executive summary of a car wash business plan

Car Wash Business Plan Template

Written by Dave Lavinsky

Car Wash Business Plan

You’ve come to the right place to create your Car Wash business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their car washes.

Below is a template to help you create each section of your Car Wash business plan.

Executive Summary

Business overview.

Eco-Clean Car Wash is a startup car wash company located in Boston, Massachusetts. The company is founded by Thomas Wright, a former car wash manager who has gained valuable insights in how to run a car wash during his time working at Clean & Dry Car Wash. Now that Thomas has garnered a positive reputation for his exceptional management skills, he is ready to start his new company, Eco-Clean Car Wash. Thomas is confident that his ability to effectively manage staff and operations combined with his winning customer service record will help him successfully open and run a profitable car wash.

Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any vehicle owner. Eco-Clean Car Wash will be the ultimate choice in Boston for people looking for an eco-friendly car wash option. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.

Product Offering

The following are the services that Eco-Clean Car Wash will provide:

• Eco-Express Car Wash
• Full Service Eco-Clean Car Wash
• Eco-Car Detailing
• A La Carte Services (vacuuming, window cleaning…)

Customer Focus

Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash. No matter the customer, Eco-Clean Car Wash will deliver the highest quality car care and the best customer service.

Management Team

Eco-Clean Car Wash will be owned and operated by Thomas Wright. Thomas is a former car wash manager for another local car wash. He has gained valuable insights in how to run a car wash business during his time working for Clean & Dry Car Wash. Thomas is a graduate of the University of Boston with a Bachelor’s degree in Finance. He will be in charge of the finances, supplier relationships, and eco-initiatives for the company.

Thomas has recruited an experienced car wash attendant, Patrick Collins, to be his co-manager and oversee the maintenance of the equipment and handle the training and management of the car wash attendants. Patrick Collins has been the top performing car wash attendant at Clean & Dry Car Wash for over five years. Thomas relies strongly on Patrick’s diligence, attention to detail, and focus when providing car detailing services, inspecting equipment, and training car wash attendants.

Success Factors

Eco-Clean Car Wash will be able to achieve success by offering the following competitive advantages:

• The management team, car wash attendants, and car detailers will all provide exceptional service for every customer that comes in for a car wash. The attendants will be trained to employ a high attention to detail to ensure every vehicle is cleaned to perfection.
• Eco-Clean Car Wash strives to live up to its name. The company uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services like vacuum only or window cleaning only.

Financial Highlights

Eco-Clean Car Wash is seeking $350,000 in debt financing to launch its car wash business. The funding will be dedicated towards securing the property and purchasing car wash equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, utilities, and marketing expenses. The breakout of the funding is below:

• Property purchase and build-out: $200,000
• Car wash equipment and supplies: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Eco-Clean Car Wash.

Company Overview

Who is eco-clean car wash.

Eco-Clean Car Wash is a newly established full-service car wash located in Boston, Massachusetts. Eco-Clean will be the most reliable, eco-friendly, and high quality choice for vehicle owners in the Boston area. The company’s eco-friendly approach is built on less water, less energy, and more customer service. Eco-Clean Car Wash will provide a comprehensive array of car wash and car detailing services sure to impress any eco-conscious vehicle owner. The company uses eco-friendly technology to ensure smart water usage, runs on solar power, and uses chemical-free products to clean and detail customers’ automobiles.

The company’s management team is dedicated to training all employees on the best practices for car detailing and customer service to exceed customer expectations. Each car wash attendant and auto detailer is trained to practice attention to detail and thorough cleaning of each car that comes through the car wash.

Eco-Clean Car Wash History

Eco-Clean is owned and operated by Thomas Wright, a former car wash manager who has a Finance degree from the University of Boston. Thomas has worked for a local car wash company and managed a small team of car wash attendants. Thomas’s tenure with the car wash company has given him the skills and knowledge required to venture out on his own and start his own car wash. Thomas has gained a reputation for being an exemplary manager and has a list of car wash attendants who have expressed interest in working for his new company.

Since incorporation, Eco-Clean Car Wash has achieved the following milestones:

• Registered Eco-Clean Car Wash, LLC to transact business in the state of Massachusetts.
• Has identified the desired location and vacant property to purchase for the car wash.
• Reached out to potential suppliers of chemical-free products and eco-friendly car wash equipment to get quotes.
• Began recruiting a staff of car wash attendants and car detailers to work at Eco-Clean Car Wash.

Eco-Clean Car Wash Services

Industry analysis.

The global car wash industry is an estimated $33B market with North America boasting the most car washes of any region. The United States alone contributes to approximately 43% of the total global market share with over 60,000 car wash locations operated by 16,000 companies with over 163,000 employees across the country. The states with the most car washes are California (2,025) followed by Texas (1,465), Florida (1,289), and New York (901).

The market for car washes is highly fragmented with no major players and no companies with more than 5% market share. The most common types of car washes are self-service bay, detailing services, in-bay automatic wash, hand washing, exterior only, and full service. In-bay automatic car wash stations are the most popular, with 51% of customers preferring this type of car wash.

Car wash operators who use eco-friendly products and run eco-friendly facilities can gain a competitive advantage especially among millennial and Gen Z customers who prefer eco-friendly options and are willing to spend more money on these products and services.

Customer Analysis

Demographic profile of target market.

Eco-Clean Car Wash will target all vehicle owners in Boston. The company will target owners of cars, trucks, SUVs, RVs, motorcycles, and vans. Eco-Clean Car Wash will also target those individuals who prefer to do business with eco-friendly companies and are willing to spend more for an eco-friendly car wash.

The precise demographics for Boston, Massachusetts are:

Customer Segmentation

Eco-Clean will primarily target the following customer profiles:

• Owners of cars, trucks, vans, SUVs, motorcycles, and RVs
• Eco-conscious consumers

Competitive Analysis

Direct and indirect competitors.

Eco-Clean Car Wash will face competition from other companies with similar business profiles. A description of each competitor company is below.

Clean & Dry Car Wash

Clean & Dry Car Wash is a full-service car wash located in Boston, Massachusetts. The car wash offers a wide variety of car wash and detailing services including automated, self-service, handwash, and no-water wash options. The company is owned and operated by car enthusiasts who know the importance of car care and are dedicated to providing quality service for their customers. Clean & Dry Car Wash ’s promise is to deliver personalized customer service, exceptional car washes, and low prices.

Classy Bubble Car Wash

Classy Bubble Car Wash is a Boston-based car wash and auto detailing company that provides outstanding service to car owners. Classy Bubble Car Wash makes it easy to get a high quality car wash without the hassle. The company provides comprehensive full-service car wash services for cars, trucks, vans, and any other standard-sized vehicle. The owners of Classy Bubble Car Wash are car detailing professionals so they understand how a thorough detailing job should look. The company has three tiers of car wash packages to choose from – basic, premium, and extra premium. Customers can choose eco-friendly product options like chemical-free soap and waterless washes for an additional fee.

Shine Clean Car Wash

Shine Clean Car Wash is a trusted Boston-based car wash that provides superior service to car owners in Boston and surrounding areas. The company has three locations throughout the city and is able to provide a one-stop shop for anyone looking to get a quality car wash fast. Shine Clean Car Wash provides full-service car wash and auto detailing packages. The company’s car wash attendants are trained in efficiency to provide the quickest service possible and get customers back on the road sooner.

Competitive Advantage

Eco-Clean Car Wash will be able to offer the following advantages over their competition:

• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing for smaller services such as vacuuming or window cleaning.

Marketing Plan

Brand & value proposition.

Eco-Clean Car Wash will offer the unique value proposition to its clientele:

• Eco-Clean Car Wash uses an eco-conscious approach in every aspect of the business from the chemical-free products and water conservation to the recycling program and incentives for customers and employees who make green choices.
• Flexible pricing options – customers can choose from multiple packages, monthly memberships, or a la carte pricing.

Promotions Strategy

The promotions strategy for Eco-Clean Car Wash is as follows:

Social Media Marketing

The company will invest in professional marketing services provided by a local marketing firm. Social media marketing will be one of the most effective and low-cost strategies for gaining brand awareness and increasing the company’s customer base. The marketing firm will help manage the social media presence by creating and updating various social media accounts such as Twitter, Instagram, Facebook, and TikTok.

Print Advertising

Eco-Clean Car Wash will invest in professionally designed print ads to display in flyers, newspapers, magazines, and direct-mailers.

Broadcast & Streaming Media Advertising

The company will invest in commercials to be played on broadcast networks, podcasts, and streaming services.

Website/SEO Marketing

Eco-Clean Car Wash will work with the same local marketing firm that created their social media strategy to also make the company website. The website will be well organized, informative, and list all the services and pricing options that Eco-Clean is able to provide. The website will also include information on all of the eco-friendly initiatives the company is implementing and ways customers can get involved. The marketing firm will also manage Eco-Clean’s website presence with SEO marketing tactics so that when someone types into the search engine “Boston car wash” or “car wash near me”, Eco-Clean Car Wash will be listed at the top of the search results.

The pricing of Eco-Clean Car Wash will be premium. Customers come to Eco-Clean Wash for high quality eco-friendly washes and superior service. However, customers will also have the opportunity to receive steep discounts for participating in eco-friendly incentives and promotions.

Operations Plan

The following will be the operations plan for Eco-Clean Car Wash.

Operation Functions:

• Thomas Wright will be the Owner and Co-Manager of Eco-Clean Car Wash. He will oversee all finances, supplier relationships, and eco-initiatives for the company.
• Patrick Collins – Co-Manager who will be responsible for all car wash equipment inspections, car wash operations, and attendant training/management.

Eco-Clean will outsource many of its business functions including marketing, maintenance, and recruitment. The company will use business management software for customer relationship management (CRM), accounting/bookkeeping, and employee scheduling.

Milestones:

Eco-Clean Car Wash will have the following milestones complete in the next six months.

10/1/2022 – Finalize contract to purchase property.

10/15/2022 – Purchase car wash equipment and supplies.

11/1/2022 – Begin build-out of the car wash facility.

12/15/2022 – Begin recruiting and training car wash attendants.

1/22/2023 – Implement the marketing campaign.

2/1/2023 – Eco-Clean Car Wash opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Eco-Clean Car Wash are the car wash fees that will be charged to the customers in exchange for car wash and detailing services.

The cost drivers will be the overhead costs required in order to staff a car wash. The expenses will be the payroll cost, utilities, car wash supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of car washes per month: 2,000
• Average fees per month: $35,000
• Commercial property mortgage payment per year: $60,000

Financial Projections

Income statement, balance sheet, cash flow statement, car wash business plan faqs, what is a car wash business plan.

A car wash business plan is a plan to start and/or grow your car wash business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your car wash business plan using our Car Wash Business Plan Template here .

What are the Main Types of Car Wash Businesses?

There are a number of different kinds of car wash business , some examples include: Automatic or Tunnel Car Washes, In-bay Automatic Car Washes, Self-service, and Mobile Car Washes.

How Do You Get Funding for Your Car Wash Business Plan?

Car wash businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. This is true for a car detailing business plan or a car washing business plan.

What are the Steps To Start a Car Wash Business?

Starting a car wash business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Car Wash Business Plan - The first step in starting a business is to create a detailed business plan for your car wash  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your car wash business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your car wash business is in compliance with local laws.

3. Register Your Car Wash Business - Once you have chosen a legal structure, the next step is to register your car wash business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your car wash business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Car Wash Equipment & Supplies - In order to start your car wash business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your car wash business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful car wash business:

• How to Start a Car Wash Business

Other Helpful Business Plan Templates

Franchise Business Plan Template Car Detailing Business Plan Template

Car Wash Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

While there are numerous crucial steps to bring your vision to fruition, the creation of a business plan might not be your immediate priority. It's completely understandable if you're more focused on designing a unique car wash experience, developing specialized cleaning methods, and cultivating an inviting atmosphere for your customers. However, in the eyes of potential investors and lenders, a well-crafted business plan is often a prerequisite. This is particularly true if you're seeking financial backing, such as a loan from the Small Business Administration (SBA). A compelling business plan featuring accurate financial projections becomes an essential asset to showcase the potential triumph of your car wash venture. Equally important is ensuring that your plan and financial data align with industry standards.

What Should be Included in a Car Wash Business Plan?

Car wash business plan outline, how to do market research for a car wash business plan.

• How to Create Financial Projections for a Car Wash Business Plan

Example Car Wash Business Plan

Car wash business plan faqs.

With that in mind as the path forward, let’s dive in. 

Your car wash business plan should compellingly convey the distinctiveness of your venture, highlight your team's aptitude for managing the operation, and outline meticulously calculated financial projections aimed at optimizing profitability. In the sections below, we present a comprehensive analysis of our complimentary car wash business plan template , meticulously designed to suit the dynamic and thriving car wash industry.

1. Executive Summary

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

Central to every car wash business plan lies the foundation of market research. It's imperative to grasp your position within the market and substantiate the existence of substantial demand for your distinct car wash concept, location, and pricing strategy. Our approach to car wash market research is elaborated upon here, encompassing a comprehensive understanding of competitors, forecasting potential customer footfall, strategically choosing an optimal location, and anticipating any seasonal fluctuations that could influence your business. Here, we present tools and strategies to effectively conduct market research tailored to your envisioned car wash enterprise.

How Much Will it Cost to Advertise for my Car Wash Business?

We recommend utilizing Google Keyword Planner as a valuable resource to ascertain which keywords to target in your advertising efforts, driving potential customers to your car wash website. This tool also provides insights into the projected cost per click for various keywords, as demonstrated in the example below:

What Keywords are Customers Searching for? 

