Professional Documents
Culture Documents
Business Plan Car Wash
Business Plan Car Wash
Business Plan Car Wash
Contents
1. Executive Summary.....................................................................................................................3
2. Sales and Marketing....................................................................................................................5
2.1. Product description...............................................................................................................5
2.2. Competitor............................................................................................................................5
2.3. Location................................................................................................................................6
2.4. Market Area..........................................................................................................................6
2.5. Main customers.....................................................................................................................6
2.6. Market share..........................................................................................................................6
2.7. Selling price..........................................................................................................................7
2.8. Sales forecast.........................................................................................................................7
2.9. Promotional measures...........................................................................................................7
2.10. Marketing strategy..............................................................................................................8
2.11. Marketing budget................................................................................................................8
3. Production....................................................................................................................................9
3.1. Production process................................................................................................................9
3.2. Fixed capital........................................................................................................................10
3.3. Life of fixed capital.............................................................................................................13
3.4. Maintenance and Repairs....................................................................................................13
3.5. Sources of equipment..........................................................................................................13
3.6. Planned Capacity.................................................................................................................13
3.7. Future capacity....................................................................................................................13
3.8. Terms and condition of purchase equipment......................................................................14
3.9. Company location and layout............................................................................................14
3.10. Raw material needed.........................................................................................................14
3.11. Cost of Raw materials.......................................................................................................15
3.12. Raw material availability..................................................................................................15
3.13. Labor.................................................................................................................................15
3.14. Cost of labor......................................................................................................................15
3.15. Labor availability..............................................................................................................16
3.16. Labor productivity.............................................................................................................16
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Business plan
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Business plan
1. Executive Summary
ABBE Car wash is a prominent hand car wash serving the Eastern Addis Ababa, specifically
Megenagna-CMC- Hayat village community. ABBE car wash is to be a four -in-one car wash
with three self-service bays and one automatic drive-thru. The facility will be a well-lit, nicely
landscaped, modern structure that delivers high quality service at competitive prices with remote
(video) security monitoring in the service area. Y&F is designed to appeal to both men and
women, helping them feel welcome and safe while they wash their cars and other vehicles.
The objectives for ABBE car wash and Detail Service are:
To be viewed as a premium car wash and detail service around Megenagna, CMC, Hayat.
Maintain a very high gross profit margin.
Maintain a modest, steadily growing net profit margin.
.
President and Chief Executive Officer of Car Wash Plc. is Yonas Hailu (the owner).
Formerly, Fuad Nusru (partner) will be the marketing manager for a company. He
will handle all day-to-day operations, buying of supplies and marketing of the business.
Custodial service, grounds upkeep, machine servicing and repair and maintenance will
either be outsourced or handled by a part-time employee.
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The site of Y&F is the most important factor in the success of the business. All factors
have been considered, and the Megenagna-CMC- Hayat village community has been selected.
This site is particularly well-suited for a car wash.
The overall cost for the start-up of this business is 615,000. This amount is broken down as
follows:
The owner will invest 160,000 and Y&F will borrow the additional 455,000. A loan in the
amount of 244,000 for construction and an equipment loan of 211,000 are needed
Y&F car wash is a hand wash start-up company that will provide exceptional car care services to
the members of Megenagna-CMC- Hayat community. Quality services that exceed expectations
will establish Y&F car wash as the premiere car wash service.
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Car detailing
Y&F car wash will be providing customers with three services: exterior car washing, interior
cleaning, and detailing. Y&F car wash ability to provide a high quality service, both in regards to
the actual washing as well as customer service is all based on their ability to find the best
employees. Hiring the best employees is cost effective because it decreases HR costs associated
with turnover and other employee costs. Hiring the best employees and making sure that they are
well taken care of ensures that they in turn take care of the customers.
