Car Wash Business Plan

NYDA

VOUCHER NUMBER: 70738105

BROTHERS ON THE RISE CARWASH & VALET CENTRE

BUSINESS PLAN

CONTACT PERSON: PHYSICAL ADDRESS:

CONTACT TELEPHONE: EMAIL ADDRESS: DATE OF COMPILATION:

MR S. NTULI

23 FALK STREET ORANJESIG BLOEMFONTEIN 9301

083 5281 090

brothersontherisecarwash@

JUNE 2011

Prepared by:

CONTACT DETAILS:

Bopa Lesedi - Director

Jan Hamer PO Box 100853 Brandhof 9324

Tel.: +27 51 430 5106 Fax.: +27 51 430 5847 Cell: +27 83 406 9691 E-mail: jhamer@ Bopa Lesedi ? Compiler

Wynand Redelinghuys PO Box 100853 Brandhof 9324

Tel.: +27 51 436 2488 Fax.: +27 51 436 2488 Cell : +27 82 902 4774 E-mail : wynand@sbdc.co.za

Bopa Lesedi ? Compiler

Jeanne van Aswegen PO Box 100853 Brandhof 9324

Tel.: +27 51 436 2488 Fax.: +27 51 436 2488 Cell : +27 82 811 6857 E-mail: jeanne@sbdc.co.za Bopa Lesedi ? Information

18 A Whites Road Heuwelsig Bloemfontein

051 ? 436 2488 (office) 051 ? 436 2488 (fax) E-mail: info@sbdc.co.za Website:

Brothers on the Rise Carwash & Valet Centre TABLE OF CONTENTS

NYDA

EXECUTIVE SUMMARY ______________________________________________________ 4

1. BUSINESS DESCRIPTION _________________________________________________ 5

2. DEVELOPMENT IMPACT ___________________________________________________ 6

3. FINANCE REQUIRED _____________________________________________________ 7

4. PAST OPERATING PERFORMANCE ___________________________________________ 7

5. S W O T________________________________________________________________ 7

6. CRITICAL SUCCESS FACTORS _______________________________________________ 9

7. OWNERSHIP, MANAGEMENT AND TECHNICAL ASSISTANCE ______________________ 10

7.1 Ownership and Management _______________________________________________ 10 7.2 Technical Assistance _____________________________________________________ 11 8. MARKET OVERVIEW AND ANALYSIS ________________________________________ 11

8.1 Overview and Segmentation _______________________________________________ 11 8.2 Services _______________________________________________________________ 12 8.3 Price __________________________________________________________________ 14 8.4 Promotion _____________________________________________________________ 14 8.5 Distribution ____________________________________________________________ 16 8.6 Customer Analysis _______________________________________________________ 16 8.7 Competitive Advantages __________________________________________________ 17 8.8 Comparative Advantages __________________________________________________ 17 9. TECHNICAL REVIEW _____________________________________________________ 17

9.1 Service Delivery Process __________________________________________________ 17 9.2 Location and Premises ____________________________________________________ 18 9.3 Machinery and Equipment _________________________________________________ 19 9.4 Insurance ______________________________________________________________ 19 9.5 Legal and Regulatory _____________________________________________________ 19 9.6 Management Information Systems (MIS) _____________________________________ 20 9.7 Environmental and Occupational Safety Issues _________________________________ 20 9.8 Raw Materials___________________________________________________________ 20 9.9 Labour ________________________________________________________________ 20 10. FINANCIAL REVIEW ___________________________________________________ 21

10.1 Source of Funds _________________________________________________________ 21 10.2 Application of Funds ______________________________________________________ 21 10.3 Financial Projections _____________________________________________________ 23 10.4 BreakEven Analysis ______________________________________________________ 27 10.5 Sensitivity Analysis ______________________________________________________ 27 11. RISKS AND ISSUES ____________________________________________________ 29

12. ENTREPRENEUR'S FUTURE EXPANSION PLAN ________________________________ 29

- ANNEXURE........................................................................................................................31

Copyright ? 2011 Bopa Lesedi All rights reserved

Page 3

Brothers on the Rise Carwash & Valet Centre

EXECUTIVE SUMMARY

NYDA

The proposed business concept is comprised of starting and operating a carwash and valet services centre. The name of the business is Brothers on the Rise Carwash & Valet Centre. The potential market consists of a variety of vehicle owners, as well as car dealerships located in the area from which the business will ideally operate.

Financing to the amount of R300 000 is required to finance the purchasing of the required equipment, machinery and consumables for the business' daily activities, the construction of the carwash, as well as to provide operational capital. Brothers on the Rise Carwash & Valet Centre is a new business that seeks financing to enter the market.

The entrepreneur has already identified suitable premises for this venture, as well as having negotiated a renting agreement with the owner. The intended premises are close to Church Street; which is one of the busiest streets in Bloemfontein, as well as being the favoured location of car dealerships.

The projected financial performance of this business over a five-year period is reflected in the graph below:

Highlights

700,000 600,000 500,000 400,000 300,000 200,000 100,000

-

Sales Gross Profit Net Profit after Tax

Year 1 363,300 305,760 35,025

Year 2 422,456 355,571 61,218

Year 3 484,141 407,462 86,610

Year 4 544,983 458,675 111,681

Year 5 602,414 512,921 137,779

Key personnel required in this business endeavour include people to wash and clean clients' vehicles.

Copyright ? 2011 Bopa Lesedi All rights reserved

Page 4

Brothers on the Rise Carwash & Valet Centre

1. BUSINESS DESCRIPTION

NYDA

The business, which will trade as Brothers on the Rise Carwash & Valet Centre, is registered as a close corporation; registration number 2011/043719/23. The business has also obtained a Tax Clearance certificate. Please refer to the relevant Annexure for proof of registration and tax clearance. The owner and sole shareholder is Mr Siyamvuyela Ntuli. The preferable location for the business is at the parking area of Number 8 Building, Falk Street, Oranjesig, Bloemfontein (Free State Province).

The business will employ 4 people (excluding the owner) to wash and clean clients' cars; and 2 additional people to help run the business over weekends. The owner will perform the general management of the business, as well as customer care and handling any problems associated with dissatisfactory service. Mr Ntuli has already started marketing the business as the letters of intent in the relevant Annexure will testify.

The business will wash, clean and polish all forms of motor vehicles from its carwash facilities. The valet service will consist of a full carwash, full upholstery wash, seats and carpet wash, engine wash, degreaser, aluminium cleaner, stainless steel cleaner, tyre polish, vacuuming, dashboard polishing, car waxing, window bright polishing, tar removal and spot cleaning.

Brothers on the Rise Carwash & Valet Centre will operate from 7 am ? 7 pm on weekdays, and 8 am to 7 pm on weekends.

The target market consists of all vehicle operators and owners that pass through, visit or are located in the area of Oranjesig (Bloemfontein). The following is the business' logo (designed by Mr Ntuli):

Copyright ? 2011 Bopa Lesedi All rights reserved

Page 5

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