Bankruptcy

[thecasino5]

Hi everyone! I really am just planning for the worst and like to know if I at least have some sort of way out if starting my in bay automatic business does not go as planned. The plan is to renovate an existing in bay automatic with a new system (specifically a wash world profile or ryko maxx 5 brush). I am quite confident in the business plan I created working out for the greater good but I always overthink and like to ensure I am covered if the income does not line up as originally planned. I live in Hawaii so I do have to order containers to be shipped here with the new systems which range from $15,000+ to get shipped. I was wondering that if all things go bad are there people on here or is there a place or website where someone would be willing to buy my system off of me? I guess what I am saying is if the business ends up not being profitable and I need to liquidate do you think there are people on the mainland that are willing to buy the brand new equipment (granted the equipment may be a couple months used by then) from me? If so, do you think people will at least pay 50% of the system or less or more? Love to hear your thoughts! And I know it sounds like I am contradicting my whole confidence in the business but like I said I do tend to overthink and plan for the worst.

 

[Rocketman]

So......

Why not focus on the SS portion of the business while you build revenue, customers, and confidence. Maybe you can use the IBA portion that is not in use as a hand wash or detail that can be rented out?

I own a laundromat and work full time. I am going on 16 years of ownership. I started slow, kept the place clean, bright, provided good customer service and eventually got rid of 10 top load Speed Queen washers and replace them with brand new front loaders. I then purchased 2 60 lb washers to replace the old 55 lb washers that were there. All of the purchased equipment has been paid off and then some.

Any chance you can do that while you are getting started?

 

[thecasino5]

So......

Why not focus on the SS portion of the business while you build revenue, customers, and confidence. Maybe you can use the IBA portion that is not in use as a hand wash or detail that can be rented out?

I own a laundromat and work full time. I am going on 16 years of ownership. I started slow, kept the place clean, bright, provided good customer service and eventually got rid of 10 top load Speed Queen washers and replace them with brand new front loaders. I then purchased 2 60 lb washers to replace the old 55 lb washers that were there. All of the purchased equipment has been paid off and then some.

Any chance you can do that while you are getting started?

Unfortunately, no. There are very limited opportunities in doing a SS as this is a single in bay automatic attached to a gas station...

 

[thecasino5]

So......

Why not focus on the SS portion of the business while you build revenue, customers, and confidence. Maybe you can use the IBA portion that is not in use as a hand wash or detail that can be rented out?

I own a laundromat and work full time. I am going on 16 years of ownership. I started slow, kept the place clean, bright, provided good customer service and eventually got rid of 10 top load Speed Queen washers and replace them with brand new front loaders. I then purchased 2 60 lb washers to replace the old 55 lb washers that were there. All of the purchased equipment has been paid off and then some.

Any chance you can do that while you are getting started?

Here is a picture for reference of what I mean

 

[Rocketman]

Hmm. Understand. Obviously not being in the mainland adds another variable to the decision process.

 

[traveler17]

There are sites to sell used equipment, eBay , carwash consignment and here
Does the gas station you are putting the machine have much business? Is the wash that’s in there currently running ? When it was how many cars a day was it washing? Is there another wash near where you want to put the new one in?

 

[Joswhaha]

Interesting, even if you weren’t successful in this venture. You could probably convince someone locally to take over your bay lease and buy the new machine from you for half of what you paid for it Or maybe they would takeover your payment or something like that. You would just need to find the right person for the situation.

Also, I assume you have done a ton of due diligence to determine if it is feasible to install a new IBA in this location.

 

[thecasino5]

Oh yes, for sure have and am getting my 5 year pro forma done soon. I just tend to overthink and even with due diligence and having a killer location it really depends on the people taking the chance to using the new car wash which I guess what I am worried about. My target is to get at least 25 cars a day or 750 cars a month which with my location (right off an intersection) with 15,000 cars passing a day and next to no competition it seems to good to be true.

 

[Waxman]

When I created my pro forma years ago, it had a best case worst case and a hopeful average scenario.I would get all that completed before you start worrying too much about bankruptcy.

 

[soapy]

I would be sure to find a average cost of business per month. Add up all expenses and hedge a bit on the high side. Then look to see how much you will have to do daily to satisfy the debt. Not much resale value in any used equipment.

