Car Wash Business Plan

Executive Summary

Soapy Rides is a prominent hand car wash serving the East Meadow, Long Island, NY
community. Soapy Rides will be run by Mark Deshpande, of the prominent Deshpande family.
The Deshpande family has been serving the Long Island area with a car repair business and
property development /management for over 30 years. Mark will be leveraging the incredible
good will and brand recognition of the Deshpande family name to quickly gain market
penetration.

The 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. Most are trying to compete on price alone. 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. Hiring the best employees is cost
effective because it decreases HR 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

Soapy Rides will target three main groups of customers: individual car owner and leasers, car
dealerships, and local businesses. The surrounding area is quite affluent, 40% of the residents
earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There
are five different car dealerships within a three-mile radius which will require car washing
services for the various fleets. Lastly, there are many different local businesses that have
company cars and that require clean appearances.

Management

The strength of Mark's experience and his family's name equity and assistance is Soapy
Rides' competitive edge as well as a significant asset. Mark has been involved in the family's car
repair business for the last ten years. He has worked his way through the organization and has
been the manager for the last five years overseeing operations of $1.2 million annually. Before
the family venture, Mark received his MBA from Cornell University. With 30 years invested in
the community, the Deshpande family name has generated significant value as a fair, active
member of the community. Lastly, Soapy Rides will be able to leverage several of the
Deshpande's for their business expertise.
Soapy Rides is positioning itself as the premier hand car wash serving the Long Island area.
Mark has forecasted a 20% market share. The business will generate a very high gross margin
and a modest net margin after year one and comfortable margin after year three. By year three
the business will have developed a respectable yearly net profit.

1.1 Objectives

The objectives for Soapy Rides Car Wash and Detail Service are:

1. To be viewed as a premium car wash and detail service in East Meadow.

2. Maintain a very high gross profit margin.
3. Maintain a modest, steadily growing net profit margin.
4. Expand to two locations after third year of operation.

1.2 Mission

The mission of Soapy Ride is to provide top-quality washing and detail service for luxury car
owners in East Meadow, NY. Soapy Rides will work to keep employees satisfied in order to
maintain impeccable customer service.

Company Summary

The company is solely owned by Mark Deshpande and will be funded by an initial
personal investment. Soapy Rides is New York State registered C corporation.

2.1 Company Ownership

The company will be solely owned by Mark Deshpande. Mark has been in the car industry all his
life, having grown up in the family car repair business. He came across the location in
East Meadow purely by accident and he felt it would be a perfect location for a car wash service. 

2.2 Start-up Summary

The start-up expenses for Soapy Rides will be financed by Mark Deshpande, from the profits he
made in selling his part of the family car repair business. The property on Hempstead Road will
be leased in April 2001 for a minimum of three years, with the option to extend the lease for
another three years after that.

Mark is working with the family 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. Although Mark has been in the car repair business, he has
not been in the wash and detailing business, which is a very different service (quick turnaround
per car is incredibly important). For this reason he 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 negotiated and will be $1,200 per month. In addition, insurance for
the business will be approximately $200 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 three years.

The location was previously used as a quick stop automobile service shop, so it is set up to move
vehicles quickly through the premises, but does not 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
convert the use of the facility and to improve the customer waiting room facilities.

Start-up Requirements

Start-up Expenses

Legal $500

Stationery etc. $400

Brochures $450

Consultants $0

Insurance $200

Rent $1,200

Research and Development $300

Expensed Equipment $4,100

Signs $700

Building Materials $1,200

Building Labor $1,000

Total Start-up Expenses $10,050

Start-up Assets

Cash Required $8,700

Start-up Inventory $250

Other Current Assets $1,000

Long-term Assets $10,000

Total Assets $19,950

Total Requirements $30,000

Start-up Funding

Start-up Expenses to Fund $10,050

Start-up Assets to Fund $19,950

Total Funding Required $30,000

Assets

Non-cash Assets from Start-up $11,250

Cash Requirements from Start-up $8,700

Additional Cash Raised $0

Cash Balance on Starting Date $8,700

Total Assets $19,950

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $0

Capital

Planned Investment

Investor 1 $30,000
Investor 2 $0

Other $0

Additional Investment Requirement $0

Total Planned Investment $30,000

Loss at Start-up (Start-up Expenses) ($10,050)

Total Capital $19,950

Total Capital and Liabilities $19,950

Services

Soapy Rides will provide three services to its customers:

 Car washing (exterior)

 Car cleaning (interior)
 Car detailing

Market Analysis Summary

The car wash will be based in East Meadow, New York. This area has a number of benefits in
terms of the market that it will provide for the business. Over 40% of households in the
immediate neighborhood earn over $70,000 annually. Many people in the neighborhood own
and/or lease new cars and place great value on their cars and how they look. There are a large
number of car dealerships in the area--five within three miles of the proposed location for Soapy
Rides.

