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Lambency Detailing Business Proposal

Executive Summary

· Description of proposed business venture

Lambency Detailing is a start-up car grooming business that offers state of the art car paint protection services and provide customers with a hassle-free process of getting their car repainted. One of the biggest headache of car owners is that when their loved car gets scratched during any kind of accident. Thereafter, other issues will arise after they have decided to repaint their car. Issues such as colour matching if they opt to only repaint the affected areas and also the need to seek other forms of transport when their car is in the workshop. Lambency Detailing seeks to provide the solution to all of these by using state of the art car paint that boasts a 50% added resistance to scratches and dents and also colour matching of car paint using the latest technology. To let our customers enjoy a truly hassle-free experience, Lambency Detailing will provide customers with a vehicle during the time that they have to leave their car in the workshop. To further convenience the customer in case of an insurance claim, Lambency Detailing will liaise directly with the insurance company for the claim and all the customer will have to do will be to provide the details of the insurance policy.

Lambency Detailing will also work with companies which owns fleets of cars and requires car grooming services. Companies will include taxi companies such as ComfortDelGro and ridesharing companies that rent out vehicles such as Uber and Grab.

· Venture mission and objectives

Lambency Detailing’s mission is to provide customers with a one-stop solution to their car grooming needs, while at the same time provide the best service and prices in the market. Enhancing customer satisfaction is the ultimate goal of Lambency Detailing. To achieve maximum customer satisfaction, the company will not only continuously source for the best and latest car paint but also continuously update our business model to include services most desired by the customers.

· Target market(s) and key market projections

Lambency Detailing has two main targeted markets. Primarily, Lambency Detailing is targeting private care owners who wants to get their cars repainted but is worried about the hassles with regards to car grooming. To which Lambency Detailing will provide a one-stop solution to their car grooming needs, from colour matching to insurance claims. The second market that Lambency Detailing is targeting is companies with fleets of cars which will require standardized car grooming services. Sales from this market will be contract based.

· Initial SCA and sustainability

The initial competitive advantage for Lambency Detailing is that there are no other car workshop that provide the kind of car paint that Lambency Detailing is offering. The car paint boasts a 50% added resistance to scratches and dents and also Self-Heal© technology which means that the paint will heal itself in the case if the scratches are shallow. Also Lambency Detailing is the pioneer in providing one-stop service which includes not only car grooming but also insurance claim and vehicle rental services.

· The team and organisation

In the workshop there will be 3 mechanics with a supervisor to handle the car grooming processes. In the workshop office, there will be 1 administrative clerk and a manager to handle the paperwork and insurance claims. The manager will also see to the day to day operations of the workshop. The business owners will not be actively taking part in the day to day operations of the business and will function as more of an overseeing role.

· Profitability

Margins and profits in the first year of operation will be negative but this is to be expected for a new business venture.

Net profit margin is projected to reach 6.92% by the second year of operations and will continue to increase over the years. Estimated net profit by the second year is $31.26 and will similarly increase in the future. Cash flow is expected to turn positive by the middle of the second year of operations and the business can be expected to breakeven by the third year of operations.

· Projected returns on funds

Similar to the projected net profit, projected returns on funds for the first year of operation will be negative but it will take a turn for the better in the second year with a positive net profit margin. The positive net profit margin could be expected to increase into the future.

· Funding needed

The total start-up cost will run up to $139, adding in the estimated working capital requirement, the total cost for the business venture will be an estimated $170. The business venture will be fully funded by equity and will be raised from the business owners in proportion to their stake in the business venture.

The Industry and Proposed Business

· The industry

The car grooming and polishing industry is a thriving sector in Singapore due to the level of car ownership. With the proliferation of ridesharing companies there are even more cars on the road today. Traditionally car workshops that offers car grooming will only take on the paint job and customers will be faced with the hassle of insurance claims and sourcing for transport in the meantime.

