bus 202 auto clean(report)2

8/13/2019 BUS 202 Auto Clean(Report)2

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Dear Mr. Muhit Sarkar

I write to request for a small business loan of TK 1,000,000 for the start-up of my business. urbusiness is a !ew "ar #ashin$ "ompany %irst time here in &an$la'esh as (uto "lean "ar #ash.

ur primary tar$et market for this business will be the market )ar owners near the area of our )ar wash

who will stop by to )lean their lo*e' )ars an' automobiles. These tar$ete' )ustomers are mainly

lo)ate' on the +ro$oti Saroni oa' near &ashun'hara ate.

ur maor )ompetitors are (uto tunin$, (ftab "ar wash an' Dhaka )ar wash be)ause they are operatin$

in the same business en*ironment with us an' are also intereste' in the same )ustomers/ but our

)ompetiti*e e'$e is that they 'o not operate in the same s)ale of operation with us be)ause of their

mo'ern equipments an' epertise. +art of our )ompetiti*e e'$e o*er the aforementione' )ompetitors,

in the first two23 years of our operation/ is to only spe)iali4e in the "ar #ashin$ 'epartment.

The total total in*estment nee'e' for the startup of this business is TK 2,000,000, but our equity

)ontribution is TK 500,000 whi)h is 256 of the loan require' an' the rest 256 by another sin$le

in*estor. Therefore, we nee' the balan)e of TK 1,000,000 from your bank as loan with an interest rate of

206 to be repai' within nineteen173 months after an epe)te' moratorium of fi*e53 months.

The loan require' will enable us a)quire the ne)essary washin$ equipments, sto)k our in*entory, pay

staff salary an' take )are of our operatin$ a)ti*ities an' epenses for four83 months. The loan will also

help me meet with my tar$ets, whi)h are to $enerate a $ross profit of TK22,000,000, at the en' of the

first two23 years of our operations.

(lso atta)he' with this letter is a )opy of my business plan, to ba)k up the loan request. +lease feel free

to )onta)t me at my 'ire)t mobile number9 ::01;


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Table of "ontents9

1.>e)uti*e Summary

2.&usiness an' Des)ription

?.+ro'u)t an' Ser*i)e

8.Mana$ement

5.%inan)ial +lan

;.&usiness >n*ironmental an' Market (nalysis


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(uto "lean "ar #ash

>e)uti*e Summary

Auto Clean is going to be a dynamic car washing firm that will provide automatic car care

service to the members of the Baridhara-Bashundhara community. The firm will be situated

near the Bashundhara gate beside the Progoti Saroni Road. t will e!ceed e!pectations

providing prominent services to its customers. And its customers are the local community

including "S#$ #B%s students & faculties.

This firm will be financed by its ' owners & an investor. (e are pledging )'* of the

company stoc+ and loo+ing for an investor to collect rest of the stoc+ ,)'* and the rest

,'* by /SBC Ban+ Bangladesh. So$ Auto Clean is going to be a partnership

organi0ation. t will be dedicated to offer the highest 1uality car wash service at a

reasonable cost.

Auto Clean will have a strong management team. (e$ the five partners of Auto Clean$ will

loo+ after five different departments of that firm. n return$ we will divide income e1ually

after paying 2* revenue to our investor.

3ur e!clusive research indicates that the inclement climate of 4ha+a city will support year-

round sales. 5urther$ Auto Clean6s location and mar+eting campaign will attract the local

residents$ university students$ faculty and the businesses. Auto Clean hope to be

succeeded as it will be near to its target customers. 7oreover$ we have no true competitor

to challenge our firm. There are some small car repairing shops & petrol pumps which give

car washing services. These services are limited to outdated tunnel and hand-based wash

whereas Auto Clean boasts of automatic$ touchless & spot-free washing systems.

Auto Clean Car Wash Page 3 of

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&usiness Des)ription

wnership

As we told$ Auto Clean will be created as a partnership organi0ation. t will be owned by

five partners. They are- 2. Rubayath "amibur Ra00a+

). Aminur Rasul

8. A0i0ul /a+im

9.7r.: '.7r.;

There is also an investor who will invest )'* of the company stoc+ and will get 2*

revenue in return. Then the owners will divide their net revenue e1ually.

The &usiness

Auto Clean will establish its first location beside the Progoti Saroni Road$ which is the

busiest street in 4ha+a. There will be a canteen and AT7 booth ad


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The +ro'u)t Ser*i)e3

3ur goal is to provide speciali0ed car care service according to our customer%s need. (e

have researched what customers want or desire actually and have designed our service to

fulfill their wishes. (e will also maintain a program to customi0e our service for the

upcoming future. The following chart encloses our firm%s service & its 1uality.

