Executive Summary

Introduction
ROGY Wash Car is a new start up hand car wash serving the Peninsular Communities in the
Western Urban District of Sierra Leone. ROGY Car Wash will be run by Idrissa Rogers, as the
Chief Executive Officer while a small-scale local employment of key staff will be done for the
start up. Idrissa Rogers has a Bachelor of Commerce as his first Degree, a Post Graduate
Diploma in Procurement, and currently he is pursuing his Masters in Business Administration at
the Institute of Public Administration and Management (IPAM). Idrissa also have worked for
several non-governmental organizations like BRAC, GOAL, WFP, and currently he is Logistics
Coordinator at Plan International Sierra Leone. This business venture that Idrissa wants to start
will be purely based on his research on the market and giving his background in Commerce,
Idrissa also want to challenge himself to write a Business Plan as well as develop it to a full-
blown business that should succeed.
Objectives
After in-depth analysis of our specific market area, national statistics on the car wash business,
and detailed evaluation of few car wash operations in Freetown, we expect to generate sales
revenues of SLL100,000,000 in the first year of operation. We believe our initial customer base
will substantially increase as the community becomes aware of our existence, our reputation
for excellent service, and our active involvement in community affairs. Because there are no
other car wash operations within a four-mile radius of our site location, we feel confident our
predicted growth will rise. Therefore, we expect to have a 100 percent market share of our
target market for at least the short term.
The Business
ROGY Car Wash will be providing customers with three services: exterior car washing, interior
cleaning, and detailing. ROGY Car Wash has no true competitors around the communities that
are being targeted though there is the possibility they will emerge in the near future. At the
moment there is a major road construction work going on linking the Peninsular to the
provinces and within the next two years this road will a major route for most commercial and
private vehicles. Before this time comes ROGY Car Wash wants to position itself as having the
competitive edge and the ability to provide a high-quality service, both in regards to the actual
washing as well as customer service and the ability to find the best employees. Hiring the best
employees is cost effective because it decreases employment costs associated with turnover
and other employee costs. Hiring the best employees and making sure that they are well taken
care of ensures that they in turn take care of the customers. Study after study proves that a
happy employee is far more likely to provide the highest level of customer service compared to
an employee who is not happy and feels that they are being taken advantage of.
The Customers
ROGY Car Wash will target three main groups of customers: individual car owner and leasers,
car dealerships, NGOs, and local businesses. The surrounding area is quite affluent, most of the
residents or potential residents are upper and middle class. Consequently, they can afford cars
and want them to look nice. There is potential for car dealerships business within the targeted
communities which will require car washing services for the various fleets. Also, there are many
different local businesses that have company cars and that require clean appearances.
Our carwash customers will have plenty of options when it comes to having their cars cleaned.
Car owners can choose anything from fully automatic carwashes to attendant-operated
carwashes and car detailing services. We realize that if we want people to choose our carwash
and keep coming back for years to come, we have to understand exactly what they’re looking
for and implement the most effective techniques to help them get what they want.
There’s no doubt that customer service reigns supreme when it comes to providing the best
carwash service and is often the difference between success and struggling to beat the
competition. If we want to see higher levels of customer satisfaction and improved profit
margins over time, we must understand what our customers really want from us.
Many carwash services sometimes attempt low pricing structures and even offered great deals
frequently to attract and retain customers. But, such a strategy is not sustainable and won’t
give our customers what they really want — and it devalues your services. What customers
ultimately want is value for their money. We will always compete on “value” above all other
factors.
While pricing matters, we will offer great value because happy customers will be glad to pay
more for our services for what it’s worth. Therefore, we will increase value for our carwash and
car detailing services on the following techniques to increase value:

 Offer discounts and special promotions. This is a great way to cultivate customer

loyalty. We can provide loyalty cards that allow loyal customers to receive discounts.
Make our offers for regulars as attractive as possible. Offer different seasonal
promotions and volume discounts for companies with fleets, car dealers and car hire
companies.

 Offer a little bit of extra service and giveaways. Apart from just offering quality
services, we should also extend our service by offering customers added value. For
instance, we can give every premium carwash customer free goodies like microfiber
towels or air fresheners. Offering extra options for a service is also an option. For
instance, on top of car detailing services, we can sell some auto parts like replacement
lift supports and offer installation service for various car models.
  Implement a frequent buyer program. our regular customers want us to reward them
for our loyalty, and there’s no better way than offering a frequent buyer program
or membership program. That makes them feel like a valued part of our brand.

 Offer a referral program to your existing customers. We will give customers rewards for
referring others. That will increase traffic and loyalty as well as ensure repeat business
from our regulars. A referral program is an excellent value-addition technique that
keeps our customers happier.
If you ask any carwash customer what matters most to them and what they love about the
business, they’ll likely mention something to do with customer-focused carwash experience.
That could be anything from staff interactions, perks, amenities, curb appeal, facility
atmosphere, and the quality of the carwash and car detailing services. Customers are looking
for a great, customer-focused experience.
How can we improve this experience? Implementing the following practical techniques will help
us provide more satisfactory services:

Increase your carwash processing speeds.

How long are we taking to service an end-to-end car cleaning or detailing? On average,
customers expect the whole process to take around 45 minutes to 1 hour for full service,
thorough interior and exterior cleaning. Improving our speed is key but we will never sacrifice
quality. Implementing more efficient processes that minimize customer wait times, expedite
payments and upgrade equipment will be at the core of service provision.
Offer customers servicing options and customizations
Just like the best auto shops and other local businesses do in many areas in the country, our
carwash customers also want us to offer tailored services that cater to their unique needs. For
instance, we can allow customers to choose their own car treatments to make them feel
valued. Improve our service offerings by offering various customer-focused options:

 Undercarriage carwashes

 Specialty carwash polishes and waxes

 Paint restorations

 Leather seat protectants

 “Ozone” treatment for odor control and removal

 Headlight and rear light reconditioning.

Ask customers what they want
Customer-focused service providers like us should care about how our customers’ cars look and
prioritize the treatments they need most. The best way to ensure we’re meeting our customers’
needs is to ask. First, let them know the options available through in-store signage, our online
platforms and adverts. Then, get their feedback on what they want, and track and analyze
which services and treatments they like most. Taking note of these key elements will improve
our services by bringing out the following fact:

 Do they opt for reclaimed or environmentally friendly carwash products?

 What are the popular carwash times and days of the week?

 Do customers prefer self service, conveyor belt or full service carwashes?

 What are the most preferred carwash treatments?

Maximize your curb appeal
We should be proud of the appearance of our business. Our customers should be able to
mention how they love our carwash location or curb appeal thereby ensuring our business
stands out both inside and outside. After all, our business is all about offering high-quality,
polished and spotless carwashes for loyal and satisfied customers. Having a disorganized and
dirty facility is not good for business and will only give the wrong impression of our carwash
services’ quality. We will give our business a fresh and appealing look. For instance, we can get
a custom-branded cashier booth for our carwash that provides a functional and comfortable
space for our cashiers to perform their duties while staying protected and secure.
Paying attention to the small details
It’s the smallest details that always have the most significant impact when offering excellent
customer service. No detail is too insignificant. As a business owner, ROGY Car Wash Center will
have a system to help detail small things, such as how often customers stop in — even the hour
— and train staff to remember faces, names and individual requests. Keep a record of
everything, and evaluate updates daily, weekly or monthly.
Create a thoughtful carwash environment
We will go the extra mile to create a thoughtful and positive carwash environment that puts our
customers first. Customers are always happy to return to carwash facilities that offer extra
comfort and make their trips more enjoyable. We will think of such additions as:

 Toys for kids while they wait for parents during a full service carwash

 Vending machines to provide snacks for hungry customers. For this especially we
will partner with anyone who wish to do food business in our facility.

