Car Wash Business Plan Sample

SUPER SUDS

Car Wash Business Plan

January 2012

Executive Summary Super Suds is a dynamic start-up company requiring $934,100 to establish a two-bay automatic and four-bay self-serve car wash that will provide exceptional car care services to the members of the Deerfield Beach community. Quality services that will exceed expectations will establish Super Suds as the premiere car wash service in Deerfield Beach, Florida. Roger and Suzie Upshur are pledging $45,000 and are looking for investors to raise an additional $150,000, which represents 20% of the company stock, to establish the company and to secure a Small Business Administration (SBA) loan of $740,400. Super Suds will be dedicated to offering the highest quality laser car wash, self-serve car wash and vacuum/shampoo services. Super Suds will also offer ATM services and will sell reverse osmosis (RO) water on site.

Super Suds has a strong management team. Mr. Upshur, who will be the President and Chief Executive Officer of the Super Suds Florida Corporation (C), has extensive leadership, management and organizational experience. He has served our country for the last 10 years as an officer in the United States Army. During those 10 years, he served one year as a Logistics Officer and two years as a Company Commander. As such, he helped plan, coordinate and execute several complex deployments and missions.

Extensive research indicates that the mild winter climate in Deerfield Beach will support steady year-round sales. Further, Super Suds AIA location and marketing campaign will attract the local residents, State University and Air Force Base customers. Super Suds will be near the intersection of two major roads in Deerfield Beach. Direct competition is limited to outdated "tunnel" or friction car washes, lube & washes and convenience stores.

Super Suds will open approximately 90 days after securing financing. Mr. Upshur is offering several ways to invest in Super Suds:

1. Company stock: Mr. Upshur is offering 20% of company stock to investors: offering 1% of company stock for $7,500. This capital will help establish the first Super Suds location. Super Suds plans to distribute $2,500 per 1% share each of the first three years.

2. Secured Investment: Mr. Upshur is offering a guaranteed 10% annual return for a three year investment. Mr. Upshur is willing to secure these investments with personal assets/investments.

The SBA loan that Mr. Upshur will secure from West Bank in Deerfield Beach is structured to ensure Super Suds success during the early months of operation. The $740,400 loan includes two elements designed to help build operating capital. First, the loan includes a 10% ($69,000) construction contingency that will convert to operating capital if the construction costs are consistent with the estimate. It also includes nine months of interim interest which will defer the long-term mortgage payment.

Mr. Upshur's ability and willingness to invest substantial cash in launching this business is furthered by the lack of personal dependence on business profits during the first 6-12 months of business. These factors will enable Mr. Upshur to expand to a second location within the first two years of operation.

1.1 Objectives 1. Average monthly sales of $28,000. 2. Establish second site 12 months after first Super Suds opens. 3. Provide initial investors a 33% ($2,500/share) distribution each of the first three years to recover initial investment.

1.2 Mission Super Suds is dedicated to providing its customers the ultimate car care experience ? focusing all of its energy and resources on customer satisfaction and value, while providing owners and employees an excellent reward.

1.3 Keys to Success Super Suds will be near the intersection of two major roads in Deerfield Beach. Direct competition is limited to outdated "tunnel" or friction car washes, lube & washes and convenience stores.

Super Suds will boast the Radius "touchless, spot-free" system. Washing Equipment of Florida is located in Deerfield Beach and will provide all equipment and maintenance support.

Company Summary Super Suds is a dynamic start-up company that will provide exceptional car care services to the members of the Deerfield Beach community. Quality services that exceed expectations will establish Super Suds as the premiere car wash service in Deerfield Beach, Florida. It will provide that following products and services to the local community:

1. Two Laser Automatic "touch-free and spot-free" car wash bays 2. Four "self-serve" bays 3. Vacuum and car wash vending services 4. Reverse osmosis drinking water.

Super Suds will establish its first location one lot from the intersection of AIA and Byrant Avenue, which are two of the busiest streets in Deerfield Beach. The lot faces AIA and will be accessible from two sides. The ATM and RO dispensers will be accessible from a side road and will not interfere with the car wash traffic.

