how to write a business plan on car wash

How to Write a Business Plan for a Car Wash: Complete Guide

• February 16, 2023

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Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) to open a new car wash , you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car wash business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors .

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car wash?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for your car wash?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the 5 main paragraphs:

• Business overview : introduce your car wash company: what is your business model (hand wash vs. automated car wash ; franchise vs. independent business), how many car wash bays will you operate, how many employees will you have, where will the car wash be located, etc.
• Market overview : briefly analyze the car wash industry in your service radius (area), your competitors and target customers (average income, demographic distribution, etc.). One important question you must answer here is how big is your target market is . Also outline the specific problems in your service area that you intend to solve and how you differ vs. competition
• Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

2. Business Overview

The Business Overview segment of your car wash business plan will introduce your company and try to answer some important questions that potential investors and lenders may have. Here is a sample list of questions that you must try to address in the company overview section:

• Why are you opening a car wash service?
• Where is your shop located? Why did you choose that location?
• What services will your offer?
• What will be your pricing strategy ?
• What will be your operating hours?
• Who is your target audience ?
• How many car wash bays will you operate?
• What will be the legal structure of your company?

a) History of the Project

Any business must have three components:

• Passion & experience of the business owner
• The rationale behind you starting this business today

Passion & Experience

You must be passionate about the business and demonstrate the same to the potential lenders and/or investors through the business plan.

Also, you must have some experience or training in this type of business. For example, you might have been a senior manager at a car wash in the past and want to build your own today.

The business must try to resolve some issues in its current area of operation. For instance, there may not be any 24×7 car wash facility in the area or maybe there are no full-service car wash facilities nearby and your company will resolve that problem.

b) Business Model

Describe the business model that you will adopt in this sub-section. Try and answer some questions like:

• Will you acquire an existing car wash facility, a franchise? Or will you start your own car wash business from scratch?
• What type of car wash is it (full-service, automated, self-service, hand wash, etc.)?

For example, here are a few examples of the different types of car wash:

• Full-service car wash : This vehicle wash is the most thorough. The automobile will have its outside cleaned, the inside of its windows washed, and its inside vacuumed. Customers wait in the waiting area
• Self-service car wash : There are self-service car washes in practically every town for those who enjoy washing their own vehicle. These car washes allow customers to wash their own vehicle anyway they choose with high-quality solutions and brushes and wands
• Brushless car wash : The phrase “brushless car wash” is used in the industry to describe vehicle washes that use soft cloth pads as equipment. Because they are gentle on a car’s surface, cloth and more recent synthetic variants of cloth are frequently utilized, and regular brushless car washing greatly reduces the risk of paint oxidation
• In-bay touchless automatic car wash : This is a reference to the touchless car washes that may frequently be seen at convenience stores and gas stations. When using a touchless in-bay automated car wash, you pull your vehicle into a bay as directed by the LED signs, and the machinery works its way around your vehicle to clean it using carefully formulated detergents and pressurized water streams

c) Pricing Strategy

Explain the pricing strategy of all your car wash services in this segment. Essentially, you must provide an estimated price range for specific services.

We strongly recommend you include here a pricing list for the products and services that you will offer. You don’t need to provide precise numbers. Average pricing will do.

Offering a pricing table is important because your pricing strategy will allow investors to tie your pricing strategy with your financial projections .

d) Legal Structure

Finally, your business overview section should specify what is your company’s legal structure.

Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if you want to open a brushless car wash facility, which happens to be the only facility of its kind in the area, it makes sense.

Similarly, if your car wash facility is a self-service facility in an area with a high percentage of white-collar workers and mothers with children (who generally prefer conveyor facilities over self-service facilities), the business will not succeed.

Therefore, you must cover 2 important areas in the market overview section of your business plan,:

• Market trends : how big is the car wash industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
• Competition overview : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : what is your target audience (customers)? What type of cars do they have? How much do they spend on car wash services per year?

a) Car Wash Industry Status Quo

How big is the car wash industry in the us.

The US car wash industry is estimated at $13 billion in 2021 , and is expected to grow at 3.1% from 2022 to 2030. Factors driving market growth include stringent environmental regulations that restrict residential car washing in some states.

How big is the car wash industry in your area?

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market .

