How much does it cost to start a carwash business?
I want to start a small carwash business and from my initial research it seems pretty inexpensive to set up. Can anyone share how much it typically costs to set up a carwash business (including insurance, marketing, etc)?
I can’t speak from experience on this one, but from our research, the cost of starting a carwash business can be up to $700,000. The biggest expense is purchasing the land or commercial site which can cost up to $200,000 alone. The second biggest expense is the carwash equipment. Self-service bays usually cost between $8,000 to $10,000 while automatic bays can cost up to $50,000. You then have to think about installation costs which will set you back a fair bit.
Some of the most common startup costs for a carwash business include:
Commercial lease/rent
Building costs
Equipment and supplies
Installation (plumbing, wiring, etc)
Insurance
Business registration
Permits and licenses
Legal advice
I guess it would also depend on whether you open a franchise business or whether you start a business from scratch. There are pros and cons of franchising - pros include having an established brand that consumers already know, established business processes and operations and a support network to raise your concerns and find solutions. Some of the disadvantages are that buying a franchise is usually quite expensive and you don’t have the flexibility to make it your own as you have to stick to the terms and conditions.
Hope this helps!