Business Plan for Mobile Car Wash Services - Clean Rides
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This business plan focuses on Clean Rides, a mobile car wash service in the United States. It includes a written and visual pitch, customer needs and target market, social impact, financial plan, and more.
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1BUSINESS PLAN
Business Plan
Table of Contents
1.0 Business Plan Pitch......................................................................................1
1.1 Written Pitch..................................................................................................1
1.2 Visual Pitch....................................................................................................1
1.3 Backer Rewards............................................................................................2
2.0 Business Opportunity....................................................................................2
2.1 Customer Need and Target Market..............................................................2
2.2 Social Impact.................................................................................................3
2.3 Relevant Megatrend......................................................................................3
2.4 Similar Successful Campaign.......................................................................4
2.5 Opportunity Testing Plan...............................................................................4
3.0 Sales and Marketing Strategy.......................................................................4
3.1 Fundamentals...............................................................................................4
3.2 Social Media and Free Publicity....................................................................5
3.3 Measurement and Information......................................................................6
4.0 Operational Strategy.........................................................................................6
4.1 Operational Structure....................................................................................6
4.2 Outsourcing...................................................................................................6
4.3 Operational Risks..........................................................................................7
5.0 Financial Plan...................................................................................................7
5.1 Profit & Loss Statement and Balance Sheet.................................................7
5.2 Capital Requirements....................................................................................9
5.3 Valuation and Justifications........................................................................10
6.0 References......................................................................................................11
Business Plan
Table of Contents
1.0 Business Plan Pitch......................................................................................1
1.1 Written Pitch..................................................................................................1
1.2 Visual Pitch....................................................................................................1
1.3 Backer Rewards............................................................................................2
2.0 Business Opportunity....................................................................................2
2.1 Customer Need and Target Market..............................................................2
2.2 Social Impact.................................................................................................3
2.3 Relevant Megatrend......................................................................................3
2.4 Similar Successful Campaign.......................................................................4
2.5 Opportunity Testing Plan...............................................................................4
3.0 Sales and Marketing Strategy.......................................................................4
3.1 Fundamentals...............................................................................................4
3.2 Social Media and Free Publicity....................................................................5
3.3 Measurement and Information......................................................................6
4.0 Operational Strategy.........................................................................................6
4.1 Operational Structure....................................................................................6
4.2 Outsourcing...................................................................................................6
4.3 Operational Risks..........................................................................................7
5.0 Financial Plan...................................................................................................7
5.1 Profit & Loss Statement and Balance Sheet.................................................7
5.2 Capital Requirements....................................................................................9
5.3 Valuation and Justifications........................................................................10
6.0 References......................................................................................................11
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2BUSINESS PLAN
1.0 Business Plan Pitch
1.1 Written Pitch
Setting up of business plan that could be fun, profitable and an interesting
one is what a smart entrepreneur considers from the business perseverance
perspective. A Business plan with sound marketing plan, right area of location
and a top class notch services is what makes a new start-up idea for attracting
customers. The new start-up company that we will particularly be focusing is on
Mobile Car Wash Services. Customers requiring a quick and easy solution in
washing their cars quickly, effectively at an affordable rate will be served by us. A
Mobile Car Wash business service requires a significant amount of initial
investment of capital, a fine planning for the various business operations and a
well concise forecasted financials for the company. The trading name of the
company will be Clean Rides that will be having its operations in the United
States. An analysis of the available business opportunity, operational, marketing
and financial strategy will be well planned out to view and observe the designed
business plan.
1.2 Visual Pitch
A visual representation of the business operations that will be carried on
Clean Rides is visualized below where the three basic operation carried out by
the company such as Full Service of the car including hand wash, polishing and
detailing will be carried out and various other services as demanded by
customers.
1.0 Business Plan Pitch
1.1 Written Pitch
Setting up of business plan that could be fun, profitable and an interesting
one is what a smart entrepreneur considers from the business perseverance
perspective. A Business plan with sound marketing plan, right area of location
and a top class notch services is what makes a new start-up idea for attracting
customers. The new start-up company that we will particularly be focusing is on
Mobile Car Wash Services. Customers requiring a quick and easy solution in
washing their cars quickly, effectively at an affordable rate will be served by us. A
Mobile Car Wash business service requires a significant amount of initial
investment of capital, a fine planning for the various business operations and a
well concise forecasted financials for the company. The trading name of the
company will be Clean Rides that will be having its operations in the United
States. An analysis of the available business opportunity, operational, marketing
and financial strategy will be well planned out to view and observe the designed
business plan.
