How To Start A Car Wash Services In Nigeria
If you’re an aspiring entrepreneur trying to figure out what kind of business you want to establish, you may want to consider opening a car wash.
Table of Contents
-Costs of Starting a Car Wash
-How to Save on Maintenance
If you’re an aspiring entrepreneur trying to figure out what kind of business you want to establish, you may want to consider opening a car wash. According to the NIGERIA Statistic records, consumers spend an estimated 15.8 million at car wash businesses annually, with approximately eight million vehicles being washed on a daily basis. Just as encouragingly, about 90 percent of car washes are owned and operated by small business owners instead of corporate conglomerates, and about 37 percent of these owners started their operations less than five years ago.
In 2012, 2.1 percent more vehicles were cleaned at car washing facilities compared to the number reported in 2011. Between 1998 and 2013, the number of automobile owners who used car washes to clean their vehicles instead of washing their cars themselves increased by 69 percent. With industry revenues of nearly 60 million and consumer interest in car washes continuing to grow, it’s easy to understand why someone looking to strike out on his or her own would be interested in opening a professional car wash.
Types of Car Washes
If you’re serious about opening a car wash, the first step toward realizing your dream is to figure out which type of business your market will support and which type you’ll be comfortable owning and operating. Not including mobile car wash businesses, in which a business owner goes to an automobile’s location to detail the car using a vehicle outfitted for this purpose, there are four types of professional car washes operating throughout the Nigeria.
These include the following types of operations:
Full-Service Car Washes: Approximately 9,000 of the country’s car washes are considered full-service car washes. Visiting a full-service car wash involves having the exterior of your vehicle cleaned in addition to having the interior of your automobile vacuumed thoroughly by employees of the facility you’re paying to clean your vehicle.
Exterior Conveyor Car Washes: Of the estimated 113,000 car washes operating in America, about 10,500 of them are exterior conveyor car washes. When you go to one of these locations, you’ll stay in your automobile while your car is pulled along an automated conveyor as its exterior is cleaned.
Self-Serve Car Washes: Approximately 36,000 self-serve car washes exist in the Nigeria. With this kind of setup, vehicle owners use a wand to wash the outside of their automobiles themselves. Many facilities have coin-operated machines that people can use to vacuum the inside of their cars, as well.
In-Bay Automatic Car Washes: This is the type of car wash that you’ll normally see at a convenience store or gas station, because it generally requires less space and labor than other car wash formats. When you use this type of car wash, you’ll pay for the type of wash you want, your vehicle will be pulled into the car wash from a starting point, and you’ll wait in your car as the exterior of your vehicle is cleaned. Around 58,000 businesses in the Nigeria are in-bay automatic car washes.
The type of car wash you choose to open will impact the amount of money you’ll need to start your business, how much it will cost you to operate and how much you will charge per wash. If your operation is going to involve washing automobiles by hand, your start-up costs will be lower than they would be for an automated car wash, but your ongoing labor costs will usually be higher. If you’re going to open an automated car wash, you’ll be able to wash more cars per hour without having to have many people on your payroll, but you’ll normally have to replace your equipment every ten years, or more often if it’s not maintained properly.
In general, consumers are willing to spend more for a full-service car wash that is done by hand. People who seek out this service normally do not wash their vehicles as often as people who use automated car washes do, however. The average price for a full-service car wash is 500 Naira, although 20 percent of businesses offering this type of car wash receive 2000 Naira or more per vehicle washed.
Costs of Starting a Car Wash
Once you have an idea of the kind of car wash you want to open, you’re probably going to ask yourself, “How much does it cost to start a car wash?” While certain start-up costs may be the same or nearly the same from one location to another, many factors that will affect the amount you’ll have to pay to start your business are largely dependent on where you’re going to open your car wash.
If you’re not going to buy an existing car wash, you should start figuring out how much start-up capital you’re going to need by answering this question: “How much does it cost to build a car wash?”
Land acquisition, construction and equipment expenses vary by location and other factors, so it’s important for you to thoroughly research the going rates in your area to accurately estimate your capital needs. In general, if you don’t already own land for your car wash business, you can expect to pay around 200k Naira to construct and equip each bay your business is going to have.
