Are you interested in starting a car wash business in Kenya? This article will provide you with the basic information and knowledge on how to start a car wash business in Kenya in 2021.
I will take you through the processes of what you need to consider before opening a car wash, including choosing the right location, getting necessary licenses and permits, hiring staff, and buying equipment.
So let’s get started.
How to start a car wash business in Kenya
Here is how to start a car wash business in Kenya:
1. Perform a Market Research
Perform Market research to understand what the market needs. Don’t be a fool! Understand clearly what you want to do.
What is the population of your region? How much revenue has been generated from the car wash business in the past years? You can access these statistics online.
What type of people will it attract? It is one of the essential steps. What type of people will come to your car wash? If it’s something that you can’t easily clean, then this is something you need to consider before opening a car wash.
Where can I get information on how to start a car wash business?
Once you have gathered these details, you are well informed to start a car wash business in Kenya.
Doing your market research is essential for your success! It’s not just about choosing the right location, but also understanding what products you should offer and what prices you should charge them.
2. Choose the Right Location
Many factors determine where you can locate your car wash business. One of the most important factors is how accessible your location is. It would help if you chose a spot ordinary people can easily reach to keep customers coming back.
How do I select a site for my car wash?
It would also help to look at the surrounding competition before finalizing a spot for your car wash. You don’t want to set up a car wash business next to a competitor because it will significantly affect your sales.
How can I find the right spot for my car wash?
Here are some factors you should consider:
- Who is the competition, and how close are they?
- How much traffic does the location draw in each day?
- How much parking is there?
- Is your car wash easily accessible to customers?
- How accessible is the location in terms of access by road, public transport, and nearby amenities?
- How can I find an excellent location for my car wash business in Kenya?
Once you have selected your region, it’s time to decide where precisely to locate your car wash business. Make sure that it’s easily accessible by the public and near parking facilities.
3. Identify the type of equipment you need to run a car wash business in Kenya
To operate a car wash business, you need to have all the equipment. The type of equipment depends on what kind of service you are offering. You should identify from the beginning which tools and services your customers would like to have in your car wash.
What am I supposed to buy? What do I need to run a car wash business in Kenya?
Some things you might require are:
- Car washing machine
- Vacuum vacuum pump
- Cleaning solutions like shampoo, polish, and other cleaning materials.
- Other equipment may include brushes for pre-cleaning, drying tools.
If you are open to a small car wash business, buying car wash equipment will be the most significant expense you encounter. If your budget is tight, you can always choose to buy second-hand equipment, but make sure that it’s in good condition and functional before buying.
Your car wash business plan should cater to the costs of purchasing equipment.
4. Identify the products and services to offer
Yes, you will wash cars, but what products and services will you offer? In a car wash business, you can choose to provide –
- Car Washing Services
- Touch-up paint for cars
- Rust removal services
- Polishing and Waxing of Cars/Bikes
- Leather restoration and protection by using cleaning agents.
5. Staff & Management
You will need to hire the right people to run your car wash business. When hiring your staff, look at their skill level and ensure appropriately groomed. Which skills do I require from my employees? To run a successful car wash business, hire the right workforce.
Your car wash business plan should include the costs of salaries and other day-to-day operational expenses.
Some of the day-to-day operations of a car wash involve:
- Washing Cars
- Communicating with customers
- Security, monitoring the facility and customers’ vehicles
- Managing Staff
- Marketing and advertising
Getting your brand out there is one of the most important things you need to do. You may go for traditional modes of marketing such as print, banners, and flyers, but online marketing has proven to be a profitable avenue for many businesses.
Attracting customers through SEO/SEM Marketing in Kenya
Social media marketing is another digital channel that has helped many businesses get the word out of their products or services.
Advertising on social media has proven to drive more traffic, increase sales and generate revenue for many small businesses. The key is to have a well-thought-out digital marketing plan covering all the relevant channels in your local market.
You should also set up Google Maps and other location-based applications to make it easy for customers to find your car wash business.
Set up a free listing on Google My Business and Bing Places for your car wash business. This will put you ahead of the competition!
The success of your digital marketing efforts depends on where you focus your activities, so spend some time reviewing the search volumes and competition levels for your target keywords.
Those are some of the best tips for starting a car wash business in Kenya. After going through the above, these are the next steps you should take:
Step 1: Form a legal entity & Register for taxes.
One of the first things you need to do when starting your business is making sure that you have a legal entity. Establish your business name and register it with the government through eCitizen.
Then make sure you get a KRA PIN Number for your business. This will help you get access to a variety of online facilities, including e-filing, tax credits, filing corporate returns, and more.
You need to find any other licenses and permits you may need to operate your car wash business.
Step 2: Open a business bank account
The next step is opening a business bank account. This will help you manage your cash flow and keep records of all transactions. You can open an account at any local bank.
Step 3: Set up a business accounting system
You will need to keep track of all the sales and purchases made in your business for tax. You can use any software you prefer, but make sure it’s simple and easy to operate.
Step 4: Get Business Insurance
I highly recommend insurance for all business owners. Depending on the type of car wash business in Kenya, you may need different insurance.
Check with your insurer for more information on the correct type of insurance for your business.
Is a Car Wash Business an excellent investment?
Yes, it is. Car wash businesses are profitable, and anyone with excellent knowledge of cars can start this business since there isn’t much for someone to learn to run a car care business. However, when creating such a business, the first thing you should do is plan well in advance to leave no stone unturned. A good business plan is the backbone of any successful business.
Business Plan preparation might be a chore, but it doesn’t have to be overwhelming or expensive. A thorough checklist will help you stay on track and organize all your ideas.
Investing in cleaning equipment such as car washing machines and vacuum pumps may prove costly for a business owner. Therefore, it is advisable to rent equipment before buying them.
Research on the pricing of other car wash businesses in your locality and gauge whether yours has to be more expensive than theirs or not. It’s all about customer satisfaction, so you have to provide good quality services at affordable rates so that people can patronize your business.
You also need to promote your car wash business in the best way possible. You may use Google AdWords or SEO/SEM Marketing Kenya to get your brand out there and attract more customers.