View
234
Download
0
Category
Preview:
Citation preview
8/8/2019 DPR Cms Group 4 Pptx
1/39
B U S I N E S S I D E AB U S I N E S S I D E A
8/8/2019 DPR Cms Group 4 Pptx
2/39
THE BUSINESSTHE BUSINESS
Soapy Rides will be providing customers with three services:
exterior car washing, interior cleaning, and detailing. Soapy
Rides has no true competitors that are trying to offer a high
quality service for a reasonable rate.
Soapy Rides' 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.
8/8/2019 DPR Cms Group 4 Pptx
3/39
THE CUSTOMERS
Soapy Rides will target three main groups of customers:
Individual car owner and leasers,
Car dealerships, and
Local businesses.
8/8/2019 DPR Cms Group 4 Pptx
4/39
MANAGEMENT
The company soapy rides has a very strong, experienced andprofessional management team. With each member working in theirarea of specialization we have every aspect of the business covered.
Jaspreet Singh will be: Owner/Operator with 35% ownership and will beresponsible for buying, customer sales and fittings.
Varun narain will be: Co-owner with 26% ownership and will act asmerchandising consultant, employee training and part-time sales.
Gaurav Mehra will be: Co-owner with 19% ownership and will act asOperation Manager responsible for payable and receivables, inventorycontrol, in store promotions, billing and sales.
Rahul Jha will be: co-owner and working partner with 20% ownershipand will act as CRM Manager and Procurement.
8/8/2019 DPR Cms Group 4 Pptx
5/39
Soapy Rides is positioning itself as the premier hand car wash
serving the South Delhi area. We have forecasted a 20% market
share.
By year three the business will have developed a respectable yearly
net profit.
1200000
1500000
2300000
1100000
1400000
2200000
200000 250000
400000
0
500000
1000000
1500000
2000000
2500000
year 1 year 2 year 3
sales
gross margin
net profit
8/8/2019 DPR Cms Group 4 Pptx
6/39
OBJECTIVES
The objectives for Soapy Rides Car Washand Detail Service are:
To be viewed as a premium car wash
and detail service in South Delhi.
Maintain a very high gross profit margin.
Maintain a modest, steadily growing net
profit margin.
Expand to two locations after third year
of operation.
8/8/2019 DPR Cms Group 4 Pptx
7/39
MISSION
The mission of Soapy Ride is to
provide top-quality washing and detail
service for luxury car owners in South
Delhi will work to keep employees
satisfied in order to maintain impeccable
customer service.
8/8/2019 DPR Cms Group 4 Pptx
8/39
COMPANY SUMMARY
Company Ownership
The company will be solely owned by
RAHUL JHA ,RAHUL JHA ,
VARUN NARAIN,VARUN NARAIN,
GAURAV MEHRA,GAURAV MEHRA,
JASPREET SINGHJASPREET SINGH, of the prominent
CMS family.
We felt NFC, Delhi would be a perfectlocation for a car wash service.
8/8/2019 DPR Cms Group 4 Pptx
9/39
0
50000
100000
150000
200000
250000
300000
EXPENCES ASSETS INVESTMENTS LOANS
90000
200000
290000
0
STA RT UP
RS
8/8/2019 DPR Cms Group 4 Pptx
10/39
S t a r t - u p
R e q u i r e m e n t s
S t a r t - u p E x p e n s e sL e g a l Rs5000
S t a t i o n e r y e t c . Rs4000
B r o c h u r e s Rs4500
C o n s u l t a n t s Rs00
I n s u r a n c e Rs2000
R e n t Rs1,2000
R e s e a r c h a n d D e v e l o p m e n t Rs3000
E x p e n s e d E q u i p m e n t Rs4,1000
S i g n s Rs7000
B u i l d i n g M a t e r i a l s Rs1,2000
B u i l d i n g L a b o r Rs1,0000
