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How Much Should I Expect To Make From A Car Wash Business?

Comments & Replies: 2     Views: 7514     Posted By: Peter Siegel MBA  Peter Siegel MBA: BizBen Founder, Lead Advisor



Topics: Buying A Business, Due Diligence     Tags: business valuation, buying a business



This is a hard question to answer specifically without any knowledge of the business. What kind of car wash it is (auto, self-serve, or full service)?, How many bays does the car wash have? Is there any other streams of revenue? But in general I can give you an idea based on nationwide averages. For the purpose of this discussion we will focus on automatic and self-serve.

Automatic Car Wash Averages:

Average number of cars washed annually: 19,947

Average sale per vehicle: $6.34

Average profit per vehicle: $4.35

Average annual profit: $86,531

Average annual revenue: $139,000

Average Self Serve Statistics:

Average monthly revenue per bay: $1,489

Average percent of time bay is in use: 10%

Average annual revenue for a 2 bay operation: $41,000

As you can see there is money to be made in the car wash business. You will have to do your due diligence when it comes to choosing a specific business as these are just industry averages, but you shouldn't have too much trouble finding car wash that will give you a healthy return on your investment.


This is a good topic to discuss "hidden" or unreported cash income.

A car wash is one of the businesses that are sometimes attractive to potential buyers because they think a lot of cash changes hands and a lot can end up in the owner's pocket without paying state and federal taxes.

BEWARE!

A seller who is going to tell you all about the taxes he hasn't paid on cash is telling you that he routinely steals, cheats, and lies -- but, he wants you the buyer to believe him when he tells you about his business. How trustworthy is that?

Material non-reporting of income distorts the entire system.--Those of us who are honest about our earnings are consequently paying a disproportionately higher amount of government expenses. How fair is that?

And, taking over a business with the intention of becoming an immediate tax felon can cost you bundles in legal fees, fines, and lost income, no to mention the prospect of looking through bars for several years. How smart is that?

Car washes, laundromats, vending routes ... these can all be good businesses. But, they must be sound businesses based on actual reported income, not based on being a criminal enterprise.


  Helpful Resources To Assist In Selling And Buying California Businesses
Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs

Founder Of BizBen.com (since 1994). I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I consult daily with buyers, sellers, and brokers daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.

Brad Steinberg, Business Broker: Laundromat Specialist

PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.

Harry Sidhu, CBB, Broker: SF Bay Area, Central Valley, SAC Region

Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.

Chris Seaman, Business Broker: Southern California

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

Peter Siegel, MBA: Business Purchase Financing Solutions

Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.

Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.


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