&ran' !ame Auto Clean car wash

Mission Statement Clean your car within a minuteSer*i)e @arity nterior wash$ ?!terior wash or 4etailing.

Auality Sophisticated high pressure water pump$ foaming agent$

roller brush$ vacuum cleaner etc.

The "ustomers

Auto Clean is targeting three main groups of customers> individual car owners$ car

dealerships$ local businesses of that community. The surrounding area is 1uite affluent$

9* of the residents earn over T@.' a year. Conse1uently$ they have nice cars and

want them to loo+ nice. There are a lot of car dealerships and showrooms within a mile

which will re1uire car washing services for the various fleets. 7oreover$ "S# & #B%s

students also have personal cars. Cars need to get washed. astly$ there are many

different local businesses that have company cars and that re1uire clean appearances.

Maor oals

There are only four ma


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Board of Directors

Rubayath N.R

(Finane!

A"inur Rasul

(Aounting!A#i#ul $a%i" (&'erating!

r.)

(ar%eting!

r.*

($R!

+u'er,isor

Wor%er Wor%er

Wor%er Wor%er

Wor%er Wor%er

-uar

-uar

-uar -uar

9. To enlarge the service for )9 hours.

Maor be)ti*es

The ob

2. To get at least ' cars everyday

). To get ' regular customer in a month

8. To maintain a modest$ steadily growing net profit margin

9. To obtain a very high profit margin.

The mission of Auto Clean is to provide ultimate car care e!perience to its customers$

focusing all of its energy and resources on customer satisfaction and value while providing

owners and employees an e!cellent reward.

Mana$ement Team

Auto Clean will be maintained strongly by its owners. 3wners will be the directors of five

departments of that firm. 3nly the operating director will have a supervisor and there will be

si! wor+ers & four guards. The following chart shows detail-

Auto Clean Car Wash Page / of

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%inan)ial +lan

The "apital !ee'e'

The company will need total capital of T@.)$ $. Twenty five percent of the re1uired capital will

be collected e1ually from the five entrepreneurs$ and the rest twenty five percent will be financed by

an outside investor for which he will be given ten percent dividend from ?BT ,?arnings before

nterest & Ta! and the rest 5ifty percent to be provided by /SBC BA"@ BA"A4?S/.

7ore detailed information about estimated capital is given below-

Capital "eeded> Ta+aTrade icense '$

Research & 4evelopment 2$$Prepaid and Rent )'$?1uipments 2$$Buildings 8'$5urniture '$3ther Assets 2$D$Cash in /and 8$Total Capital )$$

Three-month proe)tions

2st

7onth )nd

7onth 8rd

7onthTa+a Ta+a Ta+a

e*enue9

Service Revenue ,)E8'E8F)2$

,8'E8'E82F8DG$D'

,'E8'E8F')'$

>penses9

Salaries '$ '$ '$

Rent '$ '$ '$Advertising )$ 2'$ 2$

#tilities 2'$ )$ )H$

nsurance 2'$ 2'$ 2'$

4epreciation ,).'* 8'$ 8'$ 8'$Total ?!penses 2H'$ 2H'$ 2HH$

?arnings Before ncome&Ta!es

)'$ 2G9$D' 88D$

ess> nterest ,2* )$' 2G$9D' 88$D

?arnings Before Ta!es ))$' 2D'$)D' 88$8

ess> Ta!es ,8* I$D' ')$'H8 G$GG

?arnings After Ta!es 2'D' 2))$IG8 )2)$82

ncomes Per 3wner 8$2' )9$'8G 9)$9I)


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Income and Statement

.

Income Statement in Dollars

>@>!B> )2) )28 )29 )2'ross sales '$ I'$ D)$ H'$

"ST % S(C>S

Beginning inventory 8' 8I 9) 98'

Plus goods purchased J manufactured 2) 2I' 2H' 2G

Total oods Available 9D ')' I' I)'

ess ending inventory 8I 9) 98' 99

Total Cost of oods Sold 22 2' 2D 2H'

ross Profit ,oss 2G 82' )D 89'

+>(TI! >+>!S>S

Selling

Salaries and wages 8' 92 9I ')

eneralJAdministrative

Salaries and wages 2) 29 2I 2H

?mployee benefits 9 ' ' IPayroll ta!es ) 8 8 9

nsurance I I D D

#tilities ) ) ) 8

4epreciation & amorti0ation 8 9 9 '

3ffice supplies 2 2 2 2

Travel & entertainment 8 8 8 9

?1uipment maintenance & rental 2 2

nterest 2 2 )

5urniture & e1uipment 8 9 9 '