1.2 Visual Pitch
A visual representation of the business operations that will be carried on
Clean Rides is visualized below where the three basic operation carried out by
the company such as Full Service of the car including hand wash, polishing and
detailing will be carried out and various other services as demanded by
customers.
3BUSINESS PLAN
1.3 Backer Rewards
Capital Investment is the most crucial part in any new start-up venture
capital at the same time it carries a significant amount of risk. A higher risk to
reward ratio is always desired from Angel Investors and Funders in the form of
growth of the business operations, increasing profitability and customer base for
the company. Clean Rides operations and activities will be such that the
business operations would allow a sustainable growth along with better
profitability aspect for the equity shareholders of the company.
2.0 Business Opportunity
2.1 Customer Need and Target Market
The needs and demands of the car wash services and associated
services are highly linked with the performance of the economy as the economy
is going through a boom period where income level of the customer increases at
the same time, the same would be benefiting the company in the form of higher
1.3 Backer Rewards
Capital Investment is the most crucial part in any new start-up venture
capital at the same time it carries a significant amount of risk. A higher risk to
reward ratio is always desired from Angel Investors and Funders in the form of
growth of the business operations, increasing profitability and customer base for
the company. Clean Rides operations and activities will be such that the
business operations would allow a sustainable growth along with better
profitability aspect for the equity shareholders of the company.
2.0 Business Opportunity
2.1 Customer Need and Target Market
The needs and demands of the car wash services and associated
services are highly linked with the performance of the economy as the economy
is going through a boom period where income level of the customer increases at
the same time, the same would be benefiting the company in the form of higher
4BUSINESS PLAN
needs and demands. The Household customers almost account for the largest
share of car wash and detailing industry revenue which is approximately equal to
around 76% (JungleWorks, 2018). The Car Wash & Detailing Services will be
most probably used by consumers having a driving license, owning a car and are
most probably older than 18 years of age.
2.2 Social Impact
The mobile car wash services and auto detailing industry is one such
industry that gives an opportunity to unskilled workers than skilled worker giving
them an opportunity to learn and develop themselves improving basic car
services. The Industry provides around 218,877 employees an employment base
to work and earn their living (Team, 2018). As the basic services that will be
offered by the enterprise primarily will be in the field of washing, cleaning and
waxing services, the employees will be able to better adopt with the operations
and ways in which the work needs to be performed.
2.3 Relevant Megatrend
The car wash and Auto Detailing Industry is one of which the Mobile Car
Wash Business Currently belongs to is indeed a growing industry and is pretty
much a thriving industry in developed countries US, Canada, United Kingdom
and Australia. As analysed there is as such no leading companies that is
capturing a significant market share in this Industry (Wash, 2019). Statistics
states that there are around 65,494 licensed and registered car wash services
that are operating and employing around 218,877 employees, enabling the
industry to generate a whopping $12bn on an annual basis whereby the
needs and demands. The Household customers almost account for the largest
share of car wash and detailing industry revenue which is approximately equal to
around 76% (JungleWorks, 2018). The Car Wash & Detailing Services will be
most probably used by consumers having a driving license, owning a car and are
most probably older than 18 years of age.
2.2 Social Impact
The mobile car wash services and auto detailing industry is one such
industry that gives an opportunity to unskilled workers than skilled worker giving
them an opportunity to learn and develop themselves improving basic car
services. The Industry provides around 218,877 employees an employment base
to work and earn their living (Team, 2018). As the basic services that will be
offered by the enterprise primarily will be in the field of washing, cleaning and
waxing services, the employees will be able to better adopt with the operations
and ways in which the work needs to be performed.
2.3 Relevant Megatrend
The car wash and Auto Detailing Industry is one of which the Mobile Car
Wash Business Currently belongs to is indeed a growing industry and is pretty
much a thriving industry in developed countries US, Canada, United Kingdom
and Australia. As analysed there is as such no leading companies that is
capturing a significant market share in this Industry (Wash, 2019). Statistics
states that there are around 65,494 licensed and registered car wash services
that are operating and employing around 218,877 employees, enabling the
industry to generate a whopping $12bn on an annual basis whereby the
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5BUSINESS PLAN
projected growth rate for the industries is around 3.9% (IBISWorld - Industry
Market Research, Reports, and Statistics, 2019).
2.4 Similar Successful Campaign
There are various companies that are currently operating in the Carwash
Business Service and these are primarily Delta Sonic, Car Wash USA Express
are some of the key companies that are operating in the United States and have
successfully carried on their various business operations with the help of the
financing support that they have received from the Crowdsourcing Finance and
Angel Investors (The Size of the Car Detailing Market in the USA – autodub,
2017).
