Editor’s Note: This is the second in a three-part series examining some of the challenges and business dangers that operators face when entering the carwash business. Read Part 1 and Part 3.
To recap where we left off, our entrepreneurs Mike and Jill decided to pursue their own destiny. They decided to get out of the corporate world and become their own bosses. Like many of us, their dream was to open their own business, become successful entrepreneurs, retire wealthy and live happily thereafter!
On paper, and in theory, it all made logical sense. Mike and Jill investigated various businesses and decided that carwashing was the vehicle that could make their dreams come true. They conducted extensive research for more than three years, visiting carwash after carwash, attending conferences, and interviewing countless people in the carwash industry. Confident in their decision, they formulated a plan and decided to take the plunge.
Good Start
Mike and Jill acquired a two-acre parcel and decided to build a short exterior tunnel with several self-service wash bays. They then began the difficult task of permitting, contracting, financing, building, planning and opening their new business. Figuring out where to start and how to accomplish each phase became their next set of challenges.
After site selection, their first step was obtaining the permits to build the carwash. A local engineering firm was selected to assist with the site layout and submittals. After conferring with local officials, as well as establishing general budget guidelines, a contractor was brought into the mix. Mike and Jill knew many of the answers to questions posed by the engineers, as well as the public officials responsible for reviewing their project and deciding on its approval.
Sketches and layouts of the site and structure were submitted, and after two years (normally this should take six months to 18 months), Mike’s and Jill’s project was approved. As the initial challenges of permitting, site review and design were met, Mike and Jill realized that much of their initial success stemmed from the three years of personal research and due diligence they had put into the project.
Was it beginner’s luck or were they fortunate to have a tolerant group of public officials? In either case, they benefited by getting through the planning process with a minimal number of setbacks and revisions.
Much of their investigative work into the world of carwashing was accomplished through interviews and the Internet. They chose their supplier based upon what they read online and learned from their discussions with those in the industry. They contacted their first equipment choice and were assigned a representative to facilitate equipment selection and provide assistance (they thought) with profit-and-loss projections, site layout, contractors, architects, banks and other general advice in the creation of their business.
So far so good. Or was it? Mike and Jill started to breathe a little easier (this should have been a red flag). As far as they were concerned, the difficult decisions were either behind them or being handled by a competent expert. They accepted the role of their “experienced” carwash expert/distributor (they really had no alternative, since the company was the choice of the manufacturer) and assumed the direction they would receive would help them accomplish their objectives efficiently and professionally. After all, they thought, how difficult could it be to build a carwash, if they were in the hands of “professionals”?
Cracks
Soon after their equipment order was signed, Mike and Jill realized that only part of the puzzle was being solved. The equipment representative said, “I’ll provide drawings and equipment. You will have to source contractors, engineers and architects.” He basically was only concerned with signing the order, getting a check, providing a basic layout and installation.
As far as providing guidance and consultative services, either he didn’t know or wasn’t able to empathize with Mike’s and Jill’s needs. Each time they met, the supplier pointed the finger at someone else (generally back at them) to facilitate and coordinate the construction project. The representative assigned by the manufacture turned out to be an expert in name only!
Elation and excitement were soon replaced by anxiety and disappointment! Hindsight has since convinced Mike and Jill that “Newbie” was clearly stamped on their foreheads.
In an effort to tie up loose ends, Mike and Jill began to assemble a team to help them address needs not being met by their equipment representative. They chose their team of “experts” based on local recommendations. Most or all were known and respected in their individual fields (plumbing, electrical work, general contracting,