Car Wash System Brainstorming

# Car Wash System Brainstorming ## Table of Contents [TOC] ### 1. What is our business idea? Do we have a unique selling proposition? The idea is to create an automated express car wash system in Cameroon that does not require **`any`** human interaction. This means that all the work is done by programmed machines and the customer has to pay in advance so that the machines can be started accordingly. The whole process can be described as follows: 1. The customer selects the type of washing service they want at a POS (Point of Sale). 2. He then pays either by credit card, in cash or on abonnement. This process is also handled via the POS system. 3. After he has paid, the gates open and the machines are released. 4. Finally, he drives through a tunnel where a series of brushes, sprayers and dryers clean the car. This can be touchless or soft-touch, depending on which type the customer has chosen. 5. In addition, there are several vacuums available for customers to use to clean the inside of their cars. A small fee is charged for the use of the vacuums. What makes this service special is that it is fully automated, very fast and provides a thorough car wash. Currently, there are many car wash services in Cameroon, but none of them are automated and therefore still require human interaction. The problem with this approach is that it requires good staff who have good experience with manual car washing. The other problem is that it needs on-site supervision and often cannot be open 24 hours a day. Our concept of car washing solves all these problems as no staff is required and the site is always open 24 hours a day. Another big advantage is that this will be a completely new way of washing cars across the country. Supervision will be done remotely as all data will be stored in the cloud, making it easier to control and analyse. For this reason, it will be an innovation in which new technologies will be used. ![](https://i.imgur.com/ZKK9x4E.jpg) ### 2. Who is our target audience? Is there a demand for our service? The main target group is the citizens of Cameroon who own a car. The demand for car wash services is very high and that is why there are currently many manual car wash services. Consequently, there is a big emerging market with many gaps and improvements. ### 3. What is the size of the market? Is it large enough to sustain our business? Since demand is high, there is room for new investors who want to get into this business. After all, there are a lot of cars in circulation and they all need to be washed somehow. So an automatic express car wash could/would be very useful and attractive. Besides, there will be a lot of new cars in circulation in the next few years. ### 4. Who are our competitors? What are their strengths and weaknesses? How can we differentiate ourself from them? Our competitors are manual car wash services. Their advantage over us is that they are already well established and have regular customers. However, their disadvantage is that they wash all cars by hand and therefore need more time to wash a car than a machine. Moreover the design does not look very nice compared to our automatic express car wash. ### 5. What is our business model? How will we generate revenue? Our business model is very simple. Customers pay for the service we provide, which means they have to pay to get the machines released. Also, the customer has the option to buy an annual subscription so they don't have to use their Mastercard or cash every time they want to wash their car. ### 6. What are our start-up costs? How much money do we need to get our business up and running? In order to set up the business we need the following things: - **`POS or Pay Station`**: This will include the software and hardware used to control and manage the car wash system, as well as payment systems for customers. The cost will depend on the specific features and capabilities of the system. Here we have three options, either build one ourself but this will require a lot of time, cost and effort. Or we could just buy one whilch is also very costly. After checking the price this costs approximately around ***33k€ (~22M FCFA)***. More infos on this can be found here: https://www.dencartechnology.com/#products or https://washify.com/. The last option would be to buy a basic package that may cost around ***5k€ to 10k€ (~3.5 - 6.5M FCFA)*** but this would require a cashier. - **`Site preparation and installation & Car wash bay structure`**: this is the physical structure that houses the washing equipment and protects it from the weather. The cost can vary considerably depending on the size and materials used. Assuming we use an area of ~4264 square metres (mètres carrés), we would first have to acquire the land and then build the site itself. Based