2.2. Competitor
There is one other hand car wash around Megenagna, It is quite use river water to wash the cars,
and it is not targeting the customers who seek quality cleaning. There are also a lot of automatic
car washes in the entire cities; however, these shops not target those customers offering low
prices. The customers who use Y&F car wash is targeting have their cars washed based on the
quality of the work. They do not mind spending a little more each week to have their car washed
and waxed in order to keep the paint work in excellent shape. The businesses that Y&F car wash
will be more cost conscious.
2.3. Location
Y&F car wash will establish its location in Gurde sholla , behind telecommunication office,
which are adjoining to Zeresenay Car repair (Garage). The car wash will be accessible from a
side road and will not interfere with the car wash traffic.
Y&F car wash use the these location was previously used an automobile service shop, so it is
set up to move vehicles quickly through the premises, but does not have all the necessary
systems in place to host a car wash and detail facility. The services of a contracting company will
be sought to convert the use of the facility and to improve the customer waiting room facilities.
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The surrounding area is quite affluent; more than 50% of the residents have their own cars.
Consequently, they have nice cars and want them to look nice. There are also governmental and
nongovernmental organizations which have a lot of cars starting small vehicle up to buses. And
there are many different local businesses (mini & midi buses) that require clean appearances.
The hand car washing business in Addis Ababa consists of many small competitors as well as
automatic car wash. Everything from local children raising money for by cleaning cars, to
the automatic car wash machines are competition for Y&F car wash. However, those hand
washing alternatives aim to meet the needs of the price-conscious individuals who are choosing
the service simply so they do not have to clean the car themselves and those automatic car wash
machines aim to meet the needs of few people who can afford to their cars and those customers
who need to wash their car with a long interval.
In-bay self-service wash products = 18.00 for 3.75 minutes and 4.50 birr for each additional
minute. The services are listed below
Soapy wash
Tire cleaner
Engine cleaner
Wax
Rust Prohibitory
Automatic wash bay
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1. Basic ………………….63.00
2. Basic with wax………..72.00
3. Deluxe……….................81.00
4. Deluxe with wax………90.00
5. Vacuum……………... 18.00
6. Shampoo Machine 18.00 / 3.2 minutes 27/ 4 minutes
7. Vending items Varies from 13.50 to 36.00
Price assumptions
Pricing is based on global competitors.
Sales are seasonal in this business, tending to be higher in the rainy summer season, and to drop
off in the winter. However, we will aim to flatten sales across the sales cycle by targeting
segments that will want to keep their cars clean and looking good year round.
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3. Production
3.1. Production process
Y&F Car Wash will offer technologically advanced, frictionless, touch free exterior in- bay
automatic and self-service car wash facilities.
We could add an automated car wash that includes interior detailing. Current trends let
customers have choices on how they would like to have their car washed at different
times. The basic automobile wash consists of the self- service wash options. In-bay automatic
upgrade washes consist of an under chassis wash, tire scrubber and in-bay automatic upgrade
wash with extended drying. Y&F will not only offer the cleanest and technologically advanced
car wash, it will offer remote video security and monitoring.
The car wash services are definitely motivated by environmental responsibility. Specifically the
issues that we will address include:
Bay Automatic
Nozzle alignment, flow rates and timing are all deciding factors in water conservation
for in- bay automatic car washes. We will use reverse osmosis equipment which means
water rejected from the unit can be utilized in landscape watering.
Self-Service
Automatic Usually relatively few gallons of water are used by a properly designed, water
efficient professional car wash. However, the architect and engineer will investigate the
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use of a closed loop system. With these systems only water lost to evaporation and drive
away is consumed by the operation.
1. Land
2. Building
2. Machines
A. Conveyor : a conveyor that never need to think about, that is easy to maintain and
delivers unparalleled reliability
Fig. conveyor
B. per-wash
It covers all vehicle surfaces completely with detergent while accurately controlling
consumption for the most economical operation.
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C. Friction Car Wash: It needs to produce cleaner vehicles faster and more safely with
equipment that is durable, affordable, and easy to maintain.
