used to seeing car washes for SUVs, minibuses and cars, but there are not enough places to wash a 20-meter-long wagon.

Not every production, and even more so the grocery store will not allow a dirty car to enter its territory, such requirements for heavy trucks are more often found in warehousing product bases. If for cars cars washing is available in almost every city, then in the case of heavy trucks, statistics leave much to be desired.

The main consumers are truck drivers, bus drivers, and in the future car fleets. Since the flight can last 5 or more days (sometimes up to 2-3 weeks), drivers have to live in their cars. There they eat, sleep and live. Naturally, the cabin should be clean and orderly. But they do not forget about the outside of the truck, that’s why they use car wash services.
The essence of the business idea is to satisfy the need of drivers and owners of trucks in the washing of heavy vehicles, tractors, buses.

Specialists say that a car wash as a business is a very profitable business. And for it to bring real income, it is necessary to take into account a number of important moments
It is assumed that the money will be provided by the bank, or investors, also so that the costs of starting a business are not large, a portal wash can be leased.

Capital investments  – 2740.8 thousand rubles.
Net profit  – 409 thousand rubles.
Payback period  – 6-7 months.
Profitability of sales  – 68.2%.

2. Description of business, product or service

It is planned to start a business with a portal installation worth 2.5 million rubles. After the payback of the first installation, it is planned to install a second portal wash.

After the two installations begin to bring a stable income, it is planned to install a stationary washer with the same portal installation. It will be possible to expand the range of services, for example, to open a tire service, because you always need to develop.

Also open a small auto parts store for consumables, that is, it’s a car, filters, various fluids like antifreeze, antifreeze, diesel fuel mixtures, etc. Later, open a car wash for cars.

3. Description of the market

This business is just beginning to gain momentum in our country. And it is developing at the moment is not very fast. It is not very developed in our city.
Truck washing as a business is not only a promising, but also a highly profitable enterprise. The profit from such activities can significantly exceed the income received from car washes for cars.

It is enough to compare the cost of the service:

• To the owner of a car, washing the car costs 250 rubles. (average price of the service).
• The minimum cost of washing trucks varies from 1,000 to 2,000 rubles.

Therefore, it is worthwhile to actively develop this industry, it will bring a considerable profit, will enable truck owners to keep their truck clean, and provide people with jobs.
In our city, according to the portal 2gis 9 car washes for trucks. For cars, car washes are more than 45. This is the main competitors. Most of them are located on the outskirts of the city, ie, in places where there is a sufficiently large flow of cars.

Car wash location

The competitive advantage is expected to be achieved by choosing a place for car wash and additional services. The place under the car wash is located along the Dachnoy highway.
Because this site is located on the outskirts of the city, then the flow of both freight and passenger cars is assured, especially in spring, summer and autumn.

4. Sales and marketing

In our case, it will be advertising on billboards along the road, and business cards distributed to the gas station.

The main method of attracting consumers of services we believe (of course, along with its optimal price and quality) is a competent service organization that includes:

• application of a flexible system of discounts for consumers who constantly use the services of our firm,
• the possibility of providing services under direct contracts with transport enterprises,
• ensuring continuous improvement of means and methods of customer service,
• wide advertising activities.

The last item assumes the distribution of advertising and non-promotional articles in the local press, highlighting the level and quality of services and guarantees produced by the firm, the production of 4-5-billboards located along the M-, advertising in transport. Particular attention is paid to carefully thought-out text of the appeal to consumers, suitable design, attracting attention and emphasizing the business qualities and advantages of our company.

5. Organizational structure

First you need to decide on the form of business organization. Two options are possible here: either registration as an individual entrepreneur or an «opening» of a legal entity, for example LLC. Each of these forms has its pros and cons, therefore, in order to make it easier to make a choice, you need to learn more about each of them.
Both for registration as an IP, and for the opening of a legal entity, state registration is mandatory, the procedure for which is determined by the Federal Law on Registration of Legal Entities and Individual Entrepreneurs. When applying to the registration authority, it is necessary to draw up a statement, prepare and submit the constituent documents, as well as pay the state fee in accordance with the established form.

The next step will be obtaining permits allowing you to engage in car wash business.

In particular, they are:

• permission from local authorities in charge of which is the territory on which it is planned to open a car wash. To receive it, you must file a letter of application to the city or district administration for the allocation of a land plot for its construction;
• The car wash project, which is being developed by the project organization. Without fail, this project must comply with the existing sanitary and epidemiological, architectural, environmental and fire standards and be coordinated with the authorities responsible for compliance with all these standards;
• permission of the Architecture Committee, Sanitary and Epidemiological Station, environmental protection department, fire protection and labor protection for the provision of washing services for vehicles. In the absence of at least one of the conclusions listed here, the draft will not be approved;
• The act of permanent or temporary possession of land, which is drawn up after the approval of the project. Only after receiving this document you are allocated land and issued a warrant for the construction of your facility.

This is a list of the basic documents that are needed to open a car wash. There are no special requirements for their preparation and form.

6. Financial plan

The plan of expenses for the opening of a sink

Article 346.20 of the Tax Code establishes the following tax rates for the tax levied in connection with the application of the Simplified Taxation System (USN):

• 6% if the object of taxation is the income of the organization,
• from 5 to 15%, if the object of taxation is income reduced by the amount of expenditure.

It was decided to use the first scheme of payment of taxes, ie, 6% of income.
Current costs per month

Considering that the car wash is located on a «good» place, where the transmission capacity of trucks is good enough, it is expected to serve 10-15 cars in 12 hours. The car wash will work around the clock, i.e. per day 20-30 cars. One car wash truck with a length of 18 meters is 10 minutes.

20 cars * 30 days * 1000 rubles = 600 thousand rubles

Income and Expense Plan

Efficiency of the project

7. Risk factors

We will assess the possible risks of the project on a 5-point scale.

External:

• Probable change of legislation. Risk assessment – 1. This risk can toughen the environment for the development of the business and lower the level of profitability. Compensation is carried out at the organizational moment when introducing the form of government, type of ownership and form of taxation.
• War, natural disasters, cataclysms, accidents and emergency incidents. Risk assessment – 1. Event can objectively lead to large material losses. The property can be badly damaged or destroyed. However, such a risk is regulated by the insurance service.
• Opening in the city, with a population of 410,000, new sinks, lower prices by competitors. Risk assessment – 3. As we have already said, demand exceeds supply, however incomes can fall slightly. This is regulated by the creation of a personal database of clients, active shares and the development of interesting proposals. It is necessary to encourage the client for his right choice.
• Seasonal decrease in the number of services. Risk assessment – 5. This risk has no clear time limits. It all depends on the weather. This risk is governed by marketing policies, stocks, and the reduction in the number of employees.

Internal:

• Geographical location error. The risk assessment is 5. If you make a mistake in the arrangement, you can lose a significant share of the income, moreover, there is a risk not to reach the margin of profitability. To exclude it it is possible by means of competent geomarketing research – such services are engaged in the special companies. The data of such a study will give a clear figure of the number of likely clients.
• Weak level of workforce and staff. Constant turnover of staff and weak financial motivation, especially in the off-season. Risk assessment – 4. This risk is due to the small prestige of the profession. Such a vacancy market is filled with personnel with low qualifications. Personnel staff has a weak monetary capacity and is poorly financially motivated. All this, in the long run, leads to a drop in profits, a decline in the quality of services.
• Risks technological. Risk assessment – 4. Purchased equipment and a list of services can create difficulties due to low literacy or non-targeted use of production facilities.