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Plans for future car wash.

DixieCarWash

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I've posted in the past about building a flex serve car wash.

I feel out of place here being one of the only members who doesn't currently own a wash and won't in the near future (less than 10 years)
I'm trying to get as educated as I can so be patient with me. I'm still learning.

Ok, I've worked at 4 car washes since the age of 17. I'm now 22. I've learned a lot but know running a multi-million dollar business isn't easy and I have no current education in business and very little is mathematics and arithmetic.

Due to certain issues resulting in me being on SSI for the past 5 years I haven't begun to save.

I currently work at a Car Spa location and I'm hopefully going to be taken off of SSI soon, go full time and finally get my 401K started.
So my lack of business knowledge has me confused. I want to go flex serve with oil and state inspections and detailing. I also know this is a 5-8 million dollar operation and I am no where near rich. Is the car wash a rich kid's thing and unless I win the lottery I should forget it? Or are there ways for us poor guys to own the dream car wash?

Once I go full time I need to go to college and take business courses and possibly the car wash college.

From my previous experience working at car washes and getting to know many successful business owners I think I have a comprehensive plan for the future wash drawn out in a notebook.

So I'm thinking about having and "L" shaped building.
6-8 bays for lube and state inspection and possibly other services. A 135' tunnel featuring Sonny's Total Shine or similar. 2 conveyorized detail lanes using the "people mover" belts. But on the side of it wash for express exterior packages having free self serve vacuums on the side.

The auto pay stations will be actual booths like in pay parking lots.

If possible team up with a gas station.

Also. With the waiting room on one side and windows on the other I'm thinking of having the support equipment in a basement. I've seen this done before.

Any tips or suggestions?
 

DixieCarWash

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If y'all want I can post a few pictures of my ideas. Or rather take pictures of them.

Designing a wash is one thing. But building and running it is quite another.
 

robert roman

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After consulting folks for over 15 years, I believe the lack of talent and getting a loan are the two most common issues that makes it difficult for start-ups to launch and implement growth plans.

Banks and lenders define talent as several years of carwash management or ownership experience.

Given the carwash industry’s high turnover rate, obtaining management experience is simply a matter of working in the industry to learn the day-to-day activities and fundamentals of production and operations, customer service, maintenance, supervision, marketing, cash management, etc.

“Is the carwash a rich kid's thing and unless I win the lottery I should forget it....are there ways for us poor guys to own the dream car wash?”

Start-up expense to build a flexible service wash on one acre of land is roughly $3.0 million.

30 percent equity injection is a down payment of $1.0 million.

There is nothing to stop you from raising this amount and borrowing $2.0 million from a bank or even raising the total start-up expenses on your own.

Using other people’s money is nothing new. High-tech start-ups do it all the time.

Money raised in this fashion to fund a start-up is called venture capital.

Venture capitalists and angel investors invest in people and excellent market opportunities not business plans, fancy designs or equipment packages.

So, getting the experience first is the key to getting the money.

“….running a multi-million dollar business isn't easy and I have no current education in business and very little is mathematics and arithmetic.”

College education can be very useful but it is not necessary for small business success.

For example, small businesses that do not produce sufficient gross sales usually suffer from missteps taken by management.

So, the education obtained working as carwash manager provides the skills and knowledge needed to mitigate competitive and business operations risks that prevent a business from growing.

Knowing the business first also provides a better environment to learn how to mitigate the real estate development risks and the investment ownership risks.

The reason for following this process is the investors or stakeholders will expect the risk of capital loss to be considerably lower compared to what they are in a traditional project.
 

buda

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Surprised that no one has told you the reality of life...

Yes, this is America the land of opportunity, but there is a reality you must face.

To build a facility that you are describing in 10 years will probably cost you $4 to $5 million dollars. Where are you going to get that kind of money? Banks do not loan money on good intentions, they want to know how are they going to get their money back if you fail. They do not want to be in the car wash business, certainly.

And, banks do not like to loan money to inexperienced, startup entrepeneurs unless they have a co-signer with big bucks.

If I were going to tell you to "pursue your dreams," it would be to latch on to a good car wash operation and work your fanny off for the owner with the the thought that one day, when he wants to retire, he might sell you the business on contract. I have known this to happen numerous times in the business.

By your own admission you need both extensive business experience and money. You can easily obtain the business knowledge at no cost, but the money is another problem, and limited by your imagination on how to get it.

For a few dollars you can go to Amazon.com (books) and purchase Michael Gerber's book, "The E Myth-Revisited" which is a must book for anyone starting a business. A very important read for you.

Regards
Bud Abraham
 

DixieCarWash

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Of course I don't plan to go alone. I want to go into it on a partnership. So far I think I'm off to a great start in the wash industry. Having worked several washes and knowing a lot of guys in the industry. Once I'm off of the leash with SSI I can look for a full time management job and put money into the 401K. One thing I've always learned is it's wise to have twice as much saved up then what's actually needed just to play it safe.

I do have knowledge in customer service, and equipment maintenance. Lots to learn but I feel I can do it.

I am glad I'm planning this in a young age. I began learning and planning when I was 15.
 

DixieCarWash

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So another question for y'all, I want to bring the wash up flex serve but doing some thinking today, I know in the end it will be more expensive but I'm thinking about the option to build the wash express exterior on a larger parcel of land then after several years as an express wash adding detail tunnels, state inspection and lube?

Basically build in modules? I know in the long run this will be more expensive but is it safe financially to go this route?
 

Waxman

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I wouldn't advise a partnership because I had a bad experience with a partner.

Do what Bud A said.
 

washnshine

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Bud A.'s advice is spot on. You will essentially be getting paid to gain experience in your chosen field.

Be selective about the wash you elect to do this at so you increase your chances of being able to purchase it someday. For instance, if it is already a family run business and/or has a strong family presence around the wash, you most likely will not be able to break into that operation as an owner - unless they adopt you. Find a place that will keep you busy and learning and an owner who relies on you.

Also, the experience you gain and the money you earn could more realistically be put towards purchasing an existing smaller wash someday. Your sites are set high on building your own brand new flex model, but your actual chances of being able to purchase an existing exterior or ss w/mini tunnel or iba and making your own changes down the road are probably more realistic for most people. This might be in a smaller town, cheaper market, location that needs work etc. - but it is a way to break in as a proprietor.

I hope you find a way to achieve your goals.
 

DixieCarWash

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The wash I work at is corporate owned. The head of any location is a GM rather than an owner. Little chance of buying it. Things about car washes in my area is many washes in my area were built many years ago when little detail to the flow of traffic.

For example one of the washes I used to work at, the route from the wash to detail lanes goes right through the entrance. On busy days this is a nightmare. However I do like the shape of the building and if I reversed the flow of traffic and swap the entrance and exit of the tunnel then convert the side canopy into an enclosed conveyorized detail bay this would work. I'm good friends with the owner too so I might keep an eye on it.
 

DixieCarWash

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You guys are awesome. Thanks. Been thinking about it and the first car wash I worked at has a similar building design I'm looking for. Only thing is I'll have to reverse the flow of traffic. So in other words where the blowers are would be the prep zone where as the current prep zone would be the drying zone and the tunnel is long enough for Sonny's Total Shine system. I can build a detail center behind the canopy and turn the canopy into a lube and state inspection center.
 
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