We use both Google Keyword Planner and Ahrefs to see which keywords are driving traffic to your competitors websites.  For example, you can run a report on your competitors website and see which keywords they are ranking for and how much organic traffic they are getting from each keyword.  This can help you focus your SEO efforts. 

How Seasonal are Car Wash Businesses? 

We like to use Google Trends to determine how seasonal your car concept might be.  You can see below that “Car wash near me” might not be all that seasonal.

How Many Customers Visit my Competitors Each Month?

Finally, we like to pull foot traffic reports on your competitors to be able to see how many customers they typically receive at their car wash station.  You can see an example below that shows number of visits per month for a specific address:

In the realm of car wash ventures, the volume of potential clientele holds pivotal significance, serving as a foundational premise for your financial forecasts. Therefore, comprehending the customer count frequenting your competitors will aid in gauging the anticipated flow of customers to your car wash establishment.

How to Create Financial Projections for a Car Wash Business Plan

Just like in any industry, the car wash business has its unique factors that influence financial projections, such as location, pricing strategies, and customer demand. Utilizing a car wash financial projection template can simplify the process and enhance your confidence. Creating accurate financial projections goes beyond showcasing your car wash's ability to attract customers; it's about illustrating the financial path to profitability and the realization of your business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your car wash, including site acquisition or lease, construction or renovation expenses, equipment purchase or lease, licensing and permits, and initial marketing efforts.
• Forecast revenue based on projected car wash volume, pricing per wash, and potential revenue streams such as additional services or monthly subscription plans.
• Project costs related to labor, maintenance and repair of equipment, utilities, and cleaning supplies.
• Estimate operating expenses like insurance premiums, marketing and advertising costs, administrative expenses, and salaried employees.
• Calculate the capital needed to launch and sustain your car wash, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a vital component of your car wash business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about market trends, customer preferences, and advancements in car wash technologies to ensure your financial plan aligns with your goals and positions your car wash for long-term success.

Here, we present the content of our sample car wash business plan. Additionally, you have the option to access a Google Doc version of this car wash business plan template . This allows you to personalize and modify it to align with your unique vision. To further assist you in tailoring the business plan to your car wash concept, you can follow our video walkthrough guide. It's designed to seamlessly integrate the business plan into your specific car wash venture.

Table of Contents

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: Speedy Suds Car Wash is a premier car wash facility located in Houston, Texas. We offer professional car washing and detailing services to vehicle owners in the local area. 

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Provide an exceptional car wash experience that exceeds customer expectations, resulting in a high customer satisfaction rate of at least 95% within the first year.

    - Example: Long-term: Integrate eco-friendly technologies and practices into our car wash operations, such as water recycling systems, energy-efficient equipment, and environmentally friendly cleaning products, to reduce our ecological impact.

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: Our mission is to provide exceptional car washing and detailing services that leave our customers' vehicles spotless and gleaming. We are dedicated to delivering a superior customer experience, employing environmentally friendly practices, and maintaining the highest standards of quality and professionalism.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example:  By focusing on exceptional service quality, a customer-centric approach, innovative technology, and strategic partnerships, Speedy Suds Car Wash aims to achieve sustainable growth and success in the car wash industry.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: Speedy Suds Car Wash was founded by  Carter Conner and Marty Foster who combined their expertise in the automotive industry and business management to establish a premium car wash service in Houston, Texas. ‍

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: Speedy Suds operates as a limited liability corporation (LLC)

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: Speedy Suds Stands out by providing a superior car wash experience with eco-friendly practices, cutting-edge technology, premium car care products, and exceptional customer service.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: Our services cater to car owners and enthusiasts in Houston, Texas, who seek a convenient, high-quality, and environmentally friendly car wash solution that preserves the appearance and value of their vehicles.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The car wash industry in Houston, Texas is thriving due to the city's large population, car ownership rates, and the growing demand for professional car care services.

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Ocean Fresh - known for their quick and efficient service, Fresh Clean Car Wash is a popular choice among busy professionals. 

        - Example: Indirect competitors: Neighborhood Gas Station Car Wash: Several gas stations in the area offer car wash services as an additional convenience for their customers.

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: Speedy Suds Car Wash targets a wide range of customers, including individual car owners, fleet owners, and car enthusiasts who value convenience, quality, and environmentally friendly practices in car wash services.

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: Speedy Suds Car Wash can leverage market opportunities by offering premium add-on services such as detailing, paint protection, and interior cleaning, partnering with local businesses for cross-promotion, and implementing loyalty programs to retain customers and drive repeat business.

• Example 1: Conduct a survey of local car owners to determine their car wash frequency and preferences. This data will help identify the potential customer base and their needs. (e.g., 80% of surveyed car owners express a need for a convenient and high-quality car wash service in the area)
• Example 2:  Analyze the car wash industry trends in the local market, such as increasing car ownership and the demand for eco-friendly car wash solutions. This information will validate the market potential and identify niche opportunities. (e.g., The number of registered vehicles in the area has grown by 10% annually over the past three years, indicating a growing customer base for car wash services)
• Example 3: Perform keyword research to understand the volume & trends in relevant search phrases such as “carwash near me”.

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: Speedy Suds offers a comprehensive range of car wash and detailing services, including exterior washing, interior cleaning, waxing, tire dressing, and additional add-on services such as upholstery cleaning and paint protection.

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: Speedy Sudsadopts a competitive pricing strategy based on the local market rates, offering affordable and transparent pricing for its services. Different service packages and options are available to cater to various customer needs and budgets.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build customer relationships.

        - Example: Speedy Suds aims to generate sales and build customer relationships by focusing on providing a convenient and satisfying car wash experience to customers, ensuring repeat business and positive word-of-mouth referrals.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: Speedy Suds Car Wash primarily operates through its physical location in Houston, Texas, providing easy access to customers. Additionally, an online presence allows customers to explore services, make appointments, and access information conveniently.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: We will implement a targeted marketing strategy that includes online advertising, local community engagement and collaborations with local businesses. Special promotions, loyalty programs, and referral incentives will be used to attract new customers and encourage repeat visits.

• Example 1: Offer a special introductory promotion, such as discounted rates or a free exterior wash for the first 100 customers. This will create excitement and incentivize customers to try Speedy Suds. (e.g., 90% of the promotional offers are redeemed within the first month, indicating a strong initial customer acquisition). You could also offer pre-launch sign ups and all signups secure a discounted rate for the first year of operation. Share with your lender how many individuals are on that list.
• Example 2: Implement a referral program where existing customers receive discounts or free services for referring new customers. This will encourage word-of-mouth marketing and generate a steady stream of new customers. (e.g., 30% of new customers are referred by existing customers, demonstrating the effectiveness of the referral program)
• Example 3: You can start offering car wash and detailing services from your home to establish a small customer base and loyal support system before you launch a full car wash. Provide these first customers with a special lifetime discount. Share sales data for your test phase customers.

5. Operations and Management

5.1. facility location and layout.

 Specify the company's physical business location and refers to the internal arrangement and organization of the space.

        - Example: Speedy Suds will secure a prime location in Houston, Texas, with high visibility and easy accessibility from major thoroughfares. The facility will be designed to optimize traffic flow, with separate areas for car wash services, vacuum stations, and customer waiting areas.

5.2. Staffing and Expertise

  Highlight the company's approach to staffing and the expertise required to deliver high-quality car wash services.

        - Example: Speedy Suds will hire a dedicated team of experienced car wash professionals who are skilled in providing efficient and thorough car wash and detailing services. Ongoing training programs will be implemented to enhance their expertise in the latest car wash techniques and customer service.

5.3. Customer Service

Outline the company's commitment to ensuring customer satisfaction

        - Example: Speedy Suds Car Wash will prioritize customer satisfaction by training our staff to deliver friendly and personalized service. We will strive to exceed customer expectations through attentive communication, timely service delivery, and addressing any concerns promptly and professionally.

• Example: Speedy Suds is founded by  Carter Conner and Marty Foster who combined their  extensive experience in the car wash industry and have successfully operated multiple car wash businesses in the past. This expertise allows them to understand the industry's best practices, operational challenges, and customer expectations, ensuring the success and smooth operation of Speedy Suds. Lenders want to know that you or your team know that you know what you are doing and know what you are getting yourself into.

5.4. Technology and Systems

Describe the technology and systems that will be utilized to streamline operations and enhance efficiency.

        - Example:  We will implement an automated car wash system with advanced sensors and brushes designed to deliver a thorough and gentle cleaning. Additionally, we will utilize a cloud-based management system to streamline scheduling, track customer preferences, and provide personalized service recommendations.

All of the unique Car Wash  projections you see here were generated using ProjectionHub’s 

Car Wash Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

  Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of Speedy Suds. We have already raised $500,000 from our personal investment and a small investor, and we are working  to secure a business loan of around $2.6 million. 

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  Speedy Suds projects $300,000 in revenue in the first year. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: Speedy Suds 's primary projected operating expenses include a large amount of marketing related items as well as utilities and insurance. We also plan to hire a salaried general manager right away followed by a shift manager in the second year. We anticipate our COGS both in direct labor and materials to be around 30% of total sales.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: Speedy Suds expects to achieve profitability in year 3  of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: Speedy Suds cash flow projections account for seasonal fluctuations in sales and expenses.

  Determines the point at which the company's revenue equals its expenses.

        - Example: Speedy Suds anticipates reaching its break-even point in year 3 of operation.

Watch how to create financial projections for your Car Wash Business

Key Point  4 

• Example 1: Example 1: Benchmark financial projections against industry averages and ratios. For example, compare projected revenue per car wash to the average revenue per car wash in the local market to ensure competitiveness and profitability. (e.g., Projected revenue per car wash aligns with the local market average of $12 per wash)
• Example 2: Consider factors such as seasonality and fluctuations in car wash demand. Analyze historical data from other car wash businesses to estimate revenue variations throughout the year. (e.g., A 20% increase in revenue during the summer months due to higher car wash demand)
• Example 3: Conduct a sensitivity analysis to assess the potential impact of external factors on financial projections, such as changes in water and utility costs or fluctuations in labor expenses. (e.g., A 10% increase in water and utility costs reduces the projected net profit margin by 2%)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: To demonstrate their commitment and shared risk, the founding team of Speedy Suds will invest a significant portion of their personal savings into the business. This personal financial contribution showcases their dedication and belief in the success of Speedy Suds, which will help build trust with lenders and investors.

How do I start a car wash business?

To start a car wash business, research the market and competition, develop a business plan, secure a suitable location, obtain necessary permits and licenses, purchase or lease car wash equipment, establish relationships with suppliers, and create a marketing strategy to attract customers.

What types of car wash services can I offer?

Car wash services can include exterior hand wash, automated or self-service car wash bays, interior cleaning and vacuuming, waxing and polishing, detailing services, and additional services such as engine cleaning or headlight restoration.

How can I attract customers to my car wash?

To attract customers, offer competitive pricing, provide efficient and thorough car washing services, maintain a clean and visually appealing facility, offer loyalty programs or discounted packages, utilize online platforms for promotions, and provide excellent customer service.

What are the essential equipment and supplies needed for a car wash?

Essential equipment and supplies for a car wash include high-pressure washers, soap and detergent dispensers, brushes or cleaning tools, water recycling systems, vacuum cleaners, air compressors, drying equipment, cleaning solutions, and a reliable payment system.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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How To Write a Winning Car Wash Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for car wash business owners who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every car wash business owner should include in their business plan.

Download the Carwash Business Plan Template

What is a Car Wash Business Plan?

A car wash business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Car Wash Business Plan?

A car wash business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Car Wash Business Plan

The following are the key components of a successful car wash business plan:

Executive Summary

The executive summary of a car wash business plan is a one to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your car wash company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your car wash business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your car wash firm, mention this.

You will also include information about your chosen car wash business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a car wash business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the car wash industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a car wash business may include people who regularly get their car washed (e.g., every two weeks), those who only wash their car when it’s necessary (e.g., when it’s visibly dirty), and those who never wash their car (but, may take it to a detailing service once or twice a year).

You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or car wash services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your services here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them, if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or, you may promote your car wash business via word-of-mouth marketing.

Operations Plan

This part of your car wash business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person? What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a car wash business include reaching $X in sales. Other examples include expanding to a second location, launching a new service, or hiring additional staff.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific car wash industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Car Wash Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Car Wash Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup car wash business.

Sample Cash Flow Statement for a Startup Car Wash Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your car wash company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is a critical document for any car wash business. If you are seeking funding, it can help you obtain it.  

Finish Your Carwash Business Plan in 1 Day!

Wish there was a faster, easier way to finish your carwash business plan?

With our Ultimate Carwash Business Plan Template you can finish your plan in just 8 hours or less!

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How to create a car wash business plan

• Annabelle Amery
• Sep 6, 2023

Starting a business , whether it's a small venture or a large enterprise, requires careful planning and strategizing. One essential component of this process is creating a clear business plan that serves as a roadmap for starting your car wash business .

A business plan can help you effectively navigate the challenges of the car wash industry, and can serve as the driving force behind your business. Keep reading to learn more about how to create a strong plan, and put your business in the right lane.

Looking to promote your car wash business online by making a website ? Get started for free with Wix’s website builder .

How to write a car wash business plan in 6 steps

As mentioned above, a well-structured business plan serves as a roadmap, guiding your decisions and strategies to ensure the success and profitability of your venture. Here are the six main parts of a car wash business plan:

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is the first part of your car wash business plan, providing an overview of your entire plan in a concise and compelling manner. It should capture the reader's attention and provide a clear understanding of your business idea, goals and strategies.

To write a clear executive summary for your car wash business plan you should start with a compelling introduction that highlights the unique aspects and value proposition of your car wash business. Always provide a brief description of the market opportunity and target audience for your services. Make sure to summarize your marketing strategies , competitive advantages and financial projections. Finally, include key milestones and objectives that you aim to achieve with your car wash business.