No matter where you intend to establish your business, however, some of the costs of building a car wash will probably include the following:
Land Acquisition / Renting:
Ideally, the land you acquire will not have any pre-existing structures on it. If it does, you’ll need to factor the expenses involved with tearing them down and removing the debris into your acquisition costs. You should seek out viable lots that are near frequently traveled areas close to other businesses and active, densely populated neighborhoods.
Your location will need to be big enough to support the type of car wash you intend to open and have enough space for vehicles to line up even after your physical business is constructed on the lot. It should also be large enough for you to expand your operation as your business grows.
If you’re going to own and operate an in-bay automatic car wash, you’ll need approximately 7,000 square feet of land for one bay. If you’re going to combine an in-bay automatic car wash with self-service bays, you’ll need about 18,000 square feet for two automatic car washes and two self-serve bays, and 22,500 square feet if you going to have the same number of in-bay automated car washes and four self-serve bays. If you’re going to open a full-service car wash, you’ll need to have enough land to create a waiting area for your clients, which means you may also need enough space for a retail area so they can shop while your staff works on their automobiles.
Where you establish your business is one of the most important factors that will cause your car wash to either succeed or fail, so it’s critical for you to choose the right location. If possible, buy a lot on a roadway that has a speed limit of 40 miles per hour or less. This will give drivers the chance to see your business’ sign and make the planned or impulse decision to have their vehicles cleaned at your establishment.
Before you purchase a piece of property for your business, you need to make sure it’s zoned for what you’re going to use it for. If it’s not, you may have to initiate the re-zoning process or apply for a special use permit. You’ll also need to check the local utility usage codes and sanitary sewers to make sure they are adequate to support a car wash. You’ll need to pay for a business license, business insurance and property tax, as well. You may want to register the name of your business with the NIGERIA Patent and Trademark Office to ensure no one else can use it, too.
Additional soft fees you’ll incur may involve architecture, engineering, impact and traffic studies and construction permits.
Some site work will need to be completed before construction on the building you’re going to use for your business can begin. Site work includes earthwork and laying asphalt for your parking lot and, depending on how you’re going to set up, your external work areas, as well as laying the foundation for your building.
Like the cost of land, the cost of construction varies widely from one location to another. Your construction costs will include the electrical and plumbing work your business is going to need, as well as the expenses involved with paying to have your location tap into public utilities, including sewer and water.
While a typical car wash measures about 1,000 square-feet and can be as big as 2,500 square-feet, it’s important that you think ahead when you’re planning your business so that your initial construction will be able to accommodate your car wash’s future growth. If you construct a building that’s bigger than you need when you start your car wash, you’ll have the opportunity to add new services and expand your operation as your business prospers in later months and years.
If your structure ends up being too small, it can have costly consequences. It can give a competitor the chance to offer the services you simply don’t have room to offer, for instance, and prolong the time it takes for you to recover the initial investment you made in your venture.
The amount you’ll pay for the equipment your business needs depends on numerous factors, including the sort of car wash you open, the brand of equipment you choose to buy and your location. Equipment for a self-serve car wash generally runs between 50,000 – 150,000 per bay.
No matter what kind of car wash you establish, it’s likely you will need the following equipment, at a minimum:
• Washing system, such as a conveyor tunnel or self-service wands
• Chemicals, such as cleaning and spot-free solutions
• Water system
• Payment processing system
Signage: Your car wash’s sign is one of the most valuable marketing tools you have to promote your business. It needs to be readily visible from the road and able to be read quickly by passers-by. Don’t clutter your sign with too much artwork or verbiage, or use a color scheme that makes it difficult to read when illuminated.
Costs of Owning a Car Wash
With the costs of construction, signage, and other things, it’s obvious that the cost of owning a car wash will begin to grow even before you open your doors to the public for the first time. Additional expenses you’ll need to cover before you’re ready to welcome clients at your facility include labor and marketing costs.
While you won’t need to hire employees until your car wash is relatively close to opening for business, you will need to hire people prior to opening your doors so they can be trained to operate your business’ equipment and handle customers appropriately. The number of people you’ll need to hire is directly related to the kind of car wash you decide to own and operate.
