Car Wash Business Plan - Doc

Port Louis Automatic Car
Wash Centre

Executive Summary
This report has discussed the business project of innovative business plan of Automatic
car wash business which has included about the business idea an opportunities of the business.
This report also has included the basic idea behind automatic car wash business and the total
investment required for the project. Also , this has included the market feasibility of the project
what are the various opportunities, threats, its strengths and weaknesses, which is done by
conducting SWOT analysis of the project. In order to face the macro-environmental challenges
project manager has conducted the PESTLE analysis. Also, this report has included what will be
the target market of the business and it is financially feasible for the entrepreneur.

TABLE OF CONTENTS
1.0 Business Idea and Opportunity Analysis...................................................................................1
2.0 Investment of the project- Port Louis Auto-Car Wash Centre..................................................2
3.0 Market Feasibility......................................................................................................................3
4.0 Target Market and Pricing strategy...........................................................................................7
5.0 Financial Feasibility...................................................................................................................8
Overall Synthesis and Conclusion...................................................................................................8
REFERENCES..............................................................................................................................10

1.0 Business Idea and Opportunity Analysis
Mauritius is an island nation which is popular place of beaches reefs and lagoons. It is
also one the best tourist spot in the world and has been attracting the tourists across the world.
Mauritius as a country has been developing and is also one of densely populated country in the
world. Also the economy of the country has improving which has resulted in improvements in
standard of living of people across Mauritius. There are more than 543,623 vehicles which are
registered at the NTA (National Transport Authority) which means that there has been an
increase of 11,826 vehicles in 2018 as compared to 2017 which is 2.2 percent rise. Port Louis is
the capital of Mauritius, it is the city which is located at Port Louis District. Being the capital of
Mauritius it is most densely populated city in the country and its roads are always full of traffic
and has huge automotive sector (Althoff Philippi and et.al., 2015). Port Louis is in semi-arid
climate has got the wettest months which is from December to April in which more rain falls
takes place during these months. Also, the economy of this city is well stable and people are in
middle and high income level. This is also full of vehicles, so setting an Automatic car wash
business in Port Louis is the best business plan and it is also one the best profitable business in
the world. On average it costs $6.3 to wash a car in Mauritius on any non-automatic car wash
bay but people to willing to pay up to $15 for up-graded car wash bays. Which means that there
is a vast opportunity within this business in Port Louis. Therefore, a business idea to set
Automatic car wash centre is with 5 bays will be the best business plan which also includes
various car care packs. The company will be registered as Port Louis Auto-Car Wash Centre.
Basic Idea of Automatic Car wash system.
As per the views of Morgan, (2015) Automatic car is an open bay where a car sits inside the bay
and the car is washed without any human efforts. Basic idea behind this innovative car washing
business is that a driver has pay for different level of car washing which includes simple car
wash at first level, valeting pack which includes eco-steam roof, detailing pack which includes
polishing and rubbing and last is All in one pack which includes all three levels of car washing
service. This system also has got various benefits for the customer as customer will get various
type of automatic car washing service in a minimum amount of time it will take minimum 1 hour
for a customer if he/she chooses the All in one pack. It will prove time saving with high quality
of services to customers. Also, automatic car was bay uses less space as compared to traditional
bays which take lots of space. This system will also save huge amount of water which is the one
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of the major concern for the entrepreneur (Oesterreich and Teuteberg, 2016). This system was
designed to improve the quality of car wash within minimum amount of time, as traditionally
customers used to wait for hours in order to get their car washed. This, system will also save cost
of human resource where more work will be done by machines or robots and entrepreneur will
not have to pay to men in for car which requires the huge investment of hiring and providing
salary. It will require on 4 men for 4 bays in order to operate the machine.
Details about products and services
Port Louis Auto-Car wash centre is an automatic car washing centre which consist of 4 bays for
car washing and its innovative background will be as:
Following are the services which will be provided at different level of car washing which are :
 Simple car wash at first level
 Valeting pack which includes e
 co-steam roof in second level
 Detailing pack which includes polishing and rubbing third level.
 All in one pack which includes all three levels of car washing service at fourth level.
