10 Reasons Car Washes Fail and How to Avoid Them

The car wash industry is growing, with demands for car washes steadily increasing in recent years. But, even with this growth, some car washes fail. Across the board, nearly 80% of private businesses survive their first year, and almost half make it through the first five years. It’s a challenge to start a new business of any kind, and car wash startups are no exception.

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Luckily, learning the most common factors behind business failures can help you understand how to run a successful car wash. We’ve identified solutions to the common challenges new car wash businesses face. Although each business is unique, there are several reasons why car washes fail. Common challenges car wash startups face and our recommended solutions are:

1. Location

Location is often considered the most crucial factor for small business prosperity — not just car washes. Successful car washes locate themselves where it’s easiest for customers to find them and use their services.

Before you decide on a business property, do your research! Find out where your target customer base lives and works. Look at where your competitors are located and where there might be a need for a new car wash.

Ideally, you should locate your car wash in a busy, high-traffic area, near major roadways, shopping centers and office buildings. It’ll be easy and convenient for customers to find you. View this prime commercial real estate as an investment — one that can net much better returns than a property in the middle of nowhere.

2. Facility Design

Location is directly linked to the design or layout of your business. Well-constructed layouts can encourage easy flow, attract customers and make your facility easier to navigate. They also promote traffic in and out of your car wash, ensuring customers stay satisfied and want to return again. Layout and design have an immense impact on customer experience and brand perception.

Again, research and planning are key to selecting the perfect location with suitable design flow and aesthetics. Successful businesses study their location before opening to better understand traffic flow to and around the property. Hire a professional designer for your business — someone with experience and knowledge of how customers should navigate your space. Successful design and business layouts lead to happier customers who want to return.

3. Audience Insight

Some of the biggest business wins come from understanding your customers or learning what they want. You should also be aware of customer satisfaction levels and act quickly to address concerns. In today’s world of easy online reviews and social media, unhappy customers will express their dissatisfaction in a public way that will hurt your reputation if not managed properly.

Developing excellent customer service is the best preventive measure here. Always make sure you have helpful, communicative staff available to address any customer concerns. Have an online presence and easy methods for customers to reach out to you with questions, concerns or general feedback. Show customers that you appreciate them! Offer online surveys and connect with your customer base online. You can then apply your customer feedback to make improvements in your business.

4. Equipment Maintenance

Specialized equipment is a big part of a car wash business. As with any type of equipment, it needs proper maintenance regularly and will gradually depreciate over time. Starting a car wash business requires large upfront capital for quality equipment and supplies. It’s important to protect this investment.

Conduct regular inspections and maintenance routines for all equipment on your premises. Well-maintained equipment gives a good impression to clients and ensures you can provide the best service. And as soon as you notice anything going wrong, get it fixed immediately so it doesn’t lead to larger problems.

Be sure to set aside a certain amount of your budget to cover regular car wash maintenance, repairs and equipment replacements or upgrades, and plan to pay for repairs regularly. With proper planning, you won’t be caught off guard with repair costs down the road.

5. Wash Processing and Customer Experience

In any business, processing refers to the customer experience and the details of each customer transaction. Speed is a large part of processing, but there’s more to it than quick service. A busy summer day can mean customers line up and wait for their turn at the car wash, but a business with poor processing results in much longer waits and frustrated customers.

Plan for better processing right from the start, and you’ll have a much smoother customer experience. Anticipate your busiest days, and find ways to enhance the experience for waiting drivers. You can move more cars through your system in a shorter amount of time with a better processing plan.

One way to improve car wash processing is to provide easy and convenient ways for customers to purchase their wash, with kiosks located further down the lineup area. You could even offer ways to purchase online or in advance. Design your system so one car can start the wash process while another is further in the system, such as at the dryer. These steps all make for speedier service and a better overall experience.

6. Motivation

As a business owner, motivation for success drives you to keep customers happy and turn over a good profit. Your leadership skills and a dedicated staff contribute to workplace motivation, too. Embody positive ideals, build a driven employee culture and encourage success for your business.

Make sure that you’re going into business for the right reasons and you fully understand everything involved in running a business. Be prepared for the hard work of owning a small business and have a clear vision for success. You’ll also need to make sure you hire the right employees for the job and provide good leadership and direction. With a friendly, experienced, motivated staff, you’ll be more likely to have happier customers and better financial success.

7. Marketing

A robust marketing campaign is necessary for any type of business, especially in the first year. A targeted marketing campaign lets potential customers know your business exists and attracts strong prospects you can convert.

Identify your target audience before you open your business and start your marketing campaigns right away. Even with a small budget, you can create successful marketing materials. Online programs can help you design logos, flyers and other professional materials affordably.

Don’t forget about free and low-cost marketing options like social media and email marketing. Offer incentives to customers who refer others and share your online posts — word of mouth is a powerful marketing tool. Ninety percent of people are more likely to believe in a brand someone else recommended to them.

8. Burnout

The varied tasks of running a business can be overwhelming, and many new business owners feel they don’t have a good work-life balance. All of this can lead to a sense of burnout. You might feel tempted to give up, or you may keep plodding along with less enthusiasm and motivation for success.

As a business owner, it’s key to prioritize your mental health to manage stress and prevent burnout. Cultivate a culture of support, and hire qualified staff you trust and can delegate some of the workload to. If your car wash is part of a franchise, find out what support systems your HQ has in place to help you with certain tasks. Reach out for help when you need it, and try to have a healthy balance of work and home life.

9. Financial Planning

Good budgeting, bookkeeping and financial management can prevent early business failure. Car wash business profit margins can be slim to start with, so it’s essential to have a budget plan in place.

Before you open your business, you should go into it with a solid financial plan and a good understanding of how to budget and manage money. Account for and record all expenses, business costs, sales and profits to curb cash flow challenges. Create a working budget including total sales, expenses like rent or mortgage, utility costs, employee wages, marketing costs and any other business expenses.

You can also seek advice from a financial expert. Consider hiring a bookkeeper or using online software that makes bookkeeping and financial planning easier. Keeping records of your finances ensures proper money management and can help forecast business trends and better manage supplies and employees for busier or slower times.

10. Unique Selling Proposition

It’s important to distinguish your business from the onset by standing out from competitors. This will help you attract competition and get a foothold in the market.

Get to know the competition well and find out what they offer. Carve a niche for yourself or find ways to make your business different and attract customers. Will you offer lower prices, better quality goods and services or special extras that make you more desirable than your competitors? Defining your business’s unique selling points (USPs) will help you build a stronger brand image, making you more memorable and inviting customers back.

There are many ways to set yourself apart, and it’s important to identify how you’ll accomplish this early on. Even after your business is established, you should keep a pulse on the local competition and constantly look for ways to distinguish your car wash from the rest. This will help your business evolve and continue to attract new customers.

Set Your Car Wash Up for Success With JBS Industries

If you’re opening a new car wash business, you want it to succeed, and we can help. JBS Industries provides top-quality car wash chemicals and supplies along with unbeatable customer service. We can help get your business up and running with the supplies you need. Browse our selection online to see the amazing products we offer, and don’t hesitate to contact us with any questions. Our helpful staff can guide you to the right products for your business. Reach out today!