Total eneralJAdministrative ?!penses 9' ') 'D ID

Total 3perating ?!penses 2)2 29 2'' 2H

Balance Sheet in Dollars

(SS>TS 2012 201? 2018 2015

"urrent (ssets

Cash '9 'D 'G I9

"et accounts receivable 8ID 8GI 9)I 98'

nventory 2DD 2G2 )8 )'

Temporary investment 2) 2) 2) 2)

Prepaid e!penses ) ) ) )Total "urrent (ssets I2) I'H D) D2H

%ie' (ssets

Auto Clean Car Wash Page of

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ong-term investments 9) 98 98 9I

and I'I I'I IH9 D)D

Buildings ,net of depreciation G8 G)H GH8 2$)2

Plant & e1uipment ,net IH I82 I9) I'9

5urniture & fi!tures ,net I2 I' IH D)

Total !et %ie' (ssets )$)D )$8)8 )$9) )$')TT(C (SS>TS )$HH) )$GH2 8$2)) 8$)8H

CI(&ICITI>S

"urrent Ciabilities

Accounts payable )9I )') )'H )DD

Short-term notes )9 )' )I )H

Current portion of long-term notes 29 29 29 2'

Accruals & other payables 29 29 29 29Total "urrent Ciabilities )GH 8' K82) 889

Con$-term Ciabilities

7ortgage HGD G82 GDH 2$)23ther long-term liabilities 998 9H' ')D 'DI

Total Con$-term Ciabilities 2$89 2$92I 2$'' 2$'GD

SE(>ECD>SF >ABIT=

Capital stoc+ 8 8 8 8

Retained earnings G99 GI 2$' 2$DTotal Sharehol'ersF >quity 2$)99 2$)I 2$8' 2$8D

TT(C CI(&ICITI>S G >ABIT= )$HH) )$GH2 8$2)) 8$)8H

The ationale an' assumptions9

3ur plant is situated in a busy area. t is ad


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.

&usiness >n*ironment an' Market (nalysis

S#T (nalysis

Auto Clean has several powerful strengths on which to build$ but our ma


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Threats9

People may not ta+e this new change very soon

t may seem e!pensive to customers

7any company may find it profitable and enter into the business

Tar$et Market Se$ment

Auto clean car wash segments its customers by type of car ownership. (e believe that the

type of car that a person owns says volumes about their driving$ and$ therefore their car

washing and detailing re1uirements.

!ew )ar owners>?verybody wants to own a personal car in this technological age. These

owners ta+e great pride in their cars and will need washing 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 Auto clean car wash will +eep their car loo+ing as good as it did the

day they drove it off the lot.

Stu'ents9 Students will be our niche mar+et. They are the early adapters. They always

want to taste new things.

"ar 'ealers>There are many new and used car dealerships within a mile of the proposed

location of Auto clean car wash. These dealerships often use outside car wash services to

detail their vehicles before they are put up for sale.

l'er luury )ar owners>These people have either owned their high-end lu!ury cars for

several years or are unable to afford the e!pense of a new lu!ury car but want the feel of

rela!ed driving. Both of these groups want to +eep 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 +eeping their cars loo+ing good. These owners will bring their

cars in for regular washes and occasional details.


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Co)al businesses>Some local businesses have fleets of cars and small pic+ups that must

be +ept clean to maintain their company image. These businesses will be loo+ing for a cost

effective$ efficient car washing service to perform this service$ and will prefer to use a time-

consuming car wash service li+e us.

Demo$raphi) (nalysis

n a comprehensive way$ we have analy0ed our consumer%s demographic in 8 parts. These

are-

($e93ne of the mentionable parts of demographic analysis is age. (e have seen that the

people of )' to 9' aged usually use car. So$ they must need our service. 3n the other

hand$ people of more than ' years old use fewer cars than others. The following table

shows the detail---

In)ome (nalysis9(e have also analy0ed our customer%s income.

ncome Range PercentageN) 2)*)$-9$ ))*9$-I$ 8*I$-H$ 2'*H$-2$ 28*O2$ H*

))upation9(e have targeted our customers which have a variety of occupation. Such as

businessman$ e!ecutive$ service holder$ teacher$ student etc.


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an$e +er)enta$e

N) years '*)2-8 )I*82-9 9'*92-' 2D*O' D*


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3ccupation PercentageBusinessman 28*?!ecutive 2'*Service /older 9'*

Students 2D*Teacher 2*

(e boast of our service that will be more desirable than those of available services. 5or

your better understanding$ let%s consider the following comparison between our service and

those of our competitors>

Topics Auto Clean Competitors2. Process (e will wash car through an

automatic process.They wash car manually.

