Business Venture-Interior Car Cleaning
Updated: Jun 8, 2021
One possible business venture that I could do on weekends could be interior car cleaning, including vacuuming and whipping down any plastic components like the dash. The highest startup cost would be a gasoline-powered generator for $500 and a wet-dry vacuum for $154. My most significant selling point would be that I would travel to customers and charge a relatively cheap cost of $20 per car as I assume it would only take me 45 minutes to one hour to finish one car. The highest operation cost would likely be gas to power both the car and the generator. If I were to travel within a 50-mile radius, then the average expense per job would come out to an average of $6.70. That leads to an average pay rate of $13.70/hour, which I could increase after a year of operation after having a good relationship with customers. That would mean that after cleaning 48 vehicles, I would have gained back my initial investment, and every car after that would provide me with a profit.
When calculating my maximum profit, I based on the population of the county I live in which has about 500,000. Then I assume that each household has at least 2 cars and that a typical family has four members, so we divide the population by 2. Then the assume that only 5 percent of that population has a dirty car and that only 5 percent of that population would request my services. That results in a total number of customers of 625. This would result in a total profit of $8,562.50. Even though this is not much, the possible upside of initial investment could be huge. If I can increase the number of people who request my service to 15 percent, then we are looking at profits of $25,687.5 which would be more than what I earn at my current job. The highest possible profit would likely have the same number of customers, but the price would increase to $30 which I believe is much more reasonable yielding a total of $56,250.