Everyone in the startup world has heard the adage: “Launching a business is not a sprint; it’s a marathon.” But really, the comparison isn’t kind to entrepreneurship. A marathon at least has an ending point, a place you know you can reach and then rest.
A business just…keeps going. (If you’re lucky!) But here’s one way in which a marathon really is like a business: Without proper training, you’ll definitely fail. Shin splits from the marathon, employees splitting from your business. Stress fractures from running, stress from ruminating. You might even puke from both.
Passion and adrenaline will only get you so far. Way too many entrepreneurs show up at the startup starting line without so much as a stretch, and those folks may barely make it past the first mile marker.
Seasoned entrepreneurs and advisers agree: Before you jump into the race and hope to go the distance, you need to go through basic business training. Here, your guide from a wide range of coaches.
Step 1: Train in your off-hours
You know the saying “Don’t quit your day job”? OK, seriously, don’t quit. New businesses can seem instantly promising and exciting and full of potential, but they are almost never going to pay you a living wage immediately.
“So often people say, ‘We had this bit of momentum, and we all quit our day jobs and jumped into the company,’” says Duncan Logan, CEO of San Francisco co-working space RocketSpace.
“And then the momentum died off and they realised they’d made a terrible mistake — that it wasn’t a business yet. It was still a hobby.”
Logan’s advice: The best way to prepare for a launch is to run your new business as a side project and stay in your current job for as long as possible.
Sure, this means you’ll be juggling two jobs and potentially stressed out of your mind – but that’s good training for when your new startup takes over your entire life anyway. (Of course, this also means you may be building your business on your current employer’s dime, so be mindful of that: If you keep your day job but are too distracted to actually focus on it, you’ll quickly lose it.)
Step 2: Know why you’re launching
Do you know why? It sounds like a stupid question, but take a moment to really ponder it. Why are you about to devote your life to this startup? Why is this a business the world must have? Do you believe that strongly in it – not just in its potential, but in what it stands for?
If you don’t have a good answer, stop right now. Don’t restart until you’ve figured it out.
“When you have a decision to make and you don’t know what the right answer is from a financial or traction standpoint, you’re supposed to lean on your values,” says Blake Smith, CEO of Cincinnati-based online personal stylist Cladwell. But in the early days of his business, he says, he realised he’d never fully clarified his values. “Instead, I would ask other people what they thought and lean on them, which really caused me to spin my wheels in my business.”
Eventually, he says, he figured it out: His core business values were about authenticity and a desire to represent transparency in the clothing industry. That was his north star; every decision he made could be based on staying true to those ideals. “You have to be able to lead from your own values,” he says. Clarify yours at the start.
Step 3: Write it down
The written-out business plan: It used to be a standard part of launching a business. But many ’treps today are dismissive of it, says Donald F. Kuratko, executive and academic director of the Johnson Centre for Entrepreneurship and Innovation at Indiana University’s Kelley School of Business. They tell him that a business plan is old-fashioned and ineffective, a holdover from a simpler economy.
Wrong move, Kuratko says. No matter the business and no matter the industry, every entrepreneur needs to study the market problem they’re addressing – and that means understanding the market, and developing a concrete strategy for how they’re going to land that first customer. There’s no room to wing it.
“If you can’t articulate those things clearly, you’ve got a problem right off the bat,” Kuratko says, and the exercise of writing a business plan reveals those issues. “You want to make sure those points are addressed before you start, like making sure you have the right shoes for running a marathon.”
Step 4: Take your benchmarks seriously
You don’t begin training for a marathon by running 26.2 miles. You set your goals more modestly — start with a few miles, work up to 16, and so on. The same principle holds true behind the desk: Begin by laying out your interim goals, to ensure that you grow in a timely manner (you know, before the money runs out). These can be quarterly, six-month or even annual goals; it doesn’t matter, so long as you decide what success looks like and are realistic about whether you’re achieving it.
And that’s the easy part. Now you’ve got to stick to them.
