Business Plan Mark56

8/9/2019 Business Plan Mark56

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BUSINESS PLAN

EXECUTIVE SUMMARY

MARK 56 home car wash is a service provider for a quality car wash at

peoples door step. This service would be available for the residents of the

area of double road Rawalpindi and adjacent Islamabad residential areas.

Currently there is no such car wash service available in Islamabad or

Rawalpindi. This plan will serve as a road map to illustrate the capacity of our

services and profits may be utilized to expand the service in the executive

class residential areas of Islamabad. This plan would be basic guideline for

the owners to evaluate their business performance and decision making toaccomplish their mission and objectives in short and long term.

This service would be focused on satisfying the needs of the customers at

their door step any time. The young educated well mannered staff of Mark

56 home car wash and a unique way to market them would definitely give it

and extra edge over the existing competitors in this service. This is a basic

need for the people who have cars/vehicles and they would not feel

comfortable for getting their car washed and cleaned at a gas/petrol station,

waiting for a long time and wasting their precious time. We overcome this

problem of our customers by being at there door step with a reliable teamwhich would really help us to succeed.

BUSINESS

This new business enterprise will provide home service of cleaning, washing

and polishing; interior and exterior of car, trucks, motor bikes, jeeps, 4x4,

tractors and any other vehicle. It is found that people always want their

vehicle to be neat, tidy and having a polished surface. A majority of the

population owning a vehicle are willing to pay even more than what is

charged for the service but there are two major factors that makes thevehicles untidy. First of all the roads of the area; as soon as there is a rain

shower, mud deposits on and near the roads is wedged with the moving

traffic, making the vehicle untidy. Second reason is the service station, they

do provide a satisfactory car wash service but people are very busy and no

one is willing to wait in the lines at the service station to get there vehicle

clean.

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Now any one in need of a wash service, can call us our contact number

(helpline) from anywhere (home/office/shop) and while the owner is busy in

his/her daily activities his/her vehicle will get the wash service desired by the

owner.

VISION

Our vision is to be one of a major role model for young generation

as the servants of society with creative and unique ideas to make

common mans life easy.

This plan is the step towards changing the perspective of the society to

motivate and encourage them to be a part of nation building by holding

themselves socially responsible.

MISSION

The mission ofMark 56 home car wash is to provide top-quality washing

and detail service for all type of car/vehicle owners in Rawalpindi and

Islamabad with focusing all of its energy and resources on customer

satisfaction and value, while providing the team a reward of their hard work

and unique concept along with the best retunes to our investors.

OBJECTIVES

The main objectives of Mark 56 home car wash are as follow:

The Car Washs mission is to become the recognized leader in itstargeted market for car washing.

Achieve the break even within the initial stages of the business (as the

investment is not very high).

Attract more than 100 customers within three months.

Use the profits after a year to buy new equipment and broaden the

marketing plan.

Within 1 years of the business, expand the business to elite

residential areas of Islamabad.

When our business is in the phase of increasing profits; take part in

social campaigns of motivating young students to play a role in nation

building and social responsibility for environment cleanliness. As our

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business is related to cleanliness we want to promote this concept

throughout the society.

BUSINESS SUMMARY

MARK 56 home car wash is a new and unique home service provided by

young motivated and customer friendly team. It would help the people to get

their car washed without any tension or fatigue at their homes. The staff of

the company feels them self socially responsible for creating a friendly

environment for the society where citizens specially the young generation

can be motivated to help each other. The focus of our company is to satisfy

the customer needs at minimum cost with providing high quality, effective

and efficient service.

OWNERSHIP AND THE MANAGEMENT

Mark 56 car home wash is a private business started by a young energetic

team. The entrepreneur of the business is Danish Sultan who would also

perform the duties of a finance manager that include all the decisions of

pricing, purchasing and investment etc. Other associates include Hassan

Ashfaq who would act as operations manager and look after the operationand the performance of team. Umer Siddiq would act as the marketing

manager and finally Qasim Farooq would be relationship manager.