 A clean, bright and well-decorated facility, especially waiting rooms and

washrooms
  Free coffee or water for customers in the waiting area and at the register.

Offer the best carwash service

This may seem obvious, but the most successful carwash businesses have mastered all aspects
of their services. They use high-quality cleaning products and chemicals, and they offer top-of-
the-line customer service. Customers have dozens of options but will only choose the best
service. Improving our service delivery, embrace new carwash formulas to offer a cleaner wash
that customers will love and boost our marketing efforts to attract more customers will be the
order of every business day.

Management
The strength of the CEO educational background and work experience is ROGY Car
Wash competitive edge as well as a significant asset. Idrissa has been studying the trend in the
car wash business for the last ten years. He has researched the market and identified what is
missing in service delivery and is prepared to bring something new to the table. The main focus
of the business startup is first:

 Determining funding requirements

 Managing employees, and

 Overseeing marketing and advertising

Small business management involves coordinating all aspects of the business to ensure that it
keeps on growing and achieves success.
Funding the operations of the business is the topmost priority. Whether the option will be from
personal investment, angel investment, business incubators, bank loans or government grants,
it’s important to familiarize with the advantages and disadvantages of these funding sources as
well as the criteria use to evaluate the business.
If the business should thrive, it’s important to hire motivated, high-energy trainable people who
are looking for success rather than making a quick buck. As a small business owner, I need to
know how to retain valuable employees by offering them perks such as flexible schedules,
happy hours and team building activities. Even if the right and smartest people are hired, it’s
going to take some time for them to understand the ins and outs of your business and figure
out how to put things together to achieve long-term goals. This is why training of employees is
going to be vital for ROGY Cash Wash. A training plan will be created that will make the
employees feel more competent and empowered in their jobs.
In a world where brands are constantly competing for consumers’ attention, ROGY Car wash
needs to force its way in front of people, show them something valuable and somehow have
them listen to their pitch. Research the different small business advertising and marketing
options before choosing a marketing model that works best for us and the business.

Objectives
The objectives for ROGY Car Wash and Detail Service are:

 To be viewed as a premium car wash and detail service in the Peninsular highway.

 Maintain a very high gross profit margin.

 Maintain a modest, steadily growing net profit margin.

 Expand to two locations after third year of operation.

Mission
The mission of ROGY Cash Wash is to provide top-quality washing and detail service for cars
and truck owners in the Country. ROGY Car Wash will work to keep employees satisfied in
order to maintain impeccable customer service.
Company Summary
The company is solely owned by Idrissa Rogers and will be funded by an initial
personal investment. ROGY Car Wash is the Western Urban District of Sierra Leone and will be
fully registered corporation with the Office of the Registrar and Administrator General.
Company Ownership
The company will be solely owned by Idrissa Rogers. Idrissa has a passion to startup a business
and see it succeed and has well research the market to make sure that the location of the
business, which will be around the Peninsular area linking Freetown and provincial towns would
be a perfect location for car wash business.
Start-up Summary
The start-up expenses for ROGY Car Wash will be financed by Idrissa Rogers, from the profits he
made in car wash services as well as personal savings. The property on the Peninsular Highway
will be leased in December 2021 for a minimum of five years, with the option to extend the
lease for another five years after that.
Idrissa will work with the private lawyer to set up incorporation and to discuss lease issues
before the business is launched. He is working with a local graphic designer to develop a logo,
letterhead, and company brochures. Idrissa has followed the trend in the car wash business and
understands what quick turnaround per car is and its importance. However, Idrissa is working
with an acquaintance to set up the system that will ensure efficient service even during peak
usage.
Rent on the location has been projected and will be Le 5 million per month. In addition,
electricity bill for the business will be approximately Le 800,000 per month and will be paid by
direct debit on a monthly basis. Expensed equipment includes three high-power water pumps,
two industrial vacuum cleaners, two computer terminals, and one cash register. All of the
equipment will be depreciated over five years.
The location will be designed as a quick stop automobile service shop, so it will be set up to
move vehicles quickly through the premises, and have all the necessary systems in place to host
a car wash and detail facility. The services of a contracting company will be sought to construct
car pits, customer waiting room, water reserve tank.

Table: Start-upXStart-up SLL

Requirements  
Start-up Expenses  
Legal 5,000,000
Stationery etc. 4,000,000
Brochures 4,500,000
Consultants -
Insurance 2,000,000
Rent 12,000,000
Research and Development 3,000,000
Expensed Equipment 41,000,000
Signs 7,000,000
Building Materials 12,000,000
Building Labor 10,000,000
Total Start-up Expenses 100,500,000
   
Start-up Assets  
Cash Required 87,000,000
Start-up Inventory 2,500,000
Other Current Assets 10,000,000
Long-term Assets 100,000,000
Total Assets 199,500,000
 SLL
Table: Start-up FundingXStart-up
Funding
Start-up Expenses to Fund 100,500,0
00
Start-up Assets to Fund 199,500,0
00
Total Funding Required 300,000,0
00

Assets
Non-cash Assets from Start-up 112,500,0
00
Cash Requirements from Start-up 87,000,00
0
Additional Cash Raised
-
Cash Balance on Starting Date 87,000,00
0
Total Assets 199,500,0
00

Liabilities and Capital

Services
Liabilities ROGY Car Wash will provide three
services to its customers:
Current Borrowing
-  Car washing (exterior)
Long-term Liabilities
-  Car cleaning (interior)
Accounts Payable (Outstanding Bills)  Car detailing
-
Other Current Liabilities (interest- Market Analysis Summary
free) -
The car wash will be based in River
Total Liabilities
- No2 Wester Urban District of
Sierra. This area has a number of
Capital benefits in terms of the market that
it will provide for the business. Over
Planned Investment 40% of households in the immediate
Investor 1 300,000,0 neighborhood earn over
00 SLL70,000,000 annually. Many
Investor 2 people in the neighborhood own
- and/or lease new cars and place
Other great value on their cars and how
- they look. There is a major road
Additional Investment Requirement construction going currently and it
-
Total Planned Investment 300,000,0
00

Loss at Start-up (Start-up Expenses) (100,500,00

hoped that this will finish in the next two years. After which, many vehicle will be plying this
route to transport people and goods. A large number of car parks will emerge in the area--five
within three miles of the proposed location for ROGY Car Wash.
Market Segmentation
ROGY Car Wash segments its customers by type of car ownership. We believe that the type of
car that a person owns says volumes about their driving, and, therefore their car washing and
detailing requirements.

 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 ROGY Car Wash will
keep their car looking as good as it did the day they drove it off the lot.

 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.

 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.

 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.

 Dealerships: There are five new and used car dealerships within three miles of the
proposed location of Soapy Rides. These dealerships often use outside car wash services
to detail their vehicles before they are put up for sale. In addition, there are fifteen
other car dealerships within a seven mile radius of ROGY Car Wash.

 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.

