Need advice on purchasing a car wash business

[CFused]

I'm 25 and I've been saving up for a few years. I have a good amount of money saved up and I feel that I'm ready to make an investment in purchasing a business. I currently have a great paying job and excellent credit, but feel as though I want to try venturing out into something else. I've been thinking about investing in a car wash business (Not sure what type yet).

I have a good friend who also has a full time corporate job and is partly interested. Would it be a good idea to partner up as it'd be easier allocating time between the two of us for maintaining the business?

What are some things I should look out for when looking for a type of car wash business to purchas?

Can anyone offer any advice specifically or generally in this type of business?

 

[Mr.Aap]

See if you can get a part time job at the type of wash you would like to purchase and if you still think you want to do it after 3 months then do it.....But working at one 3 months in the summer and 3 months in the winter will be completely diffrent....

 

[Greg Pack]

At 25, you're getting off to an early start, good work!

+1 on Aap's advice. Even a week or two of work in the wash may change your opinion of the biz dramatically.

Do you intend to keep your "regular" day job? If so, SS/IBA might be the best option. But if you're willing to swap careers than express tunnel might be a good option. At your level of expereince I could not recommend a full serve wash.

Do not believe these are passive businesses. They will occupy your spare time and a good bit of your weekend

I would not partner with anyone if I could avoid it. You may lose your friend if you do.

Don't pay too much for the business. IMO, Return on investment needs to be north of 10% some will say it needs to be 15-20%

Scrutinize the P&L's carefully, and believe them only if they have bank statement and tax returns to back them up.

Don't amortize over too long a period- I like 15 yr max.

Your business needs to be close to home-less than a half hour drive.

 

[Another carwash owner]

All good advice. I started by talking with other carwash owners outside my demographic area of interest. Get the real skinny on the business. With any business it has good and bad points. Carwash magazines are very helpful. Find a location with little or no competition and great traffic count and population. Good luck and don't buy or build near me.

ACO

 

[jjw]

A quote from 1962 with a fellow named Ray. He was asked why he though he could make money by selling hambugers. Ray replied " I'm not selling hambugers I'm buying dirt." Remembering this has made me a succesful business man. Location, what is the value of the dirt at your choosen location if you may want to "push" the wash down. Washes are great for generating cash on dirt that is waiting to blossom in value. Car washes can beat you up if your not of the disposition to deal with the public. I just put on the duck wax and let it run off. A wash is like a dairy farm 30 hrs a day 8 days a week. Best spend the monies on a MBA, about the same amount of work and good investment in the future. jjw

 

[Danny]

This all good advice, take it all to heart, these are well experienced operators. I am sure they will all agree that in this industry the only way you can truely be prepared is with experience. LOL and sometimes thats not enough. If you get a part time job working in a wash make sure the operators are well experienced and willing to teach. Make friends with the local distributors, managers, owners and pick their brains, they have the experience. The distributors see hundreds of locations including the brilliant ideas, average ideas, and the horrible ideas. Managers have typically worked their way up through the ranks and understand first hand what every job entails. The type of wash depends on you and what your situation allows, as the others have stated.

Good Luck!
Danny
www.WASHWAYUSA.com

 

[CFused]

Thanks for all the great advice I really appreciate it! I do plan on keeping my job while maintaining this business. I understand this is definitely not a passive business, nor is any brick and mortar business really, and I know there is going to be alot of work involved which I am willing to do. That being said, I am wondering how many hours a week would you estimate is needed to maintain your business if it's either completely SS or both SS/IBA?

 

[MEP001]

It depends on how much you're willing to do yourself, or can do yourself, for example a lot of touchless autos are high-maintenance, and if you're not mechanically inclined, expect to spend a lot of money with your distributor. Ours is a Vector, and there's nothing I can't repair or replace myself (though I was a car wash tech for ten years). It has no routine maintenance other than checking the tire pressure once a month, but others have a twice-monthly maintenance that takes several hours each time. You'd need a PM plan, a service call or an afternoon of your time, and if you can't afford any of these things then you'd already be in trouble.