The average number of people employed at a full-service car wash is 14, for instance, while the average number of employees necessary to operate a conveyor cash wash is four. In-bay automated car washes can run unmanned around the clock, but you will still need to employ someone to maintain your equipment regularly to avoid unnecessary or premature repair and replacement expenses.
The marketing options that are available to you include the following:
Hand Out Flyers:
Before your business opens, hand out flyers to people who pass by your location on foot and those who stop by in their vehicles to ask questions. While it’s illegal to put flyers in mailboxes that don’t belong to you, you can distribute flyers by putting them in the newspaper holders underneath the mailboxes belonging to people located within five miles or so of your business.
You can ask other non-competing businesses to make your car wash’s flyers available to their customers by leaving them on an accessible countertop or bulletin board, as well.
If it’s permissible, hang posters on telephone poles and other places that see a lot of foot or vehicle traffic. Depending on the relationships you have with other business owners, you may even be allowed to hang a poster in their storefront, especially if your reciprocate by giving their clients a discount on their first car wash at your facility or offering another attractive incentive.
If it’s affordable, you can also market your business by sending postcards to your neighbors who live in the vicinity of your car wash. You can include a coupon on your postcard, or use it to invite people to attend a grand opening celebration. In general, it’s ill-advised to host a grand opening until you’ve been open long enough to work out any kinks that might be present in your operation. If you’re going to have a grand opening, consider scheduling it for a month after you’re been open to the public.
Visit Radio Station:
You don’t necessarily have to pay for air time on the radio to promote your business. Instead, you can schedule a time to visit with a popular, local radio personality to discuss your new car wash with him or her in an interview setting. You can describe the benefits your business will bring to the area, such as new job opportunities, and mention any charity drives your business will support in the future.
You can also ask a radio station to broadcast one of its popular shows from your car wash’s location during your grand opening, or another high-profile event.
Use Social Media:
Using social media is one of the most cost-effective ways for you to market your business. After an initial investment to have a website created for your business, you generally only have to invest time in social media such as Facebook, Instagram, Pinterest and Twitter to promote your business and offer specials that are available only to your social media followers. Of course, you also have the option to purchase advertising that will specifically target people who live and access the Internet close to your business location, as well.
Set Up a Loyalty Program:
Even before you open to the public, you should set up a loyalty program. This will encourage people to return to your car wash beginning with the first time they use your services.
Implement a Texting Program:
As you collect contact information for your clients, you’ll be able to implement a texting program. Depending on the ages included in your target demographic, your clients may be more apt to use a mobile or digital coupon instead of one they have to clip or print. You can use text messaging to notify your customers about current or upcoming deals and events affordably.
For instance, you can offer them a discount that will automatically be applied to their account if they respond to your text message with a certain word or sequence of numbers. Be sure to limit the number of texts you send to about one per month or so to avoid irritating your clients with non-stop pings that could be embarrassing if they’re in a business meeting or occupied with a sensitive personal matter.
As it is in any industry, the highest potential cost of owning a car wash is failure. Fortunately, many resources are available that can help you succeed in the short- and long-terms regardless of the type of car wash you ultimately decide to own, including people who are already in the business.
Small business owners ordinarily like to help other entrepreneurs succeed, often because someone helped them when they were starting out. With this in mind, visit other car washes and talk to their owners. If you have questions, ask them. If you need advice, ask for it. Learn from their experiences and apply what you learn to your business.
Learn everything you can about the car wash industry by reading relevant print and online materials and continue educating yourself throughout your career as a business owner. Stay abreast of the latest industry innovations by joining organizations such as the International Car Wash Association and attending seminars and workshops, as well.
Costs for Car Wash Care and Maintenance
If you own a car wash, you’re no doubt intimately familiar with the common car wash repairs and costs that take place on a daily basis around the business. You know that no matter how well business is going, there are still likely to be plenty of repairs and the like going on behind the scenes that the customers would never guess.
But have you ever stopped to think about all the factors that contribute to the final dollar value you spend on maintenance and repair? If you already have a firm grasp on these figures, you might think you know all there is to know about these types of expenses. We’re willing to bet that there is more to learn, however. And if, on the other hand, you feel you don’t know much at all about common car wash maintenance costs, we hope you’ll learn a bit about them today. To help you out, we’ve put together this guide to walk you through all the ways you can help make the most of your maintenance and repair budget. By the time you’re finished reading here, we think you’ll be ready to tackle and understand any expenses of these types with no trouble at all.
