University Business Plan Project: Car Wash Service for BM564 Module

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This document presents a comprehensive business plan for a car wash service, developed as part of a BM564 Entrepreneurship module. The plan begins with a business pitch, outlining the motivation for the business, the process of generating the idea, feasibility studies, service details, market opportunities, industry attractiveness, and the business vision. The second part provides a detailed business plan that includes a description of the proposed car wash services, innovations, intellectual property rights considerations, target customers, competitor analysis, required skills, and financial projections. The financial analysis includes profit and loss forecasts, return on investment, and break-even analysis. The plan also covers the proposed business's vision and management analysis.
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Running head: ENTERPRISE AND ENTREPRENEURSHIP
Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note:
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1ENTREPRENUERSHIP
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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2ENTREPRENUERSHIP
References......................................................................................................................................13
Appendix........................................................................................................................................15
1) Start-Up Cost.........................................................................................................................15
2) Cash Flow..............................................................................................................................16
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3ENTREPRENUERSHIP
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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4ENTREPRENUERSHIP
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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5ENTREPRENUERSHIP
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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6ENTREPRENUERSHIP
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7ENTREPRENUERSHIP
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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8ENTREPRENUERSHIP
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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9ENTREPRENUERSHIP
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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10ENTREPRENUERSHIP
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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11ENTREPRENUERSHIP
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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