In addition to removing all detergent, it needs to automate triple foam conditioner, surface
protecting, and tire dressing application to partake in these profitable extra services without
additional labor expense.
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E. Car wash dryer: need durable, energy efficient, labor saving drying.
F. Support Equipment
Air Compressors
Applicator Pumps
Cameras Controls
Detailing Centers
Detergent Accessories
Dispensing Stations
Floor Mat Cleaners
Grating & Brackets
Green Performance
Y&F will enter into a maintenance agreement to local companies in order to service and
maintain the equipment. The whole spare part, manual of the machine and scheduled
maintenance will be supplied by supplier of the machines which will make the maintenance by
local maintenance and Service Company easier. The removal agency which owned by
government will handle trash removal.
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difficult to pay for the machinery over a long period of time. But the supplier analysis is
performed and based on their quality, price and on time delivery the best supplier selected. This
supplier will give guarantees for machine supplied by them, after sale service and also training to
operator which is supported by Video and local professional.
Toilet
Reception
Parking area
Water use in professional car washes constitutes a highly visible use of water in a
professional process. As such, it comes under scrutiny from the public and policymakers
especially during times of drought or water shortage. Y&F will utilize conservation
measures and investigate water reclamation systems. We are definitely motivated by
environmental responsibility.
Soaps
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Detergents,
Waxes: protect your car with a clear, hard coating.
Water treatment products.
Items Cost
Cost of water 8000
Soaps 3000
Detergents ( Car Shampoo) 24000
Waxes 30000
Water treatment 12000
Total 77000
3.13. Labor
Y&F is will employ a labor for interior cleaning of cars , guard and also cleaners for the
office ,toilet and etc which will be out sourced. Two attendants will staff the wash Monday -
Saturday. They will provide customer service, vehicle prep at the automatic washes and maintain
the car wash site
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Cost of utilities
Telephone 600
Electricity 13000
Cleaners 3000
Security 7200
Total 23800
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This is a self-service car wash that employs only the owner and a part-time attendant. The
organizational chart at this time is simple – the employee reports to the owner. The chart below
shows the different operational aspects that the owner must oversee. If expansion is undertaken
in the future more employees will be added and a more detailed organizational chart will be
developed.
CEO
President and Chief Executive Officer of Y&F Car Wash Plc. is Yonas hailu. He has
worked full time at ERA (Ethiopia road Authority) for the past 7 years. Fuad Nusru will be a
marketing manager. He has worked full time at his own private company as general manager.
He will handle all day-to-day operations, buying of supplies and marketing of the business.
Custodial service, grounds upkeep, machine servicing and repair and maintenance will either be
outsourced or handled by a part-time employee.
In order to move into offering different services, Y&F will hire a manager who would
oversee the entire operation. This person would monitor and supervise all employees. In
addition, experienced full- and part-time staff will be hired to do the fast lube and detail work.
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Also staff would have to be hired to direct and maintain the full-service wash, including getting
customers into the wash and hand cleaning the interior of the vehicle.
2 Analysis of
machinery and raw
material supplies
3 Hiring consultant
4 Preparing business
plan
5 Registering the
business
6 Training program
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Furniture
Computers
File cabinets
Telephone
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5. Financial plan
working capital
Over head expense 64,895
Wages and salary for a year 20,400
Working capital 85,295
A total of 615,000 will be required to fund the start-up of operations. The business itself will be
self- funding since most of the expenses are variable in nature and the operation does not accept
credit sales. Future growth would require additional funding. The current estimate is that
500,000 would be required for land and building additions to add a full-service car wash and/or
modular fast lube unit.
The owner will provide 160,000 of equity financing. The remaining 455,000 will be financed
with debt. A 20-year loan at 8% interest in the amount of 244,000 will provide the funds for the
land and building. A 10-year equipment loan of 211,000 at 10% interest will be obtained to
finance the equipment purchases.