Logan, the co-working-space CEO, is a cautionary tale in what happens if you ignore your benchmarks. When he started his previous company, he set some hurdles for the first year – and decided that if he missed them, he’d fold the company. Then he missed them…and instead of taking action, he says, he created excuses.
He set new benchmarks and gave it another six months. Those weren’t met, either. Ultimately, he dragged the company along for two miserable years before finally shutting it down. He could have saved everyone a lot of time and just quit when he knew things weren’t working.
“You need to have a very honest set of metrics and know that if you don’t meet them, you have to reevaluate before you’re broke,” he says.
Step 5: Enlist key critics
A running coach will be your greatest cheerleader – up until the point where it’s clear that you won’t reach the finish line. When you’re stumbling, a good coach will tell you to quit before you hurt yourself. Now it’s time to find your business coaches.
Logan recommends creating a “trust circle” of two or three people who can give you brutally honest, critical feedback on your business. Few people will provide that once you’re up and running – because they know how hard you’re working – so he recommends assembling this group before you start.
“As much as it might hurt, you need someone who will tell you, ‘Your baby’s ugly. We know you love it, but it’s just not going to happen,’” Logan says. “You need those people in place early on, because it’s so hard to see it as an entrepreneur.”
Step 6: Prep your personal life
Just like with marathon training, the hours spent away from home during a startup launch can wreak havoc on your work-life balance and spur resentment among loved ones. But Scott Bailey, managing director of the startup accelerator MassChallenge Boston, has some good news for you: It’s OK – important, even– to leave work and see your family!
“That feels like it goes against everything almost everyone else expects of entrepreneurs, because people – especially investors – want to know you’re full-time focused and dedicated,” he says. But nobody wants to see you friendless and alone. That’s bad for you, and bad for your business. “Sacrifice other things,” says Bailey – but not your relationships.
How? Set limits at the very start. Talk to your family about what’s most important to them. Maybe it’s your doing chores around the house, or attending kids’ ball games, or not checking your phone at dinner, or staying away from the computer while on vacation (as much as is reasonably possible, at least). When you stick to these agreements, your family will feel appreciated; you may be busy, but at least they know when they have you.
Step 7: Build a home budget
when training for a marathon, you cut back on pizza and beers. But when you prepare for your startup, well, you might just want some cheap pizza and beer. The rationale is the same: It’s time to monitor your intake — less junk food for the marathon, and less-expensive food for your budget.
Your startup may take a toll on your finances, which can put stress on your relationships. So before the business gets going, you should run the numbers on your personal finances and set up a strict budget.
“It’s OK if you don’t put a dollar into savings for a while, but you can’t be upside down a dollar every month, either,” says Walter Knapp, CEO of Boulder, Colo.-based advertising technology firm Sovrn. He knows it well: He’s helmed four startups and keeps a careful budget to make sure he’s always able to pay his fixed costs at home. Otherwise, he says, you’ll create “too much stress on you and your family, as well as your employees and their families.”
Step 8: Find your people
Like a running group that trains together, a community of other entrepreneurs can help keep you on pace. Incubators, accelerators and other entrepreneur centres may provide an accessible network. Join them.
Reach out to entrepreneurs in similar situations to yours, and try to develop relationships with more experienced people who can serve as mentors.
“You can gain a lot from other entrepreneurs, even if they’re in entirely different industries or have totally different ideas. What they’re trying to achieve and the struggles they face are so similar,” Bailey says. “It’s a great way to gain insights and spark new ideas, and everyone in the entrepreneurial community needs support.”
This article was originally posted here on Entrepreneur.com.
How To Make Course Corrections And Finding Your Differentiator
A lot of launching a business is starting small, and pivoting as needed.
An advisor whom we trust, and who has been involved in our business since launch would like to buy into the business. We could make use of the cash injection, and we believe his experience would be beneficial to the business. His condition is that he occupies a board seat, and that we create an advisory board that he can also sit on. Should we do it? — Mvepho
If you trust the guy and need the money, do the deal. A board seat is fine. Voting should be based on shareholding, not hands raised. Don’t allow for any special minority rights like veto over budget or right to appoint CFO.
