Car Wash Self-service Business Plan


Car Wash Self-service Business Plan


Auto Paradise (a dynamic startup company) requires $934,000. This is to establish a self-serve and automatic two-bay car wash. The carwash will provide exceptional services for San Angelo residents. Auto Paradise will become the most trusted car wash in San Angelo. Bobby and Vicki Lewallen have pledged $45,000 and are seeking investors to raise $150,000 more, which is 20% of the company stock. This will establish the company as well as securing a Small Business Administration loan of $740,000. Auto Paradise will be dedicated to offering the highest quality laser car wash, self-serve car wash and vacuum/shampoo services. Auto Paradise can also provide ATM services and sell reverse osmosis on-site water.

Auto Paradise is a strong company with a solid management team. He will be the President and Chief executive officer of Auto Paradise Texas Corporation (C). Mr. Lewallen has extensive leadership, management, and organizational experience. As an Army officer, he has been serving our country for 10 years. He was a Company Commander for two years and a Brigade Logistics officer for one year over the course of those 10 years. He was able to plan, coordinate, and execute many complex missions and deployments.

The mild winter climate in San Angelo is expected to support year-round sales. This has been confirmed by extensive research. Auto Paradise’s Avenue N address and marketing campaign will also attract local residents, Angelo State University community, Goodfellow Air Force Base clients, and Angelo State University community. Auto Paradise will be near the intersection of two major roads in San Angelo. Direct competition is limited only to dated ‘#8220’tunnels, friction car washes or lube &washes. Auto Paradise boasts the Laserwash 4000 system that is ‘#8220’ touchless, spot-free. Washing Equipment of Texas (WET) is located in San Angelo and will provide all equipment and maintenance support.

Auto Paradise should open within 90 days of receiving financing. Mr. Lewallen is offering several ways to invest in Auto Paradise:

  1. Company stock: Mr. Lewallen is offering 20% company stock to potential investors. He also offers 1% company stock for $7500. This capital will allow Auto Paradise’s first location to be established. Auto Paradise will distribute $2,500 every 1% share during the first three-years.
  2. Secured Investment: Mr. Lewallen will guarantee a 10% annual yield for a three-year investment. Mr. Lewallen will be willing to invest these funds with his personal assets or investments.

Mr. Lewallen will get an SBA loan from Compass Bank San Antonio. This is designed to ensure Auto Paradise’s success over the initial months. Two elements of the $740,400 loan are designed to build operating capital. First, the loan contains a 10% ($69,000 ) construction contingency. It will convert into operating capital if the construction cost are within the estimates. It also includes nine months of interim interest which will defer the long-term mortgage payment.

This is due to Mr. Lewallen’s willingness and ability to invest substantial money in this business. He also doesn’t have to depend on the profits of the business during the first six-12 month. These factors will allow Mr. Lewallen the opportunity to expand to a new location within the first 2 years.

1.1 Objectives

1. Average monthly sales of $28,000.

2. After opening Auto Paradise, establish second site within 12 months.

3. Provide initial investors a 33% ($2,500/share) distribution each of the first three years to recover initial investment.

1.2 Mission

Auto Paradise strives to provide the best car care experience for its customers. The company puts all of its effort and resources into providing customers with the best possible experience.

1.3 Keys to Success

Auto Paradise can be found near the intersections of two major roads, San Angelo. Direct competition is limited to outdated “tunnel” or friction car washes, lube & washes and convenience stores.

Auto Paradise is proud to offer the Laserwash 4000, a ‘#8220;touchless and spot-free’#8221 system. Washing Equipment of Texas is located in San Angelo. It will provide all equipment, maintenance support, and more.


Car Wash Business Plan


Car Wash Business Plan


Opportunity

Problem

East Meadow long island and the surrounding area are very wealthy. Over 40% of its residents earn more than $70,000 annually. They have nice cars and want them looking nice. There are five different car dealerships within a three-mile radius which will require car washing services for the various fleets. Lastly, there are many different local businesses that have company cars and that require clean appearances. These potential customers require a car wash that meets their needs and fits their budget. We will happily fill that need.