4.1 Market Segmentation

Soapy Rides 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.

1. 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 Soapy Rides will keep their car looking as
good as it did the day they drove it off the lot.
 2. 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.
3. 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.
4. 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
occassionally, 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.
5. 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 Soapy Rides.
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.

Market Analysis
 Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

New Car Owners 10% 7,200 7,920 8,712 9,583 10,541 10.00%

Older Luxury Car

15% 12,500 14,375 16,531 19,011 21,863 15.00%
Owners

Sports Car Owners 15% 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

7% 9 10 11 12 13 9.63%
Dealerships

Total 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%

4.2 Target Market Segment Strategy

The strategy behind Soapy Rides 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 summer months and on the weekends, the
weekdays however, especially in the winter, people will not think about having their cars
washed. For this reason, Soapy Rides 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.

4.3 Service Business Analysis

The hand car washing business in East Meadow consists of many small competitors. Everything
from local children raising money for their youth group on a Saturday by cleaning cars, to
the automatic car wash machines, are competition for Soapy Rides. 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. Soapy Rides on the other hand,
targets the quality-conscious individuals who value their car enough to spend $10-$15 per week
to make it look good.
4.3.1 Competition and Buying Patterns

There is one other hand car wash shop in East Meadow. It is quite new and is trying to compete
with automatic car washes by offering low prices. However, it is not targeting the customers who
seek quality cleaning.

The customers who Soapy Rides is targeting 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 Soapy Rides targets will be
more cost conscious, so prices will be approximately 30% less for these customers to promote
volume usage.

Strategy and Implementation Summary

The key differentiator for Soapy Rides Car Wash is Mark Deshpande and his business and
personal connections within the East Meadow 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. Soapy Rides, therefore, will depend on word-of-mouth
advertising for the immediate community.

5.1 Competitive Edge

Soapy Rides' competitive edge will be Mark Deshpande and the quality of the family name in the
East Meadow area. As mentioned, the family has been in the car business for over 30 years, and
has an excellent reputation and a myriad of both business and personal contacts. In addition,
Mark has put a great deal of emphasis on creating a system that is both fast and efficient, which
will keep costs, in terms of time spent per car, to a minimum.

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5.2 Sales Strategy

Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of Soapy
Rides, and that all employees care about the care and upkeep of each vehicle. We must be aware
that there are low switching costs in the car washing industry, so we have to work hard to
develop and keep repeat customers.

5.2.1 Sales Forecast

The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are
seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in
the winter. However, we will aim to flatten sales across the sales cycle by targeting segments that
will want to keep their cars clean and looking good year round.
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Sales 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 $15.00 $15.00 $15.00

Exterior Wash $9.00 $10.00 $12.00

Interior Clean $8.00 $9.00 $9.00

End User Detail $140.00 $145.00 $150.00

Business Fleet Washes $10.00 $10.00 $10.00

Car Dealership Details $70.00 $75.00 $80.00

Sales

Full Wash $26,400 $34,320 $44,616

Exterior Wash $18,450 $26,650 $41,574

Interior Clean $6,160 $9,009 $11,712

End User Detail $18,060 $27,985 $43,425

Business Fleet Washes $6,150 $9,225 $13,838

Car Dealership Details $34,580 $48,150 $77,040

Total Sales $109,800 $155,339 $232,204

Direct Unit Costs Year 1 Year 2 Year 3

Full Wash $0.70 $0.80 $0.90

Exterior Wash $0.40 $0.45 $0.50

Interior Clean $0.30 $0.35 $0.40

End User Detail $3.00 $3.50 $4.00

Business Fleet Washes $0.70 $0.75 $0.80

Car Dealership Details $3.00 $3.50 $4.00

Direct Cost of Sales

Full Wash $1,232 $1,830 $2,677

Exterior Wash $820 $1,199 $1,732

Interior Clean $231 $350 $521

End User Detail $387 $676 $1,158

Business Fleet Washes $431 $692 $1,107

Car Dealership Details $1,482 $2,247 $3,852

Subtotal Direct Cost of Sales $4,583 $6,994 $11,047

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5.3 Milestones

The following table outlines the important milestones in the planning and implementation of
Soapy Rides.
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Milestones