· The proposed business

Lambency Detailing is a start-up car workshop business that offers state of the art car paint protection services and provide customers with a hassle-free process of getting their car repainted. One of the biggest headache that car owners face is having their loved car gets scratched during any kind of accident. Thereafter, other issues will arise after they have decided to repaint their car; such as colour matching if they opt to only repaint the affected areas and also the need to seek other forms of transport when their car is in the workshop. Lambency Detailing seeks to provide the solution to all of these by using state of the art car paint that boasts a 50% added resistance to scratches and dents and also colour matching of car paint using the latest technology. To let our customers enjoy a truly hassle-free experience, Lambency Detailing will provide customers with a vehicle during the time that they have to leave their car in the workshop. To further convenience the customer in case of an insurance claim, Lambency Detailing will liaise directly with the insurance company for the claim and all the customer will have to do will be to provide the details of the insurance policy.

Lambency Detailing will also work with companies which owns fleets of cars and requires car grooming services. Companies will include taxi companies such as ComfortDelGro and ridesharing companies that rent out vehicles such as Uber and Grab.

· The proposed service

A one-stop, no hassle, car grooming and protection service that boasts a 50% added resistance to scratches.

· Uniqueness of service

The initial competitive advantage for Lambency Detailing is that there are no other car workshops that provide the kind of car paint that Lambency Detailing is offering. The car paint boasts a 50% added resistance to scratches and dents and also Self-Heal© technology which means that the paint will heal itself in the case if the scratches are shallow. Also, Lambency Detailing is the pioneer in providing one-stop service which includes not only car grooming but also insurance claim and vehicle rental services.

· Proposed entry and growth strategy (including sustainability of SCA)

Lambency Detailing aims to be the provider of a one-stop solution to the customers’ car grooming and detailing needs. At this point of time there are no other car workshops that provide similar service such as ours. In the years to come, Lambency Detailing is prepared to provide even more services and these services will be dictated by the customer feedback that we will be collecting.

· The Market (developed from market and competitor analyses)

· Market size and trends

( https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/MVP01-1_MVP_by_type.pdf )

(http://coe.sgcharts.com/)

In 2016, there is a total of 631, 297 cars, rental cars and taxi combined in Singapore. With COE prices at one of its lowest this year, it is likely that the number of cars will increase. In March, Today Online published an article titled “More young drivers joining grab and uber full time”. It is safe to assume that the demand of rental will increase along with the number of drivers joining grab and uber. Considering the likelihood of the increase of car and rental cars in the market, it makes a good time for Lambency Detailing to enter the market.

Competitor Analysis

	Lambency Detailing	Ace GT (http://sgpaintprotection.com)	Smart Details (http://www.smartdetails.sg)	Groomwerkz (http://www.groomwerkz.com)	Sierra Glow (http://www.sierraglow.sg)
Price	$200 - $2000	$80 - $3068	$35 - $980	$12 - $1800	$1388 - $2088
Time Taken	1 - 4 hours	6 - 8 hours	1 hour - 1 day	Not stated	6 - 8 hours
Competitive Advantage	- Self-Heal© - Biennial touch-up	- Ceramic Pro - Lifetime Warranty	Low price	Paintless Dent Repair	Blue Flame Treatment
Warranty	5 years	3 - 10 years	1 - 2 years	Not stated	5 years

When compared to other top car polishing and protection companies, Lambency Detailing is the fastest with a maximum of up to 6 hours. This will appeal to most people and especially to the car rental companies, since shorter time needed for the car repairs or maintenance means that they will have more available cars to rent out earlier. The Self-Heal© technology is unique to Lambency Detailing and is currently the only provider of this service in Singapore. Although the price of the services that the company provide is not the lowest, the advanced technology and shortened amount of time taken justifies the price.