To t a l S t a r t - u p E x p e n s e s Rs10,0500
S t a r t - u p A s s e t s
C a s h R e q u i r e d Rs8,7000
S t a r t - u p I n v e n t o r y Rs2500
O t h e r C u r r e n t A s s e t s Rs1,0000
L o n g - t e r m A s s e t s Rs10,0000
To t a l A s s e t s Rs19,9500
To t a l R e q u i r e m e n t s Rs30,0000
8/8/2019 DPR Cms Group 4 Pptx
11/39
Start-up Funding
Start-up Expenses to Fund Rs10,0500
Start-up Assets to Fund Rs19,9500
Total Funding Required Rs30,0000
Assets
Non-cash Assets from Start-up Rs11,2500
Cash Requirements from Start-up Rs8,7000
Additional Cash Raised Rs00
Cash Balance on Starting Date Rs8,7000
Total Assets Rs19,9500
8/8/2019 DPR Cms Group 4 Pptx
12/39
L i a b i l i t i e s a n d C a p i t a l
L i a b i l i t i e s
Current Borrowing Rs0
Long-term Liabilities Rs0
Accounts Payable (Outstanding Bills) Rs0
Other Current Liabilities (interest-free) Rs0
Total Liabilities Rs0
C a p i t a l
Planned Investment
Investor 1 Rs30,000
Investor 2 Rs0
Other Rs0
Additional Investment Requirement Rs0
Total Planned Investment Rs30,0000
Loss at Start-up (Start-up Expenses) (Rs10,0500)
Total Capital Rs19,9500
Total Capital and Liabilities Rs19,9500
Total Fundin Rs30,0000
8/8/2019 DPR Cms Group 4 Pptx
13/39
SERVICES
Soapy Rides will provide three services to
its customers:
Car washing (exterior)
Car cleaning (interior)
Car detailing
8/8/2019 DPR Cms Group 4 Pptx
14/39
Market Analysis Summary
The car wash will be based in NFC,
NEW DELHI. This area has a number of
benefits in terms of the market that it will
provide for the business
Many people in the neighborhood own
and/or lease new cars and place great
value on their cars and how they look.
8/8/2019 DPR Cms Group 4 Pptx
15/39
Market Segmentation
New carowners
Older luxury carowners
Sports carowners Lifetime owners
Dealerships
Local businesses
8/8/2019 DPR Cms Group 4 Pptx
16/39
8/8/2019 DPR Cms Group 4 Pptx
17/39
8/8/2019 DPR Cms Group 4 Pptx
18/39
TARGETMARKETSEGMENT
STRATEGY
Market Ana lys isYear 1 Year 2 Year 3 Year 4 Year 5
Potential
CustomersGrowth CAGR
New Car
Owners10% 7,200 7,920 8,712 9,583 10,541 10.00%
Older
Luxury Car
Owners
15% 12,500 14,375 16,531 19,011 21,863 15.00%
Sports Car
Owners15% 6,500 7,475 8,596 9,885 11,368 15.00%
Lifetime
Owners 10% 17,000 18,700 20,570 22,627 24,890 10.00%
New and
Used Car
Dealership
s
7% 9 10 11 12 13 9.63%
Total 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%
8/8/2019 DPR Cms Group 4 Pptx
19/39
TARGETMARKETSEGMENT
STRATEGY The strategy behind Soapy Rides target segmentation is to
attract customers who will be repeat users and will frequent thebusiness in the typically quiet times for a car wash business
Soapy Rides will target people who will tend not to be restrictedto 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 bytypical work schedules so will be able to frequent the car washduring the week.
Dealerships will need cars detailed and washed regardless of
the time of the day and week. This will supply a constant flow oftraffic.
Businesses will need their fleet cars washed during the weekduring regular business hours.
8/8/2019 DPR Cms Group 4 Pptx
20/39
STRATEG AND
IMPLEMENTATION SUMMARY
The key differentiator for Soapy Rides Car Wash is our team and
business and personal connections within the NFC 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.
