EXECUTIVE SUMMARY

TABLE OF CONTENTS
 CLEAN & SHINE CAR WASH

BUSINESS PLAN

1.0 THE INDUSTRY AND THE COMPANY AND ITS PRODUCTS OR

SERVICES

1.1 The Industry

Currently, Bandar Darul Aman has a limited number of car wash businesses
currently in operation. There are no full-service car washes in the city,
therefore no competitors with the same business model while also providing a
unique market to be reached. However, direct competitors come in the form of
car wash stations (i.e. bays where you take your car to wash yourself) and
indirect competitors, detailing shop, and servicing shop. The full-service car
wash is a part of a growing business segment in the general car wash industry
in other expanding communities. Tapping into this market is an excellent
business opportunity that can be executed with great precision through the
employment of this business plan. The PESTE analyses for this industry are as
follows:

Political - The location for the proposed site already has the
required zoning for the business needs.
- Because of the zoning already in place, there will be
limited resistance on the proposal.
Economic - Reduced discretionary income and spending in light
of the economic slowdown, however the economy
is expected to begin rebounding and therefore
growth and family income levels are expected to
rise.
- Additionally, other factors (such as the desire for a
full-service wash) will outweigh the resistance by
the population.
Socio- - There is a growing professional population, Clean
Demographic & Shine’s target market, who will be willing to
spend the money to have their car washed and
 cleaned.
- The target market is currently growing in, Bandar
Darul Aman.
Technological - Clean & Shine will be purchasing the best
technology in the industry, to ensure reduced water
usage and pollution, as well as extending the life of
the equipment.
Environmental - Research shows that washing yourself uses more
water than when it is done at a facility.
- Additionally, Clean & Shine will have the
necessary equipment to deal with the pollution.

1.2 The Company and the Concept

Clean & Shine Car Wash is entering their first year of operation. The
Company believes that a comprehensive business plan strategy will be the key
to the success of the business. Clean & Shine Car Wash offers a premium
hand car washing service provided by a well-known local family. The basic
market need is a premium car washing service that is far less abrasive than the
traditional automatic car washes.

1.2.1 Vision

Clean & Shine Car Wash will be the customer’s premier choice within
Bandar Darul Aman, providing the highest quality, professional car
wash services while utilizing the latest wash technologies and
environmentally friendly products.

1.2.2 Mission

To provide an exceptional experience to our customers and their

vehicles, that is the highest in Quality, Convenience, Value and
Service. Clean & Shine Car Wash will deliver this exceptional
experience by consistently providing the highest levels of Quality,
Convenience, Value and Service.
 Quality - We want Clean & Shine Car Wash to be known for
amazing quality in the services and products that we offer. The
products we use will be of the highest quality to improve our
customers’ vehicles appearance and performance today and in
the future. All of the vehicles that pass through Clean & Shine
Car Wash will be quality-control inspected each and every time
to ensure customers receive the best quality.

 Convenience - At Clean & Shine Car Wash, we understand the

value of time. We strive to provide a convenient one stop
shopping experience for our customers. Our goal is to ensure
our customers receive prompt, courteous, professional service
to keep them coming back to Clean & Shine Car Wash in the
future.

 Value- Value is critical in making sure that our customer’s

experience is amazing. In most situations, value is about getting
what you pay for. We need to make sure that our prices are
competitive while using products that are the highest and best
in the industry and providing exceptional service.

 Service - Service is the glue that ties everything together. Our

goal is to make sure we provide the best service in our industry.
From how we offer our products to our customers, to the way
we execute our service, we want customers to leave thinking
about their amazing experience and planning their next trip
back to Clean & Shine Car Wash.
 1.2.3 Goals & Objectives

The overall goals and objectives are to:

 Provide efficient, convenient, superior car wash services to the

premium car-owner segment in Bandar Darul Aman .
 Implement effective quality control procedures to ensure the highest
quality car wash services
 Capture the premium car wash segment in , Bandar Darul Aman

1.3 The Products & Services

Clean & Shine Car Wash will be providing customers with four services:
exterior car washing, interior cleaning, detailing and servicing. Clean & Shine.
Clean & Shine Car Wash ability to provide a high quality service, both in
regards to the actual washing as well as customer service is all based on their
ability to find the best employees.

1.4 Entry and Growth Strategy

1.4.1 Short Term Goals

Goals within the first year of operations include:

 To obtain a capture rate of 0.5% of traffic flow in the proposed

location; and
 To be the first-movers in the car wash business by offering full
service operations and developing customer loyalty based on high
quality services.

