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TheCompleteHowToGuidefor
StartingaCarWash
By Katie Cubitt

WhatyouneedtoknowaboutopeningyourowncarwashinSouthAfrica.
Wealllovetohaveacleancar.Shinywheels,the
perfectlyclearwindowsandnotastreakinsight.In
todaysfastpacedworldweoftendonthavethetime
todoitourselvesandwhenwedo,thereareother
thingsthatquicklyfillthattime.
Andsowepopofftothelocalcarwashtohaveitdone
andtickedoffthelistsothatwecanmoveontoother
things.
Howoftenhaveyousatconsideringowningacar
washofyourownwhileyourewaitingforyourcarto
bedone?Ifitsmorethanonce,thenmaybeyou
shouldconsidertakingtheleapandstartingacarwashbusiness.Belowareallthestepsand
tricksofthetradethatyouwillneedtolaunchyournewcarwashbusiness.

HowtoChooseWhatTypeofCarWashtoOpen
Thefirstdecisionthatneedstobemadeinvolves
decidingbetweenafranchiseandan
independentbusinessmodel.Bothofthesecome
withtheirownsetofrisksandrewardsallof
whichhavebeensetoutinthetablebelow.

Thedecisionbetweenanindependentventureandafranchiseopportunitymustbeapersonal
choicebasedonyourpersonality.

Ingeneralifyouaresomeonewholikestoblazeyourowntrailandliketohave
completeanduttercontrolovereveryaspectofyourbusiness,thenstartingacar
wash,oranybusiness,asanindependentisthewaytogoforyou.
Ifhowever,youarebetteratworkingwithintheguidelinesandlikethefreedomofsomeone
else,inthiscasetheparentcompany,makingthedecisionsforyouthenstartingafranchise
isthewayforward.
Makesurewheninvestigatingthecarwashfranchiseyouareinterestedin,thatyouchoosea
recognisablebrandwithagoodreputationinordertogetthefullbenefitofbuyingintoa
franchise.
Withbothfranchisingandindependentventures,younowalsohavethechoiceofstartinga
mobilecarwash,insteadofafixedfulltimeentity.Thisalsocomeswithprosandconsand
thesearelistedbelow.

StepsforRegisteringaCarWashBusiness
Herearethemainstepsforregisteringyournewsmalltomediumenterprise:
RegisteryourbusinesswiththeCompaniesandIntellectualPropertyCommission(CIPC).This
involveslodgingaNoticeofIncorporation(CoR14.1)andaMemorandumofIncorporation
(CoR15.1AE).Theseformsareavailableatwww.cipc.co.za.Theytakeroughlyfivetoseven
days.
Alternatively,itispossibletouseaservicethatregistersyourcompanyforyouwiththeCIPC
suchasthisone.Theseservicesdoofcoursehavetheirownfeesattached.
Thereafter,youmustopenabankaccountforyourbusiness.Dependingonthecorrectnessof
theapplicationforms,thisonlytakesadayortwoandisfreeofcharge.
ForanSME,earninglessthanamillionrandayeartheonlyformthatSARSrequiresisthe
IT77CthatmustbeaccompaniedbyacertifiedcopyofyourIDandacopyofthecompanys
registrationdocumentation.TheIT77Cformisavailablefromwww.sars.gov.za.Ifyour
employeesaged2465willbeearningmorethanR5000permonth,thenyouwillneedto
registerforUIFandPAYE.
Toregisterforunemploymentinsurancevisitwww.labour.gov.zaformoreinformationonthe
processandfortheforms.
Thefinalstepthattakesplaceinconjunctionwiththestepaboveistocoveryouremployeesin
termsofoccupationalinjuries,diseasesordeathintermsoftheCompensationFund.Thisis
optional.Theseformsareavailablefromwww.labour.gov.za
Intermsofthepermitsandlicensesyouwillneedtostartacarwashyouneedtofirstassess
whetherornotthepremiseyouwanttoworkfromispurelyresidentialorifithasbeenzonedto
allowittobeabusinessproperty.
Furthermore,tooperateacarwashyoumightneedtoapplyforapermitunderthewater
restrictionbylawsdependingonyourmunicipalityandtheprovinceyouarein.Formore
informationonthepermitspossiblyrequiredvisittheDepartmentofWaterAffairswebsite.

CarWashFundingOptions
Beforeyouevenbegintolookforfunding,youwillatthispointneedtocreateadetailed
businessplan.Noinstitutionwillgiveyoufundingwithoutone.Forinstructionsonhowtoputa
businessplantogetherwatchthisvideoonbusinessplansfordummies.