Chart: Market Analysis (Pie)

Market Analysis (Pie)

New Car Owners

Older Luxury Car Owners

Sports Car Owners

Lifetime Owners

New and Used Car Dealerships

Table: Market Analysis

XMarket Analysis

    Year Year Year Year Year  

1 2 3 4 5
 Potential Customers Growt           CAGR
h

New Car Owners 10% 7,200 7,920 8,712 9,583 10,54 10.00
1 %

Older Luxury Car Owners 15% 12,50 14,37 16,53 19,01 21,86 15.00
0 5 1 1 3 %

Sports Car Owners 15% 6,500 7,475 8,596 9,885 11,36 15.00
8 %

Lifetime Owners 10% 17,00 18,70 20,57 22,62 24,89 10.00

0 0 0 7 0 %

New and Used Car Dealerships 7% 9 10 11 12 13 9.63%

Total 12.28% 43,20 48,48 54,42 61,11 68,67 12.28

9 0 0 8 5 %

Target Market Segment Strategy

The strategy behind ROGY Car Wash Center 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 holiday months and on the
weekends, the weekdays however, especially during the week, people will not think about
having their cars washed. For this reason, ROGY Car Wash Center will target people who will
tend not to be restricted to these busy times.

 Business owners (new car owners) tend to be very busy people, but are often able to
make their own hours.

 Retired people (older luxury car owners) are not restricted by typical work schedules so
will be able to frequent the car wash during the week.

 Dealerships will need cars detailed and washed regardless of the time of the day and
week. This will supply a constant flow of traffic.
  Businesses will need their fleet cars washed during the week during regular business
hours.
Service Business Analysis
At the moment the hand car washing business around River No2 consists of little or no
competitors. Everything from local youths washing cash for people who go to the
beaches. However, these two alternatives aim to meet the needs of the price-conscious
individuals who are choosing the service simply so they do not have to clean the car
themselves. ROGY Car Wash on the other hand, targets the quality-conscious individuals who
value their car enough to spend SLL50,000-SLL100,000 per week to make it look good.
Competition and Buying Patterns
Competition
No car wash center has been identified around the area and this puts ROGY Car Wash Center
ahead of the market. Therefore, ROGY Car Wash will be solving a major pain point for our
customers in a new market and in an innovative way. However, there is full awareness of the
challenges that go along with being the only service provider. However, the following things will
be considered:

 behaviours of the new target customers

 communication channels and their usage

 common payment methods

Also, the demographics will be explored while getting familiar with the business nuances.
Extensive research will be carried out which will enable the business to appeal to new market
audience, meet the needs and accomplish the business goals.
Buying Patterns
The customers who ROGY Car Wash Center is targeting will have their cars washed based on
the quality of the job. They do not mind spending a little more each week to have their car
washed and waxed in order to keep the paint work in excellent shape. The businesses that
ROGY Car Wash will target will be more cost conscious, so prices will be affordable for these
customers to promote volume usage.
Customers demand will be defined by the frequency and timing for car wash services.
These patterns will be determined by factors such as:

 Where someone lives

 Where they work

  How much money they make

 What they enjoy and prefer

 What their friends and family recommend

 What their goals and motivations are

 The price of the service they're interested in (and any active sales or discounts)

 Product displays

 The necessity of the service

Strategy and Implementation Summary
The key differentiator for ROGY Car Wash is Idrissa Rogers personal connections within the
River No.2 neighborhood. For this reason, the sales and marketing focus will be on a one-to-one
basis, with the emphasis on gaining loyal and repeat customers as "friends" of the business.
ROGY Car Wash, therefore, will depend on word-of-mouth advertising for the immediate
community.
While Strategic implementation is a process that puts plans and strategies into action to reach
desired goals, the strategic plan itself will detail the steps and processes needed to reach plan
goals, and includes feedback and progress reports to ensure that the plan is on track.
Strategic implementation is going to be critical to the business success, addressing the who,
where, when, and how of reaching the desired goals and objectives. It will focus on the entire
business.
If it is going to be successful, the implementation plan should have a very visible leadership,
such as the CEO, as he communicates the vision, excitement and behaviors necessary for
achievement. Everyone in the organization will be engaged in the plan.
Competitive Edge
The car wash business is like any other service business when it comes to evaluating the
services we offer and where we stand in the marketplace. We need to adjust our services and
fine-tune our business based on a number of market factors such as the economy, customer
perception, and competition.
An in-depth look at our operations and a comprehensive market analysis of our potential
competition is key to helping us make decisions to keep our business viable. A competitive
analysis will allow us to assess our and our competitor’s strengths and weaknesses in our trade
area. It will also help us implement effective strategies to improve our competitive advantage.
Here are a few steps that will help us conduct a competitive analysis and decide if it is time for a
change.
STEP ONE: ANALYZING OUR OPERATION
Analyzing our services, facilities, and operations. Use SWOT (strengths, weaknesses,
opportunities, and threats) analysis charts to help answer the following:
• Why do customers use our car wash?
• What services do they use the most?
• What services or features do we offer that our competition does not?
• What makes our service offering unique?
• What is the least purchased service that we offer? Why?
• Are all of our features and services profitable?
• Is our business growing or stagnating?
• How is our employee morale?
• Are our facilities and equipment modern? Or are they growing old?
• How is our social media presence?
• Is our website modern and up to date?
• Is our marketing plan effective?

 STEP TWO: ANALYZING OUR CUSTOMERS

We will ask the following questions about our customers:
• Who are they?
• Why do they choose our car wash over the competition?
• What services do they like or dislike? Why?
• Are they demographically diverse?
• What are their buying trends? People’s lives are constantly changing. We need to be aware of
any change in the buying patterns of our customers and plan new product offerings or services
accordingly.
• Ask for ideas of services they would purchase if we offered them.

STEP THREE: ANALYZING OUR MARKET

• How many people live in our trade area?
• How is the local economy?
• What type of vehicles do our customers drive? Old? New? High end?
• Are there any unique vehicles in our market that you can create a niche service for?
• Are there any seasonal occurrences, which you can create new services for?
STEP FOUR: ANALYZING OUR COMPETITION.
• How many competitors do we have?
• Who are they?
• What services do they offer that you do not? Why?
• What does the competition do better than you?
• How is our competition pricing their wash services?
• How do we compare on price?
• Who are our top three competitors?
• Are our competitors profitable?
• How long have they been in business?
• Are they expanding? Scaling down?
• How is their employee morale?
• How active are they on social media?
• Is their website managed by a professional or are they maintaining it themselves?

In order to develop effective competitive strategies, we need to make a realistic assessment of

our competitors’ strengths and weaknesses as viewed by the market. Complete a SWOT
(strength, weakness, opportunities, threats) analysis of each of our competitors. What do we do
better than them? Focus will be laid on areas where we can improve and provide added value
to our customers. Added value allows us to promote features and unique aspects to our
customers and price our services more profitably.
ROGY Car Wash competitive advantage will sets the business apart from competition. Some of
the benefits customers will receive when they do business with us will be:

 A cleaner car, not just the exterior but the interior as well, will help de-clutter the
customer mind. It’s surprising how a clean car can affect the way you feel about it.

