Expanding A Mobile Car Wash Business

What is the best time to expand a mobile car wash business? If everything were perfect and you could choose the best time to buy a new mobile car wash rig, you should buy it in April and have it running by the 20th of May. If you have 1.5 times the business of your first unit, then you automatically have enough business for one-half of a second truck, van or trailer unit combination. In June, the seasonal increase would take care of the rest. That is the simplest way. If you buy an additional truck in November and it is ready by the 20th of December, you will have holidays and rain. Unless you have a huge industrial account base, we don't recommend this to you.

There are a few things you should think about before expanding. You must ask us first because going from a one man operation to a real business is a giant step and if you don't feel you're up to it, you're right! You must have a competent unit manager who has been working with you and you trust their judgment and you trust them with your equipment and money.

You must maintain a profitable situation at all times. Positive cash flow is what business is all about and as long as you are happy with the business, that is the only other thing that really matters. If you never buy any additional units and you run your unit personally, except for nights and weekends, you will probably have sales of a lot of money per year. Out of that you should take home a fair salary. If you started your business to make more money and have more freedom from your previous employer, you did good, but adding an additional unit will take up more time and decrease your quality of life and there is a chance it will add significant headaches to your business.

Sometimes simplicity is the best bet in a small business, sometimes expanding is just more stress and cost. You should really think this through before going to step two.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:

Fighting chance for small business  The Australian Financial Review
How to Help Small Businesses Survive COVID's Next Phase  Harvard Business School Working Knowledge

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