2.5 Opportunity Testing Plan
The planned mobile car wash services eliminates the business
requirement of a business location, thereby eliminating the needs for a physical
business location, limiting the amount of start-up capital required. Enabling a new
business with inexpensive equipment, tools and supplies are some of the key low
cost input for the business. However, as the market growth rises and so does the
business operations, the company will be expanding its business services in a
diversified range of business products and services. The growth rate taken into
consideration for the growth of business is same as industry which is around
3.9% (IBISWorld - Industry Market Research, Reports, and Statistics, 2019).
3.0 Sales and Marketing Strategy
3.1 Fundamentals
In order to develop an effective sales and marketing strategy for the
company it is important that the following are well carried out:
Identification and prioritization of customer needs by reaching out to new
customers and exploring business opportunities.
Identification of various other development opportunity associated with
the project and selling the same to the customer as a key success factor.
The pricing level decided by the sales team would be kept competitive
where low cost pricing and after sales services will be some of the key
highlights (Spiffy: The Mobile Car Wash Company Cleaning Up The On-
Demand Economy, 2019).
In order to better serve the customer with the various kinds of services
required and demanded the company will be enabling a 24*7 hours of
services to better serve the customers’ needs and demands.
A diversified range of business services and activities will be allowing the
company to meet the promotional strategy for the company.
projected growth rate for the industries is around 3.9% (IBISWorld - Industry
Market Research, Reports, and Statistics, 2019).
2.4 Similar Successful Campaign
There are various companies that are currently operating in the Carwash
Business Service and these are primarily Delta Sonic, Car Wash USA Express
are some of the key companies that are operating in the United States and have
successfully carried on their various business operations with the help of the
financing support that they have received from the Crowdsourcing Finance and
Angel Investors (The Size of the Car Detailing Market in the USA – autodub,
2017).
2.5 Opportunity Testing Plan
The planned mobile car wash services eliminates the business
requirement of a business location, thereby eliminating the needs for a physical
business location, limiting the amount of start-up capital required. Enabling a new
business with inexpensive equipment, tools and supplies are some of the key low
cost input for the business. However, as the market growth rises and so does the
business operations, the company will be expanding its business services in a
diversified range of business products and services. The growth rate taken into
consideration for the growth of business is same as industry which is around
3.9% (IBISWorld - Industry Market Research, Reports, and Statistics, 2019).
3.0 Sales and Marketing Strategy
3.1 Fundamentals
In order to develop an effective sales and marketing strategy for the
company it is important that the following are well carried out:
Identification and prioritization of customer needs by reaching out to new
customers and exploring business opportunities.
Identification of various other development opportunity associated with
the project and selling the same to the customer as a key success factor.
The pricing level decided by the sales team would be kept competitive
where low cost pricing and after sales services will be some of the key
highlights (Spiffy: The Mobile Car Wash Company Cleaning Up The On-
Demand Economy, 2019).
In order to better serve the customer with the various kinds of services
required and demanded the company will be enabling a 24*7 hours of
services to better serve the customers’ needs and demands.
A diversified range of business services and activities will be allowing the
company to meet the promotional strategy for the company.
6BUSINESS PLAN
3.2 Social Media and Free Publicity
The company will be reaching out customers with the well-established
business services that it aims to offer and associated benefits it is aiming to
provide. The possible ways that the company would be approaching for the
purpose of selling out and marketing of the various business activities will be in
the form of social media marketing, advertisement in newspaper, television and
distribution of pamphlets and business cards. Distribution of the business cards,
pamphlets and flyers would be helping the company in reaching out consumers
in a promised manner whereby it can provide a detail information about the
various business services provided (Best Full Service and Express Drive Thru
Car Wash | Autobell, 2019). In terms of social media marketing and
advertisements the company will be using both YouTube and Facebook as the
customer base that remains active in this platforms are currently larger in number
and the brand awareness about the product offered will be more effective.
3.2 Social Media and Free Publicity
The company will be reaching out customers with the well-established
business services that it aims to offer and associated benefits it is aiming to
provide. The possible ways that the company would be approaching for the
purpose of selling out and marketing of the various business activities will be in
the form of social media marketing, advertisement in newspaper, television and
distribution of pamphlets and business cards. Distribution of the business cards,
pamphlets and flyers would be helping the company in reaching out consumers
in a promised manner whereby it can provide a detail information about the
various business services provided (Best Full Service and Express Drive Thru
Car Wash | Autobell, 2019). In terms of social media marketing and
advertisements the company will be using both YouTube and Facebook as the
customer base that remains active in this platforms are currently larger in number
and the brand awareness about the product offered will be more effective.
