In your industry analysis, you need to provide an overview of the car wash business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the car wash industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards environmentally friendly car wash businesses, it would be helpful to ensure your plan calls for such options.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your car wash business plan:
- How big is the car wash business (in dollars)?
- How big is your segment of the business (e.g., traditional vs. mobile vs. just car detailing)?
- Is the market declining or increasing?Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your car wash. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.