Car Wash Business Plan Template
If you want to start a Car Wash or expand your current Car Wash business, you need a business plan.
The following car wash business plan template gives you the key elements to include in a winning business plan. It will help you if you need a traditional car wash business plan or a mobile wash business plan. That’s because a mobile car wash business plan is very similar to the traditional car wash business plan except for the location. You will simply specify which one you operate in a few sections of your business plan.
Car Wash Business Plan Example
I. Executive Summary
Business Overview
[Company Name] aims to revolutionize and lead the car washing industry in [Location] and deliver the very best for our customers by providing an exceptional experience and an unparalleled service.
[Company Name]’s founder, [Founder’s Name], introduction to the car washing industry started during his college days. He was working full-time in one of the city’s first 24-hour car washing companies. After working for more than 4 years with the company, he learned proper techniques on how to wash cars in the most efficient way and also learned simple mechanic work for car maintenance.
Products Served
The following are the products and services that [Company Name] has to offer:
- Full service hand wash
- Window, dash, and door jamb cleaning
- Undercarriage washing
- Wheels care
- Interior vacuum or deep cleaning
- Express exterior wash
- Maintenance check
- Car detailing
Customer Focus
[Company Name] will primarily serve the residents within a 15-mile radius of our location. The demographics of these customers are as follows:
- 39,900 residents
- Average income of $82,000
- 43% married
- 49% in Mgt./Professional occupations
- 72% of residents are car owners
- Median age: 38 years
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. He has been in the car wash industry since [year] and was one of [Other Company Name]’s top employees. He also has a degree in business management and is a licensed mechanic.
[Company name] will also employ an experienced assistant manager to manage the day-to-day operations. He will be an experienced operations manager who will be trained in other important company operations so that he will be able to take over in absence of [Founder’s Name].
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The majority of our location’s residents and workers own automobiles and can afford regular car wash services.
- The management team has a track record of success in the car washing business.
- The car washing business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $200,000 of debt capital to open its car wash business. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Location design/build: $120,000
- Working capital: $80,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Avg customers/day | 20 | 30 | 40 | 50 | 60 |
 
II. Company Overview
Who is [Company Name]?
[Company Name] a full-service car wash and care facility that aims to revolutionize and lead the car washing industry in [Location]. It is the only carwash business in the area that provides not only washing services, but also maintenance and detailing. As a one-stop carwash business, [Company Name] also retails high-quality car cleaning and maintenance supplies that customers can purchase anytime to do the car cleaning themselves.
[Company Name]’s employees are the best in what they do and are skilled and trained to provide the utmost care to its customers and their vehicles. They are known for their attention to detail and speedy work.
[Company Name]’s History
[Founder’s Name] first got into the car washing industry during his college days. He was working full-time in one of the city’s first 24-hour car washing companies. After working for more than 4 years with the company, he learned the proper techniques on how to wash cars in the most efficient way and also learned simple mechanic work for car maintenance.
He then began to be even more fascinated with machine works and took a vocational course in mechanics after graduating. Shortly after acquiring his accreditation, [Founder’s Name] moved to [Location] and noticed that even though the majority of the residents have their own cars, there seems to be a lack of car wash service providers in the area.
With his background in business administration and his previous experience in the car washing industry, he started his first steps in building his own carwash company, [Company Name].
[Company Name]’s Products/Services
The following are the products and services that [Company Name has to offer]:
- Full service hand wash
- Window, dash, and door jamb cleaning
- Undercarriage washing
- Wheels care
- Interior vacuum or deep cleaning
- Express exterior wash
- Maintenance check
- Car detailing
 
III. Industry Analysis
The Car Wash industry has seen strong growth over the past five years. The drop in oil prices has encouraged more consumers to hit the road, as lower gas prices translated to greater use of cars. The broader economic landscape boded well for industry growth, with not only more vehicles joining the road but also individuals driving personal vehicles more frequently.
The industry saw profit increases from companies diversifying their offerings to build a stronger customer base, implementing value-added services such as interior cleaning, waxing and rim shining, in addition to their more basic packages. Moreover, companies revamped waiting rooms to offer Wi-Fi, TV and coffee lounges to generate repeat customers.
Revenue growth will be bolstered by rising per capita disposable income, which will boost consumers’ propensity to spend on discretionary services, such as car washes. Furthermore, environmental awareness of water usage will boost demand for professional car washing because professional services typically use less than one-third of the water used by residential car washing.
 
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas in an 15-mile radius.
The area we serve is populated mostly by the middle and upper class that lead busy lifestyles; as a result, they have both the need for a carwash service and the means to pay for it.
The precise demographics of the town in which our location resides is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Local Car Owners: The area in which the company will operate has a significant population of car owners. Most of them need an efficient way to keep their cars clean and well-maintained. Our carwash services can cater to their needs and their schedules.
- Businesses: Since [Company Name] is located near businesses with company cars and delivery cars, the company aims to be their go-to car wash shop.
 