Solution

Soapy Rides will offer three services to customers: exterior cleaning, interior cleaning and detailing. Soapy Rides offers high-quality services at an affordable price.

Market

The market is a great place to start a business. The area is home to over 40% of the $70,000 annual income households. Many of the residents live in the neighborhood and own, lease or lease new cars. They place great emphasis on how their cars look and feel. There are five car dealerships within three miles from the proposed Soapy Rides location.

Competition

East Meadow has one more hand car wash. It is relatively new, and it is trying to compete against automated car washes by offering lower prices. It does not target customers looking for high-quality cleaning.

Why Us

Soapy Rides is offering three services to its customers: exterior, interior, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate.

Expectations

Forecast

Initial financing will come from Mark Deshpande’s personal investment. Cash flow will finance future growth. The company will grow slowly, but Mark will retain full control. It is hoped that in year three the company will be able opening a second facility. It is envisioned that an outside loan or equity funding will be sought at that time.

Financial Highlights for the Year

Financing Needed

Mark Deshpande plans to invest $40,000 in the transformation of the site into a carwash.


Auto Repair and Car Wash Business Plan


Auto Repair and Car Wash Business Plan


DIY Wash N&#8217′ Fix is a new approach to auto care. Do-It Yourself (DIY), is gaining popularity in America, as shown by the increase in DIY housing suppliers. The market is still lacking in DIY auto repair. While many companies offer parts and tools, they do not provide a place for the work. Therefore, our business idea is to provide a professional environment in which to wash, paint or repair your automobile. DIY Wash N’ Fix is a timely idea, because the current economic slowdown in the U.S. may influence consumers to revise their spending habits. Our facility is likely to attract people who have the skills and desire to learn about auto repair. Also, after-market auto parts sales have increased, which is a sign of Americans’ abilities and willingness fix their own cars. The car wash business is attractive due to its steady profits and low investment. An opportunity for excellent acquisitions currently exists in the car wash and auto repair industries, given that many of these businesses are owned by baby-boomers who are anxious to retire.

DIY Wash N&#8217′ Fix targets a particular market that wants to repair their cars but lacks the space or equipment. This is a growing market in urban areas, because many people live in apartment complexes that restrict on-site auto repair. Our target market consists of 90% males aged 18 to 55 with annual incomes between $20,000 and $40,000. These demographics are the reason we chose Texas, Florida, or California to locate our facility.

DIY Wash N&#8217’ Fix is a fresh and innovative concept. We have calculated that it will be a very profitable venture. The fact that we are the first in this business gives us a first-mover advantage over any competitors that may follow.

1.1 Keys to Success

These are the keys to success in this industry.

  • The quality of the service
  • Good business practices.
  • Skilled workforce
  • Information provided to customers/marketing efforts
  • Technologically advanced equipment.
  • Environmental issues awareness.

The above trends provide some reasons for our business to be successful. We are seeing the American economy slow down and possible rising costs for our rivals (technology, labor environment, etc.). DIY will grow because of the current American economic slowdown and eventuality of rising costs for our competition (technology, labor environment, etc.). Moreover, the bad image that certain repair stores have is an advantage for us because people may not trust them anymore. The repair industry is an excellent investment because of its potential profit projections.

Two major threats were also highlighted. The first is the fact that people might not be able repair their vehicle on their own because of the advanced technology in automobile electronics. Many states have laws that require regular safety inspections and emissions testing.

Car Wash Competitors

  1. Single-activity Car Washes: These are typically private-owned businesses which offer car wash service only.
  2. Multiple-activity car washes – these are chains that offer many different services. AAA, for example, is a California-based facility that offers car-care services. Recently, it announced the opening of a full car wash.

There are fewer multiple-activity car washes. They are nevertheless more like our business process, and they are therefore considered to be the primary threat.

1.2 Objectives

It is important that we talk about the inherent risks in our business model. Our plan assumes that there is a part of the population that can do basic repairs on their vehicles, but they are limited by lackof proper workspaces and the right tools. Another key factor to our success is appropriate pricing to attract and retain this customer segment. Finally, a risk inherent in our business is that a large unforeseen expense will arise that we have failed to work into our financials.