Sell or double-down?

[CaptnBuck]

As some of you know, I've struggled since I purchased my car wash in April of last year. Most of it is due to my inexperience and underestimating the work involved (not to mention the inflated numbers the previous owners provided). I have yet to make a profit, but have come closer and closer. My best month was April with $2,259.25 in revenue. That barely covered expenses. So a few months ago I listed it for sale. And there has been little to no interest. Also, because of the way I acquired my car wash, I have to refinance it by the end of October and I'm struggling to make that happen.

There has been growth over last year's revenue which peaked at $758.75 in July of last year before I installed credit card readers in December. And I think there is room for more improvement with some relatively minor upgrades and improvements. But I don't have the funds to make those improvements and have trouble justifying them when I'm struggling month to month. It also doesn't help that my motivation fluctuates dramatically and tends to be low most days. But I've been plugging along with systems in place to keep it up and running while maintaining a level of customer satisfaction.

But the balloon payment deadline is fast approaching. Do I continue trying to sell it, which will likely mean finding a new/better realtor and taking a loss? Or pursue refinancing through an sba loan or some other resource? I know the answer to this question isn't black and white, but any input would be appreciated.

**I'll be making a separate post shortly asking for financing options and will go into more depth about what I need**

Thanks!
Patrick

 

[HeyVern]

The question is do you believe it will become profitable? If you don't believe that it will be worth it in the long run, you're going to lack the motivation to put in the work that it will take. You know the location and how far it has come, only you can make the determination to continue or not based on your experience so far. If you're at $2,000.00 per month now how much improvement do you need to see profit?

 

[CaptnBuck]

The question is do you believe it will become profitable? If you don't believe that it will be worth it in the long run, you're going to lack the motivation to put in the work that it will take. You know the location and how far it has come, only you can make the determination to continue or not based on your experience so far. If you're at $2,000.00 per month now how much improvement do you need to see profit?

$2500-$3000 a month would make it sustainable which would help motivate me. But you're right that if I'm already burnt out on it, that may not be enough. It's definitely been a major headache and been a strain on my family life (I don't have a social life to worry about ). So it may not be worth it in the long run regardless of how quickly it can becomes profitable.

Another important factor is that I'm not business minded. I'd hoped it would all fall into place as I learned more. But it has not. I am improving for sure and am documenting revenue meticulously, but I'm kinda winging it with just about everything else. It's ironic that that's one of the reasons I decided to list it for sale, but kept having to provide more and more business information for the few potential buyers that inquired with the realtor. So that's been frustrating.

 

[chaz]

Where in SC you located. How many bays and vacs? I’m assuming no automatic…is there room to add. What are your prices and times

 

[Roz]

Really depends on the numbers.
What you paid.

What you owe and to whom.

What is your financial risk, is the loan secured by anything besides the wash.

Sometimes it make more sense to not throw good money after a bad decision. Hard lesson that may cost you some money but from the lintel you shared it sounds like carwashing and perhaps self employment is not your best career choice.

Will selling reduce the loss. Sounds like you should either sell or default on the loan. Not something I would say to most people but based on the above info.

Lastly you need to evaluate the location as the numbers suggest a very poor location.

Good luck.

 

[water guy]

May have to get off your ass

 

[Blanco]

May have to get off your ass

I think someone should put a lock on your phone or computer so you cant use it after 5pm. Always commenting the most stupid and ignorant shit with no accountability. The guy is having a hard time. Leave him alone.

 

[Blanco]

$2500-$3000 a month would make it sustainable which would help motivate me. But you're right that if I'm already burnt out on it, that may not be enough. It's definitely been a major headache and been a strain on my family life (I don't have a social life to worry about ). So it may not be worth it in the long run regardless of how quickly it can becomes profitable.

Another important factor is that I'm not business minded. I'd hoped it would all fall into place as I learned more. But it has not. I am improving for sure and am documenting revenue meticulously, but I'm kinda winging it with just about everything else. It's ironic that that's one of the reasons I decided to list it for sale, but kept having to provide more and more business information for the few potential buyers that inquired with the realtor. So that's been frustrating.

TBH 3k a month gross is nothing. It's a bad location. It's certainly not something to stress about and try to keep moving in this industry. IMO if you dont enjoy it which it does not seem like you do get rid of it and move on. I started from nothing with closed down washes but I enjoyed every second of it and believed in the potential. A job is only a job when you dont enjoy it. I will say the previous owner can be held accountable for the numbers they gave you. If I was in your shoes I would hire an attorney. There is usually a representations and warranties clause that the seller signs off on the sale in the purchase agreement which makes them liable for the financials provided. This seller knew what they were doing. They knew you wouldn't be able to pay it back.