DIY Wash N’ Fix is a unique concept in auto care that aims to fill a gap in the market. While there are DIY housing suppliers, the DIY auto repair market is underserved. Our business idea is to provide a professional environment for washing, painting, and repairing automobiles. This concept is particularly relevant in the current economic slowdown, as consumers are looking to cut costs. Additionally, the sales of after-market auto parts are increasing, indicating a willingness among Americans to fix their own cars. The car wash industry is attractive due to its steady profits and potential for great acquisitions from retiring baby boomers.
DIY Wash N’ Fix targets individuals who want to work on their cars but lack the space and equipment to do so. This market is prevalent in urban areas where on-site auto repairs are restricted. Our target market consists mostly of males aged 18-55 earning between $20,000 and $40,000 per year. To cater to this demographic, we have chosen to locate our facility in Texas, Florida, or California.
As the first in this business, DIY Wash N’ Fix has the advantage of being a first-mover, ahead of any potential competitors.
Keys to Success:
– Quality service
– Good business practices
– Skilled workforce
– Effective marketing efforts and customer information
– Technologically advanced equipment
– Environmental awareness
These factors contribute to the potential success of our business. The economic slowdown in America and rising costs for competitors create opportunities for growth in the DIY industry. Additionally, the negative reputation of certain repair stores works in our favor as people may lose trust in them. Finally, the repair industry offers promising profit projections.
However, there are also two major threats to consider. The advancement of vehicle electronics may hinder people from repairing their own cars. Additionally, state laws mandating regular emissions and safety inspections may require customers to visit traditional garages, even if they frequently use our facility.
Car wash competitors include single-activity car washes, which only offer car wash services, and multiple-activity car wash chains that provide various services. Multiple-activity car washes are considered the primary threat as they have a similar business process to ours.
Objectives:
– Attract and retain customers who are willing and able to do basic repairs and maintenance
– Provide appropriate pricing to cater to our target market
– Mitigate the risk of unforeseen expenses by carefully planning our financials.
Company Summary
This single-location firm provides a service to a local market. It combines a coin-operated car wash with a facility for DIY auto mechanics to rent repair bays. These repair bays include hydraulic lifts, compressed air tools, individual lighting systems, and specialty tools for specialized tasks.
The coin-operated car wash service and the after-market auto parts market are both long-standing industries, growing at 3% and 4% respectively. While there is overlap in their customer base, until now no one has linked the two and added customer value.
This combination of services complement each other and allow DIY Wash N’ Fix to enjoy the cash flows of the growing coin-operated car wash industry and increasing profitability from a new business venture. The business model relies on an appropriate population demographic, but once a suitable site is selected, the operation has the potential to provide a steady income. Growth will most likely be achieved through franchising.
While there are other firms competing with the car wash portion of the business, the professional style auto mechanic bays for rent are a unique idea. This idea stems from facilities found at many major military installations where service members can perform their own work on their vehicles.
To apply this business model to the civilian marketplace, a similar demographic must be found – individuals living in apartments, condominiums, or in areas with frequent inclement weather that restrict car owners from performing repairs. Providing an area to rent with adequate space, lighting, and environmental controls, as well as access to expensive professional equipment, would appeal to DIY auto mechanics.
This business model brings value to individuals with knowledge or a desire to learn about basic auto repair but lack a place to do the work or the tools. With the rising cost of auto repair parts and labor costs, a facility that makes performing standard maintenance and minor repairs more convenient and less expensive would provide tremendous value to customers.
2.1 Company Locations and Facilities
DIY Wash N’ Fix plans to acquire an existing car wash facility with six bays and enough land to expand the business. The facility will also have an additional nine bays for painting and repair. Construction will cost about $300,000, and the owners will contribute capital equal to 10% of initial investments. Approximately $53,200 worth of equipment will need to be purchased to properly equip the repair and painting facilities. Total initial assets will be $578,200.
The new facility will include three bays with 6,000-pound capacity lifts for light work and oil changes, three bays with 12,000-pound capacity lifts for major repair work, and three bays with ventilation and equipment for painting cars. There will also be a customer service area for checking in and out work bays and tools. Fees will range from $15 to $50 per hour of usage, and customers will have access to up to ten tools at a time.
2.2 Start-up Summary
Operating Requirements and Associated Costs
The materials requirements for the car wash will be minimal, and inventory will be kept to a minimum as well. A supplier that provides just-in-time supplies will be sought out. Inventory requirements for the repair part will also be kept to a minimum, as the firm is not going into the retail auto parts industry. Referrals from local auto parts stores may be a primary method of introductory marketing. Some items, such as motor oil, anti-freeze, and air fresheners, will be sold to encourage impulse buying. However, the strategy will focus on building rapport with other local automotive businesses by referring customers to them for needed auto parts. The customers will then return to DIY Wash N’ Fix to do the actual work.
The labor requirements for the firm will include several full-time employees and possibly some part-time employees to augment them during peak periods.
Products and Services
The facility will be a coin-operated car wash with an attached building for auto repair bays. The building will have nine bays with a customer service area and restroom/break area. Each bay will be designed for specific repair work. There will be four types of bays:
1. Car wash bay: Standard car wash equipment.
2. Auto Body/Paint bay: Special ventilation and environmental controls for painting auto parts. Additional equipment needed.
3. Wheel Lift bay: Drive-on lift for repairs not requiring wheel or suspension removal.
4. Frame Lift bay: Lift designed to pick up a vehicle by the frame, allowing wheels and suspension to hang free.
There will also be a customer service area where customers check in, check tools in and out, and make the final payment. Resources like Chilton’s Manuals and online DIY instructions will be provided.
During the check-in process, the customer will complete a form with general information including name, address, phone number, payment method, repair/maintenance type, and expected completion time. The form will include a disclaimer relieving DIY Wash N’ Fix from liability.
Customers will receive ten identification tags that can be traded for tools. This system prevents one customer from hoarding tools and makes check out easier. Tool rental prices will vary based on life expectancy and replacement costs. Credit card payments require recording the number, while cash payments require a deposit or ID.
After completing work, the customer will finish the check-out process, return all identification tags, and pay. A receipt will provide an itemized list of costs including bay rental fee, tool rental fee, miscellaneous charges, and taxes. The customer can then remove their car from the bay.
Government regulations regarding safety standards for lift equipment and proper disposal of auto fluids will be strictly enforced.
Personnel Plan
DIY Wash N’ Fix will have a small labor force consisting of a part-time general manager and three certified mechanics/managers. The general manager will handle inter-business relationships and corporate responsibilities. The mechanics will be responsible for day-to-day operations, including scheduling, inventory control, basic bookkeeping, safety, regulatory compliance, customer service, and repair advice.
Customer service clerks will be hired for basic tasks like customer service and custodial duties.
The daily management of the business will be handled by the lead mechanic. Three fully certified mechanics will be employed to provide advice and evaluate car problems. Customer service clerks will not provide repair advice.
The mechanics and customer service clerks will possess specific knowledge and skills relevant to their roles.
In addition to the mechanic on staff, customer service clerks will also be hired. These clerks will handle customer service and general custodial duties. They will not provide repair advice due to liability concerns.
The personnel plan includes a general manager, mechanics, and administrative staff. Total payroll expenses will increase over the three years.
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