Milestone Start Date End Date Budget Manager Department

Complete Business Plan 2/1/2001 5/1/2001 $0 ABC Department

Sign Rental Contract 3/20/2001 3/20/2001 $475 Mark Owner

Convert Premises 4/1/2001 4/30/2001 $0 Contractors Contractors

Hire Car Wash Staff 4/20/2001 4/20/2001 $200 Mark Owner

Hire Admin Staff 4/20/2001 4/20/2001 $200 Mark Owner

Open for Business 5/1/2001 5/1/2001 $0 Staff Staff

Distribute Flyers 4/28/2001 5/5/2001 $75 Friends Friends

Press Release 4/29/2001 4/29/2001 $25 Mark Owner

Follow-up on Press 4/30/2001 4/30/2001 $0 Mark Owner

Release

Totals $975

Management Summary

Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped
(on an unofficial basis) by his father, Barry Deshpande. Barry has over 30 years experience as an
entrepreneur, both in the car business and in property development and management.

Mark will also have the assistance of John Shine, the family accountant, in creating a long-term
strategic vision for the company. John is a family friend and has worked with the Deshpande
family for 23 years. He has worked with hundreds of small- and medium-sized businesses during
his career.

6.1 Personnel Plan

Since car washing is a seasonal business, with business increasing in the warm summer months,
and being busier on the weekends than during the week, Soapy Rides 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 Mark with
paperwork and act as a receptionist.

Personnel Plan

Year 1 Year 2 Year 3

Owner $18,000 $30,000 $40,000

Car Washers $30,240 $43,312 $51,174

Admin/Sales $13,440 $15,000 $22,000

Total People 0 0 0

Total Payroll $61,680 $88,312 $113,174

Financial Plan

The following plan outlines the financial development of Soapy Rides. The business will be
initially financed by a personal investment by Mark Deshpande 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 Mark 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.

7.1 Important Assumptions

The financial projections for Soapy Rides are based on the following assumptions. These
assumptions are thought to be quite conservative, as are the financial forecasts.

General 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

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7.2 Break-even Analysis

The table and chart below show the monthly break-even analysis calculations for Soapy Rides.
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Break-even Analysis

Monthly Units Break-even 423

Monthly Revenue Break-even $7,974

Assumptions:

Average Per-Unit Revenue $18.87

Average Per-Unit Variable Cost $0.79

Estimated Monthly Fixed Cost $7,641

7.3 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.
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Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales $109,800 $155,339 $232,204

Direct Cost of Sales $4,583 $6,994 $11,047

Other $0 $0 $0
Total Cost of Sales $4,583 $6,994 $11,047

Gross Margin $105,218 $148,345 $221,157

Gross Margin % 95.83% 95.50% 95.24%

Expenses

Payroll $61,680 $88,312 $113,174

Sales and Marketing and Other Expenses $2,600 $1,550 $1,700

Depreciation $2,070 $2,070 $2,070

Leased Equipment $0 $0 $0

Utilities $3,325 $3,500 $3,750

Insurance $1,800 $1,800 $1,800

Rent $4,800 $5,500 $6,000

Payroll Taxes $15,420 $22,078 $28,294

Other $0 $0 $0

Total Operating Expenses $91,695 $124,810 $156,788

Profit Before Interest and Taxes $13,523 $23,535 $64,370

EBITDA $15,592 $25,605 $66,440

Interest Expense $0 $0 $0

Taxes Incurred $3,204 $5,884 $16,361

Net Profit $10,318 $17,651 $48,009

Net Profit/Sales 9.40% 11.36% 20.68%

7.4 Projected Cash Flow

The following Cash Flow table illustrates that if Soapy Rides meets projected sales, it will have
positive cash flow after half a year of operations.
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Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales $93,330 $132,038 $197,374