 Additionally, car washes can protect your investment. A car wash helps protect the paint
on your car by clearing away acid rain, dirt and road salt that can cause rust and
corrosion to your car.
Therefore, the benefits a customer receives when they do business with ROGY Car Wash will be
at the top of priorities to gain competitive edge. The products, service, and reputation of the
business will also be prioritized. However, since this is a new startup business, the location of
the business is what stand out as a major competitive edge at the moment.
SWOT ANALYSIS
Technological advancement on products and equipment has made a huge impact on the car
wash industry over the past decade. This has been a great improvement for the industry and
has seen businesses getting quick return on investments.
The internet has caused a revolution in the ways car wash businesses attract and retain
customers as customers can now go online to check the review of other customers before
deciding to visit the car wash. A negative customer review is likely to cause a business to lose
new as well as existing customers. This has made car washes to be very careful in the way they
handle their customers so that a positive review will create more customers for the business.
Household customers account for about 76 percent of those who used the services in the car
wash industry. These household customers are usually between the ages of 24 and above and
own a car and a valid driver’s license. Those with high income represent those that have the
highest demand for car washing services.
Car wash business is one of the businesses that can easily generate sales with little stress, as
long as they are well positioned. We are building a standard car wash business with variety of
services which is why we have decided to subject our business idea (company) to SWOT
Analysis.
Ordinarily people can successfully run a normal car wash business without the stress of going
through the required protocol of setting up a new business including writing a detailed business
plan, but because of the nature of carwash business we want to establish, there is no option
other than to follow due process.

 Strength:
ROGY Car Wash Center is centrally located in a new residential area in River No2; our location is
in fact one of our major strength. We are going to be a car wash company that offers variety of
services. For instance, if clients visit our cash wash to wash their cars, they will have the option
of visiting the beach which is at close proximity our car wash center.
Also, Car washes operate with a great deal of economic stability. During times of economic
recessions or duress, car wash businesses are able to remain profitable and cash flow positive
given that they generate extremely high gross margins from their services. Additionally, as
many people are extremely busy, they will continue to use car washes instead of cleaning their
cars on their own. Generally, the startup costs for a new car wash business range from SLL 10
million to SLL25 million depending on whether or not automated equipment will be purchased.
Companies that provide detailing services generally produce higher gross margins than self-
service car washes.

 Weakness:
Since ROGY Car Wash Center is a new business which is owned by an individual, the business
may not have the financial muscle to sustain the kind of publicity the business deserves.
Secondly, one of the primary issues that car washes have, much like any other business is that
they face a tremendous amount of competition. There are low barriers to entry for starting a
new car wash (with the exception of mechanically operated locations). Additionally, these
businesses - while generating high gross margins - also have very high operating costs. The
energy and water costs for these businesses are very high.
  Opportunities:
We are centrally located in one of the busiest area and on the main motor road linking
Freetown and provinces and we are going to open to all the available opportunities that this
route has to offer. Our business concept also will position us to be a one stop shop in the car
wash industry. The truth is that there are no car wash facilities within the area where our car
wash is going to be located; the closest car wash facility to our proposed location is about 6
miles away. In a nutshell, we do not have any direct competition within our target market area.
From a service standpoint, our car wash can continually expand its service offerings to include
specialized detailing and more through washes. Additionally, there is great potential to expand
our operations by acquiring or developing additional locations. Once established, then we are
guaranteed to secure banks and financial institutions capital because of our highly predictable
revenue streams, and economic stability.

 Threat:
Some of the threats that are likely going to confront ROGY Car Wash Center is unfavorable
government policies, seasonal fluctuations, demographic / social factors, downturn in the
economy which is likely going to affect consumers spending and of course emergence of new
competitors within the same location where our carwash is going to be located.
Sales Strategy
Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of ROGY
Car Wash Center, and that all employees care about the care and upkeep of each
vehicle. However, we are also aware that there are low switching costs in the car washing
industry, so we have to work hard to develop and keep repeating customers.
ROGY Car Wash marketing mix will comprised of the following approaches to pricing,
distribution, advertising and promotion, and customer service.

 Pricing- The pricing scheme will be based on a per service price. A "Car Wash Card" can
be purchased which provides a volume discount to the user.

 Distribution- The offered services will be distributed from ROGY Car Wash facilities.

 Advertising and Promotion- ROGY Car Wash will use several different methods for
advertising and promotion.

 Customer service- Exemplary customer service will be provided

Sales Forecast
For ROGY Car wash Center, the objective of forecasting will be to:

 Efficiently manage service delivery.

  Ensure we have enough storage, staff, and budget for future growth.

 Prepare to handle a spike in seasonal service demand.

 Create a successful fulfillment strategy and achieve customer satisfaction.

 Visualize and better handle cash flow.

 Determine when and how much service product to restock.

By forecasting for the business by service category, sub-category, and the car wash products we
will use, we should be able to continue expanding the startup and get the support that’s crucial
to handling growing demand.
To kick off forecasting for the startup, it’s important we:
1. Set the time interval we are projecting for.
2. Calculate the unit cost you incur during service delivery.
3. Determine the unit price of each service.

4. Gather information on seasonal demand trends.

5. Calculate the lead time of stock.

Making sure we have enough inventory on hand is crucial to keeping our customers happy.
With this, two forecasting methods will come to play when making predictions that will help us
prepare to meet future demand.
Naive Forecasting
This is the most basic type of inventory forecast we can do. A desired time frame (a month,
year, etc.) will be set and then finding out how many services have been delivered. From there,
an estimate will be made to keep at least that amount in stock for that same period of time in
the future.
This method is fine for a quick, monthly forecast or as a baseline to check other more complex
inventory forecasts. Since it doesn’t account for other variables like market competition or
consumer demand, this one shouldn’t be the only model use for more serious forecasting when
the business should have grown.
This method will definitely well suited for making long-term forecasts about inventory. It’s more
complex since it requires a lot of time and data to create estimates. However, it will provide a
much more accurate prediction than the naive method above.

XSales 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 SLL SLL SLL
50,000 150,000 150,000
Exterior Wash SLL SLL SLL
90,000 100,000 120,000
Interior Clean SLL SLL SLL
80,000 90,000 90,000
Business Fleet Washes SLL SLL SLL
10,000 100,000 100,000
Car Dealership Details SLL SLL SLL
700,000 750,000 80,000

Sales
Full Wash SLL SLL SLL
264,000,000 343,200,000 446,160,000
Exterior Wash SLL SLL SLL
184,500,000 266,500,000 415,740,000
Interior Clean SLL SLL SLL
61,600,000 90,090,000 117,120,000
End User Detail SLL SLL SLL
180,600,000 279,850,000 434,250,000
Business Fleet Washes SLL SLL SLL
61,500,000 92,250,000 138,380,000
Car Dealership Details SLL SLL SLL
345,800,000 481,500,000 770,400,000
Total Sales SLL SLL SLL
1,098,000,000 1,553,390,000 2,322,040,000
 Sales by Year

250,000,000 SLL

200,000,000 SLL

Car Dealership Details

Business Fleet Washes
150,000,000 SLL
End User Detail
Interior Clean
Exterior Wash
Full Wash

100,000,000 SLL

50,000,000 SLL

0 SLL
Year 1 Year 2 Year 3
 Sales Monthly
14,000,000 SLL

12,000,000 SLL

10,000,000 SLL

8,000,000 SLL Car Dealership Details

Business Fleet Washes
End User Detail
Interior Clean
Exterior Wash
6,000,000 SLL Full Wash

