Startup Consulting Case Study – Car Washing Business

Car washing business with web and app development is very trendy nowadays and Stimulus Co. is the best Startup Consulting company in India. check out our case study for startup consulting

Four young and energetic, out of the college boys found us on Google. When they were looking for a “startup consultant in Ahmedabad”! It was a first that someone found us through an online search for startup consulting.

Startup consultation
Startup Consultation


As in most cases, being app buffs – they came with a quick sketch of their concept on paper. A list of features they want to have and some mobile screen sketches. The idea was to provide An Home Car Washing Service on a subscription basis. Wow! We love the way the new generation can re-imagine the traditional services, provided in an unorganized way. These ideas also make us feel excited to work. 

Startup consulting
Startup Consulting

Understanding their business and goals – we were against the idea of building an app. However, the clients were too keen to have an app. Finally, they opted out against our advice and outsourced it to someone else. We continued to understand the business, break it down, and started planning the six-month strategy.

Here are the stages of a startup consulting

Planning

Whenever we are approaching a new business, which is starting from scratch – we break it down into small succession instead of making a big plan. Besides that, We focus on core service/offering and plan for the prototype. What are the things required for the core service to hit the market? The answer to this is the first plan.

Prototyping

However, the apps were getting developed – what we required to launch the services was to have a brand name, a brochure that explains the services clearly. However, as it is the new format for the customers and a phone number to receive orders. We advised the team to talk to friends and families that you have started this business and offer them a one-off complimentary service instead of offering a subscription and collecting the feedback. In a week, MINT MY CAR was ready to deliver the car washing at homes and offices. Bingo! 

startup consulting
startup consulting

The core service was designed by the clients was laid out in a brochure. There is a phone number to call and as designed the message marketing was started in the close groups.

First Challenge

Car Washing at home – is a business of manpower and that came out as one of the first challenges. There were a couple of models where clients could hire full-time employees or hire part-time workers as the initial service has to be delivered between 5 am to 10 am. When the cars are parked in the parking lots of the customers, and exactly when they want them to be cleaned. A contractor assured 8-10 workers, who will take the schedule, address, move to the locations, and clean the cars every morning.

To ensure if the washes are delivered and on time – one of the clients started supervising – checking on random vehicles if they were cleaned and cleaned properly. This entire arrangement was challenging and maintaining the timings and quality was a huge challenge.

Service Matrix & Unit Cost

For first-timers, the biggest need for consulting is to execute the idea efficiently to make profits. Mint My Car has a staggering sales of more than 75,000 INR within the first few weeks. The app they wanted to build was no more important and they were attracted to increase the service number.

Here comes the catch! As per the clients – the unit cost (cost to wash one car) was 25 rupees. With the equipment, tools, materials they were using, and list of things they were providing under one wash (e.g. interior cleaning, placing tissue box, etc.) the unit cost was Rs. 64 or more. Bam! Suddenly the rosy business numbers are not exciting.

The service matrix was redesigned to optimize the offering to match the essential needs of the customers and also to bring down the cost which was really high against the traditional way of procuring car washing services. Unit cost was brought down to Rs. 20 and the subscription pricing was revised accordingly.

Cost & Revenue Projections

As one of our standard and the most effective contribution through our startup consulting services is to create their first financials. Although, Most teams do not have the financial background or the know-how on how to go about the presentable sheets of projections to the investors or to the boards. Besides that, we made projected financials for the business for 3 years and created an anticipated cash flow and investment plan.

CRASH!

This startup took off really well and was overcoming the challenges with our help in service design, marketing strategy, business planning – CRASHED! It was the classic case of lack of clarity within team members in terms of roles, responsibilities, and commitment. A couple of them succumbed to family pressure and others had different plans than pursuing a business like this. In most cases, a startup fails due to the team. If the team has the clarity and sticks together with the alignment in goals – sooner or later they make a business!


If you are in an early stage of your startup with similar challenges, do get in touch with us at [email protected]

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