Enterprise and Entrepreneurship | Car Wash Industry

Running head: ENTERPRISE AND ENTREPRENEURSHIP
Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part 1: Business Plan Pitch..............................................................................................................2
1 Motivation of the Choice of Business......................................................................................2
2 Process of Generating the Business Idea..................................................................................2
3. Feasibility Test.........................................................................................................................2
4. Details of Services...................................................................................................................3
5. Potential Market Opportunities................................................................................................3
6. Attractiveness of Industry........................................................................................................3
7. Vision of Business...................................................................................................................3
Part 2: Business Plan.......................................................................................................................4
Proposed Business Plan...............................................................................................................4
Innovation....................................................................................................................................5
Intellectual Property Right...........................................................................................................6
Customers....................................................................................................................................7
Competitors..................................................................................................................................8
Skills Analysis.............................................................................................................................9
Financial Analysis.......................................................................................................................9
Start-Up Cost Breakdown..........................................................................................................11
Vision of Business.....................................................................................................................11
Management Analysis and Business Feasibility........................................................................12

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References......................................................................................................................................13
Appendix........................................................................................................................................15
1) Start-Up Cost.........................................................................................................................15
2) Cash Flow..............................................................................................................................16

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Part 1: Business Plan Pitch
1 Motivation of the Choice of Business
Setting up a new business or venture especially in the field of service industry could be
fun, profitable and a learning one which would be well enabling a entrepreneur well understand
the various aspects about the market. The new start-up business plan upon which we well plan to
carry out or services will be in the field of Car-Wash Business Services. The key motivation for
well starting up the business in the field of Car Wash Services has been particularly decided
because of the increasing automobiles and car wash industry that has been growing at a booming
rate with increased number of demands that existing companies are observing (Wagner 2019).
2 Process of Generating the Business Idea
It was well observed that around 8,000 hand car washes engage in illegal activity and the
Environmental Audit Committee has well warned about the issues that are generally due to
cleaning agents used that can well cause chemical burns to the workers. While on the other hand,
untreated wash water gives a toxic effect to both plant life and animals. Now seeing the current
business environment it was well decided to set up an business in the same industry which would
be complying with all the compliances so that the company not only complies with the set rules
and conditions by the Audit Committee but also create a brand value and goodwill in the
industry. On the other hand high profit margins and demands for the current business services
were other key facts analysed.

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3. Feasibility Test
It is important to assess the feasibility of the new business venture with the help of
detailed financial plan which would be well including the various assessment about the business
plan that we wish to carry out. The financial plan will be well drawn for a sum of two years in
which cash inflows is comparatively greater than cash outflows. The higher profitability
generated by the business goes to well show that the business venture planned out would be
successfully creating wealth for the entrepreneurs.
4. Details of Services
The key business services that would be provided by our new business venture
“Cleaners” would be Tunnel Automatic Car Wash, Hand Car Wash, Self-Car Wash Service and
Touch-less Car Wash Services. These services would also be ranging from basic to premium
range depending upon customers and type of service required.
5. Potential Market Opportunities
Market Opportunities in starting up the business in the field of Car Wash Services is high
because of the increasing automobiles and car wash industry that has been growing at a booming
rate with increased number of demands that existing companies are observing.
6. Attractiveness of Industry
Cleaning cars is comparatively a bug business and a common business services that
operates in the UK Markets. The Car Wash Industry in UK is valued to be around £1 Billion a
year (Autoexpress 2020).

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7. Vision of Business
The vision for our new business venture would be to create a sound customer base along
with established business in the various parts of UK, with a reputational image of the company
that is compliance with all the rules and regulations.
Part 2: Business Plan
Proposed Business Plan
The proposed business plan would be well made in the field of Car Wash Industry,
whereby the company would be operating in the region of UK with its business operating name
as Cleaners. The primary objective of the company would be to render car wash services and
auto detailing services (Autoexpress 2020). The key services which the company well aims to
cater to its customer would be as follows:
 Professional Car Wash Services: Tunnel Automatic Car Wash, Hand Car Wash, Self
Service Car Wash and Touch-less Car Wash Services. The services would be available
for the customers at a competitive rate.
 Car Services: Key Car Services like Hand Wax, Interior Cleaning, Carpet Shampooing,
Scratch Removal, Water Sport Removal and Paint Restoration would be some of the key
service that would be offered.