7BUSINESS PLAN
3.3 Measurement and Information
The sales and marketing strategy for the company helps in well realizing
the success and various other plausible manner of the business and the same
would be judged and measured by the business with the help of the market
penetration of the various products and services that are offered by the company
in the due course of time-period analyzed. The company will be deploying
various course of actions and the changes in the deployed business activity so
that the business operation of the company increase in the trend period analyzed
(Association, 2019).
4.0 Operational Strategy
4.1 Operational Structure
The operational structure of the company should be helping the company
in carrying out various business activity for the company. The management of the
company will be designing the various business responsibilities and courses of
actions that the company will be carrying on. The owner of the company Tom
Karman will be overlooking the business activity of the company and the various
courses of business activity will be defined in such a manner so that it helps in
better management of the various business activity that is carried on by the
company (PC Mobile Car Wash, 2019). The operations of the company would be
well overlooked and controlled by the manager of the company, Austin Grey
Martin and the financial aspects of the business will be seen by Tom Brown. In
terms of supply needs the company will be requiring various business supplies in
the form of equipment’s, materials and tools that would be necessary for carrying
on the various business operations for the company in the trend period.
4.2 Outsourcing
Operational strategy for the company will be designed in such a manner
thereby enabling and allowing the business consumers for the purpose of
increasing business activity of the company. The operational jobs that is required
for carrying on the various business activity that will be especially in the field of
cleaning, waxing and auto detailing skills that is required for carrying on the
business activities effectively (Rich’s Car Wash, 2017). Outsourcing of the other
management activities like financial and marketing job positions that is carried on
by the company will be full filed with the help of marketing and financial manager
where candidates that have successful experience in the management and
carrying on various business operations will be helping them in successfully
operating the business. The position for the operational activity will be full filed
with the help of the direct interview and assessment of the candidates in terms of
their work knowledge and their willingness in carrying the operations of the
company (The 2018 Top 50 List of Conveyor Carwashes | Professional
Carwashing & Detailing, 2018).
3.3 Measurement and Information
The sales and marketing strategy for the company helps in well realizing
the success and various other plausible manner of the business and the same
would be judged and measured by the business with the help of the market
penetration of the various products and services that are offered by the company
in the due course of time-period analyzed. The company will be deploying
various course of actions and the changes in the deployed business activity so
that the business operation of the company increase in the trend period analyzed
(Association, 2019).
4.0 Operational Strategy
4.1 Operational Structure
The operational structure of the company should be helping the company
in carrying out various business activity for the company. The management of the
company will be designing the various business responsibilities and courses of
actions that the company will be carrying on. The owner of the company Tom
Karman will be overlooking the business activity of the company and the various
courses of business activity will be defined in such a manner so that it helps in
better management of the various business activity that is carried on by the
company (PC Mobile Car Wash, 2019). The operations of the company would be
well overlooked and controlled by the manager of the company, Austin Grey
Martin and the financial aspects of the business will be seen by Tom Brown. In
terms of supply needs the company will be requiring various business supplies in
the form of equipment’s, materials and tools that would be necessary for carrying
on the various business operations for the company in the trend period.
4.2 Outsourcing
Operational strategy for the company will be designed in such a manner
thereby enabling and allowing the business consumers for the purpose of
increasing business activity of the company. The operational jobs that is required
for carrying on the various business activity that will be especially in the field of
cleaning, waxing and auto detailing skills that is required for carrying on the
business activities effectively (Rich’s Car Wash, 2017). Outsourcing of the other
management activities like financial and marketing job positions that is carried on
by the company will be full filed with the help of marketing and financial manager
where candidates that have successful experience in the management and
carrying on various business operations will be helping them in successfully
operating the business. The position for the operational activity will be full filed
with the help of the direct interview and assessment of the candidates in terms of
their work knowledge and their willingness in carrying the operations of the
company (The 2018 Top 50 List of Conveyor Carwashes | Professional
Carwashing & Detailing, 2018).
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8BUSINESS PLAN
4.3 Operational Risks
The operational strategy carried on by the company should be such so
that it helps the management of the company in carrying on the various activities
effectively and efficiently. The key operational risks that the company may run in
the due course of the business process can be primarily in the field of increasing
costs for the company and the efficiency in the utilization of the assets of the
company whereby the business activities for the company will be carried on in
the trend period analyzed (The Car Wash Industry: Disruptive or continuative,
2018). The operational and direct expenses will be expensed by the company will
be acting as a fixed expenses for the company and the management of the
company should be taking several necessary steps in order to curb reduce or
manage the same effectively.
