Business Plan: Perth Rides Mobile Steam Car Wash in Penang, Malaysia

This business plan outlines the strategy for Perth Rides, a mobile steam car wash business based in Penang, Malaysia. The plan includes an executive summary, industry analysis, and a detailed description of the business's services, which will focus on providing convenient car washing and maintenance at customers' locations. It covers market trends, regulatory bodies, and the purpose of the business plan, emphasizing its role in determining feasibility and attracting investors. The plan also addresses business feasibility, including demand analysis, risk assessment, and environmental impact considerations, alongside the economic, social, and personal benefits of the business. Further sections detail the organization and management structure, operational considerations, marketing arrangements, and financial projections, including a three-year budget and cash flow forecasts. The report concludes with a summary of the key findings and recommendations for the successful launch and operation of Perth Rides.

Running head: BUSINESS PLAN
BUSINESS PLAN
Student’s Name
University Name
Author note

1BUSINESS PLAN
Executive summary
The purpose of this report is to prepare a business plan for Perth Rides, a mobile steam car
wash business. The business organization will be focusing on Penang, Malaysia. The report
provides detailed description about the type of business and the services that will be provided
to the customers. The report provides an industry analysis, determining the current trends and
opportunities prevailing in the market along with the regulatory bodies. Further, the report
defines the business, their current offered and the growth rate of the business organization.
The report also provides a detailed analysis of the need and purpose of a business plan. It
determines the business feasibility of the business, analyzing the demands and other risks that
can be faced by the business organization. It also sates the economic, social and personal
benefits of the business. Furthermore, the report states the mission and vision of the
organization, it goals and structure. It determines the technical requirements and other
supplies required by the business organization. It determines the marketing arrangements for
the business. Lastly, it provides a three years budget and the projected cash flows in the
business. It sums up the report and provides a conclusion.

2BUSINESS PLAN
Table of Contents
Introduction................................................................................................................................3
Industry analysis – Industry trends, regulatory bodies...............................................................3
Definition of the business – current offerings, business concept and projected growth............5
Purpose of the business plan – why is business plan needed.....................................................6
Business feasibility – analysis of demand in Malaysia, Risks (industry and market),
environmental impact.................................................................................................................8
Justification of the business – Economic, social and personal benefits...................................10
Organization and management – vision and mission, corporate goals, managerial
competence, organizational structure.......................................................................................12
Operational consideration – location, technical requirements (key business process),
equipments required, supplies of raw materials.......................................................................15
Marketing arrangements – target market, marketing mix........................................................18
Financial considerations – cash budget 3 years.......................................................................20
Figure 3: Projected profit and loss statement...........................................................................21
Estimated expenditure..............................................................................................................21
Conclusion................................................................................................................................23
References................................................................................................................................25

3BUSINESS PLAN
Introduction
Perth Rides will be a new startup business organization in Penang, Malaysia. The
business organization will be providing steam car washing facilities at the own places of the
customers. Mobile steam car wash business is highly interesting and profitable for the
business owners, if one has the right amount of business perseverance and business tactics.
For successful operations of any business organization, right location, effective marketing
and top notch service to the customers are vital. Perth Rides will serve large numbers of
customers who wishes to have a car service done at a convenient location, efficiently and at
reasonable pricing. However, starting a new business organization requires huge amount of
capital investment, effective business planning as well detailing in order to ensure profitable
business. A mobile car wash business omits physical business location thereby limiting the
initial cost for a start up business (Kahn & Baum, 2020). The business can be started with
inexpensive tools, washing materials and other supplies, gradually the business might grow as
a when required. The operations of the business will be executed in areas where there is
advantage of visibility for marketing purposes such as customer parking lots, garages and
other driveways. However, the business might face certain limitations that are it might not be
able to work outdoors in rough weather climate and being a mobile car wash business it needs
to carry all the supplies, water and other necessary requirements to the desired location of the
customer. The purpose of this report is to formulate a business planning for Mobile car wash
business.
Industry analysis – Industry trends, regulatory bodies
Car wash industry in Malaysia is highly profitable due to high income of the
consumers, profit in the industry and high ROI. In Malaysia there are high rate of car owners
(28.2 million in 2017). Considering the Statistics, it will be profitable choice for investing in

4BUSINESS PLAN
Malaysia. Mobile car wash business is considered to be a subset in cash wash and auto
dealing industry in Malaysia (Islam et al., 2016). It is considered to be one of the industry
which employs the unskilled labors rather than skilled workers, as the overall services
required in the industry includes cleaning, washing the vehicles and other automobile
services. In Malaysia, the car wash industry provides wide range of customized services to
the customers such as self service car wash and full car wash services. The car wash industry
includes both big time investors as well as small entrepreneurs. Perth Rides might face
competition from these car wash service providers such as Mr. Clean car services and
Gamble car wash services. They also provide similar services to the customers, however
there are not mobile, they have a physical locations were the customers are free to visit as per
their needs and requirements (Islam et al., 2016). Perth Rides’ Mobile car services at the
location of the customers are one of the competitive advantages. The service can be easily
provided in the residential areas of the customers, their office premises as well as public
facilities such as parking lots.
There are various self service establishments in the Car wash industry. However, the
industry does not include the organizations which provide automotive repair, maintenance,
steam car wash and other related services (Kowang et al., 2018). Similar to other businesses
and industries, the demand for the services might decrease during economic downturn and
recession period. The demand for the services might also decrease due to decrease in
household spending of the consumers. This situation might decrease the demand for car wash
service and facilities. The customers of cash wash industry include the customers having a
driver’s license, people above the age of 18 years and having a car. These customers
contribute 85% to the revenue of the car wash and dealing industry in Malaysia (Lee &
Govindan, 2014).. The demographics might be further segmented by their income group and
behavior. The consumers with high income demands more for cash wash services. The