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Innovation
Every new business services got to bring in new and unique services that would be well
helping company attract customers in their business activity. Cleaners would be bringing in
certain tools and equipment’s like Conveyor Tunnel, Self Service Wands, Spot Free Solutions,
and Dryers which would be catering the basic Car wash services (Car Wash Equipment & Car
Wash Supplies, Mobile Cleaning & Truck Wash Division 2020). On the other hand some of the
key unique equipment’s which would be bringing in for car services would be as follows:
 Spray Wand Extensions.
 Submersible Pumps.
 Surface Cleaners.
 Tire & Engine Cleaners.
 Triple Foam Systems.
 Unloader Valves.
 Vacuum Claws, Cuffs, etc.
 Vacuum Hose.
In order to well protect or cleaning agents necessary equipment’s and protective tools would be
provided that would be in the field of:
 Aprons
 Wash Mitts
 Cleaners & Protectants
 Detail Brushes

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 Dual Head Orbital Polisher Accessories
 Paper Floor Mats
 Pads and Sponges
 Fragrances and Deodorizers
 Paint Spray
 Tornado Cleaning Guns
 Mobile Car Washing Equipment/Machine
 Eco-friendly Chemicals and Natural Colour Paints
Intellectual Property Right
The intellectual property rights is category of property that well includes an intangible
creations of the human intellect. Cleaners would be well protecting its business with the help of a
trademark that is in the form or type of an intellectual property that well consist of an
recognizable sign, design or an expression which would be well identifying products and
services from a particular source from those to others. This would well ensure that the company
intellectual property rights are well registered. The cost incurred for the same would be well
accounted in the business plan that would be drawn for a sum of two years.
Customers
The target customers that the company would be operating would be following would be
in the field of Business to Customers Approach whereby we would be following for well
operating our business services. Customers like Four Wheeler Sedan SUV and Hatchback Car
owners would be our key customers . On the other commercial vehicles like Truck and Van
would also be serviced in our service centers. The services would be rendered by our skilled
cleaners who have sound knowledge about car washing and auto detailing services (CAR WASH

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SOAPS / DETERGENTS / WAXES - Dultmeier Sales 2020). It is well expected that majority if
the demand would be coming for car wash services and if the business demand well increases
then we would be able to handle it efficiently with the help of key cleaning tools and
equipment’s that would be helping us cater wide range of customers services and demands
(O’Donnell and Dahl-Popolizio 2018).
Revenue Growth
Particulars Year 1 Year 2
Car Wash 25000 27500
Car Wax 15,000 16,500
Car Polish 10000 11000
Direct cost of sales 20000 22000
Operating Profit 30000 33000
1 2
0
5000
10000
15000
20000
25000
30000
25000
27500
15,000 16,500
10000 11000
Sales Analysis
Direct Cost of Sales
Competitors
Competition in the Car Wash Business is generally high as the industry is into growth
stage where not only the demand for such services are increasing but the numbers of new

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companies operating in this industry is higher. Some of the key competitors that are operating in
this industry are as follows:
 IMO Car Wash Services
 Waves
 Car Wash Company
 Auto Valet Direct
 Auto-Glym
 Auto-Smart
Skills Analysis
Skills and experience that would be well required for the purpose of carrying on the
business activities would be primarily in the field of handling various customer demands and
needs that would be comprising of car wash services and auto detailing services.
Entrepreneurship skills such as analysing customer needs and demands and how to cater the
same with the help of business services are some of the key skills sets that would be well
required for well operating the business. Other key skills like Marketing Skills for the purpose of
well informing the customers about the company in terms of business products offered and
marketing of the same with the help of discounts and promotional offers would be some of the
key skills set that would be required for well carrying on the business services (Auto Detailing
Supplies & Car Polishing Supplies - Dultmeier Sales 2020). Other skills like financials skills for
the purpose of well carrying out the business feasibility are some of the important aspects that
needs to be well carried for the purpose of carrying on the stipulated business activities (Costa et
al., 2017).

