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Business Start-up Plan for a Car Wash in UK Report (Assessment)


Introduction: Watching the Birth of the New Business.

Cars have become a part and parcel of the everyday reality, and having a car has been a must for an average employee for quite long. Therefore, the necessity to maintain a decent state of a car is a prior concern for a present-day businessman. Hence, the need to keep the car clean and looking attractively is a necessity, which predetermines the reasonability of creating a car wash – the business that will never run out of its clientele.

To characterize the car wash most precisely, it is necessary to mention that, unlike most of the modern car washes, it is going to comprise the machine, conveyor-belt approach and the help[ of the qualified staff; to be more precise, the technique that is going to be applied in the company can be defined as the exterior-conveyor/full service approach.

Therefore, the mission of the given service is to provide the customers a high-quality and very fast service with little or no queues, at the same time offering reasonable prices. The latter can be achieved by buying cheaper equipment. Hence, the major demands in the car wash market are going to be met in the given car wash service.

Product: Opening New Horizons for the Customers.

When thinking of the image of the car wash in question, one should understand that, with so many costs for the qualified staff and the equipment, even though it is not going to be an expensive and world-known brand, there is going to be little money left for the design of the car wash itself, which is why it is reasonable to go with minimalistic design.

It could be a good idea to introduce a couple of futuristic details into the interior to show that the car wash makes use of the newest technologies, but the general idea will be a simple design with little details.

The services are going to be delivered right in the premises of the car wash company, automatically at first, with the following polishing procedures carried out manually. Thus, the speed of the service is going to be increased, for, while one car is being cleaned manually, the second one can undergo the mechanic cleaning, etc.

It is necessary to keep the premises lit well and be spacious for a better service. As for the suppliers, the D&S equipment will be purchased.

Place: In Search of Where the Innovation Belongs.

Because of the specifics of the business, it will be most logical to place the car wash rather close to the main road in the area boarding a prestigious part of the city and a middle-class district. Thus, the potential middle-class consumers will be able to use the car washing services efficiently and spread the word about the company, thus, attracting a richer clientele.

However, unless the service proves a complete success, placing the company in the middle of a prestigious city part can pose considerable threat. With the obviously qualified rivals around, the car wash may face the threat of a bankruptcy, which is why the idea of placing the car wash in a less rich part of the city can be considered. However, it would also be a good idea to rent the premises in a large market or even a mart, the places that people visit quite often. However, a large number of rivals are expected in the latter case.

Since at present, the car wash company is going to be quite small, there is no use to have the intermediary to sell the services through. It seems that people can run a small car-washing company on their own. Therefore, there are going to be no intermediaries in my car wash company.

Price: The Revenues for a Product Worth a Million.

Since it has been suggested to offer reasonable prices, an average $12 per car is bound to be a proper price. In addition, the equipment is going to be quite expensive, which is why starting the business at $5000 is a sound idea, as the Department of the Treasury (n.d., p. 5-7) explains. In a year, the profit will supposedly make $45,000. To demonstrate the revenues and the losses of the company, the following tables can be used.

Table 1: Profit and Loss: Calculate the Revenues

2013 % 2014 % 2015 %
Revenue 30,000 100 36,000 100 45,000 100
Labor 6,000 20 18,000 50 13,500 30
Materials 33,000 110 28,800 80 58,500 130
Maintenance 12,000 40 16,200 45 22,500 50
Utilities 3,000 10 7,200 20 18,000 40
Total Cost 84,000 280 106,200 295 157,500 350

Table 2: Profit and Loss: The Costs

2013 % 2014 % 2015 %
Management
Salaries
0.00 0.00 0.00 0.00 0.00 0.00
Rent 2000 6,7 2500 8,3 2700 9
Insurance 4500 4500 4500
Taxes 6,000 20 7,200 20 9,000 20
Marketing 1,500 5 1,800 5 2,700 6
Supplies 1,500 5 1,800 5 2,700 6
Total 15,500 36,7 17,800 38,3 13,500 41

Promotion: Arresting the Public’s Attention Effectively.

To promote a car wash business efficiently, a catchy company name and a good slogan that people will be able to remember are a perfect solution. I believe that I will name the company Wash’n’Go, while the company slogan will; be “No Dirt, No Queues, No Faults.”

Speaking of the logo, I would suggest a simple outline of a stylish sparkling clean car pointed up and right, with the name of the company written on the side of the car. Symbolizing constant motion and unceasing progress, such a sign will definitely attract more clients to the Wash’n’Go car wash.

People: Identifying the Target Customers.

Speaking of the target customers who will presumably attend the car wash to have their vehicles washed, it is treasonable to start with the middle-class public. Since the company is going to offer the service rather cheap and make use of quite low-cost materials and equipment, it is quite understood that the initial clientele will consist of the people of middle class, typical employees and their families.

Since the employed have little time at disposal and prefer service with little queues, they will be delighted to have their cars washed fast and efficiently. However, as the word spreads about the car wash, its efficiency and relative cheapness, wealthier people are likely to visit the car wash, which will spur the business considerably. In addition, since the exterior-conveyor car wash makes only 20% of the car wash market (Simeral 2003, p. 1.8), the level of rivalry is going to be relatively low.

Reference

Simeral, C 2003, “Why start a car wash business?,” in Start your own car wash, Entrepreneur Press, Irvine, CA, pp. 1-12.

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IvyPanda. "Business Start-up Plan for a Car Wash in UK." April 24, 2020. https://ivypanda.com/essays/business-start-up-plan-for-a-car-wash-in-uk/.

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IvyPanda. 2020. "Business Start-up Plan for a Car Wash in UK." April 24, 2020. https://ivypanda.com/essays/business-start-up-plan-for-a-car-wash-in-uk/.

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IvyPanda. (2020) 'Business Start-up Plan for a Car Wash in UK'. 24 April.

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