Manual Car Wash Business Return on Invetsment
Whenever you start a business, there one question hovering your mind that is
How am I going to make money out of this Car Wash Business?
Well, honestly, that is a good question to have.
The way the calculation for any business works is that the Revenue should be more than the money you spend in a specific period of time. This period can be as long as one day, a month, a year or the lifetime of the business. Typically Indian government wants you to calculate this every year.
As a business owner, you should be doing this if not on a daily basis, at least on a monthly basis, if you do not want a shocker at the end of the year.
How do I calculate the Return of my Car Wash Business?
This part of the document comes from the Automatic Car Wash Business Profits . Though the basis of the financial calculations is the same, there are various factors that might differ from the Automatic Car Wash Business in India.
First, let's start with the basic equipment your need to buy to start with the Manual Car Wash Business.
- Pump Systems
- Chemical Dosing Systems
- Payment Systems
- Vacuum Cleaner
- Building and Structure
You can start either a single bay facility or a multi-bay facility which can go up to 12 wash bays depending upon the area available and the kind of traffic you get. The above equipment prices would change depending upon the number of bays you plan. You can also plan an Automatic Car Wash Bay alongside manual car wash bays.
The expenses we mentioned above were the Initial expenses you required to start the business. Then there are expenses which are on a month to month basis like
- Monthly taxes,
- Staff Salaries
- Cleaning and Facility Maintenance
- Equipment Maintenance
There are other expenses which depend upon the voilume of business
- Electricity Bills
- Water Bills
Now, once you are done with the Expenditure side, you can think about the revenue side which is the money inflow. You need to work out an average utilisation of each bay multiplied by the rate you have set per minute.
In the above graph you can clearly see thate Fixed expenditure is the cost which does not depend upon the volume of business you do. The variable expenditure are the expenses which depend upon the volume of business.
Break Even Point
IN the above graph, you would notice the intersection of Income line and the Variable Expenditure line. The point where they meet is called the Break Even point. It is that point where you start making money. The simple reason is that the variable expenditure does not exceed to that an extent as compared to the inflow from increase in business.
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