2.0 Investment of the project- Port Louis Auto-Car Wash Centre.
This project will require a good amount of investment as it will include 4 automatic car
wash machines, a land and investment for constructing a building. This project will be invested
by Avenport Investment group which is privately held by Mauritian family which has its
headquarters at Port Louis. This investment group has interest in various sectors like innovative
transport, new technologies, advisory services etc. So, this investment company will be the
option for investing this project, as this company has got an experience of 15 years within the
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field of investment. This project will cost approximately 30.05 million in MUR and the
automatic system will be licensed and implemented by Magicwash 360 which design the latest
bays of car wash with touchless car wash equipments. It is the high automatic plat from of car
wash with Nissan's technology inbuilt. It is has got substantially fast wash speed leads which will
increase the vehicle throughput and will result in shorter lines which will make customer happy
and delighted. It has got the simplified machine design and consumer low energy and its utility
usage will minimise the operating cost which will result in more profitable car wash operations.
Project Investment Outlay In Millions
Cost of Machines 17 x 4 6.8 MUR
Cost of land 0.5 Acres 6.25 MUR
Cost of Building 5 MUR
Working Capital 12 MUR
Total investment outlay 30.05 MUR
3.0 Market Feasibility
Car washing in one of the major business and has got exponential growth in this sector
with increase standard of living people are willing to pay more for the better services. As per the
reports it is estimated that customer spends $5.8 billion within the car wash business annually in
Mauritius and on average almost 20,000 cars gets washed annually. There is also an average
gross revenue of $9.56 per car wash which is higher profits margin when converted in Mauritius
Rupees. By setting an Automatic car wash centre this profit margin may also increase as there
are number of extra services which will be offered to customers. On average automatic car wash
bay has the capability to generate the revenue of $139,000 per year and has also an ability to
provide the net profit of $86,531 and on average the price that will be charged for washing a car
will be $6.34 per car which is huge revenue as per the Mauritius currency. As there is very busy
life in Port Louis and people living there want fast and speedy service for their cars as they don't
want to wait for hours in line that too with less quality of service (Simonse, Hultink and Buijs,
2015). There is also a high market feasibility of this business as it results in less water
consumption which can save the cost of water and also generates less waste. Also, company can
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make use of recycled water and has got more environmental friendly products. Automatic car
wash centre has the ability to offer quality services to customers in minimum amount of time,
also there are various attractive packages of car wash depending upon the customers
affordability. Company's 4 level packages can generate high customer attraction like for first
level normal car wash they have pay only 250 MUR, for second level valeting pack they can pay
300 MUR, for 3rd level detailing pack customer has to pay only 350 MUR nad for last All-in-
one pack customer gets full fledged car wash service of only 400 MUR. Which is enough to gain
the customers attraction and also customer will be willing to pay for these types of services
which will be provided in Port Louis Auto-Car Wash Centre. So, the market feasibility is very
high for the company's business.
Illustration 1: Number of Registered Vehicles in 2018
(Source: Mauritius Number of Registered Vehicles, 2018)
SWOT Analysis:
Swot analysis can be used to analyse or discover the strengths and over come the
shortcomings of the project. It is a simple framework which can be used by a project manager to
focus on the strengths of the project and try to minimise the threats and weaknesses by taking
the huge possible opportunities which are available for the project. It can help the project
manager to evaluate the current position of the business plan and making comparison with future
opportunities and risks being faced. Swot analysis of this project can be conducted below:
Strengths Weaknesses
 It is the first fully automatic car wash  This project will require huge capital
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centre in Port Louis which can help the
company to generate huge profits for
the business.
 Rise in demand of automatic car wash
which is also the strength for the
project.
 Highly efficient system which can
decrease the operating cost for the
company which will generate high
profit margin for the company (Aithal
and Kumar, 2015).
 It can save time and money for the
customer is the major reason for the
success of this project.
investment which is a challenging task
to make available for the project.
 Delay in implementation of machinery
from the supplier can be a weakness of
the project.
 Regular maintenance cost for
machinery can also be one of major
weakness of this project.
 As this machinery is new lack of skilled
staff to operate the machinery can be
another weaknesses of the project.
 Another weakness of this project is
inefficient allocation of budget to
various tasks which are to be
performed.
Opportunities Threats
 High profit margins of this system can
result in increase the profits for the
business.
 Additional service which are offered to
the customers can help in generating
huge amount of revenue for the
company.
 Improvement technologies can result in
up gradation in the technical system
which can future improve the quality of
service which will be offered to
customers.
 Sifting of people from traditional car
was system and semi-automatic
 Threat from the competitors is one of
the major threat for this project.