An advisory board for a start-up seems a tad overkill, but if he wants one, give it. He’s either going be an ass, or he won’t. Only one way to find out: Get into bed.
The key provisions of the shareholder agreement relate to divorce. How do you get out of relationship? There are three key parts to consider: Forced sale provisions (death, disability, prison, leave country, etc); Valuation formula for exit (5 x NPAT); Agree to arbitration being binding.
The simpler you keep things, the easier it will be to part ways if things don’t work out.
I need to attract customers away from their existing suppliers who offer a similar product to mine. My value proposition is convenience and quality. What other value should I consider? My main customers are restauranteurs and households (flats), and I provide the convenience by instant deliveries of food (chicken and eggs) to their doorstep. — Mam
Pick one differentiator. If one isn’t enough, your product isn’t good enough.
In this case maybe it’s convenience. Or maybe it’s speed of delivery (30 minutes from order). Or maybe it’s the best eggs in SA.
Whatever. Ask customers what the most important thing is, then focus on pushing that as your unique selling proposition.
That doesn’t mean you ignore the other inputs. It just means your pitch is predicated on one key selling point.
My partners and I have managed to get an investment opportunity for our app but now we have an issue about how we should spend that money.
I think we should first get some traction with users with a MVP even though we’re not delivering on our value proposition in the beginning i.e selling before we commit to building and iterating based on user feedback before adding new features.
My partners think that now that we have an investment opportunity, we should build the app with all the features because that’s what differentiates us in the market.
How would you handle a situation like this? — Tula
Start with MVP. Get feedback. Iterate.
Do not start with an app including all the bells and whistles. Firstly, it will take too long to make and get bogged in scope creep. Secondly, if you’re on the wrong track and you’ve already spent all your money, its game over. Insert coin.
Rather start small. It lets you course correct faster and keeps you in the game longer.
My waiter has contracted a chronic infectious disease (not HIV). He’s worked for me for seven years, but I can’t risk my staff/customers getting sick. What should I do? — Bob
The business comes before individuals. It can be painful losing a loyal long-time staff member, but you have to do it if he jeopardises your business survival. Exhaust all options, but if there is no medical solution then you have no choice. But you can’t just cut him loose. If you do that, all your other long-standing staff will look at you and think, “He doesn’t care for me.” Morale will go down, and your business may fail anyway.
If you are forced to lose a loyal staff member, you must go out of your way to ensure he/she is financially taken care of, either through a pension or a lump-sum payment.
It’s the right thing to do, and it will show your other staff that you have their backs through thick and thin.
Alan Knott-Craig’s latest book, 13 Rules for being an Entrepreneur is now available.
What it’s about
It’s easy to be an entrepreneur. It’s also easy to fail. What’s hard is being a successful entrepreneur.
For an entrepreneur, there is only one important metric of success: Money. But life is not only about making money. It’s about being happy.
This book is a collection of tips and wisdom that will help you make money without forgoing happiness.
Get it now
Do you have a burning start-up question?
(Infographic) The 20 Most Common Reasons Start-ups Fail And How To Avoid Them
These do’s and don’ts can make or break your start-up.
So, you have a great new idea or invention, and you are ready to open your start-up business. But, you’ve been scared by the well-publicised statistic about start-up failure – more than 50 percent of small businesses fail in the first four years.
Opening and operating a successful start-up requires some luck hard-work and thoughtful planning – as well as the ability to adapt that plan. Having been involved as a consultant to numerous start-ups over the past decade, I have seen some fail, some achieve a modicum of success, and some make it big.
Here are a few do’s and don’ts that will help guide your start-up to the promised land:
- Don’t think that a great idea or a great product is enough. The start-up graveyard is littered with amazing ideas and products that have failed.
- Do have a business plan that includes every aspect of how you will run your operation and how it will be successful. It should include all anticipated costs, marketing, manufacturing, the technology required and staffing. A business plan should also include how you will market and sell your product.
- Don’t think your idea or product is original and because you and your friends think it’s amazing, means that it is and there’s a market for it.
