Car Wash Business Plan

Business Plan
1. Prologue:
1.1Origin of the report:
The business plan on Luminous™ automatic car washing company has been
prepared for XXX XXX XXX (Course instructor of Entrepreneurship
Development and Small Business Management) as a partial requirement of
the course Entrepreneurship Development and Small Business Management.
Real life does not go all the time like the theories and practical world is very
critical and diverse. To understand the theoretical aspects of a subject one
must understand the practical situation, problems, policies and implications
of the theories. So the researchers were asked by the respected Course
instructor to prepare a report in the very first class of this semester. Course
instructor assigned this report understand what are the policy, procedure and
steps that is to be taken to establish a new company which will offer a new
innovative product or service. This report emphasizes on preparing a
business plan, which is the outcome of an integrated process of making
future plan for managing different organizational functions.
In order to prepare this business plan it was necessary to survey several

other companies or service centers which are of relevant field, and to know
their policy and procedure. There are some organizations, which are very
popular in this field. So, the researchers decided to survey these service
centers to prepare the business plan on The Luminous™ automatic car
washing company. Researchers have tried to prepare this business plan in
such a way that it reflects the total procedures of business description,
marketing, manufacturing, ownership, management, service, potential risk,
financial analysis etc.
Researchers have tried to prepare a business plan in such a way that it

reflects the total process of establishing a new company that is Luminous™
automatic car washing company which will offer a new and innovative service
of automatic car washing.
1.2 Objectives:
The objective of the business plan is to involve the researchers in practical

situation about how a company is established. This business plan provides a
clear view about how to start, select and run a business successfully.
Practical life and practical situation is far different from the textbook or
theory. There can be many unexpected situations. In this situation the
textbook is not enough for gaining a clear idea about the new business
establishment process. The Primary objective is to know the policy,
procedure, necessity and activities of establishing a new company.
The primary objective of this business plan is to analyze the real situation and
process of establishing a new business. This business plan will also furnish
the opportunity to prepare a real business report that will help the
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researchers to make reports in future for other companies. Each of the

segments has been stated in a manner that will be sufficient to have an idea
about the Luminous™ automatic car washing company.
1.3 Sources of information:
To prepare a business plan the researchers need much information. The

information needed to prepare this business plan was collected from both
primary and secondary information sources.
Primary sources:
The important data and information about this report was collected by
interviewing personnel of several petrol pumps. The primary source includes
the interviews of Manager, technical hands, and other employees of various
filling stations and petrol pumps. The Manager, technical hands, and other
employees responded to the questions asked by the researchers during the
visit to their company. The researchers discussed with them and they
answered various questions about the activities, specially the process of car
washing of the company. A lot of information was collected from them. The
researchers have also collected information from the customers. The
researchers have also asked questions to the people who might be the
customer in future.
• Secondary sources:
Different Websites of the internet has provided important information about

background, policy, procedure etc. Another important source of information
was the books related to this field. Like “Entrepreneurship Development” by
Nazrul Islam and Muhammad Z. Mamun and “Starting and Managing Small
Business” by H. Kuriloff and Douglas Cloud. These books helped a lot to
understand the different aspects related to this report. Some supporting
papers brochures, different manuals etc were also very helpful.
1.4 Methodology:
The report is mainly based on the primary sources of information. Most of the
information was gathered by interviewing different personnel of various
petrol pumps in Dhaka. The basis of the report are-
• Verbal interview of Manager, technical hands, and other employees of

Santro petrol pump was taken.
• Interview of Manager, technical hands, and other employees of Rupsha
petrol pump was taken.
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• Interview of Manager, technical hands, and other employees of Sonargoan

petrol pump was taken.
• The planning format given by the course instructor was followed by the
researchers and tried to collect all required information.
• Researchers collected company information from company profile & others
related information from these sources.
• Researchers have tried to match the information obtained by interview
with the information gathered from the Internet.
• After getting all the information, an intensive analysis has been conducted
and the report has been submitted in presentable form.
Some part of this report is written from the observation, opinion of

interviewers. Above all the report is based on the perception, imagination,
and creativity and planning of the researchers. Website, books and others
also contributed in some fields. Some assumptions are taken from the
situational aspects.
1.5) Scope of the report:
The business plan of The Luminous™ automatic car washing company has
been prepared for Ms. Jesmin Sultalna (Course instructor of Entrepreneurship
Development and Small Business Management, MHR- 303) as a partial
requirement of the course Entrepreneurship Development and Small Business
Management. So the report mainly provides information about how to start
select and run new business that will provide a service that is innovative. It
provides-
• Development of new business opportunity.
• Evaluating and realizing which business should be chosen.
• Researching the market to know about the prospect of the selected
business.
• Developing a good marketing plan.
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• Information about business goal, marketing plan, production plan, financial
plan.
• Sales forecasting of the company.
Limitations:
Every time there is some problems while preparing a report. In this report the
researchers also faced some problems while gathering information. Most of
the problems are like as follows:
• Company personnel have not disclosed all the information needed to
prepare the report in the best manner due to their company policies.
• The petrol pumps were not ready to disclose their actual costing and profit
margin.
• As it is an innovative service, there is no existing company of exactly this
type of service from whom a practical view can be taken.
• The primary data received from the officials could not be verified and
might be biased.
• The company’s personnel were very much busy. Although they tried a lot,
they were not able to give enough time in the Rush hours. It was another
reason that acted as an obstacle while gathering data.
For these reasons there are some limitations of the report. In spite of all this
limitations the researchers has tried with our best to prepare the report in a
presentable and faithful manner.
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2. Business description segment:
2.1 The company:
2.1.1) General description of the industry:
The world is changing day by day. Modern technologies are coming close to
people’s life more quickly and easily. People are getting more and busier. In
the recent days car is not thought as a luxury item. In this busy life a car is a
necessary item of life. In last 10 years, the population of cars has increased
many folds. So, the Car Wash industry has grown rapidly. In today’s context
the owners themselves drive most cars and would any day prefer to have a
quick car wash, rather than leaving the car the whole day at service station.
It is not convenient for them to leave the car for a whole day to wash the car.
So, rather than the ordinary hand wash, it is necessary to find a way to wash
the car by a sophisticated high impact pressure jet wash technology. Owning
and running a car wash these days, is not just a mere business but, it is one
of the most lucrative and respected business.
2.1.2) What is automatic car wash (Description of the service):
Automatic car wash is the modern way in which the cars are not washed by
hands. In this new technology the cars are washed by a sophisticated high
impact pressure jet wash technology.
2.2.3) The Luminous™ automatic car washing Co. (Description of the