STAFF

All the 4 members listed in the ownership will act as the workers. Team A will

consist of Danish and Hassan where as Team B will be comprise of Umar and

Qasim. Staff having experience and belonging from the youth can be a plus

point for car washing business. The teams are not just good in washing but

they also do it effectively and rapidly. The aim will be that the will be totalsatisfaction of the customer with our services. As this is a home car washing

business so it is important that staff should know how to deal with the

customers.

SIZE OF THE BUSINESS

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We will start the business at a small level. We will follow guerilla

marketing principles as we will employee low amount of investment

budget to a targeted audience/ customer with unconventional and creative

services.

Estimated Income is showing positive indications and the surplus/profit willbe utilized for the expansion of the business by increasing the number of

employees and targeted areas respectively.

DEMOGRAPHICALLY

The location is the most important aspect in predicting a car wash's success.

The 9th avenue and Stadium Road is one of the most crowded areas in the

city. Almost every house owns a car and theres also lot of shops and mall.

Its an area which is not very clean, theres almost dust everywhere so

mostly cars get dusty very soon. Front of the cricket stadium is an area

which is very crowded and can be a very good area for the car washing

business because very few people there have any servants and mostly

people live there do jobs so they dont get time to wash their cars. There

countless number of shop, garages and CNG stations situated on the double

road; who could be the possible customers of the business. The 9th avenue

and cricket stadium road have very smooth road which will make our servicedelivery time very fast.

OPERATIONS OF THE BUSINESS

Main operation will include washing the exterior with the (branded) car-wash-

shampoo. Cleaning the deposits of mud underneath the car. Using air blower

and vacuum cleaners, for removing dust from the interior and under the

bonnet. And at last polishing by means of polishing machine and branded

polish.

NATURE OF THE BUSINESS

As this is a service related business, there is a no such Cost of Goods to be

estimated. No doubt like every business, this business will also commence by

purchasing the assets such as air-blower, portable-vacuum cleaner, mini-

water pressure pump and polishing machine. And of course a contact

number (preferable cell phone; due to low cost, affordability and mobility).

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Car wash shampoo, polish, wash cloth and the transportation cost will be

accounted as operating expenses (daily expenses).

Initially the service will be provided in limited area, but if the business will

gain success and the idea becomes hit, there are expansion planes.

MARKETING

As potential demand is large in the target area, but at the ignition time of thebusiness; it is not possible that each and every one in the targeted area isfully informed about the business and it unique services. Advertisement willbe made by poster. Broachers will be given to every home and shop locatedin the area. Our loyal customer who will frequently and reputedly demandservices from us would be most attractive customers and will be givenpriority.

MARKET ANALYSIS SUMMARY

The car wash will be based in Stadium Road and 9th

Avenue, Rawalpindi. Thisarea has a number of benefits in terms of the market that it will provide for

the business.

As our home car washing business will save people time and provide them

the service at home so mostly it will appeal to everyone including mostly

those people who have jobs and cant maintain their cars clean. Many people

in the neighborhood own or lease new cars and place great value on their

cars and how they look.

PROFILE OF PEOPLE LIVING ON 9th AVENUE AND THE STADIUM ROAD

The People live in this area are mostly middle class and most families havejust one car each. Mostly men in this area do jobs. They go early and comeback in the evening so they dont have any time for the maintenance of theircars. Many people in the neighborhood own or lease new cars and placegreat value on their cars and how they look. Mostly people have agebetween 20 to 50 which suits the target market and majority is of the malesbecause there are also malls and lot of shop where mostly males work. The

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income which mostly each family earns is not less than 50,000. The most ofthe people are also educated. So this make the market very attractivebecause most of the males will try to save their time and instead of going towash cars service stations, they will like to have it at homes or while they areat work in the offices, shops, malls and other commercial and residential

areas in the region. And for those who dont belong to this targeted regioncan have their vehicle good as new in the time they are shopping in themalls. Customers in the area will also be loyal to us because of the prices,absence of direct competition and easy availability of a needed servicewithout any hesitation of time wastage.

