Entrepreneurial Story: Rising Tide Car Wash

Jul 26, 2024

Entrepreneurial Story: Rising Tide Car Wash

Key Business Overview

  • Three Locations: Coral Springs, Margate, and Parkland in the Fort Lauderdale area.
  • Revenue: Generates $6 million annually.
  • Employment Model: Focus on hiring individuals on the autism spectrum.
  • Service Offering: Combines exterior and interior car wash services, with a heavy focus on quality and customer experience.
  • Capital Intensive: Initial set up costs for locations roughly $5 million each, involving real estate, site development, equipment, and building construction costs.

Inspiration and Motivation

  • Personal Connection: Founder’s brother Andrew has autism. The business was inspired to provide employment opportunities to people with autism.
  • Mission: To change societal perceptions about the value of employing people with autism, treating it as a diversity asset rather than a disability.

Business Strategy

  • Unique Employment Approach: 100% of entry-level employees are on the autism spectrum.
  • Pilot Testing: Worked at an existing car wash and trained a group of 17 people with autism before purchasing the first car wash to ensure feasibility.
  • Partnerships: Collaborated with Sunny's Enterprises for equipment and training, as well as disability employment consultants.
  • SBA Financing: Used Small Business Administration (SBA) loans to finance up to 80% of the project costs.

Operational Insights

  • Location Breakdown:
    • Margate: Largest location offering both exterior and interior services.
    • Coral Springs: Second store, also around $5 million in total costs.
    • Parkland: Existing facility that was failing before being taken over.
  • Key Costs: Site development, equipment ($1 million), building costs, and the importance of concrete and steel in construction due to hurricanes in South Florida.
  • Revenue and Profit Margin: Aim for industry standards, 20% net profit margin, 50% operating margin on high-volume months.

Challenges and Solutions

  • Initial Struggles: Faced significant financial losses early on and had to build processes focused on autism-specific needs.
  • Employee Training: Developed the 'money mat' for structured and visual cash management. In-depth training scenarios for customer interactions.

Marketing and Media

  • Earned Media: Success through media coverage on Nightly News, Today Show, Entrepreneur magazine, Inc, National Geographic. Minimal paid advertising.
  • Impact: Media exposure significantly increased business and brand reputation.

Advice to Entrepreneurs

  • Start Small: For those with limited capital, begin with mobile detailing rather than fixed car wash locations.
  • Learning Phase: Recommend working at an existing car wash to learn the operations before starting one.
  • Mentorship: Seek mentors and advisors to fill knowledge gaps.

Leadership and Growth

  • Leadership Style: Evolved from authoritative to compassionate and disciplined, focusing on clarity and structured operations.
  • Book Recommendations:
    • The E-Myth Revisited by Michael Gerber
    • The Checklist Manifesto by Atul Gawande
    • The Power of Moments by Chip Heath and Dan Heath
    • Radical Candor by Kim Scott

Additional Insights

  • Facing Competition: Use competition as motivation to improve; focus on your own operational excellence.
  • Price Strategy: Competitive pricing, slightly above market to reflect premium quality and social mission.
  • Expansion Readiness: Expansion based on financial health and mature systems and processes.
  • Failures and Setbacks: Most businesses fail due to being average; strive for differentiation through mission-driven operations.