1.4.2 Long Term Goals

Goals within the first year of operations include:

 To obtain a capture rate of 1.5% of traffic flow by year 5; and

 To be dedicated to establishing and maintaining the finest, high
quality, car wash operation in, Bandar Darul Aman

2.0 MARKET RESEARCH AND ANALYSIS

2.1 The Customers

Clean & Shine Car Wash will target three main groups of customers:
individual car owner and leasers, and local businesses. The surrounding area is
quite affluent, 40% of the residents earn over RM 60,000 a year.

2.1.1 Target Market

Clean & Shine Car Wash segments its customers by type of car
ownership. The Company believes that the type of car that a person
owns says volumes about their driving, and, therefore their car washing
and detailing requirements.

i. 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 bring them often to the wash and detail 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 Clean & Shine Car Wash will keep their car looking as
good as it did the day they drove it off the lot.
ii. 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 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 owners
will bring their cars in for regular washes and occasional
details.
iii. Sports car owners: These people are often younger or middle-
aged men and will regard the look of their car as important.
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 the
detail will not be necessary very often.
 iv. 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 will
bring their car in for a wash occasionally, just 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, they will not have a detail carried out on their car
unless they are selling it.
v. Local businesses: Some local businesses have fleets of cars,
small vans and lorries 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.

2.2 Market Size and Trends

The market trends for the car washing industry have been gravitation from
hand washing to automatic washing machine facilities. This trend has been
fueled by the progression of technology. The automatic washing machines
have become less expensive and more efficient over the last few years to the
point that it is typically cost effective to invest in these machines.

While one might presume that this would lead to the demise hand washing, the
abrasiveness of the machines will never be appropriate for expensive
automobiles. This trend will luckily not have a significant impact on hand
washing facilities that have a sufficiently large customer base that possess
expensive cars. Luckily for Clean & Shine Car Wash which does have an
upper end clientele, market supply will decrease and demand will increase.

2.3 Competition and Competitive Advantage

 2.4 Estimated Market Share and Sales

Clean & Shine Car Wash will have 20% market share of the hand car wash
business in the , Bandar Darul Aman neighborhood by the end of year three,
and it aims to convert a larger percentage of people away from machine car
washes, which damage a car's finish. Clean & Shine Car Wash will maintain a
95% gross profit margin and make 11% net profit margin after 12 months of
operation.

The following chart forecasts sales for Clean & Shine Car Wash (2019-2021)
based upon the Market Segmentation Strategy.

Forecast Sales by Year (2019-2021)

$240,000

$210,000
Full Wash
$180,000 Exterior Wash
$150,000 Interior Clean

$120,000 End User Detail

$90,000 Business Fleet Washes

$60,000 Car Dealership Details

$30,000

$0
2019 2020 Year 2021

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Interior Clean 770 1,001 1,301
End User Detail 129 193 290
Business Fleet Washes 615 923 1,384
Car Dealership Details 494 642 963
Total Unit Sales 5,818 7,712 10,376

Unit Prices Year 1 Year 2 Year 3

Full Wash RM15.00 RM 15.00 RM 15.00
Exterior Wash RM 9.00 RM 10.00 RM 12.00
Interior Clean RM 8.00 RM 9.00 RM 9.00
End User Detail RM 140.00 RM 145.00 RM 150.00
Business Fleet Washes RM 10.00 RM 10.00 RM 10.00
Car Dealership Details RM 70.00 RM 75.00 RM 80.00

Sales
Full Wash RM 26,400 RM 34,320 RM 44,616
Exterior Wash RM 18,450 RM 26,650 RM 41,574
Interior Clean RM 6,160 RM 9,009 RM 11,712
End User Detail RM 18,060 RM 27,985 RM 43,425
Business Fleet Washes RM 6,150 RM 9,225 RM 13,838
Car Dealership Details RM 34,580 RM 48,150 RM 77,040
Total Sales RM 109,800 RM 155,339 RM 232,204

Direct Unit Costs Year 1 Year 2 Year 3

Full Wash RM 0.70 RM 0.80 RM 0.90
Exterior Wash RM 0.40 RM 0.45 RM 0.50
Interior Clean RM 0.30 RM 0.35 RM 0.40
End User Detail RM 3.00 RM 3.50 RM 4.00
Business Fleet Washes RM 0.70 RM 0.75 RM 0.80
Car Dealership Details RM 3.00 RM 3.50 RM 4.00