Marketing Mix

Product · Car grooming and protection services · Insurance claim · Vehicle rental services	Promotion · Work with Youtube stars or celebrity blogger to promote Lambency Detailing · Advertise using social media such as Facebook, Instagram, and Twitter
Price $200 - $2000, depending on the size of the car and type of service	Place Lambency Detailing’s garage at Ang Mo Kio

· Design and Development Plans

· Technical aspects of the service:

The mechanics and the supervisor will be responsible for the car grooming and other works pertaining to the car itself. The administrative staff will handle the paperwork such as billing, insurance claim and rental services.

Customer sends in request detailing services required and pictures of areas requiring grooming

Customer drives their car directly to the workshop.

Quotation and work details will be provided to the customer.

Customer drops off their car at the workshop.

Customers will need to fill in administrative forms for insurance claims.

Rental car will be at the workshop for the customer to collect once they are done with the paperwork.

Customer will be notified once the job is completed and arrange for collection.

As seen from the flowchart, Lambency Detailing will be providing the customers with a one-stop solution to all their car grooming needs. All the customer needs to do is to convey to the workshop the type of services that he or she may require and we will handle the rest. As a sign of Lambency Detailing’s confidence in the Self-Heal© technology of the car paint used, we are offering 4 years of warranty against yellowing and cracking. To further assure customers, we are offering free touch-up services, on a biennial basis, for minor scratches or scuffs during the warranty period. Self-Heal© technology allows the coat of paint to regenerate with the help of moisture so scratches from situations such as rubbing against bushes on the road sides will heal itself when you wash your car or even from rain.

· Outline of the design and development plans to make the product/ service a reality:

Lambency Detailing will be hiring mechanics and supervisor with adequate work experiences to work in the workshop. Prior to the commencement of the workshop, the team will also be sent for a familiarization course provided by the supplier of Self-Heal© paint. They will learn about the proper techniques and standard operating procedures with regards to the paint application. The administrative team hired will be familiar with the filing of insurance claims and general office duties.

The development expenditure to be expected will include equipment cost of $60, inventory cost of $25 and set-up and renovation cost of $20. As previously mentioned the familiarization course will be provided for by the supplier thus it will be at no additional cost to Lambency Detailing.

The main risk anticipated would be manpower issues as the team is relatively small. In the case of such an issue arising the business owner may have to step in to take over the role for a short period of time.

The main competitive advantage of Lambency Detailing is its business model and the Self-Heal© paint that we use. It will be possible for competitors to replicate our business model and to make sure Lambency Detailing remains top of the line, we will continually improve our business model to best cater to the customers’ needs. On the other hand, Lambency Detailing is the only workshop in Singapore offering Self-Heal© paint and that will help to set us apart from competitors. Lambency Detailing will also continually source for better and more cost efficient car paint to provide customers with the most ideal coat of paint.

Operating Plans

· Manufacturing and/or operating needs

· Facilities

Since Lambency Detailing is only dealing with car grooming the cars we will not be installing hoists. There will be many washing procedures so an adequate drainage system will be required for the work space. After the exterior cleaning is done, the car will be moved to the grooming and polishing station to carry on with the rest of the grooming process. After the whole grooming job is done, there will also be a vacuum station to clean up the interior of the car. The floors of the workshop will also need to be painted with non-skid paint to allow it to withstand stains and also prevent oil to soak into the concrete and weaken it. Space will also need to be allocated for the administrative office which will also double as the employees’ resting area.

· Building

Firstly, the building will need to have wide access as there will be at least three varying stations in the workshop, namely the washing, grooming and polishing and vacuum stations. Space is also needed for the office so a large floor space is an important requirement for the workshop.

Secondly, the building will need to have solid flooring as we will need to install water drainage system for the washing station. The water drainage system will need to be installed on a sturdy foundation.

Thirdly, it will be preferable if the building offers a good source of natural lighting. Good natural lighting not only allow mechanics to see the evenness of the coat of paint better, but it will also help to brighten up the place.

The building need not have a high ceiling as we will not be installing any car lift or hoists. However, a high ceiling will be an added benefit as it may help let in natural light.