firm):
The Luminous™ automatic car washing co will be a new business opportunity

in Bangladesh. This modern technology of car wash will provide the car
owners a car wash for which they will not need to whit a long time. The
Luminous™ automatic car washing co will wash a car within a few minutes. It
will use latest proven and successful technology in washing vehicles. It is a so
fast process that the owner or drivers need not to leave the car. They can jut
wait a few minutes and take the delivery of a fresh and clean car. In this
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process nobody will use hand to wash the car. The total process is automated
and the machines will do the duty of cleaning instead of the hands of the car
washing people.
At present, we are Bangladesh based service provider of car wash, bus wash
and truck wash. We have also developed a new two wheeler wash system,
which can accommodate all types of two wheeler vehicles. Our equipments
use high-pressure water for cleaning. We also use friction / brush type of
equipments with specially made soft brushes that don’t scratch our
customer’s car paint.
3. Marketing segment:
3.1 Marketing
research:
3.1.1) Market area:
At first we had to survey and collect data to select the market area. We have
surveyed in different places and different people. We took their opinion about
when and where they want the service. We have asked the Municipal
Corporation of our city, if they are planning to start some project which may
affect the car population in our business locality in near future (Building of fly
over, by - pass, etc.). At last we have decided that we will establish our
Luminous™ automatic car washing company on Air port road. Because it a
main road. Owners of the bus, truck, private car, every vehicle, which are our
clients, will be available in this road very much.
This place is also near to Gulshan, Banani, Baridhara, Uttara, Mohakhali etc
areas. We all know that the people living in these areas are almost all rich
and have a standard lifestyle. So, they can afford and they will be willing to
gat our service for their private cars.
Washable dimensions:
Height: 2.5m (98”)
Width: 2.5 m (98”)
Length: 6.7 m (263”)
3.1.2) Market size:
All the people who have a private car and all the bus and trucks are our
target market. As we are the only provider of this service in our country, we
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can have a monopoly market here. We are expecting to have approximately

8000-9000 taka revenue per day from our washing plant.
3.1.3) Target customer:
We are targeting all the people who have a car to be our customer. Like, the
private car owners are our customers. All the private cars in Dhaka city are
our expected targets. We will try to get all of them. Again, we do not only
serve the private cars. We have the capacity of washing the buses and
trucks. All the buses and trucks are also our target customers. They can wash
their car from us within a few minutes. So there will be no waste of time for
the clients.
3.1.4) Competition:
As Luminous™ automatic car washing co. is new and innovative industry in

our country, yet we do not have any competitor exactly like us. But there are
several petrol pumps, which are providing this service manually. These petrol
pumps are our main competitors now.
3.2) Marketing strategy:
3.2.1) Advertising and promotions:
For advertising we have to use several media. Because it’s a new business in
our country and people are not aware of this service yet. So we have to
advertise more to make them aware of this new opportunity of car wash. The
process of our advertising is given below.
We will advertise on television.
We will advertise on newspapers.
We will send leaflets to the transport companies, so that they could be

interested in our service.
We will advertise on the billboards.
3.2.2) Pricing:
As we will provide service to different type of vehicles, the pricing is also

different. The main pricing forms are given below.
For private cars, we will charge Tk. 250 per car.
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For small trucks and buses we will charge Tk.300 per vehicle.
For large trucks and buses we will charge Tk.350 per vehicle.
3.2.3) Sales and credit terms:
No credit is given by the Luminous™ automatic car washing co. After washing
the car, the customer will check the car for his/ her satisfaction. If there is
any problem or objection then that will be solved. And finally the payment
will be done before the delivery of the car.
Though we do not give any concession, but there is an option. That is like a
company agrees to wash their 20 buses 5 times a month, and then there will
be a 10% discount. Also some facilities will be given to the regular customers.
3.3) SWOT analysis:
• Strength:
• It uses latest, proven and successful technology.

• It is a contact less or touches free system.
• It uses internationally available and reliable components.
• It requires a very little time.
• It gives the car a shiny and new look.
• Weakness:
• This is not a well-known process yet.
• This process is little bit costly than hand wash.
• There is only one washing zone. Many cars may find it distant from its way.
• Opportunity:
• There is a scope for expansion of new branches.
• As it is a technology-based age, this process might become more popular.
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• In this new technological time people might find the hand washing system
obsolete very soon and realize the automatic car wash only solution.
• Threat:
• People might not take this new change very soon and they might prefer to
go to the hand wash system.
• It might be very costly to make people aware of this new opportunity.
• Many new companies might find it profitable and enter into the business.
4) Manufacturing segment:
4.1) Location analysis:
Location is a very important factor for establishing a new company. The

location must be convenient and appropriate. Once the locality is selected, 2
- 3 lands will be looked for, where Car Wash may be started.
4.1.1) Land Selection:
Land selection is a critical part of the planning Evaluation should be done o

the basis of shape and space, frontage, topography, street characteristics
etc.
4.1.2) Basis of evaluation of the land:
Evaluation should be done on each piece of land according to following ideal

criterion.
- Shape and space • Rectangular
• Enough space for Customer Car parking and

any future projects if desired.
- Frontage • No physical obstructions like electric or
telephone poles, guy wires, etc.
• Easy turning of car into the land, which out

much guiding hassles
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- Topography • Leveled and even (if uneven, can be

excavated)
• Connecting street must be flat at least 100

feet in each direction. (If Street in not flat,
post big signboards so your car wash is
visible from distance. Motorists can plan
well in advance about having a car wash)
- Street • Busy Street
Characteristics • Turning, corner plot
• No Exit restrictions (One Way etc.)
• The site on the side by which the majority of
the drivers pass on their way home.
• Near a traffic signal
• Near a Shopping Mall, Cinema Theatre, Gas