5.0 Financial Plan
5.1 Profit & Loss Statement and Balance Sheet
Profit and Loss Statement: The financial analysis for the company has been
done with the help of forecasting of the financial expenses for the company for
the stated three years point of time. The profit and loss statement for the
company will be including all the possible sources of revenue that the company
will be generating and the associated expenses that the company will be
incurring with respect to the same. The profitability that the company will be
generating in the due course of time period will be allowing and enabling the
company as a reinvestment source that would be well applied for the purpose of
finance source for the company. The revenue that would be earned by the
company in the first year of operations will be around $350,000 and the same will
be expected to increase at a 5% rate. The associated cost of goods sold for the
company will be around 40% (On-Demand Mobile Car Wash & Detailing -
NuWash Car Wash, 2019).
The return generated from the company in the first year of operation will
be around 29% that is around $114,210 will be the net profitability. The growth of
the profitability for the company will be as per the growth in the revenue base for
the company where the associated profitability for the company is expected to
rise in the trend period analyzed for the company. The return generated from the
company in the second year will be around 37% and in the final third year the
return generated will be around 42% for the company. The expenses that the
company will be incurring primarily will be in the field of premises expenses
where necessary equipment, tools and accessories will be kept. On the other
hand, key expenses like wages, salaries, accountant fees, sales and marketing
expenses, preliminary expenses will be some of the key expenses that the
company will be incurring in the due time period analyzed. The total Operational
expenses that the company will be incurring in the first year will be around
4.3 Operational Risks
The operational strategy carried on by the company should be such so
that it helps the management of the company in carrying on the various activities
effectively and efficiently. The key operational risks that the company may run in
the due course of the business process can be primarily in the field of increasing
costs for the company and the efficiency in the utilization of the assets of the
company whereby the business activities for the company will be carried on in
the trend period analyzed (The Car Wash Industry: Disruptive or continuative,
2018). The operational and direct expenses will be expensed by the company will
be acting as a fixed expenses for the company and the management of the
company should be taking several necessary steps in order to curb reduce or
manage the same effectively.
5.0 Financial Plan
5.1 Profit & Loss Statement and Balance Sheet
Profit and Loss Statement: The financial analysis for the company has been
done with the help of forecasting of the financial expenses for the company for
the stated three years point of time. The profit and loss statement for the
company will be including all the possible sources of revenue that the company
will be generating and the associated expenses that the company will be
incurring with respect to the same. The profitability that the company will be
generating in the due course of time period will be allowing and enabling the
company as a reinvestment source that would be well applied for the purpose of
finance source for the company. The revenue that would be earned by the
company in the first year of operations will be around $350,000 and the same will
be expected to increase at a 5% rate. The associated cost of goods sold for the
company will be around 40% (On-Demand Mobile Car Wash & Detailing -
NuWash Car Wash, 2019).
The return generated from the company in the first year of operation will
be around 29% that is around $114,210 will be the net profitability. The growth of
the profitability for the company will be as per the growth in the revenue base for
the company where the associated profitability for the company is expected to
rise in the trend period analyzed for the company. The return generated from the
company in the second year will be around 37% and in the final third year the
return generated will be around 42% for the company. The expenses that the
company will be incurring primarily will be in the field of premises expenses
where necessary equipment, tools and accessories will be kept. On the other
hand, key expenses like wages, salaries, accountant fees, sales and marketing
expenses, preliminary expenses will be some of the key expenses that the
company will be incurring in the due time period analyzed. The total Operational
expenses that the company will be incurring in the first year will be around
9BUSINESS PLAN
$69,000 and the same is expected to increase at a 5% rate which has been well
done and incorporated by us with the help of the various business operational
expenses that the company will be incurring.
PROFIT AND LOSS FORECAST & ROI
Year 0 1 2 3
Revenue 0 350,000 420,000 504,000
Cost of sales 0 140,000 168,000 201,600
Gross profit 0 210,000 252,000 302,400
Gross Margin 235,790 272,438 318,442
Expenses/overheads
Premises (rent, rates) 20,000 21,000 22,050
Wages and salaries 30,000 31,500 33,075
General expenses 1,250 1,313 1,378
Accountant Fees 500 525 551
Payroll Tax 3,000 3,150 3,308
Utilities 2,500 2,625 2,756
Sales and Marketing 7,500 7,875 8,269
Postage & Telephone 500 525 551
Repairs and Maintenance 750 788 827
Preliminary expenses 500 525 551
Lease Payments 2,500 2,625 2,756
Total expenses/overheads 69,000 69,825 73,316
Profit before tax 141,000 182,175 229,084
Tax @ 19% 26,790 34,613 43,526
Before tax net margin 40% 43% 45%
Profit after tax 114,210 147,562 185,558
Transfer to reserves 114,210 147,562 185,558
Particulars Year 1 Year 2 Year 3
Return on Investment 29% 37% 42%
Balance Sheet: The balance sheet of the company was prepared with the help
of the stated balance for the various assets and liabilities position for the
company in the stated time period. The financial statement of the company will
be containing important information and that will be primarily including various
aspects of the financials of the company. The asset position of the company will
be financed with both the equity and debt source of finance. The investment that
will be done by the company in the first year of operation primarily will be in the
key assets of the company like the purchase of equipment, tools and office
building that further will be used for the purpose of various business operations.
