Laid Off, Have Family of Four Kids, What Business Can I Start?

From: Lance (Automotive Small Business Sector Research - Toughts and Perspectives)
Remote Name: 66.82.50.196
Date: 25 Jan 2004
Time: 22:49:41

Comments

Car Wash Owner Hopeful asks us about a post on our site here; He is from TX and wants to know why we feel that Building a Car Wash from scratch is a bad idea. As you know we favor property and building upgrading not, simply building from scratch. Our friend writes: -------------- Lance, saw your comments at the below site. I was a bit disappointed because I was planning to put a full service car wash in one of the growing areas of Texas. I’ve not seen a slow full service car wash with the exception of bad weather. I’d presume you have car wash experience and was wondering if you could expand upon your comments and go further into why a car wash is a bad idea. Just guessing, greater governmental scrutiny of oil that is washed from the cars, difficulty getting cheap labor because of greater focus on undocumented workers, etc. I was thinking upscale full service, yet depending on your feedback I may modify or abandon the project. Thanks for your time! C.E> Also What is NIMBY? Who has the best reputation in the industry for making the best equipment? ------------ His comments are based on this post on the Bulletin Board: ------------ http://www.parthe.net/_cwg0803/0000004b.htm . ------- "The scum of the Earth regulators who in my opinion are ruining the country and costing hard working Americans their jobs, homes and livelihoods, unfortunately are destroying the Car Wash Industry. That coupled by local NIMBY'ism and planning commissions are making building a new car wash a money pitt. Some in the Car Wash Industry believe that these regulators should be slaughtered and killed and left bleeding in the street. Although this is a little harsh, we would be willing to volunteer to clean up such a mess later on, eventhough there would be some serious issues with regulations regarding cleaning up human blood, even if well spent. http://www.ConcreteWashGuys.com . I agree that in many towns across America there are excellent areas of town where the increased growth has yielded the need for additional car washes. I also am excited about the growth near in many areas which in some cases is rather resilent even within the current recession. Here are a few equipment companies which have put business plans, online for full serve car wash to assist those who want a car wash. Also see the link below with the IRS. I suggest if you want a Coin-op type car wash that you discuss the numbers of self serves profits with companies like http://www.SuperWash.com . Here is the link of the IRS and car washing; http://www.irs.gov/pub/irs-mssp/carwash.pdf . Also check out Hanna Sherman Car Wash Manufacturers; http://www.hanna-sherman.com/resources/business-plan/Carwash_business_plan.pdf . Robert Roman also an expert in car washes has a most excellent book out there: http://www.hanna-sherman.com/resources/business-plan/ . I hope this information is of value to you. I cannot vouch for these figures and feel that the IRS business plan is full of falsehoods, misrepresentations and would be considered false advertising if ever used by and actual business selling anything in the car wash industry. But Government agencies often lie and get away with it as everyone in business who has to deal with such agencies on a regular basis can attest to. You may also wish to think about what you are getting yourself into with regards to over regulations in the car washing business. It is not quite as easy as putting up a building and making money. Coin-Op car washes can cost upwards of 300K just to build. Here are just a few of the regulations concerning a simple business model like a car wash: http://www.parthe.net/_cwg0703/0000004b.htm . I applaud all those who try to start their own business. Best of luck attempting to provide jobs to America and help our economy get back on her feet, chances are you will do nothing more than pour your own hard earned money into a bottomless pit. You can thank your liberal politicians for these issues preventing you from attaining any sense of Happiness or realizing any American Dream of owning your own business. Any comments on these truths email me at: Lance@carwashguys.com . ------------------- Here is our response to this question as I feel many could benefit from the answer. ----------------------- Dear C.E,> Maybe you should read this: http://www.parthe.net/_cwg0703/0000004b.htm . And go to this site: http://www.carwashguy.com . Just because a car wash is busy does not mean it returning on investment to your expectations. Do not confuse a busy car wash with profitability. Consider the all the costs you cannot see? $300K for building, $250 Equipment, In Dallas the property in the Suburbs for instance you cannot touch a good location for under $600K. TX is one of the best states to do business in as long as you are an Aggie or have an inside track. TX is a lot about who you know and how you portray that as you probably already know, it is a great state to do business in. Some of the over regulation issues are not apropos in TX, however other "Good Ole Boy" issues behind the scenes still are if that makes sense? Although this is also changing in many areas. The ten gallon hats and no cattle crowd still abounds in many parts, so you have to pay attention. NIMBY: "Not In My Back Yard" syndrome. Go sit in on a local planning commission some time and listen to the local Sierra Club whiner with more time on their hands than brains in their cranial compository. There are no good manufacturers in the industry, only hype the mechanical nature of the equipment means more chances for break downs and problems, I have seen car washes never open because thy could not get the equipment to work. Mostly because the buyer kept chiseling price. Before I could advise someone not to build a car wash, I would certainly need to hear more. Perhaps you might call me and explain your plans? Location, etc, so I can do some research for you. In Dallas, Austin, San Antonio and Houston Suburbs, there are many closed gas station properties vacant without any environmental problems from the ground water issues from old fuel tanks still underground for between $250K-400K because of the FTC ruling for large Oil Company merger to divest in some locations. So there maybe some good locations. After re-reading the article, I see I was on one of my tirades regarding the insanity of over regulations in this country while