Journal of Financial Economics docx

The topic for this assignment is Starting a mobile steam car wash business in Penang, Malaysia.

Business Plan
Student Name
University Name

Introduction
Perth Rides, will be providing a mobile
steam car wash service.
Service will be provided in Penang,
Malaysia.
Perth Rides will serve large numbers of
customers who wishes to have a car
service done at a convenient location,
efficiently and at reasonable pricing.
A mobile car wash business omits
physical business location thereby
limiting the initial cost for a start up
business

Industry analysis
In Malaysia there are high rate of car owners
(28.2 million in 2017).
Presence of competitors like Mr. Clean and
Gamble car wash might threaten the profitability
of Perth Rides.
Perth Rides provide mobile steam car wash
service which is a competitive advantage.
There are various self service establishments in
the Car wash industry
Revenue can be derived from taxi drivers, Uber
drivers, car rentals, truck business and other
delivery vans.
Majority of these consumer segments are
incapable of affording in house car house
services, which is favorable for Perth Rides.

Definition of the business
The core business operations will be car washing and
maintenance service.
There will be no physical location of the business,
rather the services will be provided to the customers
at their doorstep or at the location which is
convenient for the customers.
The request can be provided by call or placed online
through the website of Perth Rides.
The services will be provided to the entire
community in Penang both individual and corporate
customers.
The service will be provided with special and high
quality machines and chemicals, training service
providers.
The business organization will be a symbol of quality
and profit.

Services provided to
customers
Location selection facility
Maintenance and polishing services
Experienced workers and training workmen
Car detailing
On time service (prompt and convenient cash
wash service)
Guaranteed cleaning in 30 minutes
Advanced and latest cashing equipments and
supplies
Eco friendly techniques for car washing
Professional and reliable cleaning services
24*7 IT service

Business feasibility
-Demand analysis
10% growth rate in
new car owners in
Malaysia
8% increase in new
and used car dealers
in the country
10% increase in
lifetime car owners
Overall, there have
been 12.28% of
potential customers
in the country

Potential risks in business
Extreme or unfavourable working
conditions such as heavy rainfall or
stormy days
No physical location
Expensive steam wash equipment
Climate change might disrupt smooth
working conditions
Water drainage/run off water
Presence of tough players in the market
Have negative environmental impact if
not treated effectively.

Organization and
management
Vision statement – The vision of the business
organization to be the top car wash service
provider in Penang, Malaysia, with active presence
in this area.
Mission statement – The mission of Perth Rides
is to provide exception service to the customers
and develop highly successful and profitable
business. The mission of the organization is to
reduce the work load of washing the cars of the
customers and providing valuable, eco friendly
services to the customers. It is the mission of the
organization to provide high quality services and
become standard service provider in Penang
Malaysia.

Structure of Business

Operational consideration
For the operations, only 4 liter of
water would be required for the
cash wash.
Chemical cleaners, sanitizers,
materials and dusters are
required for scrubbing vehicle
surfaces.
Steam cleaners would be
required for the car wash and car
cleaning

Marketing arrangements
Target market - The business people,
households, corporate employees using cars
daily , taxi drivers, car rental companies,
transport companies and the car dealership
shops. Higher and middle income group
consumers are to be targeted who can afford a
steam car wash service offered by Perth Rides.
Pricing strategy- competitive pricing policy
Distribution strategy - The service will be
provided to the customer in the location as
preferred and requested by the customer
Promotion and advertising strategy -
social media, flyers , word of mouth, referrals
and digital forms of marketing.

Estimated expenditure
Expenditure Cost (approx.)
Business registering in Penang, Malaysia $750
Legal expenses, license and permits $1500
Marketing and advertising $3000
Other startup expenses $1000
Phone and Utility deposits $3500
Operation cost (first 3 months) $40,000
Auto detailing equipments
-Carpet Extractor
-Vacuum/Air Freshener
-steam cleaner
-lights
Others
$ 8000
Cost of purchasing a furniture and gadgets $4000
Cost of launching websites $4,00

Projected cash flow

References
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