02. Business and domain names

Choosing the right business name for your car wash is crucial for building brand awareness and trust among your target audience. Your business plan should outline the process of deciding on a company name and domain name.

To choose the right name for your car wash business:

Brainstorm small business name ideas that reflect the nature of your car wash services, such as cleanliness, efficiency or environmental friendliness.

Use a business name generator tool to generate creative and unique name options.

Consider the availability of domain names that align with your chosen company name.

Check for trademark conflicts and ensure that your chosen name is not already registered by another business in your industry. (And make sure to register your business once you’ve decided on your name and business structure.)

When choosing a domain name:

Keep it short, memorable and easy to spell.

Avoid hyphens or numbers that can confuse potential customers.

Use relevant keywords if possible to improve search engine visibility.

Select a domain extension (.com, .net, .org) that is widely recognized and trusted by customers.

03. Market analysis and research

Market analysis and research in your business plan is crucial for understanding the competitive environment and developing effective marketing strategies. This section should provide an in-depth analysis of your target market, customer demographics, competitors and industry trends.

You can do this by:

Analyzing the competitive landscape by researching existing car wash businesses in your area. Identify their strengths, weaknesses, pricing strategies and customer reviews.

Identifying market trends and opportunities that can help you differentiate your car wash business and attract customers.

Conducting surveys or interviews with potential customers to gather insights into their preferences, expectations and willingness to pay for car wash services.

Then, use the data and information gathered from your marketing analysis to develop a solid marketing strategy that will effectively target and attract your ideal customers.

04. Operations plan

The operations plan is a crucial part of your car wash business plan as it outlines the practical aspects of running your business. This section should cover location selection, premises layout, equipment requirements and staffing needs.

When developing the operations plan make sure to:

Select a suitable location for your car wash business that offers high visibility, easy access and ample parking space.

Choose the layout of your premises to optimize workflow and create a pleasant customer experience.

List the required equipment for your car wash, such as automated washing systems, water treatment systems, vacuum cleaners and payment systems.

Outline the staffing needs for your car wash business, including roles like car wash attendants, cashiers and maintenance personnel. Specify their responsibilities and required qualifications.

05. Marketing and advertising plan

The marketing and advertising plan in your car wash business plan details the strategies and campaigns you will implement to promote your services. This section should include an overview of your target market, branding strategies, online presence, advertising channels and promotional activities.

Start by creating a strong brand identity that reflects the values and unique selling points of your car wash business. As part of this, establish an online presence through a business website , social media profiles and online directories. Consider using a mix of advertising channels like local newspapers, radio ads, online ads and community sponsorships.

You could also think about promotional activities—like loyalty programs and referral incentives—to encourage repeat business. By implementing a well-thought-out marketing and advertising plan, you can effectively reach your target audience and maximize customer acquisition for your car wash business.

Building your brand from the ground up? Use Wix’s logo maker to get the creative juices flowing.

06. Financial plan

The financial section of your business plan provides holistic insight into the financial facets of your venture, including how you plan to raise money for your business , revenue forecasts, operational costs and the timeline for achieving profitability. This section not only establishes the fiscal soundness of your car wash business but also helps prospective investors and lenders assess the projected return on their investment.

Thinking of starting another type of business? Check out some of these creative service business ideas  to help get you started.

Car wash business plan examples

These draft business plan templates provide a starting point for your own car wash business plan. Customize them to fit your specific goals. Remember to conduct thorough research and analysis to ensure the accuracy of your financial projections and strategies. Check out these service business examples to help you get started:

Business plan template 1: Full-service car wash

Sparkling Suds Car Wash is a full-service car wash facility located in downtown Anytown. Our mission is to provide exceptional car washing services with a focus on customer satisfaction and environmental sustainability. With our state-of-the-art equipment, eco-friendly cleaning products and highly trained staff, we aim to become the go-to destination for car owners who value quality and convenience.

Company name and domain name

The company name chosen for our car wash business is Sparkling Suds Car Wash. The corresponding domain name will be www.sparklingsudscarwash.com.

Target market: Our primary target market includes busy professionals, families and car enthusiasts who seek high-quality car washing services.

Competitive landscape: We have identified three major competitors in our area, each offering different levels of service and pricing.

Market trends: There is a growing demand for eco-friendly car wash services as customers become more conscious of their environmental impact.

Location: We have secured a prime location in downtown Anytown with high visibility and easy access.

Premises layout: The premises will be designed to accommodate multiple vehicles simultaneously, ensuring efficient workflow and minimizing customer wait times.

Equipment: We will invest in state-of-the-art automated washing systems, water treatment systems, vacuum cleaners and payment systems.

Staffing: Our car wash business will require a team of skilled car wash attendants, cashiers and maintenance personnel.

Target market: Our marketing efforts will focus on reaching our target market through online advertising, local community events and partnerships with nearby businesses.

Branding: We will create a strong brand identity that reflects our commitment to quality, convenience and environmental sustainability.

Online presence: We will build a professional website and establish a presence on social media platforms to reach a wider audience.

Advertising channels: Our advertising strategy will include local newspaper ads, radio commercials and online advertisements targeted at our specific demographic.

Financial projections

Startup costs: We estimate the initial investment required for equipment, leasehold improvements, marketing expenses and working capital to be $300,000.

Revenue projections: Based on market research and conservative estimates, we project annual revenue of $500,000 in the first year, with steady growth in subsequent years.

Expenses: We have carefully considered all expenses associated with running the car wash business, including labor costs, utilities, supplies and maintenance.

Business plan template 2: Self-service car wash

Bubbles & Jets Car Wash is a self-service car wash facility located in a high-traffic area of Suburbia. Our goal is to provide a convenient and affordable car washing experience for individuals who prefer to wash their own vehicles. With our user-friendly equipment, well-maintained facilities and competitive pricing, we aim to become the preferred choice for self-service car washing in the area.

The chosen company name for our self-service car wash business is Bubbles & Jets Car Wash. The corresponding domain name will be www.bubblesandjetscarwash.com.

Target market: Our primary target market includes budget-conscious individuals who enjoy the satisfaction of washing their own vehicles.

Competitive landscape: We have identified two existing self-service car washes in the area, each with its own strengths and weaknesses.

Market trends: There is a growing trend of people opting for self-service car washes as they value control over the cleaning process and cost savings.

Location: We have secured a strategic location in Suburbia with easy access and ample parking space for customers.

Premises layout: The premises will be designed to accommodate multiple vehicles simultaneously, providing customers with enough space to comfortably clean their cars.

Equipment: We will invest in high-quality self-service car wash equipment, including pressure washers, foam guns, vacuum cleaners and vending machines for cleaning products.

Staffing: Our self-service car wash business will require minimal staffing, primarily for maintenance and customer assistance.

Target market: Our marketing efforts will focus on reaching our target market through local advertising, online directories and word-of-mouth referrals.

Branding: We will create a brand identity that emphasizes convenience, affordability and a clean and well-maintained facility.

Online presence: We will establish a basic website with information about our services, location and operating hours.

Advertising channels: Our advertising strategy will include local newspaper ads, flyers distributed in nearby neighborhoods and online listings in car-related directories.

Startup costs: We estimate the initial investment required for equipment, leasehold improvements, marketing expenses and working capital to be $150,000.

Revenue projections: Based on market research and conservative estimates, we project annual revenue of $200,000 in the first year, with steady growth in subsequent years.

Expenses: We have carefully considered all expenses associated with running the self-service car wash business, including utilities, supplies, maintenance and minimal staffing costs.

Benefits of creating a car wash business plan

Your business plan has both short-term and long-term implications for your business. Among them:

Attracting financing: A well-structured business plan tailored to your car wash venture can pique the interest of potential investors and lenders. By showcasing your understanding of the car wash industry, competitive strengths and growth projections, you increase your chances of securing the funding needed to launch or expand your car wash business.

Resource planning: Crafting a business plan specific to your car wash operations allows you to gain a comprehensive grasp of the resources required for a successful launch and ongoing operations. This encompasses identifying essential equipment, supplies, technology and staffing necessary to efficiently run your car wash establishment.

Goal setting: A thoughtfully outlined car wash business plan empowers you to set achievable objectives and milestones. It provides a roadmap for measurable targets, guiding your progress and channeling your efforts toward attaining sustainable success.

Competitive insights: Infusing thorough market analysis into your car wash business plan equips you to navigate the competitive landscape. By pinpointing competitors' strengths and vulnerabilities, you can devise strategies to differentiate your car wash business and gain a distinct market advantage.

Risk management: Integrating a comprehensive market evaluation and competitive assessment into your business plan enables you to identify potential risks that might impact your car wash enterprise. Developing contingency measures and risk-mitigation tactics within your plan equips you to navigate uncertainties and minimize potential disruptions.

Expansion possibilities: A well-constructed business plan for your car wash enterprise lays the groundwork for future growth and diversification. It provides a platform to assess expansion opportunities, such as adding more locations or introducing novel services, while also offering strategies to capitalize on these prospects.

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How to write the business plan for a car wash

If you've long been interested in cars and keeping them in tip-top condition, you may have decided to open your very own car wash business. 

Before diving headfirst into launching your car wash, however, you're gonna need a solid business plan.

To help you through this process, we've written the guide below to offer our top tips to help you write your car wash business plan. 

Why write a business plan for a car wash?

The business plan for a car wash enables an entrepreneur to examine their business in detail, evaluate the amount of funding needed to get it up and running and assess its expected profitability. 

It also serves as a roadmap for the business' first three years of operation. As your car wash business moves through its first throes of operation, you can use the business plan to track whether it's flourishing as it should, by comparing the figures estimated in your initial forecasts. 

A car wash business plan will also be specifically requested by any bank or investor you decide to approach, so drafting one up is a mandatory step when it comes to securing financing. 

So what does a car wash business plan look like? In a simplified way, it consists of two main parts:

• A financial forecast highlighting the expected financial performance over the next 3 years and the potential for profitability
• A written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives.

Create your car wash business plan online!

Think your car wash could be profitable? Find out how with a business plan!

Information needed to create a business plan for a car wash

Carrying out market research for a car wash .

Conducting market research for a car wash  will be the very first step of creating your business.

Market research has three objectives:

• To enable you to verify whether there's an unmet demand in the area you'd like to set up your car wash
• To help you come up with a strong business concept to meet this demand 
• To assist you in the collection of data required to estimate your car wash's sales potential 

With the population growing more environmentally conscious, car wash's are evolving - with an increasing number of waterless car washes in the UK.

There is still, however, a strong presence of car washes that use rollers and pressure jets. The challenge for you is to choose a concept that meets the desires of your target customers. 

Thanks to market research, you'll be able to understand not only what your customers need, but also how often they go to a car wash and their favourite type of washing solution. 

For this, you'll have to ask yourself a number of questions:

• How many times do your customers, on average, wash their car per year?
• Who prefers which type of wash: roller, hand wash or pressure washer?
• What is the average budget per customer?

By answering these questions as you go along, you'll be able to make a compelling case that there's space on the market for your car wash. You should also consider analysing trends within the car wash industry to get a grasp on the different types of services you can offer customers. 

Next, you need to check out the competition around you (who they are, what services they offer and how much they're making), and get in touch with car wash owners in the area to get a ballpark figure of the number of customers they welcome each year. 

When it comes to the car wash business, leave no stone unturned. If you want to convince the investor reading your business plan that your car wash is worth pumping money into, your market research needs to be precise and detailed. 

Developing the marketing plan for a car wash

Once the market research has been carried out, it's time to focus on your marketing strategy.

First, take a look at the communication methods used by your competition to attract and retain customers, whether that includes disrupting the local radio's airwaves with a jingle about their services or posting about car wash discounts on their Instagram feed. 

Doing so will give you a better idea of what strategy you can adopt to promote your car wash. Even if your location is your biggest asset, you'll still need to establish a few marketing actions to turn these circumstantial customers into regulars. 

Advertising online or in your local newspaper, creating loyalty cards or coming up with promotional offers are all excellent ways to do so. The most important thing, as far as the car wash business plan is concerned, is that you have a clear idea of how much money you can afford to spend on each action, as well as what you can expect back in terms of sales.

The staffing and equipment needs of a car wash

Last but not least, before writing the business business plan for your car wash you'll need to take note of the staffing requirements, as well as the equipment needed to get it up and running.

Both of these factors will depend on the concept you choose. If you decide to launch an automatic car wash with rollers, for example, you'll be able to operate without paying for on-site employees, but will have significant investments when it comes to equipment and renovation work. 

Adversely, opening a car wash that offers only hand washing will require very little investment but have pretty hefty staffing requirements. 

What is the financial forecast for a car wash?

Establishing the financial forecast is an integral step in the development of your car wash's business plan. 

It is composed of 4 main tables, highlighting different financial aspects of the company:

• Projected P&L statement
• Projected balance sheet
• Projected cash flow statement
• Initial financing plan

The projected P&L statement

The profit and loss statement, which starts with the turnover, allows you to evaluate the growth, evolution of your car wash's cost structure, and its expected profitability over the coming years. 

The projected balance sheet of your car wash

This table shows the value of the company's assets at a given time, and, in particular, the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc).

The projected cash flow statement

With the help of a projected cash flow statement, you will see how much cash is generated by your car wash, where it comes from, and how it is used, whether it's to repay its loans or regularly renew equipment. 

You'll also be able to see if you have enough cash to fulfil these obligations, or even if you might soon have enough cash to expand your business by opening more car washes. 

The initial financing plan

This section of your car wash's financial forecast gives your bank or investor a quick overview of the resources needed to launch your business and their costs - as well as the personal contribution you plan to make. 