Sourcingfundingforastartupcanbeabitofachallengeifyoudonotknowwheretogoor
whattheyareexpectingofyou.Hereisaquickrundownofwhatyouwouldneedtopreparein
ordertoencourageothers,suchasfinancialinstitutions,togiveyouthefundingyouneedto
startyourventure.
Broadlyspeakingtherearefourmainoptionsavailabletoentrepreneursstartingtheirown
businesses.Theseare:loansfromfinancialinstitutions,owncapital,investorsandgrants.
Grantsusuallycomefromthegovernmentandareloansthatyouwonthavetorepay,but
grantscomewithstrictguidelinesonhowthefundsmaybeused.
Itisalwayspreferabletostartwiththebankthatyoualreadydobusinesswiththatwaythey
haveallyourinformationandknowyourfinancialhabitsandbehavioursaswellasyourcredit
record.Anotheroptionistolookatcreditunions.
Whenapplyingforfundinghereareafewtrickstohelpyougetthecash:
Makesurethatyouhaveadetailedbusinessplanthatshowshowthefundswillbeusedandspent.Itis
highlynecessaryforyoutohaveadetailedknowledgeofthecostsinvolvedinyourbusinessfromsuppliesto
stafftooverheadsandequipment.

Knowabouttheindustryandthemarketyouareentering.Itcanbebeneficialforyouto
doamarketanalysis.
Youwillmorethanlikelyhavetouseyourpersonalassetsandwealthascollateralfor
yournewbusiness.
Itwillshowyourdedicationandcommitmentifyouuseyourowncapitaltoplaceaninitial
investment.Insomecases,itisrequiredforyoutodososuchaswithSEFAtheSmall
EnterpriseFinanceAgencywhorequirea10%personalinitialinvestment.

ChoosingaLocationforYourCarWash

Withafixedlocationmostofyourbusinesswillcomefromwalkins.Itisessentialtoyour
businessthatyourcarwash,oranyservicebasedbusiness,isinalocationthatisconvenient.
Moreoftenthannotpeopledonotspecificallysetouttogohavetheircarswashedbutrather
enduphavingitdonebecauseitwaseasilyavailableandtheyhadthetime.
Hereareafewtipsofchoosingasuccessfullocation:

Beingnearashoppingareaisalwayspreferable

Heavilypopulatedresidentialareaswithhightrafficvolumesarebetterforbusiness
Thesitemustbeeasilyaccessiblefromtheroad
Itmustbeeasyforcustomerstogetbackontotheroadoncetheircarisclean
Highlyvisible
Adecentsizecarwashhasmorethanonewashinganddryingbay,thereneedstobe
enoughspacefortheseaswellasawaitingarea
Enoughspaceforcarstoqueue
Itisalsoinyourinteresttopickalocationthatwillallowforexpansionsasyourbusiness
grows.
InSouthAfricanlaw,verballeasescanbeupheldincourt,butitisalwaysbesttogetthe
agreementinwriting.
Inclearandconciselanguagethatbothpartiescanunderstand,makesurethatyourlease
coversanychangesyoumayormaynotmakebothstructurallyandsuperficially.
MakesureyouknowhowyourrentalwillbecalculateditisusuallyquotedinRandsper
squaremetrepermonth,excludingVATforcommercialandindustrialpropertiesinSouth
Africa.Makesureyoubothagreeonwhatcostswillbecoveredbyyourrentalandwhatcosts
youwillincur(i.e.electricity).
Knowunderwhatcircumstancestheleasemaybevoidedbyeitherparty.Andfinally,know
whoisliablefordamagestothepropertyorforinstancesofburglary.

CarWashInsuranceandLiabilityCover
Firstoff,fornewownerstheimportanceofadisclaimerneedstobehighlighted.Adisclaimer
canexemptcarwashownersfromcoveringthecostsofrepairingvehiclesthataredamaged
ontheirpremisebuttheydonotcovergrossnegligenceonbehalfofthebusinessowner.
Itistheresponsibilityoftheownertoensurethatallmachineryandequipmentiswell
maintainedandisregularlycheckedforforeignobjectsthatcouldcausedamage.Itisalsothe
responsibilityoftheownertomakeabsolutelysurethatallcleaningproductsusedthroughout
theprocessarecarfriendly.
Furthermore,publicliabilitycoverisnotenough.Propertyinthecustody,careorcontrolofthe
carwashownerisexcludedfromcoverunderthepublicliabilitysection.Thecorrectpolicyto
haveinplaceistheMotorTradersInternalsection.
Yourlevelofinsurancecoveragewillhavetobehigherifyouandyouremployeesaretheones
drivingandmovingthecars.
Itisimportantthatyouastheownerofthecarwashtohavegeneralliabilityinsurancethat
covers:

