Business Proposal- For starsolva

Best wash is the business that provides the car washing services consist of unique services and feature that will attract more customers into the business. The uniqueness of the best wash business include dispensing machine that has the carpet shampoo, an automated tunnel, and a self-service bay that is operated by hand. In order for the business to maximize its business as the first-class car wash around the area, high quality spare parts will be available for customers at an affordable price for the local customers. Best wash will offer services in three different packages so that it can be able to serve all the locals in that area. These packages include: $ 13.00 super wash, $ 10.00 deluxe was, and $ 8.00 basic machine. Though the service will be offered in different packages, the quality of the service will be high in each package, hence satisfying the need and expectations of the customers.

The three packages of cleaning will generally include dash cleaning, carpet vacuuming, treatment that is reservation, and window cleaning. The cost of the self-service bay of the business will be around $ 2.00 per 5 minutes cycle. Further, the customers will be able to access the vacuum islands that cost $ 60 per 5 minute cycle. In addition, the business will offer the shampoo and fragrance dispensing machine, and the price will range between $ 2 and $ 3 per cycle.

Due to economic diversity and stiff competition in the market, the business will be flexible in providing services especially for the operation of the service tunnel. It will accommodate those who needs self-service and those who needs the services from the business workers. Best wash will incorporate an automatic dryer in the service bay to dry the vehicles instantly instead of using hand dryer that takes more time. This type of dryer will provide quality service compared to hand dryer, hence satisfying the expectation and needs of customers. The fact that this service is more innovative and new in the market, it will perform well in the market place.

The managers of Best Wash car wash business will be the owners. Their knowledge and experience personnel, equipment, and finance will enable the business to compete effectively in the market place. Mangers got effective training in various sectors like budgetary, operational situation, and managing personnel. They also got a chance of heading various departments that gave them the relevant experience. Currently one of the managers is the manager at the service station called 7 eleven.

The five managers will divide the task between themselves where two of them will perform the daily operation like building maintenance, employee hiring, equipment maintenance, and property maintenance. On the other hand, the other managers will deal with community relations, advertising, and marketing. In addition he will handle fiscal issues such as taxes, receivable, payables, and employees’ benefits. Apart from that we will employee two more experienced people in business.

To enhance effectiveness and efficiency, the business will use and encourage new technology. For example best wash will use computerized system for financial administration, management information, and accounting solution systems. Further the system for card scanning will be available for customers to ease the payment because the card will be scanned in the main entrance to the automatic service tunnel. With the advancement in internet technology, the business will use it to market them and be able to engage their customers online. This technology will enable customers to book their vehicles for maintenance services and washing online, hence reducing congestion and finishing the service on time. The advanced equipment used in the car wash will enhance the effectiveness and the efficiency of the service provided to the customers.

The business’s main mission is to be the leading car wash services provider of choice within five years of operation. To achieve this mission, the business will need to make total sales of about $ 180,000 during the first year of operation. We also believe that the number of customers will increase to a greater number the moment they realize about our excellent service, our existence, our participation in community service, and our reputation due to the new technology and quality services. In addition we target to have a bigger share in the market and meet the expectation of the customers. After analyzing the local market and examining the national statistics, we realized that it is possible for the business to achieve its objective due to its advancement in new technology and innovativeness.

The Best Wash car wash was intended to provide full maintenance and care for different vehicle models. The car wash comprises of two different systems that serve both those customers who need our full service and those who need our facilities but they service their vehicles for themselves. Both systems will be provided with the advanced facilities in order for our customers to get satisfactory and quality services. The provision of both self-service for the customers who need to participate in maintaining their vehicles and full-service for the customers who allow us to fully service and maintain their vehicles is a unique feature that was designed to attract more customer because it is smart and does not exist anywhere else. The uniqueness gives the business an opportunity to compete positively in the market and gives an added advantage.

Further, good marketing strategies have been put in place to ensure attraction of more customers and to establish bases for customers. The business has designed to use local area merchants’ promotion, cable television and radio, and selecting zip codes using the discount coupon mailing.

The Best Wash car wash services will be located in the Northern beaches at Narrabeen suburb. Location is best suited for the business as only few car wash service providers exist in the area and the fact that the area has a constant stream of cars for travellers commuting to the Sydney using Pittwater road and Warringah road.

Our business does not have a specific market segment; it targets all the customers in the market by providing both self-service and full service that is offered by us. The fact that other car wash in the market provides low quality service and uses less advanced facilities, give our business an added advantage. Further, the use of treated water in cleaning the customers’ automobiles gives environmental safety and protects the components of the automobile from rust and other damages.