4,000,000 SLL

2,000,000 SLL

0 SLL
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12
Milestones
ROGY Car Wash Center will check off the following pre-launch milestones as a ground breaker:
Validate the business idea 
Put the business idea to the test by creating a prototype, and getting customer feedback and
the like.
Set up a business bank account 
Aside from making record keeping a whole lot easier, keeping personal and business finances
separate helps prove to the potential investors and lenders that your business is indeed a
business.
Secure funding
How much capital the business needs to get it off the ground and where will it come from?
Choose the legal structure 
This type of business will affect taxes, paperwork and even the way funds are raise, therefore
the legal structure need to be wisely chosen.
Finding a location
Whether we are going to rent or buy it, the business needs a physical address. Therefore, we
will Choose a space that can accommodate the needs now and also as the business grows will
be able to accommodate our activities.
Building a business website 
We are fully aware of the role the internet plays in promoting businesses in this era. Therefore,
we will establish an online presence from the get-go, so people can find us.
Create a marketing plan 
We might have the best car wash services in Sierra Leone, but if nobody knows about it, our
startup business will not succeed. Developing a marketing plan to promote the business and
what we have to offer will be a key factor.
Launch our Car Wash Services
To take our car wash services to the market, a launch date will be set
Hire employees
Focus will be laid on hiring people with the right skills and personality to fit business culture
that will eventually expand the business capabilities.
Growing our customer base 
Without customers, we don’t have a business, so we are going to:

 Network

 leverage social media; and

 do all we can to build our customer base which could also take other forms like
o publicity

o Printing of fliers and brochures

Finding a mentor
Mentors can provide us with the information we need to strengthen our startup business. They
can connect us with others who are willing to invest in our business or offer insight. And they
can help us work smarter by steering clear of the pitfalls they’ve encountered in the past.
Tracking our progress 
As we begin meeting these milestones, we will make sure to check in with ourselves. Tracking
our progress will not only help increase our success rate, but also boost our confidence and
keep us motivated by showing us how far we've come.
Keeping our eyes on the prize
It’s tough to stay focused when our next milestone is three, five or 10 years out. Therefore, we
will break down our goals into smaller, more manageable actionable steps. In other words, if
our goal is to take our service to the market, we will break them down into these baby steps:

 Post your idea on our websites and other social media platforms to get customer
feedback 

 Fine-tune our services according to feedback

 Create a prototype or mini version of your services

 Launch our services

The following table outlines the important and immediate milestones in the planning and
implementation of ROGY Car Wash.
 Chart:
MilestonesXMilestones
Milestone Start Date End Date Budget Manager Department
Complete Business Plan 2/1/2022 5/1/2022 SLL N/A Department
-
Sign Rental Contract 3/20/2022 3/20/2022 SLL N/A Owner
4,750,000
Convert Premises 4/1/2022 4/30/2022 SLL Contractors Contractors
-
Hire Car Wash Staff 4/20/2022 4/20/2022 SLL N/A Owner
2,000,000
Hire Admin Staff 4/20/2022 4/20/2022 SLL N/A Owner
2,000,000
Open for Business 5/1/2022 5/1/2022 SLL Staff Staff
-
Distribute Flyers 4/28/2022 5/5/2022 SLL Friends Friends
750,000
Press Release 4/29/2022 4/29/2022 SLL N/A Owner
250,000
Follow-up on Press 4/30/2022 4/30/2022 SLL N/A Owner
Release -
Totals SLL
9,750,000

Management Structure
The management structure will be a relationship between different roles in the business with
Idrissa Rogers being the sole owner and manager of ROGY Car Wash Center. The structure will
show how the roles are linked and what level of responsibility each role involves. Moreover, it
will show the hierarchy of roles within the organization. Developing a clear idea of our
business's structure will help us stay organized in the start-up phase and beyond.
Generally, there are two most common startup management structure types for small
businesses just getting started and they are the flat and hierarchical structures. Since the
business is going to have only a handful of employees for a start and the owner (Idrissa Rogers)
will have final approval over most of all decisions, we will consider using the flat structure, with
Idrissa Rogers at the top and all other employees reporting to him. Each person will have their
own area of expertise or specialty.
However, if at some point Idrissa realizes after a period of time that he cannot efficiently
perform all managerial functions, dedicated employees will take on the functions of lower-level
management, such as financial and marketing managers. By delegating managerial
responsibilities, Idrissa as the Manager can focus on larger goals. Meanwhile, employees will
have the chance to grow more skills and knowledge in performing specific functions, making
the business more efficient.
At this stage of the business developing an organizational chart will not be necessary since the
structure is very simplistic. It would have been useful to have an organization chart if the
structure of the business includes more than two levels of hierarchy (if it goes beyond
owner/manager and employees), a chart can be useful. Notwithstanding, the simple chart
below should suffice for a start for this business.
However, there will be clear breakdown of what each employee does and what he/she is
responsible for. Job description will include the skills required to be successful at that position,
who the position currently reports to, and who within the organization that position regularly
interfaces with. The job descriptions will help the business owner account for all the tasks and
functions required to operate the company and determine whether workloads are reasonable.
As the business grows, it will be necessary to see that one manager is responsible for a specific
operational function and has the necessary employees reporting to him/her.
The business projected growth and expansion plans will be considered under the management
structure of ROGY Car Wash Center and these will include the following:

 Skills that will be required in the future will be determined, particularly management
and technical positions.

 Decisions on current staff members who have the capacity to grow with the company
and assume greater responsibilities will be identified.

 Current employees who have the capabilities of supervising other employees and
growing into managerial roles.

 Develop a career plan for each team member showing that skills they need to develop
in order to advance within the company. This may include additional training or
education.

Finally, gaps between current employees’ capabilities and the skill sets required in the future
will be filled with new hires will be determined. Job descriptions for the positions that will be
created in the upcoming year and beyond will be created. Particular attention to the
experience, education and skills each position requires will come to play. After carefully crafting
the descriptions for these future positions, the business owner should be able to describe the
ideal candidate for each one as demonstrated below:

 Name of employee (leave blank if the position is open)

  Department (sales, marketing, accounting, operations, etc.)

 Position or job title (sales representative, supervisor, account manager)

 Description of duties (a brief phrase or two should be sufficient)

 Location (if you have more than one office)

 Contact information (physical address, phone number or extension, business cell phone
number, work email address)

 Photo (to recognize each other with ease)

Personnel Plan
Our staff is at the core of our carwash business. While our work is to clean cars, we’re first and
foremost a business service, which means interactions between our staff and customers. These
interactions are at the core of our customer service. Customers are looking for an excellent
experience. Therefore, we look at the different techniques we can implement to build a positive
customer experience culture:

 We employ positive and customer-centric staff. our employees are the face of our
carwash business. Apart from offering quality services, how they interact with
customers is the most memorable aspect for any customer’s visit to our carwash.
Customers may not even remember what car detailing service or treatment they chose,
but they’ll remember how our employees treated them and made them feel. The best
staff treat our customers with:

 Politeness and warmth when engaging with each customer

 Care and attentiveness when asking questions and receiving feedback

 Friendly interactions that make customers feel appreciated.

 We embrace a problem-solving approach. Customers should stop at our carwash

because they want a solution for a problem they have. Their vehicles are dirty and may
even need car detailing services to make them look new. Maybe their cars have a funny
smell due to pets or spilled fluids. The floor mats and seats could also be stained and the
interiors worn. The problems may vary, but they all want an excellent cleaning solution.