Station, Car Service Station, Public Place,
etc.
4.1.3) Selected Land:

After analyzing various criterion we have choose land for Luminous™
automatic car washing co. in the area of Air port road in Banani of Dhaka
Metropolitan area.
4.2) Description of premises and facilities:
The premise will be owned by the Luminous™ automatic car washing

company. It will take certain amount of money to by the premise. The land
will buy by the company name. That is Luminous™ itself will be the owner of
that land. The land is well secured by a boundary wall surrounding the project
area. The project area will be fully computerized security system that is all
the security system is totally automated. There are two buildings and a
coupon issue counter in the project area. In the first one the official work will
do. The second one is the worksite. The actual car washing will do over there.
There will be also a cafeteria and customer waiting room in the project area.
There could stand maximum 7 cars at a time in the parking area including a
car which might be in the washing system.
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Lay Out Plan of the Luminous™ Car
4.3) Site requirement:
4.3.1) Space for installation of equipment:
Bay length: 10 m (393.70”)
Bay width: 5 m (196.85”)
Bay height: 4 m (15748”)
[Including safety space of .5 m (20”)]
4.3.2) Space for control room:
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Room length: 3 m
Room Width: 3 m
Room height: 2.5 m
4.3.3) Electricity supply:
• 3 Phase 440 V A.C. 50 Hz.
[Equipment for different power standards can be manufactured if intimated

during placing the order]
4.3.4) Water storage capacity:
• 5000 liters [1000 Gal (UK)]
4.4) Machinery and Equipment:
As it is a totally automated process, we will need many machines. The main

machine will be the machine that will actually wash the cars. There will be
needs for some other additional machines.
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Single Bay Automatic Car Wash Layout
4.5) Raw materials and supplies:
As raw material, we would mainly need the detergent and other washing
solutions. We would like to have a regular supplier of our needed materials.
5) The Management of Luminous™ Co:

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5.1) Ownership:
The Luminous™ automatic car washing co would be structure with the

articles of partnership. All the directors would have equal shares. The
features of the company’s ownership are the following:
• Industry would be created with the article of partnership

• The talent of the partners helps the business to grow
• The business and contracts of the partners have flexibility
• More capital in the industry
• Helps to develop cooperation and natural trust
• There will be unlimited liability on each partner
• Danger of disagreement is there
-- Divided authority
5.2) Organizational structure:
The specialty of the Luminous™ automatic car washing co is it is fully

automated. So a very little number of employees are needed to run the
business. The organizational structure is given below:
Managing Director
(Tahmina Haque)
Director, HR Director, Director, Marketing Director,

(Syeda Israt Finance & (Rahat Alam & Operational
Afroz) Accounts Mehedi Alam) (Samsul
(Galib Farrokh) Islam)
Manager Machine
, Operato
Account r
Assistant to the
operator-2
person
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In addition there will be permanent two cleaner and two watchmen and also
some temporary worker who will work on daily basis.
5.3) Management Team:
The six founders of the Luminous™ automatic car washing Company will be
the main authority of the company. All of them are the member of board of
directors and Ms. Tahmina Haque will be the Managing Director of the
company.
Mr. Galib Farrokh will be the director of Finance and Accounts Department. All
the accounts and financial activities will be in his charge. Budget planning,
insurance, dealing with bank, financial forecasting etc will be his duty. By
owning 16% share, he is also one of the owners of the Luminous™ automatic
car washing co. The person looks after the entire finance division. Takes
assistances from finance manager and the chief accountant to prepare
financial planning for the company and helps the company to maintain good
relation with bank and other financial institutions.
Mr. Rahat Alam and Mr. Mehedi Alam will be the marketing director of the
Luminous™ automatic car washing company. They will look after the
marketing as well as the advertising and sales sector. Both of them own 16%
of the company each. They are the persons in charge of the marketing
division. They communicate and maintain the relationship with related
industries as well as different most important clients around the country.
Negotiating of business deals is also their responsibility.
Ms. Syeda Israt Afroz will be the Director, Human Resource. She will be in
charge of the employees. The recruitment, selection, compensation and other
activities related to the human resource will be in her charge. She is the
owner of 16% of the Luminous™ automatic car washing company’s share.
She is the person responsible for the H.R department. He with the help of
managers and deputies chocks out the H.R processes of the entire industry.
Mr. Samsul Islam looks after the operational activities. Actually he will look
after the operations of washing and also supervise the employees. He will
also own 16% of the share. This person is in charge of the daily production
operations.
And finally Ms. Tahmina Haque will be the Managing Director of the
Luminous™ automatic car washing co by owning 20% shares. She would co-
ordinate all the departments and performs the decision making task mainly.
She will also take part in the financial activities. She is the most important
person in the company. She helps to control and coordinate other managers
and evaluates the performances of other managers.
All of the six members of managing committee of the Luminous™ automatic

car washing company are graduates of Business Administration with different
major subjects.
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5.4) Legal Structure:
The Luminous™ automatic car washing company will establish under the
company law (1994) which will fully owned by the six members of the board
of directors. They are the only shareholder and beneficiary of the company.
No share will offer to the share market as it will be a private limited company.
No full time legal advisor will be appointed. They will hire when it is
necessary. Like, in the beginning a legal firm will be hired to complete the
formalities to establish the company.
All employees are hired on a permanent basis. All employees have an

agreement with the company about their service. Some workers will be hired
on daily basis when the company will need.
5.5) Employee Agreement:
Not long ago, key personnel could be hired with a handshake; the unwritten
compact between employer and employee included mutual expectations of
loyalty, trust and long-term commitment. Now, as companies find they must
depend on increasingly transient executives, managers and technical
employees, all parties are asking for protection in the business equivalent of
the “prenuptial” – the employment agreement.
Employment agreements take many forms – from “sign and return” offer
letters to fully comprehensive contracts. What these agreements should
accomplish – to one extent or another – is to allow the parties to begin and
end the employment with a clear understanding of their rights and
responsibilities. Set forth below are three types of terms employment
agreements might include:
Those setting forth the expectations of the parties regarding the