The editorial part of a car wash business plan

Once the financial forecast of your car wash has been set up, you have the opportunity to put these figures and estimations into context by delving into the written part of your car wash business plan. 

The editorial section of your business plan is just as important as the financial forecast because it presents each aspect of the business in detail and proves to investors that you've thought carefully about the risks associated with it. 

It's broken down into 6 sections, which we have summarised below: 

The executive summary

Think of this section as the equivalent of a cover letter for your car wash business plan. The aim here is to introduce your project to investors in as engaging and concise a manner as possible, encouraging them to read on and learn more about your exciting venture. 

This part contains all the administrative information about your company, including the business partner's and their roles, the legal status of the company and its location. 

Products and services 

Whether you've decided to set up an automatic car wash bay or decided to go for hand washing, you'll use this section to explain the services offered by your car wash. 

Market research

It's within this section of your car wash business plan that you'll present the results of the market research we mentioned at the beginning of this article. The objective here is to demonstrate, through knowledge of the national and local market, that there is indeed a viable business opportunity for a new car wash in the area you've chosen.

In this part, you'll reveal three key plans: 

• Your sales strategy - the prices you'll set 
• Your marketing strategy - the actions you'll take to attract customers and build customer loyalty 
• Your risk management strategy - how you'll minimise the risks related to your business

In this section, you will give the reader an idea of the day-to-day operation of your car wash, including your opening hours, members of staff (if any) and the suppliers used, as well as how often you'll renew the stock.

The financial plan

Like we said, numbers need context. In this section, you'll illustrate the various financial tables and the assumptions you've made for them.

What tool should I use to write my car wash business plan?

Writing a business plan for a car wash can get pretty complicated, especially if you've never done it before. There are, however, several options at your disposal to help you draft one up:

Create your car wash business plan using Word or Excel

Using Excel and Word to create your car wash business plan is the cheapest solution, but not the most efficient.

While these software programs can be useful, they require that the user has good computer skills and a solid background in accounting to avoid mistakes. 

Hire a consultant to write your car wash's business plan

Hiring a chartered accountant or consultant to take care of the financial part of your business is a good way to avoid errors. 

However, the fees are generally quite expensive: budget around £1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

If you decide to hire a consultant or accountant, remember to check what's included in the service - are they developing a complete business plan or just doing the financial forecast? And are you will to pay extra for them to make changes, if necessary?

Use an online business plan software for your car wash's business plan

Another alternative is to use online business plan software . There are several advantages to using specialised software:

• You are guided through the writing process by detailed instructions and examples for each part of the plan 
• You can be inspired by already written business plan templates 
• You can easily make your financial forecast by letting the software take care of the financial calculations for you
• You get a professional document, formatted and ready to be sent to your bank.

If you're interested in using this type of solution, you can try our software for free by signing up here . 

We hope that this article has helped you to better understand how to write the business plan for a car wash. If you still have questions, do not hesitate to contact us for any questions related to the creation of a car wash.

Also on The Business Plan Shop

• Business plan template of a car wash
• How to optimise profitability for a car wash
• How to open a car wash
• Detailled business plan outline

Know someone who needs a business plan for car wash? Share this guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Car Wash Business Plan Template

Car wash company analysis.

In your company analysis, you will detail the type of car wash you are operating.

For example, you might operate one of these common types:

• Automatic or tunnel car washes (most common) in which a conveyor is used to move the automobile through a series of cleaning mechanisms. The vehicle is then typically hand dried by employees. Car detailing services are typically also offered at these facilities.
• In-bay automatic car washes in which the car is driven into a bay and then a machine and dryer rolls back and forth over it. This is often seen at gas stations and stand-alone car wash sites.
• Self-service, where the customer does the washing manually using including pressurized jet washing.
• Mobile car washes which are completed using water tanks and pressure washers often mounted on trailers, trucks, or in vans. Car detailing is often an add-on or included service for mobile car wash businesses.

In addition to explaining the type of car wash you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

CAR WASH BUSINESS PLAN OUTLINE

• Car Wash Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Car Wash Business Plan Summary

Other Helpful Automotive Business Plan Articles & Templates

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Auto Repair and Car Wash Business Plan

Start your own auto repair and car wash business plan

DIY Wash N' Fix

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

DIY Wash N’ Fix is a new concept in auto care. The Do-It-Yourself (DIY) market in America is increasingly popular, as evidenced in the growth of DIY housing suppliers. However, there remains a gap in the market for DIY auto repair, currently firms offer auto parts and tools, but not a place to perform 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. Assuming someone has the required skills or the desire to learn auto repair, they will likely be inclined to use our facility to cut costs. Additionally, sales of after-market auto parts have been increasing, which demonstrates Americans’ abilities and willingness to fix their own cars. The car wash industry is attractive, because it generates steady profits on little additional 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’ Fix has targeted a specific market of individuals who would like to work on their cars, yet they lack the proper space and equipment to do so. This is a growing market in urban areas, because many people live in apartment complexes that restrict on-site auto repair. Our target market is about 90% male in the age range of 18-55 who earn from $20,000 to $40,000 per year. Based on these desired demographics, we have chosen to locate our facility in Texas, Florida or California.

DIY Wash N’ Fix is a new and exciting concept, and we have estimated it will be a profitable endeavor. 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

The key success factors in this industry are:

• Quality of service.
• Good business practice.
• Skilled workforce.
• Marketing efforts/information provided to customers.
• Technologically advanced equipment.
• Environmental issues awareness.

The above trends provide some reasons for our business to be successful. Indeed, the current American economic slowdown and the eventuality of rising costs for our competitors (technology, labor, environment, etc.) will facilitate the growth of the DIY business. Moreover, the bad image that certain repair stores have is an advantage for us because people may not trust them anymore. Finally, the repair industry is a good investment in terms of profit projections.

However, we also outlined two major threats. First, the increase in the technologically advanced vehicle electronics may prevent people from repairing their car on their own. Second, many states have laws requiring regular emission and safety inspections, which will require people to go to a traditional garage, even if they are regular customers to our facility.

Car Wash Competitors:

• Single-activity car washes: they are typically private-owned businesses that offer car wash service only.
• Multiple-activity car washes: they are chains that offer many services; for instance, AAA, a California based car-care facility, has recently announced the opening of a full-service car wash, in addition to its repair services, shops, free Internet access and children’s play area.

The multiple-activity car washes are less numerous in terms of total number available. However, they more closely resemble our business process and are therefore considered the primary threat.

1.2 Objectives

It is appropriate to discuss the risks inherent in our business model. The central assumption that we’ve made in this plan is that part of the population exists that are willing and able to do basic repairs and maintenance on their automobiles, but are limited by lack of a proper workspace and appropriate 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.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

This will be a single-location firm providing a service to a local market. It will be a combination of a coin-operated car wash and an attached facility to allow DIY auto mechanics to rent repair bays with similar equipment and working conditions that professional mechanics enjoy. These repair bays would include hydraulic lifts, compressed air tools, individual lighting systems and specialty tools used only for specialized tasks.

The coin-operated car wash service is a long-standing service industry that is growing at 3% a year. The after-market auto parts market is also a long-standing industry, growing at 4% a year. There is overlap in the customer base of these two industries, but until now no one has linked the two and added customer value in the process.

This combination of services will complement each other and allow DIY Wash N’ Fix to enjoy the proven cash flows of a growing industry (coin-operated car wash) and increasing profitability from a new business venture. The business model relies on an appropriate population demographic to draw on, but once a suitable site has been selected then this operation has the potential to provide a steady income to the owners. Growth will most likely be achieved through franchising.

Though there are other firms that compete directly with the car wash portion of the business, the professional style auto mechanic bays for rent is a unique idea to market. This idea stems from facilities found at many major military installations. The majority of service members live in barracks and there are tight restrictions on the work that can be done on privately owned vehicles in the parking lots of those barracks. Therefore, the military built facilities where the service members could perform their own work on their vehicles.

To apply this business model to the civilian marketplace a similar demographic must be found. The required population must live in similar conditions, such as apartments, condominiums, or in areas with frequent inclement weather, which restrict car owners from performing auto repairs. Providing an area to rent that has adequate space, lighting and environmental controls and would also provide access to expensive professional equipment would appeal to DIY auto mechanics.

The value this business model brings to the market place is to the individual, who has the knowledge or desire to learn about basic auto repair, but does not have a place to do the work or the tools to perform the work. With the rising cost of auto repair parts and the labor costs for mechanics, a facility that would make performing standard auto maintenance and minor repairs more convenient and less expensive would provide tremendous value to the customers.

2.1 Company Locations and Facilities

DIY Wash N’ Fix intends to acquire an existing car wash facility with six bays. We expect to spend about $225,000 to buy a facility with enough land to expand the business. We will also construct an additional nine bays outfitted specifically for painting and repair. Construction will cost about $300,000, and the owners intend to contribute capital equal to 10% of initial investments. Approximately $53,200 worth of equipment will need to be purchased to properly equip our repair and painting facilities. Total initial assets will be $578,200.

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2.2 Start-up Summary

Operating Requirements and Associated Costs

The materials requirements for the car wash portion of the business will be minimal. Inventory for the car wash will also be kept to a minimum to reduce storage requirements. A supplier that will provide just-in-time supplies will be sought out. In addition, inventory requirements for the repair part will be kept to a minimum. We are not going into the retail auto parts industry. Referrals from local auto parts stores may be a primary method of introductory marketing, so competing directly with them is not our best option. Some items, such as motor oil, anti-freeze and air fresheners will be sold to encourage impulse buying. However, our strategy will focus on building rapport with other local automotive businesses. We will do this by referring our customers to them in order to buy the needed auto parts, and then they will return to DIY Wash N’ Fix to do the actual work.

The labor requirements for this firm will include several full-time employees and possibly some part-time employees to augment them during peak periods

Products and Services

The facility will be a standard coin-operated car wash with an attached building to house the other auto repair bays. The attached building will have nine bays with a customer service area and restroom/break area. Each bay will be designed for a specific type of repair work. There will be four types of bays:

• Frame Lift bay : These bays will have a lift designed to pick up a vehicle by the frame, allowing the wheels and suspension to hang free.

There will also be a customer service area where the customers will originally check in, and they are assigned the appropriate bay at this time. Later, customers check tools in and out as needed, and finally, they check out and pay. In addition, we will provide resources like Chilton’s Manuals and online pages that provide DIY instructions and advice.

During the check-in process, the customer will complete a form with general information including name, address, phone number, method of payment, type of repair/maintenance to be performed, and expected time of completion. This form will have a disclaimer relinquishing DIY Wash N’ Fix from any liability resulting in the customer’s inability to perform the repair, lost or stolen private property if the customer leaves their bay unattended, and other issues as suggested by private and insurance carrier legal counsel. DIY Wash N’ Fix does expect to be liable for broken or faulty tools that are rented by mistake, but will not be liable for injury resulting from the misuse of a tool.

The customer will be given ten identification tags that can be traded for tools. A customer must give up one tag for each tool he wishes to rent. This process will accomplish several things. It prevents any one customer from accumulating all the tools, which would limit other customers’ access. It also prevents a customer from accumulating a large number of tools and attempting to steal them, thus limiting our risk exposure to any one customer. This system also makes check out easier. If the customer returns less than ten tags at check out, it is immediately obvious that all the tools have not been turned in. As tools are passed out in exchange for tags, the customer’s check-in form will be marked to indicate the type of tools being utilized. The price to rent the tools will vary. The life expectancy and replacement costs for the tools will be taken into consideration when developing a pricing strategy.  If the method of payment chosen by the customer is credit card, then the number will be recorded prior to service, which will serve as further protection against stolen tools. If the customer wants to pay in cash, then the customer must either leave a credit card, drivers license or cash deposit before the ten tags are issued.

When a customer has completed his work, he will finish the check-out process prior to removing the car from the repair bay. The customer will return all of the identification tags, or the tools he received for the tags. Once the tool account has been reconciled, the completion time will be recorded and the receipt will be prepared. The receipt will provide an itemized list of costs to include: bay rental fee (based on time and type of bay), tool rental fee (based on the category of tools rented), miscellaneous charges (computer printouts of repair instructions or explosion charts), and taxes. After payment is made, the customer will be allowed to remove his car from the bay.

Government regulations that need to be rigorously adhered to are the safety standards of the hydraulic and other lift equipment, because this is a dangerous part of the automotive business. Additionally, the environmental regulations dictating the proper disposal of the drained auto fluids (oil, antifreeze, transmission fluid, etc.) will have to be posted and enforced. The drainage system will have to be appropriate for containing accidental spills.

Personnel Plan

The labor force for DIY Wash N’ Fix will be small. It will consist of a part-time general manager to handle inter-business relationships and corporate responsibilities. In addition, DIY Wash N’ Fix will employ three certified mechanics/managers; their duties will consist of the day-to-day operation of the firm. These duties fall into two categories: managerial and operational. Managerial tasks include: scheduling, inventory control and basic bookkeeping. Safety, regulatory issues, customer service and repair advice are the operational tasks they will be responsible for. Additionally, customer service clerks will be hired to perform the most basic tasks: customer service and custodial.

DIY Wash N’ Fix will have a single general manager to coordinate all outside business activities and partnerships. The business relationships would include accounting services, legal counsel, vendors and suppliers, maintenance providers, banking services, advertising and marketing services, and investment services. Laurie Snyder will fill this general management position. She will be receiving an MBA from the University of Notre Dame in May 2001.