Direct Cost of Sales

Full Wash RM 1,232 RM 1,830 RM 2,677
Exterior Wash RM 820 RM 1,199 RM 1,732
Interior Clean RM 231 RM 350 RM 521
 End User Detail RM 387 RM 676 RM 1,158
Business Fleet Washes RM 431 RM 692 RM 1,107
Car Dealership Details RM 1,482 RM 2,247 RM 3,852
Subtotal Direct Cost of Sales RM 4,583 RM 6,994 RM 11,047

2.5 Ongoing Market Evaluation

3.0 THE ECONOMICS OF THE BUSINESS

3.1 Gross and Operating Margins

Chart: Gross Margin Monthly

Gross Margin Monthly

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
 Chart: Gross Margin Yearly

Gross Margin Yearly

$210,000

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0
Year 1 Year 2 Year 3

3.2 Profit Potential and Durability

The following Profit and Loss table illustrates income and expenses monthly
for the first year, and annually for the next two years.

Chart: Profit Monthly

Profit Monthly

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

Month 1 Month 3 Month 5 Month 7 Month 9 Month 11

Month 2 Month 4 Month 6 Month 8 Month 10 Month 12
 Chart: Profit Yearly

Profit Yearly

$50,000

$45,000

$40,000
$35,000

$30,000

$25,000

$20,000

$15,000
$10,000

$5,000

$0
Year 1 Year 2 Year 3

3.3 Fixed, Variable & Semi Variable Costs

3.4 Months to Breakeven

3.5 Months to Reach Positive Cash Flow

4.0 MARKETING PLAN

4.1 Marketing Strategy

The marketing strategy will be to develop brand equity, increase customer

awareness of Clean & Shine Car Wash, and build the customer base. The
strategy will use several different methods to achieve the company goals.

4.1.1 Marketing Mix

Clean & Shine Car Wash marketing mix is comprised of the following
approaches to pricing, distribution, advertising and promotion, and
customer service.

i. Pricing - The pricing scheme is based on a per service price. A

"Membership Card" can be purchased which provides a volume
discount to the user.
 ii. Distribution - The offered services will be distributed from
company's facilities.
iii. Advertising and Promotion - Clean & Shine Car Wash will use
several different methods for advertising and promotion.
iv. Customer service - Exemplary customer service will be
provided.

4.2 Pricing

The first revenue stream will be from car washing services. Clean & Shine
Car Wash will have four levels of packages available: Bronze, Silver, Gold,
and Platinum. Below is the pricing and associated description of these
packages.

4.2.1 Packages

Package Price Description

Platinum “Take your Car to the Spa” wash

- Gold Wash (15 min) plus Semi-Detail

- Semi-Detail:
Cars/Trucks RM54.00
o 40 min (cars), 50 min (Vans, SUVs)
o Full cleaning wipe down of interior
o Inside and outside (no streaking) window wash
SUV/Mini RM64.00
o Full vacuum (inside plus trunk)
Van
o Air freshener
o Tire/rim cleaner

Full Size
RM74.00
Van/Truck

Gold RM20.00 “When only the best wash will do”

- Gold Wash (15 – 20 min)

o Rainbow wax (triple coat)
o Rain guarantee
o Inside air freshener
 o Under carriage rinse
o Rust inhibitor
o Vacuum interior/option of trunk
Silver RM18.00 “Quick and Dirty Wash”

o Basic Wash
o Clear coat wax
o No trunk vacuum
Bronze RM15.00 “Basic Wash”

o Simple car wash

o No wax/no trunk vacuum

4.2.1 Detailing

In addition to the full service car wash packages, Clean & Shine Car
Wash will have detailing services available for its customers. These
services are not expected to be used as frequently as the car wash
services and are therefore not the focus of, Clean & Shine.

Item Price Description

Interior Polish RM75.00 An interior polish of your car – vinyl

siding, dash board etc

Carpet RM125.00 Shampooing of the floor panels

Shampooing

Upholstery RM160.00 Shampooing of the seats

Shampooing

Hand Wax RM200.00 Hand waxing the car

Engine RM65.00 Shampooing the car engine

Shampooing
 4.2.1 Auto Accessories & Confectionary Goods

Other revenue for Clean & Shine Car Wash consists of the sale of auto
accessories and confectionary goods offered in the lounge where
customers will wait for their car to be washed. The revenue from these
items is minimal compared to the full-service car wash products and
services.

