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How to setup a car wash business in Nigeria

Car wash business

How to start a car wash business in Nigeria

Introduction to the business

The car wash business is one that needs no form of introduction. This business is fairly common and you probably already know a lot about it. So I am going to be as straight forward as possible. The success of this business also depends on the location it is set; reason why most major cities have a lot of car washes.

The car wash business has been around for years and is not going anywhere soon. It has been employed by many as a tool for fund raising. And it has proven to be a good business to raise funds and achieve financial liberation with steady hard work and discipline. The car was business does not require a back breaking capital to start up and no special knowledge.
Car wash business is the process of washing the interiors and exterior of cars for a fee, usually as a form of maintenance and neatness. This business is incredibly profitable.

Starting a Car Wash Business in Nigeria

Capital Required

Small Scale: 1,000 – 20,000 Naira (No large equipment needed, just washing buckets, car wash detergents, a business card, etc and offer home or office freelance car washing
Medium Scale: 200,000 – 400,000 Naira (Large washing equipment, etc needed, you set up a car wash premises)

For the rest of this article we are looking at the medium scale car wash business in Nigeria.

Car Wash Operation process

The process of running a car wash business isn’t complicated. It is the washing of cars for a fee. So here is basically how it works. You set up your car wash premises and indicate your services on a sign post, people with dirty cars or who wish to wash their cars bring them into your work space. You thoroughly wash them or you can employ people to do so, the car owner then pays for the services rendered.

Things you need to startup a cash wash business in Nigeria

  • Car wash machine: This makes the job of car washing easier for you. Getting a car wash machine would cost about 200,000 Naira for a new one and 80,000 Naira for the used one.
  • A work space: You need to rent a work-space where your car wash business would be located and where you would also render your car wash services. The work space is usually an open space, large enough to park at least 2 cars at once.  A work space is rented for 6,000 Naira per month and 72,000 Naira per year.
  • Water:  Washing cars requires water, and a lot of it. It is advised you open a borehole close to your work space. Setting up a borehole would cost 150,000 Naira on average. If you don’t have enough funds you can buy water from water supply companies instead.
  • Storage tanks: Get a big enough storage tank or two to store your water for business. A storage tank of medium size would cost 12,000-15,000 Naira.
  • Generator set: A generator set will be used to pump water if you have a borehole or would be used for the car wash machine while washing the car. A suitable generator for this costs about 80,000 Naira
  • Buckets, towels, brushes, soaps and detergents: These are the most basic and essential tools needed for this business. Getting all of these may cost 5,000 Naira.

One Year Income projection for car wash business in Nigeria

The car wash business in Nigeria is a very profitable one. The income potentials like I said earlier are amazing and with hard work, you would be financially liberated through this business. A car is washed for between 500 – 1,000 Naira. Taking the minimum limit, if you wash 10 cars per day that is 500 * 10 = 5000.  In 30 days you would earn 150,000 Naira. Your monthly income * 12 months of the year would be 1,800,000 Naira in 1 year. One point eight million Naira.

Challenges and Risks involved with the car wash business

The challenges and risks of this business are easily surmountable, below are some risks and challenges you might face while doing this business:

  1. Saturated market: This business is so easy to start; a lot of people have started theirs, making it a very common business. However do not be discouraged as there is no shortage of cars to be washed.  Car owners are on the rise and they are also getting busier, meaning there is enough work for everyone.
  2. Wrong Location: If your cash wash business in Nigeria is located in an area not populated by car owners, you may find it hard getting your break through as patronage would be really low if there is any at all. So you have to make sure you locate your business in the right place.
  3. Risk of Car Possession:  The law says a car parked in your premises with your permission if stolen would make you liable. Running a car wash business is risky as cars may get damaged or stolen in your possession and you would have to pay. Locate your car wash business in a very safe area and be very meticulous while handling people’s cars.

How to Promote and attract Patronage for your car wash business

To get customers for your car wash business, there are some steps you must take. Here are some of these steps below:

  • Offer excellent customer service
  • Print and distribute flyers around residential areas, door to door.
  • Offer home car wash services
  • Offer discounts or freebies when you can
  • Attach a bar or situate your car wash business close to a bar if you can. Most people who come to wash cars need a place to chill and maybe drink.
  • Identify customers who stay close by and follow them up, maintaining a mutually beneficial consumer- business relationship.
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