5BUSINESS PLAN
business owners’ having a car contributes 20% of the revenue in the industry. Revenue is also
derived from taxi drivers, Uber drivers, car rentals, truck business and other delivery vans.
However, majority of these consumer segments are incapable of affording in house car house
services.
Definition of the business – current offerings, business concept and projected growth
The name of the business organization is ‘Perth Rides mobile steam car wash’. The
core business operations will be car washing and maintenance service. There will be no
physical location of the business, rather the services will be provided to the customers at their
doorstep or at the location which is convenient for the customers. There is no scheduled
appointment required, the request can be provided by call or placed online through the
website of Perth Rides. The service will be provided in Penang, Malaysia. The customer
willing to have a professional car wash and service can get the service at their location. This
requires less capital investment and higher return on investment (Strielkowski & Lisin, 2016).
The services will be provided to the entire community in Penang both individual and
corporate customers. The service offerings of Perth Rides will be revolving around mobile
car wash services such as cleaning, polishing and maintenance for all the cars and vehicles.
The purpose of this service is to provide above stated services and gradually consider
diversifying the business services with additional services. The service will be provided with
special and high quality machines and chemicals, training service providers. The business
organization will be a symbol of quality and profit.
The customers will be provided with the following:
Car steam wash service in their chosen location

6BUSINESS PLAN
 Location selection facility
 Maintenance and polishing services
 Experienced workers and training workmen
 Car detailing
 On time service (prompt and convenient cash wash service)
 Guaranteed cleaning in 30 minutes
 Advanced and latest cashing equipments and supplies
 Eco friendly techniques for car washing
 Professional and reliable cleaning services
 24*7 IT service
The car wash industry is growing at a high rate, there has been a recent rise in popularity
of wash industry in Malaysia as the price and availability has been affordable to average
drivers. There has been an average of 50 cars in a mouth and 40% of the consumers having a
vehicle prefer professional car wash services. Therefore, there is potential for growth in the
business. The organization will be targeting mainly 3 groups of customer segments that are
personal car owners, car rental providers and local business owners. There are 40% of the
local residents in Penang with an average of RM 50,000 a year. Majority of the population in
Malaysia owns a car and prefers cash wash. This indicates that the business with be profitable
in the country with high growth opportunities.
Purpose of the business plan – why is business plan needed
According to Miftaahuddin and Alwasilah, (2019), business plan is highly essential to
chalk out the planning in which the business will be organized and services will be provided
in a profitable manner. Determining the blue print of the business plan helps the business
organization to determine whether the business will be profitable and appropriate in the given
business location from the beginning of its execution(Harter, 2015). The business plan lays
down the description of the business with the details of its operations. The planning includes

7BUSINESS PLAN
a market research to analyze the feasibility of the business and evaluation of the competitors
prevailing in the industry along with financial forecasts to determine whether the business has
adequate monetary availability for the success and profitability of the business. Having an
effective business plan might increase the chances of having a successful and profitable
business(Strielkowski & Lisin, 2016). The business plan is used to present it to major
stakeholders of the business organization including partners, investors, employees as well as
the owners of the business organization. Further, the business planning provides various
milestones which are essential for the success of the business. This also helps to better
analyze the competitive environment (McKeever, 2016). This is critical to analyze the
competitive advantages of the business and the ways in can compete in the market. It helps to
analyze the prevailing opportunities in the market and assessing its feasibility. It analyzes the
target market segment including competitive environment. These are vital elements for the
success and profitability of the business organization (Barrow, Brown & Barrow, 2018).
Most importantly, it determines the estimated sales and revenue of the business organization
by analyzing the cash inflows and cash outflows. Determining the monetary availability of
the business organization helps them to determine the potential challenges that can be faced
by the business and the ways to overcome the challenges (Guţă, 2014). The estimations made
in the business plan helps the business to determine if there is any further capital required.
This is highly essential for the business organization in order to effectively utilize the capital
and the funds. A professional and well laid out business plan is used to attract potential
investors in the business especially the financial projections. Moreover, the business plan
helps to reduce potential risks by assessing the opportunities (Volker & Phillips, 2018). It
also helps to position the brand and define the role of the business in the marketplace of the
targeted location. It enables the organization to describe the purpose of the business and
position the brand in the minds of the customers, potential investors and partners. The actual

