How to Start a Car Washing Business

Nov 21, 2016
Reading Time: 3 minutes
Written by Logan Tennyson

Have an interest in cars? Feeling inspired by Christina Aguilera? If you’re looking at getting your hands wet and soapy by venturing into the car-washing industry, find out everything you need to know so that your business is a success.

If you’re also wondering what other types of businesses you could start, you can also check out our comprehensive list of business ideas.

How to Start-Up a Car Washing Business

Do your research

It is always important to conduct research whenever starting a business to determine if it is going to be profitable for you and where to set up shop. Things that you should consider researching when deciding your location includes:

  • Traffic – Try and aim for a location that is on a main road with easy access for customers;
  • Demographics – Check out the Australian Bureau of Statistics for statistics that may be relevant for your business, such as how many drivers are in your local area opposed to users of public transport and whether your area is a high density residential area which is preferred over low to medium;
  • Zoning – Is the site appropriately zoned for your car-washing business;
  • Visibility – Make your the location you pick is highly visible for drivers who are passing by, clever and appropriate signage will also attract customers; and
  • Price – You need to find a site that won’t break the bank so you have capital left to invest in the construction of the car wash and the running of the business.

Register your business

Once you have determined that your business idea is profitable and have found a suitable location, it is now time to get your business registered. You will need to decide on what business structure will work best for you, out of a sole trader, partnership or company, as each have a range of benefits.

There are a range of benefits to ABN registration when starting up a car washing business, which include:

  • The ability to register for GST if you expect turnover of over $75 000 per annum;
  • Eligibility to register for a domain name; and
  • The ability to register a business name with the Australian Securities & Investments Commission (ASIC).

LawPath offers an easy-to-use ABN and ACN registration service to complete your application in less than 5 minutes.

Leasing the premises

When it’s time to sign the lease, there are many factors to consider before signing the lease agreement. The lease agreement between you and your landlord is one of the most important documents that you will be signing during your time running the business, so it would wise to fully understand the conditions you are entering into before signing.
Things to consider in the lease are:

  • The cost of rent and frequency of payments;
  • Your rights and obligations under your state or territory’s respective retail lease legislation;
  • Who your landlord is; and
  • The type of lease. For example, whether it is a fixed term lease or a periodic tenancy.

Hiring Staff

Before hiring new staff for your car-wash, it is important to have the right documentation in place. Consider how many employees you are looking to hire and what type of employment that you will be giving them, such as:

  • Full time;
  • Part time;
  • Casual;
  • Seasonal; or
  • Contractual.

For the right employment agreements for your business, LawPath provides a range of employment contracts as well as other documents needed relating to employment.

Hiring Equipment

As car washing equipment can be expensive, especially if you are investing in getting an automatic car washing machine, you may want to consider renting the equipment with a hire purchase agreement. This allows you to buy items you normally could not afford and enables you to generate business revenue despite not having paid in full.

For more details on how to effectively start up and operate a car washing business, contact a business lawyer.

Get your business started on the right path. Contact a LawPath consultant on 1800 LAWPATH to learn more about customising a hire purchase agreement and other important legal documents you may need.

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