employment, e.g., job duties and compensation; those intended to protect
the company’s interests; and those dealing with terminations, with and
without cause.
Getting It Right at the Outset An employment agreement should reflect

accurately the understandings of the parties upon which the employment
relationship is based. Clarification of open or uncertain issues is in the early
stages.
While good feelings prevail is much easier than sorting out vagueness during
a difficult exit. Note that the offer letter is often only a shorthand statement
of the terms. Additional thinking, and writing, is often required to produce a
satisfactory definitive agreement. Key areas to consider include:
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• Title and Responsibilities:
The agreement of our company will indicate the employee’s title,

responsibilities, and line of report. If these could change, the agreement
should say how this would be implemented, and what the outer limits are: “or
such other work suitable for a senior executive as the board of directors may
request.” Understandings regarding Board of Director participation should
also be spelled out.
o Relocation:
The employment may require relocation; the agreement of our organization

will include terms regarding the payment of, e.g., pre-move long distance
commuting and temporary housing costs, moving costs and the costs of
selling one home and purchasing another. As an alternative, the employer
may offer a lump sum amount or cap.
o Compensation and Incentives:
We will accurately state the initial compensation package. It will be adjusted

with the base salary. If the employee is eligible for one or more bonuses then
we will provide that with the salary.
o Benefits and Fringes:
Our agreement will little more than state the amount of annual vacation, and
assure provision of health, disability, life insurance coverage in an employer-
sponsored program, as well as participation in its retirement benefits.
However, particularly for the senior executive, more detail is required.
Executive benefits may include enhanced life and disability insurance
coverage, defense and indemnification coverage, participation in non-
qualified retirement plans, change of control protection and so forth.
5.6.1) Protecting the Company’s Interests:
The following are often found in employment agreements used by companies

relying on employees with specialized knowledge or abilities.
• Protection of Confidential Information:
Key employees are often required to protect and not disclose, or use
detrimentally, the employer’s confidential information. The protection always
runs during and generally after employment.
The definition of confidential information may vary but it generally includes

trade secrets and all items that confer competitive advantage, such a
customer lists, pricing information, know-how, technical information, and
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business plans. Trade secrets are protecting able even if the underlying
information would not meet standards of copyright or patent protection. Once
public, the information is, of course, no longer confidential, and so the
employee should not be bound to protect information that becomes public
through no fault of the employee. Agreements may contain “carve-outs”
addressing ways confidential information may become public, and thus
releasing the employee from the obligation to protect that information.
• Assignments of Inventions:
It’s no secret that the competitive advantage of many companies depends on

the work of their technical employees, such as engineers, scientists, analysts,
and designers, who “add value” to the employer’s enterprise by means of the
intellectual property (IP) they create while employed. Under patent and
copyright law, the employees own their IP unless they assign their
“inventions” to the employer or agree that original works of authorship were
done for the employer’s benefit. An employment agreement will usually
contain elaborate provisions for assuring that the IP becomes the exclusive
property of, or is licensed to, the employer and that the employee assist the
employer in perfecting the IP protection. A carve-out of “prior inventions” and
those unrelated to the employer’s business should be considered. The savvy
technical employee is likely to demand such change. Conversely an
assignment of inventions may include a “trailer” post-employment whereby
relevant inventions occurring during, say, the first year after employment is
presumed to be the IP of the former employer unless the employee can rebut
the presumption. This should be carefully analyzed by an employee
contemplating starting or joining a company in an arguably related technical
business.
• Covenants Not to Compete:
Key employees are often asked to provide covenants not to compete. During
employment, the covenant is consistent with an employee’s duty of loyalty to
the employer, and breach may serve as grounds for termination for cause.
More controversial are the post-employment covenants, as these may in
effect restrict an employee’s access to a new job. However, an employer may
impose reasonable limitations such that its trade secrets and confidential
information not be used competitively against it. Both the employer and
employee benefit from analyzing realistically the scope of a post employment
covenant. If the employer insists on, or carelessly permits, protection so
broad so as perhaps to prevent the employee from earning a living, the
covenant may not be enforceable. Courts tend to side with employees unless
the employer can show that the employee has a specialized talent or
knowledge that arguably could be used to its competitive detriment.
Furthermore, covenants are more likely to be enforced if narrowly drafted,
e.g., to prevent an employee from soliciting certain customers or clients,
from working for a direct competitor, and/or from working within a specific
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geographical territory for a limited period of time. Unless the post-

employment covenant is part of the bargain when starting employment, it
should be supported by payment (sometimes referred to as “consideration”)
such as severance pay, if agreed to on exiting employment.
5.6.2) Ending the Employment:
In addition to the post-employment effect of non-competes and assignment

of inventions discussed above, employment agreements often address the
triggering event for termination.
o Termination for Convenience:
Either side may wish to be able to “walk away” from the relationship merely
by giving notice, a so-called termination “without cause”. This tends to
benefit an employer as it can terminate on short notice without stating a
reason, perhaps because of change in a company’s strategy, or because the
employee’s performance was marginal. Employees often negotiate for a
period of notice and severance pay. If the employee exits during the
employment term, the severance is typically forfeited, although some
agreements provide that a significant reduction in responsibility is effectively
a termination and grounds for the employee to leave without forfeiting
severance.
o Termination for Cause:
Provisions permitting termination for cause based on an employee’s

egregious misconduct (embezzlement, fraud), substance abuse or criminal
convictions are not typically controversial. But where the grounds are poor
performance (personal or corporate), disclosure or misuse of confidential
information, failure to execute directives, or engagement in competitive
activity, the employee may request written notice, opportunity to cure and
perhaps, if the employee is in senior management, the opportunity to be
heard in person by the board of directors. Dispute Resolution and Negotiation
Employers may include a waiver of the right to a jury trial in the event of a
dispute, preferring arbitration because this is considered less risky than being
exposed to jurors who may empathize with the employee, or out of a concern
that litigation is slow and expensive. If arbitration is the chosen method, the
parties should consider, e.g., how it is started, where it occurs, how the
arbitrator(s) is/are chosen, and who pays the expenses. Employment
agreements, like pre-nuptial agreements, must be negotiated gingerly.
Attorney involvement is sometimes more effective when indirect, i.e.,
coaching a client rather than directly negotiating with opposing counsel.
Overt displays of mistrust and over-reaching may undermine the relationship
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before the “marriage” has even begun. However, as many employers, and
employees, have learned, a failure to come to terms beforehand can lead to
time-wasting controversy during the employment and, all too often, litigation
after it has ended.
5.7) Board of directors:
The six founder members are the member of board of directors. They have
the core responsibility to take any decision about the Luminous™ automatic
car washing company. The board of directors of the company will consists of
six main people.
The Directors are:
¥ The Managing Director

