Is the Car Wash Business a lucrative one in Nigeria
According to the National Bureau of Statistics, there are about 11.8 million licensed cars in Nigeria, with an estimated number of 75,446 cars added per year. Also, transportation is one of humanity’s most fundamental basic needs. Car transport is a major form of transportation in Nigeria.
You can see why starting a car wash business in Nigeria can be a wise decision. The millions of cars on the Nigerian roads and these cars need washing. What’s more? The majority of Nigerian car owners are working-class citizens who barely have time to wash their cars, and will gladly outsource the job of cleaning their cars to a business. Other reasons why you should consider a car wash business:
The car wash business is an economically sustainable one: People will keep using and buying cars for a long time so a car wash business owner will not run out of business anytime soon.
A car wash business does not require a huge startup capital: With the car wash business, you can always start small and expand as time goes on.
The car wash business is not restricted to seasons: It doesn’t matter what time of the year it is, cars will always need washing. Whether it’s rainy or dry season, there is always a need to wash a car, either from mud or dust.
Summing up the advantages of starting a car wash business, you have; a low startup capital, a business that is needed in and out of season. These are a few reasons you should consider starting a car wash business.
However, even with these advantages, there are factors you must consider if you want to run a car wash business successfully. This article covers all you need to know about starting a car wash business and making it successful.
Factors to consider when starting a car wash business
No business can run effectively without money, no matter how small it is. The first thing to look into when starting a car wash business is raising funds to run the business. You need money to buy the necessary equipment needed. You also need money to rent a space. Many people have started a car wash business with just about N200, 000. Remember that the capital needed depends on factors such as location and the scale of business.
Finding a good location
Finding a good location for your car wash business is one major determinant of the success of your business. The car wash business grows better when there are lots of customers patronizing. In fact, your business may fail and you lose your investments and capital, if you make a mistake on its location.
The roadside is the best place to set up a car wash business. This way, the car wash is visible to potential customers and easy to patronize. Someone driving home can easily branch to get her or his car washed. Even if one finds a roadside, it must still be a place with a lot of traffic (a major road). It is also wise to locate a car wash at major road intersections such as a roundabout.
You must never set up a car wash in a secluded area, such as inside an estate or residential area. Other places such as near markets and offices, center of town, major roads (not highways), parking lots, malls where people are often found, is a great location for your car wash business.
Although, the car wash business is not difficult to start, in the sense that one does not need special educational qualifications. Albeit, it demands knowledge and expertise to be successful at it. Many people have started a car wash business in a hurry without obtaining the needed expertise, only to have it crash. Visit other car wash businesses and observe the setup and operations of the business. Do not forget to ask questions such as how customers are billed, how the staff is paid, and other tips to run the business successfully.
Source of water
Water is unarguably the most needed resource in a car wash business. Before picking a location, make sure it has a reliable source of water or else, you will be frustrated. Sources of water include; the state provided tap water, borehole, and a dug up well. Whatever water source you choose, you must have a water storage tank, to store the water for use so you will not have to pump water directly every time you need to wash a car.
Buy equipment and materials.
There are equipment and materials needed in a car wash business. Basic materials are:
- A piece of cloth
The number of equipment you buy depends on the amount of money you have to invest. If you want to run the car wash business on a large scale, you will get more and heavier equipment, such as:
- Washing system
- Cleaning and spot-free solutions
- Water borehole
- Power generator
- Storage tanks
However, the good things about the car wash business is that you can start on a little capital and it will be sure to grow as long as you render great services. The more tools you can afford, the better your business will be for it in terms of time efficiency.
Business License to operate from CAC
Like all businesses, you must register your car wash business with the Corporate Affairs Commission for it to become a fully legitimate business in Nigeria. All you need to do is register it as a small business. There may be a need for a special license to operate in certain areas. Do some research, and find out what laws apply to your locality.
As your business keeps expanding, you will need to increase your staff. Ensure your staff is well trained in washing cars clean and customer service. The members of your staff also determine the success of your car wash business.