If you've been reading One Thing for a while, you'd know that I'm a sucker for boring traditional businesses. The competition is weak, costs and risks are low. Overall, good odds.
And today we're going to look into one of my favourite businesses - Car Wash 🚗
- The global car wash market is predicted to reach over $41.1 billion by 2025
- Coldwater Capital generated $12.7 million with a portfolio of 14 car washes and a SaaS tool that helps car washes switch to contactless payments
- Mister Car Wash went IPO in June and now has a market cap of $5.26 billion, generating $595 million in revenue, netting $75 million
- In 2020, with only two outlets, Carnuba Autospa Sdn Bhd managed to generate RM3 million in revenue and have plans to open 5 to 6 more outlets within a year
- Buy an existing car wash
- Start your own service. If you're starting out on a limited budget, a mobile car wash is probably your best bet
- Another alternative is to go with a self-service car wash. The startup capital might be high but if the location is right, you're looking at a strong passive income
- Go for the pick-and-shovel approach. Formulate your own car wash solution
- Develop an app for payments or bookings
You can always add more value and avoid stepping into a price war. There will always be customers willing to pay a premium for better and faster service. With the right business model and a high traffic location, a car wash can easily be your cash cow!