A car wash company is just a car wash company…until it’s so much more. Use this car wash business plan to form the structure of your company and, as you prepare your car wash company for growth, we’ve outlined key metrics that will indicate where improvements can be made to fast track your company into growth that is right around the corner.
1. Sales Revenue
Evaluate your company’s sales revenue by subtracting any unpaid car washes from the total income of paid car washes. The result is the sales revenue received.
2. Net Profit Margin
Moving the lens closer, track the total cost of sales, including all expenses related to monthly revenue. Subtract the sales expenses from the monthly revenue to obtain the net profit margin. If this number is low, examine how you can lower the costs or raise the pricing in order to obtain a higher net profit margin. This margin is your growth accelerator; watch it closely.
3. Customer Acquisition Cost
How much does it cost the company to bring new customers to the car wash? This metric will divulge the answer: total the marketing costs and divide that from the total number of customers served. That result is the total cost per customer. If the cost is high, consider reducing the marketing costs.
4. Progress toward Growth
Does your car wash income exceed the costs of running the business? Check your efficiency by subtracting all costs against all revenue. If the remaining profit is low, consider ways to increase revenue: raising cost of services, selling more services, offering package pricings, or lowering cost of production.
Check the metrics every six months to stay ahead of improvements needed and position your company for increasing sales and exponential growth by building the profit margin as the business grows.