Competitive Edge
Sales Strategy
Sales Forecast
8/8/2019 DPR Cms Group 4 Pptx
21/39
0
500000
1000000
1500000
2000000
2500000
year 1 year 2 year 3
car delearship details
business fleetwashes
end user detail
interior wash
exterior wash
full wash
8/8/2019 DPR Cms Group 4 Pptx
22/39
Sales Forecas t
Year 1 Year 2 Year 3
Unit SalesFull 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 1,384Car Dealership Details 494 642 963
Total Unit Sales 5,818 7,712 10,376
Unit Prices Year 1 Year 2 Year 3
Full Wash Rs150.00 Rs150.00 Rs150.00
Exterior Wash Rs90.00 Rs100.00 Rs120.00
Interior Clean Rs80.00 Rs90.00 Rs90.00
End User Detail Rs1400.00 Rs1450.00 Rs1500.00
Business Fleet Washes Rs100.00 Rs100.00 Rs100.00
Car Dealership Details Rs700.00 Rs750.00 Rs800.00
8/8/2019 DPR Cms Group 4 Pptx
23/39
Sales
Full Wash Rs26,4000 Rs34,3200 Rs44,6160
Exterior Wash Rs18,4500 Rs26,6500 Rs41,5740
Interior Clean Rs6,1600 Rs9,0090 Rs11,7120
End User Detail Rs18,0600 Rs27,9850 Rs43,4250
Business Fleet Washes Rs6,1500 Rs9,2250 Rs13,8380
Car Dealership Details Rs34,5800 Rs48,1500 Rs77,0400
Total Sales Rs109,8000 Rs155,3390 Rs232,2040
8/8/2019 DPR Cms Group 4 Pptx
24/39
Direct Unit Costs Year 1 Year 2 Year 3
Full Wash Rs07 Rs08 Rs09.0
Exterior Wash Rs04 Rs04.5 Rs05.0Interior Clean Rs03 Rs03.5 Rs04.0
End User Detail Rs30.00 Rs35.0 Rs40.00
Business Fleet Washes Rs07 Rs07.5 Rs08
Car Dealership Details Rs30 Rs35.0 Rs40.00
Direct Cost of Sales
Full Wash Rs1,2320 Rs1,8300 Rs2,6770
Exterior Wash Rs8200 Rs1,1990 Rs1,7320
Interior Clean Rs2310 Rs3500 Rs5210End User Detail Rs3870 Rs6760 Rs1,1580
Business Fleet Washes Rs4310 Rs6920 Rs1,1070
Car Dealership Details Rs1,4820 Rs2,2470 Rs3,8520
Subtotal Direct Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470
8/8/2019 DPR Cms Group 4 Pptx
25/39
8/8/2019 DPR Cms Group 4 Pptx
26/39
-10000
-5000
0
5000
10000
0 70 140 210 280 350 420 490 560 630 700 770
Break even analysis
Break-even Analysis
Monthly Units Break-even 423
Monthly Revenue Break-even Rs7,974
Assumptions:
Average Per-Unit Revenue Rs18.87
Average Per-Unit Variable Cost Rs0.79
Estimated Monthly Fixed Cost Rs7,641
8/8/2019 DPR Cms Group 4 Pptx
27/39
PROJECTED PROFITAND LOSS
0
100000
200000
300000
400000
500000
600000
year 1 year 2 year 3
profit yearly
profit yearly
8/8/2019 DPR Cms Group 4 Pptx
28/39
0
500000
1000000
1500000
2000000
2500000
year 1 year 2 year 3
Gross margin
gross margin
8/8/2019 DPR Cms Group 4 Pptx
29/39
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs109,8000 Rs155,3390 Rs232,2040
Direct Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470
Other Rs00 Rs00 Rs00
Total Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470
Gross Margin Rs105,2180 Rs148,3450 Rs221,1570
Gross Margin % 95.83% 95.50% 95.24%
8/8/2019 DPR Cms Group 4 Pptx
30/39
Expenses
Payroll Rs61,6800 Rs88,3120 Rs113,1740
Sales and Marketing and Other
ExpensesRs2,6000 Rs1,5500 Rs1,7000
Depreciation Rs2,0700 Rs2,0700 Rs2,0700
Leased Equipment Rs00 Rs00 Rs00
Utilities Rs3,3250 Rs3,5000 Rs3,7500
Insurance Rs1,8000 Rs1,8000 Rs1,8000
Rent Rs4,8000 Rs5,5000 Rs6,0000
Payroll Taxes Rs15,4200 Rs22,0780 Rs28,2940Other Rs0 Rs00 Rs00
Total Operating Expenses Rs91,6950 Rs124,8100 Rs156,7880
Profit BeforeInterest and
Taxes Rs13,5230 Rs23,5350 Rs64,3700
EBITDA Rs15,5920 Rs25,6050 Rs66,4400
Interest Expense Rs0 Rs0 Rs0
Taxes Incurred Rs3,2040 Rs5,8840 Rs16,3610
Net Profit Rs10,3180 Rs17,6510 Rs48,009
Net Profit/Sales 9.40% 11.36% 20.68%
