DIY Wash N’′ Fix is a new approach to auto care. Do-It Yourself (DIY), is gaining popularity in America, as shown by the increase in DIY housing suppliers. The market is still lacking in DIY auto repair. While many companies offer parts and tools, they do not provide a place for the work. Therefore, our business idea is to provide a professional environment in which to wash, paint or repair your automobile. DIY Wash N’ Fix is a timely idea, because the current economic slowdown in the U.S. may influence consumers to revise their spending habits. Our facility is likely to attract people who have the skills and desire to learn about auto repair. Also, after-market auto parts sales have increased, which is a sign of Americans’ abilities and willingness fix their own cars. The car wash business is attractive due to its steady profits and low investment. An opportunity for excellent acquisitions currently exists in the car wash and auto repair industries, given that many of these businesses are owned by baby-boomers who are anxious to retire.
DIY Wash N’′ Fix targets a particular market that wants to repair their cars but lacks the space or equipment. This is a growing market in urban areas, because many people live in apartment complexes that restrict on-site auto repair. Our target market consists of 90% males aged 18 to 55 with annual incomes between $20,000 and $40,000. These demographics are the reason we chose Texas, Florida, or California to locate our facility.
DIY Wash NՉ۪ Fix is a fresh and innovative concept. We have calculated that it will be a very profitable venture. The fact that we are the first in this business gives us a first-mover advantage over any competitors that may follow.
1.1 Keys to Success
These are the keys to success in this industry.
- The quality of the service
- Good business practices.
- Skilled workforce
- Information provided to customers/marketing efforts
- Technologically advanced equipment.
- Environmental issues awareness.
The above trends provide some reasons for our business to be successful. We are seeing the American economy slow down and possible rising costs for our rivals (technology, labor environment, etc.). DIY will grow because of the current American economic slowdown and eventuality of rising costs for our competition (technology, labor environment, etc.). Moreover, the bad image that certain repair stores have is an advantage for us because people may not trust them anymore. The repair industry is an excellent investment because of its potential profit projections.
Two major threats were also highlighted. The first is the fact that people might not be able repair their vehicle on their own because of the advanced technology in automobile electronics. Many states have laws that require regular safety inspections and emissions testing.
Car Wash Competitors
- Single-activity Car Washes: These are typically private-owned businesses which offer car wash service only.
- Multiple-activity car washes – these are chains that offer many different services. AAA, for example, is a California-based facility that offers car-care services. Recently, it announced the opening of a full car wash.
There are fewer multiple-activity car washes. They are nevertheless more like our business process, and they are therefore considered to be the primary threat.
1.2 Objectives
It is important that we talk about the inherent risks in our business model. Our plan assumes that there is a part of the population that can do basic repairs on their vehicles, but they are limited by lackof proper workspaces and the right tools. Another key factor to our success is appropriate pricing to attract and retain this customer segment. Finally, a risk inherent in our business is that a large unforeseen expense will arise that we have failed to work into our financials.
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