on current estimations, the cost of the land alone could be around 30k€ (~20M FCFA) and the cost of the building could be around 20k€ (~13M FCFA). The total for the washing station structure will be about ***50k€ (~33M FCFA)***. More infos about site layout sample can be found here: https://sonnysdirect.com/prd_car_wash_equipment_resources_site_layout_samples - **`Tunnel wash equipment`**: this will include the machines and systems used to clean the car, such as brushes, sprayers, and dryers. The cost will depend on the type and quality of the equipment, but a basic package may cost around ***30k€ to 50k€ (~20 - 33M FCFA)***. For more infos visite: https://sonnysdirect.com/prd_car_wash_equipment_components or https://sonnysdirect.com/prd_car_wash_equipment_tunnel_systems_mid - **`Water treatment system`**: this is necessary to filter and recycle the water used in the car wash system to reduce water usage and costs. The cost can vary depending on the size and type of system, but a basic system may cost around ***5k€ to 10k€ (~3.5 - 6.5M FCFA)***. - **`Plumbing and electrical systems`**: these will be necessary to connect the car wash equipment to water and power supplies. The cost will depend on the specific requirements of the site and the local labor costs, but a basic installation may cost around ***5k€ to 10k€ (~3.5 - 6.5M FCFA)***. - **`Lighting and signage`**: adequate lighting and signage are necessary to guide customers through the car wash and ensure their safety. This can include overhead lighting, directional signs, and warning signs. The cost of lighting and signage can vary depending on the size and complexity of the system, but a basic package may cost around ***2k€ to 5k€ (~1.4 - 3.5M FCFA)***. - **`Safety and security systems`**: safety and security systems are necessary to protect customers and employees during the wash process. This can include emergency stop buttons, safety interlocks, and security cameras. The cost of safety and security systems can also vary widely depending on the size and complexity of the system, but a basic package may cost around ***5k€ to 10k€ (~3.5 - 6.5M FCFA)***. Overall, to have an automated express car wash service up and running it will cost approximately ***170K€ (~112M FCFA)***. ### 7. What is our break-even point? How long will it take for our business to become profitable? Normally, this service generates a lot of money, depending on how many cars the machines can wash per day. Since it is a new system, we will not have many customers in the beginning, so we have to do some marketing first. But let's assume that the machines can wash at least **20 cars per day**. That gives **20 * 28 = 560 cars for a month**, and if we wash one car for `1500 FCFA`, that is **560 * 1500 = 840k FCFA per month**, which gives **840k * 12 = 10.080.000 FCFA per year**. If we can only wash `10 cars per day`, that `is 10 * 28 = 280 cars per month, 280 * 1500 = 420K FCFA per month, 420K * 12 = 5.040.000 FCFA per year`. To reach the money invested, we would need **12 years**, as we will have 10.080.000 * 12 = 120.960.000 FCFA at the end of the 12th year. At 10 cars washed per day, we will reach the money invested after 24 years. **`In summary, the business will become profitable from the 13th year if we manage to wash at least 20 cars per day, or from the 25th year at 10 cars per day.`** ### 8. What legal structure should we choose for our business? TODO: Must be treated accordingly at a later stage ### 9. How will we market our business? What channels will we use? As far as the current channels available to us are concerned, we could start by using social networks such as facebook, instagram, tiktok and also use the "bouche à bouche" method. ### 10. Who will be part of our team? What are their skills and experience? TODO: Must be treated accordingly at a later stage ### 11. What are the risks involved in starting this business? How can I mitigate them? Since this will cost a lot of money to set up and run the business, the biggest risk would be that the used machines would not last long and we would first have to hope that there are engineers in Cameroon who can repair them. If not, we would probably have to buy new machines, which would cost us a lot of money in addition. This problem could be alleviated by buying very good machines, and we should make sure that we have technicians who can monitor the machines and repair them if necessary. Here are some of the other most common risks associated with an automated express tunnel car wash systems: - **Equipment failure**: automated tunnel car wash systems rely on complex machinery and equipment, which can break down or malfunction. This can cause delays, cancellations, or even damage to customers' vehicles. Therefore it is very important to have very good