Business Plan

BUSINESS PLAN
EXECUTIVE SUMMARY MARK 56 home car wash is a service provider for a quality car wash at peoples door step. This service would be available for the residents of the area of double road Rawalpindi and adjacent Islamabad residential areas. Currently there is no such car wash service available in Islamabad or Rawalpindi. This plan will serve as a road map to illustrate the capacity of our services and profits may be utilized to expand the service in the executive class residential areas of Islamabad. This plan would be basic guideline for the owners to evaluate their business performance and decision making to accomplish their mission and objectives in short and long term. This service would be focused on satisfying the needs of the customers at their door step any time. The young educated well mannered staff of Mark 56 home car wash and a unique way to market them would definitely give it and extra edge over the existing competitors in this service. This is a basic need for the people who have cars/vehicles and they would not feel comfortable for getting their car washed and cleaned at a gas/petrol station, waiting for a long time and wasting their precious time. We overcome this problem of our customers by being at there door step with a reliable team which would really help us to succeed. BUSINESS This new business enterprise will provide home service of cleaning, washing and polishing; interior and exterior of car, trucks, motor bikes, jeeps, 4x4, tractors and any other vehicle. It is found that people always want there vehicle to be neat, tidy and having a polished surface. A majority of the population owning a vehicle are willing to pay even more than what is charged for the service but there are two major factors that makes the vehicles untidy. First of all the roads of the area; as soon as there is a rain shower, mud deposits on and near the roads is wedged with the moving traffic, making the vehicle untidy. Second reason is the service station, they do provide a satisfactory car wash service but people are very busy and no one is willing to wait in the lines at the service station to get there vehicle clean. Now any one in need of a wash service, can call us our contact number (helpline) from any where (home/office/shop) and while the owner is busy in his/her daily activities his/her vehicle will get the wash service desired by the owner.
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VISION Our vision is to be one of a major role model for young generation as the servants of society with creative and unique ideas to make common mans life easy. This plan is the step towards changing the perspective of the society to motivate and encourage them to be a part of nation building by holding themselves socially responsible. MISSION The mission of Mark 56 home car wash is to provide top-quality washing and detail service for all type of car/vehicle owners in Rawalpindi and Islamabad with focusing all of its energy and resources on customer satisfaction and value, while providing the owners team a reward of there hard work and unique concept along with the best retunes to our investors. OBJECTIVES The main objectives of Mark 56 home car wash are as follow: The Car Washs mission is to become the recognized leader in its targeted market for car washing. Achieve the break even within the initial stages of the business (as the investment is not very high). Attract more than 100 customers within three months. Use the profits after a year to buy new equipment and broaden the marketing plan. Within 1 years of the business, expand the business to elite residential areas of Islamabad. When our business is in the phase of increasing profits; take part in social campaigns of motivating young students to play a role in nation building and social responsibility for environment cleanliness. As our business is related to cleanliness we want to promote this concept through out the society.
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BUSINESS SUMMARY MARK 56 home car wash is a new and unique home service provided by young motivated and customer friendly team. It would help the people to get their car washed without any tension or fatigue at their homes. The staff of the company feels them self socially responsible for creating a friendly environment for the society where citizens specially the young generation can be motivated to help each other. The focus of our company is to satisfy the customer needs at minimum cost with providing high quality, effective and efficient service. OWNERSHIP AND THE MANAGEMENT Mark 56 car home wash is a private business started by a young energetic team. The main investor and owner of the company is Danish Sultan who would also perform the duties of a finance manager that include all the decisions of pricing, purchasing and investment etc. Other associates include Hassan Ashfaq who would act as operations manager and look after the operation and the performance of team. Umer Siddiq would act as the marketing manager and finally Qasim Farooq would be relationship manager. STAFF All the 4 members listed in the ownership will act as the workers. Team A will consist of Danish and Hassan where as Team B will be comprise of Umar and Qasim. Staff having experience and belonging from the youth can be a plus point for car washing business. The teams are not just good in washing but they also do it effectively and rapidly. The aim will be that the will be total satisfaction of the customer with our services. As this is a home car washing business so it is important that staff should know how to deal with the customers. SIZE OF THE BUSINESS We will start the business at a small level. We will follow guerilla marketing principles as we will employee low amount of investment budget to a targeted audience/ customer with unconventional and creative services. Estimated Income is showing positive indications and the surplus/profit will be utilized for the expansion of the business by increasing the number of employees and targeted areas respectively.