To give you an example, let’s assume you plan to operate in an area where there are already 30 car wash businesses:

As we know, the US car wash industry is worth $13 billion today, and there are about 60,000 car wash businesses across the US. This means the average annual turnover per car wash is around $220,000. Now, we can safely assume that the car wash industry is worth $6.5 million in your area .

How fast is the car wash industry growing in your area?

Growth is an important metric for assessing the status of the car wash industry in your region. 

Here if you don’t find information online or via your research, you can calculate growth using the total number of competitors in your area. 

For example, assuming there were 25 competitors in the region in 2018, and 30 in 2022, the car wash industry growth rate in your area is about 5% per year .

What are the current car wash market trends in your area?

It is vital to understand the car wash trends in your target location because it will allow you to come up with effective marketing strategies . 

The best way to perform your research will be to talk with your potential customers. Also, you can study competing car wash facilities to get an idea of the type of customers they receive, the services they provide, etc.

Some common questions you may ask the target audience include:

• What type of car wash facility do they want?
• How many vehicles do they have in a family?
• How frequently do they avail car wash services?

b) Competition overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their products and services, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Car Wash SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : 5 years of experience in full-service and brushless car wash; eco-friendly and bio-degradable chemicals cycled through water reclamation system’s purification system; a team of highly specialized team with experience in equipment, etc.
• Weaknesses : Startup costs, no initial reputation / brand image
• Opportunities : High percentage of resident car owners and located close to businesses with delivery and company cars
• Threats : Established competitors with large existing customer base and years of operational experience

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

c) Customer analysis

This is a section where you should provide a detailed analysis of your target audience. Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Number of vehicles per family
• Average monthly income and disposable income
• Average annual spend on car wash service per household
• Social group preferences and distribution
• Inclination towards loyalty programs & free perks

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and the needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost ?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do car wash companies use?

A few marketing channels that car wash facilities typically use are:

• PPC ads, Facebook ads, etc.
• Print media
• Direct ZIP code mailing
• Innovative TV & radio ads
• Loyalty programs
• Word of mouth
• Local listing
• Cross promotion together with nearby local businesses

It is not necessary to use all channels. You can start by focusing on a few of them initially and expand later on.

Also, you must have a fair and nearly accurate estimate of your marketing budget. Failure to display a well-planned and adequate cash flow for advertising and marketing may lead to investors losing confidence.

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Convenience : 24×7 automated car wash – no more rush hours
• Price match : Find a lower price in 20-mile radius and we will match it
• Freebies : Enjoy free Wi-Fi, TV, and coffee while you wait

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car wash business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the car wash facility you are proposing. If they have specialized training and education (such as car wash chemistry, equipment maintenance, equipment control, etc.), add that information.

Organization Structure

Even if you haven’t already hired a service manager, coordinators, sales & customer service, administrative assistant, receptionists, etc., you must provide a flowchart of the organizational structure defining the hierarchy of reporting.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your car wash is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to start a new car wash business, or add a few car wash bays, etc.)
• The 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For an auto repair business, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

• Lease deposit or loan downpayment for the real estate
• The car wash bay
• Other car wash equipment

Assuming you do not buy the land and the building but decide to rent instead, it costs on average $50,000 to $150,000 depending on the type of car wash you operate. For more information on how much it costs to open and run a car wash, read our complete guide here .

c) Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model for your car wash.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics and KPIs , key assumptions and benchmarks used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 15%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of cars you service over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of members as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of the business plan of your car wash . Now that we have explained what type of car wash services your company would offer, at what price, your marketing strategy, management and people, this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations? Or will it cover the cost of the salaries of your childcare staff and other employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car wash financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Privacy overview.

This free example has limited access and cannot be modified.

Car Wash Business Plan Template

Written by Dave Lavinsky

Car Wash Business Plan

You’ve come to the right place to create your Car Wash business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their car washes.

Below is a template to help you create each section of your Car Wash business plan.

Executive Summary

Business overview.

Eco-Clean Car Wash is a startup car wash company located in Boston, Massachusetts. The company is founded by Thomas Wright, a former car wash manager who has gained valuable insights in how to run a car wash during his time working at Clean & Dry Car Wash. Now that Thomas has garnered a positive reputation for his exceptional management skills, he is ready to start his new company, Eco-Clean Car Wash. Thomas is confident that his ability to effectively manage staff and operations combined with his winning customer service record will help him successfully open and run a profitable car wash.

Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any vehicle owner. Eco-Clean Car Wash will be the ultimate choice in Boston for people looking for an eco-friendly car wash option. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.

Product Offering

The following are the services that Eco-Clean Car Wash will provide:

• Eco-Express Car Wash
• Full Service Eco-Clean Car Wash
• Eco-Car Detailing
• A La Carte Services (vacuuming, window cleaning…)

Customer Focus

Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash. No matter the customer, Eco-Clean Car Wash will deliver the highest quality car care and the best customer service.

Management Team

Eco-Clean Car Wash will be owned and operated by Thomas Wright. Thomas is a former car wash manager for another local car wash. He has gained valuable insights in how to run a car wash business during his time working for Clean & Dry Car Wash. Thomas is a graduate of the University of Boston with a Bachelor’s degree in Finance. He will be in charge of the finances, supplier relationships, and eco-initiatives for the company.

Thomas has recruited an experienced car wash attendant, Patrick Collins, to be his co-manager and oversee the maintenance of the equipment and handle the training and management of the car wash attendants. Patrick Collins has been the top performing car wash attendant at Clean & Dry Car Wash for over five years. Thomas relies strongly on Patrick’s diligence, attention to detail, and focus when providing car detailing services, inspecting equipment, and training car wash attendants.

Success Factors

Eco-Clean Car Wash will be able to achieve success by offering the following competitive advantages:

• The management team, car wash attendants, and car detailers will all provide exceptional service for every customer that comes in for a car wash. The attendants will be trained to employ a high attention to detail to ensure every vehicle is cleaned to perfection.
• Eco-Clean Car Wash strives to live up to its name. The company uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services like vacuum only or window cleaning only.

Financial Highlights

Eco-Clean Car Wash is seeking $350,000 in debt financing to launch its car wash business. The funding will be dedicated towards securing the property and purchasing car wash equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, utilities, and marketing expenses. The breakout of the funding is below:

• Property purchase and build-out: $200,000
• Car wash equipment and supplies: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Eco-Clean Car Wash.

Company Overview

Who is eco-clean car wash.

Eco-Clean Car Wash is a newly established full-service car wash located in Boston, Massachusetts. Eco-Clean will be the most reliable, eco-friendly, and high quality choice for vehicle owners in the Boston area. The company’s eco-friendly approach is built on less water, less energy, and more customer service. Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any eco-conscious vehicle owner. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.

The company’s management team is dedicated to training all employees on the best practices for car detailing and customer service to exceed customer expectations. Each car wash attendant and auto detailer is trained to practice attention to detail and thorough cleaning of each car that comes through the car wash.

Eco-Clean Car Wash History

Eco-Clean is owned and operated by Thomas Wright, a former car wash manager who has a Finance degree from the University of Boston. Thomas has worked for a local car wash company and managed a small team of car wash attendants. Thomas’s tenure with the car wash company has given him the skills and knowledge required to venture out on his own and start his own car wash. Thomas has gained a reputation for being an exemplary manager and has a list of car wash attendants who have expressed interest in working for his new company.

Since incorporation, Eco-Clean Car Wash has achieved the following milestones:

• Registered Eco-Clean Car Wash, LLC to transact business in the state of Massachusetts.
• Has identified the desired location and vacant property to purchase for the car wash.
• Reached out to potential suppliers of chemical-free products and eco-friendly car wash equipment to get quotes.
• Began recruiting a staff of car wash attendants and car detailers to work at Eco-Clean Car Wash.

Eco-Clean Car Wash Services

Industry analysis.

The global car wash industry is an estimated $33B market with North America boasting the most car washes of any region. The United States alone contributes to approximately 43% of the total global market share with over 60,000 car wash locations operated by 16,000 companies with over 163,000 employees across the country. The states with the most car washes are California (2,025) followed by Texas (1,465), Florida (1,289), and New York (901).

The market for car washes is highly fragmented with no major players and no companies with more than 5% market share. The most common types of car washes are self-service bay, detailing services, in-bay automatic wash, hand washing, exterior only, and full service. In-bay automatic car wash stations are the most popular, with 51% of customers preferring this type of car wash.