 

[tdlconceptsllc]

How many gallons a month does the gas station Pump that will tell you everything. If it doesn't pump 100-150,000 gallons a month of fuel I wouldn't do it that means it's a slow C-Store little business. It also sounds like you need to be Highly mechanically inclined to fix everything yourself. I would go with Washworld just for technical support since you on a remote location. Are you the owner of the C-Store if not you need a solid 10-15 year lease set in stone with a set price. What's the water Quality like in Hawaii? What grain of Hardness? How expensive is city water & sewer there also? These are all questions you need to know

 

[Greg Pack]

My question would be why is the location available and what is wrong with the current machine?

 

[thecasino5]

My question would be why is the location available and what is wrong with the current machine?

The location was originally owned by a large gas corporation here on the island called aloha gas and it seems they just never took care of the machine. The machine has been in since the store has so over 20 years old and it has since stopped being in operation for the last two years (but the actual gas station and minimart which the car wash is attached to is still in operation). The gas station is scheduled to be closed I believe sometime this year hence me trying to go and just rent out the car was portion of the building. Reason for gas closing is I believe because they opened a brand new gas station just right up the street I guess it took most of its customers. In the future I might be interested in leasing the whole space and maybe converting it to a laundromat so I would have a car wash and laundromat combo. (also location is not technically "available" but rather me going and talking to the landlord and seeing if its an option for me to lease it and as of now seems like they may be giving me the green light soon )

 

[thecasino5]

How many gallons a month does the gas station Pump that will tell you everything. If it doesn't pump 100-150,000 gallons a month of fuel I wouldn't do it that means it's a slow C-Store little business. It also sounds like you need to be Highly mechanically inclined to fix everything yourself. I would go with Washworld just for technical support since you on a remote location. Are you the owner of the C-Store if not you need a solid 10-15 year lease set in stone with a set price. What's the water Quality like in Hawaii? What grain of Hardness? How expensive is city water & sewer there also? These are all questions you need to know

According to google Hawaii has one of the lowest hard water and is almost considered as soft water in most places. When you say I need a good 10-15 year lease what do you mean exactly? I was looking to maybe get a 5-8 year lease to start. What is your thought's on that? I do know Hawaii has one of the most expensive utilities in the country. From what you experienced how many gallons of water does one car wash go through?

 

[OurTown]

If the gas station is closing then if it were me I would not do it. It's not going to have any traffic coming into the property and can't sell any washes at the pump. That's really the point in a C-store wash.

 

[Dan kamsickas]

So you're looking to lease a single IBA(that's been non-working for 2 years) that is attached to a gas station that is failing due to better competition (and expected to close soon), invest at least $150K in a new machine, and then at least another couple hundred grand into converting said failed gas station into a laundry mat, all on property you don't own? If I'm missing something here let me know but I can't see how this is even remotely a good idea unless you have a LOT of cash burning a hole in your pocket and you need need a lot of loss write offs on your taxes.

 

[traveler17]

According to google Hawaii has one of the lowest hard water and is almost considered as soft water in most places. When you say I need a good 10-15 year lease what do you mean exactly? I was looking to maybe get a 5-8 year lease to start. What is your thought's on that? I do know Hawaii has one of the most expensive utilities in the country. From what you experienced how many gallons of water does one car wash go through?

I would think he’s saying DO NOT do this and invest that kind of money unless you have a long term lease.

 

[traveler17]

So you're looking to lease a single IBA(that's been non-working for 2 years) that is attached to a gas station that is failing due to better competition (and expected to close soon), invest at least $150K in a new machine, and then at least another couple hundred grand into converting said failed gas station into a laundry mat, all on property you don't own? If I'm missing something here let me know but I can't see how this is even remotely a good idea unless you have a LOT of cash burning a hole in your pocket and you need need a lot of loss write offs on your taxes.

You mean that doesn’t sound like a good plan?

 

[MEP001]

You mean that doesn’t sound like a good plan?

IMO any plan that includes the serious consideration of bankruptcy from the start is a bad one.

 

[tdlconceptsllc]

Don't do it regroup my freind it's that easy we all finally got the full details on this project. If you buy the entire property and lease the store out and keep the carwash for yourself is not too bad but still high risk. However I would not spend 250K renovating carwash and having a short term lease I couldn't fathom the idea. 10-15 year minimum lease. I would pass all together. Last Question who Owns the Gas Tanks in the ground store owner or Oil Company?

As how many gallons a month on a steady Automatic figure 100,000 gallons of water x whatever your sewer/water cost are plus power and are you gonna have to pay the property Taxes also.