Monday, 10 October 2016

STARTING A CAR-WASH BUSINESS IN NIGERIA


This is a business that is gaining popularity by the day. I know of a friend, Bennett who grew up with an uncle of his in Enugu who saw him through school. He washed his uncle's car every other morning before he leaves for work. The uncle never wanted to know if there was water, all he wanted was his car to be neat as he leaves in the morning. Bennett was always meeting up on the demand. After school he worked for two years and just didn’t like the idea of confining his whole being and time to a job that didn’t give him much while taking all of his time. The money wasn’t much but it attended to most of his needs and the side needs of his immediate family. But it wasn’t something to rely on as he was looking to be married soon. He put himself to serious thought. I want you to remark this: humans have clues here and there to be successful but they hardly notice these clues. Most people I know who are doing well in one vocation or the other today came from poor or average homes, and it was the activities they did while growing up that inspired their businesses today. This my friend thought about car-wash business. It didn’t require much at least in the area he lived to start it. It’s a suburb of the city with average earners and handful of what we can call rich people. But there were cars in the neigbouhoood. He rented a small space with a ridiculous amount, bought a N4500 plastic drum, and filled it with water, bought two buckets and detergents. That was how he started. He put a signpost, told a few people whom he knew that had cars about the business. He initially worked on weekends by himself, but when people began to call him often and he wasn’t  always available because he was still with the firm he work with, he talked to a hood boy who he knew was idle and the hood boy brought a friend to man the shop every day and he joined them on weekends. He paid the boys according to the number of cars washed per day.

Mind you he started with what many people wouldn’t want to start with in such business. After two months he was thinking of getting a big reservoir thank and professional car washing equipment. He quitted his job and now has the leading car wash in the city with a nice environment for people to relax. He has employed about five people, planning to open another car wash somewhere, has his time to do other things and happy. It’s good to start small, trade your shame.

How to open a carwash business
Apart from the example I gave above about Bennett, there are people who could have enough capital to start it big in car-wash business. These are the people that can go all the way to invest in it without a moment’s thought. Opening a car wash business can be fun, interesting, and profitable business for somebody with business interest and perseverance. With the right location, good marketing, and top-notch service, you can draw in numerous customers who need their cars washed quickly, efficiently, and at a good price. However, opening a car wash business also requires a significant investment, good planning, and attention to detail in order to make your business profitable.

Investigate the competition in your area. In order for your business to be competitive, you need to thoroughly research the other car-washes in your area. If you have already chosen a location for your car wash, scope out all the competition within a few miles. What services do they offer? What are their prices? How do they market their business? How often are customers using the services? Take notes as you investigate the car washes. You can go back and review them as you make plans for your car wash. Also pay attention to the other businesses around the car washes. If a car wash has a high volume of customers, what are some of the factors that are contributing to this? Is it located in a busy shopping center or right off the highway?

Draw up a detailed business plan. A business plan will help you get financing to start your car wash and think through the details of your business. Make your plan as detailed as possible. The business plan should include an introduction, market analysis, company description, organization and management, marketing and sales strategies, product/service, equity investment and funding request, financial information. The introduction should include your Executive Summary, table of contents, and a cover page. Your market analysis demonstrates your knowledge of the car wash industry and the results of any market research and analysis that you have done. Who are your customers and what are their purchasing habits? What are the risks, strengths, and weaknesses involved with opening a car wash? What is your projected revenue based on the current market and future market trends? Your company description should include information about your car wash business and why you think it will be successful.

The organization and management section should detail the structure of your company, the board of directors, and the qualifications of your management team. The marketing and sales portion should clearly outline your marketing strategy. How will you get customers? What avenues will you use to reach them? What is your overall sales strategy?

The product or service section outlines exactly what you will be selling. How does your car wash business fill a void in the market? Why would people want to use your car wash as opposed to other car washes? The equity and funding section details exactly how much money you will need to start your business and what financial resources you already have to invest in the business.

The financial information is the most important part of your business plan and should be reviewed by an accountant or financial planner. Include your personal financial information, any existing businesses you have, a list of debts, projected income for five years, and certification that your information was reviewed by a third party financial adviser.

Find the investment capital to open a car wash. You can finance your new car wash through bank financing, a loan from family and friends, or through private investors. You will also need to have some cash of your own saved up to secure financing from others. The best way to do this is by presenting your business plan to your potential investor and shows how your idea can be a viable business. However, you can start with the little you have in a scale it can carry you. You can start up with a low price to attract customers.

Choose the location for your car wash business. Having the right location can make or break your business. A successful location should be near a shopping center, in a high traffic, residential area, be easily and visible accessible from the road, allow for expansions and business growth, and have enough space for cars to line up. Your sign is visible to drivers for at least 40 seconds. Ideally, traffic should travel past at no more than forty miles per hour so drivers have time to see your signage and make that split-second decision to have their cars washed. Choose a place large enough to accommodate the at least 6 to 10 cars or less. One or half plot of Land is okay.

A bore hole with submersible or any steady source of water supply but a low starter can start with reservoir tank.

Register your business with the Corporate Affairs Commission in your state. It is necessary to respect the law so you can do your business with ease.

Buy equipment. You will typically need to buy a washing system like reservoir tank, pressure washer, cleaning solutions, wax, spot free rinses, pressure machine or steaming machine, dryers, blowers, vacuums, brushes, towels, original hose and pipes compressors, pumps, and a water system e.g. boilers, water heater, water filtration, customers’ stand, where to sit watch T.V while their wash their cars are washed etc.

Market your business. Use a multifaceted approach to advertise your business that includes flyers, posters, and an online presence. The signage for your car wash should be colorful with clear messaging. Make sure that people can easily see it from the road. A popular way to get new customers is by distributing coupons or discounts for car washes. Also, develop relationships with other small businesses located near your car wash. Social media is an important aspect of marketing these days. Set up a website and establish a presence on Twitter and Facebook. Make sure any of the paper items that you have include links to your website and social media accounts. Use your website to share information about taking care of your car and other relevant tips.

Final note

Car-wash business is a very profitable business in Nigeria, considering the dusty and muddy nature of our environment. Cars get dirty even if they are just parked. Since people need to clean their cars regularly you are always sure of a steady market.

1 comment:

  1. Market your business by installing signage at your facility, handing out or mailing fliers to local businesses and homes and other marketing methods you desire. Consider placing advertisements in newspapers and local organization or association publications. Start a Mobile Car Detailing Business

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