Office Knowledge :

• Inventory Controls

Shop Knowledge :

• Environmental Concerns

Shop Skills :

• Organizational

In addition to the mechanic who will be on staff, there will also be a need for customer service clerks. The primary applicants for these positions will be low-skilled workers who have an interest in vehicles, but do not possess formal schooling as an auto mechanic. These workers will be responsible for behind the counter customer service and general custodial duties (to include the bays, restrooms, customer services area and outside parking areas). For liability purposes they will not be allowed to give advice on repairs. The general knowledge and skill set we will be looking for from the these employees is as follows:

• General Automotive / Equipment & Tool Usage

Service Business Analysis

The industry we participate in consists of quite a few sub-industries. The ones that pertain most towards DIY Wash N’ Fix are the Car Wash Industry, the Auto Parts Industry, and the Mechanical Repair Industry.

5.1 Mechanical Repair Competitors

These competitors are less direct than the previous ones because we differ in terms of services. There are different types of competitors:

• Independent repair stores : These are typically a small facility run by one owner. They face a declining market share in the favor of big chains and franchises, primarily because they cannot retain a skilled workforce. Commitment is their competitive advantage.

Therefore, the competitors we need to carefully watch are the big repair stores (chains, franchises, licenses) that offer many services thanks to a skilled workforce and heavy marketing expenses. They are able to retain customers and have the advantage of their brand recognition.

5.2 Auto Parts Industry

The after-market auto parts companies are retailers that sell directly to the end users and own stores throughout the U.S. Forty percent of all U.S. auto parts sales are made by the “Big Eight” auto part chains. The six largest retailers are: AutoZone, Advance, CSK, Pep Boys, Discount, O’Reilly, NAPA (National Auto Parts Association) and Carquest.

The following trends are prevalent within the industry:

• Aging U.S. vehicle population (average car age is 8.5 years).

AutoZone is the number one retailer in this market; last year they realized $3.8 billion in sales. Auto part chains are expecting sales to continue as more car owners buy parts to do repair and maintenance themselves. This is a positive indicator for the potential success of DIY Wash N’ Fix.

Mechanical Auto Repair Industry

The auto repair industry is composed of two categories: the collision repair industry and the mechanical repair industry. Considering our business, with our facility and tool constraints, we will focus on the mechanical repair market and not the collision repair market. However, we expect we will have some customers wanting to do minor collision repairs.

Like the automotive industry as a whole, the mechanical repair industry is currently experiencing major structural changes. These trends include:

• The growing importance of customer service and satisfaction.

5.3 Car Wash Industry

The car wash industry has entered the mature phase of its life cycle and is becoming increasingly competitive. The increasing competition is becoming apparent through the shift in three major industry trends. They are:

• Gas station chains : many are offering car washes either on a free or low-cost basis, investing in high technology equipment that requires little maintenance or labor.

5.3.1 Consequences of Trends

The consequences of these trends are:

• Car wash service is combined with other services.

The main threat within the industry is the water recycling regulations that some states impose. For instance, Maryland requires car wash businesses to recycle 80% of the used water.

The car wash industry is seen as a profitable industry, provided that owners can differentiate their firms, create a loyal customer base, and develop methods to attract new customers. Moreover, profits are greater when a car wash is combined with other car-related services that provide better overall value and helps retain customers. In order to succeed in the industry, businesses must provide:

• Relevant and quality other car services.

Sales Forecast forecast sales .">

DIY Wash N’ Fix has conservatively forecasted revenue to grow at 5% per year, from $888,120 initially to $979,152 in 2004. Net income is expected to grow at 6% per year, from our initial estimate of $168,906 to $190,313 in 2004. There is potential for more growth, because of the value-added nature of our business. For example, the same customers will likely use all our facilities: the car wash, auto painting, oil change and major repair bays.

Market Analysis Summary how to do a market analysis for your business plan.">

Target Market

This business aims mainly at people performing basic auto repairs on their own vehicles. In addition, we will target those people wishing to work on their vehicles but unable to do so, because of restrictions (apartment rules, etc.) or weAther conditions, or because they do not own the necessary equipment and tools to perform this activity.

The considered locations for the DIY Wash N’ Fix project are California, Texas and Florida.

Unique Market Niche

Our concept is a coin-operated car wash combined with do-it-yourself auto repair facilities equipped with professional tools. This a a one-stop place for washing and fixing your car by yourself, which will appeal to auto repair enthusiasts.

Business Identity

The brand name of this facility will be “DIY Wash N’ Fix,” which fully expresses the comprehensive set of services offered to do-it-yourself car owners. In terms of physical characteristics, facilities will be clean, bright and well lit. The various bays will be well organized. The objective is to create a place where people will feel comfortable working.

Competitors’ Prices

There are no comparable competition prices, as our services are different from any in the market, except, however for the coin-operated car wash which has an average price of $5.  For full-service oil changes, the price ranges from $25 to $30.

7.1 Marketing Strategy

Advertising & Promotion

We will utilize an existing car wash for expanding into DIY auto repair; communication will be developed to inform current customers of the coming opening of DIY Wash N’ Fix. Billboards will announce the project, and posters and flyers will be available on-site, as well as in local specialized stores (automotive) and department stores.

The marketing budget will be dedicated to actions with a local scope. Print advertising will focus on local newspapers and direct-mail marketing. Broadcast advertising will be used on local radio stations and television channels.

The Internet is an additional media channel. A company website can inform current and potential customers of the services being offered at the DIY Wash N’ Fix facilities. The website address will be communicated through all the previously mentioned communication tools to incite people to check its offers. Visitors to the website can get pricing information and locations nearest them.

Business relationships will have to be created with local businesses such as auto parts stores, so that they would give referrals to their own customers to use the DIY Wash N’ Fix facilities.

Marketing Budget

The marketing budget allocated to the launching of the DIY Wash N’ Fix business is 10% of the estimated sales, i.e. $88,812 for year one. This budget will be used with a local scope in the media. The break down is 10% for billboards, 20% for posters and flyers, 25% for local newspapers and magazines, 27.5% for local radio stations and television channels, 10% for direct marketing operations, 5% for setting up and maintaining a Web site, as well as 2.5% that could be used to nurture relationships or partnerships with local stores providing referrals to their customers.

7.2 Media Plan

Uses and costs of specific marketing tools for the first year:

7.2.1 Service and Warranty

DIY Wash N’ Fix will not give any warranty of the repair operations made by individuals. When checking in, the customer fills out a form with a disclaimer relinquishing DIY Wash N’ Fix from any liability resulting in the customer’s inability to perform the repair, as well as any lost or stolen property if the customer leaves the bay unattended. However, DIY Wash N’ Fix provides advice and information to its customers in terms of which tools to use, and repair guides are available for consultation.

7.3 Target Market Segment Strategy

Primary Target Markets

The broad target market for DIY Wash N’ Fix consists of individuals who are willing and able to perform minor repair and maintenance on automobiles. Specifically, we are targeting an individual who wants to work on his vehicle, yet does not have the proper tools or adequate workspace to do so. We believe there is a segment of the population that would like to perform their own maintenance, but do not for the following reasons:

• They do not have the right tools, such as torque wrenches, star-headed screwdrivers, extension socket wrenches, etc.

Certain auto parts require special tools to replace that specific part. These tools can be expensive and impractical for the average consumer to buy. Targeting individuals with physical space constraints is essential to our success. Our target market must have the desire to do this work but lack the area to do it in. For example, individuals living in apartment buildings cannot do maintenance on their vehicles in the apartment building parking lots. The number one reason individuals do DIY work is to save money. Therefore, we are targeting the lower income do-it-yourselfer who will find our services beneficial.

Secondary Target Markets

The secondary target market for DIY Wash N’ Fix is focused on individuals who wash their own vehicles. This is a broader market that includes our entire primary market. This individual bears the responsibility of maintaining their vehicle’s appearance. The cost savings and act of washing their own vehicle is more attractive to them than paying someone else to do it.

Demographics of Target Market

In a comprehensive survey consisting of 2,584 interviews with do-it-yourselfers, approximately 89% of the respondents were male. The breakdown of the respondents according to age was as follows:  

As previously mentioned, saving money is important to the do-it-yourselfer. Therefore, income is also important in identifying the target market.  The following is a list of the amount of DIY activity as a function of income:

Broken down by race, the number of Asians and Hispanics that are do-it-yourselfers was approximately 60%. Caucasians and African Americans registered at approximately 48%.

To determine geographic locations for this target market, the top locations for retail after-market auto parts were evaluated. According to the U.S. Department of Labor, the following states have the most auto parts stores:  California (5,030), Texas (3,280) and Florida (2,558).  Therefore, we are going to locate our facility in one of these states because of the high percentage of DIY sales.

Contingency Plan

The business model is viable for the foreseeable future. There is no readily available personal transportation substitute for cars and trucks and despite the improving engineering, there will always be a need for maintenance and repairs. There will also always be people that love their cars and will want to do their own work. Additionally, as cars become more complex, people will not want to buy the specialty tools required to do some of the work, but would be willing to rent them.

Also, as metropolitan areas grow, more people are living in apartments and condominiums, which restrict the repairs which can be done in the parking lots. This also will help support our business model, as people look for alternative space in which to work on their vehicles.

8.1 Growth Strategy

Given that the success of the firm is rooted in the demographics of the local market, expansion must be done very carefully. This business model will most likely grow through the opening of new facilities in new markets. Once the enterprise has reached its maximum geographical limit under the current management, a possible growth strategy will be to franchise the name and business process. The most probable target market for this expansion strategy would be current owners of coin-operated car washes.

In addition, our business model will provide a first-mover advantage. This is an easy business model to copy, but a first mover can establish a strong enough foothold into a given market so that it will continue to provide a solid cash flow even if competitors move in. Franchising will allow us to expand farther faster.

8.2 Succession Plan

This firm will be incorporated to protect the owners from personal liability. Succession will come at the discretion of the board.

Financial Plan investor-ready personnel plan .">

The financials of DIY Wash N’ Fix are built upon a number of conservative assumptions. The business is segmented into the original six car wash bays and three of each of the following bays: car painting, oil change/basic repair and other major repairs.

The balance sheet shows that most of our assets are long-term PP&E. Cash, the only short-term asset, is forecasted to grow at about 7% per year from $177,362 to $377,317. Initially, total assets are $755,562. Liabilities consist of the long-term loans taken on to pay for the PP&E, which amount to $520,380. This leaves us with $235,182 in initial owners equity.

The income statement reveals that revenues for each segment and the entire business are expected to grow at 5% per year, and net income is forecasted to grow at about 6% per year.

Expenses are approximately 57% of revenues. Expenses include wages, utilities, maintenance, marketing and capital expenditures. Wages are set at $7.00 per hour for clerks and $25.00 per hour for mechanics. There will be three clerks and three mechanics on staff full-time to ensure that a clerk and a mechanic are always available during business hours of 7:00 AM to 11:00 PM. Utilities are estimated to be 15% of revenues. Direct cost of sales (i.e., maintenance expenses) for all equipment, including the hydraulic lifts and painting equipment, are estimated to be 2.5% of revenues. Maintenance for the tools is 1% of revenues, and clean up for the car painting operation are 5% of revenues. Other building maintenance is estimated at 0.5% of revenues. The marketing budget is 10% of revenues. There is a capital expenditure of $1,500 per year to replace lost or broken tools. Depreciation is done on a straight-line basis. The time periods used are 15 years for all equipment and 30 years for the buildings.

DIY Wash N’ Fix has taken on long-term debt to finance its asset purchases of $578,200. The debt ranges in maturity from 15 to 30 years, and it is financed at 8%. There was an initial outlay of 10% of all the assets purchased for a down payment on the loans, totaling $57,820. Therefore, the amount financed is 90% of the asset value, or $520,380. This amounts to a monthly debt service of $4,128 or $49,245 annually.

• We will construct a new building on the land we purchased with nine new bays for our car painting and repair operations. Construction costs are estimated at $30,000 per bay, for a total of $270,000. For each of the three car painting bays, there will be an additional cost of $10,000 per bay for proper ventilation and environmental compliance. Therefore, our total construction costs are $300,000. We will put 10% down and finance $270,000 for 30 years at 8%.

Pricing and Revenues

DIY Wash N’ Fix will charge $5 per car wash in our coin-operated facility. We have assumed an average usage of seven hours per day, so this amounts to $35 per bay per day or $1,050 per month. We have six bays, so our annual direct car wash revenues are $75,600. In addition to the basic car wash, we have assumed that the facility we purchased will include six vacuums, two vending machines and one fragrance machine for customers to use for a nominal fee. These amount to additional annual revenues of $18,720. Car wash revenues are estimated to increase 5% per year, due to the value-added services we provide on location at DIY Wash N’ Fix.

We have three bays with a small 6,000-pound capacity lift to perform oil changes and basic repair work. We will charge $15 per hour for use of these bays, in order to be competitive with our competition in quick oil changes. Estimated usage is seven hours per day. These lifts cost $2,100 each, for a total of $6,300. We’re financing $5,670 for 15 years at 8%.

We have three additional bays equipped with 12,000-pound capacity heavy-duty lifts for complicated repair work. The cost to use these bays is $30 per hour, with an additional tools cost of $10 per hour to access up to ten tools at a time. Estimated usage is seven hours per day. The tools purchases, amounting to $25,000 initially, are included in this segment, because this is where we expect the major tool usage. The large lifts cost $5,800 each, for a total of $17,400 in lift costs. Total financing for the lifts and the tools is $38,160.

Finally, there are three bays equipped to paint cars and the fee is $50 per hour. It is probable that one paint job will take most of the seven hours estimated usage, including drying time unexposed to the elements. The fee for painting is higher, because the bays are more expensive to build and maintain. Equipment, including compressors and paint guns, will cost $4,500, and we will finance $4,050.

