Good Record-keeping Helps New Business Owners Avoid Tax-time Headaches
Why The Car Wash Business Is Harder Than You Think
Terra Fields
According to an excerpt from Why Start a Car Wash, the car wash business is a $24 billion industry. This figure will wet any entrepreneur's appetite, but don't get ahead of yourself just yet. You have probably considered opening a car wash business of your own while waiting in line at your local car wash. Your mind has done the math. Every driver pays between $5 to $25 and the projected figure the owner gets per month, and then per year is enough to make you view the car wash as a healthy cash cow. It doesn't help either that the entire car washing process seems automated.
If you are thinking of opening a car wash, here is what you should know.
The Cash Cow Myth
You will definitely see dozens of cars in line on a sunny Sunday or Saturday afternoon. The key word here is sunny. Don't expect to see the same line on a rainy day or on a weekday. You will make a killing, but you will be at the mercy of the weather and the time of the week.
People will be content to let their cars stay dirty because it doesn't make sense to wash it when it will get filthy in a few days. Prepare yourself for dry spells.
An Automated business
The Why Start a Car Wash article further stipulates that, the car wash business is not a venture where you can just push the autopilot button on and stand back and let it run itself. The equipment used for wax, buff, rinse and spray may reduce the hands-on aspect a tad bit but gadgets do and will break down.
A situation may arise where a customer is not happy with the job done and demands someone to rewash it. The business needs basic supplies, for instance soap and it will be your job to make sure that you do not run out. In essence, you will need to give this business your undivided attention.
The silver lining
Before you get off the car wash business bandwagon, consider this: People make a lot of money washing cars. The truth is, so long as there are cars, there is always an opportunity to make money, but like all businesses you need to invest your money, time and energy. According to a survey conducted by Auto Laundry News, 37 percent of car wash operators have less than five years of experience in the business. For more help or for questions, contact a company like Airport Chevron Service to learn more.
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I have been a business owner for years, and I want to share some tips for success with new entrepreneurs out there who are struggling. I have had my share of business ups and downs, but there was one lesson that it took me way too long to learn: Good financial record-keeping year-long keeps tax time from being so stressful. During my first year in business, I kept most business expense receipts, but when tax time arrived, I found out that I needed to save much more than just those receipts. Thanks to technology, I was able to recover most of the documentation I needed, but it was a huge headache. I quickly invested in good record-keeping software and it made tax time much less stressful during the following years.