How to start a car wash and valeting business

Cars are valuable assets, so many people like to keep them in good condition with regular cleaning.

With increasing car ownership and busy lifestyles, the demand for professional car cleaning and detailing services continues to rise.

For entrepreneurs, these businesses present a low-cost entry with potential for profitable growth.

Now could be the perfect time to help fill the skills gap in your area and start a car wash and valeting business.

So, how do you set up and grow a successful car wash business?

What is a car wash and valeting business?

A car wash and valeting business provides vehicle cleaning services, offering everything from basic washes to deep cleaning to keep vehicles in pristine condition.

These services typically include exterior washing, interior vacuuming, polishing, and waxing.

However, a business in this sector could also offer specialist cleaning, such as engine bay cleaning services or upholstery treatments.

There are different types of car wash businesses, including fixed-location setups – where customers bring their vehicles to a specific site – and mobile valeting services.

Mobile services travel to the customer’s location and perform on-site cleaning services.

Both types of businesses can cater to regular maintenance needs or provide one-off services.

The car wash and valeting industry thrives on providing exemplary service and keeping customers happy.

What do you need to start a car wash business?

Starting a car wash business can involve several key pieces of equipment.

You may need to invest in or hire out items such as:

• pressure washers
• industrial vacuums
• cleaning chemicals
• cloths and sponges
• uniforms
• protective gear for employees (such as gloves, eye protection, and overalls)
• secure equipment storage.

Depending on your business type, you may require premises for your business.

This could range from renting a fixed location with washing bays to kitting out a mobile van for on-the-go services.

For this kind of business, you may also have ongoing operational expenses, including:

• equipment maintenance
• staff wages, if you have employees
• utilities, if working from a fixed location
• vehicle maintenance and fuel, if your business is mobile
• marketing and promotions
• insurance.

Do you need a licence to run a car wash business?

To open a car wash business, you need to comply with several legal requirements.

If you decide on a limited company business structure, you must register your car wash with Companies House and HMRC.

If you have employees, you must also meet health and safety obligations as well as other legal obligations.

These include conducting risk assessments, ensuring safe equipment use, and chemical handling.

It’s a good idea to seek independent advice before opening your business to ensure you’re compliant with legislation.

The Health and Safety Executive (HSE) provides guidelines to help you meet these obligations.

If you work from a fixed location, you may need to secure licences and permits from your local council, including planning permission.

This applies whether you build a new car wash or change an existing location.

You may also need to acquire an environmental permit to manage water discharge and waste, especially if you use large amounts of water or chemicals.

Besides this, you will need an environmental permit if your contaminated wastewater is being flushed away by a public sewer system.

If your car wash business is mobile, you may require a permit from your local council to work in certain areas.

As a business owner, think about the insurance you may need, such as:

• public liability insurance
• employer’s liability insurance
• equipment insurance.

These could protect your business, your employees, and your equipment in the case of an incident like injury or theft.

You can read our guide to small business insurance in the UK for more information.

Research the market

Conducting market research could be essential to help you understand your customers and ensure there’s demand for your car wash business.

It can also make it easier for you to build a successful marketing strategy later on, as you can pinpoint who you are targeting and the best ways to target them.

Market research involves collecting information about your target market and customers.

You can tailor your services to meet their needs by analysing their preferences.

This might include offering specialised cleaning or eco-friendly options at a competitive price.

Researching your target market can also help you determine the best site to choose for your business, whether you’re looking for a high-traffic area for a fixed business or locations for a mobile service.

Thorough market research could also help you avoid making costly business mistakes in the early days of your start-up.

Read our guide to market research techniques.

Writing a business plan

A business plan is a written document describing your core business objectives and how you plan to achieve them over a set period.

A robust business plan might include:

• your start-up’s goals and a timeframe for them
• financial forecasts
• competitor businesses
• sales and marketing strategies
• your target customers.

Without a business plan, you may find it challenging to secure the funding your start-up needs to grow.

Including these details could help you to keep your business on track to meet its goals.

Download our free business plan template.

Choosing a business structure

One of the first decisions for most start-up owners is deciding the business structure under which to trade.

This will influence how your business operates and how much tax you will pay.

Your options include becoming a sole trader, a limited company, and entering into a partnership.

Each business structure has specific operating methods, and not all may be suitable for a car wash and valet business.

Consider doing some research before committing to a structure for your start-up.

Read our complete guide to start-up business structures.

Marketing your business and acquiring customers

Marketing your business is one of the best ways to promote your start-up and attract your desired customers.

A comprehensive marketing strategy might include social media and a well-designed website.

You might also consider networking with other local businesses, using flyers and posters, and joining online directories.

Learn more about marketing on a shoestring budget.

Hiring staff for your business

Hiring staff can be an exciting part of your business growth.

Consider what kind of people would make ideal employees for your car wash and valet business.

For instance, you may want to hire people who are friendly, reliable, have an eye for detail, and have good interpersonal skills.

As an employer, you have a legal responsibility to ensure the physical and mental well-being of your employees while they are working, whether on-site or off-site.

This would include conducting risk assessments and training your employees to use cleaning equipment and chemicals correctly and safely.

Read about how to decide when your business needs to hire staff.

Funding your car wash business

Like many entrepreneurs, you may wish to access funding to make your car wash and valet business dreams a reality.

There are several funding options available for start-up owners.

Common funding options include bank loans, loans from friends and family, or government grants.

You might wish to consider a Start Up Loan, which offers personal loans for business purposes of up to £25,000, with a fixed 6% interest rate and a year of free business mentorship.

Alternative funding options can include angel investing, crowdfunding, or peer-to-peer lending.

Find out more with our guide to the best business funding alternatives.

Think about conducting thorough research, as certain types of funding may suit a car wash and valet business better than others.