8BUSINESS PLAN
performance of the business can be compared with the business plan; this helps to understand
the success rate and performance of the business organization (McKenzie, 2015).
Business feasibility – analysis of demand in Malaysia, Risks (industry and market),
environmental impact
Demand analysis
As per statistics there has been a 10% growth rate in new car owners in Malaysia.
There has been 8% increase in new and used car dealers in the country with 10% increase in
lifetime car owners. There has been 15% growth rate in luxury and sports cars owners
(Harakh, 2019). This makes it favorable for the car wash business in Malaysia. In overall,
there have been 12.28% of potential customers in the country (Harakh, 2019). There is an
increased opportunity for the business in Penang. Majority of the customers (40% of the
population) in the country are high income earners. The consumers either own a car or rent
vehicles for car dealers in the area (McKeever, 2016). Hence the consumers provide
maximum attention and value to their cars. Car washing services is a necessity from the
commercial car owners especially the rental and car dealers. While on the other hand, the
individual consumers having luxury cars or sports cars are highly conscious about the looks
and attractiveness of the cars (Cezary, 2016). The regular car drivers prefer a car wash at least
once a week especially for maintenance and normal wash. The new car owners will prefer a
hand car wash service. The goal is to promote regular use and detailed services. Therefore,
the demand for car wash in the proposed location will is predicted to be profitability and has
the potential for the growth (Bellas & Decker, 2016).

9BUSINESS PLAN
Figure 1: Market analysis
Source: (Tiago et al., 2014).
Market/Industry risks
However, the business organizations and services offerings are subjected to market
and industry risks considering the mobile servicing (Kirby, 2013). There is no physical
location of the business, the service is provided as per the location convenient for the
customers, this makes it different for the workers to travel with heavy equipments. The
customers must provide water supplies and must have water facilities for washing as carrying
water to distant places it difficult (Jirachaisingh, 2017). Further, it is also difficult to travel to
the required location of the customer in extreme climate conditions such as heavy rainfall and
storms. Climate change and weather conditions might have the possibility to disrupt the
smooth operations of the business. As compared to other competitors in the industry, they
have a physical location for the customers to visit and have their services done. They do not

10BUSINESS PLAN
have mobile service facilities; this can be a competitive advantage to Perth Rides. Drainage
of water might be the primary problem associate with car wash services.
Environmental impacts
Moreover, the chemicals and soapy water used for cleaning the cars might degrade the
water quality as exposed into the environment. At least 40 gallons of water would be required
to clean a single vehicle. Therefore, these services have environmental impacts. Therefore,
car washing can be a treat to the environment (Chaudhry, 2015). Water drainage might be a
serious problem, the runoff water has to be drained somewhere properly. As per the location,
the runoff water has to end up on large water bodies. This might have a negative impact on
the environment. The business organization must ensure that the runoff water ends up in
water treatment centers. However, even if the runoff water is exposed to water treatment
plants, it might affect drinking water and have huge impact on the crops and animals that
consumes the water. On the other hand, even if the car is left unwashed, it might leave an
environmental footprint (Belanger & Wentworth, 2016). Therefore, it is imperative to keep a
clean car in an environmentally friendly manner. There are various ways to reduce
environmental impacts. Perth Rides has an advantage in this sector, it offers steam car wash
facilities, which reduces water usage while car wash. In order to enhance its facilities, the
business can implement new technologies for a cash wash such as high pressured stream can
be implements as it requires less gallons of water with no water runoff (Smith & Grier, 2014).
The business can use eco friendly cleaning solutions with classic soap obsolete for washing
purpose. This can eliminate environmental impact.
Justification of the business – Economic, social and personal benefits
Social benefits

11BUSINESS PLAN
Starting a car wash business has both economic and social benefits for the
communities. The service is highly valuable for the consumers who have a busy lifestyle,
finding it hard to take out time for washing and maintaining their car/vehicles (Ingram, 2014).
In many of the cases, the consumers lack effective equipments, soaps or chemicals to clean
the car in an eco friendly manner. While doing so, they waste lot of water and cause negative
environmental effect. Perth Rides offers its professional services at the location convenient
for the consumers (John, 2014). The business will be providing their services of car wash,
polishing, waxing and other essential at the doorstep of the consumers. Hence the service will
be of social benefit for the people in Penang.
Economic benefits
The new startup businesses might be small, but they play a vital role in the economic
growth and development. Starting a new car wash business implies that new employment
opportunities will be provided especially to the unskilled labors (Cezary, 2016). Car wash
business does not required skilled workers as the work is simple in nature. The employees
will be provided with training and development opportunities to enhance their abilities and
make them learn new techniques and utilize different equipments (Ingram, 2014). Hence the
service has economic benefits. It will create more jobs in the future, thereby contributing to
the GDP of the country and the economic dynamism through innovation and competitiveness.
It also leads to cash inflow and cash circulation in the economy. Therefore, there are various
economic benefits for starting a new car wash business.
Personal benefits
Across Malaysia, vehicles are expected to increase by 1.4% (2018) as per statistics;
the statistics indicates favorable prospects for the business considering the competitive
advantages and strengths of the business. The Car wash industry is a cash business where