Do you want to start carwash business?

Are you thinking about opening a car wash business? Well, in today’s world where people regularly require car wash services to show off their valuable vehicles, we guarantee that your business can never be in ruins provided that you market it successfully.

Every marketing strategy is based on a well-structured plan or to be more precise, a well-structured business plan. So before you start a carwash business, you have to prepare a comprehensive business plan covering even the slightest details about your business.

If you are wondering how to write an effective business plan about your car wash company then here is a sample business plan for you, written for an upcoming carwash company in Manhattan, Rosneik Carwash Company.

Executive Summary

2.1 The Business

Rosneik Carwash Company will be located at a 10-minute drive from 42nd street in Manhattan, the most densely populated borough of the New York City. This region is famous for its entertainment and commercial activities and is also home to some of New York’s landmarks such as Grand Central Terminal, Chrysler Building, Port Authority Bus Terminal, and Times Square. We are strategically located in the central business district of Manhattan amidst various business and commercial centers to serve not only the local community but also the visitors and travelers.

Rosneik Carwash Company will be run by Jack Rosneik of the Rosneik family. Rosneik family has been serving the automobile industry as a leading automotive parts manufacturer since last four decades and the family has now decided to start their own brand in car washing services. Being a leading automotive parts manufacturer of the US, Rosneik group knows every detail about how to open a carwash company and have every means to start a successful carwash business. According to Jack, the company’s entrance in this field is not just about starting a car wash business, it’s about giving something to the community.

The Rosneik group selected Jack to operate and manage their new venture because being an experienced and expert person in this field Jack knew every inch about how to start a carwash business.

2.2 Management

Rosneik Carwash Company is equipped with high-class latest technologies to give a brand new look to your cars after they have been washed. We have 8 vacuum stations, 5 high-pressure self-service bays, a 75 foot fully automatic tunnel, and modern fragrance and shampoo dispensing machines. We will provide three main services to our esteemed customers which are external car washing, internal car cleaning, and detailing. We will offer several car wash packages to our esteemed customers varying from $10 to $30 per wash, depending on their type and need. Along with these basic services, we will also provide additional maintenance services and sell high-quality car care products, car accessories, and decorations. We will make a small showroom of car related products alongside our main wash center to facilitate customers in buying important accessories for their vehicles.

2.3 Customers

We plan to serve all sorts of customers, individual car owners to automobile dealers, located in the neighborhood of our service center. We will also serve tourists and travelers, along with the huge residential community of the central part of Manhattan. That is why we have arranged for all necessary facilities, tools, and equipment needed to achieve our goal and make us the number one car wash company in New York.

2.4 Target of the Company

Jack’s target is to become the best car washing service in New York and revolutionize this industry by providing a high-quality, fully automated service. Jack has forecasted a 25% market share and calculated the gross and net profit margin over the course of three years. According to him, the business will generate a high gross margin and a low net margin after the first year but by the third year, the business will have developed a good net profit. The highlights of his three-year forecast are summarized in the following graph.

Company Summary

3.1 Company Owner

Rosneik Carwash Company will be owned and operated by Jack Rosneik, who has been serving automobile industry throughout his professional life and has grown up in a family related to automobile industry. Jack did MBA from Harvard University and has been involved in his family’s automobile parts manufacturing industry after completing his studies. He has worked his way through the organization for more than fifteen years and had been serving as the Chief Operating Officer for the last five years. Under his leadership, the company expanded tremendously and grew to become one of the leading companies in the US.

3.2 Why the Business is being started

Jack aims of building a car wash business totally relying on latest technologies hence completely uprooting the traditional car washing systems. He had been working on the idea of starting a car cleaning business for quite a time until this year, when the Rosneik group finally decided to open car wash facility as a part of their expanding program.

3.3 How the Business will be started

The start-up cost for Rosneik Carwash Company will be born partly by Jack Rosneik from his earnings and shares in the family’s automobile business, and partly by Rosneik Group. The selected site on the 8th avenue of Manhattan will be leased for minimum 3 years in December 2017, with an option of increasing the lease duration for another 3 years after the initial period.

Although Jack has been dealing in the automobile business for more than 15 years yet he has not much experience in the car wash business which has different demands as compared to his previous business. That is why Jack has built a professional team which will not only guide him through all stages but also helps him to set up an efficient system that will ensure high-quality service even during the peak hours. Jack has hired graphic designers to develop company’s logos, brochures, and flyers; marketers to market their new brand on various platforms; lawyers to get help in the lease and all legal activities; contractor to procure various equipment and facilities needed for the service. The selected site was formerly used as an automobile repair facility so a lot of work is needed to incorporate all necessary systems for hosting carwash and detailing facilities.