Car wash operators who use eco-friendly products and run eco-friendly facilities can gain a competitive advantage especially among millennial and Gen Z customers who prefer eco-friendly options and are willing to spend more money on these products and services.

Customer Analysis

Demographic profile of target market.

Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash.

The precise demographics for Boston, Massachusetts are:

Customer Segmentation

Eco-Clean will primarily target the following customer profiles:

• Owners of cars, trucks, vans, SUVs, motorcycles, and RVs
• Eco-conscious consumers

Competitive Analysis

Direct and indirect competitors.

Eco-Clean Car Wash will face competition from other companies with similar business profiles. A description of each competitor company is below.

Clean & Dry Car Wash

Clean & Dry Car Wash is a full-service car wash located in Boston, Massachusetts. The car wash offers a wide variety of car wash and detailing services including automated, self-service, handwash, and no-water wash options. The company is owned and operated by car enthusiasts who know the importance of car care and are dedicated to providing quality service for their customers. Clean & Dry Car Wash ’s promise is to deliver personalized customer service, exceptional car washes, and low prices.

Classy Bubble Car Wash

Classy Bubble Car Wash is a Boston-based car wash and auto detailing company that provides outstanding service to car owners. Classy Bubble Car Wash makes it easy to get a high quality car wash without the hassle. The company provides comprehensive full-service car wash services for cars, trucks, vans, and any other standard-sized vehicle. The owners of Classy Bubble Car Wash are car detailing professionals so they understand how a thorough detailing job should look. The company has three tiers of car wash packages to choose from – basic, premium, and extra premium. Customers can choose eco-friendly product options like chemical-free soap and waterless washes for an additional fee.

Shine Clean Car Wash

Shine Clean Car Wash is a trusted Boston-based car wash that provides superior service to car owners in Boston and surrounding areas. The company has three locations throughout the city and is able to provide a one-stop shop for anyone looking to get a quality car wash fast. Shine Clean Car Wash provides full-service car wash and auto detailing packages. The company’s car wash attendants are trained in efficiency to provide the quickest service possible and get customers back on the road sooner.

Competitive Advantage

Eco-Clean Car Wash will be able to offer the following advantages over their competition:

• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services such as vacuuming or window cleaning.

Marketing Plan

Brand & value proposition.

Eco-Clean Car Wash will offer the unique value proposition to its clientele:

• Eco-Clean Car Wash uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing.

Promotions Strategy

The promotions strategy for Eco-Clean Car Wash is as follows:

Social Media Marketing

The company will invest in professional marketing services provided by a local marketing firm. Social media marketing will be one of the most effective and low-cost strategies for gaining brand awareness and increasing the company’s customer base. The marketing firm will help manage the social media presence by creating and updating various social media accounts such as Twitter, Instagram, Facebook, and TikTok.

Print Advertising

Eco-Clean Car Wash will invest in professionally designed print ads to display in flyers, newspapers, magazines, and direct-mailers.

Broadcast & Streaming Media Advertising

The company will invest in commercials to be played on broadcast networks, podcasts, and streaming services.

Website/SEO Marketing

Eco-Clean Car Wash will work with the same local marketing firm that created their social media strategy to also make the company website. The website will be well organized, informative, and list all the services and pricing options that Eco-Clean is able to provide. The website will also include information on all of the eco-friendly initiatives the company is implementing and ways customers can get involved. The marketing firm will also manage Eco-Clean’s website presence with SEO marketing tactics so that when someone types into the search engine “Boston car wash” or “car wash near me”, Eco-Clean Car Wash will be listed at the top of the search results.

The pricing of Eco-Clean Car Wash will be premium. Customers come to Eco-Clean Wash for high quality eco-friendly washes and superior service. However, customers will also have the opportunity to receive steep discounts for participating in eco-friendly incentives and promotions.

Operations Plan

The following will be the operations plan for Eco-Clean Car Wash.

Operation Functions:

• Thomas Wright will be the Owner and Co-Manager of Eco-Clean Car Wash. He will oversee all finances, supplier relationships, and eco-initiatives for the company.
• Patrick Collins – Co-Manager who will be responsible for all car wash equipment inspections, car wash operations, and attendant training/management.

Eco-Clean will outsource many of its business functions including marketing, maintenance, and recruitment. The company will use business management software for customer relationship management (CRM), accounting/bookkeeping, and employee scheduling.