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However, from an important view perspective it becomes important from a business
organisation to well control the aligned activities for the company that would be in the form of
judging market skills as well as assessing or forecasting the industry growth and accordingly
incorporating the same into business or company’s operations.
Financial Analysis
The financial analysis has been well done for the Cleaners Company for the sum of two
years in which we have well planned out the various business operations in the form of cash
inflows and cash outflows that would be observed for the company for a sum of two years. The
profit and loss statement for the company has been well planned out by well taking the various
business activities that would be planned out for the given time frame.
PROFIT AND LOSS FORECAST & ROI
Year 1 2
Revenue 50,000 55,000
Cost of sales 20,000 22,000
Gross profit 30,000 33,000
Expenses/overheads
Premises (rent, rates) 1,500 1,575
Wages and salaries 7,500 7,875
General expenses 150 158
Accountant Fees 250 263
Payroll Tax 750 788
Utilities 3,250 3,413
Sales and Marketing 2,500 2,625
Postage & Telephone 200 210
Repairs and Maintenance 100 105
Preliminary expenses 350 368
Lease Payments 250 263
Total expenses/overheads 16,800 17,378
Profit before tax 13,200 15,623
Tax @ 19% 2,508 2,968
Before tax net margin 26% 28%
Profit after tax 10,692 12,654
Transfer to reserves 10,692 12,654
Particulars Year 1 Year 2
Return on Investment 14% 17%

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Breakeven Analysis on the other hand has been well carried out for the purpose of well
finding out the level of business units or sales that the company should well make out for the
purpose of well covering its fixed costs. The key fixed costs that the company would be well
incurring for each of the services has been well segregated. The basis for the distribution of fixed
costs would be in the form of level of sales that would be observed for each of the services that
the company aims to offer (Kahn and Baum 2020).
The sales analysis for the company for the sum of two year for the three group of company
would be in the field of Car Wash, Auto Detailing Services and Car Polishing services that the
company aims to well cater to its customers for the time period that has been well analysed.
Particulars Year 1 Year 2
Total Sales
Car Wash 25000 27500
Car Wax 15000 16500
Car Polish 10000 11000
Total Revenue 50000 55000
Direct cost of sales 20000 22000
Car Wash 13000 14300
Car Wax 4000 4400
Car Polish 3000 3300
Gross Earnings 30000 33000
Breakeven Analysis
Particulars
Car
Wash
Auto
Detailing
Polishi
ng
Fixed Costs (Total Fixed Costs*Revenue % Generated) 8,625 5,175 3,450
Revenue Per Unit $10.00 $12.50 $15.00
Variable Cost Per Unit (Total Revenue Percentage* COGS) $4.00 $5.00 $6.00
Cars Serviced 2500 1200 667
Breakeven Analysis: Fixed Cost/(Price-Variable
Cost) (In Units) 1438 690 383

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Start-Up Cost Breakdown
The proposed business venture would be well requiring a certain amount of money that
would be in the form of the Start-Up cost and these would be particularly important for Start-Up
Assets and Expenses that the company would be incurring for the time period that has been well
analysed and break down of each of the costs has been well analysed (Appendix 1).
Vision of Business
The vision for our new business venture Cleaners would be to create a sound customer
base along with established business in the various parts of UK, with a reputational image of the
company that is compliance with all the rules and regulations. Increasing returns and sound
profitability base for the company would be some of other key vision that the company would be
well aiming down for the company (Cyclo Toolmakers Buffer / Polisher, Dual Head - Dultmeier
Sales 2020).
Management Analysis and Business Feasibility
The business feasibility conducted for the business goes to well show that the company
would be able to make a sound profit that would be in the form of higher return on investment
for the equity shareholders (Autoexpress 2020). It is important to note that the management of
the company however at the same time should well analyze the market scenario and industry
trend for continuously adapting or changing to the business operations.

