Own business: how to open a car wash
1. PROJECT SUMMARY
The purpose of this project is to open an on-site car wash, which involves the use of a dry cleaning method. The project is located in a city of 1 million people.
The target audience are car owners with an average and above-average level of income, who lack free time and value the environmentally friendly production.
The main advantages of this business concept are: high profitability, relatively low threshold for entry into the industry, quick payback of the project, low level of competition in the segment of mobile and “dry” car washes, mobility and convenience. Difficulties that an entrepreneur may face in this segment: seasonality of sales, dependence of sales level on the income level of the population, conservatism of consumers, which manifests itself in the fear of car owners to use new technologies in car service.
The volume of initial investment is 302,800 rubles. Investment costs are directed to the purchase of raw materials, materials and equipment, as well as the formation of a working capital fund prior to the project’s return on payback. The main part of the required investments falls on the purchase of raw materials, materials and equipment, whose share is 44%. To implement the project will use its own funds.
Financial calculations take into account all the income and expenses of the project, the planning horizon is 3 years. It is assumed that in the future will require business expansion. Return on sales in the first year of operation will be 22%.
2. DESCRIPTION OF INDUSTRY AND COMPANY
The average car owner in Russia annually spends about 10 thousand rubles for the repair and maintenance of his car, of which about 30-40% is paid for car wash services. With the increase in the car park in the country, the demand for car-care center services is also growing. According to the traffic police, over the past 10 years, the fleet of Russians has increased by 65%, and the annual increase in the number of cars is 1.5 million units.
The total number of car washes in Russia is more than 12,000, but this is not enough to meet the demand for cleaning services. The need for car washes increases by 110 units annually. In this regard, the car wash business over the past years is quite popular and profitable. Carwash is a dynamically growing segment of the auto service market, which makes it possible to speak about the attractiveness of this type of business.
According to a poll conducted by the analytical agency AUTOSTAT, more than half of Russian car owners use car wash services. On average, each owner of a car visits a specialized service salon 1 time in 20 days.
The development of the market and increased competition have led to the emergence of new forms and types of car wash services. Today, the share of manual car washes in the Russian market is about 70%, the remaining 30% are self-service carwash, tunnel and portal automatic car washes. A new direction in the car wash business is mobile and dry car washes, which compare favorably with other types of car washes.
The tendency to reduce free time among residents of large cities in Russia leads to the fact that not every car owner has the opportunity to regularly wash a car at stationary car washes. For many, the most convenient option would be an on-site car wash service that allows you to wash the car on the spot. This concept of car wash is convenient for both car owners, saving time, and entrepreneurs, as a mobile car wash requires a minimum of costs.
Exit washing can be carried out wet and dry. It should be noted that the organization of a wet wash is associated with one difficulty – the provision of such services in public places is prohibited by law. Therefore, this project involves the organization of a field service, involving a dry cleaning. A dry way to wash a car is to use products containing wax without using water. The composition of the means is such that the machine provides protection against corrosion. And the wax protects the paintwork.
Currently, many car owners are not yet familiar with the on-site washing service and are suspicious of the dry method, mistakenly believing it to be harmful and damaging the car’s surface. Therefore, the main difficulty in the implementation of the project is the need to promote a new type of service in the carwash market.