Newbie buying an existing self serve wash

[bubbleboy]

I am looking to buy a self serve wash. This business has an IP camera and accounting system that can be viewed at home online.

My question is. Is it too much to ask if I request the seller to allowed me access to view the business via internet to monitor the amount of wash that this business is getting a day.

Thanks.

 

[Randy]

No I don?t think it?d be too much to ask. Why don?t you also ask him if you work the wash at no cost to him so you can get the feel of it?

 

[JMMUSTANG]

Ask him for 3 yrs. financials and see how his business is really doing.
In my area there are a lot of washes for sale and not one has seen sales rise in several years. Not a good sign.
Some of them sold a 1-3 years ago and are back on the market again because it's so bad right now.

 

[Greg Pack]

Randy offers a great suggestion. Offer to work there for a week, free of charge. You will get a much better feel for the place and the business in general.

 

[rph9168]

I would get the financials before working in the wash. Your decision should be based on profitability. If it doesn't work financially why work at the wash and possibly become "attached". You should avoid making a bad decision based on your feelings for the wash rather than profitability.

I have seen way too many people get burned by saying "I know the other guy failed but I know I can do it better" Unless there are some real obviously poor operating issues that affected the operation make a smart decision based on facts not feelings.

 

[Vender]

The best way to evaluate both the quantity of cars washes and the efficience of the equipment is to obtain copies of the water bill and look at the usage.

 

[MEP001]

The best way to evaluate both the quantity of cars washes and the efficience of the equipment is to obtain copies of the water bill and look at the usage.

A good idea in theory, but what if they've left something leaking for years, which will skew that reference? It would also in no way evaluate the efficience of the equipment, since it can only be used as a baseline in comparison with something else. If, for example, each pump is using the proper amount of 3 GPM, then you can reverse-estimate the income. If you want to see if the equipment is wasting water, you'd have to know the correct income to estimate correct water usage.

 

[PaulLovesJamie]

excellent advice in the responses so far, I second all of it.
And I'll add: read everything in the old forum, you can link to it from the main forum page.

Would this be the first small business you own?

 

[MEP001]

And I'll add: read everything in the old forum, you can link to it from the main forum page.

I think Bill has finally killed the old forum - the old address and the link to the old one just take you here.

 

[Ric]

A good idea in theory, but what if they've left something leaking for years, which will skew that reference? It would also in no way evaluate the efficience of the equipment, since it can only be used as a baseline in comparison with something else. If, for example, each pump is using the proper amount of 3 GPM, then you can reverse-estimate the income. If you want to see if the equipment is wasting water, you'd have to know the correct income to estimate correct water usage.

If it is in the the north and the wash weeps water for freeze protection that will also skew the numbers. I would not rely on water bills to determine income, not in the northern states anyway.

 

[MEP001]

I would not rely on water bills to determine income, not in the northern states anyway.

Not at all, in my opinion. It's too easy to fudge.

 

[showntell]

Financials

A couple of ideas:

1) Look at the water bills. Only compare gallons used, not dollar figures;
2) Look at tax returns from the past 2-3 years;
3) Request Bank Statements from the seller and cross-reference those with the tax returns;
4) Ask to place security tape on the cash boxes on a certain day and come back the same day the following week with the seller to count the money, verifying that the security tape has not been broken and, thus, the boxes have not been stuffed with cash. I am in a law suit right now with a seller who I allege stuffed the changers and bill acceptors when I came to count money, as well as falsified tax returns. Cash is easy to manipulate;
5) Have a written document certifying the tax returns you are viewing for the car wash is only for that property and does not include any other businesses.

Work hard on your due diligence. It is well worth it in the long run!