9.1 Important Assumptions

The key assumption within this business model is: there is a portion of the population that would like to do basic repairs and/or maintenance on their vehicles, but they don’t because they lack necessary tools or a proper work space. Therefore, they will be willing to pay rental fees to have access to tools and a work space.

Given that the assumption is true, then the key element of success for the venture will be pricing. The customers must feel there is value for the rent they are paying. If the price is too high, the substitution for our service will be taking a vehicle to a full service mechanic. However, if the price is too low, the firm will not be able to recover the cost of the initial capital expenditures.

If the assumption is not true and the firm cannot attract enough customers, then several exit strategies are available:

• Sell all property and exit industry.

9.2 Break-even Analysis

The chart and table below show the Break-even Analysis for the company.

9.3 Projected Profit and Loss

The table below shows the profit and loss statement for the company.

9.4 Projected Cash Flow

As can be seen in the following chart and table, the company expects a steady increase in cash flow within the first twelve months of operation, continuing through the first three years of plan implementation.

9.5 Projected Balance Sheet

The table below shows the projected Balance Sheet for the company.

9.6 Business Ratios

The following table contains important ratios from the automotive services industry, as determined by the Standard Industry Classification (SIC) Index code 7542.

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How to Write a Car Wash Business Plan [Sample Template]

By: Author Tony Martins Ajaero

If you drive through the streets in metropolitan cities of South Africa, you will notice several car wash centers in strategic locations. These goes to show that car wash business is a thriving business in South Africa. One good thing about car wash business is that it can be started by anybody as long as they have eyes for details and some business skills. If you have experience in this regard, it will be easier for you to start and effectively run a car wash business in any city in South Africa.

Please note that most standard car wash centers in South Africa usually run complimentary services in other to maximize profits from the business and if you want to operate a standard car wash business, then you should also think of other complimentary services to run alongside your business.

If you are convinced that starting a car wash is the right business for you to do, then you need to write your own business plan. The essence of writing a business plan before starting any business is for you to have a road-map of how you would setup, manage and expand your business. Below is a sample car wash business plan template that will help you write yours with little or no stress.

A Sample Car Wash Business Plan Template South Africa

1. industry overview.

In South Africa and even all over the world, the car wash industry is regarded as one of the industries that accommodate more unskilled workers than skilled workers because some of the services offered by car wash companies revolve around cleaning, washing and waxing services for automobiles.

In the car wash industry, you will also find customized services such as full and self-service car wash services, as well as truck and bus washes and vehicle detailing services. The industry is open to both small entrepreneurs (neighborhood car wash) and big time investors.

In the last four years, the car wash franchising sector in South Africa has displayed resilience, consistently growing its contribution to the country’s GDP from 9.7 percent in 2014 to its present contribution of 13.3 percent, according to the Franchise Association of South Africa (FASA).

One rapidly increasing franchise is that of car wash services, which are increasingly dotted on the country’s landscape, dovetailing the rise in shopping centers, catering for motorists who live in complexes with strict corporate policies.

The cars wash industry in South Africa has a positive growth potential considering the increasing number of motor vehicles in the country. In South Africa, cars are a status symbol for some people.

All around the globe and in South Africa, advancements in technology are simplifying car wash operations making car wash businesses convenient, reliable, fast and also improved payment methods such as credit and debit cards make payments easy for customers.

As a matter of fact, car owners who patronize car washes are becoming more environmentally conscious, hence the need for more environmentally friendly car wash technology. Water conservation is becoming a concern for the population, so environmentally-responsible car washes are an attractive option.

The market for car wash is driven by the purchase of cars and the increase in consumer spending – in essence, as the general economy of a country grows, more people will buy cars and more people will patronize the services of car wash on a regular basis especially if their driving habits encourages them to do so.

The trend in the car wash industry is that most car wash companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings. Some car wash companies include washing of rugs, selling of car accessories, running a bar, barbing saloon and even restaurant within the same premises if they have enough space.

It is much easier for car wash companies to increase their revenues by diversifying as against increasing the scope of their market. Car wash businesses in South Africa and all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

Thomas Ulundi® Car Wash, LLC is a standard car wash company that will be located in the heart of Pretoria – Gauteng Province, South Africa. We are strategically positioned in one of the cities with a large number of car owners and we are set to service the whole of the community as well as visitors and travelers.

Thomas Ulundi® Car Wash, LLC will be providing our esteemed customers with three basic services which are exterior car washing, interior cleaning, and waxing services. Although our intention of starting a car wash business in Pretoria is to offer only the above stated services, but we will not close our doors to diversification as long as it does not affect our core services.

In a bid to maximize our position as the number one car wash company in Pretoria, we will offer our esteem customers the opportunity to buy quality car care products in our reception area.

Our car wash company is located in a full-service car wash facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; and 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines.

At Thomas Ulundi® Car Wash, LLC, we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity, which is why we have decided to start our own carwash business. We are quite optimistic that our values and quality service offering will help us drive our car wash business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality car wash services and that is exactly what we will do. We are open to the use of latest technology in the car wash industry. Our excellent customer service and the range of services we offer will position us to always welcome repeated customers.

Thomas Ulundi® Car Wash, LLC is owned by Thomas Ulundi and his immediate family members. Thomas Ulundi is a businessman par excellence and he has the required business acumen to build Thomas Ulundi® Car Wash, LLC to favorably compete with leading car wash companies in Pretoria.

3. Our Products and Services

Thomas Ulundi® Car Wash, LLC is a carwash company that offers a wide range of services that revolves around washing cars. We intend giving our customers reason to always come back which is why we have customized our services.

Our customers will definitely maximize their time when they visit our car wash. These are the services and amenities that will be made available to our customers;

• Exterior car washing
• Interior cleaning
• Waxing services
• Vehicle detailing
• Sale of automobile accessories
• Home service
• Washing of rugs
• Cigar Lounge
• Barbing saloon

4. Our Mission and Vision Statement

• Our Vision is to become the ‘go to car wash’ center in the whole of Pretoria – Gauteng Province and every location where we intend opening our car wash.
• Our mission is to develop a highly successful car wash business which provides quality services in our community and to become a standard for car wash businesses in South Africa.

Our Business Structure

Car wash business is generally seen as a small scale venture, but that does not stop Thomas Ulundi® Car Wash from putting structures in place that will help us achieve all our business goals and objectives.

As a matter of fact, we will build a car wash business that will be a standard for the car wash industry in South Africa. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

We aware that it takes a business with the right employees and structure to achieve all we are set to achieve, which is why we will be putting structures in place that will help us deliver excellent services. The success of our car wash business will be anchored on the team not on any individual.

With the wide range of our service offerings and the plan to sell franchise, we are only expected to employ more than is required to run a conventional car wash business. Thomas Ulundi® Car Wash, LLC will employ professionals and skilled people to occupy the following positions;

Manager (Owner)

Accountant/Cashier

• Marketing Officer
• Washer men/women (5)

Bar Manager

5. Job Roles and Responsibilities

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Answerable for fixing prices and signing business deals and payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities in the organization
• Ensures that the office facility is in tip top shape and conducive enough to welcome customers
• Makes budget for the organization
• Defines job positions for recruitment
• Carries out induction of new team members
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.

Marketing and Sales Executive

• Identify, prioritize, and reach out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the organization in strategic meetings
• Helps to increase sales and growth for the organization.
• Collects payment for car wash, drinks served and balance all receipts.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization.
• Interacts with customers, take orders for drinks, food and snacks
• Check identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
• Mixes ingredients to prepare cocktails and other drinks.
• Prepares alcohol or non-alcohol beverages.
• Arranges bottles and glasses to make attractive displays .
• Assesses customers’ needs and preferences and make recommendations
• Makes lists of supplies in conjunction with the management
• Manages the barbing saloon
• Handles any other duty as assigned by the manager

Washer men/women/cleaners 

• Washes cars (exterior car washing, interior cleaning, and waxing services), trucks and bikes et al
• Cleans up after customers
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock

6. SWOT Analysis

A car wash business can easily generate sales with little stress as long as it is well positioned. We are building a standard car wash business with variety of services which is why we have decided to subject our business idea to SWOT analysis.

Ordinarily, we can successfully run a car wash business without writing a detailed business plan, but because of the kind of car wash business we want to establish, we don’t have any option other than to follow due process. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

We hired the services of a business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Thomas Ulundi® Car Wash, LLC;

Thomas Ulundi® Car Wash, LLC is centrally located in a densely populated area in Pretoria; our location is in fact one of our major strengths. We are also a car wash company that offers variety of services. For instance, if a client visits our cash wash to wash his car, he has the options of barbing his hair within our facility, he also has the option of patronizing our bar and our mini mart where he can buy car accessories et al.

Thomas Ulundi® Car Wash, LLC is a new business which is own by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. So also, we might not have the support structure that is made available to established car wash franchise operators.

• Opportunities:

We are centrally located in one of the busiest areas in Pretoria with loads of car owners and we are open to all the available opportunities that the city has to offer. The truth is that there are no car wash facilities within the area where our car wash is going to be located; the closest car wash to our proposed location is about 6 miles away. So we do not have any direct competition within our target market area.

Some of the threats that are likely going to confront Thomas Ulundi® Car Wash, LLC is unfavorable government policies , seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumer spending and of course emergence of new competitors within the same location where our car wash is located.

7. MARKET ANALYSIS

• Market Trends

The car wash market is dependent on loads of factors; at least for people to patronize car wash, they must first of all own a car. From recent statistics of car purchase in our target market, it is obvious that there is steady increase which indeed is a positive for the car-wash market.

Car wash business responds to the increase in household spending and also increase in the volume of cars in a particular area. The trend of the market can be predicted without stress.

Another obvious trend in the car wash industry is that most car wash companies include additional services to their core service offerings. Some car wash companies include washing of rugs, selling of car accessories, running a bar, barbing saloon and even restaurant within the same premises if they have enough space. It is much easier for car wash companies to increase their revenue by diversifying as against increasing the scope of their market.

8. Our Target Market

Before choosing a location for our car wash business , we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Those who will benefit from our service offering are car owners and they cut across different sectors of the economy.

These are the category of people that we intend marketing our services to;

• Corporate Executives
• Business People
• Car Dealerships
• Transport Companies

Our Competitive Advantage

The fact that car wash business is an easy to set up business that does not require formal training means that anybody can set up a car wash business if they have the required capital. It means that the possibility of a car wash business springing up in the location where our car wash is located is high. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Pretoria – Gauteng Province.

Our competitive edge is that we are a standard car wash business that has loads of complimentary business offerings that can easily attract car owners within the radius of our car wash business. For the time being, Thomas Ulundi® Car Wash, LLC has no real competitors that can match the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Thomas Ulundi® Car Wash, LLC. is established with the aim of maximizing profits in the car wash industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis. Thomas Ulundi® Car Wash, LLC will generate income from the following service offerings;

10. Sales Forecast

Our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available in the field. We expect to wash 70,000 cars in the full-service operation and 30,000 cars in the self-service operation during our first year of operation.

We have been able to critically examine the car wash services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in South Africa .

• First Fiscal Year: R240,000
• Second Fiscal Year: R480,000
• Third Fiscal Year: R850,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Thomas Ulundi® Car Wash, LLC is going to be driven by excellent customers’ service and quality service delivery. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car wash.

Our unique selling proposition is that we have various complementary services such as barbing saloon, bar, cigar lounge and sale of car accessories which will endear our customers to us. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them;

• Open our car wash business with a party so as to attract residents who are our first target market.
• Introduce our car wash business by sending introductory letters alongside our brochure to corporate organizations, households, car dealership shops, transport companies, haulage companies and key stake holders in and around Pretoria – Gauteng Province.
• Advertise our car wash business on community newsletters, local TV and radio station
• Promote our business online via our official website and all available social media platforms
• Deliver consistent customer experience to all our clients; making our first impression count positively
• Make use of attractive hand bills to create awareness and also to give direction to our car wash
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places
• Create a loyalty plan that will enable us reward our regular customers
• Enter into business partnership with car dealership shops, transport companies and haulage companies

11. Publicity and Advertising Strategy

Thomas Ulundi® Car Wash, LLC is set to create a standard car wash services company in Pretoria – Gauteng Province which is why we will go all the way to adopt and apply best practices to promote our business. Good enough, there is no hard and fast rule on how to advertise a car wash business, so we will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our business.

Here are the platforms we intend leveraging on to promote and advertise Thomas Ulundi® Car Wash, LLC;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement
• Advertise our car wash services in relevant magazines, local newspaper, local TV and radio stations
• Promote our business online via our official website
• List our business in local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install billboards in strategic locations all across Pretoria
• Direct coupon mailing approach
• Distribute our fliers and handbills in target areas
• Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and branded.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering in Pretoria – Gauteng Province. The prices of our car wash services and other services we offer will be same as what is obtainable in the open market.

• Payment Options

The payment policy adopted by Thomas Ulundi® Car Wash, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of South Africa.