8/8/2019 DPR Cms Group 4 Pptx
31/39
PROJECTED CASHFLOW
-50000
0
50000
100000
150000
200000
t fl
b l
8/8/2019 DPR Cms Group 4 Pptx
32/39
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales Rs93,3300 Rs132,0380 Rs197,3740
Cash from Receivables Rs13,0970 Rs21,9020 Rs32,4700
Subtotal Cash from Operations Rs106,4270 Rs153,9400 Rs229,8430
Additional Cash Received
Sales Tax, VAT, HST/GST Received Rs0 Rs0 Rs0
New Current Borrowing Rs0 Rs0 Rs0
New Other Liabilities (interest-free) Rs0 Rs0 Rs0New Long-term Liabilities Rs0 Rs0 Rs0
Sales of Other Current Assets Rs0 Rs0 Rs0
Sales of Long-term Assets Rs0 Rs0 Rs0
New Investment Received Rs0 Rs00 Rs0
Subtotal Cash Received Rs106,4270 Rs153,9400 Rs229,8430
8/8/2019 DPR Cms Group 4 Pptx
33/39
8/8/2019 DPR Cms Group 4 Pptx
34/39
Projected Balance Sheet
Pro Forma Balance SheetYear 1 Year 2 Year 3
Assets
Current Assets
Cash Rs20,3950 Rs39,1860 Rs88,1120Accounts Receivable Rs3,3730 Rs4,7720 Rs7,1330
Inventory Rs6680 Rs1,0190 Rs1,6090
Other Current Assets Rs1,0000 Rs1,0000 Rs1,0000
Total Current Assets Rs25,4350 Rs45,9760 Rs97,8540
Long-term Assets
Long-term Assets Rs10,0000 Rs10,0000 Rs10,0000
Accumulated Depreciation Rs2,0700 Rs4,1400 Rs6,2100
Total Long-term Assets Rs7,9300 Rs5,8600 Rs3,7900
Total Assets Rs33,3650 Rs51,8360 Rs101,6440
8/8/2019 DPR Cms Group 4 Pptx
35/39
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable Rs3,0970 Rs3,9170 Rs5,7160
Current Borrowing Rs0 Rs0 Rs0
Other Current Liabilities Rs0 Rs0 Rs0
Subtotal Current Liabilities Rs3,0970 Rs3,9170 Rs5,7160
Long-term Liabilities Rs0 Rs0 Rs0
Total Liabilities Rs3,0970 Rs3,9170 Rs5,7160
Paid-in Capital Rs30,0000 Rs30,0000 Rs30,0000
Retained Earnings (Rs10,0500) Rs2680 Rs17,9190
Earnings Rs10,3180 Rs17,6510 Rs48,0090
Total Capital Rs30,2680 Rs47,9190 Rs95,9290
Total Liabilities and Capital Rs33,3650 Rs51,8360 Rs101,6440
Net Worth Rs30,2680 Rs47,9190 Rs95,9290
8/8/2019 DPR Cms Group 4 Pptx
36/39
BUSINESS RATIOS
Ratio Analysis
Year 1 Year 2 Year 3Industry
ProfileSales Growth 0.00% 41.47% 49.48% 3.00%
Percent ofTotal Assets
Accounts Receivable 10.11% 9.21% 7.02% 8.70%
Inventory 2.00% 1.97% 1.58% 9.50%
Other Current Assets 3.00% 1.93% 0.98% 26.40%
Total Current Assets 76.23% 88.69% 96.27% 44.60%
Long-term Assets 23.77% 11.31% 3.73% 55.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 9.28% 7.56% 5.62% 29.30%
Long-term Liabilities 0.00% 0.00% 0.00% 27.80%
Total Liabilities 9.28% 7.56% 5.62% 57.10%
Net Worth 90.72% 92.44% 94.38% 42.90%
Percent of Sales
8/8/2019 DPR Cms Group 4 Pptx
37/39
Gross Margin 95.83% 95.50% 95.24% 0.00%
Selling, General & Administrative Expenses 86.59% 84.13% 74.45% 68.20%
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 11.74 17.12 1.53
Quick 8.00 11.48 16.84 0.88
Total Debt to Total Assets 9.28% 7.56% 5.62% 57.10%
Pre-tax Return on Net Worth 44.68% 49.11% 67.10% 3.40%
Pre-tax Return on Assets 40.53% 45.40% 63.33% 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 8.30 8.41 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 3.00 2.28 n.a
8/8/2019 DPR Cms Group 4 Pptx
38/39
Debt Ratios
Debt to Net Worth 0.10 0.08 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital Rs22,338 Rs42,059 Rs92,139 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.30 0.33 0.44 n.a
Current Debt/Total Assets 9% 8% 6% n.a
Acid Test 6.91 10.26 15.59 n.a
Sales/Net Worth 3.63 3.24 2.42 n.a
Dividend Payout 0.00 0.00 0.00 n.a
8/8/2019 DPR Cms Group 4 Pptx
39/39
THANK YOUTHANK YOU
Recommended