How to Run a Car Wash Business

To manage a car wash, you need to plan for the future.

To successfully manage a car wash, you'll need to balance basic management skills with industry-specific skills related to environmental issues, the effect of water quality on equipment and cars, and employee and customer safety. If you want to grow the business, you'll also want to stay informed of industry trends, and plan for the future.

Things You'll Need

• Business plan
• Employee manual

Instructions

1. 

   Set your prices to stay competitive.

   Price your services so that you charge enough to cover your labor, material and overhead costs and still make a profit, while staying within range of your competitors. It can be very difficult to develop a pricing strategy, so the U.S. Small Business Administration (SBA) suggests that you work with a consultant, such as PricePoint Partners.

2. 

   Use your employee manual to manage your employees.

   Refer to your employee manual whenever an issue comes up with your employees. Even self-service car wash businesses need employees, and therefore employee manuals. Chris Simeral, author of “Start Your own Car Wash: Your Step-by-Step Guide to Success” recommends that the employee manual documents all of the services your car wash offers and how to complete each process, along with employee policies regarding tips, commissions, uniforms, scheduling, complaints, discipline, drugs, and the termination process. All employees should also know the company’s mission, as stated in the business plan.

3. 

   Newspaper advertising is most effective for car washes, says Chris Simeral, author of "Start Your Own Car Wash."

   Budget a portion of your income to spend on marketing, which is essential to any car wash business, says the International Carwash Association (ICA). A common marketing strategy for car washes, according to the ICA is to budget about 2 percent of gross sales to spend on advertising, promotions and other public relations efforts for an existing business, or 10 percent for a new business.

4. 

   Safety should be a priority when you manage a car wash.

   Keep your facilities and equipment clean and well-maintained at all times to prevent accidents, advises Simeral in “Start Your Own Car Wash.” A car wash can be full of safety hazards, from slippery floors to harsh chemicals, so safety must be a priority for both your employees and your customers, says the ICA, which provides a list of valuable safety resources on its website.

5. 

   Insure your company adequately, for both employees and liability, and make sure to pay all of the required taxes for car washes in your city and state. These taxes and fees can vary significantly by location, so contact your local Chamber of Commerce for the most current local information.

6. 

   Forecasting helps you plan for success.

   Plan for growth. According to the SBA, one of the main reasons most businesses fail is inadequate planning, so managers must always look ahead. Consult your business plan again, says Entrepreneur Magazine in “Charting your Business Timeline,” and make sure all of your company processes are documented. Then, get ready to grow.

References

• The International Car Wash Association: Operator Information -
• Small Business Administration: Manage your Business -
• Entrepreneur Magazine, "Chart your Business Timeline," Mark Henricks, July 2009
• "Start Your Own Car Wash: Your Step-by-step Guide to Success," Chris Simeral, 2003

Resources

• PricePoint Partners
• CNN Money "Message to Entrepreneurs: Get Tough," Jay Goltz, August 2009