Business Plan

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BUSINESS PLAN

FOR

CORPORATE
CAR WASH

DATE:

6TH MARCH 2018.

PREPARED BY:
FAGORUSI. A. AMOS
PGD COMPUTER SCIENCE
NASARAWA STATE UNIVERSITY, KEFFI

PHONE NO: 08135884477


Company Summary
Amos Fagorusi is the sole owner of corporate car wash, and he will contribute a start-up fee of
N300,000 to the business. Corporate is registered as a Closed Corporation.

Company Ownership

Amos Fagorusi is the sole owner of corporate. Amos has over 5 years experience in the car
industry and has HND from Offa polytechnic. i stumbled upon the location in kuchiyako by
accident, and felt that it would be the ideal site for a car wash service.

Amos Fagorusi will contribute a start-up fee of N500,000 out of his personal funds. The property
is located in Flower Road, and Corporate will sign a three year contract, starting in March 2018.
The business will have the option to extend the lease contract of the expiry of the first contract.

Amos has negotiated with the owner of the property for a rent of N1,200 per month. He also has
to pay an insurance fee of N200 per month, and will be responsible for the electricity bill, which
is not included in the rental price. Corporate will have to procure three high-power water pumps,
three industrial vacuum cleaners, 20kva Generator, steaming machine, one computer and one cash
register. The equipment will be depreciated on the accrual system over five years.

Corporate will be providing customers with four services: exterior car washing, interior cleaning,
car detailing and rug washing. Hiring the best employees and making sure that they are well taken
care of ensures that they in turn take care of customers.

Service Business Analysis

There are four other car wash services in a 3 kilometre radius from Wishy Washy. However,
none of these are focused on the premium hand wash service for exclusive customers. Their
primary target market are the cost conscious individual.

Description of venture
Corporate will provide four services to its customers:

• Interior cleaning and vacuuming


• Exterior washing
• Car detailing.
• Rug washing
Market Analysis Summary
The location of Corporate carwash holds plenty of market opportunities. The average resident in
the area is considered to be affluent, and will want to keep their expensive cars in mint condition.
There are also many local businesses with company cars that need to be washed on a regular
basis, but the biggest opportunity for corporate lies in the many car dealerships in the surrounding
business centre.

Market Segmentation

Corporate’s Market segmentation is done demographically:

Luxury car owner: corporate will focus on this segment for their premium hand wash service.
Luxury car owner takes pride in their cars and would probably become regular customers over
time.

Cost conscious car owner: Although Corporate will not focus on this segment, there are cheaper
options available for those who just want an exterior quick wash. Our main service for this
segment will be the “Wash and Go” serve, which is the cheapest service.

Dealerships: The dealerships in the area will constitute a large portion of the segmentation cake.
Dealerships would want to keep their fleet of cars shiny and spotless and Corporate hopes to fulfil
that need.

Operational Plan

After doing extensive market research, Amos has found that Mondays, Tuesdays and Wednesdays
are the slowest days for a car wash. This might be due to the fact that many people wash their
cars before they leave for a weekend away, after they return for a weekend away or simply has
more time for things like washing the car during the weekend.

To counter this effect, Corporate will target cost conscious customers during these days, by
offering specials and discounts on Mondays to Wednesdays.

Competition and Buying Patterns

There are other low cost car wash services in the vicinity of Kuchiyako, but Amos aims to attract
loyal premium customers by offering a good quality and personal service. Also, he wants to sign
contracts with local businesses and car dealerships, giving them discounts for regular washes.
This makes it lucrative for them to continue washing their cars at Corporate.
Strategy and Implementation Summary

Corporate will outshine its competitors based on Amos Fagorusi’s sense of business gained in his
5 years in the car repair industry. Corporate will depend greatly on its ability to create loyal
customers and this will be its main strategy.

Amos Fagorusi has also build voluble relations with the local business community and hopes that
this will create loyal customers and in turn give Corporate a competitive edge.
In addition, Amos experience as an operations manager has been valuable in learning how to keep
overhead expenses as low as possible, and this will come in handy when creating special offers
and discounts for Monday to Wednesday customers.

Management/Organization Summary
Amos Fagorusi is the sole owner and manager of Corporate car wash. In addition, he will be
helped (on an unofficial basis) by his father, Joseph Fagorusi. Joseph has over 20 years
experience as an entrepreneur and has run several successful businesses, Amos will also have the
assistant of Femi Thomas the family accountant, in creating a long-term strategic vision for the
company. Femi has work with small and medium size businesses for 15years.

Personnel Plan

Corporate will employ three full time workers, and two additional part-time workers for the
weekend rush.

Financial Plan

The Financial Plan below will outline the financial projections of Corporate. Amos Fagorusi will
finance the start-up expenses of Corporate, with a N500,000 investment from his personal funds,
and growth will be financed by cash flow. This will implicate a slow initial growth for the
company, but Amos do not want to involve outside investors and jeopardise his control over the
direction of the company. Amos hopes to be able to open a second location within 3 years.

The part-time washer will be paid on commission basis which is 40% of every car he washed
while the full time will be paid salary on every end of the month. Amos 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.
General Assumptions

Year 1 year 2 year 3

Plan month 1 2 3

Current interest rate 12.00% 12.00% 12.00%

Long-term interest rate 12.00% 12.00% 12.00%

Tax rate 27.42% 27.00% 27.42%

Other 0 0 0

The financial projections for corporate car wash are based on the following assumptions. This
assumption is quite conservation as well as financial forecast.

Appendixes

Corporate carwash will offer discounts and special offers on Mondays to Wednesdays in order to
boost sales on those days. Amos will try to convince the business owner in the vicinity to sign
contracts with lucrative benefits, and thus try to Advertised directly to businesses/esteemed
Customers.

Corporate will sign a three year contract, starting in March 2018. The business will have the
option to extend the lease contract when the first contract has expire.
TABLE OF CONTENT
1. Executive Summary
i. Company Ownership
2. Business Analysis
3. Description of venture
4. Market Analysis Summary
i. Market Segimentation
5. Management/Organization plan
i. Personnel Plan
6. Operational Plan
i. Competition and buying patterns
7. Financial Plan
i. General Assumption.
8. Appendixes.

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