Milestones:

Eco-Clean Car Wash will have the following milestones complete in the next six months.

10/1/2022 – Finalize contract to purchase property.

10/15/2022 – Purchase car wash equipment and supplies.

11/1/2022 – Begin build-out of the car wash facility.

12/15/2022 – Begin recruiting and training car wash attendants.

1/22/2023 – Implement the marketing campaign.

2/1/2023 – Eco-Clean Car Wash opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Eco-Clean Car Wash are the car wash fees that will be charged to the customers in exchange for car wash and detailing services.

The cost drivers will be the overhead costs required in order to staff a car wash. The expenses will be the payroll cost, utilities, car wash supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of car washes per month: 2,000
• Average fees per month: $35,000
• Commercial property mortgage payment per year: $60,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Car Wash Business Plan FAQs

What is a car wash business plan.

A car wash business plan is a plan to start and/or grow your car wash business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your car wash business plan using our Car Wash Business Plan Template here .

What are the Main Types of Car Wash Businesses?

There are a number of different kinds of car wash business , some examples include: Automatic or Tunnel Car Washes, In-bay Automatic Car Washes, Self-service, and Mobile Car Washes.

How Do You Get Funding for Your Car Wash Business Plan?

Car wash businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a car detailing business plan or a car washing business plan.

What are the Steps To Start a Car Wash Business?

Starting a car wash business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Car Wash Business Plan - The first step in starting a business is to create a detailed business plan for your car wash  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car wash business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car wash business is in compliance with local laws.

3. Register Your Car Wash Business - Once you have chosen a legal structure, the next step is to register your car wash business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your car wash business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Car Wash Equipment & Supplies - In order to start your car wash business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car wash business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful car wash business:

• How to Start a Car Wash Business

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Car Wash Business Plan

Alongside everything, a spick and span car is crucial to looking immaculate. After all, who would spare a glance at a dirty car even if it belongs to an expensive brand?

And if you love cars and cleaning and restoration is your forte then a car wash business can be an extremely profitable one for you.

Moreover, minor restoration services like fixing dents and scratches, and doing paint jobs can make your services well-rounded and a one-stop shop for your customers.

Industry Overview

According to sources, the global car wash market stood at a market value of 27.8 billion US dollars in 2020 and is expected to grow at an increased pace moving forward as well.

As the demand for convenience and purchasing power of the consumer has increased, activities like washing cars which people did themselves in the past are being outsourced increasingly.

People today are willing to pay a good price for convenience and quality services. Hence, providing quality services is essential if you want to attract and retain customers.

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Things to Consider Before Writing a Business Plan For Your Car Wash Business

Having a good team is important.

This might not hold well for every business, but forms a mandatory aspect for a car wash business. Having employees who know what they are doing and are highly skilled at their job is crucial to the success of your car wash business.

Hence, it is important to get skilled people on board.

Use technology to your advantage

Car wash services are changing and so is the way of doing it. Having the right technology that is cost-effective as well as helpful in providing quality services is crucial to the success of your car wash business.

Moreover, having the right technology also helps you stay updated and ready to meet the changing and rising demands of your customer base.

Identify your marketing channels

Every business should market through channels where its target audience is most likely to be. This helps you make marketing efforts that are effective and yield results.

As a car wash business, it is important to have both online and offline marketing strategies. Because a huge number of people look for services online these days. Apart from that, a majority of your customer base would be people living in your locality, which makes it important to have a good offline marketing strategy.

Pick a good location

A location that is both easily visible and convenient for your customers is essential for a car wash business to work. A good location is easily accessible, has a lesser number of competitors surrounding it, is convenient to park into, etc. Although it might be difficult to find an ideal location , try to find one that covers the maximum number of attributes.

Why do you need a business plan?

A business plan can help you with the following:

• It can keep you updated with the latest trends and technologies in the market.
• It helps you know your customers better.
• It helps you manage your finances better.
• It helps you organize your daily business activities better.
• It helps you manage your team properly.

All in all, a car wash business plan comes in handy for organizing and managing your business better. It makes running your business a hassle-free process, which in turn helps you provide quality services and have a profitable business.

Write Your Business Plan

If you are planning to start a new car wash service business, the first thing you will need is a business plan. Use our sample car wash business plan created using Upmetrics – Business Plan Software to start writing your business plan in no time.