- Do lots of research before you spend your money. As a consultant, I have on three separate occasions been asked to help with a business plan for a start-up, where I discovered almost exactly what they are doing has been tried before and failed. In two of those instances, the previous failures indicated that the idea wasn’t good. In the third instance, we were able to learn from the previous mistakes and actually make a successful run at it. The number one reason start-ups fail is that there is no market for their offering.
- Don’t assume you will get financing other than the money you start with from yourself, family and friends. Only a very small percentage of start-ups get Venture Capital (VC) funding and in fact, the funding bubble has burst. And that means early-stage start-ups are getting little or no love from outside equity firms.
- Do assume the initial funding you have will be all you get, so the goal is to have the lowest burn rate possible. Therefore, your initial business plan should have a route to profitability and sustainability before the money runs out. The number two reason start-ups fail is that they run out of money.
- Don’t think that your expert knowledge of your business, a well-developed business plan and proficiency in PowerPoint are enough to craft an investor deck that will get a private equity firm’s attention.
- Do hire an expert consultant who has done this before. VCs can smell an embellished or amateurish deck 100 miles away. You typically only get one look by a potential investor, so make sure your investor deck is the absolute best it can be.
- Don’t assume that technology will be easy or come as scheduled. In almost every start-up I have been involved with, where the need for technology advancement was crucial to success, there were unanticipated issues and delays.
- Do assume that there will be delays in technological deliveries and therefore you need to leave a buffer for that in your business plan. Do have a competent development team and if they are not performing, replace them as soon as possible.
- Don’t think that you can go at this alone or that it will be easy to assemble a winning team.
- Do select your team members carefully, trying to add as much diversity as possible. The most successful start-ups that I have seen have mixed experience and newbies as well as the more traditional kind of diversity. The number three reason startups fail is that they have the wrong team.
- Don’t think customers are just waiting for your offering and investors will be lining up to give you money simply because your idea is amazing – even if you have been a successful serial entrepreneur in the past.
- Do be humble and realistic about everyone you meet. Relationships are a key to success, and like with personal relationships, if you want to be successful, be sure you see yourself as others see you. I have witnessed a lack of self-awareness and a big ego from owner’s doom potentially successful start-ups.
- Don’t think you are leaving a nine-to-five job for the easy and flexible life of being your own boss. A start-up is a seven-day-a-week occupation and now it’s your money and reputation that are solely on the line.
- Do plan to work harder than you ever have with little return on your efforts for an extended period. Do be honest with everyone you interact with, as your reputation will ultimately be a key to your success.
To have big success as a startup, you’ll have to master all the do’s and don’ts above, and that’s a daunting task. So, before you begin, the question you must ask yourself is: “How badly do you want it?!”
This article was originally posted here on Entrepreneur.com.
The Complete How-To Guide for Starting a Car Wash
What you need to know about opening your own car wash in South Africa.
We all love to have a clean car – start your own business today
Shiny wheels, the perfectly clear windows and not a streak in sight. In today’s fast paced world we often don’t have the time to do it ourselves – and when we do, there are other things that quickly fill that time.
And so we pop off to the local car wash to have it done and ticked off the list so that we can move on to other things.
How often have you sat considering owning a car wash of your own while you’re waiting for your car to be done? If it’s more than once, then maybe you should consider taking the leap and starting a car wash business.
Contents in this guide
- How to Choose What Type of Car Wash to Open
- Steps for Registering a Car Wash Business
- Car Wash Funding Options
- Choosing a Location for Your Car Wash
- Car Wash Insurance and Liability Cover
- Car Wash Equipment and Supplies
- Car Wash Marketing and Branding Basics
- Hiring and Managing Your Car Wash Staff
- How to Set Your Prices?
How to Choose What Type of Car Wash to Open
The first decision that needs to be made involves deciding between a franchise and an independent business model. Both of these come with their own set of risks and rewards – all of which have been set out in the table below.
The decision between an independent venture and a franchise opportunity must be a personal choice based on your personality.
