HOME CAR WASH SERVICE

FEASIBILITY ANALYSIS

INTRODUCTION

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 the
vehicles 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.

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.

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.

CONCEPT

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).

NATURE OF THE BUSINESS

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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).
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.

1. INDUSTRY AND MARKET FEASIBILITY

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 the
graphs and charts shooting up-wards. All of this attraction and expected
growth is possible due to the opportunity to sell a differentiated service.

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 doesn’t have that capacity right now.

CONSUMERS/CUSTOMERS

The first thing consumers usually do when they hear of a new service is
compare it to existing alternatives. Customers will buy from a new business
only 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 such
direct competitors in the market more and more people who are aware of

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the upcoming business are willing to become the potential customers and
are ready to pay to achieve the services. As the number of customers is
initially low and there is almost no switching cost; the influence of the
customers is high. But the number of buyer is estimated to grow very
rapidly. Customers can easily compare a professional home car wash service
with the service given at the station or with the services of those
unemployed 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 Yes
there is a threat. But talking in the real terms, and taking into consideration
the fact the service provided is not just a car-wash; it is ‘home car wash’
than there is no threat of substitutes as workers working on the service
stations will never come to one’s house to clean the car and nobody will ever
think of inviting the people standing at parking lots to their houses for a car
wash, due to the security reasons. Thus proving that there is no or a very
small threat of substitute.

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

2. SERVICE FEASIBILITY

The facts and figures generated are on the bases of Primary data collected.
Questioners were used to collect the data (attached).

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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SIGNIFICANT FINDINGS

A majority of the public feels awful waiting for a car wash at the station.

And when a whole day is wasted to get a car wash people feel very dreadful.

Just the idea clicked the people and they were ready to make advance
booking.

Many were delighted to hear, that there was any service existed in such
manner.

All the females (from all ages) who filled the questioners were overjoyed as
they are not willing to go to a service station.

A girl commented that ‘this service would certainly be a hit’.

PROTOTYPE

As a prototype; while conducting the survey contact number of Danish

(group leader) was given to the person who filled the questioners and 38
calls in just one day are a pretty good sign for the upcoming business.

3. FINANCIAL FEASIBILITY

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Budget will comprise of Rs: 50,000

CAPITAL REQUIRED TO COMMENCE THE BUSINESS

Item Quantity Cost per Unit Total Cost
Mini Air 2 Rs: 2,200 Rs: 4,400
Blower
Mini Water 2 Rs: 1,500 Rs: 3,000
Pump
Polishing 2 Rs: 1,200 Rs: 2,400
Machine
Portable 2 Rs: 1,000 Rs: 2,000
Vacuum
Cycles 4 Rs: 3,000 Rs: 12,000
Uniform (T- 4 Rs: 200 Rs: 800
shirts)
Other (polish, - Rs: 2,500 per month Rs: 2,500
shampoo,
miscellaneou
s)
Grand total Rs: 27,100
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

Total Budget (50,000) – Capital Required (27,100) = Surplus

(22,900)

Rs: 23,000 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: 3,000 approx. of benefit p.a.

ESTIMATED EARNINGS

It is estimated that a team will deliver services to at least 12 customers (it

takes 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

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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 STATEMENT (INITIALLY)

Details per Day Income per Task Total
18 car wash + polishing Rs: 450 Rs: 8,100
6 only car wash Rs: 350 Rs: 2,100
Total income per Day - Rs: 10,200
Estimated earnings per Month= Rs: 10,200 x 30 Days = Rs: 3,
06,000

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All the financial documents and the data prepared is on the basis of
assumption and personal opinion, the purpose is not to promote the given
data but to create an understanding of how to make a comprehensive
feasibility plan, this business do not exist.

This is an original document. All the information is presented in the best

possible way; and is correct according to my limited knowledge. If there are
any corrections regarding the information, grammar, spelling or typing I may
kindly be informed.

Danish Sultan

mrk56@live.com

+92 312 51100 56

This 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.

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

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