Before you start writing your business plan for your new car wash business, spend as much time as you can reading through some samples of cleaning, maintenance & repairing related business plans.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample Car Wash Business Plan template for you to get a good idea of what a perfect car wash business plan should look like and what details you need to include in your stunning business plan.

Car Wash Business Plan Outline

This is the standard car wash business plan outline which will cover all important sections that you should include in your business plan.

• Venture Description
• Carmen Perez
• Marketing Plan
• Keys to Success
• Financial Plan
• Legal Form of Business
• Anne Klinesmet
• Ted Holster
• Gerald Lance
• Hiring Plan
• Compensation and Ownership
• Employee Reward and Incentive Plan
• Purpose of Our Services
• Features and Benefits
• Our Services
• Related Products/Services and Spin-Offs
• Current size
• Growth potential
• Industry Trends
• Other Characteristics
• Distribution Channels
• Target Market Profile
• Customer Profile
• Future Markets
• Direct Competition
• Indirect Competition
• Future Competition
• Competitive Analysis
• Marketing Strategy
• Advertising and Promotion
• Telemarketing/Direct mail
• Trade Shows
• Pricing Policies
• Break-even Analysis
• Income Statement Projections
• Balance Sheet Projections
• Cash Flow Statement

After  getting started with Upmetrics , you can copy this sample car wash business plan into your business plan and modify the required information and download your car wash business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample car wash business plan

Need help writing your business plan from scratch? Here you go;  download our free car wash business plan pdf  to start.

It’s a modern business plan template specifically designed for your car wash business. Use the example business plan as a guide for writing your own.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Write a Winning Car Wash Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for car wash business owners who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every car wash business owner should include in their business plan.

Download the Carwash Business Plan Template

What is a Car Wash Business Plan?

A car wash business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Car Wash Business Plan?

A car wash business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Car Wash Business Plan

The following are the key components of a successful car wash business plan:

Executive Summary

The executive summary of a car wash business plan is a one to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your car wash company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your car wash business , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your car wash firm, mention this.

You will also include information about your chosen car wash business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a car wash business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the car wash industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a car wash business may include people who regularly get their car washed (e.g., every two weeks), those who only wash their car when it’s necessary (e.g., when it’s visibly dirty), and those who never wash their car (but, may take it to a detailing service once or twice a year).

You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or car wash services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your car wash marketing plan . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your services here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them, if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or, you may promote your car wash business via word-of-mouth marketing.

Operations Plan

This part of your car wash business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person? What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a car wash business include reaching $X in sales. Other examples include expanding to a second location, launching a new service, or hiring additional staff.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific car wash industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Car Wash Business

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Car Wash Business

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup car wash business.

Sample Cash Flow Statement for a Startup Car Wash Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your car wash company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is a critical document for any car wash business. If you are seeking funding, it can help you obtain it.  

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Car Wash Business Plan

The business of car washing has been around for over a century. Back in 1914, Automated Laundry, the first-ever car wash business, launched in Detroit. Fast forward to today, countless car wash businesses are serving customers around the world. If you have plans to open a car wash, you should make it a reality. The best thing about the car wash industry is that there’s not one company having major control of it. Every aspiring car wash business owner has an equal chance to earn a steady footing. With that said, we invite you to use our Car Wash Business Plan Examples and start planning your profitable car wash business!

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What Is a Car Wash Business Plan?

A car wash business plan contains info about a car wash business’s goals, operations, and strategies. It’s just like any other simple business plan ; the only difference is that it focuses on a car wash business, as its name implies. A car wash business is a type of dynamic commercial cleaning business. Because of that, you have to prepare a lot of things to open one. And that’s why you need a car wash business plan doc to have a recorded, written guide of what you must do and accomplish.

How to Get More Customers for Your Car Wash Business

One of the major challenges in owning a car wash business is getting customers. So before we show you how to make a car wash business plan, we’ll share some tips to bring more people to your car wash.

Locate Your Car Wash on a Busy Road

Right from the beginning, when you first have the idea of opening a car wash, your plan should be to locate it on a busy road. It doesn’t matter if you make thousands of car wash flyers, build a billboard , print  posters , or distribute  brochures to attract people. They won’t help much if you establish your car wash in a remote area. It’s simple. Busy roads have more cars passing by it regularly. And more cars means more customers will come across your car wash.

