AUTOMATIC CAR WASH Project Report Final
AUTOMATIC CAR WASH Project Report Final
AUTOMATIC CAR WASH Project Report Final
Executive
summary
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MISSION STATEMENT
We will always strive to meet our customers needs and provide them with quality equipment
and services. Our car wash will be built to ensure our customers security and we will be
environmental friendly.
Executive Summary
The business idea which we are going to propose in our entrepreneurial finance course is
automatic car wash. Automatic car wash is basically the new idea of car wash which we are
going to launch in Rawalpindi. Basically as we know that now a days most of banks are giving
cars on easy installments and every second person around is having car but the main problem or
gap which we identified is that most of the people dont have time for their cars and they dont
feel like waiting in queues for manual car wash and especially on their weekends as that is the
only time or day which they get for their car wash. We have interviewed many people informally
and asked them about their experience of manual car wash so what they stated is that they have
to spend all day in queues in order to get their car wash done, when we shared our auto car wash
with them so most of the people which we interviewed were so happy to see this technology as
soon as possible because this new technology of auto car wash will allow the customers to get
their car wash done in just few minutes.
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BUSINESS DESCRIPTION
This new idea of car wash will all be automatic in which what customers have to do this is that
they just have to enter into the car wash booth and without even coming out of the car first they
will enter into the initial booth in which they will get their car water spray which will be high
pressured water which will remove all the dust and spots, after that the car will automatically
shift into second booth which will spray the shampoo all over the car and that shampoo will be
spread all over the car with the help of automated hand robots and then at the last stage the car
will be enter into the final booth that will dry the car with in a second. This whole process of
wash will take just 10-15 minutes.
We hope that most of the people of twin cities will avail our automated car wash service as most
of the people now a days dont have much time to wait for their turn in manual car wash as well
as people are more tilted toward technology so what we think is that this is the right time to enter
into the market with technology because there is currently no direct competitor of automated car
wash.
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Brushing
Foam
Rinsing
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Waxing
Drying
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LOCATION
We have chosen a prime location which is Shell Petrol Pump Murree Road Rawalpindi. The edge
we have over this place is that this area is fully commercial plus it covers several residential
colonies. Most importantly one of our partners owns this fuel station so it was the best option
available for us.
We have advantage of this location as it is situated in the border of twin cities so the customers
from Islamabad will also avail this facility especially the residents of I-8 sector.
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MARKETING
The grand opening of Twin City Car Wash will consist of the following:
-mass mailer that will be sent to target market population in a two mile radius
- Advertising in two local papers
- Flyers delivered to residences within a two mile radius.
- Social media campaign through Facebook.
Additionally, there will be an on-going marketing plan promoting the car wash throughout the
year utilizing these methods as well as banners and signs and happy customer referrals.
Pricing
The pricing of the car wash has been set on realistic basis after getting the reviews of the
potential customers. Most of the potential customers were willing to pay more than the selected
price but we want to have maximum customers to utilize this service so we have decided to have
best possible price to maximize our revenues.
1. Timing
This pricing will be 500RS per car from 9am-12pm.
INDUSRTY ANALYSIS
As Manual carwash industry is highly established in twin cities however automatic carwash
industry is new to the marker. Although one PSO fuel Station in Islamabad near Parliament had
started this business few years back but it failed badly due to several reasons such it was located
in red zone area where entry barriers were there for the people of twin cities. Although there are
several colonies in those premises but most of the people living there are from upper class and
have their own personal drivers to get the cars clean so they didnt prefer to go for it. So we have
no as such direct competitor, hence we have potential growth in the industry.
Operations
The start-up expenses for Twin City Carwash will be financed by the partners personal savings.
Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for
the business will be approximately $200 per month and will be paid by direct debit on a monthly
basis. Expensed equipment includes three high-power water pumps, one industrial vacuum
cleaners, one computer terminals, and one cash register. All of the equipment will be depreciated
over three years.
The location was previously used as manual carwash, so it is set up to move vehicles quickly
through the premises, but does not have all the necessary systems in place to host an automatic
car wash facility. The services of a contracting company will be sought to convert the use of the
facility and to improve the customer waiting room facilities.
Most importantly we already have the facility of water boring available so it is great opportunity
for us to run our operations smoothly.
Installation
The equipment we are importing from China. The engineer of the company from which we are
acquiring equipment will visit Pakistan and within a week the installation will be completed.
Plus the engineer will also provide the training sessions to the lower management team. The
supplier of equipment will be bearing the fare of the ticket, accommodation and food expenses of
the engineer.
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Management Summary
The management will comprise of upper management and lower management. The upper
management will be in the control of the partners and the tasks and activities will be divided
according to their specialties and skills. While the lower management will be in the hand of
operations manager.
Upper management
As we are having 4 partners so we have decided to divide the roles:
Fahad Javed (Marketing Specialist) will be responsible for all the marketing related activities.
Muhammad Furqan (Supply Chain Specialist) will be responsible for inventory and operations
management.
Badar Ul Islam Khan (Finance Specialist) will be responsible for all the financial related
activities.
Hammad Dadan (Legal specialist) will be responsible for all the legal and documentation
activities.
Lower Management
The company will hire one full-time technical specialist and 3 full-time car wash specialists
when it opens for business. There will be total 3 workers including:
1 supervisor who will also look after the technical issues.
2 workers who will operate the machinery.
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Financial Plan
Financial plan explains the common lay man how the entrepreneur intends to meet financial
obligations and maintain the ventures liquidity. It provides the complete picture of:
The amount funds and when they are coming into the organization.
Where funds are going and how much cash is available.
The projected financial position of the firm.
Initial Investment
TwinCity Carwash is supposed to be launched with an investment of only Rs.4 Million which
will be contributed by the partners. Whereas each of the four partners will bring in the
investment of Rs.1000000.
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Important Assumptions
The financial projections for twin city car wash are based on the following assumptions. These
assumptions are thought to be quite conservative, as are the financial forecasts.
Startup Expenses
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Sales forecast
Sales budget is an estimate of the expected volume of sales by month. It also includes estimated
ending inventory required as a buffer
Cost of sales can be determined from the sales forecasts.
In manufacturing ventures, costs of internal production and subcontracting are compared.
We have assumed that the % of sales method will be applied to the sales level. Hence the growth
rate of sales is 6% per month. We have determined the sales level realistically by analyzing the
sales level of existing manual car wash stations.
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The cost of goods sold will be 6% of the total month sales throughout the period which is 6%.we
will maintain the inventory level of 36000 Rs which is for 900 cars approximately.
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Pro forma income statement is a projected net profit calculated from projected revenue minus
projected costs and expenses. Operating costs includes fixed expenses incurred regardless of
sales volume while variable expenses must be linked to strategy in the business plan.
The income statement shows that we have positive net income which will be retained for the
future expansion of the business.
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Here balance sheet is a financial tool that summarizes the projected assets, liabilities, and net
worth of our venture. It is a picture of the business at a certain moment in time and does not
cover a period of time. It consists of:
Assets - Items that are owned or available to be used in the business operations that can either
be current or fixed.
Liabilities - Money that is owed to creditors and that can be current or long-term debt.
Owners equity - Amount owners have invested and/or retained from the venture operations.
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