). 7achine (e will import machines fromBei


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(e went through field research and concluded that the difference between Auto base car

wash MS Competitors>

&enefits (uto &ase "ar wash (uto

tunin$

(ftab

)ar

)lean

Dhaka

)ar

wash

Time 'J' )J' 8J' 9J'

"leanness 'J' 8.'J' 8J' ).'J'

Shiny 9J' 8J' ).'J' ).'J'

+arkin$ lot 2 cars 8 cars ) cars ) cars

+romotion9


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Car Wash

AutomaticCar Wash

ManuallyCar Wash

Car Workshop Petrol Pumps

Auto Clean Friends Car Wash

Sales an' Marketin$ +lan


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Through mar+eting communications and advertising process we will have to design a set of

promotional tactics to ensure that customer%s +now about our service and are willing to

see+ it.

&ran' 'e*elopment

As a new mar+eter we will need to develop a brand to create a uni1ue identity. (e will

follow the brand positioning strategy through our outstanding service attributes.

('*ertisements

(all leaflet Pasting leaflets on walls will ma+e passersby ta+e a loo+ at

it which will encourage them to be interested in us.

Brochures accompanied with daily news papers This strategy will

successfully be able to attract customer%s attention.

Cable TM ads (e will contact with local cable TM operators

demonstrate our ads on a regular basis. This is a good way of gaining

TM viewers attention. As direct TM ads are very e!pensive$ operating ads

through cable sounds an economic but effective way of promotion.

Sales promotion

8 time%s trial offer 5or the convenience of our customers we will

give them an opportunity for a three time%s trial offer. n this period

they will offered to have a taste of our services by paying a minimum

registration charge.


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Sales discount (e will offer discounts depending on our overall

mar+et condition and other factors such as profit$ mar+et demand$

etc.

+ubli) relation tools

Campaign is an effective measure of grabbing significant amount of customer attraction.

(e will participate in different local car fairs and car e!hibitions arranged within the target

mar+et 0one and beyond.

peratin$ +lan

Ma)hinery

(e will need some necessary e1uipment to run the firm. Such as---

2. Tunnel it is the mother of the process. Cars will be driven through the tunnel and

inside the tunnel$ program will automatically clean the e!terior of the car by high

pressure water force$ foaming agent and also with roller brushing.

). (ater pump with this e1uipment process will collect the water.

8. enerator n electronic based pro


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I. nterior conditioner machine- t is used for ma+ing shiny inside the car.

Manpower requirement

#nder the operational director there will be a supervisor and the supervisor will have si!

wor+ers and four security guards.

In*entory types

nventory is defined as a stoc+ or store of goods. These goods are maintained on hand at

or near a business6s location so that the firm may meet demand and fulfill its reason for

e!istence. f the firm is a retail establishment$ a customer may loo+ elsewhere to have his

or her needs satisfied if the firm does not have the re1uired item in stoc+ when the

customer arrives. f the firm is a manufacturer$ it must maintain some inventory of raw

materials and wor+-in-process in order to +eep the factory running. n addition$ it must

maintain some supply of finished goods in order to meet demand. n Auto Clean Car (ash

there will some inventories.

2. (ater ,'$ iter I. Bug Cleaner ). Tools D. ?!tra Roller Brush8. 5oaming Agent H. 4iesel9. Conditioner G. Shining Agent'. Triple Color 5oam Brush

Auality )ontrol


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Quality control is a procedure or set of procedures intended to ensure that a manufactured

product or performed service adheres to a defined set of 1uality criteria or meets the

re1uirements of the client or customer. Around the world at any types of business wants

+eep step ahead from its customer or client%s satisfaction. Quality control is such +ind of

process. At the car washing industry clients always want to get the best efficiency.

According to the above terms Auto Clean Car (ashing firm will arrange its product from

Bei


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(ppen'ies

&iblio$raphies

1. "ic+els$ (. .$ 7c/ugh$ =. 7.$ S. 7. ,)' #nderstanding Business ,D th ed.

7craw-/ill rwin "ew ;or+ www.abcd.com

). Philip @otler$ ray Armstrong ,)G-)2 Principles of 7ar+eting ,2) th ed.

Prentice-/all of ndia "ew 4elhi www.phindia.com

3. Stanley B. Bloc+$ eoffrey A. /irt ,)2-)22 5oundations of 5inancial

7anagement ,2)thed. 7craw-/ill rwin "ew ;or+ www.abcd.com


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http://www.abcd.com/http://www.phindia.com/http://www.abcd.com/http://www.abcd.com/http://www.phindia.com/http://www.abcd.com/

bus 202 auto clean(report)2

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