DPR Cms Group 4 Pptx

8/8/2019 DPR Cms Group 4 Pptx

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B U S I N E S S I D E AB U S I N E S S I D E A


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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.


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THE CUSTOMERS

Soapy Rides will target three main groups of customers:

Individual car owner and leasers,

Car dealerships, and

Local businesses.


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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.


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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


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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.


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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.


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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.


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0

50000

100000

150000

200000

250000

300000

EXPENCES ASSETS INVESTMENTS LOANS

90000

200000

290000

0

STA RT UP

RS


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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


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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


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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


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SERVICES

Soapy Rides will provide three services to

its customers:

Car washing (exterior)

Car cleaning (interior)

Car detailing


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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.


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Market Segmentation

New carowners

Older luxury carowners

Sports carowners Lifetime owners

Dealerships

Local businesses


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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%


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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.


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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


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0

500000

1000000

1500000

2000000

2500000


car delearship details

business fleetwashes

end user detail

interior wash

exterior wash

full wash


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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


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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


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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


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-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


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PROJECTED PROFITAND LOSS

0

100000

200000

300000

400000

500000

600000


profit yearly

profit yearly


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0

500000

1000000

1500000

2000000

2500000


Gross margin

gross margin


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Pro Forma Profit and Loss


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%


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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%


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PROJECTED CASHFLOW

-50000

0

50000

100000

150000

200000

t fl

b l


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Pro Forma Cash Flow


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


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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


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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


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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


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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


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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


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DPR Cms Group 4 Pptx