V. Competitive Analysis
Direct & Indirect Competitors
Salt Lake Detailing
Established in 2012, Salt Lake Detailing is an automotive studio that specializes in paint refinement, finishing treatments, detail services and paint protection film. The company is a state and international award-winning auto detailer.
Services include:
-Complete Detail: includes a foam bath pre-soak; hand wash with a premium microfiber wash mitt using the two-bucket method; wheel face, barrel, wheel well, exhaust tip and door jamb cleaning; hand dry; tire dressing; sealant application; interior floor and headliner vacuum and steam clean; hand scrubbing and disinfecting of dashboard, vents, instrument clusters, cup holders and consoles; and streak-free cleaning of windows, screens and mirrors
-Exterior Detail: hand wash and detail of wheel faces, barrels, wheel wells, exhaust tips and door jambs; hand dry; sealant application to all exterior paint, glass and wheels; windows and mirrors left with a streak free shine
Gas & Glow
Founded in 1972, Gas & Glow is a chain of gas station convenience stores with fast food. It offers a car wash club, where members may pay a monthly fee and receive unlimited car washes at any Gas & Glow location.
Car Wash Club options:
-Classic: includes all base wash features
-Super: includes classic wash plus rain shield, tire cleaner, and bug buster
-Premium: includes high-end wash plus Color Wave Super Wax
It is unclear whether use of the car wash requires a membership, or if single washes are available.
Neptune Auto Spa
Neptune Auto Spa is a full service car wash and detail center. Neptune strives to provide excellence in customers service, and trains each team member to thoroughly clean and dry each vehicle that comes through. Further, Triton takes environmental stewardship seriously, using a decontamination and filtering process to ensure soap and chemicals do not enter the water system.
Neptune offers a wide variety of treatment options, from one-time treatments to club memberships and fleet services.
Options:
-Full Service Treatment Packages: vacuum, inside windows, dashboard, cup holders, wash and hand dry
-Deluxe Service Treatment Packages: Full Service PLUS under carriage flush, wax and rust inhibitor
-Ultimate Service Treatment Packages: Deluxe Service PLUS 30-day wax and scent option
-Neptune Club: includes unlimited washes; priority services; special spa treatment (wash, inside windows, dashboard, cup holders, hand dry, interior vacuum – includes cargo bay in SUV’s, floor mats, scent option, under carriage flush, 30-day wax and treat tires; and management inspection
-Detail Services
-Specialty Services: Boat Interior and Exterior, Motorcycles
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their questions.
- Clean and Detail Oriented: The company’s staff are well-trained, clean, and detail oriented. They work hard to satisfy their customer’s needs.
- Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
 
VI. Marketing Plan
The [Company Name] Brand
The [Company name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Client-focused car wash services, that treat each client individually and get the job done right the first time
- Well-trained staff that prioritizes customer satisfaction
- Service built on long-term relationships
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 15-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or sporting events.
Commuter Advertising
We will drive attention to [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for people to avail our services.
 
VII. Operations Plan
Functional Roles
[Company name] will be open Monday-Saturday. To support the operation, the Company intends to employ [X] working staff and [A] cashiers/customer attendants. [Company name] anticipates having [Z] customers on a weekly basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
- Maintenance personnel
- Car cleaning and maintenance staff
- Customer service/cash register functions
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Hiring and training staff
Milestones
[Company Name]’s long term goal is to revolutionize the car wash industry and become the best in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.
The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
 
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. He has been in the car wash industry since [year] and was one of [Other Company Name]’s top employees. He also has a degree in business management and is a licensed mechanic.
[Company name] will also employ an experienced assistant manager to help manage the day-to-day operations. He will be an experienced operations manager who will be trained in other important company operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].
Hiring Plan
In order to launch the business, we will hire the following employees:
- Sales and customer service: 2 full-time employees to manage the day to day sales and customer service
- Car care and maintenance staff: 4 full-time employees and 3 part time employees who are willing to learn and are detail oriented.
- Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.
 
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the car wash services.
The major costs of [Company Name] include:
- Salaries
- Lease on business location
- Equipment maintenance and supplies
Moreover, ongoing marketing expenditures are also notable cost mechanics for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $200,000 of debt capital to open its auto repair business. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Location design/build: $120,000
- Working capital: $80,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| Year 1 | 15 |
| Year 2 | 20 |
| Year 3 | 25 |
| Year 4 | 30 |
| Year 5 | 35 |
| Average transaction | $35 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
To help you get started, you can also get our car wash business plan pdf here.