Here are the payment options that Thomas Ulundi® Car Wash, LLC will make available to her clients;

• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard car wash company; it might differ in other countries due to the value of their money. We have been able to pull cash that will be enough for us to successfully launch a standard car wash company in Pretoria – Gauteng Province. These are the key areas where we will spend our startup capital on;

• The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – R3,300.
• Marketing promotion expenses for the grand opening of Thomas Ulundi® Car Wash, LLC the amount of R3,000 and as well as flyer printing (2,000 flyers at R0.04 per copy) for the total amount of R3,580.
• The cost for hiring business consultant – R2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R2,400.
• The cost for payment of rent for 12 months at R1.76 per square feet warehouse facility in the total amount of R100,000
• The total cost for car wash facility remodeling (2 – 3 x Wash bays (72 m2 steel structure), 8-10 Drying Bays (Shade cloth), store room, staff change room and toilets, as well as a grease trap and office.) – R20,000.
• Other start-up expenses including phone and utility deposits ( R2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R60,000
• The cost for start-up inventory – R100,000
• The cost for store equipment (cash register, security, ventilation, signage) – R13,750
• The cost of purchase and installation of CCTVs – R5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Dedicated customer care line, TVs, Sound System, tables and chairs et al) – R4,000.
• The cost for the purchase of van (for home services) – R25,000
• The cost of launching a website –  R600
• The cost for our opening party –  R7,000
• Miscellaneous –  R10,000

We would need an estimate of three hundred and fifty thousand Rand (R350,000) to successfully set up our car wash in Pretoria – Gauteng Province South Africa.

Generating Startup Capital for Thomas Ulundi® Car Wash, LLC

Thomas Ulundi® Car Wash, LLC is a family business that is solely owned and financed by Thomas Ulundi and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about R100,000 ( Personal savings R80,000 and soft loan from family members R20,000 ) and we are at the final stages of obtaining a loan facility of R150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Thomas Ulundi® Car Wash, LLC is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Thomas Ulundi® Car Wash, LLC adopted the use of payment machines and accounting software to run the business.

We are quite aware that our customers are a key component of our business; hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services once the need arises.

Thomas Ulundi® Car Wash, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of  tools and equipment: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Establishing business relationship with car dealership shops, transport and logistics companies, haulage companies and other key stakeholders within and outside of Pretoria – Gauteng Province: In Progress

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• Business Plans Handbook
• Business Plans - Volume 07
• Specialty Car Wash Business Plan

Specialty Car Wash

BUSINESS PLAN     A.B.C., INC.

1004 East Towne Square Madison, Wisconsin 53705

The purpose of A.B.C., Inc. is to provide the area with a unique facility that combines both a full service car wash with a quality restaurant. People will be able to get their cars cleaned and/or detailed while they have a pleasant, quality meal. This plan was provided by Ameriwest Business Consultants, Inc.

EXECUTIVE SUMMARY

Objectives & goals, and strategies for achieving them, business description, status, & outlook, management & ownership.

• THE SERVICE (AN UNFILLED NEED)

UNIQUENESS OF THE SERVICE

Market analysis, marketing strategies, financial plans, conclusions & summary, business description.

Americans began a love affair with their cars as soon as the first one rolled off the assembly line. An integral part of this affair is keeping the family automobile clean and looking good. It didn't take long for "car laundries" to develop to make it easier to keep our cars looking great. Since these early car washes, we have seen a variety of different types of car washes develop around the country. We have seen automated, coin-operated, and brushless car washes come and go. We have seen car wash boutiques that combine one or more other businesses with the convenience of a car wash.

The purpose of A.B.C., Inc. is to provide the area with a unique facility that combines both a full service car wash with a quality restaurant. People will be able to get their cars cleaned and/or detailed while they have a pleasant, quality meal. This type of operation is unique to southern Wisconsin. The atmosphere will be friendly and open. The business will display a new attitude. It will treat customers like first-class citizens and try to make them feel like they are at home. We will also offer a variety of gift-related items. The services will be offered at a competitive price and pricing will be reviewed periodically.

The operating hours will be Monday through Sunday from 7:00 A.M. through 7:00 P.M. We will review our hours periodically and extend them to meet demand, when necessary.

CURRENT POSITION AND FUTURE OUTLOOK

The business is in a start-up mode. It is a Wisconsin for profit "C" corporation. Operations will be conducted in a 10,000-square-foot building located on a 5-acre site on East Towne Square, which is just a half-block south of Plymouth Road. It is approximately one half mile west of I-90. We estimate we will serve 80,000 restaurant and gift shop customers and 98,550 car wash customers the first year. This is a conservative estimate and our projections do reflect the seasonal nature of each. More customers of the car wash will be served during months with bad weather and more customers in the restaurant and gift shop will be served during the summer. To attain these goals we will use a combination of media advertising, flyers, and word-of-mouth. The customers are there, the experience and ability are there and, with a proper funding, we are convinced the profit will be there.

MANAGEMENT AND OWNERSHIP

The company is set up as a corporation with David Odle and his wife, Sally, owning 100% of all outstanding stock. David will serve as president. Sally Odle will serve as vice president and manager of the restaurant. Kirt Lansing will serve as secretary, treasurer, and manager of the car wash. David will be involved in sales, public relations, advertising, planning, and equipment purchases, and will provide the function as general contractor for the project. Sally will oversee the restaurant operation and will be involved in sales, public relations, advertising, planning, insurance, purchasing, labor, and equipment purchases. Kirt Lansing will manage the day-to-day operations of the car wash and will be involved in sales, public relations, advertising, office management, personnel, operations, planning, purchasing, labor and equipment purchases, and maintenance. The business will employ additional employees who will be involved in cooking and waiting on tables in the restaurant, and as laborers on the car wash line and for additional support. They will be a combination of part-time and full-time. When volume picks up, additional part-time or full-time employees will be hired, as the workload requires. Ameriwest Business Consultants, Inc. will provide help in additional areas such as planning and general business advising when necessary and to supplement the Odles' overall business knowledge. The services of an accountant, attorney, and a qualified insurance agent will be retained.

UNIQUENESS AND DIFFERENTIATION OF THE SERVICE

A.B.C., Inc. will be unique in this part of Wisconsin. The combination of a car wash and a full-service restaurant will provide the ultimate in service to our customers. We will appeal to a wide spectrum of clientele. Nowhere else in southern Wisconsin does an operation combine the services of a car wash and detailing center along with those of a full-service restaurant.

The idea of combining a car wash and restaurant is to provide customers with an informal, social setting and atmosphere and to couple that with a level of convenience that cannot be found elsewhere. It also will prolong their stay by providing food or limited drink while their cars are being cleaned and detailed. In addition, on a limited basis, we may cater to private parties and special groups in the restaurant throughout the year, especially after normal closing hours.

The growth potential is virtually unlimited for the greater Madison area. The population is growing at an accelerated rate. It is rare in today's business world to find a true market void. That is exactly what A.B.C., Inc. has done. Our facility will have little true competition in southern Madison.

FUNDS REQUIRED AND USAGE

To finalize the project, A.B.C. will need to obtain new funding of approximately $1,400,000. This coupled with the $295,000 investment by the owners will provide the funding to acquire the land, build the improvements, purchase the machinery and equipment, and provide furnishings for the restaurant and initial inventory, supplies, and working capital for the restaurant, gift shop, and car wash.

Projected Five-Year Income Statement

• The most likely case assumes 90,000 customers the first year for the restaurant and gift shop and 105,550 customers for the car wash. The optimistic case assumes revenues and expenses will increase 15% over the most likely case. The pessimistic case assumes revenues and expenses will decrease 15% below the most likely case above.
• Cost of goods sold for the car wash will equal 6.44% of sales, 40% for the restaurant, and 53.33% for the gift shop.
• To provide a high quality, full-service car wash which will include complete car detailing, restaurant, and gift shop so that customers will perceive great value and give them the opportunity to have an enjoyable meal while their car is being washed or detailed.
• Service an average of 80,000 customers in 1999 for the restaurant and gift shop and 98,550 customers the first year for the car wash. We have projected a conservative increase of 5%, 6%, 7%, and 8% for years 2-5.
• To repay the entire loan amount by the end of the fifteenth year and to provide the shareholders with an exceptionally stable income.
• Our goal is to become the premier car wash destination in Madison during the next two years.
• A.B.C., Inc. plans to closely monitor changing technology to be certain that the company is using the latest and most cost effective equipment and that it keeps up with current trends in the marketplace.

When growth has stabilized we plan to add extra services for customer convenience such as delivery, Internet order taking, greater selection of products (especially seasonal), and continued growth of the food operations. In addition to the above goals we will survey our customers and make changes in our programs and add services to meet their changing ideas in the marketplace.

To obtain the first two sets of goals we will try to maximize sales with an extensive campaign to promote our service. We will utilize the radio stations and newspapers along with brochures, media advertising, pamphlets, use of coupons, referrals, and a variety of other advertising and marketing tools to reach the customer base of southern Madison. We expect to flood the market with advertising until consumers become aware of us and more comfortable with our company. As we grow, word-of-mouth referrals will bring in increasing numbers of customers and we will reduce our reliance on advertising.

The dominant driving force behind our company will be profit and income and to provide the best possible related products and service.

To become the premier car wash and detailing center in southern Madison, we will offer outstanding quality, good hours, exceptional service, and reasonable pricing. We will listen to our customers and conduct surveys.

Both cars and car washes have come a long way since the days of cranks and pails and sponges. The first car wash was opened in Detroit in 1914 when two young fellows opened the world's first car wash: the Automated Laundry. It was basically a pail and sponge type of operation. These early "Automobile Laundries" have evolved into sophisticated operations today.

Back in 1914 the cars had to be left all day, since they were pushed through the system manually, and even brass parts were removed for polishing by hand. Twenty-five years later, the first crude "automatic" conveyor car wash was opened in Hollywood, California. On busy days, as many as forty men splashed in the tunnel, soaping, scrubbing, wiping, and drying cars as they were pulled through.

Today, there are over 20,000 automatic car washes, many of which can completely wash and dry a car in less than thirty seconds, without it being touched by human hands. Some car washes handle 20,000 cars per month and net over $200,000 a year before income taxes. Net profits of $50,000 to $75,000 are common.

What happens when it rains? That seems to be the first question that prospective car wash owners ask. If your part of the country has 250 rain free days a year, you're in a good position to do business. Madison has 310 days of sunshine a year. We get just enough rain and snow to make it necessary to frequently wash the car. And remember that night or morning rains don't necessarily hurt business. In fact, the day after a heavy rain, business is usually better than normal in car washes because autos get muddy and sloppy driving around.

Car washes in northern climates do much more business during the winter because car owners are concerned with keeping their cars free of the corrosive road salts used for melting snow and ice.

One thing is certain: car washes are more popular than ever. Like so many other household chores, washing the car is becoming just too much work for busy professionals. Given a choice between spending a Saturday afternoon relaxing or being up to their armpits in soap, most working people will opt for a day of rest. And that spells good news for the car wash industry— both currently and for the future.

A successful car wash business is dependent on 3 factors:

• vehicle flow
• producing a good wash

Our goal is to not have one dissatisfied customer leave our business. With this business we will have to sell and resell our services over and over again. The National Restaurant Association estimates that satisfied customers tell an average of .7 (seven-tenths) other people they have had a positive experience. Unhappy customers tell 7 to 11 other people of their bad experience.

Ongoing decisions in car wash management include: maintenance of equipment, financial management, control of waste, personnel management, front man and managers, wash line crew, cashier, training programs, and establishing rules (hours of work, appearance, penalties, etc.). All of these areas will all be supervised by Kirt Lansing who has had experience in car washes and in other management situations.

Ongoing decision-making in the restaurant will include design of the menu, set-up, layout, server stations, dishwashing, furnishings, cashier station, rest rooms, traffic flow of employees, order taking procedures, error handling, supplies, inventory control, staffing, training, and cleanup. Sally Odle has previously owned and successfully run two restaurants and has the experience to supervise this operation.

We are selling cleanliness. We also realize that first impressions are of utmost importance and will always put our best foot forward.

There are nearly 500,000 restaurant units in the United States. However, there are very few that have been combined with full service car washes. The match seems perfect. People need their cars cleaned and they also need to eat. In today's busy world, it seems only natural to combine the two into one operation.

To maintain operations, the business will require sales tax licenses, health department permits, liquor license, and occupational use license.

The future holds the promise for almost unlimited growth and income as the business matures and considers other markets and products. Complementary products such as fleet service, additional seasonal products, and other functions at the restaurant also will be considered in the future in response to customer surveys indicating customer's wants and needs. Enhanced food services will be offered in the future as the needs are demonstrated. Future plans include additional locations and perhaps some limited franchising of this new concept.

David Odle graduated from Dane County Community College in 1970 with an Associate Degree in Food Service. He also received a Certificate in Business from the Mid-Central Business College. David served as a police officer for the city of Madison from 1960-1990. From 1981 to present, David founded Blue Mound Builders, which specializes in home construction. David also is licensed for commercial construction and is clearly competent to serve as general contractor for the proposed project. His 18 years' experience as a successful builder and business owner has demonstrated David's supervision and leadership skills.

Sally Odle has owned and managed several business operations. Between 1978-1980 she started and managed a pig litter operation. From 1980-1984 she owned and managed two restaurants named Black Feet and Fancy Food in Mauston. She designed and managed these restaurants. She was involved with menu design and built both into popular restaurants that earned reputations for high quality and affordable pricing. From 1986 to 1988 she owned her own real estate business, the Elite Real Estate Group, which has now merged with Monmouth and Associates. Sally's 30 years' experience in all areas of responsibility obviously makes her highly qualified to start and manage the proposed restaurant. Sally has strong leadership and people skills and has developed strong creative instincts, which she has often transformed into successful operations.

A.B.C., Inc. will supplement its employees' skills by using outside consultants in areas such as legal work, income tax preparation, insurance, and general business advising. The business was set up as a corporation primarily for liability reasons and makes it easier to secure investors. To continue operation, a mix of full-and part-time employees will be utilized to help in areas such as cooking, waiting on tables, and for labor. As the business grows, additional part-time or full-time employees may be added to handle the increased workload.

THE SERVICE—AN UNFILLED NEED

Wisconsin growth in families is the ninth greatest in the country. The past decade has seen this segment of the population grow by more than thirty percent. It is growing five and a half times as fast as the general population. This trend will also help our proposed venture.