Stay Open for Longer Hours

Some of your potential customers might be late-night drivers. So you should consider staying open for longer hours. This might require you to hire more attendants. But it’ll pay off because you’ll have more customers at night. You can even let your car wash operate for 24 hours a day. Vehicles such as taxis and delivery trucks are traveling at night. Their drivers could stop by your car wash and let their vehicles experience your cleaning services. Speaking of delivery trucks, you can exclusively add truck wash services to your business.

Establish a Customer Referral Program

Another method to attract more customers to your car wash is by encouraging your regular customers to invite their friends and family. The best approach for that is by establishing a customer referral program. You can reward discount coupons , gift certificates , or cool merch to your customers who can successfully bring people to your car wash. That should motivate them to find referrals for you.

Be Wary of Customer Reviews

Customer reviews have a significant impact on your business. It could either be good or bad. Regardless, you have to keep your eye on them. Customer reviews are your means of knowing the positives and negatives of your car wash. Subsequently, you’ll know what improvements your business needs. Your aim should be to earn positive reviews consistently. Thanks to the internet, reviews could spread like wildfire in the market. So if you can achieve good reviews, that means more people could deem your car wash as a dependable cleaning service business.

You can use survey questionnaires to ask for your customers’ feedback.

How to Create a Car Wash Business Plan

According to a BrandonGaille report, over the past decades, there has been a 69% increase among car owners who depend on car wash facilities for car cleaning. The most probable reason why that’s the case is that people simply don’t have the time to wash their cars themselves. With that in mind, operating a car wash is an excellent business to have today. So without further ado, here’s our quick guide in making a car washing business plan proposal .

 Create a Business Profile

A business profile is an executive summary of everything about your car wash business. It should serve as the introductory section of your business plan. In it, you can talk about what inspired you to open your car wash, and also what you want obtain from it. Of course, you must state its name, possible location, and your name as its owner.

Provide Descriptions of Your Operating Procedure

It’s understood that your services are car washing. But know that each car wash business has its own way of doing things. That said, you should provide details of your possible standard operating procedures or SOP. Show the readers of your business plan what makes your services distinct from other car wash businesses. Well, more or less, you’ll have similar SOPs with your competitors. But at least try to add something that makes yours unique.

Explain Your Marketing Strategies

Marketing is vital in running a car wash business. It’s a practice that enables your business to garner attention in the community and obtain customers subsequently. Without it, your car wash’s potential to generate revenue and profit will be extremely low. So make sure to perform a thorough marketing analysis of your local car wash industry. After that, devise your marketing plan and integrate it into your car wash business plan presentation.

Plan Your Startup Budget

A startup budget is your launching pad to begin the real work in bringing your car wash to life. So plan it well and make it enough to purchase everything you need. For this matter, you have to gather every financial resource or asset at your disposal. In preparing your budget, our advice to you is to have a cost-effective mindset. Try to find the cheapest alternatives for equipment and tools without jeopardizing quality.

How much can I earn in my car wash business?

Car wash business profit is every car wash business owner’s motivation. Of course, you’d want to know how you can earn from your car wash. So here’s our answer to your question: An article by JBS Industries says that a self-service car wash can generate $1,500 of revenue monthly. Whereas, an in-bay automatic car wash can generate $139,000 of revenue annually, which can accumulate an $86,531 annual profit.

What are good ideas to renovate my car wash?

As your car wash business grows, you’re going to want to renovate it. So here are some good ideas for that:

• Add a waiting lounge, with cable TV and WiFi access
• Install vending machines and massage chairs
• Install state-of-the-art car wash equipment and machinery
• Add car repair services
• Transform your car wash into a truck-friendly facility

How can I promote my car wash?

Here some excellent methods to boost the promotion of your car wash business:

• Create social media pages dedicated to your car wash
• Build an official website for your car wash
• Implement a customer loyalty program
• Offer additional car-related services
• Build partnerships with established car brands

Along the way, you’re going to encounter hurdles in managing your car wash. You see, running a business is never a cakewalk. But with a well-structured business plan as your guide, you can accomplish great things with your car wash. For that, you should take advantage of our examples of car wash business plan docs. Go ahead and start conceptualizing your car wash business now!

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