The location’s rent has been decided to be $1,800 per month after negotiations. In addition to rent, the amount of insurance covering the business is approximated to be $300 per month which will be paid each month by direct debit. The equipment, bought by initial investment, includes a cash register, three computer terminals, four high-power water pumps, and four industrial vacuum cleaners and will depreciate over next three years.

Jack has forecasted following costs for expenses, assets, investment, and loans for the Start-up.

Car wash business plan 1

The detailed start-up requirements, total start-up expenses, total assets, start-up funding, total funding required, total assets, total liabilities, total planned investment, total capital, total capital, and liabilities, as forecasted by company’s analysts, is given below:

Start-up Expenses 
Stationery etc.$500
Research and Development$300
Expensed Equipment$5,100
Building Materials$2,200
Building Labor$1,600
Start-up Assets
Cash Required$9,500
Start-up Inventory$450
Other Current Assets$1,800
Long-term Assets$14,000
Total Requirements$39,600
Start-up Expenses to Fund$25,750
Start-up Assets to Fund$39,600
Non-cash Assets from Start-up$9,500
Cash Requirements from Start-up$0
Additional Cash Raised$9,500
Cash Balance on Starting Date$25,750
Liabilities and Capital
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment
Investor 1$25,000
Investor 2$14,600
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$13,850
Total Funding$39,600

Services for customers

Rosneik Carwash Company is a fully automated car cleaning company, equipped with the latest technology, offering a wide range of services including a car wash and other related services. We will provide high-quality service, both in regards to the customer service and the actual washing process, giving our customers the very reason to come back once they have used our services. We will also allocate a unit for a manual wash in case of customer demand. Our main services will include

  • Exterior car washing
  • Interior car cleaning
  • Waxing and detailing services
  • Vehicle care products
  • Vehicle decorations
  • Vehicle accessories

Marketing Analysis of car wash business

Rosneik Carwash Company will be located in the commercial center of Manhattan, New York. The strategic location of the service center near 42nd street has several benefits for the company in terms of marketing and sales. This area is not only used by high profile people as a commercial and business center for their business activities but also as a great entertainment spot with a variety of cinemas and theatres.

Nearly all of the people associated with this area have their own vehicles either new or leased, not to talk of the well-off residential community residing nearby who take a great pride in their luxurious and valuable cars. Nearly half of the people living near the selected site for service center earn more than $90,000 annually while the visitors and travelers associated with this region are also wealthy, most of the time. Another advantage is the presence of six car dealerships within four miles of the selected location who regularly require car washing services.

5.1 Marketing Segmentation

Our car wash business plan is specially made with a view to facilitating all types of car owners; whether they are private owners or large-scale car dealers, our car wash business model is made for everyone. The washing and detailing requirements vary for different types of car ownership that’s why we have created several carwash plans for every type of car owner. Rosneik Carwash Company is mainly an automated service but a unit will be allocated to serve the needs of those customers who prefer manual hand wash as compared to mechanically automated wash. Our business plan for a car wash will target following types of customers.

Car wash business plan 2

5.1.1 New car owners:

New car owners are very conscious about their cars hence they prefer hand car washing services on a regular basis. These customers are generally proud of their zero meter cars and they want their vehicles to look good in front of others. Our aim with new car owners is to make their cars look new again, and thus build a long lasting relationships with them on the basis of trust.

5.1.2 Sports car owners:

Many people, often young and middle-aged men, in the neighborhood of our service center, own expensive sports cars. These people will need our services to maintain the exquisite looks of their expensive vehicles at least once a week. These cars require a special focus on detailing as compared to other types of cars.

5.1.3 Luxury car owners:

Luxury car owners have totally different requirements to maintain their high-end expensive cars and keep them in the best possible shape. A majority of people in Manhattan possess either new or second-hand luxury cars and thus bring their cars for regular washes. These customers prefer quality to cost that’s why we offer special premium packages for these customers.

5.1.4 Lifetime owners:

These customers have owned their vehicles for a long time, more or less like six to seven years, either due to attachment with their vehicles or due to their limited resources. In most of the cases, these customers do not require detailing services and just want their cars to look presentable and clean. These customers occasionally bring their cars for a wash, only when it is dirty that’s why we offer our basic package for them.