¥ Director, Human Resource
¥ Director, Marketing and Sales
¥ Director, Operations
¥ Director, Finance & Accounts
5.8) Supporting professional services:
The Luminous™ automatic car washing company will not employ any full time
audit firm. The Luminous™ automatic car washing company will hire the
Audit companies for their annual report ant budgeting on a contractual basis.
No full time legal advisor will be appointed. They will be hired when it is
necessary. Like, in the beginning a legal firm was hired to complete the
formalities to establish the company.
The company initially will like to hire professional people as consultants for
gather their valuable advice. The company also would think to higher quality
professional in different needs both from local and foreign fields.
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6) Process of providing service:
The process of the service will be very simple. The cars will enter into the
machine, and water will be sprayed. After that the machine will wash the car
with necessary washing solutions and detergents. Then the car will be
washed again by water. Finally the car will be dried by hot air and the car will
come out, neat and clean.
6.1) Automatic high-pressure car wash:
The Luminous™ automatic car washing co has a fully automatic system. It

has a three step washing sequence. The first pass is high-pressure pre- wash
which has wetting chemicals to wet dirt on car surface. The second pass is
soap application process by special nozzles. The third pass is high-pressure
rinse, which removes all the dirt, off the car surface. The horizontal water
nozzles bank follows the contour of the vehicle. A high-pressure plunger
pump assists the main washing arch for cleaning the tire and rocker panels.
6.2) Pre wash arch:
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This is special spray arch, equipped with low discharge, wide coverage
nozzles. The pre wash arch sprays water initially over the vehicle to soak the
hard mud stains, salt deposits, bird drippings etc.
6.3) Soap system:
Soap system sprays soap and chemical formulation over the car surface.
Soap spraying assists the high-pressure washing and enhances the cleaning
value.
6.4) Contour Following Nozzles:

The horizontal bank of nozzles follows the contour of the car, whichever it is.
The horizontal bank always maintains, safe 300 mm distance away from the
car surface. The water jets always adjust their angle according to the vehicle,
i.e. at beginning; the jets face the bonnet and the wind shield for better
cleaning action and so on.
6.5) Wheel and rocker panel wash system:
Special high-pressure nozzles located at wheel level remove darts from hard
to clean areas near the wheels. Special plunger pump, which enhances the
pressure to knock off dirt from wheel and rocker panel areas.
6.6) Wax systems:
After the high pressure rinsing is over, wax is sprayed on the vehicle surface
to give them a shiny finish. There are two types of wax systems- silicon wax
system and triple foam wax system. Any one can be provided as needed.
These two systems are described in the next page:
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Silicon wax system: silicon wax is sprayed on the car surface. The silicon
wax is sprayed all over the car using special atomizing nozzles, after the
washing cycle. Although wax formulation gives instant shine and protection,
in addition, it softens the hard rubber wipers and beading of the car.
Secondly it is water repellant and hence avoids staining of glasses due to
droplet formulation.
Triple foam wax system: Triple foam wax commonly known as tri wax,
which contains three-colored wax, which is sprayed on the vehicle. The foam
created on the vehicle surface gives a sense of satisfaction to the customer,
for which he is paying for. The triple foam wax is sprayed by special foam
generating nozzles. A high-pressure pass washes off the foam created on the
vehicle surface.
7. Critical Risks Segment:
7.1. Potential Problems:
The potential problems for the industry are the following-
• Unknown field: the main problem that we will face is the problem of
lack of popularity. The automatic car washing is not very much popular
by now. Many people even do not know what the automatic car wash
is. So it will be difficult to make them aware of our service.
• Unstable Political situation and the affects: The country of Bangladesh

is not politically stable. There are often strikes. So it may cause risk for
us.
• Unskilled work force: At the initial stages the industry may not find
proper skilled workers or even labors to operating purpose. It may
cause some negative changes to the companies desired output.
• Entering the market: The target group of customer for the company
will be available from the local area. We expect that we will be able to
reach the desired segments, but the volume that we have estimated
for our service may not match initially. On the other hand, the other
normal car washing companies will never let us have any advantage.
So we have to be very careful and aware about the steps of the
marketing.
• Transportation Problem: Our country has got little stability on

situations those goes around. The main transportation for the industry
is the land transportation; our land transportations because of the
labor unions related to this often faces strikes. This may cause us very
harmful financial losses. To survive the competition our services needs
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to be accurate and proper, for the strike problems we may not be able
to get customers within schedule time.
7.2 Alternative courses of action:
To protect the firm from all of these difficulties we will be following steps:
• We should advertise more

• We make people aware of our service
• We should provide adequate training to the operators.
7.3 Long range future plans:
In future we have a plan to have at least 7 automatic car washing section in

seven different areas of the city. After that we would try to make it popular in
the other cities and we also have a plan to open new branches in those cities.
8) Financial Management:
The fields of finance is closely related to economics and accounting. And in

the Luminous™ car washing company, financial analysis and the keeping
records of daily transactions will be done by the finance and accounts
department.
The main function of the finance and accounts department will be the too
keep records of daily cash transaction, budget construction, ratio analysis,
preparing cash flow of income statement, balance sheet, maintaining of cash
book, accounts payable records, loan management, customer billing records,
payroll records etc.
8.1) Required budget for the proposed business plan:
We have estimated that the required capital for the automatic car washing
plant need around Taka: 25,000,000. And most of the amount needed to be
financed will be raised by the owners of the Luminous™ Automatic Car
Washing Co.; related data are shown in the table below:
Amounts needed to be Invested Tk: 25,000,000
Investment by the Owners Tk:20,000,000