Auto Accessories:

 Wax, Soap, Glass Cleaner ,Brushes

Confectionary Goods:

 Chocolate bars, Gum, Drinks, Chips

4.3 Sales Tactics

4.4 Service & Warranty Policies

4.5 Advertising & Promotion

4.5.1 Advertising

Clean & Shine Car Wash will obtain most of its advertising through
word of mouth referrals and drive by/walk in business. However,
initial advertising expenses are necessary.

4.5.2 Signage

The sign will be up as of 15 December, 2018, advertising Clean &

Shine Car Wash and special notation of “Opening in January 2019”.
This will generate an awareness of the business for approximately 9
months prior to the opening. In addition to the billboard signage, we
will run advertisements in the local newspaper (Saskatoon Phoenix) in
the weekends prior to the opening.

4.5.3 Grand Opening Event

Clean & Shine Car Wash will have a “Grand Opening Event” held on
the weekend for the first day of operations This will provide new
 customers to try out our services and learn about what Clean & Shine
Car Wash has to offer.

4.5.4 Website

Clean & Shine Car Wash will have a website for its customers to
access with detailed information on hours, pricing, packages, services
and promotions. In addition to this information, there will be some
coupons offered online sporadically throughout the year.

4.5.5 Promotions

 Seniors Day – Tuesdays will be Seniors Day at Clean & Shine

Car Wash. This will provide the customers over 60 years with
a 10% discount on the package they chose.
 Ladies Day – Thursdays will be Ladies Day at Clean & Shine
Car Wash. Women will be provided with a 10% discount on
any car wash packages purchased on Thursdays.
 Rain Guarantee – Customers who purchase a package at Gold
Level or above will receive a free car wash (outside wash only)
if it rains within 2 days of the original wash. A valid receipt
required. The rewash must be within 3 days of the original
wash. This promotion will be limited to May to September.

5.0 DESIGN & DEVELOPMENT PLAN

5.1 Development Status & Tasks

5.1.1 Building Plan

The lot currently has a mature building which will be demolished and
the site re-developed for the Clean & Shine Car Wash, including water
system upgrades, environmental pit additions and new building shell
structure to hold the car wash tunnel conveyors. As the current listing
price includes inventory and some capital assets of the current business,
we propose to re-negotiate the price and require the seller to dispose of
these assets separately. The estimated re-negotiated price is
RM400,000.00.
 5.1.2 Building Layout

200 ft

135 ft
Washrooms
Lounge Area Staff Room Storage 12 ft
Cashier
Windows Along the Lounge

32 ft
Vacuum Wash Tunnel

80 ft
Entrance Mat Drying Exit
Wash/Spray

Wash Tunnel

Detailing Area Storage 15 ft

Storage

5.2 Difficulties and Risks

5.3 Product Improvement & New Products

5.4 Costs

5.5 Proprietary Issues

6.0 MANUFACTURING AND OPERATION PLAN

6.1 Operating Cycle

6.2 Geographical Location

6.3 Facilities & Improvements

6.4 Strategy & Plans

6.4.1 Operation Hours

 Monday - Thursday : 8:30am – 10:30pm

  Friday – Sunday : 9.00am – 10:30pm

6.5 Proprietary and Legal Issues

7.0 MANAGEMENT TEAM

7.1 Organization

Clean & Shine Car Wash will utilize a fairly flat organizational structure,
empowering front line employees to make active decisions to satisfy our
customers. More pervasive decision making will flow up the hierarchy to our
experienced On-Shift Managers to the CEO/CFO of the company.
(chart)
7.2 Key Management Personnel

7.3 Management Compensation and Ownership

7.4 Other Investors

7.5 Employment and Other Agreements and Stock Option and Bonus Plan

7.6 Board of Directors

7.7 Other Shareholders, Rights & Restrictions

7.8 Supporting Professional Advisors and Services

8.0 SUSTAINABILITY IMPACT

8.1 Issues of Sustainability of the Venture

8.2 Impact on Environment

8.3 Impact on the Community, Nation

9.0 OVERALL SCHEDULE

10.0 CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS

11.0 THE FINANCIAL PLAN

11.1 Pro forma Income Statements & Balance Sheet

 11.1.1 Profit and Loss Statement

The following Profit and Loss table illustrates income and expenses monthly
for the first year, and annually for the next two years.

