Avoid a Car Wash For Sale For Your E2 Visa
This is Patrick Findaro with Vetted Biz. Today, I’m going to talk a little bit about why you should not buy a gas station, a car wash, or any of those related businesses as there’s just a lot of competition in that space. So, let’s go through quickly the top four reasons why you should avoid a car wash for sale business. Maybe you’re browsing on a site, and you see listings for car washes for sale, and you like the simplicity of the business.
That same simplicity that might have attracted you to the car wash business, no big surprise, attracts a lot of competition for people that want a business where there’s minimal employees, where people are just pulling up to the business, and getting the service done.
1.Heavy competition: So, there are many entrepreneurs entering in this industry, for the same fact that you might…it might have piqued your A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. In Vetted Biz, it is typically the additional rate of a loan a business buyer would pay off over time to borrow in purchasing a business…., it’s that it’s relatively straightforward to manage and run. So, as a result, many local areas around you might have already a few car washes The year a Business for Sale was established. If the business has been running for a minimum of ten years, Vetted Biz will qualify the business for sale as a “Well-Established Business.”…. Here in Miami, it’s like every block there’s a car wash. And then leading into the second reason not to own a car wash business is the seasonality and the unpredictable nature of the business.
So, in Miami what can happen, as other areas of the country, there can be bad weather, or there can be days that it rains every day for a week, or two weeks, and people aren’t necessarily bringing in their cars, or they feel like they’re getting a wash done every other night. So, also hurricanes pass through Miami, so you could have a period where for a week, two weeks the last thing on people’s mind is getting their car washed. Other locations with snowy or rainy climates, it might be a difficult business to really predict your revenue, and thus your profitability for a car wash.
The fluctuating nature of the business, and seasonality of the business in certain areas creates quite a problem if you’re looking to buy a car wash here in the United States.
2. The high maintenance cost: It’s a very capital-intensive business where you have to spend a lot of money on equipment, then you have to maintain that equipment. So, when the equipment breaks, it can be very expensive to call a maintenance personnel, and perhaps they’re going to charge you hourly rate, and then those replacement parts.
3. The fluctuating and seasonality of the business: And then if you have to replace the whole system, which generally, is going to happen every few years, it’s going to be a very expensive proposition. You might even have to take a loan out to finance that large equipment purchase. So, that’s the third reason I would not invest in a car wash business is the high maintenance cost related to it.
4. The machine downtime: Again, you’re in a rural area, a suburban area, and it’s a Sunday, and your car wash business shuts down, one of the main equipment shut down, good luck getting a technician right away. It might take a day or two. So, when the machine is not running, that’s a lost opportunity for you to make money. And that can be extremely costly, such is the case with the maintenance cost. So, time lost waiting to have that equipment fixed means that you’re losing profit, The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue…., etc.
So, it’s going to rely a lot on having the right technicians in place, and ensuring that you have reliable technicians to fix the machines that falter. But also for peace of mind. Do you want to be dealing with that on a Saturday evening, or Sunday evening, especially if you got in the car wash business because you have a full-time job that you couldn’t allocate full time to this endeavor?
Many times, too, there’s not enough margin to run the business fully autonomously. You’re going to have to work 10, 20 hours a week in the business, and it’s usually going to be in funky hours.
So, again, four reasons that I would take as the top reasons to avoid a car wash for sale listing that you might find, and not even entertain the idea, is one, heavy competition across the United States, two, the heavy maintenance and machine cost. A very high maintenance cost, I should say. Three, the fluctuating and seasonality of the business, and then four, the machine downtime. So, when something does break, not only is it going to cost you money to fix it, but it’s also going to cost you revenue and sales from clients.
This has been Patrick Findaro with Vetted Biz, I’m managing partner at Visa A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate….. I hope you found this video informational. If you’re interested in exploring more When the earnings in a given period of time is more than the expenses in a business…. franchises and businesses for sale, take a look at vettedbiz.com. We have analysis on 30-plus industries that also includes basic profit and loss numbers for many of those industries.