Making a car wash business plan is the most important thing that you need to do if you intend to use a bank to fund your new business.
Your business plan should spell out exactly how you are going to use the banks money. Your plans purpose is to show the bank that you are not just a flake who is going to borrow their money and blow it all, plus the focus you gain from making a plan will give your business a much greater chance of success.
Your car wash business plan should include the following 6 steps for a bank to take you serious:
# 1 An overview of your business:
This is a mission statement or summary of what your business intends to do. An overall picture of your business. The bank needs this big picture to get a clear image of what your plans are. This overview is just to give an overall feeling about your business and is not meant to go into details. It is just the introduction to get the process started.
# 2 Describe your business:
Where is your business going to be located? How big a business are you planning? Are you going to be needing employees? What type of car wash are you going to start?
# 3 Marketing plan ::
What do you intend to sell and how are you going to go about selling it? Why did you choose a coin operated self serve over having attendants? What is your plan for attracting new customers? Are you in a busy area where do you need to advertise, or do you plan on running coupon program or other forms of advertising? How much competition is there in the area?
# 4 Management of your new business ::
Related Posts Sep 10, 2024 Sep 9, 2024 Sep 9, 2024What do you bring to the table? Or are you planning on hiring a manager to take care of your business. What credentials does you or your manager bring to the table? You do not need previous car wash experience but being able to show management experience in another industry will help to give confidence to the loan manager in charge of your application.
# 5 How will day to day operations be handled:
Are you going to need employees or are you going to be self serve? How many employees do you plan on having? A car wash is a cash business so you will have to show the bank what your plans are for how you are going to control the collection of cash and who is going to be responsible for collecting it.
This is where you list the detail of the day to day duties that need to be performed. Being able to list in detail what needs to be done daily will go a long way in giving the bank confidence in giving you the loan.
# 6 Future earnings:
If you did all the above steps in detail then the bank has a pretty good idea if they want to give you a loan or not. Now you just need to give them the logical proof that they need to accept the emotional decision that they already have made. The bank will want to see if you have realistic ideas of how much the business is going to make and if your new car wash can cover the cost of interest on the loan you are seeking.
Determining how much you are going to make in the future, at first may seem really difficult. But it does not have to be if you just follow a few really simple steps. One check with industry trade journals. There are magazines that cover the car wash industry and give you good data on what a new car wash can expect to make. Even easier, is just contact car washes that are already established in different cities and ask them how much they made when starting out.
Many established car wash owners would be honored that you asked them for help and will be more than willing to give you tips on your car wash business plan.
Your car wash business plan does not have to be complicated. If you follow the 6 simple steps given above to make your plan, you will find that your bank not only will give you the loan that you are seeking but will gladly look forward to doing business with you on future projects.