5.1.5 Local businesses:

Our service center will be located in the commercial hub of Manhattan surrounded by several companies and local businesses, most of which have fleets of small vans and cars. These companies require their vehicles to be clean in order to maintain their image and hence require cost-effective and efficient car wash service on a regular basis.

5.1.6 Dealerships:

There are six car dealerships within four miles of the selected location of our service center who will regularly require our car washing services. These car dealers require detailed cleaning service for their new as well as used cars to be put up a display before they are sold to customers.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential CustomersGrowthCAGR
New Car Owners12%7,2348,4329,4569,98510,54610.00%
Older Luxury Car Owners17%12,53313,34314,53315,34316,52413.43%
Sports Car Owners14%6,3237,4328,3359,32210,87215.32%
Lifetime Owners11%17,34218,24320,42223,48225,22115.00%
New and Used Car Dealerships8%1011121410.00%

5.2 Packages Pricing

Rosneik Carwash Company will offer three packages for the above-mentioned customers, a basic wash package for $10, a standard wash package for $20, and a premium wash package for $30. Our target customers are generally wealthy thus they will not mind spending some bucks each week to have a quality car wash. Still, we have made a basic plan for price-conscious customers who are choosing the service only because they do not want to clean their vehicles themselves. We have also made special packages for businesses and companies giving them 25% discount on using our services for a large number of vehicles.

5.3 Business Target of the Company

Starting a carwash business plan is not difficult since everyone knows how to start a carwash business plan but to accurately forecast and analyze its every aspect is the really challenging part. After analyzing the customer demand, we concluded that the flow will be more in summer as compared to winter, and more in weekdays as compared to weekends. The flow was analyzed to specify the business target of our company and to deal with all customers even during the busiest hours.

Business owners and most of the community (new car owners) are very busy people; hence they will come at their own preferred hours for a short time.

Retired people and some residents (luxury car owners) will need a lot of time for detailed cleaning; hence they will make frequent visits during the week despite their work schedules.

Local businesses and companies will need their fleet vehicles to be washed during the week during standard business hours.

Dealerships will also need detailed cleaning services and hence they will visit at any time of the day for a longer duration.


6.1 Competitors

The biggest advantage of Rosneik Carwash Company over the competitors is its experience in the automobile industry and its connections throughout the New York City. The group decided Jack to lead this venture who is also the biggest shareholder in Rosneik Carwash Company due to his proven track record of successes in past fifteen years. Jack has declared to implement a unique sales and marketing strategy based on gaining ultimate customer trust.

Jack said that this venture is not aimed to start a car washing business rather it is aimed to give something to the community in the form of high-quality yet affordable service. Jack has created a fully automated steam car wash business plan and has emphasized on building a system that will be fast, efficient and economical as well as assuring the quality to be maximum.

6.2 Sales Strategy

Our sales strategy is set on a 1-1 basis where we will value each and every customer providing them an unparalleled customer care. All esteemed customers and their valuable vehicles will be dealt with utmost respect and care. We have made three packages to facilitate all kinds of customers and will offer various discounts on special occasions to attract new customers.

6.3 Sales Forecast

Carwash facilities are used by a bulk of the population in summer as compared to winter, and the usage also varies from month to month. Although sales in the carwash business vary greatly depending on the season we aim to target specific groups like business owners and car dealers which will need our services around the year. By analyzing our market segmentation strategy, our experts have forecasted the following sales which are summarized in the column chart.

Car wash business plan 3

The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Sales Forecast
Unit Sales
Full Wash3,8165,0446,272
Exterior Wash3,2803,7954,310
Interior Clean12321,4631694
End User Detail457521585
Business Fleet Washes831839847
Car Dealership Details129017382186
TOTAL UNIT SALES10,90613,40015,894
Unit PricesYear 1Year 2Year 3
Full Wash$17.00$18.00$19.00
Exterior Wash$12.00$14.00$16.00
Interior Clean$10.00$11.00$12.00
End User Detail$160.00$175.00$190.00
Business Fleet Washes$8.00$6.00$4.00
Car Dealership Details$95.00$105.00$115.00
Full Wash$39,240$45,160$51,080
Exterior Wash$34,250$41,650$49,050
Interior Clean$11,458$13,607$15,756
End User Detail$30,510$36,035$41,560
Business Fleet Washes$9,220$10,215$11,210
Car Dealership Details$63,750$77,350$90,950
Direct Unit CostsYear 1Year 2Year 3
Full Wash$1.00$1.10$1.20
Exterior Wash$0.55$0.60$0.65
Interior Clean$0.45$0.50$0.55
End User Detail$4.50$5.00$5.50
Business Fleet Washes$0.85$0.90$0.95
Car Dealership Details$4.50$5.00$5.50
Direct Cost of Sales
Full Wash$3,524$4,371$5,218
Exterior Wash$2,265$2,798$3,331
Interior Clean$692$863$1,034
End User Detail$1,640$2,122$2,604
Business Fleet Washes$1,522$1,937$2,352
Car Dealership Details$5,457$7,062$8,667
Subtotal Direct Cost of Sales$15,100$19,153$23,206

