Do you want to start a car washing business, service centre for cars, bikes, and other commercial heavy vehicles? Then this article helps you in making more understanding about how to start and what are the procedures to comply in order to commence your business.
Automobile industry is increasing rapidly. India became the fifth largest auto market in 2019 with sales reaching to 3.81 million units. So car washing zone is an emerging business in India. Now a days, customers are more concerns on the products and services they choose then saving time. Especially when it comes to someone who is more conscious about his/her car and one using a luxury vehicle. And we have a lot of choice in vehicle washing equipments.
Why is Car Washing Profitable?
Every business motive is to have higher profit ratio. After deciding the mode of business, then we think about the profit margin of the business we going to start. Following are the reasons shows car washing is profitable:
- The profit margin is high for a successful car wash. Almost 60 % will be the avg. profit for a single vehicle wash.
- Its easy to make a brand name by providing good service and offers which helps in expanding the business quickly.
- Many allied services can be offered under the same roof.
- Car Washing Equipments can be used for long period of time which means the investment for machineries will be one time investment.
- No credit transactions. Its completely a cash business.
Guidelines for starting Car washing Business.
There are two ways of starting a car washing business. Either you can take a franchisee or you can build your own brand. Buying a franchisee will be expensive as you have to pay for their brand name. But it will be time consuming, less complications and easy to capture market. However, Own brand will have many challenges, as you are new to it. But it will be cost effective, secures more profit, and scope of expanding your business in unlimited.
Location for Car Wash Business
For starting a Car Wash Business, location is very important. Because starting a Service center in Rural area is not a good idea. Whereas, in Towns and metropolitan cities it has good scope. Also should choose a location which is easy to access. Inner areas will find difficult to get noticed.
You can choose areas like : Highway sides, near Shopping malls, or any other location where other business or major factories and people mostly gather. Road access and entrance to your plot should have enough width and make sure nothing harmful which cause damage to the vehicles coming for services.
Cost for commencing you business
Before starting investing, you should intiate the cost for completing your car wash business according to your requirements. First, you should choose whether you invest in your own property or a rental accommodation. If you go for taking a land for lease it requires security cost and rental charges on monthly basis.
Apart from the space, you should choose for mode of Car washing. Other than equipments, Building cost, Staffing, Marketing Expenses and ETP plant installation for recycling the polluted water as per government policy are also to be costed.
Compliance policy to be followed as per Government
Generally, for starting a car wash business several permissions and license required from the local authority. It varies depending on cities and states. It is advised to check with the local rules and regulations in respective areas where you planning to start. Some of the basic checklists are :
- In order to start constructing buildings you should take permission from Local Municipality or Panchayat.
- Meanwhile make sure the type of land which is suitable for the nature of business you planning to start.
- After completing construction get building numbers and Electricity connection for your premise.
- Contact Pollution Control Board and start constructing waste disposal tanks as per regulations.
- Once completed with Pollution Control Board, Pollution certificate will be issued.
- Finally apply for the trade license with all necessary documents required by the local authority.
Car Wash Equipments
You will find different types of car washing equipments in the market. Basically equipments and tools comes with different features, price etc. Choose the equipments according to your requirements, ie; if you are planning to start a Manual Car Wash it requires different equipments. Whereas if go for Automatic Car Wash it varies from the Manual one. You can also purchase equipments with hire purchase leasing facility which is provided by different financial institutes as different Interest rate.
We help you in availing subsidies for the machineries you buy.
For your successful day-to-day operation you have to hire experienced labours. Number of staffs depends on the size of your Washing zone. Either you can pay them on commission basis ie; a fixed price for washing a vehicle. Or can be hired on salary basis.
Before starting offering your services, you must be well equipped with right business tools. You should make a record of all accounting ledger and essential invoices. Mainly an accounting software is highly recommended, to monitor day to day business activities. Make sure your premise is under CCTV surveillance and customer feedback to be recorded without failure so that you can improve yourself.
Fix the pricing properly. Broadly, you can fix the price for both one time service and monthly basis. In addition to this, you can charge different prices for different services. Such as price for an Full wash, Body wash only, Body Detailing (polishing), Interior shampooing etc.
Promotion and Marketing
Promotion and right marketing are the most important aspects of getting long term success in this business. And if you are starting the business of your own, you must put your creative thoughts for creating a regional brand. Select the right name of your business with a relatable logo and catchline. Additionally, create the company uniform for the employees. Also, put a bright sign board at the exterior wall of the shop where every passengers gets noticed.
In starting, you can offer to launch discounts to your consumers. The hyperlocal promotional strategy is the must. The car owners of the locality must know about your washing zone. Setup your company website. If possible, provide an online booking system.