 We will ensure that our staff are trained to consult with each customer on
service specifications and details to ensure a tailored carwash service.
Since car washing is a seasonal business, with business increasing in the warm sunny months,
and being busier on the weekends than during the week, ROGY Car Wash will rely on both
temporary and part-time help. The company will hire one full-time car wash/detail specialist
and one full-time car wash specialist when it opens for business. Although it will rely on
temporary and part-time help, quality will not be compromised, since all washers and detailers
will receive thorough training. The company will also hire an administrative assistant who will
assist owner with paperwork and act as a receptionist.

XPersonnel Plan

Year 1 Year 2 Year 3

Owner SLL 18,000,000.00 SLL 30,000,000.00 SLL 40,000,000.00
Car Washers SLL 30,240,000.00 SLL 43,312,000.00 SLL 51,174,000.00
Admin/Sales SLL 13,440,000.00 SLL 15,000,000.00 SLL 22,000,000.00
Total People SLL - SLL - SLL -

Total Payroll SLL 61,680,000.00 SLL 88,312,000.00 SLL 113,174,000.00

Marketing strategies
Whether someone like us just starting our carwash marketing strategy or we’re reviewing it for
the upcoming year, it’s important to be constantly aware of the marketing industry, so that we
can build a marketing campaign that will be successful and bring us new customers. To have an
effective marketing campaign, we don’t need to pour in a lot of money, but we do need to
come up with creative marketing ideas. That’s sometimes easier said than done. Here are the
top ideas to we are going to start with for a successful carwash marketing strategy.
1. Develop a loyalty program
There are a lot of retail businesses out there who are now offering loyalty programs to their
customers. These programs are a great way to create engagement with customers and get
them to return to a company time and again. When we build a loyalty program, we need to
think of our goals to make it successful. What are we trying to accomplish? We should not just
create a loyalty program without doing research in advance.
Gathering information about our customers: Who is our audience that’s already coming to our
carwash, and why are they choosing our company? From that information, we can start to
create a plan, brainstorm ideas with the rest of the team and develop the goals that match our
desired outcome. We will make sure these goals are SMART (specific, measurable, achievable,
relevant and time-based). Look at other carwash companies and operators to find out what
makes them successful and what their customers would prefer to see. Seek out feedback from
current customers and employees.
2. Get on social media
Creating a page on different social media platforms is an excellent way to market our company
without spending large amounts of money. Depending on our target audience, we wish to think
about the platform we’re using, because not all of them are the same. A Facebook, Whatsap, or
Instagram page is a really good way to not only promote our business, but also engage with our
local community.
If we have a tight marketing budget, we can also have a Facebook page as a substitute for an
actual website. Designing and setting up a full website takes time and money, so Facebook is a
great alternative to put all the necessary information for our customers and this is what we are
going to focus on at the onset. Then, we will consider if our budget has enough wiggle room to
pay for a targeted ad on social media. This is a really effective way to target ads to individuals
that live in other region.
3. Send customers a free upgrade
Everyone loves freebies, and digital offers from carwash companies are not that common. This
is a good opportunity for our company to leverage this gap in the industry to our benefit. Send
a digital voucher to our customers for a free upgrade, and we’ve opened the door to connect
with them, remind them of our business’ presence and build loyalty.
Our carwash digital coupon is an excellent opportunity to use our email list and make sure our
contacts on it are up-to-date. We can email either a coupon for a free upgrade on an existing
package or offer a free wash with the purchase of another wash.
4. Update your company documents
We will make sure all of our documents for our packages and signage are up-to-date. That
signage is the best way to let our customers and potential clients know that we’re up and
running, and we can showcase our brand identity. If we’re designing our signage for the first
time, we need to figure out the best options for placement, color, features, etc., for maximum
efficiency. The carwash menus need to be appealing, therefore we will make sure we review
the prices to have great offerings.
If we’ve had the same menus for a while, we can also consider adding a new offering to change
things up. we don’t have to put too much time in testing a new option. We will start by showing
the new offering as a promotion or special from the manager. We can also remove an option
from our menu. Sometimes packages on a menu are more successful for revenue results. If we
offer more than four packages, we might risk creating too many options which will confuse or
stress out our clients.
5. Work with the community
A great way to boost a car wash business while also contributing with the local community is by
partnering up with a school or a charity. We will consider implementing a program that would
donate a portion of our revenue to a chosen school or charity in especially the communities we
operate business. This will encourage clients to come to our wash and spend money while also
showcasing us as a positive, contributing member of the community.
6. Be transparent about offerings
We should be upfront in our menu about the consumer brands we use at our carwash. This
transparency creates trust from our customers. We will make sure to share what products and
brands we use, not only on our menu but also on the curb and gate signs. we can also upgrade
our products and broadcast that to our client base.
Marketing can have a huge positive impact on the success of our carwash, and we want to be
always keeping our marketing new and fresh. If we’re struggling with ideas, these six options
should put us on the path to marketing success.
Financial Plan
The following plan outlines the financial development of ROGY Car Wash Center. The business
will be initially financed by a personal investment by Idrissa Rogers and will finance growth
through cash flow. This will mean that the company will grow more slowly than it could, but it
will ensure that Idrissa retains control over the direction of the company. In year three, it is
hoped that the company will be able to open a second location. It is envisioned that an outside
loan or equity funding will be sought at that time.
Important Assumptions

The financial projections for ROGY Car Wash Center are based on the
following assumptions. These assumptions are thought to be quite
traditional, as are the financial forecasts.XGeneral Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

Projected Cash Flow

The following Cash Flow table illustrates that if ROGY Car Wash meets projected sales, it will have
positive cash flow after half a year of operations.XPro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales SLL SLL SLL
93,330,000.00 132,038,000.00 197,374,000.00
Cash from Receivables SLL SLL SLL
13,097,000.00 21,902,000.00 32,470,000.00
Subtotal Cash from Operations SLL SLL SLL
106,427,000.00 153,940,000.00 229,843,000.00

Additional Cash Received

Sales Tax, VAT, GST Received SLL SLL SLL
- - -
New Current Borrowing SLL SLL SLL
- - -
New Other Liabilities (interest-free) SLL SLL SLL
- - -
New Long-term Liabilities SLL SLL SLL
- - -
Sales of Other Current Assets SLL SLL SLL
- - -
Sales of Long-term Assets SLL SLL SLL
- - -
New Investment Received SLL SLL SLL
- - -
Subtotal Cash Received SLL SLL SLL
106,427,000.00 153,940,000.00 229,843,000.00

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations
Cash Spending SLL SLL SLL
61,680,000.00 88,312,000.00 113,174,000.00
Bill Payments SLL SLL SLL
33,052,000.00 47,699,000.00 68,418,000.00
Subtotal Spent on Operations SLL SLL SLL
94,732,000.00 136,011,000.00 181,592,000.00

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out SLL SLL SLL
- - -
Principal Repayment of Current SLL SLL SLL
Borrowing - - -
Other Liabilities Principal Repayment SLL SLL SLL
- - -
Long-term Liabilities Principal SLL SLL SLL
Repayment - - -
Purchase Other Current Assets SLL SLL SLL
- - -
Purchase Long-term Assets SLL SLL SLL
- - -
Dividends SLL SLL SLL
- - -
Subtotal Cash Spent SLL SLL SLL
94,732,000.00 136,011,000.00 181,592,000.00