Borrowing from Bank Tk: 5,000,000
(Financial Institution)
Total Amount to be Tk:25,000,000
Invested
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8.2) Use of funds:
For the 1st year most of the fund will be used for starting, installation and
beginning of the project. These includes, land acquisition, purchasing of
equipments, license & tax insurance premium, legal and audit fees and other
operating expenses. We will spend most of the amount of money in
acquisition of land and in purchasing equipment of washing plant. The
amounts are given below:
Acquisition of land Tk: 13,000,000

Purchase equipment for washing plant Tk: 10,000,000
Total Tk: 23,000,000
8.3) Financial Forecast:
The most comprehensive means of financial forecasting is to develop a series

of projected, financial statements. Now here we are going to present our
projected cash flow statement for five years, projected income statement for
five years, and projected balance sheet of five years.
8.3.1) Cash Flow Statement:
Cash Flow Statement
Luminous™ Automatic Car washing Co.
For 1st year
Cash Receipts (Cash January February March April

In)
Opening cash 25000000 2021000 2095500 2178500
balance
Cash Sales 150000 170000 180000 200000
Total Cash In 25150000 2191000 2275500 2378500
(-) Cash
Disbursement (cash
out)
Management Salaries 17000 17000 17000 17000
Other salaries & 18000 18000 18000 18000
wage
Legal & Audit Fees 10000 -- -- --
Utilities 1000 1500 1500 2000
Telephone 500 500 500 500
Repair & 500 500 1000 1000
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Maintenance
Licenses & Tax 25000 -- -- --
Insurance 2000 2000 2000 2000
Other operating exp. 5000 6000 7000 8000
Payment for 10000000 -- -- --
purchasing
equipment
Payment for 13000000 -- -- --
acquisition of land
Interest expenses 50000 50000 50000 50000
(12%)
Income Tax (25%) -- -- -- --
Dividends Paid -- -- -- --
Total Cash Out 23129000 95500 97000 98000
Surplus/Deficit 2021000 2095500 2178500 2280500

Closing Cash
Balance
* The Luminous™ Co. desires a minimum monthly ending cash balance of

Tk.2000000
Cash flow statement will continue in next page.
Cash Flow Statement
For 1st year
Cash Receipts (Cash May June July August

In)
Opening cash 2280500 2380500 2489000 2586000
balance
Cash Sales 200000 210000 200000 220000
Total Cash In 2480500 2590500 2689000 2806000
(-) Cash
Disbursement (cash
out)
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Other salaries & 18000 18000 18000 18000
wage
Legal & Audit Fees -- -- -- --
Utilities 2000 2000 2500 3000
Telephone 500 500 500 500
Repair & 1500 2000 2000 3000
Maintenance
Licenses & Tax -- -- -- --
Insurance 2000 2000 2000 2000
Payment for -- -- -- --
purchasing
equipment
acquisition of land
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 100000 101500 103000 105000
Surplus/Deficit 2380500 2489000 2586000 2701000

Closing Cash
Balance
Cash Flow Statement
For 1st year
Cash Receipts (Cash Septembe October Novembe Decembe Total

In) r r r
Opening cash balance 2701000 2814000 2906000 3006000 2500000
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0
Cash Sales 220000 200000 210000 220000 2380000
Total Cash In 2921000 3014000 3116000 3226000 2738000
0
(-) Cash
Disbursement (cash
out)
Management Salaries 17000 17000 17000 17000 204000
Other salaries & wage 18000 18000 18000 18000 216000
Legal & Audit Fees -- -- -- -- 10000
Utilities 4000 4000 4500 4500 32000
Telephone 500 500 500 500 6000
Repair & Maintenance 3000 3500 3500 3000 24500
Licenses & Tax -- -- -- -- 25000
Insurance 2000 2000 2000 2000 24000
Other operating exp. 12500 13000 14500 16500 124000
Payment for -- -- -- -- --
purchasing
equipment
Payment for -- -- -- -- --
acquisition of land
Interest expenses 50000 50000 50000 50000 600000
(12%)
Income Tax (25%) -- -- -- 778625 778625
Dividends Paid -- -- -- 300000 300000
Total Cash Out 107000 108000 110000 1190125 2534412
5
Surplus/Deficit 2814000 2906000 3006000 2035875 2035875
Closing Cash
Balance
8.3.2) Income Statement:
Income Statement
For 1st year
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Particulars Amounts in Taka

Service Revenues: 2380000
Operating Expenses:
Management Salaries 204000
Other salaries & wage 216000
Legal & Audit Fees 10000
Utilities 32000
Telephone 6000
Repair & Maintenance 24500
Licenses & Tax 25000
Insurance 24000
Other operating exp. 124000
Total Operating Expenses 665500
Operating Profit (EBIT) 1714500
Interest Expense (12%) 600000
Earnings before taxes (EBT) 1114500
Taxes (25%) 778625
Earnings after taxes (EAT) 335875
Dividends paid 300000
Increase in retained earnings 35875
8.3.3) Balance Sheet:
Balance Sheet
For 1st year
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Assets Amounts In Taka

Cash 2035875
Land 13000000
Washing Equipments 10000000
Total Assets 25035875
Liabilities & Owner’s Equity

Borrowing from Bank 5000000
Owner’s Equity 20000000
(+) Increase in Retained Earnings 35875
Total Liabilities & Owner’s Equity 25035875
Cash Flow Statement
For 2nd year

In)
Opening cash 2035875 2129875 2241875 2342875
balance
Cash Sales 210000 230000 220000 210000
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Total Cash In 2245875 2359875 2461875 2552875
(-) Cash
Disbursement (cash
out)
Other salaries & 19000 19000 19000 19000
wage
Utilities 4500 5000 5000 5500
Telephone 1000 1000 1000 1000
Repair & 2500 3000 3000 3500
Maintenance
Insurance 2000 2000 2000 2000
purchasing
equipment
acquisition of land
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 116000 118000 119000 121000
Surplus/Deficit 2129875 2241875 2342875 2431875