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The company owner has a home which is estimated to be 700,000 birr. These will the company a
security (collateral) that can be given to the bank.
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_
Other cash in ( receipts from interest) _ _ _ _ _ _ _ _ _ _ _ _
615,00 12,03
Total cash in 0 6,250 6,250 6,250 6,250 12,030 0 12,030 12,030 12,030 12,030 12,030 12,030 738,240
615,00 41,05 42,48
Total cash available 0 66,250 48,618 48,335 2 43,548 2 42,916 40,350 40,784 41,219 41,654 42,000 798,240
Cash out
Inventory expenditure
Inventory raw material (cash) _ _ _ _ _ _ _ _ _ _ _ _ _ _
Production expense _ _ _ _ _ _ _ _ _ _ _ _ _ _
Operating expense
Advertising _ 4,900 100 100 100 100 100 100 100 100 100 100 100 6,000
Dues and subscription _ 550 _ _ _ _ _ _ _ _ _ _ _ _
Insurance _ 3,000 _ _ _ _ _ 3,000 _ _ _ _ _ 6,000
Marketing and promotion _ 2,000 2,000 1,000 1,000 _ _ _ _ _ _ _ _ 60,000
Miscellaneous _ 100 100 100 100 193 193 193 193 192 192 192 192 1,940
Office expense _ 219 219 219 219 421 421 421 421 421 421 421 421 4,243
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _
Payroll expense _
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Salaries and wages _ 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 36,125
Payroll taxes _ 368 368 368 368 448 448 448 448 448 448 448 448 5,057
Benefits _ 63 63 63 63 64 64 64 64 83 83 83 83 722
Professional fees _ _ _ _ 1,000 _ _ _ _ _ _ _ _ 1,000
Repair and maintenance _ 507 507 507 507 977 977 977 977 977 977 977 977 9,845
Telephone _ 50 50 50 50 50 50 50 50 50 50 50 50 600
Travel _ _ _ _ 1,500 _ _ _ _ _ _ _ _ 1,500
Utilities _ 682 682 682 682 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 13,215
Paid on account _ _ _ _ _ _ _ _ _ _ _ _ _ _
Non-operating cost
555,00
_ _ _ _ _ _ _ _ _ _ _ _
Capital purchases 0 555,000
Estimated income tax Payment _ _ _ _ _ _ _ _ _ _ _ _ _ _
Interest payment _ 3,385 3,373 3,382 3,348 3,338 3,324 3,312 3,300 3,288 3,278 3,284 3,851 39,819
Loan principal payments _ 1,444 1,458 1,481 1,487 1,493 1,505 1,517 1,529 1,541 1,583 1,585 1,578 18,129
Owners draw _ _ _ _ _ _ _ _ _ _ _ _ _ _
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May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr Total
Cash in
Cash sales 11,385 22,735 22,735 22,735 22,735 11,365 11,365 11,365 11,365 11,365 11,365 11,365 181,860
Collection from account receivables _ _ _ _ _ _ _ _ _ _ _ _ _
Equity received _ _ _ _ _ _ _ _ _ _ _ _ _
Loan received _ _ _ _ _ _ _ _ _ _ _ _ _
Total cash in 11,385 22,735 22,735 22,735 22,735 11,365 11,365 11,365 11,365 11,365 11,365 11,365 181,860
Total cash available 41,881 41,552 47,632 52,813 58,803 51,903 40,805 45,278 44,047 42,819 41,500 40,382 212,358
Cash out
Inventory expenditure
Inventory raw material (cash) _ _ _ _ _ _ _ _ _ _ _ _ _
Production expense _ _ _ _ _ _ _ _ _ _ _ _ _
Operating expense
Advertising 150 150 150 150 150 150 150 150 150 150 150 150 6,000