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DEMOGRAPHICALLY The location is the most important aspect in predicting a car wash's success. The 9th avenue and Stadium Road is one of the most crowded areas in the city. Almost every house owns a car and theres also lot of shops and mall. Its an area which is not very clean, theres almost dust everywhere so mostly cars get dusty very soon. Front of the cricket stadium is an area which is very crowded and can be a very good area for the car washing business because very few people there have any servants and mostly people live there do jobs so they dont get time to wash their cars. There countless number of shop, garages and CNG stations situated on the double road; who could be the possible customers of the business. The 9th avenue and cricket stadium road have very smooth road which will make our service delivery time very fast. OPERATIONS OF THE BUSINESS Main operation will include washing the exterior with the (branded) car-wash-shampoo. Cleaning the deposits of mud underneath the car. Using air blower and vacuum cleaners, for removing dust from the interior and under the bonnet. And at last polishing by means of polishing machine and branded polish. NATURE OF THE BUSINESS As this is a service related business, there is a no such Cost of Goods to be estimated. No doubt like every business, this business will also commence by purchasing the assets such as airblower, portable-vacuum cleaner, mini-water pressure pump and polishing machine. And of course a contact number (preferable cell phone; due to low cost, affordability and mobility). Car wash shampoo, polish, wash cloth and the transportation cost will be accounted as operating expenses (daily expenses). Initially the service will be provided in limited area, but if the business will gain success and the idea becomes hit, there are expansion planes.
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MARKETING As potential demand is large in the target area, but at the ignition time of the business; it is not possible that each and every one in the targeted area is fully informed about the business and it unique services. Advertisement will be made by poster. Broachers will be given to every home and shop located in the area. Our loyal customer who will frequently and reputedly demand services from us would be most attractive customers and will be given priority. MARKET ANALYSIS SUMMARY The car wash will be based in Stadium Road and 9th Avenue, Rawalpindi. This area has a number of benefits in terms of the market that it will provide for the business. As our home car washing business will save people time and provide them the service at home so mostly it will appeal to everyone including mostly those people who have jobs and cant maintain their cars clean. Many people in the neighborhood own or lease new cars and place great value on their cars and how they look. PROFILE OF PEOPLE LIVING ON 9th AVENUE AND THE STADIUM ROAD The People live in this area are mostly middle class and most families have just one car each. Mostly men in this area do jobs. They go early and come back in the evening so they dont have any time for the maintenance of their cars. Many people in the neighborhood own or lease new cars and place great value on their cars and how they look. Mostly people have age between 20 to 50 which suits the target market and majority is of the males because there are also malls and lot of shop where mostly males work. The income which mostly each family earns is not less than 50,000. The most of the people are also educated. So this make the market very attractive because most of the males will try to save their time and instead of going to wash cars service stations, they will like to have it at homes or while they are at work in the offices, shops, malls and other commercial and residential areas in the region. And for those who dont belong to this targeted region can have their vehicle good as new in the time they are shopping in the malls. Customers in the area will also be loyal to us because of the prices, absence of direct competition and easy availability of a needed service without any hesitation of time wastage. CONSUMERS/CUSTOMERS The first thing consumers usually do when they hear of a new service is compare it to existing alternatives. Customers will buy from a new business only if they perceive the value provided by that new business to be greater than the value provided by existing competitors, and as there is no such direct competitors in the market more and more people who are aware of the up coming business are willing to become the potential customers and are ready to pay to achieve the services. As the number of customers is initially low and there is almost no switching cost; the influence of the customers is high. But the number of buyer is estimated to
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grow very rapidly. Customers can easily compare a professional home car wash service with the service given at the station or with the services of those unemployed and unorganized people standing at the parking lots. THREAT OF SUBSTITUTES If getting a car wash from another place is a threat of substitute than Yes there is a threat. But talking in the real terms, and taking into consideration the fact the the service provided is not just a car-wash; it is home car wash than there is no threat of substitutes as workers working on the service stations will never come to ones house to clean the car and nobody will ever think of inviting the people standing at parking lots to there houses for a car wash, due to the security reasons. Thus proving that there is no or a very small threat of substitute. POTENTIAL ENTRANCE Potential entrance is not considered a threat at this initial stage because of the reason that the business is going to kick-start from a small level. And there number of customers even in the early stages is lot more than the potential load of the work that business could handle, so any entrance will not be causing the loss of customers.