CONSUMERS/CUSTOMERS

The first thing consumers usually do when they hear of a new service iscompare it to existing alternatives. Customers will buy from a new businessonly if they perceive the value provided by that new business to be greater

than the value provided by existing competitors, and as there is no suchdirect competitors in the market more and more people who are aware ofthe upcoming business are willing to become the potential customers andare ready to pay to achieve the services. As the number of customers isinitially low and there is almost no switching cost; the influence of thecustomers is high. But the number of buyer is estimated to grow veryrapidly. Customers can easily compare a professional home car wash servicewith the service given at the station or with the services of thoseunemployed and unorganized people standing at the parking lots.

THREAT OF SUBSTITUTES

If getting a car wash from another place is a threat of substitute than Yesthere is a threat. But talking in the real terms, and taking into considerationthe fact the service provided is not just a car-wash; it is home car washthan there is no threat of substitutes as workers working on the servicestations will never come to ones house to clean the car and nobody will everthink of inviting the people standing at parking lots to their houses for a carwash, due to the security reasons. Thus proving that there is no or a verysmall threat of substitute.

POTENTIAL ENTRANCE

Potential entrance is not considered a threat at this initial stage because ofthe reason that the business is going to kick-start from a small level. Andthere number of customers even in the early stages is lot more than thepotential load of the work that business could handle, so any entrance willnot be causing the loss of customers.

MARKET SEGMENTATION

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the look of their car. For this reason, again our home car wash will help

them to have neat and clean drive. They will feel very convenient by

having the car wash service at their home. It will save their precious

time too.

5. Dealerships: There are different new and used car dealerships withinthe boundaries of both cities. These dealerships often use outside car

wash services to detail their vehicles before they are put up for sale.

Usually they do not have much time to take their cars at car wash

places to get them service, as they are car dealers. For this, it will be

very much easy and flexible for the car dealers to get their cars

washed in detailed at their place in reasonable price. It will save their

precious business time too.

6. 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. Our home car wash service will definitely going to help

them a lot in different ways.

TARGET MARKET SEGMENT STRATEGY

The strategy behind our home car wash target segmentation is to attractcustomers who will be repeat users and will frequent the business in thetypically quiet times for a car wash business. It will not be difficult to attractcustomers during the summer months and on the weekends, the weekdayshowever, people will not think about having their cars washed. For thisreason, our home car wash service will target people who will tend not to berestricted to these busy times.

1. Business customers (car owners) tend to be very busy people, and arenot often able to manage any free time in their demanding schedule,so for this reason our home car wash service will definitely going to

give them quality work and will satisfy them. We have plan to offerthem with discount coupon which can be utilized during 12 pm - 5 pmas this is the time that people dont intent to exploit in car wash andcalls are least expected at these timing so this strategy will attractpeople for a car wash in the off-peak timings.

2. Retired people are not restricted by typical work schedules so will beable to frequent the car wash during the week. But once they will gettheir cars washed at their own place, they will definitely appreciate it,

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because it will help to save their time as well as will not allow them towait for their turn in car wash stations. As old people cannotparticipate actively in the maintains of their car so to attract thismarket segment the team will provide free under the bonnet check toidentify any problem in car performance (and giving this facility

involves no cost).3. Dealerships will need cars detailed and washed every day andweek. This will supply a constant flow of traffic. They usually donthave much time, so in order to save their time and to get quality work;they will prefer to get their cars washed at their places instead oftaking them to car wash and waiting for long time. They will be offereda service of 1 free car wash along with 4 paid car wash. This facility willnot be given in the initial stages of the business and will be providedon the spot; meaning that on 4 consecutive car wash the 5th car will bewashed for free on the spot, not later. This strategy will make dealersand garages to wash 4 cars instead of 2-3 and this will save a lot time

compare to delivering services in 4 different locations in the areas. Thiswill also increase the loyal customers.

4. Businesses will need their fleet cars washed during the week duringregular business hours. Our home car wash service will definitely be avery helping hand for them. The business has plan to provide suchregular commercial business the facility of credit payment but only ifthey are loyal customers. This strategy will be implemented in 6months after evaluating the loyal commercial customers/ enterprises.