· Equipment

Equipment required will include car washer, paint spray, car polisher and vacuums. Also safety equipment inclusive of goggles, wash aprons and safety boots will be provided for the mechanics. For the workshop office, it will be furnished with basic office furniture equipped with a pantry to serve as the resting area for the employees. The workshop office will also be equipped with office appliances such as desktop computers, fax machines and photocopiers.

· Capital costs

	Budget (thousands)
Equipment Purchase	60
Set-up and renovation costs	20
Registration and Administrative charges	5
Marketing	5
Workshop rental	24
Inventory	25

Capital cost is estimated to run up to $139.

· Location analysis

Location	Reasons for	Reasons against	Rating
Ang Mo Kio	1. Centralized location 2. Large floor space 3. Close proximity to rental car garage	Higher rental cost	3
Tampines	1. Partially renovated 2. Highway access 3. Large floor space	Decentralized location	3
Bukit Panjang	1. Cheaper rental 2. Partially renovated	In the industrial estate hence not easily accessible	2
Woodlands	1. Cheaper rental 2. Highway access	Presence of many competitors in the vicinity	1

Lambency Detailing have decided to rent out the workshop at Ang Mo Kio despite the higher rental cost. Ang Mo Kio is a centralized location which means easier access for the customers. It also has the largest floor space among all the locations. Another important factor is its close proximity to the rental car garage which will minimize customers’ waiting period.

· Key suppliers

Paintmart Pte Ltd is our key supplier for the Self-Heal© car paint. The company was founded in 1996 and started off as a dealer supplying automotive paint to various car workshops. Over the years, they have branched out to deal with household paints, chemicals and various paint accessories but have remained a firm standing in the automotive paint supply business. They are one of the largest wholesalers for paint and its related accessories. They have also worked with transport companies such as SBS Transit and SMRT Trains Ltd. As previously mentioned, Lambency Detailing is the pioneer in using Self-Heal© paint and have contracted Paintmart Pte Ltd for the next 2 years for the paint. Lambency Detailing will also be updated with the latest and best quality type of automotive paint by our key supplier. In the case if a competitor decides to start using Self-Heal© paint as well, Lambency Detailing will also be notified by our supplier.

· Management and Organisation (developed from the organisational analysis)

· The venture team

The investors will be the business owners of Lambency Detailing holding portions of the company in proportion to their initial investments. The business owners will oversee the overall running of the business but will not take part in the day to day operations of the workshop. The day to day operations of the workshop will be run by the manager. All employees will receive monthly remunerations while business owners will receive their compensation through the operations of the workshop.

· Organisation structure

The business owners will oversee the overall running of the business but will not take part in the day to day operations of the workshop. The day to day operations of the workshop will be run by the manager.

· Legal entity

Lambency Detailing will be a Partnership and will not be a separate legal entity to its partners. Partners will liable for debts and losses incurred in proportion to their size of ownership of Lambency Detailing.

· External professional advisors and consultants

Our key supplier Paintmart Pte Ltd will provide Lambency Detailing with consultants with regards to the business when the need arises as they have work experience with many other car workshops.

Milestone Schedule

· Timetable of key dates

Date	Item
30/11/17	Raising of funds from investors
15/12/17	Finalization of procurements and contracts
15/02/18	Finalization of all employee hires
23/02/18	Completion of renovation works
27/02/18	Complete set-up of workshop
01/03/18	Opening of Lambency Detailing

Critical Risks, Problems and Assumptions

· Potential problems

Manpower may pose a problem in the future due to the relatively small size of the team.

· Key risks

Lambency Detailing may lose one of its key competitive advantage if competitors starts to adopt the use of Self-Heal© paint. Also, the business model may also be replicated by competitors.

· Proposed contingency plans

Lower level employees could be trained with basic skills so that they could cover for their peers in cases of emergency.

Lambency Detailing will continuously strive to provide customers with the best paint job and service in order to stay ahead of competitors.