Medicalexpensestoyourselfandyouremployeesincaseofinjury

Custody,careandcontrolcoverage
Equipmentbreakdown
Damagetocarsyouwillneedtosetthislimitforyourpolicy
Itisalsoimportant(especiallyifyouhaveboughttheproperty)thatyouhaveproperty
insurancethatwillcoveryourpremiseintermsoftheft,damage,fire,floodingetc.
LeonardDegee,whohasbeenintheindependentcarwashindustryfor12years,knowsthat
inorderforhiscarwashtocontinuesuccessfully,itisimportantthatonlymanagementhandles
allthecars.
Notonlydoesitmaketheinsurancecoverageeasierandcheaper,butcustomersareusually
happierknowingthatthepersonwhomightbemovingtheircarismoreaccountable.

CarWashEquipmentandSupplies

Obviouslytheequipmentyouneedwilldependonthetypeofcarwashyouopen.
Insomecases,allyoullneedisabucket,cleanwater,soapandsomegoodclothsandthe
willingnesstoapproachpeopletoofferyourservices.Butifyouwouldliketoopenamore
professionalbusinessandreachabroadermarketthenthereissomeequipmentthatyoull
need.
Ifyouareopeningafranchise,theparentcompanyorfranchisorwillbemakingthedecisions
foryou.Ifyouareopeninganindependentlocationormobilebusinessthenyouwillneedto
sourcethenecessaryequipment.
Thebasicequipmentneededforamanualcarwashis:
Highpressuresystem

Oil/waterseparationUnit
Drainageunit
Industrialvacuumcleanerwithwetupholsterycleaningoption
Possiblyanupholsterycleaner
Dependingontheproductsyouchooseyoumightneedafoamattachmentonyourhose.
Alongsideyourbasicequipmentyouwillalsoneedyourlocationtohave:

Concretewashbayslab

Pumproom
Dryingbay
AncillaryWallingandPaving
TheBasicequipmentyouwillneedforamobilecarwashis:
Pressurewasherhosewithacompressor

Anindustrialhosewithnozzleandgun
Agoodsizedtankinthebackofthetruck/vanoreventrailer
Agenerator(remembertokeepextrafuelhandy)
Apowerfulvacuumcleaner
Forcleaningproductsandsupplies,youhaveamultitudeofvarietiestochoosefrom.Ifyouare
inclinedtogotheecofriendroute,thereareevenrangesofwaterlesscleaningsolutions.
Thecleaningproductbasicsyouwouldneedare:
Carsoaps

Metalpolish
Plasticpolish
Carwax
Glasscleaner
Fabricshampoo
Leathercleaners
Detergentforthepedals
Andthensponges,cloths,brushespreferablysuitableforuseonallcars.
Herearesomesuppliersofequipmentandcleaningproducts:
EcoWashhttp://www.ecowash.co.za/

HurricaneCarWashhttp://www.hurricanecarwash.co.za/about.html
KwikCarWashhttp://www.kwikcarwash.co.za/page2.htm
EcoDWashhttp://www.ecodwash.com/
Durawashhttp://www.durawash.co.za/
Dynachemhttp://www.dynachem.co.za/
GeowashSouthAfrica(formobilecarwashsystems)www.geowash.co.za
Keepallequipmentingoodworkingconditionwithregularcheckups.Foraneasierresale,
makesureyouhavedetailedmaintenancerecordsonallequipment.
InDegeescarwash,theypurchaseR3000worthofstockeverymonthwhichcoversthe
360orsocarsthattheyclean.

CarWashMarketingandBrandingBasics

Brandingandmarketingaretwoverydifferentconcepts,bothofwhicharehighlyimportantto
theeffectivenessofyourbusiness.
Simplyput,brandingisyourpromisetoyourcustomersmarketingiscommunicatingthat
promisetothem.
Inordertobringthecustomerstoyou,thereareacoupleofthingsyoucoulddo.Theseinvolve
connectingonanemotionallevel,stayingrelevantandflexible,committingtothecommunity
youworkin,stayingvisibleandfinallyaligningyourmarketingtacticswithyourbrandstrategy.
Thebiggestsecrettomarketingisbeingabletodifferentiateyourselffromyourcompetitors.
BrandStrategyInsiderisanonlineresourceforbrandingandmarketingandtheylist50ways
todifferentiateyourbrand.
Forthecarwashbusinessherearetheapplicableones:
Expandyourappeal

