DIY Wash N' Fix is a new concept in auto care. The Do-It-Yourself (DIY) market in America is increasingly popular, as evidenced in the growth of DIY housing suppliers. However, there remains a gap in the market for DIY auto repair, currently firms offer auto parts and tools, but not a place to perform 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. Assuming someone has the required skills or the desire to learn auto repair, they will likely be inclined to use our facility to cut costs. Additionally, sales of after-market auto parts have been increasing, which demonstrates Americans' abilities and willingness to fix their own cars. The car wash industry is attractive, because it generates steady profits on little additional 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 has targeted a specific market of individuals who would like to work on their cars, yet they lack the proper space and equipment to do so. This is a growing market in urban areas, because many people live in apartment complexes that restrict on-site auto repair. Our target market is about 90% male in the age range of 18-55 who earn from $20,000 to $40,000 per year. Based on these desired demographics, we have chosen to locate our facility in Texas, Florida or California.
DIY Wash N' Fix is a new and exciting concept, and we have estimated it will be a profitable endeavor. The fact that we are the first in this business gives us a first-mover advantage over any competitors that may follow.
The key success factors in this industry are:
The above trends provide some reasons for our business to be successful. Indeed, the current American economic slowdown and the eventuality of rising costs for our competitors (technology, labor, environment, etc.) will facilitate the growth of the DIY business. Moreover, the bad image that certain repair stores have is an advantage for us because people may not trust them anymore. Finally, the repair industry is a good investment in terms of profit projections.
However, we also outlined two major threats. First, the increase in the technologically advanced vehicle electronics may prevent people from repairing their car on their own. Second, many states have laws requiring regular emission and safety inspections, which will require people to go to a traditional garage, even if they are regular customers to our facility.
Car Wash Competitors:
The multiple-activity car washes are less numerous in terms of total number available. However, they more closely resemble our business process and are therefore considered the primary threat.
It is appropriate to discuss the risks inherent in our business model. The central assumption that we've made in this plan is that part of the population exists that are willing and able to do basic repairs and maintenance on their automobiles, but are limited by lack of a proper workspace and appropriate 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.