MARKET SEGMENTATION Targeted area has a number of benefits in terms of the market that it will provide for the business. Many people in the neighborhood own and/or lease new cars and place great value on their cars and how they look. There are a large number of car dealerships in the area. We have divided the market into different segments. We believe that the type of car that a person owns is linked with their driving, car washing and detailing requirements. 1. New car owners: Owners of newer cars are most likely to use a hand car washing service. These owners take great pride in their cars and will be very much pleased to get home car wash and detailed service. The goal with these customers is to promote regular use of the wash and detail service. The aim is to inform these customers that our regular car wash will keep their car looking as good as it did the day they drove it off the lot. 2. Older luxury car owners: These people have either owned their high-end luxury cars for several years or are unable to afford the expense of a new luxury car but want the feel of relaxed driving. Both of these groups want to keep their cars neat and clean in the best shape possible. Those who have bought second-hand cars will often spend many hours in their cars and will place high importance on keeping their cars looking good. These categories of owners usually spend much time on cars maintenance and car
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wash services. So they will feel very comfortable to have better car wash service at home or at their place, in this way it will help them to have neat n clean car drive. 3. Sports car owners: These people are often younger or middle-aged men and will regard the look of their car as important. This class of people can easily be targeted in Islamabad. They will also pride themselves on the look of their car and will have their car hand washed (at least) weekly. These drivers will have an occasional detail, but will keep their cars so clean by having car wash service at their places. 4. Lifetime owners: Many of these people have owned their cars for more than five or six years, and are more likely to be women. They are attached to their cars as friends and though it may be more sensible for them to purchase a new car, they basically cannot bring their car in for a wash when the car is dirty. They like their cars to look presentable, and want to keep it in good shape but are not tied up in the look of their car. For this reason, again our home car wash will help them to have neat and clean drive. They will feel very convenient by having the car wash service at their home. It will save their precious time too. 5. Dealerships: There are different new and used car dealerships within the boundaries of both cities. These dealerships often use outside car wash services to detail their vehicles before they are put up for sale. Usually they do not have much time to take their cars at car wash places to get them service, as they are car dealers. For this, it will be very much easy and flexible for the car dealers to get their cars washed in detailed at their place in reasonable price. It will save their precious business time too. 6. Local businesses: Some local businesses have fleets of cars and small vans that must be kept clean to maintain their company image. These businesses will be looking for a cost effective, efficient car washing service to perform this service, and will prefer to use a car wash service during the week rather than during weekends, like the general public. Our home car wash service will definitely going to help them a lot in different ways. TARGET MARKET SEGMENT STRATEGY The strategy behind our home car wash target segmentation is to attract customers who will be repeat users and will frequent the business in the typically quiet times for a car wash business. It will not be difficult to attract customers during the summer months and on the weekends, the weekdays however, people will not think about having their cars washed. For this reason, our home car wash service will target people who will tend not to be restricted to these busy times.
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1. Business customers (car owners) tend to be very busy people, and are not often able to manage any free time in their demanding schedule, so for this reason our home car wash service will definitely going to give them quality work and will satisfy them. We have plan to offer them with discount coupon which can be utilized during 12 pm - 5 pm as this is the time that people dont intent to exploit in car wash and calls are least expected at these timing so this strategy will attract people for a car wash in the offpeak timings. 2. Retired people are not restricted by typical work schedules so will be able to frequent the car wash during the week. But once they will get their cars washed at their own place, they will definitely appreciate it, because it will help to save their time as well as will not allow them to wait for their turn in car wash stations. As old people cannot participate actively in the maintains of their car so to attract this market segment the team will provide free under the bonnet check to identify any problem in car performance (and giving this facility involves no cost). 3. Dealerships will need cars detailed and washed every day and week. This will supply a constant flow of traffic. They usually dont have much time, so in order to save their time and to get quality work; they will prefer to get their cars washed at their places instead of taking them to car wash and waiting for long time. They will be offered a service of 1 free car wash along with 4 paid car wash. This facility will not be given in the initial stages of the business and will be provided on the spot; meaning that on 4 consecutive car wash the 5th car will be washed for free on the spot, not later. This strategy will make dealers and garages to wash 4 cars instead of 2-3 and this will save a lot time compare to delivering services in 4 different locations in the areas. This will also increase the loyal customers. 4. Businesses will need their fleet cars washed during the week during regular business hours. Our home car wash service will definitely be a very helping hand for them. The business has plan to provide such regular commercial business the facility of credit payment but only if they are loyal customers. This strategy will be implemented in 6 months after evaluating the loyal commercial customers/ enterprises. PRICING Initially the customers will be charged Rs: 450 (with a polish service) and Rs: 350 (with out polish) [excluding the tips]. STRATEGY This new and innovate idea is appreciated by many people and they are willing to pay more than the service station rates due to the fact that they will be able to save a lot of time and they can get a service they wish for at any time of the day or night as the service is offered 24 hours, at any place they want (in the restricted area of the business).