Rewritetheexperience
Breakawayfromconventionalwisdom
Betheexpert
Sharevalueswithyourcustomers
Engagethesenses
Focusonaesthetics
Treatpeopledifferentlythanyourcompetitorsdo(treatthembetter)
Whenyouareimplementingthesevaluesinyourbrand,makesurethattheygodeeperthan
justyouraims.Makethesethingsthatmakeyoudifferentthefoundationofyourbusiness.
Thatmeansengravingthesechangesinthemissionstatementandinstillingitinyourstaff.Its
importanttonotethatyourstaffareyourbrandambassadors.Agoodserviceexperience
meansthatpeoplewillcomebackandmorethanthat,theywilltellothersaboutyoutoo.Word
ofmouthisapowerfultoolinlaunchinganewbusiness.
Degeesaysthatthebestmarketingstrategytheyhaveistheircarwashsvisibility.
Intermsofmarketingschemesavailabletoyouasanewbusinessowner,youhaveacouple
ofeasyoptions.
Availablemarketingoptions:

Keeptheconversationactivewithyourcustomers

Flyers
Customerdatabasessothatyoucantextoremailthemyourspecials(thesemustbeopt
in)
Signage
Posters
Advertisementsinlocalpapersandonlocalsites
Promotions
Coupons
Specials
Discounts
Alwayssquashanybadwordofmouthbyprovingtheopposite
Considerloyaltyrewardprogrammestoencouragerepeatcustomers

HiringandManagingYourCarWashStaff
Goodmanagementandgoodstaffisthemostimportantthing,saysDegee.Withyourstaff
oftenhandlingthemoney,itiseasyforuntrustworthystafftoslipitintotheirpocket.

MakesureyourstaffisreliableandDegeeadvisesthatyouneedtokeeptheftas
lowasyoupossiblycan.
Ifyouopenabiggeroperationthanjustyourself,orifyouareneededtoexpandyourbusiness
asitgrows,thenyouwillneedtohirestaff.Becauseyouareintheservicedeliveryindustry,
youneedtorememberthatyourstaffneedstotreatyourcustomerswellasdoyou.
Tothiseffect,hirepeoplethatare
Polite

Friendly
Punctual
Efficient
Haveagoodsenseofservicedelivery.
Thenumberofpeopleyouhiredependsonyourexpectedworkload.Themorewashingand
dryingbaysyouhave,themorepeopleyouwillneed.Youalsoneedtoconsiderhowmany
daysoftheweekyouareopenandhowmanyhoursaday.
Obviously,ifyouwanttogothemoreautomatedroutewithamachinerunconveyorsystem,
thentheneedforphysicalstaffwillbeless.

HowtoSetYouSetYourPrices?
Ifyouaregoingtogiveavarietyofdifferentservicesthenyoushouldhaveoptionsforall
budgetsandtimeframestosuitthebiggestmarketpossible.
Aswithanyserviceindustrybusinessyouneedtohavecompetitivepricesfortheservices
thatyouoffer.Itsimportanttodosomemarketresearchinyourareaastowhatyour
competitorsarechargingforwhichservices.Peoplewillpayalittlemoreiftheservicethatthey

receiveisoutstandingbutthequalityofyourworkmustjustifytheprice.
Importantfactorstoconsider:
Thecostofyourcleaningsupplies

Youroverheadcosts
Theamountofcarsyoucandoinanhour
Thenumberofstaffmembersyouhave
Yourworkinghoursfortheweek
Competitorpricesforsimilarservices
Thetypeofareayouarein(residential,urban,rural,business?)
Foramobilecarwashitisimportanttoconsidermanyofthesamefactorsincludingfuelprice
anddistancetravelled.Ingeneral,thecostofamobilecarwashserviceishigherthanthatofa
carwashthatapatronwillgotobecauseoftheaddedconveniencefactorforthecustomer.
Whendecidingonpricesforamobilebusiness,youwillonceagainneedtodocurrentmarket
researchintowhatyourcompetitorsarecharging.
Toendoff,itisimportantthatyouandyourstaffdoagoodjobonthecarsthatyouclean.The
bestwaytogetrepeatcustomersistosupplytheonesyouhavewithanamazingservice.For
anindepthtutorialonhowtoprofessionallycleanacarwatchthisvideo.

AdvicefromCarWashPros
Degeeoffersafewtipsforanentrepreneurstartinghisowncarwash.
Trustworthystaffishardtofind.Sortthatoutbeforeanythingelse.

Sometimes,theeasiestwaytobringinnewstaffisthroughourexistingstaff.
Ahighturnoverratebringsthepossibilityofmorethefttrykeepinggoodstaffforaslong
aspossible.
FortheInternationalCarwashAssociationvisitwww.carwash.org.
Apr29,2014

Katie Cubitt

KatieCubittcompletedaninternshipwithEntrepreneurMagazinein2014.SheisafinalyearJournalismand
LinguisticsstudentattheUniversityofJohannesburg.