The cost of our service tunnel will be about $ 40,000 and it will comprise interior service that include dashboard cleaning, window cleaning, and vacuuming as well as the exterior automobiles wash. The deluxe wash that comprises the rust inhibitor, a wheel brighter, undercarriage wash, and other basic washing services, will cost around $ 30,000. Finally the super wash that has the wax sealant and a polishing wax which will be used to enhance the quality of service will cost around $ 30,000. After examining various medium of advertising, we narrowed down to newspaper advertisement, radio station and television, and using website mail coupons. In addition using promotion and other forms of advertisement will be used to create awareness of the business. After the advertisement and promotions, the business expect to make the sales of about $ 180,000 for the first year out of the 63,000 cars that will be maintained and washed in the full-service operation and 30,000 vehicles in the self-service system in the first year of operation of the business.

The business will receive competition from both the local market and the well-established car wash in the region. Despite the direct and indirect competition the business will perform in the market because of the well strategies that are designed by the management. Further, the strategic location of the business will adds an advantage to the best wash business, hence increasing the shares in the market. The business is situated near the petro station and a busy mall, and the fact that there is no a car wash near that place gives the business an advantage in the market. Therefore the best wash business is expected to have a flow of vehicles coming into the car wash. Further, the new and advanced technology of the facilities installed and used in the business that gives effective and efficient service will help the industry to compete well in the market place. However, the long use of the hand wash in the area may develop believe among the customers that the used automated machines may fade their vehicles, hence reducing the number of customers. But for the customers who reason logically will know that hand washing takes more time and if they use that in cleaning their vehicles, they will end up wasting a lot of time which could have been economical somewhere else.

Though the business has a wide range of customers, their primary target for this business is the full-service customers, those who give the service to be performed fully by the employees of the industry. This market was selected because it gives workers an opportunity to work, hence generating income for themselves and also for the company. In addition, the full-service customers are preferred because they have the knowledge of the automated machines. This help because they cannot be easily influenced by the negative believes of those people who think that the automated machines cause the vehicles to fade. The targeted market also gives the business the advantage of earning maximum income because the service is fully provided by the employees of the business. The growth and development of the business will always depend on how the facilities and equipment are utilized and for how long. Therefore, the above target market will be convenient for best wash car wash due to the maximum service that they require, and hence more income for the business.

The capital that is required by this business will be used to construct the self-service bay, equipment room, the tunnel structure, networking infrastructure, installing computer, and employing the workers. Further more money will be required to train the workers and expose them to the new technology which is required in the operation of the car wash. The installation of night lights, asphalt repairs, landscaping, and installing signs is necessary for this kind of business. The capital will also help in acquiring the self-service and full-service facility, chemical inventory, administrative supplies and equipment, maintaining the equipment within the first two months, and building water repossession system. The total cost which is required for the car wash to start operating sum up to around $ 200,000, including $100,000 existing funds and seeking for $100,000 more.

Using the statistical data that is provided by the national association industry, both variable and fixed projected revenues, financial statement and other expenses were calculated. Further, other information were received from the regional data and some of the local car wash that are near the location of the business. Using the above information, we hope to get the exact portray of the expenses and revenues of the car wash. If the business is expected to utilize its facilities 24 hours in a day, the revenues projected will be attainable. According to statistics collected in this location by the traffic officers, 60,500 cars pass the road in a day, and out of this cars, 5 of 1% to 2 of 1% use the road that passes through the car was of best was business.

According to the nature of the car wash industry in that location, the maximum revenue is expected around the months of winter and minimum income for the business during the months of summer. Our projection is to get 48 % of the 55,000 cars that pass through that road at the end of the day. Through the guidance of ICA’s information we were able to allocate 8.5 % of the revenue to be used for advertising against 4.5 % that is recommended by the ICA.

According to the design and strategies of the business we have approximated the start-up cost of the business to be $ 200,000. This figure comprises of $ 145,000 for contingency fund and operating capital.

The business owners have set $ 100, 000 as startup capital and seek an additional $100, 000 in debt financing so as to meet the intended startup cost.

Due to the new and advanced technology, the business will require a high capital to be able to buy the expensive facilities that will be used provide quality services. As a result of this high cost of facilities, pricing of the services will be high, hence risking the low income customers. The fact that the business has not narrowed down to one target market, handling and management of the business will be involving. This increases the risks of the business due to the uncertainty of the output and performance of the business.

The fact that the business is relatively new, it will also face the following risks. Uncertainties resulting from the lack of an operating history, uncertainties of supply costs and the challenge of building and maintaining the Best Wash brand.

References

McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th Ed.). Boston, MA: McGraw-Hill Irwin

Carwash.org,. 'International Carwash Association - World's Largest Professional Car Wash Association'. N. p., 2014. Web. 15 May. 2014.

Software, Palo. 'Car Wash Self-Service Business Plan Sample - Executive Summary | Bplans'. Bplans.com. N. p., 2014. Web. 15 May. 2014.

Streetdirectory.com,. 'Creating A Car Wash Business Plan'. N. p., 2014. Web. 15 May. 2014.

wiseGEEK,. 'How Do I Start A Car Wash Business? (With Picture)'. N. p., 2014. Web. 15 May. 2014.

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