Introduction to how to start a car wash business with low investment
A car wash business is the most attractive one which makes you become a successful entrepreneur. There are many advantages if you start a car wash business in India. These include careful and excellent vehicle cleaning and maintenance, which makes a car wash, appear to be a safe investment. Then this blog would be the ideal one, to explore how to begin a car wash business with low investment.
Ideas on how to start a car wash business with low investment
The automobile industry has improved in recent years considerably. The car washing zone is an evolving business in India. Generally, automated car washing offers pace and handiness. Currently, consumers consider services and products that save time. The market has demand for the auto laundry industry which is increasing rapidly. Car washing machines, car wash equipment, and the advanced technology in them have led to a big impact on the industry over the past years.
If you run the business carefully, you can expect good car wash business profits in India. The car wash description was given with all the details in this blog. You can also find all the details required for a car wash company profile to set up in India. Before planning the business you need to know about the car wash business equipment.
Here is a stepwise car wash business plan in India
You can begin the business in two methods. The first option is purchasing a franchise and the next is having its own brand. You can get a lot of popular car wash franchises in the present Indian market. Starting a franchise car cleaning business is feasible than operating a new own brand. However, own business gains more profit, and the possibilities for its expansion are also high than for the franchise model.
Car wash business profits
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The car wash business currently is highly profitable in cities. Some of the explanations are the following:
- Potentially high-gains for a successful car wash
- It’s still a fragmented industry, so it is likely to shape a strong regional brand
- Availability of funds for start-up and lending
- Unlike other industries, such as food, this segment does not commonly spoil
- Many allied services can be delivered in the same unit.
- The payments are also is immediate.
Location for starting car wash business
This is business is not meant for rural areas. Thus, it is suggested to initiate the business in the metropolitan city than in a town. Selecting a location is an essential aspect of this business.
You can set up the car washing zone close to major shopping malls, other market places having high footfall. Make sure, washing zone is not built within a one-mile radius of an already present car wash.
It is preferred to choose a location with slow cross traffic. The store should have quick and easy entrances for all types of vehicles. Usually, modern car washes depend on impulse purchases.
How much does it cost to start a car wash business
Beginning a car wash business requires medium capital investment. First of all, you must invest in owning the space. It is essential to start a business in your location. In case you are not having the proper owned space, you can opt for rental accommodation.
Apart from the space, you must arrange a reliable water source which is very important for the continuous water supply. Other major finance-related expenses include building the shop, staffing, procuring equipment, and marketing expenses.
License and permits for car wash business
Starting a car wash business needs several licenses and approval from the local authority. And it differs from state to state. It is recommended to check the local guidelines and regulations of the area where you are planning to start the business. Here, we have mentioned a few of the basic checklists.
For initiating the business, you must first register the business.
- Apply for MSME Udyog Aadhaar online registration.
- Next, check the nature of the land.
- Apply for a trade license from the local municipal authority
- Take consent from the pollution control board for waste disposal.
- Lastly, the tax liabilities and yearly compliance liabilities for your business should be done.
Car wash equipment
You will get many types of equipment in the market. The equipment and tools come with different benefits, features, and price ranges. However, you must procure the equipment according to your particular need. You can also get the equipment in the leasing facility.
Car wash business operation
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For regular operations, you must hire skilled manpower. Moreover, you can ask for the equipment supplying a factory for providing on-site training. The requirement of the number of workers is determined by the size of the washing zone.
Before you begin to offer the services, you should be having the proper business tools. The accounting application is the most essential aspect here. Accepting and managing bookings, printing money receipts, raising tax invoices, etc. are the few major requirements in the car wash business.
Additionally, your finance section must be ready for the annual auditing for filling the income tax annually. Obtain proper accounting software on a daily basis and bookkeeping to track records.
Fix the cost properly. Broadly, you can set the price for both a one-time service and on monthly basis. Additionally, you can allow different rates for different services. For instance, cost price for an exterior wash servicing, only interior cleaning service, or for both likewise.
Promotion and proper marketing are the very essential aspects of reaching success in your business. And if you are initiating the business of your own, you should have your creative thoughts for establishing a regional brand. Select the proper name of your business with a relevant logo and catchline. Moreover, maintain your staff with a uniform that gives a professional impact on your clients.
In the beginning, you can offer some attractive discounts to your clients. This is indeed a perfect promotional strategy. The car owners of the locality must know about your washing zone. If possible, get an online booking system to obtain orders via phone or website. Try to have your car wash business available on Google my business as well.
Automatic car wash equipment
Nowadays the automatic car wash equipment is available in the market which costs Rs. 17 lakh-25 lakhs, depending on the company and the features which you opt for. But this would be a bit costly for the people who want to set up the business on a small scale.
The cost involved and calculation for car wash business profit
To start the manual car wash business all you need is a high-pressure jet spray, a water tank, and a motor for increasing the water force along with the shampoos and few other things that are essential for the business to run successfully. You can charge Rs. 100 for a motorcycle and Rs. 250 for four-wheelers.
Costs involved the run a car wash business in India, includes the following –
These costs can be split into variable costs and fixed costs. The variable cost includes – electricity, natural gas, water, detergents/chemicals, and repairs/maintenance. While the fixed cost includes – site labor, administrative expenses, rent/mortgage & property taxes.
If you plan the carwash business near the parking areas or near the offices, it would fetch you with daily business. In that way, you can easily get the sale of Rs.1,00,000 per month you will take home around Rs. 50 to 60,000 after all the expenses. Just two people are enough to start a business where you can hire them for a minimum salary of Rs. 10,000.
The conclusion to start a car wash business
This business is very much profitable and anyone can run this.
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