NYSCWA Venus vs. Mars - Fall 2009

When I read the question my first thought was are you nuts! It was yet another day of doom and gloom on the news about the financial state of our economy and when the “experts” think we will be out of the recession. As I pondered the best answer to this question I remembered my first day in college when my business class professor asked the class the meaning of the word entrepreneur. Of course, the students were giving answers like “owner of a business” but that was not the answer he was looking for. His meaning was “risk taker.” How true that is. When a person leaves the security of a 9 to 5 salary to own his own business he or she is surely a risk taker. This may be the perfect time to get into the carwash business if you do your homework and are well capitalized. You just need to be very smart in most aspects of business as the first few years may be very difficult. But as the economy turns around you should be in a good position.

As we expanded our family business we tried it both ways. At one location we picked a piece of ground and constructed the wash, and then we also purchased two rundown carwashes and did a major rehab to rebuild the business. Personally, I feel the second way was the easiest way as we could rehab the washes quickly so we could open the doors and start seeing a good stream of income. Building from the ground up is a long process with permits and zoning issues even before you can put the shovel in the ground. I also believe that there are many washes out there with owners looking to retire and with the down slide of the economy, you may get a really great deal on an existing wash that needs a little TLC. My biggest warning is to do your homework! Over the years I have spoken to many people who want to get in the carwash business and the only thing they know is the long line they have to wait in after a snowstorm. Trust me, there is so much more to it. Go to the every association meeting, trade show and convention you can. I truly believe if you really take the time to do your homework and are well capitalized this business can be great! And if you can figure out how to control the weather, we will all love you!

Whether or not to purchase a new business is never an easy decision. Multiply that by the bad economy and the high prices that carwash businesses go for and you can understand the resistance some may have. But it seems like nowadays everyone is trying to get into something else. We have all heard the saying, “The grass is always seems greener on the other side.” In this case, I think it depends on what it’s like on the side you are currently on.

As I have spoken about in previous columns, I really believe that this business is more driven by the weather, both positively and negatively, more than anything else. The past couple of years have certainly been down ones here in the Northeast, but I think most would agree that the main reason for that has been the weather. Proof of that has been this current year where for the most part we have had favorable weather conditions and volumes seem to be up.

So, if you are looking to invest into the carwash industry I would not let the economy scare you. I would certainly take a long look at what you are currently doing and decide if the grass truly would be greener for you in the carwash industry. I would also do tons of due diligence and be weary of listings that show huge profits with nothing concrete to back it up.

I would also warn you that you need to have a lot of patience with the weather because it can be frustrating at times, but you need to be prepared for when it does cooperate. This industry can be lucrative in both good times and bad. However, I think the biggest misconception new investors have is that it is a good absentee business. In some cases, it may be true but certainly not in the full-service sector of the business. Be prepared to put time in and to offer your customers the best service possible. This is a service business and that is what the focus should always be on.