In general – if you are someone who likes to blaze your own trail and like to have complete and utter control over every aspect of your business, then starting a car wash, or any business, as an independent is the way to go for you.
If however, you are better at working within the guidelines and like the freedom of someone else, in this case the parent company, making the decisions for you – then starting a franchise is the way forward.
Make sure when investigating the car wash franchise you are interested in, that you choose a recognisable brand with a good reputation in order to get the full benefit of buying into a franchise.
With both franchising and independent ventures, you now also have the choice of starting a mobile car wash, instead of a fixed full time entity.
Need to know: Should You Purchase An Existing Franchise?
This also comes with pros and cons and these are listed below.
Steps for Registering a Car Wash Business
Here are the main steps for registering your new small to medium enterprise:
Register your business with the Companies and Intellectual Property Commission (CIPC). This involves lodging a Notice of Incorporation (CoR 14.1) and a Memorandum of Incorporation (CoR 15.1 A-E). These forms are available at www.cipc.co.za. They take roughly five to seven days.
Alternatively, it is possible to use a service that registers your company for you with the CIPC such as this one. These services do of course have their own fees attached.
Thereafter, you must open a bank account for your business. Depending on the correctness of the application forms, this only takes a day or two and is free of charge.
For an SME, earning less than a million rand a year – the only form that SARS requires is the IT77C that must be accompanied by a certified copy of your ID and a copy of the company’s registration documentation. The IT77C form is available from www.sars.gov.za. If your employees aged 24 – 65 will be earning more than R5 000 per month, then you will need to register for UIF and PAYE.
To register for unemployment insurance – visit www.labour.gov.za for more information on the process and for the forms.
The final step that takes place in conjunction with the step above is to cover your employees in terms of occupational injuries, diseases or death in terms of the Compensation Fund. This is optional. These forms are available from www.labour.gov.za
In terms of the permits and licenses you will need to start a car wash you need to first assess whether or not the premise you want to work from is purely residential or if it has been zoned to allow it to be a business property.
Furthermore, to operate a car wash you might need to apply for a permit under the water restriction bylaws depending on your municipality and the province you are in. For more information on the permits possibly required visit the Department of Water Affairs website.
Car Wash Funding Options
Before you even begin to look for funding, you will at this point need to create a detailed business plan. No institution will give you funding without one. For instructions on how to put a business plan together watch this video on business plans for dummies.
Sourcing funding for a start-up can be a bit of a challenge if you do not know where to go or what they are expecting of you. Here is a quick rundown of what you would need to prepare in order to encourage others, such as financial institutions, to give you the funding you need to start your venture.
Related: New Ways SMEs Can Find Funding
Broadly speaking there are four main options available to entrepreneurs starting their own businesses. These are: Loans from financial institutions, own capital, investors and grants. Grants usually come from the government and are loans that you won’t have to repay, but grants come with strict guidelines on how the funds may be used.
It is always preferable to start with the bank that you already do business with – that way they have all your information and know your financial habits and behaviours as well as your credit record. Another option is to look at credit unions.
When applying for funding here are a few tricks to help you get the cash:
- Make sure that you have a detailed business plan that shows how the funds will be used and spent. It is highly necessary for you to have a detailed knowledge of the costs involved in your business – from supplies to staff to overheads and equipment.
- Know about the industry and the market you are entering. It can be beneficial for you to do a market analysis.
- You will more than likely have to use your personal assets and wealth as collateral for your new business.
- It will show your dedication and commitment if you use your own capital to place an initial investment. In some cases, it is required for you to do so – such as with SEFA – the Small Enterprise Finance Agency who require a 10% personal initial investment.
Choosing a Location for Your Car Wash
With a fixed location – most of your business will come from ‘walk ins’. It is essential to your business that your car wash, or any service based business, is in a location that is convenient.
More often than not people do not specifically set out to go have their cars washed but rather end up having it done because it was easily available and they had the time.