The facility will have two automatic car wash bays, four self-serve bays and an equipment room/office in the middle of the bays. It will also have four high powered vacuum islands (eight total vacuums), vending area, and an ATM/RO water area.

2.1 Company Ownership Mr. Upshur will create Super Suds as a Florida C corporation based in Broward County. Mr. and Mrs. Upshur will be the majority owners (80%) with principal investors owning the remaining 20%. As of this writing, it has not yet been chartered and Mr. Upshur is still considering alternatives.

2.2 Start-up Summary Total projected start-up expenses (including construction, equipment, land, landscaping and related start-up expenses) come to $934,100. The start-up costs are to be financed by direct owner investment and long term financing.

A. Investment Options. Super Suds will open approximately 90 days after securing financing. Mr. Upshur is offering several ways to invest in Super Suds:

1. Company stock: Mr. Upshur is offering 20% of company stock to investors. Super Suds is offering 1% of company stock for $7,500. Capital will help establish the first Super Suds location and provide "head

start" on the second location. Super Suds plans to distribute $2,500 per 1% share each of the first three years. 2. Secured Investment: Mr. Upshur is offering a guaranteed 10% return for a three year investment. Mr. Upshur is willing to secure these investments with personal assets/investments.

B. Financing. The SBA loan that Mr. Upshur will secure from the SBA is structured to ensure Super Suds success during the early months of operation. The $740,400 loan includes two elements designed to help build operating capital. First, the loan includes a 10% ($69,000) construction contingency that will convert to operating capital if the construction costs are consistent with the estimate. It also includes 9 months of interim interest which will defer the long-term mortgage payment for 9 months (6 months of operation).

C. Land. Super Suds is in the process of securing a lot near (one lot from corner) the intersection of Bryant Ave. and Avenue N, which are two of the busiest streets in Deerfield Beach. The lot will be 165' along Avenue N and 175' deep. The purchase is pending the results of a phase I environmental inspection, which is expected to produce favorable results.

D. Construction. Getting a firm construction bid is the next step in the process after securing the initial investors. The architect plans and an actual bid will be the last elements necessary to secure bank financing. The estimates included are from previous projects and are considered generous (on the high-side). The estimated $390,000 includes total construction costs for two automatic and four self-serve bays, parking lot, signage, landscaping and architect fees.

E. Construction Contingency. The 10% construction contingency will cover any unexpected expenses or shortfalls. This may be re-negotiated as a "line of credit" in order to reduce the amount of the loan.

F. Equipment. Washing Equipment of Florida (WET) has provided a detailed estimate for the purchase and installation of the equipment for two automatic bays, four self-serve bays, four vacuum islands (eight vacuums) and a reverse osmosis water dispenser. WET, which is located in Deerfield Beach, will also provide all maintenance and repair services.

The assumptions are shown in the following tables and chart.

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets

$40,500 $893,500 $934,000

Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Randy Upshur Additional Investors (20% Ownership) 10% Construction Contingency Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding

$799,000 $94,500 $0 $94,500

$893,500

$0 $700,000

$0 $0 $700,000

$45,000 $150,000

$39,000 $0

$234,000 ($40,500) $193,500 $893,500 $934,000

Start-up Requirements Start-up Expenses Project Closing Costs Summit Funding Fee Misc (Legal/CPA/Misc) Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements

$25,000 $10,500

$5,000 $40,500

$94,500 $0

$799,000 $893,500 $934,000

Services Super Suds realizes the car wash industry, top to bottom, is a service industry. Super Suds will establish itself as the premier car wash facility in Deerfield Beach by providing a quality service for a competitive price and by focusing our staff on customer service. We will offer the following services to the Deerfield Beach community:

Laser "touch-free and spot-free" car wash (4 different washes: $5, $6, $7, $8) Four "self-serve" bays ($1.25 for 4 min cycle) Vacuum and car wash vending services($.75 for 4 min cycle) Reverse osmosis drinking water ($.25/gal) First Convenience Bank Goldkey ATM services.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download