· The Core Financials

· Projected profits and cash flow

· Capital expenditure budget

	Budget (thousands)
Equipment Purchase	60
Set-up and renovation costs	20
Registration and Administrative charges	5
Marketing	5
Workshop rental	24
Inventory	25

Capital expenditure budget will be a total of $139.

· Budgeted balance sheet

Budgeted Balance Sheet at 28 February 2021 (thousands)
Current Assets			Current Liabilities
Cash at bank	31.46		Account payable	8.00
Prepaid Rent	4.00		Payroll	18.00
Account receivable	7.46
Inventory	25.00		Total Liabilities	26.00
Non-Current Assets
Equipment	60.00		Owner's Equity
Less: depreciation	18.00		Capital	170.00
			Retained earnings	-74.40
			plus Net Profit	158.32
			less Drawings	170.00
Total Assets	109.92		Total Liabilities and Equity	109.92

· Budgeted profit and loss (in thousands)

	Mar-18	Apr-18	May-18	Jun-18	Jul-18	Aug-18	Sep-18	Oct-18	Nov-18	Dec-18	Jan-19	Feb-19
Revenue	30.00	23.00	23.69	24.40	25.13	25.89	26.66	27.46	28.29	29.14	30.01	30.91
Service cost
Inventory	30.00	4.00	4.12	4.24	4.37	4.50	4.64	4.78	4.92	5.07	5.22	5.38
Gross profit	0.00	19.00	19.57	20.16	20.76	21.38	22.03	22.69	23.37	24.07	24.79	25.53
Operating cost
Marketing	5.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50
Workshop rental	24.00	0.00	0.00	0.00	0.00	0.00	4.00	4.00	4.00	4.00	4.00	4.00
Car rental	5.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Payroll	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00
Maintenance	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Utilities	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50
Earnings before interest and taxes	-55.00	-5.00	-4.43	-3.84	-3.24	-2.62	-5.97	-5.31	-4.63	-3.93	-3.21	-2.47
Income tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Net profit	-55.00	-5.00	-4.43	-3.84	-3.24	-2.62	-5.97	-5.31	-4.63	-3.93	-3.21	-2.47

	Mar-19	Apr-19	May-19	Jun-19	Jul-19	Aug-19	Sep-19	Oct-19	Nov-19	Dec-19	Jan-20	Feb-20
Revenue	31.84	32.79	33.78	34.79	35.83	36.91	38.02	39.16	40.33	41.54	42.79	44.07
Service cost
Inventory	5.54	5.70	5.87	6.05	6.23	6.42	6.61	6.81	7.01	7.22	7.44	7.66
Gross profit	26.30	27.09	27.90	28.74	29.60	30.49	31.40	32.35	33.32	34.32	35.35	36.41
Operating cost
Marketing	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50
Workshop rental	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00
Car rental	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Payroll	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00
Maintenance	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Utilities	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50
Earnings before interest and taxes	-1.70	-0.91	-0.10	0.74	1.60	2.49	3.40	4.35	5.32	6.32	7.35	8.41
Income tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Net profit	-1.70	-0.91	-0.10	0.74	1.60	2.49	3.40	4.35	5.32	6.32	7.35	8.41

	FY 2018	FY 2019	FY 2020
Revenue	324.58	451.84	644.21
Service cost	0.00	0.00	0.00
Inventory	81.23	78.58	112.04
Gross profit	243.35	373.26	532.17
Operating cost	0.00	0.00	0.00
Marketing	11.00	6.00	6.00
Workshop rental	48.00	48.00	48.00
Car rental	38.00	36.00	36.00
Payroll	216.00	216.00	216.00
Maintenance	12.00	12.00	12.00
Utilities	18.00	18.00	18.00
Depreciation	6.00	6.00	6.00
Earnings before interest and taxes	-105.65	31.26	190.17
Income tax	0.00	0.00	32.33
Net profit	-105.65	31.26	157.85

· Budgeted cash flows (in thousands)

