It's a sunny Saturday afternoon and you are standing across the street from Bubbly Bob's self-service carwash. You like what you see.

The wash bays are full and people are still waiting to get in. The in-bay automatic has a line four cars long. Customers are busy feeding quarters into the vacuum and vending units and a uniformed attendant is walking around helping people and picking up trash.

You imagine the task of counting a seemingly endless pile of coins and you say to yourself, "Wow, this looks the business for me!"

At first glance, the self-service carwash business may look like a no-brainer to the first-time investor - certainly better than a capital and labor intensive operation such as a full-service carwash or an express lube, right? However, this business has its own dynamic to contend with.

Owning and operating a self-service business commands the same type of dedication and attention to detail that goes into any successful venture. It is definitely not as easy as it looks and the costs can be considerable. Therefore, before you wrestle with decisions such as what to buy or where to build, it makes sense to develop a business model of what you want.

The modeling process described below is designed to help you determine the nature, choices and direction of your activities toward goal achievement. The outcome can serve to help develop a structure to test the cost feasibility of your model before you spend any real money or it can be used as the basis from which you can develop a formal business plan.

Regardless of the direction you choose, careful planning can serve as a valuable tool to help you avoid the "build it and they will come" syndrome.

Developing a vision

The first part of the modeling process involves developing a vision of your business. In addition to developing a mental picture of what you think you would like to have, you will need to ask yourself some serious questions.

For example, why do you want to get into the self-service business? Do you know someone who has succeeded in this business and desire the same? Conversely, have you talked to anyone who has a location that hasn't measured up to their expectations?

Are you going to be a single or multiple location owner? Do you want carwashing to become your vocation or do you want to be an absentee owner and pay someone else to handle the day-to-day work?

What's your mission?

The next step, and possibly the most difficult, is to identify and examine your company's mission. Your mission should include a clear, written, and explicit statement of what your company is dedicated to and a listing of your goals and the products and services you plan to offer. Even at this stage, you need to consider issues related to consumer needs, price structure, promotional processes and production activities.

If you are going to be dedicated to the self-service carwash business, spend a considerable amount of time researching this segment of the industry. For example, if you are considering owning and operating multiple sites or having additional profit centers such as self-service with an in-bay automatic or express lube, the demands and requirements will be significantly different than that for a single site or single purpose facility.

Going out and learning about the business first-hand will provide you with the opportunity to acquire invaluable knowledge on functional areas such as production and operations management, site and location characteristics, risk and time management, equipment and chemicals, maintenance, marketing, vendors, etc.

Do it with purpose

If you want to build a new facility, you will need information on the availability and cost of land, property taxes, demographics, impact and permit fees, construction, design and engineering costs, equipment and installation costs, operating expenses and potential regulatory impacts.

If you choose a full service equipment distributor to lead you through the project management process, thoroughly check out their references and those of the general contractor.

If you are interested in buying a franchise that will provide you with a predetermined business model, obtain the franchiser's prospectus and thoroughly investigate the conditions, scope and terms of the contract. If you want to buy an existing business, you will need information from the disclosure of financial statements, sales tax records and copies of utility bills.

State your objective

Develop goals and objectives for both you and your business.

If your goal is to be a multiple site operator, you will probably want to develop a personnel plan and hire staff unless you want to end up spending the majority of your time running around attending to units.

Conversely, if your plans are to get rich from operating a single 5-bay site, you may want to reconsider your business model. For example, the Professional Carwashing & Detailing 2000 Self-serve Survey found the average estimated personal income for owners was $35,200. Regardless of the direction you choose, structure your business so that you have both the time to manage it effectively and attend to your family and personal needs.

A question of policy

Policies are standing guidelines that serve as boundaries around which your decisions can be made.

Product policies include how you are going to layout your site so that progression and movement about the property is optimized, what type of equipment and chemicals you will use and how you will control your inventory. Marketing policies describe your product and services, method of pricing, advertising and sales promotion and your hours of operation.

Also develop policies that describe how you will finance the business, what your fixed and variable costs are and the method that you will use to monitor and evaluate financial performance. If you employ staff, develop a personnel plan including recruitment and hiring practices, job descriptions, training and safety programs and standard operating procedures. Develop policies to address your relationship with suppliers and vendors, including the terms and conditions of purchasing inventory.

A strategic approach

It is extremely important to ensure the "product" you offer is of high quality and provided in a consistent manner. Unlike a full service carwash, you will only be able to control the process inputs.

For example, one of your primary concerns will be to maintain the integrity of your high-pressure cleaning system. This can be achieved by determining water temperature, water quality in terms of hardness and pH, operating pressure and flow rate, nozzle size and chemical that is suitable for your particular geographical area and environmental conditions.

This level of detail will also be needed to address the other aspects of your business. The objective should be to provide the opportunity for your customers to achieve the highest wash quality possible in a manner that minimizes operating costs.

In-bay automatics at self-serves are becoming extremely popular and are a good way to maximize revenue. However, they will raise the complexity of your model to the next level in terms of capital investment and additional labor and maintenance. If you decide to have an in-bay automatic, weigh the benefits and costs of having the site attended, having a maintenance and service contract and using a wastewater recycling system.

Organizational structure

The type of organizational structure best for your business is a personal matter that should be based on tax and legal considerations and the level of risk you are willing to assume. This should only be determined in consultation with your accountant, attorney and family.

On what scale?

The scope of your project should be dictated by an income objective rather than a preconceived investment level or property size.

For example, if you desire a personal income of $100,000, you will probably want to structure your model to include several sites or having a single site that is large enough to accommodate additional profit centers that have the capability of generating sufficient revenue. In addition, do you want an economical design that features function over form or do you want something more elaborate and expensive?

Management

Decide how and to what degree you will manage and participate in the day-to-day operation of your business.

If you plan to be the operator, you will need to develop skill sets to maintain the facility and devote a sufficient amount of time to attend to both the needs of your customers and the site. This will include activities such as checking equipment and chemicals, routine maintenance and equipment repairs, general housekeeping, emptying and filling changers, re-stocking vend units, record keeping, etc.

If you choose to be an absentee owner, you will need to employ staff or a manager capable of handling all facets of your operation. You may want to consider additional cash incentives or an equity arrangement to recruit and retain high quality and trustworthy help. Also consider developing a contingency plan to address the possibility of catastrophic events. For example, who will tend the store if you become injured or disabled?

Robert Roman is a long-time carwash operator and currently is a small business consultant based in Clearwater, FL.

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