Net Cash Flow SLL SLL SLL

11,695,000.00 17,929,000.00 48,251,000.00
Cash Balance SLL SLL SLL
20,395,000.00 38,324,000.00 86,575,000.00
Chart: Cash
 Cash
25,000,000 SLL

20,000,000 SLL

15,000,000 SLL

Net Cash Flow

Cash Balance
10,000,000 SLL

5,000,000 SLL

0 SLL
M

M
on

on

on

on

on

on

on

on

on

on

on

on
th

th

th

th

th

th

th
th

th

th

th

th
1

10

11

12

-5,000,000 SLL
Chart: Break-even Analysis

XBreak-even Analysis

Monthly Units Break-even 423

Monthly Revenue Break-even SLL 7,974,000

Assumptions:
Average Per-Unit Revenue SLL 18.87
Average Per-Unit Variable Cost SLL 0.79
Estimated Monthly Fixed Cost SLL 7,641,000

Projected Profit and Loss

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
4,000,000 SLL

3,000,000 SLL

2,000,000 SLL

1,000,000 SLL

0 SLL
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12

-1,000,000 SLL

-2,000,000 SLL

-3,000,000 SLL

Chart: Profit Yearly

 Net Profit

50,000,000 SLL

45,000,000 SLL

40,000,000 SLL

35,000,000 SLL

30,000,000 SLL

25,000,000 SLL

20,000,000 SLL

15,000,000 SLL

10,000,000 SLL

5,000,000 SLL

0 SLL
Year 1 Year 2 Year 3
 Gross Margin

250,000,000 SLL

200,000,000 SLL

150,000,000 SLL

100,000,000 SLL

50,000,000 SLL

0 SLL
Year 1 Year 2 Year 3
XPro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales SLL SLL SLL
109,800,000.00 155,339,000.00 232,204,000.00
Direct Cost of Sales SLL SLL SLL
4,583,000.00 6,994,000.00 11,047,000.00
Other SLL SLL SLL
- - -
Total Cost of Sales SLL SLL SLL
4,583,000.00 6,994,000.00 11,047,000.00

Gross Margin SLL SLL SLL

105,218,000.00 148,345,000.00 221,157,000.00
Gross Margin % SLL SLL SLL
0.96 0.96 0.95

Expenses
Payroll SLL SLL SLL
61,680,000.00 88,312,000.00 113,174,000.00
Sales and Marketing and Other SLL SLL SLL
Expenses 2,600,000.00 1,550,000.00 1,700,000.00
Depreciation SLL SLL SLL
2,070,000.00 2,070,000.00 2,070,000.00
Leased Equipment SLL SLL SLL
- - -
Utilities SLL SLL SLL
3,325,000.00 3,500,000.00 3,750,000.00
Insurance SLL SLL SLL
1,800,000.00 1,800,000.00 1,800,000.00
Rent SLL SLL SLL
4,800,000.00 5,500,000.00 6,000,000.00
Payroll Taxes SLL SLL SLL
15,420,000.00 22,078,000.00 28,294,000.00
Other SLL SLL SLL
- - -

Total Operating Expenses SLL SLL SLL

91,695,000.00 124,810,000.00 156,788,000.00

Profit Before Interest and Taxes SLL SLL SLL

13,523,000.00 23,535,000.00 64,370,000.00
EBITDA SLL SLL SLL
 15,592,000.00 25,605,000.00 66,440,000.00
Interest Expense SLL SLL SLL
- - -
Taxes Incurred SLL SLL SLL
3,204,000.00 5,884,000.00 16,361,000.00

Net Profit SLL SLL SLL

10,318,000.00 17,651,000.00 48,009,000.00
Net Profit/Sales SLL SLL SLL
0.09 0.11 0.21

XPro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash SLL SLL SLL
20,395,000.00 38,324.00 86,575.00
Accounts Receivable SLL SLL SLL
3,373,000.00 4,772.00 7,133.00
Inventory SLL SLL SLL
668,000.00 1,958.00 3,200.00
Other Current Assets SLL SLL SLL
1,000,000.00 1,000.00 1,000.00
Total Current Assets SLL SLL SLL
25,435,000.00 46,054.00 97,908.00

Long-term Assets
Long-term Assets SLL SLL SLL
10,000,000.00 10,000,000.00 10,000,000.00
Accumulated SLL SLL SLL
Depreciation 2,070,000.00 4,140,000.00 6,210,000.00
Total Long-term Assets SLL SLL SLL
7,930,000.00 5,860,000.00 3,790,000.00
Total Assets SLL SLL SLL
33,365,000.00 51,914,000.00 101,698,000.00

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable SLL SLL SLL
3,097,000.00 3,994,000.00 5,769,000.00
Current Borrowing SLL SLL SLL
- - -
Other Current Liabilities SLL SLL SLL
- - -
Subtotal Current SLL SLL SLL
Liabilities 3,097,000.00 3,994,000.00 5,769,000.00

Long-term Liabilities SLL SLL SLL

- - -
Total Liabilities SLL SLL SLL
3,097,000.00 3,994,000.00 5,769.00

Paid-in Capital SLL SLL SLL

30,000,000.00 30,000,000.00 30,000,000.00
Retained Earnings SLL SLL SLL
(10,050,000.00) 268,000.00 17,919,000.00
Earnings SLL SLL SLL
10,318,000.00 17,651,000.00 48,009,000.00
Total Capital SLL SLL SLL
30,268,000.00 47,919,000.00 95,929,000.00
Total Liabilities and SLL SLL SLL
Capital 33,365,000.00 51,914,000.00 101,698,000.00

Net Worth SLL SLL SLL

30,268,000.00 47,919,000.00 95,929,000.00

Business RatiosXRatio Analysis

Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 41.47% 49.48% 3.00%
         
Percent of Total Assets        

XAccounts Receivable 10.11% 9.19% 7.01% 8.70%

Inventory 2.00% 3.77% 3.15% 9.50%
Other Current Assets 3.00% 1.93% 0.98% 26.40%
Total Current Assets 76.23% 88.71% 96.27% 44.60%
Long-term Assets 23.77% 11.29% 3.73% 55.40%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 9.28% 7.69% 5.67% 29.30%

Long-term Liabilities 0.00% 0.00% 0.00% 27.80%
Total Liabilities 9.28% 7.69% 5.67% 57.10%
Net Worth 90.72% 92.31% 94.33% 42.90%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.83% 95.50% 95.24% 0.00%
Selling, General & Administrative 86.59% 84.13% 74.45% 68.20%
Expenses
Advertising Expenses 0.91% 0.74% 0.56% 1.50%
Profit Before Interest and Taxes 12.32% 15.15% 27.72% 2.70%

Main Ratios
Current 8.21 11.53 16.97 1.53
Quick 8 11.04 16.42 0.88
Total Debt to Total Assets 9.28% 7.69% 5.67% 57.10%
Pre-tax Return on Net Worth 44.68% 49.11% 67.10% 3.40%
Pre-tax Return on Assets 40.53% 45.33% 63.30% 8.00%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 9.40% 11.36% 20.68% n.a
Return on Equity 34.09% 36.83% 50.05% n.a

Activity Ratios
Accounts Receivable Turnover 4.88 4.88 4.88 n.a
Collection Days 57 64 62 n.a
Inventory Turnover 5.45 5.33 4.28 n.a
Accounts Payable Turnover 11.67 12.17 12.17 n.a
Payment Days 27 27 25 n.a
Total Asset Turnover 3.29 2.99 2.28 n.a