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COMPETITIVE ADVANTAGE This business has an advantage that it is the only organized home car wash service in the region. There area number of car wash shops within both cities i.e. Rawalpindi & Islamabad. Our home car wash service is quite new and is trying to compete with automatic car washes by offering low prices. However, we are also targeting the customers who seek quality cleaning. The customers whom we are targeting have their cars washed based on the quality of the job. They usually do not have much time to spend at car wash service stations each week to have their car washed and waxed in order to keep the paint work in excellent shape. Their time values a lot. So in this way they are not able to maintain their cars they way they want. The businesses that we are going to target will be more cost conscious, so prices will be approximately 30% less for these customers to promote volume usage. This will definitely going to give us edge on the competitors. After washing their cars, we will be facilitating them by having free or discounted waxing facility to their cars which will help to maintain the shine of their luxurious and expensive cars. It is also an advantage which we will avail. Another advantage that we can benefited from is that majority of the car owners dont have time to take their car at car wash stations and literally hate to wait for their turns as it waste their time, and if they do so, they do not even get satisfaction which they desire. But on the other side of the coin, once they will start getting our home car wash service, they will be very much satisfied to get their cars washed in their houses or places and get waxed/ polished too. This will also boost up the customer satisfaction level. Another advantage that we can get is that we will be facilitating the customers 24/7. Anytime they want their cars washed, we will be available, and this is also one of the major plus point. MARKET AND INDUSTRY COMPETITION Market size of such business is very small as there is very minute direct competition; as there is no such organized business running in the area, small number of unemployed individuals standing at parking lots can be considered as a small threat. And the service stations can be considered as indirect competition. Competitors are not similar in size or capacity. The more the Business will grow the more the industry will grow, and by the estimation in the light of the survey conducted shows all the lines in the graphs and charts shooting up-wards. All of this attraction and expected growth is possible due to the opportunity to sell a differentiated service.
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SUPPLIERS/SUPPLIES This is a service business. The products used in the daily routine will be purchased according to the daily requirements, as this is a small scale business so supplies (such as polish, shampoo etc.) will not be bought in huge amount/stock as the business doesnt have that capacity right now. SALES STRATEGY By providing the the home services of such a service that is not delivered at home, the business hopes to lure potential customers in the portion of loyal customer. By providing appropriate incentives to the related segment audience as discussed in the Target Market Segment Strategy along with customer friendly relations will boost up the demand. POINT OF VIEW OF POTENTIAL CUSTOMERS The facts and figures generated are on the bases of Primary data collected. Questioners were used to collect the data and were attached with the feasibility report. 50 people were used in the process of survey (randomly). Varied people (in terms of age, gender, and race) presented there point of view about the business. The results were beyond our expectations. Focus was on a particular group of people living on or near the Stadium/Double road (Rawalpindi) and the 9th avenue (Islamabad).
RESULTS (PRIMARY DATA COLLECTED)

willing to pay more 24 hours wash service (favor) willing for a home car wash service getting a professional and desired wash hate to waiting at car wash station hate to go to a car wash station 0 10 20 30 40 50 60 70 80 90 100 percentage
All the indications show that people are waiting for a service like home car wash service to be brought into the market and a huge demand even before commencing the business.