6.4 Milestones

The following chart presents the important milestones in the planning of various activities of Rosneik Carwash Company and implementing them.

Car wash business plan 4

The following table presents the important milestones in the planning of various activities of Rosneik Carwash Company and implementing them.

MilestoneStart DateEnd DateBudgetManagerDepartment
Complete Business Plan2/1/20185/1/2018$0ABCDepartment
Sign Rental Contract3/20/20183/20/2018$575MarkOwner
Convert Premises4/1/20184/30/2018$0ContractorsContractors
Hire Car Wash Staff4/20/20184/20/2018$300MarkOwner
Hire Admin Staff4/20/20184/20/2018$300MarkOwner
Open for Business5/1/20185/1/2018$0StaffStaff
Distribute Flyers4/28/20185/5/2018$100FriendsFriends
Press Release4/29/20184/29/2018$405MarkOwner
Follow-up on Press Release4/30/20184/30/2018$0MarkOwner

Personnel plan

Jack Rosneik is the biggest shareholder and Chief Operating Officer of Rosneik Carwash Company. Jack will be unofficially helped by his father James Rosneik, the owner of Rosneik Automobile Group having 40 years of experience as an industrialist and entrepreneur, for advisory purposes. The company’s finance will be managed by his friend Tony Anderson, who has more than 10 years of experience of financial management in various small to medium-sized businesses.

Jack will initially start a <strong>small car wash business<strong> with only one service center in Manhattan but he aims to expand his business and become the best car wash business in New York in the next five years. Although the company will start a fully automated service technicians will also be employed for manual hand wash services if demanded by customers. Initially, the Rosneik Carwash Company will hire two car wash specialists for manual washing service, two technicians to operate all equipment and machines and one administrative assistant to act as a receptionist and to help Jack in office work.

Since the demand for car washing service varies each month so part-time workers will be hired to facilitate the customers even in the busy summer months. To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

The following table shows the forecasted data about employees and their salaries for next three years.

Personnel Plan
Car Washers$43,312$51,174$59,036
Total Payroll$142,712$180,574$225,436

Financial Plan

Jack has developed the following financial plan with the help of Tony Anderson, which outlines the financial development of Rosneik Carwash Company over the next three years. The company will be financed by Jack Rosneik himself, and the Rosneik Group that’s why it is expected to grow rapidly with each year. As the major shareholder of the company, Jack has devised the complete carwash business plan and he will also control the direction of business to make sure that it is expanding at the forecasted rate.

Jack hopes to open at least three more service locations throughout the New York City by the third year and aims to become the best car washing service of the New York City by the fifth year. Due to the support of Rosneik Group, there is no financial problem and hence no equity funding or outside loan will be required unless the company expands faster than forecasted.

8.1 Important Assumptions

The Rosneik Carwash Company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

General Assumptions
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate25.42%25.76%26.12%

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

Break-even Analysis

The following table shows the company’s Brake-even Analysis.

Brake-Even Analysis
Monthly Units Break-even553
Monthly Revenue Break-even$12,974
Average Per-Unit Revenue$23.87
Average Per-Unit Variable Cost$0.87
Estimated Monthly Fixed Cost$11,641

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

Car wash business plan 5

8.3.2 Profit Yearly

Car wash business plan 6

8.3.3 Gross Margin Monthly

Car wash business plan 7

8.3.4 Gross Margin Yearly

Car wash business plan 8

The following table shows detailed information about profit and loss, and total cost of sales.