General clean-up, count on at least two hours a day, more if it's rural because of mud. Twice a day is always better because it won't ever get really bad, which is both easier to keep up and just looks routinely better. Day-to-day maintenance should average another 30 to 60 minutes a day, more if you include pulling money and restocking the changer.

Try to be around the wash as much as you can when it's busiest, which means weekday afternoons and weekends. It makes the customers feel more comfortable when they know there's someone to help them if there's any problem.

By myself, I fully maintain a 6-bay self-serve and 1 auto, and it takes me about 25 hours a week, however I'm meticulous in both my maintenance and cleaning.

 

[bigleo48]

To add to MEP001's important topic...I am an engineer, I have worked with my hands (not just the pencil) for 25 years. I like to think that I can fix just about anything given the time and tools. I have a SS wash bays with IBA, Pet washes, vacs, ATM, etc. I do everything, including all maintenance. I even make my own signage. With a busy wash, there is always something needs fixing. I could be unplugging a drain one minute, rebuilding a pump next and then troubleshooting a computer or network. The carwash uses all my abilities to the fullest. I can't imagine what less skilled operators do or how much they spend having someone else do the work for them. You don't need to be an engineer, but you do need to be very well rounded mechanically, electrically and electronically. Then there’s the customer service skills.

I took 2.5yrs to research my wash before building... and I had the cash saved up to do it. My wife is an accountant and her skills were also greatly required and used.

I remember when I was 25 and I can't imagine that I had what it takes to do this back then. It will take you a great deal of time and determination to get it done. Don't take any shortcuts as they will take away from your learning experience and likely cost you more down the line.

Good Luck to you...Big Leo

 

[CFused]

Thanks again on the advice. Are there any websites that any of you recommend reading?

 

[pitzerwm]

You are on it.

 

[ted mcmeekin]

Agree with MEP on maintenence. We have two MK VII machines (one 6.5 years old and one 3 yrs old). Only preventative maintenence is oil changes , greese and other minor stuff. We have never had a service call. I have a technical background and my son is finishing up a 2 yr electrical tech program which has helped him alot., We are fortunate to have a very reliable machine and a tech savy distributor who has always pointed us in the correct direction on the more complex corrective maintence issues. Good luck

Ted

 

[mac]

Trust me, this is the premier website for anyone thinking od getting into this, or for those already in it. Remember, almost every other web site is sponsorded by an equipment manufacturer or distributor. Nothing rong with that, we all gotta make a living. This site is mainly here to provide unbiased info.

 

[scott]

I'm not sure how far back in the archives you can go, but I'd bet I put in over 100 hours reading all the old posts in the "old" forum, before I bought my wash-there is almost no way to put a value on what I learned reading this forum..Thanks Bill

 

[scott]

A quote from 1962 with a fellow named Ray. He was asked why he though he could make money by selling hambugers. Ray replied " I'm not selling hambugers I'm buying dirt." Remembering this has made me a succesful business man. Location, what is the value of the dirt at your choosen location if you may want to "push" the wash down. Washes are great for generating cash on dirt that is waiting to blossom in value. Car washes can beat you up if your not of the disposition to deal with the public. I just put on the duck wax and let it run off. A wash is like a dairy farm 30 hrs a day 8 days a week. Best spend the monies on a MBA, about the same amount of work and good investment in the future. jjw

jj, you got first hand dairy experience? I was a dairyman for 10 years before this- definitely makes me appreciate washing cars for a living....

 

[www.TheSoCalWay.com]

I just hired a consultant out of the NC area to assist me with starting a car wash from the goround up. Maybe you can look into doing the same.

 

[Mike2212]

I found a list of resources that could be helpful. LINK

I would recommend getting in touch with a Small Business Development Center or SCORE to further refine your plan.

Good Luck