$69,000 and the same is expected to increase at a 5% rate which has been well
done and incorporated by us with the help of the various business operational
expenses that the company will be incurring.
PROFIT AND LOSS FORECAST & ROI
Year 0 1 2 3
Revenue 0 350,000 420,000 504,000
Cost of sales 0 140,000 168,000 201,600
Gross profit 0 210,000 252,000 302,400
Gross Margin 235,790 272,438 318,442
Expenses/overheads
Premises (rent, rates) 20,000 21,000 22,050
Wages and salaries 30,000 31,500 33,075
General expenses 1,250 1,313 1,378
Accountant Fees 500 525 551
Payroll Tax 3,000 3,150 3,308
Utilities 2,500 2,625 2,756
Sales and Marketing 7,500 7,875 8,269
Postage & Telephone 500 525 551
Repairs and Maintenance 750 788 827
Preliminary expenses 500 525 551
Lease Payments 2,500 2,625 2,756
Total expenses/overheads 69,000 69,825 73,316
Profit before tax 141,000 182,175 229,084
Tax @ 19% 26,790 34,613 43,526
Before tax net margin 40% 43% 45%
Profit after tax 114,210 147,562 185,558
Transfer to reserves 114,210 147,562 185,558
Particulars Year 1 Year 2 Year 3
Return on Investment 29% 37% 42%
Balance Sheet: The balance sheet of the company was prepared with the help
of the stated balance for the various assets and liabilities position for the
company in the stated time period. The financial statement of the company will
be containing important information and that will be primarily including various
aspects of the financials of the company. The asset position of the company will
be financed with both the equity and debt source of finance. The investment that
will be done by the company in the first year of operation primarily will be in the
key assets of the company like the purchase of equipment, tools and office
building that further will be used for the purpose of various business operations.
10BUSINESS PLAN
The total sum of investment that the company will be making in the purchase of
asset primarily will be around $275,000 and the same is expected to increase as
the business operations for the company increases.
Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $233,960 $256,409 $275,592
Accounts receivable $350,000 $367,500 $385,875
Total current assets $583,960 $623,909 $661,467
Fixed (Long-Term) Assets
Vehicles $50,000 $60,000 $52,500
Furniture $75,000 $32,000 $25,600
Equipment $150,000 $96,000 $76,800
(Less accumulated depreciation) $47,500 $39,500 $33,100
Total fixed assets $227,500 $148,500 $121,800
Total Assets $811,460 $772,409 $783,267
Liabilities and Owner's Equity
Current Liabilities
Accounts payable $2,000 $2,500 $2,750
Accrued Rent $20,000 $21,000 $22,050
Bank Charges Payable $500 $750 $900
Short-term loans $0 $0 $0
Income taxes payable $26,790 $28,628 $30,060
Accrued salaries and wages $30,000 $31,500 $33,075
General Expenses $1,250 $1,313 $1,378
Lease Payment $2,500 $2,625 $2,756
Current portion of long-term debt $0 $0 $0
Total current liabilities $83,040 $88,316 $92,969
Long-Term Liabilities
Long-term debt $100,000 $50,000 $0
Less: Loan Repayment $50,000 $50,000
Total long-term liabilities $100,000 $0 -$50,000
Owner's Equity
Owner's investment $400,000 $440,000 $484,000
Net Profits $114,210 $122,047 $128,149
Reserve and Surplus $114,210 $122,047 $128,149
Total owner's equity $628,420 $684,094 $740,298
Total Liabilities and Owner's Equity $811,460 $772,409 $783,267
The total sum of investment that the company will be making in the purchase of
asset primarily will be around $275,000 and the same is expected to increase as
the business operations for the company increases.
Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $233,960 $256,409 $275,592
Accounts receivable $350,000 $367,500 $385,875
Total current assets $583,960 $623,909 $661,467
Fixed (Long-Term) Assets
Vehicles $50,000 $60,000 $52,500
Furniture $75,000 $32,000 $25,600
Equipment $150,000 $96,000 $76,800
(Less accumulated depreciation) $47,500 $39,500 $33,100
Total fixed assets $227,500 $148,500 $121,800
Total Assets $811,460 $772,409 $783,267
Liabilities and Owner's Equity
Current Liabilities
Accounts payable $2,000 $2,500 $2,750
Accrued Rent $20,000 $21,000 $22,050
Bank Charges Payable $500 $750 $900
Short-term loans $0 $0 $0
Income taxes payable $26,790 $28,628 $30,060
Accrued salaries and wages $30,000 $31,500 $33,075
General Expenses $1,250 $1,313 $1,378
Lease Payment $2,500 $2,625 $2,756
Current portion of long-term debt $0 $0 $0
Total current liabilities $83,040 $88,316 $92,969
Long-Term Liabilities
Long-term debt $100,000 $50,000 $0
Less: Loan Repayment $50,000 $50,000
Total long-term liabilities $100,000 $0 -$50,000
Owner's Equity
Owner's investment $400,000 $440,000 $484,000
Net Profits $114,210 $122,047 $128,149
Reserve and Surplus $114,210 $122,047 $128,149
Total owner's equity $628,420 $684,094 $740,298
Total Liabilities and Owner's Equity $811,460 $772,409 $783,267
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11BUSINESS PLAN
5.2 Capital Requirements
The company will be starting up there business operations with the help of
$500,000 of investment capital and the same will be used by the company for the
purpose of various operational and investing activity that will be carried on for the
financial year. The investment that will be done by the company in the first year
of operation primarily will be in the key assets of the company like the purchase
of equipment, tools and office building that further will be used for the purpose of
various business operations. The total sum of investment that the company will
be making in the purchase of asset primarily will be around $275,000 and the
same is expected to increase as the business operations for the company
increases. The capital investment that will be required by the company will be
primarily filled with the equity financing contributing around 80% of the total
capital and at the same time the same will also be full filed with the help of debt
financing will be contributing 20% of the finance required.
5.3 Valuation and Justifications
The valuation of the business will be done with the help of the payback
period and the financial ratio analysis. The payback period for the business
investment will be around 3.28 years and the same will be helping the company
judge or assess the financial position.
Payback Period Year 0 Year 1 Year 2 Year 3
Amount Invested (Equity) -400,000
Final cash Flows Received
114,21
0
122,04
7
128,14
9
Total Cash Inflows 364,406
Payback/Amount Recovered -400000
-
285,79
0
-
163,74
3 -35,594
Payback Period 0 1 2 1.28
Total Payback Period (In Years) 3.28
5.2 Capital Requirements
The company will be starting up there business operations with the help of
$500,000 of investment capital and the same will be used by the company for the
purpose of various operational and investing activity that will be carried on for the
financial year. The investment that will be done by the company in the first year
of operation primarily will be in the key assets of the company like the purchase
of equipment, tools and office building that further will be used for the purpose of
various business operations. The total sum of investment that the company will
be making in the purchase of asset primarily will be around $275,000 and the
same is expected to increase as the business operations for the company
increases. The capital investment that will be required by the company will be
primarily filled with the equity financing contributing around 80% of the total
capital and at the same time the same will also be full filed with the help of debt
financing will be contributing 20% of the finance required.
5.3 Valuation and Justifications
The valuation of the business will be done with the help of the payback
period and the financial ratio analysis. The payback period for the business
investment will be around 3.28 years and the same will be helping the company
judge or assess the financial position.
Payback Period Year 0 Year 1 Year 2 Year 3
Amount Invested (Equity) -400,000
Final cash Flows Received
114,21
0
122,04
7
128,14
9
Total Cash Inflows 364,406
Payback/Amount Recovered -400000
-
285,79
0
-
163,74
3 -35,594
Payback Period 0 1 2 1.28
Total Payback Period (In Years) 3.28
12BUSINESS PLAN
6.0 References
Wash, S. (2019). Automatic Car Wash | Car Wash Business | Car Wash
Franchise | Car Cleaning Equipments . Speed Car Wash. Retrieved 7 September
2019, from http://www.speedcarwash.com/
The Size of the Car Detailing Market in the USA - autodub. (2017). autodub.
Retrieved 7 September 2019, from https://autodub.com/car-detailing-market-usa/
Best Full Service and Express Drive Thru Car Wash | Autobell. (2019). Autobell.
Retrieved 7 September 2019, from https://www.autobell.com/
Association, I. (2019). Car Wash Industry Information . Carwash.org. Retrieved 7
September 2019, from https://www.carwash.org/for-operators/industry-
information
www.polishclean.com - PC Mobile Car Wash. (2019). www.polishclean.com.