Here are a few tips of choosing a successful location:
- Being near a shopping area is always preferable
- Heavily populated residential areas with high traffic volumes are better for business
- The site must be easily accessible from the road
- It must be easy for customers to get back onto the road once their car is clean
- Highly visible
- A decent size car wash has more than one washing and drying bay, there needs to be enough space for these as well as a waiting area
- Enough space for cars to queue
- It is also in your interest to pick a location that will allow for expansions as your business grows.
In South African law, verbal leases can be upheld in court, but it is always best to get the agreement in writing.
In clear and concise language that both parties can understand, make sure that your lease covers any changes you may or may not make both structurally and superficially.
Make sure you know how your rental will be calculated – it is usually quoted in Rands per square metre per month, excluding VAT for commercial and industrial properties in South Africa. Make sure you both agree on what costs will be covered by your rental and what costs you will incur (i.e. electricity).
Know under what circumstances the lease may be voided by either party. And finally, know who is liable for damages to the property or for instances of burglary.
Car Wash Insurance and Liability Cover
First off, for new owners the importance of a disclaimer needs to be highlighted. A disclaimer can exempt car wash owners from covering the costs of repairing vehicles that are damaged on their premise but they do not cover gross negligence on behalf of the business owner.
It is the responsibility of the owner to ensure that all machinery and equipment is well maintained and is regularly checked for foreign objects that could cause damage. It is also the responsibility of the owner to make absolutely sure that all cleaning products used throughout the process are car-friendly.
Furthermore, public liability cover is not enough. Property in the custody, care or control of the car wash owner is excluded from cover under the public liability section. The correct policy to have in place is the Motor Traders Internal section.
Your level of insurance coverage will have to be higher if you and your employees are the ones driving and moving the cars.
It is important that you as the owner of the car wash to have general liability insurance that covers:
- Medical expenses to yourself and your employees in case of injury
- Custody, care and control coverage
- Equipment break down
- Damage to cars – you will need to set this limit for your policy
- It is also important (especially if you have bought the property) that you have property insurance that will cover your premise in terms of theft, damage, fire, flooding etc.
Leonard Degee, who has been in the independent car wash industry for 12 years, knows that in order for his car wash to continue successfully, it is important that only management handles all the cars.
Not only does it make the insurance coverage easier and cheaper, but customers are usually happier knowing that the person who might be moving their car is more accountable.
Car Wash Equipment and Supplies
In some cases, all you’ll need is a bucket, clean water, soap and some good cloths – and the willingness to approach people to offer your services. But if you would like to open a more professional business and reach a broader market then there is some equipment that you’ll need.
If you are opening a franchise, the parent company or franchisor will be making the decisions for you. If you are opening an independent location or mobile business then you will need to source the necessary equipment.
The basic equipment needed for a manual car wash is:
- High pressure system
- Oil/water separation Unit
- Drainage unit
- Industrial vacuum cleaner with wet upholstery cleaning option
- Possibly an upholstery cleaner
- Depending on the products you choose you might need a foam attachment on your hose.
Alongside your basic equipment you will also need your location to have:
- Concrete wash bay slab
- Pump room
- Drying bay
- Ancillary Walling and Paving
The Basic equipment you will need for a mobile car wash is:
- Pressure washer hose with a compressor
- An industrial hose with nozzle and gun
- A good sized tank in the back of the truck/van or even trailer
- A generator (remember to keep extra fuel handy)
- A powerful vacuum cleaner
For cleaning products and supplies, you have a multitude of varieties to choose from. If you are inclined to go the eco-friend route, there are even ranges of waterless cleaning solutions.
The cleaning product basics you would need are:
- Car soaps
- Metal polish
- Plastic polish
- Car wax
- Glass cleaner
- Fabric shampoo
- Leather cleaners
- Detergent for the pedals
- And then sponges, cloths, brushes – preferably suitable for use on all cars.
Here are some suppliers of equipment and cleaning products:
- Eco Wash – http://www.ecowash.co.za
- Hurricane Car Wash – http://www.hurricanecarwash.co.za/about.html
- Kwik Car Wash – http://www.kwikcarwash.co.za/page2.htm
- Eco D Wash – http://www.ecodwash.com/
- Durawash – http://www.durawash.co.za/
- Dynachem – http://www.dynachem.co.za/
- Geowash South Africa (for mobile car wash systems) – www.geowash.co.za
Keep all equipment in good working condition with regular check-ups. For an easier resale, make sure you have detailed maintenance records on all equipment.