 Adoption of same technology by the
competitors is also the major threat for
the business.
 Mechanical failure can also be the
major risk for this project as it can
result in high maintenance cost for the
company which can decrease the profits
margins for the company (Sammut‐
Bonnici and Galea, 2015).
 Unsuitable location for the plant may
be another risk for this project as bad
location can decrease the inflow of
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systems to fully automatic car wash
system can be one of the major
opportunities for the company.
 Increase in number of cars in Mauritius
is also the major opportunity available
for the company
customer towards the Automatic car
wash centre.
 New technology of car wash system
can be also the major threat for the
company as it will the company's car
washing technology obsolete. This can
result in loss of the business if company
fails to face technological change.
PESTLE Analysis of Port Louis Automatic Car Wash Centre.
Pestle analysis is a framework or a type of tool which is used to analyse as well as
monitor the external or macro-environmental factors which have an impact on the project. Pestle
analysis is typically best when starting a new business or a new project in order to enter the new
markets. It can be helpful for the entrepreneurs to analyse the external macro-environmental
factors which can help in assessing these factors which can help in meeting the challenges of
various environmental factors of the business. Various environmental factors which can be
analysed for this project are as follows:
Political factors: Political factors have the major impact on this project which can result in the
success of the project. It is important for the project manager to political factors in concern in
order to smoothly implement this project (Aithal, 2017). Local government of Port Louis as well
as National government of Mauritius will welcome this project as this project has got various
benefits like it will support the environmental sustainability and will also save water
consumption. Also, this project will encourage high artificial intelligent. Also there is high
political stability within the country chichi can result in the success of the project.
Economic factor: In Port Louis living standard of people has grown which is mainly due to
increase in the level of income of people. This rise in level of income among the people of Port
Louis can be beneficial for the company as more people will be willing to pay for this automatic
car wash service. Also, country has also high economic stability which is expected to improve in
the future which will also prove beneficial for this business plan.
Social factors: This is also the important factors which has the huge impact on the business
project, in Port Louis quality of living has improved and there is a change in lifestyle and trends
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which can prove beneficial for the business (Rubin, Aas and Stead, 2015). As people of Port
Louis are living a busy life which has resulted in busy schedule of people so this system will
provide a quick service to the customers which can save their time and money too. Also, people
are buying cars which will increase by 2.2 percent which also prove beneficial for the company.
Technological Factors: This project is entirely based on technology so this factors is very
important for the company as this can result in growth and opportunity of the business. Port
Louis being the capital of Mauritius it is the most technologically advanced city of Mauritius. So,
it will result in speeding up of the project like supply of machinery, installations, approval from
the government and also the preference of the customers. So, this factor has major role to play
for the success of the business as it will in growth and help the company face the technological
challenges in the future.
Legal Factors: There are various legal document which have to be completed by Entrepreneur
like issuing the permit from the legal department of Port Louis, entrepreneur has also take care of
tax laws, emission laws, which entrepreneur has to fulfil before the establishment of the
business. Getting approval from various legal department of the city is challenging task for the
entrepreneur but are equally important for smooth functioning of the business (Ruff, 2015).
Complying with the legal formalities can also prevent entrepreneur from fines or penalties.
Environmental Factors: This is also the major macro-environmental factors which needs to be
considered by the entrepreneur as importance of environmental sustainability has grown in recent
years with the increase in pollution and global warming. Also, Mauritius being a tourist sport this
factors maintaining environmental sustainability can prove beneficial for the organisation and
can increase the value of the business. Less consumption of water, using recycled water, less
wastage etc will have positive impact on the project as this project is environmental friendly.
4.0 Target Market and Pricing strategy
It is very important for the entrepreneur to choose the target market for the business,
choosing a right target market will be beneficial for the project which can result in the success as
well as profit in the business. Target market of the company will people who are on the move
and people of all income levels, as automatic car wash will provide different levels of car
washing services to customers which can be afforded the people of all income levels (Sivertsson
and Tell, 2015). There are more than 2000 car owners in Port Louis and various car rental
service providers in Port Louis to whom these services will be provided the location chosen will
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the most busiest road in Port Louis near gas station which will allow the company to target the
customers of each income level. The pricing strategy which will adopted for the service offered
for car wash will be differential pricing strategy as company will provide different car wash
service at different costs. As there are four levels of car wash service which ranked according to
type of car wash service offered from 250 to 400 MUR. Also, different offers will be given to
customers during rainy season from December to April which will range from 200 to 350 as per
the type of car wash service rendered by the customer.