The few existing car washes and restaurants that cater to our clientele are not nearly as convenient or service oriented as our operation. Nowhere else are these two types of operations combined on one site. Competitors seem to pay little attention to detail and seeing that the customer is satisfied. A.B.C., Inc. and its ownership will embrace the concept of trying to become a focal point for our clientele and never having a dissatisfied customer leave our property.

The timing for such a business is perfect. A significant window of opportunity exists for A.B.C., Inc. to take advantage of the huge growth of the area and start this kind of business. This business will be providing the "Right Service at the Right Time to the right clientele."

It is rare in today's world that a true market void exists. Our service will meet the "unfilled need" described above by providing customers with competitively priced, high service car wash and detailing facility combined with the services of a full-service restaurant on the premises. We will be unique to Madison area and indeed all of Wisconsin.

Customers will be attracted because of our atmosphere, pricing, and facilities. They will be made to feel welcome and as part of the family.

Some major advantages A.B.C., Inc. will have over potential competition and conventional car washes are:

• Larger and newer facility
• Lower operating expenses than most
• Full service restaurant on site (new concept)
• Location, location, location
• We will offer carryout
• We will offer limited liquor (beer and wine)

MARKET OVERVIEW, SIZE, AND SEGMENTS

The market area we will concentrate on is central, northern, and western Madison. This area has been growing rapidly for the past several years and should continue for the foreseeable future. According to Inc. Magazine , Madison is ranked eleventh in the nation for start-up businesses. This means that the economic climate is extremely favorable for virtually any type of new business. In 1998, Madison recorded 5,414 start-up companies to its 400,000 population or 1.36 per 100 citizens. With Madison's exploding growth in population that has occurred during the last decade, local car wash sales should continue to be well in excess of national averages. Once the concept catches on locally, we feel the potential is unlimited. As we grow we will have the financial capacity to carry on an advertising campaign on a regional basis.

The economy is in the midst of a particularly strong growth period. Many new jobs are being added to the local community. Within a five-mile radius of A.B.C., Inc., 12,000 new homes are projected within the next few years. All of these factors are cause for a much greater need in car washes in the area. All of this activity can only help our attempts to begin this car wash.

Listed below are just some of the reasons that the Madison area is growing and why it is a good time to be running any kind of business that caters to this growth:

• The local economy is booming and virtually busting at the seams.
• More than 65 nationally based insurance companies are headquartered here. The largest is Allstate. It has over 1,200 employees) and an operating budget of over $85 million.
• Madison has a new airport that should grow and attract even more new businesses.
• The new Milwaukee Airport is open and provides an economic boost to the entire state, including Madison.
• Gambling in nearby Baraboo continues to draw many visitors and some new businesses.
• Every week, we see articles in the newspapers of Michigan residents and companies relocating here.
• The world-renowned Four Seasons Hotel has completed an extensive remodeling.
• MCI and Quantum Electronics are undergoing large increases in their operations here that should add many hundreds of employees.
• Milwaukee is only 50 minutes away and is another good market for businesses in the area.
• Many experts predict Madison to become the second fastest growing city in the state between now and the year 2007.
• Dane County is predicted to become the largest county in the state by the year 2003.
• The local economy is now more diversified than it was when troubles occurred in the local economy in the late 1980s and early 1990s.

The estimated population of Dane County in 1999 is 500,000 people. The number of households are approaching 200,000. Currently, this market is growing at an annual rate of 3-5%. Projections see this trend continuing for the balance of this decade.

From the above figures it can readily be seen that the potential market for our services is huge. We feel with our pricing and value we will become a price and industry leader within two years.

CUSTOMER PROFILE

Our surveys have shown the following potential mix of patrons for our facilities:

• We will cater to both blue collar and white collar people
• Income of typical customers is in the $20,000 and up range
• Large numbers of young professionals
• Wide range of age of clientele is 18-80
• Large numbers of electronics workers in the various plants within a five-minute drive

Beyond the local market we could eventually tap into a more regional market. The advantage of our service is that it could appeal to all segments of the community. By expanding the role of the restaurant, we can continue to become an even greater focal point for the local community.

Competition Analysis

The marketplace is currently shared by 3 major car washes. Most of the existing facilities have one or more significant waeknesses and are not really in the same market as us. They cannot be considered competitors, especially when you add our restaurant into the mix.

Risk Analysis

Identification of Strengths & Weaknesses

We feel we will have strengths in product features, management, operations, quality of service, product mix, company policies, reliability, desirability, highly trained sales force, pricing, location, and facilities.

We will have low risk exposure in the areas of industry maturity, market, dependence upon other companies, vulnerability to substitutes, technology, inflation/interest rates, regulatory environment, management ability, location, facilities, and suppliers.

We perceive medium risk exposure in competitive position (we are new) suppliers, finance, and planning. We have retained the services of specialists to help in various areas such as marketing, accounting, legal, and general overall business operation advice.

We do not feel we have any high-risk exposure situations or major inherent weaknesses.

PRICING AND VALUE

Our intention is to raise the public's awareness of our company. We plan to review our prices and those of our competitors every six months. We will review direct material costs, direct labor costs, and total overhead expenses. We will continually monitor the cost of providing our service to each customer. We will offer various free or reduced rate programs to get customers acquainted with us.

Numerous package deals may be offered to customers. Examples of various marketing strategies we may try include the following:

• Discounts for larger or repeat purchases
• Special party rates for the restaurant
• Ladies day (brings in women and reduces weekend congestion in the car wash—may give ladies a plant, hosiery, household item, etc.)
• Free car wash on your birthday
• Free car wash with a certain mileage on your auto as announced over the radio
• Free meal after so many car washes
• Free car wash after so many meals at the restaurant
• Fleet discounts to larger customers such as automobile dealers
• Special detailing and wash packages

SELLING TACTICS

Our company's marketing strategy will incorporate plans to promote our line of services through several different channels and on different levels of use. We will advertise heavily on the popular local radio stations and newspapers.

We will flood the market with advertising and try to go after our specific targets. We will try to capture their attention, pique their interest, and make them feel that they must have our services.

We will offer continuous promotional rates. The results sell themselves. We will offer discounts to frequent users. The more a customer uses our services the cheaper it will become for them.

We will also be a MasterCard and Visa charge card merchant which enables us to more readily service our customers.

In order to sell our facility we shall consider a variety of promotions including:

• Reserve certain hours or sections of the restaurant for unique groups such as children's birthday parties, senior citizens, service clubs, adults, etc.
• Conduct special theme nights, use ethnic holidays, family night, charity promotion night, classes, etc.
• Cultivate local churches and women's organizations for the restaurant.
• Promote private parties using entire facility, especially after normal closing hours.
• Early bird specials.

ADVERTISING, PROMOTION, AND DISTRIBUTION OF SERVICES

We recognize that the key to success at this time requires extensive promotion. Advertising goals include all of the following:

• Position the company as the premier car wash in Madison
• Increase public awareness of A.B.C. and its benefits
• Increase public awareness of our company and establish a professional image
• Maximize efficiency by continually monitoring media effectiveness
• Consider a possible credit coupon in some of the advertisements
• Develop a brochure or pamphlet to explain our service and company
• Continue use of a distinctive business card and company letterhead
• Use a mix of media to saturate the marketplace

PUBLIC RELATIONS

We will develop a public relations policy that will help increase awareness of our company and product. To achieve these goals we will consider some or all of the following:

• Develop a press release and a company backgrounder as a public relations tool.
• Develop a telephone script to handle customer and advertiser contact.
• We will attempt to never have a customer leave dissatisfied.
• Develop a survey to be completed by customers to help determine the following:
• How did they hear about us?
• What influenced them to use our service?
• How well did our service satisfy their needs?
• How efficient was our service?
• Did they have any problems getting through to us?
• Did they shop competitors before selecting us?
• How did they initially perceive our company and product?
• Where are most of our customers located?
• Do they have suggestions for improving our service or our approach to advertising?
• What additional services would they like us to offer?
• Would they recommend us to others?

We will join trade organizations and subscribe to trade journals to keep abreast of trends, management techniques etc. This organizations may include, National Restaurant Association, Auto Laundry News, and the International Car wash Association

Data Sheet #1

Fiscal Year in which Projections/Calculations are to start ................................................................................... 2000

Number of Months in which Projections/Calculations are to start............................................................................. 5

The purpose for this Analysis is Business Start-Up, Expansion, or Review.............................................START-UP

Owner's contribution to business (include both cash and time in dollar equivalency) ............................ $295,000.00

Indicate below if the figures are actual, annualized, or projected for each year in the analysis:

Indicate the type of business entity you have to the right: C

Data Sheet #2

New investments or loans totaling $1,400,000 must be obtained. This added to owner's investment of $295,000 will complete the project.

Owner's contribution breakdown is as follows:

Cash Flow Projection - 2000

Cash Flow Projection - 2001

Cash Flow Projection - 2002

Five-Year Income Statement (Restaurant & Gift Shop)

Five-Year Income Statement (Car Wash)

Five-Year Balance Sheet

Five-Year Cash Flow Statement

Common Size Income Statement

Common Size Balance Sheet

Average Monthly Break-even Analysis-2000 Car Wash

Average Monthly Break-even Analysis - 2000 Combined Restaurant & Gift Shop

Average Monthly Break-even Analysis - 2000 Combined Operations

Car Wash Break-even Chart - Year 1

Restaurant & Gift Shop Break-even Chart - Year 1

Loan Compliance Covenants

Annual Projections Summary

Rates of Return

ASSUMPTIONS:

Income figures are after taxes Dividend Payout = 50% of After Tax Income Reinvestment rate = 7%

IRR = INTERNAL RATE OF RETURN MIRR = MODIFIED RATE OF RETURN ROI = RATE OF RETURN ON OWNER'S INVESTMENT ROA = RATE OF RETURN ON TOTAL ASSETS

IRR = the interest rate received for an investment and income that occur at regular periods. MIRR = adds the cost of funds and interest received on reinvestment of cash to the IRR.

Income Per Share Chart

Income Statement

Balance Sheet Chart

Growth Trends

Net Income Growth

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Ratio Comparison

RATIO ANALYSIS

If A.B.C., Inc. meets the financial goals outlined in this plan, a ratio analysis of those numbers are extremely favorable when compared to industry averages according to the Robert Morris & Associates 1998 industry average figures.

Current Ratio is an approximate measure of a firm's ability to meet its current obligations and is calculated as Current Assets divided by Current Liabilities. The company's Current Ratio is above the industry median. This indicates a relatively more stable position for the company compared to the industry and indicates a possible opportunity for expanding operations.

Quick Ratio is a measure of a firm's ability to meet current obligations without relying on the sale of inventories. It is calculated as Current Assets minus inventories divided by Current Liabilities. This ratio is above the industry median, which indicates that A.B.C., Inc. is more stable relative to the industry and again points to an apparent opportunity for expansion.

EBIT to interest ratio is a measure of ability to meet annual interest payments. It is calculated as Earnings before Interest and Taxes divided by Annual Interest Expense. Since this ratio is above industry averages, the company should have no problem servicing its debt and can even service greater amounts of debt.

The Fixed Assets to Tangible Net Worth Ratio measures the extent to which owner's equity has been invested in the business. Since this ratio is on a downward trend, it provides an even larger "cushion" to creditors in the event of liquidation.

Current Maturities Coverage Ratio measures the ability to pay current maturities of longterm debt with cash flow from operations. It is calculated as Net Income + depreciation & amortization divided by current portion of long-term debt. This ratio is on an upward trend which indicates that cash flows available to service debt are increasing relative to the level of debt. It also indicates additional debt capacity is available if needed.

The Debt to Equity Ratio expresses the relationship between capital contributed by creditors and capital contributed by owners. It is calculated as Total Liabilities divided by Net Worth. This ratio shows a downward trend which would seem to indicate that if the company meets its goals that it will provide greater long-term financial safety for creditors. It also points out that A.B.C., Inc. can handle additional debt if needed.

The Earnings before Taxes to Total Assets Ratio expresses the pre-tax return on total assets and measures the effectiveness of management in employing available resources. It is calculated as Earnings Before Taxes divided by Net Worth minus Net Intangible Assets times 100. Since this ratio is above industry averages, the company would be more efficient than the industry in its effective employment of resources and would out-perform the industry as a whole.

The Revenue to Total Assets Ratio is a general measure of ability to generate revenue in relation to total assets. It is calculated as Earnings Before Taxes divided by Total Assets times 100. This ratio is above industry averages which can indicate that the company is efficient in using available resources to generate revenue as compared to the industry.

Assuming the financial projections in this plan are attained, the future looks very bright indeed. The property improvement, increased inventory items and the continued growth of both the car wash, restaurant, and the surrounding Madison area will help make A.B.C., Inc. one of the premier car wash destinations in the area.

A look at the financial ratios in this plan bears out our confidence in the future. A look at our competition comparison gives us a real look into the possibilities to become a market leader. A close look at the property can only reaffirm that the market, location, and clientele are all in place and waiting to be serviced by a car wash and restaurant such as A.B.C., Inc.

Throughout this plan we have taken special care to remain conservative in our growth projections. Even so, the numbers are spectacular. Some of the highlights include:

• Return on Invest of 15.45%, 19.17%, 29.61%, 55.94%, and 95.81% over the next five years.
• Steady growth conservatively averaging over 5% per year.
• Pre-Tax Profit is consistently far above industry averages.
• Total Equity is substantially higher than peer operations by the third year.
• Far greater strengths than weaknesses when compared to competition.
• Overall risks associated with the business are low.

Investment in A.B.C., Inc. at this time makes excellent economic sense. The projected cash flow is well above industry averages.

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