Cash from Receivables $13,097 $21,902 $32,470

Subtotal Cash from Operations $106,427 $153,940 $229,843

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $106,427 $153,940 $229,843

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $61,680 $88,312 $113,174

Bill Payments $33,052 $46,837 $67,743

Subtotal Spent on Operations $94,732 $135,149 $180,917

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $94,732 $135,149 $180,917

Net Cash Flow $11,695 $18,791 $48,927

Cash Balance $20,395 $39,186 $88,112

7.5 Projected Balance Sheet

Soapy Rides' balance sheet illustrates a healthy financial position for this new company. The
monthly estimates are included in the appendix.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $20,395 $39,186 $88,112

Accounts Receivable $3,373 $4,772 $7,133

Inventory $668 $1,019 $1,609

Other Current Assets $1,000 $1,000 $1,000

Total Current Assets $25,435 $45,976 $97,854

Long-term Assets

Long-term Assets $10,000 $10,000 $10,000

Accumulated Depreciation $2,070 $4,140 $6,210

Total Long-term Assets $7,930 $5,860 $3,790

Total Assets $33,365 $51,836 $101,644

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $3,097 $3,917 $5,716

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $3,097 $3,917 $5,716

Long-term Liabilities $0 $0 $0

Total Liabilities $3,097 $3,917 $5,716

Paid-in Capital $30,000 $30,000 $30,000

Retained Earnings ($10,050) $268 $17,919

Earnings $10,318 $17,651 $48,009

Total Capital $30,268 $47,919 $95,929

Total Liabilities and Capital $33,365 $51,836 $101,644

Net Worth $30,268 $47,919 $95,929

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7.6 Business Ratios

The following table contains important ratios for the car wash industry, as determined by the
Standard Industry Classification (SIC) code, 7542.

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 41.47% 49.48% 3.00%

Percent of Total 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

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 11.74 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

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 $22,338 $42,059 $92,139 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

Appendix

Sales Forecast

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

Unit Sales

Full Wash 0% 90 130 170 190 190 185 135 135 120 120 140 155

Exterior
0% 90 130 185 220 230 220 180 170 150 150 160 165
Wash

Interior
0% 40 50 50 55 60 65 70 80 80 85 75 60
Clean

End User
0% 3 5 7 10 12 12 14 9 11 14 15 17
Detail

Business
Fleet 0% 25 40 55 60 60 55 55 55 55 50 50 55
Washes

Car
Dealershi 0% 15 17 20 26 32 40 56 45 56 60 60 67
p Details

Total Unit
263 372 487 561 584 577 510 494 472 479 500 519
Sales

Unit Month Month Month Month Month Month Month Month Month Month Month Month
Prices 1 2 3 4 5 6 7 8 9 10 11 12

Full Wash $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00

Exterior
$9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00
Wash
Interior
$8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
Clean

End User $140.0 $140.0 $140.0 $140.0 $140.0 $140.0 $140.0 $140.0 $140.0 $140.0 $140.0
$140.00
Detail 0 0 0 0 0 0 0 0 0 0 0

Business
Fleet $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Washes

Car
Dealershi $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00
p Details

Sales

Full Wash $1,350 $1,950 $2,550 $2,850 $2,850 $2,775 $2,025 $2,025 $1,800 $1,800 $2,100 $2,325

Exterior
$810 $1,170 $1,665 $1,980 $2,070 $1,980 $1,620 $1,530 $1,350 $1,350 $1,440 $1,485
Wash

Interior
$320 $400 $400 $440 $480 $520 $560 $640 $640 $680 $600 $480
Clean

End User
$420 $700 $980 $1,400 $1,680 $1,680 $1,960 $1,260 $1,540 $1,960 $2,100 $2,380
Detail

Business
Fleet $250 $400 $550 $600 $600 $550 $550 $550 $550 $500 $500 $550
Washes

Car
Dealershi $1,050 $1,190 $1,400 $1,820 $2,240 $2,800 $3,920 $3,150 $3,920 $4,200 $4,200 $4,690
p Details

Total $10,30 $10,63 $10,49 $10,94

$4,200 $5,810 $7,545 $9,090 $9,920 $9,155 $9,800 $11,910
Sales 5 5 0 0

Direct Month Month Month Month Month Month Month Month Month Month Month Month
Unit Costs 1 2 3 4 5 6 7 8 9 10 11 12