Pro Forma Profit And Loss
Direct Cost of Sales$15,100$19,153$23,206
TOTAL COST OF SALES$15,100 $19,153 $23,206
Gross Margin$293,969$366,781$439,593
Gross Margin %94.98%94.72%94.46%
Sales, Marketing and Other Expenses$1,850$2,000$2,150
Leased Equipment$0$0$0
Payroll Taxes$34,510$40,726$46,942
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%39.32%48.64%

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Car wash business plan 9

8.5 Projected Balance Sheet

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales$244,958$296,980$349,002
Cash from Receivables$41,863$51,549$61,236
SUBTOTAL CASH FROM OPERATIONS$286,819 $348,527 $410,235
Additional Cash Received
Sales Tax, VAT, HST/GST Received$0$0$0
New Current Borrowing$0$0$0
New Other Liabilities (interest-free)$0$0$0
New Long-term Liabilities$0$0$0
Sales of Other Current Assets$0$0$0
Sales of Long-term Assets$0$0$0
New Investment Received$0$0$0
SUBTOTAL CASH RECEIVED$286,819 $348,527 $410,235
ExpendituresYear 4Year 5Year 6
Expenditures from Operations
Cash Spending$139,216$164,963$190,710
Bill Payments$83,902$101,247$118,593
SUBTOTAL SPENT ON OPERATIONS$223,118 $266,210 $309,303
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out$0$0$0
Principal Repayment of Current Borrowing$0$0$0
Other Liabilities Principal Repayment$0$0$0
Long-term Liabilities Principal Repayment$0$0$0
Purchase Other Current Assets$0$0$0
Purchase Long-term Assets$0$0$0
SUBTOTAL CASH SPENT$223,118 $266,210 $309,303
Net Cash Flow$63,703$82,319$100,935
Cash Balance$116,948$150,807$184,665

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

Pro Forma Balance Sheet
Current Assets
Accounts Receivable$7,133$8,853$10,733
Other Current Assets$1,000$1,000$1,000
TOTAL CURRENT ASSETS$97,854 $128,841 $165,050
Long-term Assets
Long-term Assets$10,000$10,000$10,000
Accumulated Depreciation$6,210$8,280$10,350
TOTAL LONG-TERM ASSETS$3,790 $1,720 $1,350
TOTAL ASSETS$101,644 $130,561 $164,700
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$5,716$6,862$8,172
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
Long-term Liabilities$0$0$0
TOTAL LIABILITIES$5,716 $6,862 $8,172
Paid-in Capital$30,000$30,000$30,000
Retained Earnings($11,919)$681$24,666
TOTAL CAPITAL$95,929 $123,700 $156,530
TOTAL LIABILITIES AND CAPITAL$101,644 $130,561 $164,700
Net Worth$66,091$93,700$137,880

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Ratio Analysis
Sales Growth0.00%43.41%55.88%4.00%
Percent of Total Assets
Accounts Receivable8.31%7.41%6.51%9.70%
Other Current Assets0.86%-0.21%-1.28%27.40%
Total Current Assets101.15%113.61%126.07%54.60%
Long-term Assets24.55%13.61%2.07%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities5.84%4.12%2.40%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities5.84%4.12%2.40%54.10%
NET WORTH94.16%95.88%97.60%44.90%
Percent of Sales
Gross Margin95.17%94.84%94.51%0.00%
Selling, General & Administrative Expenses81.67%79.21%76.75%65.20%
Advertising Expenses0.57%0.40%0.23%1.40%
Profit Before Interest and Taxes17.98%20.81%23.64%2.86%
Main Ratios
Total Debt to Total Assets5.84%4.12%2.40%67.10%
Pre-tax Return on Net Worth53.54%57.97%62.40%4.40%
Pre-tax Return on Assets50.27%55.14%60.01%9.00%
Additional RatiosYear 1Year 4Year 5
Net Profit Margin13.32%15.28%17.24%n.a
Return on Equity39.57%42.31%45.05%n.a
Activity Ratios
Accounts Receivable Turnover4.564.564.56n.a
Collection Days717885n.a
Inventory Turnover11.151416.85n.a
Accounts Payable Turnover12.6713.1713.67n.a
Payment Days272727n.a
Total Asset Turnover2.712.422.13n.a
Debt Ratios
Debt to Net Worth0.060.040.02n.a
Current Liab. to Liab.111n.a
Liquidity Ratios
Net Working Capital$61,780$81,501$101,222n.a
Interest Coverage000n.a
Additional Ratios
Assets to Sales0.360.390.42n.a
Current Debt/Total Assets7%6%5%n.a
Acid Test13.6116.9620.31n.a
Sales/Net Worth2.852.462.07n.a
Dividend Payout000n.a


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