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Starting a Car Wash in Nigeria

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Car ownership shot up in the oil-boom of Nigeria’s middle-income group from the mid-seventies. In the midst of a buoyant oil economy, the eighties saw the resurgence in the use of seconds. Today, there are more cars than parking space available. The growth of automobiles is so conspicuous that any business related to this industry is high on every businessman’s agenda. (O’seun Ogunseitan, Wednesday is an odd day in Lagos, www.newint.org) .
2.0LocationJigawa State, with its capital at Dutse, is seen as a potential business centre for car wash. The state offers a very conducive environment for potential investors. The local administration has, with the view to encourage investment put for ward a package of incentives to investors, including free supply of infrastructure, preferential approval of certificates of occupancy in industrial layouts, tax relief and other incentives (Jigawa State, 1998) (Investment Opportunities, OnlineNigeria, www.onlinenigeria.com).
3.0Scope
Factors that determine the success of any business, marketing and selling, keeping costs under control, hiring quality employees, and location need to be considered. Dutse is an ideal destination for car wash business (see ‘Location’). Break-even would be at the end of three and half years or 42 months.(Jigawa State, 1998)…
4. Add benefits that will attract more customers, such as free service check, or bonus points on every car wash, home delivery and pickup, complimentary tickets, and so on.
The following Profit and Loss Statement is based on the following:
(Note: The figures projected are assumed and not to be recorded).
Number of working days is 25 a month.
1. Wash only is calculated at the rate of $6.00 for 25 cars a day.
2. Wash and Vacuum is at the rate of $8.00 for 20 cars a day.
3. Merchandise Sales consists of greens, and refreshments.
4. Sponges calculated at $0.75 each at 20 a day.
5. Detergent at $1.50 a bottle numbering 10 a day.
6. Window cleaner at $1.00 at 10 a day.
7. Paper rolls at $0.50 for an 80-roll sheet at 20 a day.
8. Salaries calculated at $3.00 an hour for 6 workers a day.
9. Rent at $1000.00 a month.
10. Telephone and electricity is calculated at $100.00 a month.
(Coutesy: Miller, wside.k12.il.us).5
Profit amp. Loss Statement: August 2003 through July 2006
Aug- Jul 04 Sep- Jul 05 TOTAL
Income/Expense
Income
Wash Only 45,000.00 90,000.00 135,000.00
Wash amp. Vacuum 48,000.00 72,000.00 120,000.00
Merchandise Sales 20,000.00 20,000.00 40,000.00
Revenue
Miscellaneous Income (Tax Relief) 5,000.00 5,000.00 2,000.00
Total Revenue 1,000.00 1,000.00 2,000.00
Total Income 118,000.00 187,000.00 305,000.00
Expense
Sponges 4,500.00 10,000.00 14,500.00
Detergent (24-ounce bottle) 4,500.00 10,000.00 14,500.00
Window cleaner (32-ounce) 3,000.00 10,000.00 13,000.00
Paper-roll towels (80-sheet roll) 6,000.00 6,000.00 12,000.00
Poster