PRICING

Initially the customers will be charged Rs: 450 (with a polish service) and Rs:350 (with out polish) [excluding the tips].

STRATEGY

This new and innovate idea is appreciated by many people and they are

willing to pay more than the service station rates due to the fact that they

will be able to save a lot of time and they can get a service they wish for at

any time of the day or night as the service is offered 24 hours, at any place

they want (in the restricted area of the business).COMPETITIVE ADVANTAGE

This business has an advantage that it is the only organized home car wash

service in the region. There area number of car wash shops within both cities

i.e. Rawalpindi & Islamabad. Our home car wash service is quite new and is

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trying to compete with automatic car washes by offering low

prices. However, we are also targeting the customers who seek quality

cleaning.

The customers whom we are targeting have their cars washed based on the

quality of the job. They usually do not have much time to spend at car washservice stations each week to have their car washed and waxed in order to

keep the paint work in excellent shape. Their time values a lot. So in this way

they are not able to maintain their cars they way they want. The businesses

that we are going to target will be more cost conscious, so prices will be

approximately 30% less for these customers to promote volume usage. This

will definitely going to give us edge on the competitors. After washing their

cars, we will be facilitating them by having free or discounted waxing facility

to their cars which will help to maintain the shine of their luxurious and

expensive cars. It is also an advantage which we will avail. Another

advantage that we can benefited from is that majority of the car owners

dont have time to take their car at car wash stations and literally hate to

wait for their turns as it waste their time, and if they do so, they do not even

get satisfaction which they desire. But on the other side of the coin, once

they will start getting our home car wash service, they will be very much

satisfied to get their cars washed in their houses or places and get waxed/

polished too. This will also boost up the customer satisfaction level. Another

advantage that we can get is that we will be facilitating the customers 24/7.

Anytime they want their cars washed, we will be available, and this is also

one of the major plus point.

MARKET AND INDUSTRY COMPETITION

Market size of such business is very small as there is very minute direct

competition; as there is no such organized business running in the area,

small number of unemployed individuals standing at parking lots can be

considered as a small threat. And the service stations can be considered as

indirect competition. Competitors are not similar in size or capacity. The

more the Business will grow the more the industry will grow, and by the

estimation in the light of the survey conducted shows all the lines in thegraphs and charts shooting up-wards. All of this attraction and expected

growth is possible due to the opportunity to sell a differentiated service.

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SUPPLIERS/SUPPLIES

This is a service business. The products used in the daily routine will be

purchased according to the daily requirements, as this is a small scale

business so supplies (such as polish, shampoo etc.) will not be bought in

huge amount/stock as the business doesnt have that capacity right now.

SALES STRATEGY

By providing the home services of such a service that is not delivered athome, the business hopes to lure potential customers in the portion of loyalcustomer. By providing appropriate incentives to the related segmentaudience as discussed in the Target Market Segment Strategy along withcustomer friendly relations will boost up the demand.

POINT OF VIEW OF POTENTIAL CUSTOMERS

The facts and figures generated are on the bases of Primary data collected.

Questioners were used to collect the data and were attached with the

feasibility report.

50 people were used in the process of survey (randomly). Varied people (in

terms of age, gender, and race) presented their point of view about the

business. The results were beyond our expectations. Focus was on a

particular group of people living on or near the Stadium/Double road

(Rawalpindi) and the 9th avenue (Islamabad).

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All the indications show that people are waiting for a service like home car

wash service to be brought into the market and a huge demand even before

commencing the business.

FINANCIAL OF THE BUSINESS

Budget will comprise ofRs: 50,000

CAPITAL REQUIRED TO COMMENCE THE BUSINESS (ASSETS)

Item Quantity Cost per Unit Total CostMini AirBlower

2 Rs: 2,200 Rs: 4,400

Mini WaterPump

2 Rs: 1,500 Rs: 3,000

PolishingMachine

2 Rs: 1,200 Rs: 2,400

PortableVacuum

2 Rs: 1,000 Rs: 2,000

Cycles 4 Rs: 3,000 Rs: 12,000Uniform (T-

shirts)4 Rs: 200 Rs: 800

Miscellaneous

- - Rs: 5,000

Grand total Rs: 29,600

Based on the prices collected from the market of second hand good required

for the business.