	Mar-18	Apr-18	May-18	Jun-18	Jul-18	Aug-18	Sep-18	Oct-18	Nov-18	Dec-18	Jan-19	Feb-19
Cash Inflows
Investment	170.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Sales revenue	30.00	22.00	22.66	23.34	24.04	24.76	25.50	26.27	27.06	27.87	28.71	29.57
Total Inflows	200.00	22.00	22.66	23.34	24.04	24.76	25.50	26.27	27.06	27.87	28.71	29.57
Cash Outflows
Equipment Purchase	60.00	-	-	-	-	-	-	-	-	-	-	-
Set-up and renovation costs	20.00	-	-	-	-	-	-	-	-	-	-	-
Registration and Administrative charges	5.00	-	-	-	-	-	-	-	-	-	-	-
Marketing	5.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50
Workshop rental	24.00	0.00	0.00	0.00	0.00	0.00	4.00	4.00	4.00	4.00	4.00	4.00
Car rental	5.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Inventory	30.00	4.00	4.12	4.24	4.37	4.50	4.64	4.78	4.92	5.07	5.22	5.38
Payroll	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00
Maintenance	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Utilities	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50
Income tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Outflow	170.00	28.00	28.12	28.24	28.37	28.50	32.64	32.78	32.92	33.07	33.22	33.38
Net cashflow	30.00	-6.00	-5.46	-4.90	-4.33	-3.74	-7.13	-6.51	-5.86	-5.20	-4.51	-3.81
Opening balance	0.00	30.00	24.00	18.54	13.64	9.31	5.56	-1.57	-8.08	-13.94	-19.14	-23.65
Closing balance	30.00	24.00	18.54	13.64	9.31	5.56	-1.57	-8.08	-13.94	-19.14	-23.65	-27.46
	Mar-19	Apr-19	May-19	Jun-19	Jul-19	Aug-19	Sep-19	Oct-19	Nov-19	Dec-19	Jan-20	Feb-20
Cash Inflows
Investment	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Sales revenue	30.45	31.37	32.31	33.28	34.28	35.30	36.36	37.45	38.58	39.73	40.93	42.15
Total Inflows	30.45	31.37	32.31	33.28	34.28	35.30	36.36	37.45	38.58	39.73	40.93	42.15
Cash Outflows
Equipment Purchase	-	-	-	-	-	-	-	-	-	-	-	-
Set-up and renovation costs	-	-	-	-	-	-	-	-	-	-	-	-
Registration and Administrative charges	-	-	-	-	-	-	-	-	-	-	-	-
Marketing	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50	0.50
Workshop rental	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00	4.00
Car rental	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
Inventory	5.54	5.70	5.87	6.05	6.23	6.42	6.61	6.81	7.01	7.22	7.44	7.66
Payroll	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00	18.00
Maintenance	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00	1.00
Utilities	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50	1.50
Income tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Outflow	33.54	33.70	33.87	34.05	34.23	34.42	34.61	34.81	35.01	35.22	35.44	35.66
Net cashflow	-3.08	-2.34	-1.57	-0.77	0.04	0.88	1.75	2.64	3.56	4.51	5.49	6.49
Opening balance	-27.46	-30.54	-32.88	-34.45	-35.22	-35.18	-34.29	-32.54	-29.90	-26.33	-21.82	-16.34
Closing balance	-30.54	-32.88	-34.45	-35.22	-35.18	-34.29	-32.54	-29.90	-26.33	-21.82	-16.34	-9.85

	FY 2018	FY 2019	FY 2020
Cash Inflows
Investment	170.00	0.00	0.00
Sales revenue	311.77	432.19	616.20
Total Inflows	481.77	432.19	616.20
Cash Outflows
Equipment Purchase	60.00	0.00	0.00
Set-up and renovation costs	20.00	0.00	0.00
Registration and Administrative charges	5.00	0.00	0.00
Marketing	11.00	6.00	6.00
Workshop rental	48.00	48.00	48.00
Car rental	38.00	36.00	36.00
Inventory	81.23	78.58	112.04
Payroll	216.00	216.00	216.00
Maintenance	12.00	12.00	12.00
Utilities	18.00	18.00	18.00
Income tax	0.00	0.00	32.33
Total Outflow	509.23	414.58	480.37
Net cashflow	-27.46	17.61	135.84
Opening balance	0.00	-27.46	-9.85
Closing balance	-27.46	-9.85	125.99

· Projected returns

· Returns on sales

For Financial Year 2018, projected revenue is $324.58 but due to it being the first year of operations, with a large amount of expenses for the start-up, the net profit is -$105.65. The returns on sales for the first year is -32.55%.