Closing Cash
Balance
Cash Flow Statement
For 2nd year

In)
Opening cash 2431875 2531875 2639875 2756875
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balance
Cash Sales 220000 230000 240000 240000
Total Cash In 2651875 2761875 2879875 2996875
(-) Cash
Disbursement (cash
out)
Other salaries & 19000 19000 19000 19000
wage
Utilities 5000 5500 6000 6000
Telephone 1000 1000 1000 1000
Repair & 3000 3500 4000 2000
Maintenance
Insurance 2000 2000 2000 2000
purchasing
equipment
acquisition of land
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 120000 122000 123000 122000
Surplus/Deficit 2531875 2639875 2756875 2874875

Closing Cash
Balance
Cash Flow Statement
For 2nd year
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In) r r r
Cash Sales 250000 240000 250000 260000 2800000
Total Cash In 3124875 3242875 3372375 3509875 4835875
(-) Cash
Disbursement (cash
out)
Legal & Audit Fees -- -- -- -- --
Utilities 5500 5000 5500 6000 64500
Telephone 1000 1000 1000 1000 12000
Licenses & Tax -- -- -- -- --
Insurance 2000 2000 2000 2000 24000
Payment for -- -- -- -- --
purchasing
equipment
Payment for -- -- -- -- --
acquisition of land
(12%)
Income Tax (25%) -- -- -- 846500 846500
Dividends Paid 300000 300000
Total Cash Out 122000 120500 122500 1270500 2596500
Surplus/Deficit 3002875 3122375 3249875 2239375 2239375

Closing Cash
Balance
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Income Statement
For 2nd year

Operating Expenses:
Utilities 64500
Telephone 12000
Insurance 24000
Interest Expense 600000
Taxes (25%) 846500
Balance Sheet
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For 2nd year

Cash 2239375
Land 13000000

Cash Flow Statement
For 3rd year
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In)
Opening cash 2239375 2382375 2534375 2685375
balance
Cash Sales 270000 280000 280000 270000
Total Cash In 2509375 2662375 2814375 2955375
(-) Cash
Disbursement (cash
out)
Other salaries & 20000 20000 20000 20000
wage
Utilities 6000 6500 6500 7000
Telephone 1000 1000 1000 1000
Repair & 3000 3500 3500 4000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (10%) -- -- -- --
Total Cash Out 127000 128000 129000 130000
Surplus/Deficit 2382375 2534375 2685375 2825375

Closing Cash
Balance
Cash Flow Statement
For 3rd year
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In)
Opening cash 2825375 2975375 3107375 3238375
balance
Cash Sales 280000 260000 260000 250000
Total Cash In 3105375 3235375 3367375 3488375
(-) Cash
Disbursement (cash
out)
Other salaries & 20000 20000 20000 20000
wage
Utilities 6000 5000 5000 4000
Telephone 1000 1000 1000 1000
Repair & 4000 4000 4000 4000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 130000 128000 129000 127000
Surplus/Deficit 2975375 3107375 3238375 3361375

Closing Cash
Balance
Cash Flow Statement
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For 3rd year

In) r r r
Cash Sales 250000 270000 270000 280000 3220000
Total Cash In 3611375 3756375 3898375 4049375 5459375
(-) Cash
Disbursement (cash
out)
Legal & Audit Fees -- -- -- 10000 10000
Utilities 3000 4000 5000 5000 63000
Telephone 1000 1000 1000 1000 12000
Insurance 2000 2000 2000 2000 24000
(12%)
Income Tax (25%) -- -- -- 977000 977000
Dividends Paid -- -- -- 400000 400000
Total Cash Out 125000 128000 129000 1519000 2929000
Surplus/Deficit 3486375 3628375 3769375 2530375 2530375

Closing Cash
Balance
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Income Statement
For 3rd year

Operating Expenses:
Utilities 63000
Telephone 12000
Insurance 24000
Taxes (25%) 977000
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Balance Sheet
For 3rd year

Cash 2530375
Land 13000000

Cash Flow Statement
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For 4th year

In)
Opening cash 2530375 2666375 2777375 2897375
balance
Cash Sales 270000 240000 250000 230000
Total Cash In 2800375 2906375 3027375 3127375
(-) Cash
Disbursement (cash
out)
Other salaries & 21000 21000 21000 21000
wage
Legal & Audit Fees -- -- --
Utilities 4000 3000 3000 3000
Telephone 1000 1000 1000 1000
Repair & 3000 4000 4000 3000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 134000 129000 130000 127000
Surplus/Deficit 2666375 2777375 2897375 3000375

Closing Cash
Balance
Cash Flow Statement
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For 4th year

In)
Opening cash 3000375 3111375 3222375 3341375
balance
Cash Sales 240000 240000 250000 240000
Total Cash In 3240375 3351375 3472375 3581375
(-) Cash
Disbursement (cash
out)
Other salaries & 21000 21000 21000 21000
wage
Utilities 4000 3500 4000 3500
Telephone 1000 1000 1000 1000
Repair & 3000 3000 4000 4000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 129000 129000 131000 130000
Surplus/Deficit 3111375 3222375 3341375 3451375

Closing Cash
Balance
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Cash Flow Statement
For 4th year

In) r r r
Cash Sales 250000 260000 260000 270000 3000000
Total Cash In 3701375 3830875 3960375 4097875 5530375
(-) Cash
Disbursement (cash
out)
Legal & Audit Fees -- -- -- 10000 10000
Utilities 4000 4000 5000 5000 46000
Telephone 1000 1000 1000 1000 12000
Insurance 2000 2000 2000 2000 24000
(12%)
Income Tax (25%) -- -- -- 956000 956000
Dividends Paid -- -- -- 400000 400000
Total Cash Out 130500 130500 132500 1500500 2933000
Surplus/Deficit 3570875 3700375 3827875 2597375 2597375

Closing Cash
Balance
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Income Statement
For 4th year

Operating Expenses:
Utilities 46000
Telephone 12000
Insurance 24000
Taxes (25%) 956000
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Balance Sheet
For 4th year