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References
Auto Detailing Supplies & Car Polishing Supplies - Dultmeier Sales 2020. Available at:
https://www.dultmeier.com/catalog/0.48.846 (Accessed: 31 March 2020).
Autoexpress 2020 Autoexpress.co.uk. Available at:
https://www.autoexpress.co.uk/car-news/105677/car-wash-cleaning-up-the-industry (Accessed:
31 March 2020).
Car Wash Equipment & Car Wash Supplies, Mobile Cleaning & Truck Wash Division 2020.
Available at: https://www.dultmeier.com/car-wash-equipment-supplies.php (Accessed: 31 March
2020).
CAR WASH SOAPS / DETERGENTS / WAXES - Dultmeier Sales 2020. Available at:
https://www.dultmeier.com/catalog/0.48.903 (Accessed: 31 March 2020).
Costa, J., Doherty, A., Wohlrab, A., Kooker, M. and Scott, T., 2017. CENTRAL HUDSON
BUSINESS PLAN.
Cyclo Toolmakers Buffer / Polisher, Dual Head - Dultmeier Sales 2020. Available at:
https://www.dultmeier.com/products/0.48.846.2314/2938 (Accessed: 31 March 2020).
Hartono, B.A.D., 2019. BUSINESS PLAN Perencanaan Bisnis Car Wash di Semarang “BAPE
Car Wash” (Doctoral dissertation, UNIKA SOEGIJAPRANATA SEMARANG).
Kahn, M.J. and Baum, N., 2020. Entrepreneurship and Formulating Business Plans. In The
Business Basics of Building and Managing a Healthcare Practice (pp. 37-41). Springer, Cham.

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O’Donnell, R. and Dahl-Popolizio, S., 2018. Business Entrepreneurship: The Integrated
Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159).
Springer, Cham.
Odiana, S., Onoja, M. and Ebun-Igbeare, E., 2016. Municipal water resources management:
evaluation of water consumption by car wash facilities in Bauchi Town, Nigeria. Journal of
Applied Sciences and Environmental Management, 20(2), pp.363-366.
Top 5 Car Wash Franchises in the UK 2020. Available at:
https://www.pointfranchise.co.uk/articles/the-top-hand-car-wash-for-sale-in-the-uk-6143/
(Accessed: 31 March 2020).
Wagner, R.A., 2019. The Business-Model ‘Flag’: A Visualization Tool for Pitching
Financials. Available at SSRN 3409229.

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Appendix
1) Start-Up Cost
Start-up Requirements
Start-up Expenses
Fixed Costs Particulars Amount
($)
Premises (RENT & RATES) $1,500
Salaries $7,500
Interest on loan 8% $0
Accountant Fees $250
Payroll Tax $750
Retainer contracts $3,250
Sales and Marketing $2,500
Postage & Telephone $200
Broachers $100
Logo Designs $150
Market survey $450
Preliminary expenses $350
Lease payments $250
Total Fixed Costs $17,250
Average Monthly Costs
Rent $125
Lease payments $21
Interest on loan 3% $0
Postage & Telephone $17
Repairs and Maintenance $8
Salaries / Wages $625
Total Average Monthly Costs $796
x Number of Months: 12
Total Monthly Costs $9,550
Total Startup Expenses $26,800
Start-up Assets
Owner Funding
Owners Fund $75,000
Total Owner Funding $75,000
Loans
Loan $0
Other

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Total Loans $0
Total Start-up Funds $75,000
Assets
Equipment’s $7,500
Vehicles $8,500
Garage $12,500
Total Fixed Assets $28,500
Total Start-up Assets $103,500
2) Cash Flow
(2) CASHFLOW FORECAST
Preop
Year 0 1 2
CASH INFLOWS
Cash from Sales 50,000 55,000
Bank Loans 0 0 0
Capital Employed 75,000 75,000 75,000
Other cash inflows
TOTAL CASH INFLOW 75,000 125,000 130,000
CASH OUTFLOWS
Payments for materials 20,000 22,000
operating expenses ( ) 0
Premises (rent, rates) 0 1,500 1,575
Salaries 0 7,500 7,875
General expenses 0 150 158
Interest and bank charges payable 0 0 0
Lease payments 0 250 263
Corporation Tax 2,508 2,968
Market survey costs 0 450 473
Other preliminary expenses 0 350 368
capital expenditure
Plant and other capital expenditure 0 12,500 13,750
financing repayments
Loan repayments 0
TOTAL CASH OUTFLOWS 0 45,208 49,428
Cash flow summary
NET CASHFLOW FOR PERIOD 75,000 79,792 80,572
OPENING CASH BALANCE 0 75,000 154,792
CLOSING CASH BALANCE 75,000 154,792 235,364

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