New here...thinking of getting into the fun

[Frank]

Thought I would introduce myself. My name is Frank...young, 29yo. I have had a long time dream of owning my own car wash. I have the opportunity to purchase a turn key, 5 bay self serve, 1 bay auto wash, and I'm considering taking the plunge.

I am looking for information on what to consider in this leap of purchasing my first business.

Some questions I have:

This is something I want to do, run myself...maybe one employee...and be my source of income. The realtor says this shouldn't be an income rather an investment. Your thoughts? The books I saw showed this location profiting with more than I make now, and would provide me with a nice lifestyle.

It does need some updating. It needs lights, it needs paint, no CC machine, no surveillance the ally behind the wash is dirt...etc. etc.

The mechanics are good. Rebuildable (good) pumps, drains are good, everything works and every time I drive by it, its never broken down.

The price is super great. I would still "lowball" them just to see what would happen...its been on the market for over a year now.

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Other thoughts:

I would like to "expand" into a mobile detail/car wash. Basically "go to them" for a hand wash/wax, etc.

My dad is getting to the age where he cant do what he has done for the last 30 years and he is thinking of slowing down a bit. My dad isn't as business minded as I am. Is this a bad thing of considering him as my only employee.

I am a former Marine. I would be purchasing this via the VA/patriot loans. Any negative to this?

Any input would greatly be appreciated.

-Frank

 

[Waxman]

I would pay a carwash consultant to evaluate this site rather than guess, go on your own feelings or ask a realtor.

What any realtor knows about any business could be very little.

What you want to look at are tax returns (3 years) of the business.

Rehabbing a wash can get expensive.

Running a carwash is hard work, but you're a Marine, so you know about work.

Don't do mobile detailing. Do it at your carwash if you do take the plunge. You could always pickup and deliver the cars to wash and detail (included coverage for such service should be part of your insurance policy).

Look at it this way; if you pay a carwash consultant say $3500 (random figure) to evaluate the site and he says go for it and you are a success, that was money well spent, right? Conversely, if you spend the same $3500 and the consultant gives you a solid:"no, do not buy the wash for the following reasons...", then that could be the best money you ever spend, EVER. Get it?

 

[Frank]

I would pay a carwash consultant to evaluate this site rather than guess, go on your own feelings or ask a realtor.

What any realtor knows about any business could be very little.

What you want to look at are tax returns (3 years) of the business.

Rehabbing a wash can get expensive.

Running a carwash is hard work, but you're a Marine, so you know about work.

Don't do mobile detailing. Do it at your carwash if you do take the plunge. You could always pickup and deliver the cars to wash and detail (included coverage for such service should be part of your insurance policy).

Look at it this way; if you pay a carwash consultant say $3500 (random figure) to evaluate the site and he says go for it and you are a success, that was money well spent, right? Conversely, if you spend the same $3500 and the consultant gives you a solid:"no, do not buy the wash for the following reasons...", then that could be the best money you ever spend, EVER. Get it?

Great advice. I had no clue that there were car wash consultants. I will look into that. Thanks!

The mobile service...will consider all options once things get going. It probably would not be something I would do right away, rather something to think about in addition to the facility. I would not put it in a business plan.

I wouldn't call it rehabbing per say, just updating. The lights, CC machine and security is the only "rehabbing" I think it needs. The paint and such, I think are normal things I should take into consideration of doing yearly.

One thing I should have mentioned...I guess my biggest draw back is why is it still for sale? Why was it on the market for so long? Why haven't any other investors jumped on it? My thoughts on this...it was placed on the market at the beginning of the recession and taken off the market just before last winter hit...October-ish. There is no for sale sign on it now...

That said, they are selling it simply because it is now a franchise. -they maintain their own equipment. Their repairman makes a 2.5hr trip for anything that needs to be fixed. Its simply to costly for them to maintain the facility. -at least that is what they tell me.

I understand the work that goes into running a business. Having never owned a business, I know this from my in-laws business. It has gone from a garage to a 14k sq ft business in 10 years. Business is their life.

 

[Louise]

They haven't been able to sell it because buyers cannot get financing. Despite our bank bailout, banks are not lending money.

I placed my wash on the market just as the recession hit. I pulled it off about 1 year later.

If you can get acceptable financing, you are in the driver's seat.

Best of luck.

But to another point, is this equipment manufactured by the franchise?? If it is, thoroughly investigate the availability of parts - which break - ALOT.

 

[pitzerwm]

IMO, I'd make the contract say that the Franchise is dead. I can't imagine any that I would want to own.

 

[Frank]

They haven't been able to sell it because buyers cannot get financing. Despite our bank bailout, banks are not lending money.

I placed my wash on the market just as the recession hit. I pulled it off about 1 year later.

If you can get acceptable financing, you are in the driver's seat.

Best of luck.

But to another point, is this equipment manufactured by the franchise?? If it is, thoroughly investigate the availability of parts - which break - ALOT.

Equipment is not manufactured by the franchise. Its all "3rd party" products. Soaps and such are of course franchise material. The was will no longer be part of the franchise, should I buy it. Thats why they are selling it.

Sucks about the money. I hope I dont hit that wall.

Thanks for the advice.

 

[pitzerwm]

What Franchise name are you referring to? All of the old franchises bought their equipment from 3rd parties, but messed with them so you couldn't.