Different Types of Maintenance Expenses
When it comes to car wash maintenance and the costs thereof, it’s important to realize that these can fall into one of two different categories. While these two classifications have a lot in common, they’re distinct and perform unique functions within the context of your business operation. Let’s break these two categories down know and see how they compare and contrast with one another.
1. Preventative Maintenance
This is the category of maintenance and related expenses that’s completed before anything has been broken or damaged. While it might seem silly or unimportant to perform maintenance when everything is operating in a perfectly normal manner, the exact opposite is true. By keeping your equipment functioning and healthy, you’re helping to increase the odds that they ever break down and need true repairs done in the first place.
You might compare this type of maintenance to a twice-yearly dentist’s appointment. Even if your teeth are perfectly healthy, experts still recommend that you visit your dentist on a regular basis. Why? Because the dentist can provide a more thorough cleaning than you normally get, and this helps decrease your chances of developing a more serious problem down the road. Furthermore, your dentist will take this opportunity to check for any problems that may be developing that you would not notice at home.
In the same way, preventative maintenance performs these same functions for your car wash and equipment. It helps prevent future problems that could potentially put a halt to your operations or cost you a lot of money. Preventative maintenance also gives you the opportunity to check for the beginnings of serious, underlying problems you might otherwise miss until they become major issues and it is too late to do anything but replace the item in question.
2. Reactive Maintenance
Reactive maintenance is the opposite of preventative. As its name suggests, reactive maintenance consists of your reacting to damage that has been done. This type of maintenance occurs after the equipment has already been broken. Maintenance of this variety seeks to repair this damage or replace the broken part so that your car wash can resume operations, just as good as new.
To continue with our dentist analogy, if preventative maintenance can be compared to your regular checkups, then reactive maintenance could be compared to trips to get a cavity filled or your wisdom teeth pulled. In other words, something has gone wrong and you need reactive maintenance to fix the problem or problems and restore things to their normal working status-quo.
While preventative maintenance serves the dual purpose of preventing new damage and catching the start of damage before it gets worse, reactive maintenance serves a single purpose: to fix existing damage. The two types of maintenance are related, however, in that a lack of preventative maintenance will almost surely lead to an increase in reactive maintenance. And because reactive maintenance usually involves fixing an actual problem instead of just routine maintenance, this type of work typically costs more as well.
The Value of Maintenance
There is no question that maintaining your facilities and equipment will cost money. Even basic preventative maintenance inevitably detracts from your profits to some extent. However, consider what could very easily happen if you stopped performing preventative maintenance.
With nothing to prevent your tools and facilities from becoming damaged, things could begin breaking down. And while preventative maintenance costs money to perform, reactive maintenance is usually much more expensive. If the equipment breaks so badly that it needs to be replaced, this will cost even more money. In addition to these expenses, you will also have to deal with the cost of business potentially coming to a halt because your facilities are being repaired. By comparison to this kind of disaster, we can see that preventative maintenance is very affordable indeed.
If you’re struggling with the idea of spending money on preventative maintenance, it might help to think about it as just another cost of running a business. In your calculations, simply include it with business costs such as keeping the electricity on, paying your employees and so on.
Another way to think about your maintenance work is as an investment. By keeping your facilities and equipment in good working order, you’re investing in the future of your business. You’re investing your time, money and personnel toward ensuring your business will remain functional and healthy for the foreseeable future.
How to Save Money on Maintenance
It may sound counterintuitive, but the truth is that the more attention, time and detail you dedicate to preventative maintenance, the more money you’ll save overall on car wash repair costs. This is because preventative maintenance can often prevent larger problems and catch these problems while they’re still in their infancy.
If you’re looking to cut down on your reactive maintenance costs, the simplest way to do it is by bulking up your preventative maintenance. As you settle into your routine of maintenance and cleaning in your car wash, here are a few additional tips to help you make the most out of your repair costs.
1. Create a Maintenance Checklist
Based on these definitions of the different types of maintenance, we can conclude that while reactive maintenance only occurs on an as-needed basis, preventative maintenance must be performed regularly. But how do you know how often you need to do this? We recommend creating a checklist of tasks that you perform regularly.