Debt Ratios
Debt to Net Worth 0.1 0.08 0.06 n.a
Current Liab. to Liab. 1 1 1 n.a
Liquidity Ratios
Net Working Capital $22,338 $42,059 $92,139 n.a
Interest Coverage 0 0 0 n.a

Additional Ratios
Assets to Sales 0.3 0.33 0.44 n.a
Current Debt/Total Assets 9% 8% 6% n.a
Acid Test 6.91 9.85 15.18 n.a
Sales/Net Worth 3.63 3.24 2.42 n.a
Dividend Payout 0 0 0 n.a
Appendix
Table: Sales Forecast

XSales
Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Unit Sales
Full Wash 0% 90 130 170 190 190 185 135 135 120
Exterior 0% 90 130 185 220 230 220 180 170 150
Wash
Interior 0% 40 50 50 55 60 65 70 80 80
Clean
End User 0% 3 5 7 10 12 12 14 9 11
Detail
Business 0% 25 40 55 60 60 55 55 55 55
Fleet
Washes
Car 0% 15 17 20 26 32 40 56 45 56
Dealership
Details
Total Unit 263 372 487 561 584 577 510 494 472
Sales

Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Full Wash SLL SLL SLL SLL SLL SLL SLL SLL
150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000.00 150,000
Exterior SLL SLL SLL SLL SLL SLL SLL SLL
Wash 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.00 90,000.
Interior SLL SLL SLL SLL SLL SLL SLL SLL
Clean 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 80,000.
End User SLL SLL SLL SLL SLL SLL SLL SLL
Detail 1,400,000.0 1,400,000.0 1,400,000.0 1,400,000.0 1,400,000.0 1,400,000.00 1,400,000.00 1,400,000.0 1,400,0
0 0 0 0 0 0
Business SLL SLL SLL SLL SLL SLL SLL SLL
Fleet 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000
Washes
Car SLL SLL SLL SLL SLL SLL SLL SLL
Dealership 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00 700,000
Details

Sales
Full Wash SLL SLL SLL SLL SLL SLL SLL SLL
1,350.00 1,950,000.0 2,550,000.0
2,850,000.0 2,850,000.0 2,775,000.00 2,025,000.00 2,025,000.0 1,800,0
0 0 0 0 0
Exterior SLL SLL SLL SLL SLL SLL SLL SLL
Wash 810.00 1,170,000.0 1,665,000.0
1,980,000.0 2,070,000.0 1,980,000.00 1,620,000.00 1,530,000.0 1,350,0
0 0 0 0 0
Interior SLL SLL SLL SLL SLL SLL SLL SLL
Clean 320.00 400,000.00 400,000.00
440,000.00 480,000.00 520,000.00 560,000.00 640,000.00 640,000
End User SLL SLL SLL SLL SLL SLL SLL SLL
Detail 420.00 700,000.00 980,000.00
1,400,000.0 1,680,000.0 1,680,000.00 1,960,000.00 1,260,000.0 1,540,0
0 0 0
Business SLL SLL SLL SLL SLL SLL SLL SLL
Fleet 250.00 400,000.00 550,000.00 600,000.00 600,000.00 550,000.00 550,000.00 550,000.00 550,000
Washes
Car SLL SLL SLL SLL SLL SLL SLL SLL
Dealership 1,050.00 1,190,000.0 1,400,000.0 1,820,000.0 2,240,000.0 2,800,000.00 3,920,000.00 3,150,000.0 3,920,0
Details 0 0 0 0 0
Total Sales SLL SLL SLL SLL SLL SLL SLL SLL
4,200.00 5,810,000.0 7,545,000.0 9,090,000.0 9,920,000.0 10,305,000.0 10,635,000.0 9,155,000.0 9,800,0
0 0 0 0 0 0 0
Direct Unit Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Costs
Full Wash 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
% 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.0
Exterior 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
Wash % 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00 4,000.0
Interior 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
Clean % 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.0
End User 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
Detail % 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.
Business 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
Fleet % 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.0
Washes
Car 0.00 SLL SLL SLL SLL SLL SLL SLL SLL
Dealership % 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 30,000.
Details

Direct Cost
of Sales
Full Wash SLL SLL SLL SLL SLL SLL SLL SLL
63,000.00 91,000.00 119,000.00 133,000.00 133,000.00 130,000.00 95,000.00 95,000.00 84,000.
Exterior SLL SLL SLL SLL SLL SLL SLL SLL
Wash 36,000.00 52,000.00 74,000.00 88,000.00 92,000.00 88,000.00 72,000.00 68,000.00 60,000.
Interior SLL SLL SLL SLL SLL SLL SLL SLL
Clean 12,000.00 15,000.00 15,000.00 17,000.00 18,000.00 20,000.00 21,000.00 24,000.00 24,000.
End User SLL SLL SLL SLL SLL SLL SLL SLL
Detail 9,000.00 15,000.00 21,000.00 30,000.00 36,000.00 36,000.00 42,000.00 27,000.00 33,000.
Business SLL SLL SLL SLL SLL SLL SLL SLL
Fleet 18,000.00 28,000.00 39,000.00 42,000.00 42,000.00 39,000.00 39,000.00 39,000.00 39,000.
Washes
Car SLL SLL SLL SLL SLL SLL SLL SLL
Dealership 45,000.00 51,000.00 60,000.00 78,000.00 96,000.00 120,000.00 168,000.00 135,000.00 168,000
Details
Subtotal SLL SLL SLL SLL SLL SLL SLL SLL
Direct Cost 183,000.00 252,000.00 328,000.00 388,000.00 417,000.00 432,000.00 436,000.00 387,000.00 408,000
of Sales
Table:
Personnel

Personnel
Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month
Owner 0% SLL SLL SLL SLL SLL SLL SLL SLL
1,500,000.0 1,500,000.0 1,500,000.0 1,500,000.0 1,500,000.0 1,500,000.00 1,500,000.00 1,500,000.0 15,000.
0 0 0 0 0 0
Car 0% SLL SLL SLL SLL SLL SLL SLL SLL
Washers 2,240,000.0 2,240,000.0 3,360,000.0 3,360,000.0 3,360,000.0 2,240,000.00 2,240,000.00 2,240,000.0 2,240,0
0 0 0 0 0 0
Admin/Sale 0% SLL SLL SLL SLL SLL SLL SLL SLL
s 1,120,000.0 1,120,000.0 1,120,000.0 1,120,000.0 1,120,000.0 1,120,000.00 1,120,000.00 1,120,000.0 1,120,0
0 0 0 0 0 0
Total SLL SLL SLL SLL SLL SLL SLL SLL
People - - - - - - - - -

Total SLL SLL SLL SLL SLL SLL SLL SLL

Payroll 4,860,000.0 4,860,000.0 5,980,000.0 5,980,000.0 5,980,000.0 4,860,000.00 4,860,000.00 4,860,000.0 4,860,0
0 0 0 0 0 0

XGeneral
Assumptions
Mont Mont Mont Mont Mont Mont Mont Mont Mont Month Month Month
h1 h2 h3 h4 h5 h6 h7 h8 h9 10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00% 10.00% 10.00%
Rate % % % % % % % % %
Long-term Interest Rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00% 10.00% 10.00%
% % % % % % % % %
Tax Rate 30.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00% 25.00% 25.00%
% % % % % % % % %
Other 0 0 0 0 0 0 0 0 0 0 0 0