Retrieved 7 September 2019, from https://www.pcmobilecarwash.com/
Rich’s Car Wash. (2017). OxyShark. Retrieved 7 September 2019, from
http://oxyshark.com/case-studies/richs-car-wash/
The 2018 Top 50 List of Conveyor Carwashes | Professional Carwashing &
Detailing. (2018). Professional Carwashing & Detailing. Retrieved 7 September
2019, from https://www.carwash.com/2018-top-50-list-conveyor-carwashes/
Spiffy: The Mobile Car Wash Company Cleaning Up The On-Demand Economy.
(2019). Forbes.com. Retrieved 7 September 2019, from
https://www.forbes.com/sites/julianmitchell/2017/03/22/spiffy-the-mobile-car-
wash-company-reshaping-the-on-demand-economy/#6af4bd91cfe8
The Car Wash Industry: Disruptive or continuative?. (2018). JungleWorks.
Retrieved 7 September 2019, from https://jungleworks.com/the-car-wash-
industry-disruptive-or-continuative/
On-Demand Mobile Car Wash & Detailing - NuWash Car Wash .
(2019). Nuwashcarwash.com. Retrieved 7 September 2019, from
https://nuwashcarwash.com/
IBISWorld - Industry Market Research, Reports, and Statistics.
(2019). Ibisworld.com. Retrieved 7 September 2019, from
https://www.ibisworld.com/united-states/market-research-reports/car-wash-auto-
detailing-industry/
6.0 References
Wash, S. (2019). Automatic Car Wash | Car Wash Business | Car Wash
Franchise | Car Cleaning Equipments . Speed Car Wash. Retrieved 7 September
2019, from http://www.speedcarwash.com/
The Size of the Car Detailing Market in the USA - autodub. (2017). autodub.
Retrieved 7 September 2019, from https://autodub.com/car-detailing-market-usa/
Best Full Service and Express Drive Thru Car Wash | Autobell. (2019). Autobell.
Retrieved 7 September 2019, from https://www.autobell.com/
Association, I. (2019). Car Wash Industry Information . Carwash.org. Retrieved 7
September 2019, from https://www.carwash.org/for-operators/industry-
information
www.polishclean.com - PC Mobile Car Wash. (2019). www.polishclean.com.
Retrieved 7 September 2019, from https://www.pcmobilecarwash.com/
Rich’s Car Wash. (2017). OxyShark. Retrieved 7 September 2019, from
http://oxyshark.com/case-studies/richs-car-wash/
The 2018 Top 50 List of Conveyor Carwashes | Professional Carwashing &
Detailing. (2018). Professional Carwashing & Detailing. Retrieved 7 September
2019, from https://www.carwash.com/2018-top-50-list-conveyor-carwashes/
Spiffy: The Mobile Car Wash Company Cleaning Up The On-Demand Economy.
(2019). Forbes.com. Retrieved 7 September 2019, from
https://www.forbes.com/sites/julianmitchell/2017/03/22/spiffy-the-mobile-car-
wash-company-reshaping-the-on-demand-economy/#6af4bd91cfe8
The Car Wash Industry: Disruptive or continuative?. (2018). JungleWorks.
Retrieved 7 September 2019, from https://jungleworks.com/the-car-wash-
industry-disruptive-or-continuative/
On-Demand Mobile Car Wash & Detailing - NuWash Car Wash .
(2019). Nuwashcarwash.com. Retrieved 7 September 2019, from
https://nuwashcarwash.com/
IBISWorld - Industry Market Research, Reports, and Statistics.
(2019). Ibisworld.com. Retrieved 7 September 2019, from
https://www.ibisworld.com/united-states/market-research-reports/car-wash-auto-
detailing-industry/
13BUSINESS PLAN
JungleWorks. (2018). The Car Wash Industry: Disruptive or continuative?.
[online] Available at: https://jungleworks.com/the-car-wash-industry-disruptive-or-
continuative/ [Accessed 7 Sep. 2019].
Team, W. (2018). 12 Shocking Statistics About the Car Wash Industry That You
Need to Know. Washos Blog. Retrieved 7 September 2019, from
https://www.washos.com/blog/statistics-car-wash-industry/
JungleWorks. (2018). The Car Wash Industry: Disruptive or continuative?.
[online] Available at: https://jungleworks.com/the-car-wash-industry-disruptive-or-
continuative/ [Accessed 7 Sep. 2019].
Team, W. (2018). 12 Shocking Statistics About the Car Wash Industry That You
Need to Know. Washos Blog. Retrieved 7 September 2019, from
https://www.washos.com/blog/statistics-car-wash-industry/
1 out of 13
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