machines, technology and technicians to monitor and repair (if needed) the machines in order to avoid or mitigate the impact. - **Damage to vehicles**: even with the most advanced technology, there is still a risk of damage to vehicles during the wash process. This can happen due to equipment failure, operator error, or environmental factors such as rocks or debris on the car. To mitigate or avoid this problem, constant monitoring of the machines is strongly required. - **Safety hazards**: automated tunnel car wash systems involve moving machinery, high-pressure water, and other potential safety hazards. It's important to have proper safety features in place, such as emergency stop buttons and warning signs, to minimize the risk of accidents. - **Cybersecurity threats**: as automated car wash systems become more connected and reliant on technology, they also become more vulnerable to cybersecurity threats such as hacking or data breaches. It's important to have proper cybersecurity measures in place to protect sensitive customer information and prevent unauthorized access to the system. - **Environmental impact**: car wash systems use a lot of water and chemicals, which can have a negative impact on the environment if not properly managed. It's important to use eco-friendly products and recycling systems to reduce the system's environmental footprint. To summary these risks can be managed through proper equipment maintenance, employee or technicians training, safety protocols, and environmental management practices. It's important to regularly assess or evaluate and address potential risks to ensure the safe and efficient operation of the automated tunnel car wash system. ### 12. How will we measure success? What are our long-term goals for the business? Measuring the success of our business will depend on several factors and metrics that can be used to measure the success of our business: - **Revenue**: this is the total amount of money the business earns from sales. Tracking revenue will help us determine whether our business is generating enough income to cover expenses and make a profit. - **Profit**: this is the amount of money the business earns after deducting all expenses, including operating costs, taxes, and other fees. A positive profit margin will indicate that our business is profitable and generating a return on investment. - **Customer satisfaction**: this metric measures how happy our customers are with our services. This will be measured through customer surveys, feedback forms, or online reviews. High levels of customer satisfaction could/would lead to repeat business and positive word-of-mouth recommendations. - **Market share**: this refers to the percentage of total sales in the car wash industry that our business holds. Tracking market share would help us understand how our business is performing relative to competitors and whether we are gaining or losing ground in the market. - **Return on investment (ROI)**: ROI measures the amount of return we get on the money we invest in our business. This includes investments in equipment, marketing, and all of the other investments we would have to make. Tracking ROI will help us understand which investments are generating the highest returns and where we may need to make adjustments. Our long-term goal is to dominate the carwash industry across the country and Africa in general. This would be done by reinvesting our profit to open as many automatic express car washes as possible in strategic locations. ### Useful links to get a better idea of how automatic car washes work - Car wash systems manufacturers providing all equipment needed to build an automated car wash system - United States (USA) manufacturers - WashCard Systems: https://www.washcard.com/ - Unitec: https://www.startwithunitec.com/ - ICS: https://www.icscarwashsystems.com/ - Germany manufacturers - Otto Christ AG: https://www.christ-ag.com/ - WashTec AG: https://www.washtec.de/en/products/payment-systems/ - Ehrle GmbH: https://www.ehrle.de/en/products/car-wash-payment-systems/ - Tunnel car wash systems - https://www.youtube.com/@christwashsystems - https://www.youtube.com/watch?v=Be9xw5W3JXg - Car wash pay system (POS) - https://www.youtube.com/watch?v=op5G6FoSMIg - https://www.youtube.com/watch?v=9pPYMJKFmQs - https://www.youtube.com/watch?v=Q_frc2KA1rA - https://www.youtube.com/watch?v=GmBDD2XxQxs - Other types of car wash systems - https://www.youtube.com/watch?v=-kh4bcvlauU - https://www.youtube.com/watch?v=cizbCeB7FFE - https://kkewash.com/en-int/trolley-car-wash-equipment - Seminars - https://www.youtube.com/watch?v=w_92daZzRik - https://www.youtube.com/watch?v=tA4IFrChSig - Car wash systems in Abidjan(cote d'ivoir) and cameroon - https://www.youtube.com/watch?v=Qe2Szmyj5PE - https://www.youtube.com/watch?v=r02toROnFxs