To determine how often these tasks need to be performed, follow these steps:
• Follow the Recommendations: Most tools and equipment will come with recommended cleaning schedules dictated by the manufacturer. If none are available, contact the manufacturer and ask. To begin getting a feel for how often you should perform maintenance and routine cleaning on these items, start by simply following these directions. Even if you choose to never advance your routine beyond this point, this is a good idea. If you do choose to continue developing your schedule, this is an excellent starting point.
• Work in Your Environment-Specific Concerns: Working from the manufacturer’s recommendations, begin adding in any concerns that are specific to your car wash. Do you notice that one particular piece of equipment is treated unusually roughly? Care for this more often. Is there another tool that is never used? You might be able to clean it less. Is there a certain area that is often exposed to heavy amounts of chemicals? Take special care with anything in this area. While the manufacturer’s recommendations are a great place to start, your concerns are specific to you and will need to be implemented well.
• Think About Seasonal Needs: Your car wash may have specific needs based on the time of year. Things may need to be cleaned more during your busy season, or more during the winter when road salt is being tracked in and is covering everything. By considering all three of these factors and taking them all together, you’ll create a cleaning and maintenance schedule that’s perfect for your car wash and its unique situation.
2. Know Where the Problem Areas Are
As the owner or operator of a car wash, you should try to develop a keen awareness of where the problem spots in your facilities are. By this, we mean you should know where things are most likely to break or be damaged. Depending on your operations, areas can become problematic for any number of reasons. It could be that they see the most traffic, are the most delicate, are the hardest to maintain, or any combination of these reasons.
No matter why certain spots in your operation are problematic, it’s your job to figure out where these places are and keep a close eye on them. Give them extra attention when cleaning and performing preventative maintenance. Give them a quick glance whenever you have a spare minute. By doing these things, you are more likely to be able to prevent damage in these spots before it occurs.
3. Set a Good Example
Ideally, you want your car wash to be a place where everyone respects both the equipment and the facility as a whole. You want it to be a place where things are kept clean and tidy and where tools are treated with care. One of the first ways to create this impression is by practicing what you preach.
Keep the spaces neat. Set dress codes that dictate employees need to be dressed in clean clothing. Don’t allow dirt and grunge to build up anywhere in your facilities. Create a work environment that sets up punctuality, precision and cleanliness as high standards that need to be upheld. When you do this, your employees will follow suit and customers will also be less likely to create messes as they pass through.
4. Get to Know Your Equipment & Chemicals
To truly notice when your equipment is becoming worn out or damaged, you’ll need to develop a level of deep familiarity with it. After all, you’ll rarely be able to notice a problem if you never step out of the office and interact with the equipment yourself.
Don’t be afraid to become familiar with your equipment. See how the tools work. Learn how they’re supposed to move and operate. Get a feel for each piece of equipment individually.
By becoming acquainted with your facilities when they’re functioning correctly, you’ll be more likely to notice when something is off. You’ll notice that one brush is becoming loose, or a hose isn’t working quite like it ordinarily does. Because you’re familiar with the equipment, you’ll notice these slight irregularities that would otherwise go unnoticed.
5. Buy Cleaning Chemicals & Equipment That Makes Maintenance Easy
One of the best ways you can help yourself out when it comes to maintenance is by buying high-quality equipment in the first place. If you simply buy the cheapest option, odds are good it will break before too long regardless of the maintenance you perform on it.
Instead, buy quality equipment that will last. It will cost more up front, but it will save you money in both maintenance and lost business if you have to shut down due to equipment failure. When buying new equipment, you should also take care to buy equipment that will be easy to maintain. No matter how many fancy bells and whistles a piece of equipment might have, be wary of buying it unless it looks as though it will be easy to maintain.
Click here to get the complete guide on the above business plan Click Here
Uses of this Business Plan (PDF and Word)
This business plan can be used for many purposes including:
• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your business
• As a business proposal
• Assessing profitability of the business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation
Contents of this Business Plan (PDF and Word)
This business plan include:
• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in this business fail, so that you can avoid their mistakes
• Ways to raise capital to start your business