Dues and subscription 550 _ _ _ _ _ _ _ _ _ _ _ 550
Insurance 3,300 _ _ _ _ _ 3,300 _ _ _ _ _ 6,600
Marketing and promotion _ _ _ _ _ _ _ _ _ _ _ _ _
Miscellaneous 182 384 384 384 384 182 182 182 182 182 182 182 2,910
Office expense 398 798 798 798 798 398 398 398 398 398 398 398 6,385
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _
Payroll expense 579 738 738 738 738 579 579 579 579 579 579 579 7,588
Salaries and wages 4,137 5,274 5,274 5,274 5,274 4,137 4,137 4,137 4,137 4,137 4,137 4,137 54,188
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Payroll taxes 579 738 738 738 738 579 579 579 579 579 579 579 7,588
Benefits 83 105 105 105 105 83 83 83 83 83 83 83 1,084
Professional fees _ _ 1,100 _ _ _ _ _ _ _ _ _ 1,100
Property taxes _ _ _ _ _ _ _ _ _ _ _ _ _
Repair and maintenance 923 1,848 1,848 1,848 1,848 923 923 923 923 923 923 923 14,787
Telephone 75 75 75 75 75 75 75 75 75 75 75 75 900
Training and development _ _ _ _ _ _ _ _ _ _ _ _ _
Non-operating cost _ _ _ _ _ _ _ _ _ _ _ _ _
Capital purchases _ _ _ _ _ _ _ _ _ _ _ _ _
Total cash out 23,044 16,655 17,755 16,655 18,155 13,483 15,804 12,304 12,504 12,504 12,504 12,504 184,588
Monthly cash flow -11,679 6,078 4,981 6,080 4,580 -2,098 -4,529 -1,229 -1,229 -1,229 -1,229 -1,229 -2,718
Beginning cash balance 30,498 18,819 24,897 29,878 35,958 40,538 38,440 33,911 32,682 31,453 30,224 28,995 30,498
Ending cash balance 18,819 24,897 29,878 35,958 40,538 38,440 33,911 32,682 31,453 30,224 28,995 27,766 27,780
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May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr total
Cash in
31,82 15,91 15,91
Cash sales 15,911 31,829 9 31,829 15,911 15,911 15,911 15,911 1 15,911 1 15,911 254,824
Collection from account receivables _ _ _ _ _ _ _ _ _ _ _ _ _
Equity received _ _ _ _ _ _ _ _ _ _ _ _ _
Loan received _ _ _ _ _ _ _ _ _ _ _ _ _
Cash out _ _ _ _ _ _ _ _ _ _ _ _ _
Inventory expenditure _ _ _ _ _ _ _ _ _ _ _ _ _
Production expense _ _ _ _ _ _ _ _ _ _ _ _ _
Operating expense
Advertising 210 210 210 210 210 210 210 210 210 210 210 210 2,520
Dues and subscription 550 _ _ _ _ _ _ _ _ _ _ _ 550
Insurance 3,630 _ _ _ _ 3,630 _ _ _ _ _ _ 7,260
Marketing and promotion 7,260 _ _ _ _ _ _ _ _ _ _ _ 7,260
Miscellaneous 235 500 500 500 500 255 255 255 255 255 255 255 4,074
Office expense 577 1,114 1,114 1,114 1,114 557 557 557 557 557 557 557 8,911
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _
Payroll expense
Salaries and wages 5,091 6,683 6,683 6,683 6,683 5,091 5,091 5,091 5,091 5,091 5,091 5,091 67,480
Payroll taxes 713 938 938 938 938 713 713 713 713 713 713 713 9,444
Benefits 102 134 134 134 134 102 102 102 102 102 102 102 1,349
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Utilities 1,734 3,489 3,489 3,489 3,489 1,734 1,734 1,734 1,734 1,734 1,734 1,734 27,752
Paid on account _ _ _ _ _ _ _ _ _ _ _ _ _
Non-operating cost _ _ _ _ _ _ _ _ _ _ _ _ _
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