Over the past few articles on this site, we have spoken at length on how to generate passive income from different businesses. So, let’s talk about how you can also make passive income from automatic car wash business.
Automatic car wash business is a great way to make passive income. The fact that it requires little or no human intervention and has high demand makes it a very lucrative business opportunity. It also helps that you can choose your location according to your preferences, as the demand is not limited by geographical proximity.
In this article, we will look at various aspects of running an automatic car wash business so that you can get started with yours today!
What Is An Automatic Car Wash?
An automatic car wash or self-service car wash is a facility that uses mechanical means to clean the car. It does not require human interaction and is available for use 24 hours a day, 7 days a week.
It’s great for people who don’t have time to wash their own cars, or who don’t want to risk scratching the paint by washing it themselves. There are three types of automatic car washes:
- Self-service: You drive into the bay and pull a lever to start the wash cycle, then drive out when it’s done. This is the most common type of automatic car wash.
- Full service: The machine sprays soap and water on your car as it drives through, then vacuums up all of the soapy water afterward.
- Touchless: This type of wash uses no brushes at all—the machine uses jets of water at high pressure to clean your vehicle instead!
Can You Make Passive Income from Automatic Car Wash?
Of course, the automatic car wash business is a very lucrative one. Although it requires a lot of money for startup, it is a kind of business that brings fantastic returns on investment.
The average annual profit for an in-bay automatic car wash is $86,531. The average annual revenue is $139,000 based on approximately 20,000 cars washed each year. That means this type of business is able to help you make healthy profits every year.
How to Make Passive Income from Automatic Car Wash Business
#1: Choose your car wash location wisely
A good location is key to success in any business, and an automatic car wash business is no different. The location you choose for your automatic car wash business should be visible to customers. A good place for such a business would be near a main road or highway, where there are plenty of people passing through every day.
This makes it easy for customers to find your business and allows them to stop by whenever they want (assuming you’ve got plenty of parking space).
If possible, try looking for a property with its own driveway or ramp so that people don’t have driveways blocked while they wait in line with their cars still running idle.
#2: Keep tab on your competition
The best way to keep up with your competition is to simply ask them. Not only will you be able to find out how much they’re charging for their services, but you can also learn more about their business plan and brand image. You can even go undercover and work for them as an employee for a day or two in order to learn about what makes the business tick!
#3: Register the business
This is another important thing you will need to do for the business – register the business. Registering your business gives you control over all the legal aspects of running the business. You can also claim deductions for tax purposes if you are registered as an official entity.
Registering your car wash business will allow you to:
- Protect your personal assets from liability lawsuits by filing a certificate of incorporation in your state’s secretary of state office. This creates a separate legal identity for the company (and keeps any future lawsuits from affecting your personal finances)
- Avoid having to pay income tax on behalf of yourself personally as an employee by registering as an S-Corp or LLC with the IRS
#4: Buy the right equipment
You’re going to need to buy the right equipment for your business. You can’t just buy any old automatic car wash equipment and expect it to work. The first thing that you should do when buying new equipment is make sure that it isn’t too expensive.
Larger, more expensive machines won’t give you much of a return on your investment if they don’t work properly or break down often. In addition to being high-quality and durable, your new machine should be easy to maintain and operate.
Keep in mind that this isn’t a one-time purchase. If you end up having problems with your machine soon after installation, you’ll have wasted money on something that won’t bring in any returns until it’s repaired or replaced entirely!
Additionally, make sure that whatever model or type of machine(s) fits within the space available at each location before making any final decisions about what type(s) might meet those requirements best.
#5: Do not automate totally
If you are looking for a way to make passive income from your automatic car wash business, one of the major things you need to figure out is what kind of tasks can be automated.
There are certain tasks that shouldn’t be automated because they require some human intervention or decision-making on the part of the user. For example, if you have an automatic car wash machine and it uses brushes to remove dirt from cars while they pass through a tunnel.
There is no way this operation can be fully automated because at some point in time there will be a need for a human operator who would determine whether the brush needs replacing or not (and replace it).
If this task does not require much effort then it’s fine but if it does require significant effort then we would recommend against automating this process.
#6: Manage seasonality and weather
Seasonality is the fact that certain times of the year are busier than others. This can be based on weather, holidays, or other factors. For example, if you live in a city with lots of snowfall, you might have more customers during the winter months than during other times of the year.
If you live in a city where it rains often during certain seasons, you may have more customers during those seasons than others. This can be tricky to manage because it’s hard to predict when you’ll have more customers and how much more money they’ll bring in.
You’ll need to track your sales closely so that you can adjust your prices accordingly so that you’re not overcharging or undercharging for services.
You can also manage seasonality by offering discounts or promotions at certain times of the year. For example, if there’s a big holiday coming up and people want their cars washed before going out on Thanksgiving Day (or whatever holiday is relevant).
You could offer coupons or gift cards for free washes around this time to draw in new customers who didn’t know about your business before but now want something special for their cars!
#7: Be Ready to Handle Snags and Challenges
You’re going to encounter some challenges and snags as an owner of an automatic car wash. So when you are thinking of how to make passive income from automatic car wash, you should think about this too. You need to be prepared for them so you can quickly resolve the problem and get back on track with your business.
In order to handle unexpected events, make sure that you have good hands on ground for likely issues that might come up.
#8: Promote the business
Now that the car wash is open, you want to make sure people know about it. This means promoting the business on social media, local news channels, local newspapers, local radio stations, and community boards. You can also advertise your new business on billboards in the area.
The more you promote your automatic car wash business before it even opens its doors for the first time, the more successful it will be when you do so!
Final Note
You can make passive income from automatic car wash business. It’s a good idea to choose the right location for the business because that will make all of the difference in how much money you bring in and how many customers you get.
One thing to remember is that people who own automatic car washes need to keep tabs on their competition, so they know what kinds of services they offer and how much they charge for them.
If you want to set up shop at a busy intersection, think about what kind of equipment you need for washing cars there, and don’t forget about buying supplies like soap and water!
We hope that we’ve been able to give you some ideas on how you can make passive income from an automatic car wash business. The market is ripe with opportunities, and if you’re ready to take some action and get started on this business, we wish you all the best!