simultaneously screaming "We need jobs" which is hilarious because we had jobs remember? Some other thoughts: http://www.parthe.net/_oilchangeguys/00000076.htm ; http://www.parthe.net/_oilchangeguys/00000064.htm ; http://www.parthe.net/_oilchangeguys/00000063.htm ; http://www.parthe.net/_oilchangeguys/00000060.htm ; http://www.parthe.net/_oilchangeguys/00000041.htm ; http://www.parthe.net/_cwg1003/00000014.htm ; http://www.parthe.net/_cwg1003/00000059.htm ; http://www.parthe.net/_cwg900/00000132.htm ; http://www.parthe.net/_cwg900/000000db.htm ; http://www.parthe.net/_cwg900/000000bf.htm ; http://www.parthe.net/_cwg1202/00000021.htm --------------------- There are many considerations in setting up a car wash. -------------- After reading this he writes --------- Uh, so much for a low overhead business. Know how a guy can support a family of four running his own business? Thanks for the feedback. C.E. ------------------- So here is our reponse to his question, what can a man do to feed his family? Especially in Houston with lay-offs last year coming from Enron, Arthur Anderson, Continental Airlines, the HP-Compaq Merger, the Mergers with the Large Oil Companies there? Houston also got hit due to the Telecom Crash. Houston which is known for the Boom and Bust Cycles of the Oil Industry now had to deal with the market sector rotations of other indusatries which had made up the difference in the supply of the labor there. Not to mention the simultaneous corporate fraud shakedown by regulators and the melt-down of Enron which was Houston based. So here is what we can offer for those looking at self-employment for a way to continue to raise a family and move forward. --------- C.E.,> I am by no means a dream wrecker, you can do anything you want in this country and if you pursue such, your personal will can make anything work, well at least this has been my experience. If you are looking for a heavy investment type business, remember that the SBA will want like most banks 15%-25% down and some collateral such as your home. Your risk-reward adversity will change drastically as you start to consider these collateralized items and your four kids who need food on the table, health care and soccer shoes. You could find an investor either a partner or Angel type and go and secure one of those closed gas stations set up a detail shop and do wholesale detailing in the winter and hand washing and detailing in the winter. Or start a mobile detailing business which could also work in parking structures away from storms in Large Corporations or in Car Dealership bays. http://www.DetailGuys.com . Wholesale detailing is hard work, but there is a ton of it. Are you in Houston? What side. Met a gnetleman who has an Oil Change Facility which he claims does nearly 80K per month and out front on the corner of HWY 8 and Westhiemer he was looking to replace the hand wash guy out front, offered us a program to wash his customer free in trade for rent of space for 5 car stalls and an enclosure tent set up. If things got good and you could find an investor and move to the shopping center next door, I believe that pad out front of Barnes and Noble there is a perfect place for expanding such operations with a building and reclaim set-up. All hand washing and detailing and far enough away from competition to do well. A hand wash location done a little more professionally than is typically done in Houston is low cost entry and faster to build. Or you could attempt a mobile operation there on any side of town. http://www.CarWashGuys.com , with fleet truck washing; http://www.TruckWashGuy.com . Maybe aircraft washing? http://www.AircraftWashGuys.com . Mobile fleet Oil Changes on-site is another idea? http://www.OilChangeGuys.com . How about Window coating and treating? http://www.WindowWashGuys.com . There are so many choices for running a business out there, not just with our company but with any franchise business. Let me know where you are in town or which suburb. Lots of different mixes would work in Katy, West Houston, Woodlands, Clear Lake, Sugarland area, etc. While not all are appropriate to every market or demographic, some would be very much appreciated by the customers who wish and desire such services. I have seen other businesses such as Got Junk Inc. that seem to be a good business from what I read. Here are some places to go to check out franchise offerings of various types: http://www.Franchising.org . The choices are infinite, you have to ask you self what you really want to do and then build towards that? Customers vote with their dollars for those services they wish to spend money on. If you want to be one, you have to look at the customer and ask them "what do you want?" What do you do now? "well what do you want to do?" What would you enjoy doing and is that something your customer wishes to spend money on? ------- If you are laid off and looking for something to do, a small business may be one solution, it is not the easiest solution, after all it is hard work, but it could be the answer you seek. Lance@carwashguys.com

Site hosted by CCG

Site design by CCG Studio

DISCLAIMER:
Although we exert control over all articles written by our staff and consultants, we are in no way able to assure the accuracy of any content generated by our readers. Any information or advice provided by our readers should be used cautiously, and should be considered as an opinion of such, and not the views, ideas, opinions, or advice of Washguy.com. Washguy.com., its staff, and consultants shall in no way be held liable or responsible for any false or misleading information or injurious advice obtained from our readers, including any information posted to this Bulletin Board forum. Any information or advice obtained from other readers through Bulletin Board postings shall be used at the reader's own risk. The Bulletin Board forum functions as a discussion group for the exchange of views, information and opinions on issues related to the Car Wash Guys, Franchising and their associated topics. Washguy.com, its staff, and consultants will not be held liable for any incidental or consequential loss or damage sustained as a result of this information or advice. No user shall be entitled to claim detrimental reliance on any views received from the staff, consultants or other readers. By using this Bulletin Board and it's related forums, you agree to indemnify and hold Washguy.com, its staff and consultants harmless from any claims arising as a result of your use of the information or materials you download from or upload to the Bulletin Board.