5.0 Financial Feasibility
Assets MUR Liabilities MUR
Building 5 M Equity 10 M
Equipment 6.8 M Loan 20.05 M
Land 6.25 M Financed by:
Working Capital 12 M
Total Assets 30.05 M 30.05 M
Port Louis Automatic Car Wash Centre is estimated to cost about MUR if 30.05 million
which will be financed by 60 percent by corporate loans up to 20.05 million from the Barcklays
Bank in Port Louis Cybercity which will pledged against the assets from the investors which has
market evaluation of MUR 50 million. Barcklays Bank will charge fixed interest which has the
estimated value of MUR 15 M which will include the value of land after the completion of the
building (Tesch and Brillinger, 2017). Avenport who are the investors of this project will MUR
20.05 M within the project as an equity of participation, but the financial viability of the projects
depends on the high asset backing as well as high end automation technology. As per the
evaluation and the growth of the market this project has an ability to recover the investment
within 3 years and profit of revenue is estimated to be approximately MUR 20 Million per
annum which is subjected to growth of this sector and also depends on wet weather.
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Break Even Calculations
This project is going to cost about 30.05 million MUR, which is the total investment done in this
project and break even point of this project will be when this project will generate the profit
equivalent to investment i.e. 30.05 million MUR.
Balance Sheet
Overall Synthesis and Conclusion
As per the analysis from the above report it can be concluded that Port Louis Automatic
Car wash centre is very feasible project and can prove successful for the entrepreneur as per the
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growth and advancement within the sector. Also, it will be the Port Louis's first fully automatic
car wash centre and has the capability to attract huge amount of customers across the city. In this
project Port Louis's best investment company is willing to invest in the project which will make
the project in reality. As per the target market and the opportunities available it can result in the
success of the company and has the ability to generate huge for the entrepreneur. Also, this
technology will prove best for the company as it will result in high customer satisfaction which
will be basis for the success of the project.
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REFERENCES
Books and Journals
Aithal, P. S. and Kumar, P. M., 2015. Applying SWOC Analysis to an Institution of Higher
Education. International Journal of Management, IT and Engineering. 5(7). pp.231-247.
Aithal, P. S., 2017. ABCD Analysis as Research Methodology in Company Case
Studies. International Journal of Management, Technology, and Social Sciences (IJMTS).
2(2). pp.40-54.
Althoff Philippi, D and et.al., 2015. Benefits of university-industry cooperation for innovations
of sustainable biological control. Journal of technology management & innovation. 10(1).
pp.17-28.
Morgan, E., 2015. ‘Plan A’: Analysing business model innovation for sustainable consumption
in mass-market clothes retailing. Journal of Corporate Citizenship. (57). pp.73-98.
Oesterreich, T. D. and Teuteberg, F., 2016. Understanding the implications of digitisation and
automation in the context of Industry 4.0: A triangulation approach and elements of a
research agenda for the construction industry. Computers in Industry. 83. pp.121-139.
Rubin, T. H., Aas, T. H. and Stead, A., 2015. Knowledge flow in technological business
incubators: evidence from Australia and Israel. Technovation. 41. pp.11-24.
Ruff, F., 2015. The advanced role of corporate foresight in innovation and strategic management
—Reflections on practical experiences from the automotive industry. Technological
Forecasting and Social Change. 101. pp.37-48.
Sammut‐Bonnici, T. and Galea, D., 2015. SWOT analysis. Wiley Encyclopedia of Management,
pp.1-8.
Simonse, L. W., Hultink, E. J. and Buijs, J.A., 2015. Innovation roadmapping: Building concepts
from practitioners’ insights. Journal of Product Innovation Management. 32(6). pp.904-
924.
Sivertsson, O. and Tell, J., 2015. Barriers to business model innovation in Swedish
agriculture. Sustainability. 7(2). pp.1957-1969.
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Tesch, J. and Brillinger, A., 2017. The evaluation aspect of digital business model innovation: A
literature review on tools and methodologies.
Online
Mauritius Number of Registered Vehicles. 2018[Online]. Available through :
<https://www.ceicdata.com/en/mauritius/number-of-registered-vehicles/number-of-
registered-vehicles>
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