There are so many considerations to think about before opening an automated carwash business. So, let’s do an actual case study from a real entrepreneur outside of a major city doing a little business planning prior to making the decision to go for it or not.
First, we note that the small town, suburb, did have some previous challenges with their city sewer system, and needed some upgrades to comply with law, thus, increased sewer fees, which would be even more for industrial users, which a carwash would be thought to be in such a category. Oh, there are a lot more things to consider besides that minor hick-up, so let’s talk shall we?
The entrepreneur was very wise to check out the competition in the area and noted two competitors with tunnel carwash operations with affordable rates namely $3-5 for your very basic wash, with add-ons if the customer was so inclined. The property is only a quarter-acre and that makes things tight, but there are properties adjacent which could be available. So, the question might be could the new operator do a lease option on the adjacent properties, and is the secondary piece of property owned by a non-resident owner?
Next, we need to look at such things as water availability; what are the water restrictions? Are you under level one drought? What are the level II drought procedures and rules? Sometimes they shut down car washes during level two droughts.
What I am saying is this, to be successful in business, you need to understand all the details before you start, borrow the capital, or take the entrepreneurial plunge. Please consider all this and think on it.