Thinking about branching out and starting a new company? If you haven’t already considered it, there could be a huge market gap to seize. With millions of new cars registered in the UK every year, there’s no shortage of motorists – and it’s safe to assume that many would rather pay someone else to clean their car than get their own hands dirty. Read on to find out more about the lucrative potential of starting a carwash business in the UK in 2022.
Are carwashes profitable?
Amongst the first few steps to take when considering a carwash start-up is conducting your own market research. Car washing services will only be profitable in areas where they’re most needed, so it might not be a good idea to set up in a remote location far from any commuting towns or cities. The main goals of market research consist of:
- Allowing you to discover any hidden or unfulfilled local demand
- Helping you to draft your business concept in line with the demand
- Through data collection, enabling you to estimate potential profits and sales
Once you’ve identified a market, it’s wise to think about the services you’d like to provide. Depending on the type of clients you’ll attract within your area, it could be more lucrative to offer valeting in addition to bodywork washing, or just one of the two.
Legalities and paperwork
It’s also imperative to pay attention to safety regulations for the bricks-and-mortar part of your carwash business. Along with external equipment, you’ll need to think about health and safety in the office, where specialist anti-slip floor paint and wet floor signage are essential.
As with the foundations of any successful business, you’ll need a solid plan to hit the ground running with your new carwash. While no two plans look the same, it’s important for every entrepreneur to consider any quirks or nuances. Your business plan should include at least:
- A comprehensive financial forecast with projected performance for up to three years, plus expected profitability
- Written objectives, including those for your individual project, your team, strategy, and short- to medium-term goals
Starting your own business can feel daunting, especially if you’re inexperienced. It’s always worth checking official advice on setting up a business to know your responsibilities and limits.
Rules and regulations
Adhering closely to relevant processes and regulations for carwash businesses will be crucial, especially in your first few months and years. It only takes one small mistake on a luxury automobile to land you in enormous debt, so it’s absolutely essential to invest in relevant, specialist insurance.
With solid investment, a strong local market, and a motivated team of staff, your carwash business is bound to be a success. Good luck!