Cash 2597375
Land 13000000

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Cash Flow Statement
For 5th year

In)
Opening cash 2597375 2726375 2854375 2975375
balance
Cash Sales 260000 260000 250000 270000
Total Cash In 2857375 2986375 3104375 3245375
(-) Cash
Disbursement (cash
out)
Other salaries & 21000 21000 21000 21000
wage
Utilities 4000 5000 4000 5000
Telephone 1000 1000 1000 1000
Repair & 3000 3000 3000 5000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 131000 132000 129000 135000
Surplus/Deficit 2726375 2854375 2975375 3110375

Closing Cash
Balance
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Cash Flow Statement
For 5th year

In)
Opening cash 3110375 3240375 3362375 3486375
balance
Cash Sales 260000 250000 250000 240000
Total Cash In 3370375 3490375 3612375 3726375
(-) Cash
Disbursement (cash
out)
Other salaries & 21000 21000 21000 21000
wage
Utilities 5000 4000 4000 3000
Telephone 1000 1000 1000 1000
Repair & 2000 2000 3000 2000
Maintenance
Insurance 2000 2000 2000 2000
(12%)
Income Tax (25%) -- -- -- --
Total Cash Out 130000 128000 126000 124000
Surplus/Deficit 3240375 3362375 3486375 3602375

Closing Cash
Balance
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Cash Flow Statement
For 5th year

In) r r r
Cash Sales 250000 250000 270000 280000 3090000
Total Cash In 3852375 3976375 4117375 4265375 5687375
(-) Cash
Disbursement (cash
out)
Legal & Audit Fees -- -- -- 10000 10000
Utilities 4000 4000 5000 6000 53000
Telephone 1000 1000 1000 1000 12000
Insurance 2000 2000 2000 2000 24000
(12%)
Income Tax (25%) -- -- -- 1030000 1030000
Dividends Paid -- -- -- 300000 300000
Total Cash Out 126000 129000 132000 1475000 2897000
Surplus/Deficit 3726375 3847375 3985375 2790375 2790375

Closing Cash
Balance
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Income Statement
For 1st year

Operating Expenses:
Utilities 53000
Telephone 12000
Insurance 24000
Taxes (10%) 1030000
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Balance Sheet
For 1st year

Cash 2790375
Land 13000000

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8.8) Break-even analysis:
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Ratio Analysis:
• For 1st year: Analysis:
1. Current Ratio: Tk: 2035875/5000000=0.41:1
2. Quick Ratio: Tk: 2035875/5000000=0.41:1
3. Debt Equity Ratio: Tk: 5000000/20000000=0.25:1
4. Operating Expense Ratio: Tk: 1114500/2380000=0.46:1
5. Return on Asset: Tk: 35875/25035875=0.0043:1
6. Return on Equity: Tk: 35875/20000000=0.0079:1
• For 2nd year:
1. Current Ratio: Tk: 2239375/5000000=0.44:1
2. Quick Ratio: Tk: 2239375/5000000=0.44:1
• For 3rd year:
1. Current Ratio: Tk: 2530375/5000000=0.51:1
2. Quick Ratio: Tk: 2530375/5000000=0.51:1
• For 4th year:
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1. Current Ratio: Tk: 2597375/5000000=0.52:1
2. Quick Ratio: Tk: 2597375/5000000=0.52:1
• For 5th year:
1. Current Ratio: Tk: 2790375/5000000=0.56:1
2. Quick Ratio: Tk: 2790375/5000000=0.56:1
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Car Wash Business Plan

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Car Wash Business Plan

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Business Plan

In order to prepare this business plan it was necessary to survey several

Researchers have tried to prepare a business plan in such a way that it

The objective of the business plan is to involve the researchers in practical

researchers to make reports in future for other companies. Each of the

To prepare a business plan the researchers need much information. The

Different Websites of the internet has provided important information about

• Verbal interview of Manager, technical hands, and other employees of

• Interview of Manager, technical hands, and other employees of Sonargoan

Some part of this report is written from the observation, opinion of

1.5) Scope of the report:

• Development of new business opportunity.

• Evaluating and realizing which business should be chosen.

• Researching the market to know about the prospect of the selected

• Developing a good marketing plan.

• Information about business goal, marketing plan, production plan, financial

• Sales forecasting of the company.

2. Business description segment:

2.1 The company:

2.1.1) General description of the industry:

2.1.2) What is automatic car wash (Description of the service):

2.2.3) The Luminous™ automatic car washing Co. (Description of the

The Luminous™ automatic car washing co will be a new business opportunity

3.1.1) Market area:

Height: 2.5m (98”)

Width: 2.5 m (98”)

Length: 6.7 m (263”)

3.1.2) Market size:

can have a monopoly market here. We are expecting to have approximately

3.1.3) Target customer:

As Luminous™ automatic car washing co. is new and innovative industry in

3.2) Marketing strategy:

3.2.1) Advertising and promotions:

We will advertise on television.

We will advertise on newspapers.

We will send leaflets to the transport companies, so that they could be

We will advertise on the billboards.

As we will provide service to different type of vehicles, the pricing is also

For private cars, we will charge Tk. 250 per car.

3.2.3) Sales and credit terms:

3.3) SWOT analysis:

• It uses latest, proven and successful technology.

4.1) Location analysis:

Location is a very important factor for establishing a new company. The

4.1.1) Land Selection:

Land selection is a critical part of the planning Evaluation should be done o

4.1.2) Basis of evaluation of the land:

Evaluation should be done on each piece of land according to following ideal

- Shape and space • Rectangular

• Enough space for Customer Car parking and

• Easy turning of car into the land, which out

- Topography • Leveled and even (if uneven, can be

• Connecting street must be flat at least 100

• Near a Shopping Mall, Cinema Theatre, Gas

4.1.3) Selected Land:

4.2) Description of premises and facilities:

The premise will be owned by the Luminous™ automatic car washing

Lay Out Plan of the Luminous™ Car

4.3) Site requirement:

4.3.1) Space for installation of equipment:

Bay length: 10 m (393.70”)

Bay width: 5 m (196.85”)

Bay height: 4 m (15748”)