0.00
Full Wash $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
%

Exterior 0.00
$0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Wash %
Interior 0.00
$0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30
Clean %

End User 0.00

$3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Detail %

Business
0.00
Fleet $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
%
Washes

Car
0.00
Dealershi $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
%
p Details

Direct
Cost of
Sales

Full Wash $63 $91 $119 $133 $133 $130 $95 $95 $84 $84 $98 $109

Exterior
$36 $52 $74 $88 $92 $88 $72 $68 $60 $60 $64 $66
Wash

Interior
$12 $15 $15 $17 $18 $20 $21 $24 $24 $26 $23 $18
Clean

End User
$9 $15 $21 $30 $36 $36 $42 $27 $33 $42 $45 $51
Detail

Business
Fleet $18 $28 $39 $42 $42 $39 $39 $39 $39 $35 $35 $39
Washes

Car
Dealershi $45 $51 $60 $78 $96 $120 $168 $135 $168 $180 $180 $201
p Details

Subtotal
Direct
$183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
Cost of
Sales

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Personnel Plan

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

Owner 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Car Washers 0% $2,240 $2,240 $3,360 $3,360 $3,360 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240

Admin/Sales 0% $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860

General Assumptions

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 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 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

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

Pro Forma Profit and Loss

Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
 $10,30 $10,63 $10,49 $10,94
Sales $4,200 $5,810 $7,545 $9,090 $9,920 $9,155 $9,800 $11,910
5 5 0 0

Direct Cost
$183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
of Sales

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of
$183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
Sales

Gross $10,19 $10,06 $10,49

$4,018 $5,558 $7,218 $8,703 $9,503 $9,874 $8,768 $9,393 $11,427
Margin 9 4 6

Gross 95.74 95.80 95.77 95.84

95.65% 95.66% 95.66% 95.81% 95.90% 95.93% 95.94% 95.94%
Margin % % % % %

Expenses

Payroll $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860

Sales and
Marketing
$500 $300 $300 $300 $300 $100 $100 $100 $300 $100 $100 $100
and Other
Expenses

Depreciatio
$172 $172 $172 $172 $172 $172 $172 $172 $172 $172 $172 $172
n

Leased
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Equipment

Utilities $250 $275 $300 $300 $300 $275 $275 $275 $275 $275 $250 $275

Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Rent $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Payroll
25% $1,215 $1,215 $1,495 $1,495 $1,495 $1,215 $1,215 $1,215 $1,215 $1,215 $1,215 $1,215
Taxes

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total
Operating $7,547 $7,372 $8,797 $8,797 $8,797 $7,172 $7,172 $7,172 $7,372 $7,172 $7,147 $7,172
Expenses

Profit ($3,530 ($1,814 ($1,580 ($95) $706 $2,701 $3,027 $1,596 $2,020 $2,891 $3,348 $4,255
Before
Interest and
) ) )
Taxes

($3,358 ($1,642 ($1,407

EBITDA $78 $878 $2,874 $3,199 $1,768 $2,193 $3,064 $3,521 $4,427
) ) )

Interest
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expense

Taxes ($1,059
($454) ($395) ($24) $176 $675 $757 $399 $505 $723 $837 $1,064
Incurred )

($2,471 ($1,361 ($1,185

Net Profit ($71) $529 $2,026 $2,270 $1,197 $1,515 $2,168 $2,511 $3,191
) ) )

Net 13.07 15.46

-58.83% -23.42% -15.71% -0.78% 5.33% 19.66% 21.34% 20.67% 22.95% 26.79%
Profit/Sales % %

Pro Forma Cash Flow

Month Month Mont Mont Mont Month Month Month Month Month Month Month
1 2 h3 h4 h5 6 7 8 9 10 11 12

Cash
Received

Cash from
Operations

$6,41 $7,72 $8,43

Cash Sales $3,570 $4,939 $8,759 $9,040 $7,782 $8,330 $8,917 $9,299 $10,124
3 7 2

Cash from $1,13

$0 $21 $638 $880 $1,368 $1,490 $1,547 $1,588 $1,376 $1,473 $1,576
Receivables 9

Subtotal
$7,05 $8,60 $9,57 $10,12 $10,53 $10,29 $10,77
Cash from $3,570 $4,960 $9,329 $9,918 $11,699
1 7 1 7 0 3 2
Operations