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales RM 109,800 RM 155,339 RM 232,204
Direct Cost of Sales RM 4,583 RM 6,994 RM 11,047
Other 0 0 0
Total Cost of Sales RM 4,583 RM 6,994 RM 11,047

Gross Margin RM 105,218 RM 148,345 RM 221,157

Gross Margin % 95.83% 95.50% 95.24%

Expenses
Payroll RM 61,680 RM 88,312 RM 113,174
Sales and Marketing and Other RM 2,600 RM 1,550 RM 1,700
Expenses
Depreciation RM 2,070 RM 2,070 RM 2,070
Leased Equipment 0 0 0
Utilities RM 3,325 RM 3,500 RM 3,750
Insurance RM 1,800 RM 1,800 RM 1,800
Rent RM 4,800 RM 5,500 RM 6,000
Payroll Taxes RM 15,420 RM 22,078 RM 28,294
Other 0 0 0

Total Operating Expenses RM 91,695 RM 124,810 RM 156,788

Profit Before Interest and Taxes RM 13,523 RM 23,535 RM 64,370

EBITDA RM 15,592 RM 25,605 RM 66,440
Interest Expense 0 0 0
Taxes Incurred RM 3,204 RM 5,884 RM 16,361
Net Profit RM 10,318 RM 17,651 RM 48,009
Net Profit/Sales 9.40% 11.36% 20.68%

11.1.2 Balance Sheet

Clean & Shine Car Wash balance sheet illustrates a healthy financial
position for this new company.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash RM 20,395 RM 38,324 RM 86,575
Accounts Receivable RM 3,373 RM 4,772 RM 7,133
Inventory RM 668 RM 1,958 RM 3,200
Other Current Assets RM 1,000 RM 1,000 RM 1,000
Total Current Assets RM 25,435 RM 46,054 RM 97,908

Long-term Assets
Long-term Assets RM 10,000 RM 10,000 RM 10,000
Accumulated Depreciation RM 2,070 RM 4,140 RM 6,210
Total Long-term Assets RM 7,930 RM 5,860 RM 3,790
Total Assets RM 33,365 RM 51,914 RM 101,698

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable RM 3,097 RM 3,994 RM 5,769
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0
Subtotal Current Liabilities RM 3,097 RM 3,994 RM 5,769
Long-term Liabilities 0 0 0
Total Liabilities RM 3,097 RM 3,994 RM 5,769

Paid-in Capital RM 30,000 RM 30,000 RM 30,000

Retained Earnings (RM 10,050) RM 268 RM 17,919
Earnings RM 10,318 RM 17,651 RM 48,009
Total Capital RM 30,268 RM 47,919 RM 95,929
Total Liabilities and Capital RM 33,365 RM 51,914 RM 101,698

Net Worth RM 30,268 RM 47,919 RM 95,929

11.2 Pro Forma Cash Flow

The following Cash Flow table illustrates that if Clean & Shine Car Wash
meets projected sales, it will have positive cash flow after half a year of
operations.

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales RM 93,330 RM 132,038 RM 197,374
Cash from Receivables RM 13,097 RM 21,902 RM 32,470
Subtotal Cash from Operations RM 106,427 RM 153,940 RM 229,843

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received RM 106,427 RM 153,940 RM 229,843

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending RM 61,680 RM 88,312 RM 113,174
Bill Payments RM 33,052 RM 47,699 RM 68,418
Subtotal Spent on Operations RM 94,732 RM 136,011 RM 181,592

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current 0 0 0
Borrowing
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal 0 0 0
Repayment
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent RM 94,732 RM 136,011 RM 181,592

Net Cash Flow RM 11,695 RM 17,929 RM 48,251

Cash Balance RM 20,395 RM 38,324 RM 86,575

11.3 Breakeven Chart and Calculations

The table and chart below show the monthly break-even analysis calculations
for Clean & Shine Car Wash.
 Calculation of Break-even Analysis

Break-even Analysis

Monthly Units Break-even 423

Monthly Revenue Break-even RM7,974

Assumptions:
Average Per-Unit Revenue RM 18.87
Average Per-Unit Variable Cost RM 0.79
Estimated Monthly Fixed Cost RM 7,641

11.4 Cost Control

11.5 Highlights

12.0 PROPOSED COMPANY OFFERING

12.1 Desired Financing

12.2 Offering

12.3 Capitalization
 12.4 Use of Funds

12.5 Investor’s Return

13.0 APPENDICES
Appendix

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