How to Start a Profitable Car Wash Business with Low Capital

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Every Kenyan dreams of owning a car at some point in life. Regardless, there is a section of the 42 Million Kenyans that has actualized those dreams. And as statistics go, over 90K vehicles hit the Kenyan roads every year.

What does that reality tell you?

There are lots of car-related businesses that are out there waiting to be exploited. One such business is the car wash business.

Did you know that the Car Wash business is actually one of the most profitable businesses in Kenya at the moment?

You must have seen so many Car Wash businesses mushrooming around where there used to be none.

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This is to say that as profitable as it is if you don’t jump on this opportunity today you may never get a space to set up your car wash.

With that in mind, here’s a business guide to help you start your car wash business in 2020.

Our guide covers the best location for a profitable car wash business, requirements for starting out, capital required, and the profitability of such a business.

 

Best Location for a Carwash Business in Kenya.

Look for some space along a busy road where cars and vehicles are likely to come.

You can also partner with some entities where cars and vehicles are most likely to come like Petrol Stations and Restaurants and malls.

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Other public facilities like churches and institutions with many car owners may also offer an ideal location.

Any of the above locales will offer a sure bet flow of cars and vehicles to wash and tap into the market and profits.

Let your yard have easy access to cars and vehicles and have a good terrain for water flow.

Work on proper drainage also to avoid flooding the area to look unpleasant.

Also Read: Top 50 Most Profitable Businesses in Kenya

Requirements for a car wash business.

If you identify an area such as mentioned above, which has the potential for business, then:

  1. Rehabilitate the area – Clear it, remove barriers, fence it, and cement the ground with some concrete. Do so ensuring a proper terrain and drainage of the area is considered.
  2. Put up a signboard or banner hinting to Car Wash services.
  3. Acquire the necessary licenses;
    • County Council Single Business Permit – Ksh.5,000 – Ksh.35,000 per year depending on the county. This one license is enough to begin a small Car Wash.
    • Clearance from NEMA – This applies only where you want to start a big Car Wash business.
  4. Assemble the following equipment if starting small:

    • Water source.
    • Several buckets.
    • Several cotton hand towels.
    • Detergents
  5. Assemble the following equipment if well established:

    • Water source – whether piped water or from some natural source like a river or something.
    • Water Storage tank – depending on the daily flow of work, have a water storage tank of reasonable capacity, about 1,000 Litres or so.
    • Car Washing Machine – this may be Petrol-powered.
    • A vacuum cleaner.
    • Detergents
    • Fuel

How much Capital do You Need to Start a Carwash Business?

You may require a total of Ksh. 100,000 to start a well-equipped Car Wash Business.

This may include renting a yard at approximately Ksh. 15,000, rehabilitating it at approximately Ksh. 10,000, licenses approximately at Ksh. 10,000 and the equipment at about Ksh. 50,000.

How profitable is this kind of business?

If say for example you handle 15 cars a day each at around Ksh.200, that will make about Ksh.3,000 daily and close to or even over Ksh.100,000 monthly. Isn’t that worth your try?

To increase profitability, you can offer the following:

  • Motorbike cleaning.
  • Carpet cleaning.
  • Night parking if not operating 24 hours a day.
  • Spare parts.
  • Relevant and related products and services.

*Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.
 

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