Additional
Cash
Received

Sales Tax, 0.00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

VAT, %
HST/GST
Received

New
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

New Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-
free)

New Long-
term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Sales of
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets

Sales of
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

New
Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received

Subtotal
$7,05 $8,60 $9,57 $10,12 $10,53 $10,29 $10,77
Cash $3,570 $4,960 $9,329 $9,918 $11,699
1 7 1 7 0 3 2
Received

Expenditure Month Month Mont Mont Mont Month Month Month Month Month Month Month
s 1 2 h3 h4 h5 6 7 8 9 10 11 12

Expenditure
s from
Operations

Cash $5,98 $5,98 $5,98

$4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860
Spending 0 0 0

Bill $1,89 $2,29 $3,59

$82 $2,437 $2,855 $3,785 $2,885 $2,582 $3,812 $2,899 $3,927
Payments 8 6 5

Subtotal
$7,87 $8,27 $9,57
Spent on $4,942 $7,297 $7,715 $8,645 $7,745 $7,442 $8,672 $7,759 $8,787
8 6 5
Operations
Additional
Cash Spent

Sales Tax,
VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST
Paid Out

Principal
Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
of Current
Borrowing

Other
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment

Long-term
Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal
Repayment

Purchase
Other
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current
Assets

Purchase
Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal $7,87 $8,27 $9,57

$4,942 $7,297 $7,715 $8,645 $7,745 $7,442 $8,672 $7,759 $8,787
Cash Spent 8 6 5

Net Cash ($1,372 ($2,338

($827) $331 ($3) $2,412 $1,885 $1,584 $2,475 $1,621 $3,013 $2,912
Flow ) )

Cash $4,16 $4,49 $4,49 $10,37 $12,84 $14,46 $17,48

$7,328 $4,991 $6,904 $8,789 $20,395
Balance 3 4 1 3 9 9 3

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Pro Forma Balance Sheet

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

Starting
Assets
Balances

Current
Assets

Cash $8,700 $7,328 $4,991 $4,163 $4,494 $4,491 $6,904 $8,789 $10,373 $12,849 $14,469 $17,483 $20,395

Accounts
$0 $630 $1,481 $1,974 $2,458 $2,806 $2,984 $3,089 $2,915 $2,797 $2,994 $3,162 $3,373
Receivable

Inventory $250 $1,068 $816 $488 $1,101 $684 $1,252 $816 $429 $1,022 $595 $1,151 $668

Other
Current $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Assets

Total Current
$9,950 $10,026 $8,287 $7,626 $9,052 $8,981 $12,140 $13,694 $14,717 $17,668 $19,059 $22,795 $25,435
Assets

Long-term
Assets

Long-term
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Assets

Accumulated
$0 $172 $345 $517 $690 $862 $1,035 $1,207 $1,380 $1,552 $1,725 $1,897 $2,070
Depreciation

Total Long-
$10,000 $9,828 $9,655 $9,483 $9,310 $9,138 $8,965 $8,793 $8,620 $8,448 $8,275 $8,103 $7,930
term Assets

Total Assets $19,950 $19,853 $17,942 $17,108 $18,362 $18,118 $21,105 $22,487 $23,338 $26,115 $27,334 $30,898 $33,365

Liabilities Month Month

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 12
and Capital 10 11

Current
Liabilities

Accounts
$0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Payable

Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing

Other
Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
Current $0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Liabilities

Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities

Total
$0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Liabilities

Paid-in
$30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Capital

Retained
($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050)
Earnings

Earnings $0 ($2,471) ($3,832) ($5,017) ($5,088) ($4,559) ($2,533) ($263) $933 $2,448 $4,617 $7,128 $10,318

Total Capital $19,950 $17,479 $16,118 $14,933 $14,862 $15,391 $17,417 $19,687 $20,883 $22,398 $24,567 $27,078 $30,268

Total
Liabilities $19,950 $19,853 $17,942 $17,108 $18,362 $18,118 $21,105 $22,487 $23,338 $26,115 $27,334 $30,898 $33,365
and Capital

Net Worth $19,950 $17,479 $16,118 $14,933 $14,862 $15,391 $17,417 $19,687 $20,883 $22,398 $24,567 $27,078 $30,268