In Degee’s car wash, they purchase R3000 worth of stock every month – which covers the 360 or so cars that they clean.
Car Wash Marketing and Branding Basics
Branding and marketing are two very different concepts, both of which are highly important to the effectiveness of your business.
In order to bring the customers to you, there are a couple of things you could do. These involve connecting on an emotional level, staying relevant and flexible, committing to the community you work in, staying visible and finally aligning your marketing tactics with your brand strategy.
The biggest secret to marketing is being able to differentiate yourself from your competitors. Brand Strategy Insider is an online resource for branding and marketing and they list 50 ways to differentiate your brand.
For the car wash business here are the applicable ones:
- Expand your appeal
- Rewrite the experience
- Break away from conventional wisdom
- Be the expert
- Share values with your customers
- Engage the senses
- Focus on aesthetics
- Treat people differently than your competitors do (treat them better)
When you are implementing these values in your brand, make sure that they go deeper than just your aims. Make these things that make you different the foundation of your business.
That means engraving these changes in the mission statement and instilling it in your staff. It’s important to note that your staff are your brand ambassadors. A good service experience means that people will come back and more than that, they will tell others about you too. Word of mouth is a powerful tool in launching a new business.
Degee says that the best marketing strategy they have is their car wash’s visibility.
In terms of marketing schemes available to you as a new business owner, you have a couple of easy options:
- Keep the conversation active with your customers
- Customer databases so that you can text or email them your specials (these must be opt in)
- Advertisements in local papers and on local sites
- Always squash any bad word of mouth by proving the opposite
- Consider loyalty reward programmes to encourage repeat customers.
Hiring and Managing Your Car Wash Staff
“Good management and good staff is the most important thing,” says Degee. With your staff often handling the money, it is easy for untrustworthy staff to “slip it into their pocket.”
Make sure your staff is reliable and Degee advises that you need to keep theft as low as you possibly can.
If you open a bigger operation than just yourself, or if you are needed to expand your business as it grows, then you will need to hire staff. Because you are in the service delivery industry, you need to remember that your staff needs to treat your customers well – as do you.
To this effect, hire people that are
- Have a good sense of service delivery.
The number of people you hire depends on your expected workload. The more washing and drying bays you have, the more people you will need. You also need to consider how many days of the week you are open and how many hours a day.
Obviously, if you want to go the more automated route with a machine run conveyor system, then the need for physical staff will be less.
How to Set Your Prices?
If you are going to give a variety of different services then you should have options for all budgets and time frames to suit the biggest market possible.
As with any service industry business – you need to have competitive prices for the services that you offer. It’s important to do some market research in your area as to what your competitors are charging for which services.
Important factors to consider:
- The cost of your cleaning supplies
- Your overhead costs
- The amount of cars you can do in an hour
- The number of staff members you have
- Your working hours for the week
- Competitor prices for similar services
- The type of area you are in (residential, urban, rural, business?)
For a mobile car wash it is important to consider many of the same factors including fuel price and distance travelled. In general, the cost of a mobile car wash service is higher than that of a car wash that a patron will go to because of the added convenience factor for the customer.
When deciding on prices for a mobile business, you will once again need to do current market research into what your competitors are charging.
To end off, it is important that you and your staff do a good job on the cars that you clean. The best way to get repeat customers is to supply the ones you have with an amazing service. For an in-depth tutorial on how to professionally clean a car – watch this video.
Advice from Car Wash Pros
Degee offers a few tips for an entrepreneur starting his own car wash.
- Trustworthy staff is hard to find. Sort that out before anything else.
- Sometimes, the easiest way to bring in new staff is through our existing staff.
- A high turnover rate brings the possibility of more theft – try keeping good staff for as long as possible.
For the International Carwash Association visit www.carwash.org.
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