For Financial Year 2019, projected revenue is $451.84 with the net profit of $31.26. The returns on sales by the second year of operation will be 6.92%.

For Financial Year 2020, projected revenue will continue to rise to $644.21 and net profit to increase to $157.85. The return on sales will reach the level of 24.50%.

· Return on total assets

For Financial Year 2018, the projected net profit is -$105.65 with the projected total assets being $90.35. The return on total assets for Financial Year 2018 will be -116.94%.

For Financial Year 2019, projected net profit is $31.26 with the projected total assets to be $126.60. The returns on assets by the second year of operation will be 25.70%.

For Financial Year 2020, projected net profit is $157.85 and projected total asset will be $279.45. This will put the returns on assets at 56.48%.

· Return on shareholders’ funds

For Financial Year 2018, the projected net profit is -$105.65 with the shareholder equity being $169. The return on shareholder’s fund in Financial Year 2018 will be -62.52%.

For Financial Year 2019, projected net profit of $31.26 with the shareholder’s equity remaining at $169. The returns on shareholder’s fund by the second year of operation will be 18.50%.

For Financial Year of 2020, projected net profit will be $157.85. With shareholders’ equity remaining at $169, the return on shareholders’ equity will be 93.40%.

· Risk profile

· Break-even analysis

Fixed cost will include marketing, workshop rental, payroll and maintenance costs. These fixed cost will run up to $282 on a yearly basis.

Variable cost will be inventory cost and utilities cost which is projected to be $96.58 in financial year 2019. Variable cost per paint job could average out to be $0.3.

Average price for a paint job will be set at $1.2.

With these estimation, the projected break-even point will be 313 paint jobs.

· Gearing ratio

Not applicable as the business will be fully funded by owner’s equity.

· Working capital ratio

Projected current assets and current liabilities for financial year 2019 will be $57.61 and $22 respectively. These will give a working capital ratio of 2.62.

· Return versus risk assessment

Even though the projected returns for the first year are deep in the negatives primarily due to the negative net income, but it is to be expected for a brand new business venture. Based on the projections, by the second year of operations the returns will take a drastic turn for the better and enter the positive range. By the third year of operations the business will have broke even and investor will be able to receive sizable drawings from the business. Also, based on the projected working ratio for the second year of operations, the business will very unlikely face solvency issues and there is no concern for the business’s exposure to debt as it is fully funded by owner’s equity.

· Financing the Venture

· How much capital?

The total start-up cost will run up to $139 and inclusive of the estimated working capital requirement the total cost for the business venture will be an estimated $170.

· When is it needed?

The initial start-up cost of $139 will be required by 1 January 2018 and subsequently $31 for working capital will need to be raised prior to the intended initiation of the business venture on 1 March 2018.

· Debt or equity or both?

The business venture will be fully funded by equity.

· From whom?

Equity will be raised from the business owners in proportion of their stake in the business venture.

Strength 1. All-in-one service 2. Least amount of time taken 3. Advanced technology 4. Warranty 5. Centralised location	Weakness 1. Slightly more expensive
Opportunities 1. Increasing COE prices steering the prolonged use of older car 2. Ridesharing companies acquiring fleet of vehicles will require paint jobs 3. Service for other vehicles, such as motorcycle or van.	Threats 1. Slower market growth in later years 2. Plethora of car polishing services 3.   Business model could be replicated by competitors