PREPARATION

Initially 2 teams will be made, each having 2 members. So therefore each

team would have 2 cycles and 1 air blower, water pump, vacuum and

polishing machine.

HANDLING THE SURPLUS/SHORTAGE

Total Budget (50,000) Capital Required (29,600) = Surplus(20,400)

Rs: 20,000 approx. will be deposited in a bank account (at the present 12%

interest rate), later to be utilized for the expansion plans of the Business.

This investment will give Rs: 2,400 approx. of benefit p.a.

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If there is any deficit during the business it will tackled by over-draft (short

term) loan from the bank. (But the probability is very low).

ESTIMATED EARNINGS

It is estimated that a team will deliver services to at least 12 customers (ittakes 30-40 minutes to give a car wash utilizing the instruments provided).

As there are 2 teams so that makes 24 car washes per day. Initially the

customers will be charged Rs: 450 (with a polish service) and Rs: 350 (with

out polish) [excluding the tips]. Assuming that out of 24 wash per day, 18 car

wash services are with a polish service and 6 are without the polish.

FORECASTED INCOME (INITIALLY)

Details per Day Income per Task Total18 car wash + polishing Rs: 450 Rs: 8,1006 only car wash Rs: 350 Rs: 2,100

Total income per Day - Rs: 10,200Estimated earnings per Month= Rs: 10,200 x 30 Days = Rs: 3,

06,000

ESTIMATED EXPENSES

As earnings as estimated to remain constant with a little fluctuation from the

estimated amount of Rs: 3, 00,000 but the expenses will vary according to

the Business life cycle stages as shown by the budgeted amounts.

MARK 56

Operating Expenses Budget

for 1st Quarter

1st

month2nd

month3rd

month

RS: RS: RS:

FIXED

Salaries 40,000 40,000 40,000

Cycles services/ repair 1,000 1,000 1,000

Uniform Dry-clean 1,400 1,400 1,400

Asset Maintenance 500 500 500

Total 42,900 42,900 42,900

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VARIABLE

Car wash shampoo 2,000 2,500 2,800

Polish 3,500 4,800 5,400

Cleaning cloth 400 700 1,000

Drying cloth 600 1,400 1,900Total 6,500 9,400 11,100

DISCRETIONARY

Advertising 8,000 3,000 5,000

Total Operating Exp. for themonth 57,400 55,300 59,000

CASH BUDGET

MARK 56

Cash Budget

for 1st Quarter

1st

month2nd

month3rd

month

Balances - 2,93,100 5,40,300

InflowsInvestm

ent 50,000 - -Revenu

e 3,00,500 3,02,500 3,06,500Outflow

s (net) (57,400) (55,300) (59,000)

Surplus/Shortag

e 2,93,100 5,40,300 7,87,800

INVESTMENT GAINS

MUDARABA

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Mark 56 home car wash service is a grand slam investment. As a new and

innovative approach with skilled, capable, organized, educated and customer

friendly management, there is a fast potential of rapid escalation of this

business. At this rate keeps up than this business will spread throughout the

cities.

All the financial documents and the data prepared is on the basis ofassumption and personal opinion, the purpose is not to promote the given

data but to create an understanding of how to make a comprehensivebusiness plan, this business do not exist.

This is an original document. All the information is presented in the bestpossible way; and is correct according to my limited knowledge. If there areany corrections regarding the information, grammar, spelling or typing I may

kindly be informed.

Danish Sultan

[email protected]

+92 312 51100 56This is a complete set of feasibility report (and the questioner), business plan

(title page and report) make sure you download all of them for better

understanding.

mrk56 is used by Danish in the documents written originally by him.

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Documents

Business Plan Mark56