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FINANCIAL OF THE BUSINESS Budget will comprise of Rs: 50,000 CAPITAL REQUIRED TO COMMENCE THE BUSINESS (ASSETS) Item Quantity Cost per Unit Total Cost Mini Air Blower 2 Rs: 2,200 Rs: 4,400 Mini Water Pump 2 Rs: 1,500 Rs: 3,000 Polishing Machine 2 Rs: 1,200 Rs: 2,400 Portable Vacuum 2 Rs: 1,000 Rs: 2,000 Cycles 4 Rs: 3,000 Rs: 12,000 Uniform (T-shirts) 4 Rs: 200 Rs: 800 Miscellaneous Rs: 5,000 Grand total Rs: 29,600 Based on the prices collected from the market of second hand good required for the business. PREPARATION Initially 2 teams will be made, each having 2 members. So there fore each team would have 2 cycles and 1 air blower, water pump, vacuum and polishing machine. HANDLING THE SURPLUS/SHORTAGE Total Budget (50,000) Capital Required (29,600) = Surplus (20,400) Rs: 20,000 approx. will be deposited in a bank account (at the present 12% interest rate), later to be utilized for the expansion plans of the Business. This investment will give Rs: 2,400 approx. of benefit p.a. If there is any deficit during the business it will tackled by over-draft (short term) loan from the bank. (But the probability is very low). ESTIMATED EARNINGS It is estimated that a team will deliver services to at least 12 customers (it takes 30-40 minutes to give a car wash utilizing the instruments provided). As there are 2 teams so that makes 24 car washes per day. Initially the customers will be charged Rs: 450 (with a polish service) and Rs: 350 (with out polish) [excluding the tips]. Assuming that out of 24 wash per day, 18 car wash services are with a polish service and 6 are without the polish.
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FORECASTED INCOME (INITIALLY) Details per Day Income per Task Total 18 car wash + polishing Rs: 450 Rs: 8,100 6 only car wash Rs: 350 Rs: 2,100 Total income per Day Rs: 10,200 Estimated earnings per Month= Rs: 10,200 x 30 Days = Rs: 3, 06,000 ESTIMATED EXPENSES As earnings as estimated to remain constant with a little fluctuation from the estimated amount of Rs: 3, 00,000 but the expenses will vary according to the Business life cycle stages as shown by the budgeted amounts. MARK 56 Operating Expenses Budget for 1st Quarter
1st month RS: FIXED Salaries Cycles services/ repair Uniform Dry-clean Asset Maintenance Total VARIABLE Car wash shampoo Polish Cleaning cloth Drying cloth Total DISCRETIONARY Advertising Total Operating Exp. for the month 40,000 1,000 1,400 500 42,900 2,000 3,500 400 600 6,500 8,000 57,400
2nd month RS: 40,000 1,000 1,400 500 42,900 2,500 4,800 700 1,400 9,400 3,000 55,300
3rd month RS: 40,000 1,000 1,400 500 42,900 2,800 5,400 1,000 1,900 11,100 5,000 59,000
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CASH BUDGET MARK 56 Cash Budget for 1st Quarter
1st month
Balances Inflows Investment Revenue Outflows Surplus/Shortage (net) 50,000 3,00,500 (57,400) 2,93,100 -
2nd month
2,93,100
3rd month
5,40,300
3,02,500 (55,300) 5,40,300
3,06,500 (59,000) 7,87,800
INVESTMENT GAINS MUDARABA According to the Islamic Principals of business, the investor and the entrepreneur divide the tasks and profits in a set manner. Investor provides with the capital and the entrepreneur provides expertise and management. This business practice is completely legal according to the laws of Pakistan Business Laws and Islamic Business Principles and the amount which will be presented to the inventor as return will be completely halal. Then will divide the surplus amounts in such away that each month Rs: 20,000 out of the surplus amount will be deposited in a bank account (for handling any shortage and if not will be utilized in the business expansion plans); and the reaming amount will be divided between the potential investor and the entrepreneur.
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RETURN ON INVESTMENT (FOR THE INVESTOR) Surplus after 3 months ------------------------------------------------------------------------------------7, 87,800 Bank balance (of Business) ------------------------ (Rs: 20,000 per moth x 3 month) 60,000 --------------------- (saved from initial investment) 20,000 80, 000 3, 63,900
Return to Entrepreneur------------ (7, 87,800-60,000 = 7, 27,800) ------- (7, 27,800/2)
Return to Investor after 3 moths on the Investment of Rs: 50, 000------------------------ 3, 63,900 As this is not a seasonal service and is not directly connected with any other factor that affects other business like political and economical situations of the country so thats why investors can expect smooth and steady return on their investment and if there is a case of shortage the business intend to pay the investor from the bank account. SUMMARY Mark 56 home car wash service is a grand slam investment. As a new and innovative approach with skilled, capable, organized, educated and customer friendly management, there is a fast potential of rapid escalation of this business. It this rate keeps up than this business will spread through out the cities.
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RESULTS (PRIMARY DATA COLLECTED)

CASH BUDGET MARK 56 Cash Budget for 1st Quarter

3,02,500 (55,300) 5,40,300

3,06,500 (59,000) 7,87,800

Return to Entrepreneur------------ (7, 87,800-60,000 = 7, 27,800) ------- (7, 27,800/2)

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