There are many profitable and less-competitive businesses in Nigeria; they just don't look like they…
It seems like only yesterday that I went to see my uncle at his car wash business in the neighborhood of Basorun in Ibadan. It was a valuable experience that I carry with me, and it was fascinating to see how dirty cars could be cleaned up so thoroughly.
All of the employees were focused on washing and rinsing cars at all times. Even though I was still a child at the time, I could already see how lucrative the car wash business could be.
The business of washing cars has been around for quite some time, and as long as people continue to use automobiles, it is not likely to disappear any time soon. It does not require a lot of introduction because I am certain that you have seen at least one or two car wash centers in the past; however, you may not know how those car washes came into being.
In this piece, we will show you how to start a successful car wash business, whether it is on a large or a little size, and we will cover all you need to know to get started. But before we get into the processes, I want you to make a note of the following things that are important.
The required amount of capital may vary depending on the size of your company; however, for businesses on a smaller scale, this amount will be in the region of 20,000 to 50,000 dollars (assuming that land is accessible). You won’t need to invest in any heavy equipment; all you’ll need is some soap, a brush, a source of water, a bucket, and the like.
Depending on where you are located, you will require between #300,000 and #500,000 in order to operate a large-scale car wash. When compared to a location at which you will be required to purchase water, the amount of capital required for a location that already has an on-site source of water, such as a well or borehole, will be lower.
Even though many people believe that washing cars is a straightforward process, isn’t that what car washes are? I have frequently overheard people saying “you can wash your car at home” but it won’t come close to looking as good as one washed by a professional. Do you know why? due to the fact that there is a method that they follow.
Before I go any farther, let me first explain this to you.
Your responsibilities in the car wash industry can be broken down into three categories:
washing cars in the open air
internal cleaning of automobiles
Cleaning the engine
Cleaning of tires
Although some customers may request a combination of two or three products, others may only want one, thus it is important that you are aware of how to price each individual product.
The prices that are assigned to each will vary depending on where in Ibadan you are, and they are as follows:
Outside automobile – #1,000
Inside automobile – # 1,500
Engine – # 1,500
Tyre – #700
Now that we are back, please follow the instructions below to clean the exterior of your automobile.
First, give the area a good rinsing with water, and then you may begin washing.
Make sure that you wash carefully so that you don’t scratch your customer’s vehicle.
You will use a rinse towel to clean the inside of the vehicle here.
Make sure to use the towel with care.
If you are not beginning a vehicle wash business on a huge scale, you should avoid getting into boat washing because it requires specialized equipment and a high level of experience.
To clean a bunnet, first cover all of the openings with nylon, and then spray it with water when it has been thoroughly covered.
Wash carefully to prevent the item from breaking.
In order to launch a successful car wash enterprise, you will require the following initial investments.
The vehicle washing machine
Your task will become much simpler as a result, and you will have the opportunity to get additional jobs, such as engine car wash and bunnet.
Car vacuum cleaner
The hose and pipe system
The origin of water (borehole, well, river )
Workplace and administrative space.
The business of car washing is lucrative. You should be able to wash not less than ten automobiles every day if you find a good location for your car wash business. Suppose you bought 10 cars at #1,500 each, which would bring your daily total to #15,000, and your monthly total to #450,000.
Depending on how well you negotiate, your workers will want to collect their money on a daily basis. Although this is the standard practice in the industry, they may be willing to accept payment on a monthly basis if you are able to negotiate more effectively.
You give your workers a monthly wage of 25,000 naira
Two employees will split the monthly wage of 50,000 naira
# 400,000 per month is equal to revenue minus costs.
It is a good idea to conduct a feasibility study before starting a new business. This allows one to determine whether or not the business would be profitable in the location that is being considered.
You should talk to at least two or three people in the neighborhood where you plan to open your business and find out how they’ve been washing their cars all this time.
Include this question in your analysis of the possible outcomes.
Where can one get a water supply that is acceptable for that area?
What about the work force?
What is the state of competition?
What kind of economic potential does the population have?
Prepare a business plan
Write it down in a clear and concise manner so that if bankers and investors pick it up, they will understand what your business is all about. What do you see your business becoming in the next five years and how do you get there?
Register your business
It is imperative that you register your company with the CAC in order to avoid any confrontation with the authority (Corporate Affairs Commission). Additionally, there are other benefits that may be available to you if you register, such as a SME award.
Even though you can do everything on your own, it would be helpful to have some assistance. When you are hiring employees, you should make every effort to find people who will be paid a salary every month. This will be to your advantage because they will not be able to quit at any time, which is not something that typically happens with car wash workers.
You don’t want to hire novices at the beginning of your business because it will be like a blind leading another blind. Instead, hire skilled workers who have been in the industry for years. If you hire novices, it will be like a blind leading another blind.
If you have done a good job with your feasibility study, it will show at this stage because you will have known your target customer and have their buyer persona on hand. In addition to this, you will be aware of the advertising medium that will be most effective in converting them into customers.
The following are the several channels to communicate with your customer:
Flyers should be distributed.
Social media ad
Have a webpage for making reservations (contact us for that)
Boost the amount of money you make.
Make a bar and pepper soup joint next to your car wash so that your customers can wait comfortably inside the bar while their cars are being washed.
This will allow you to maximize your profits from the car wash. It is just simple sense that everyone will like to go to a place that is vibrant, therefore not only will it assist you to raise your profit, but it will also help you to keep customers.
Your choice of location for your car wash will have a significant impact on the success of your company. If you choose to locate your business in an area with a low volume of foot traffic, you may have trouble making sales. When you are looking for a location, be patient, don’t get in a hurry, and thoroughly examine the place you choose.
It is also important to choose a site that is safe because you do not want a thief to take a customer’s automobile while it is parked there during rush hour.
Because Nigerians are notoriously imitative, you can be sure that if they see you succeed in a business, they would quickly open one extremely similar to yours in the immediate vicinity.
To distinguish yourself from the competition, ensure that you provide excellent service to your customers. Car owners are typically very loyal, and once they have determined that you provide excellent service, they will not want to take the risk of taking their vehicle to a different car wash, which could potentially cause damage to their vehicle.
I’m sure the word “location” is emphasized the most from the beginning to the end of this post; therefore, you should make sure you have a decent location and follow all of the other stage
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