fresh and clean auto care inc business plan

8/7/2019 Fresh and Clean Auto Care Inc Business Plan

1/12

Fresh andCleanAuto

CareInc.

Created by:Zachary Waldron

Lea AckenbomChase HarrisonMatt GrubbSarah CliftApril Pyle


2/12


3/12

ExecutiveSummary

Name: Fresh and Clean Auto Care IncLocation: Blacksburg, VA

Business Type: C-Corporation

Topic

The business we plan on opening is a car washing and detailing facility. The companywill secure contracts with local businesses to hand wash, clean, and detail their vehicles.Furthermore, we will provide these services to walk in customers. We will be located inBlacksburg, VA and serve the surrounding areas.

Mission Statement

Our mission at Fresh and Clean Auto Care is to provide quality car washing and cleaningservices to local firms and walk in customers. We strive to provide these services atcompetitive rates while still maintaining modest profits. Fresh and Clean Auto Care findsit important to provide up-to-date auto care services in Blacksburg and surrounding areas.Through these services we hope to better our community, employees, and ourselves.

Organizational Plan

C-Corporation

One owner, five part time workers

Owner will provide contributed capital of $75,000

Services

Automatic washing

Detailing; which includes: vacuuming, waxing, cleaning vinyl, and glass

Fleet vehicle washing; provide employees with car washing vouchers

Pricing

Range from $10 to $60 available in packages basic to platinum.

Competitive and psychological pricing strategy

Target market

Local vehicle fleets

Middle to high class population of Blacksburg, VA

Age 25-59


4/12

Male and FemaleCompetition

Direct:

Main Auto Spa

Southern Classic Soft Clothe Auto Wash Inc.Secondary:

Squeakys Laser Wash

Other car wash bays

Automatic car washes

Fundraising car washesIndirect:

Do it yourself

Car dealerships

Promotion

Shotgun approach for walk in customers

Local newspapers and the yellow pages

Coupons in various places as an incentive for people to become our customersRifle approach to target fleet customers

Send and hand out flyers to our potential customers

Advertise in trade bulletins

Financial Projections

First year will be a start up year and no profits will be shown. Minimum losses will occurbut will be recovered in the future as profits start to be made.

Contingency Plan

If goals are not being met, we will look at the aspects of the business that are costing themost and try to cut back costs. We will also try to bring in more cars and therefore morerevenue.

If goals are being exceeded, we will consider expanding the business and hiring moreemployees to keep up with the increased demand and provide additional services.


5/12


6/12

Table of Contents

Executive Summary 1

Mission Statement / Goals 3

Organizational Plan 4

Institutional Setting (Insurance) 4

Competitive Analysis 5

Comprehensive Marketing Plan 6

Financial Analysis 9

Contingency Plans 10

Appendices:Appendix A: Building lay-outAppendix B: FinancialsAppendix C: Price ListAppendix D: Sales


7/12

Mission Statement

Our mission at Fresh and Clean Auto Care is to provide quality car washing and cleaningservices to local firms and walk in customers. We strive to provide these services atcompetitive rates while still maintaining modest profits. Fresh and Clean Auto Care findsit important to provide up-to-date auto care services in Blacksburg and surrounding areas.Through these services we hope to better our community, employees, and ourselves.

GoalsShort-term:

Break-even within two years

Employee 5 part time college students within first year

Obtain 10 contracts with local businesses within first year

Lease car wash facility

Attract walk-in customers in addition the fleet service vehicles

Long-term:

Purchase car washing facility

Expand clientele base by 100 percent

Clear at least $100,000 in net profit within 5 years

Rank as one of the top 3 car washes for customer satisfaction in our

region Maintain a high number of return customers through top notch

customer service

Organizational Plan

Form of Organization: C Corporation

Management Structure:Owner/Executive Director: Zach WaldronPart-Time Employees: Matt Grubb, Lea Ackenbom, April Pyle, Chase Harrison, Sarah

Clift

Job Descriptions/Salaries:

Owner/Executive Director: Zach Waldron

Job Description: Oversee all financials, including statements and advertising, and dailyoperations of business


8/12

Salary: $35,000Benefits: insurance ($2,000), retirement ($1,000)

Part-time Employees:

Job Description: wash cars, vacuum inside of cars, detail cars, clean up facilities, and allother actions necessary to day to day operation of business

Pay: $6.50/hour (each 20 hours/week) Total paid for 5 part-time employees:$39,495/year

Benefits: Discounted car-washes

Institutional Setting

Insurance

Type: Prices:

Building 300Business Interruption 800Equipment Breakdown 200Liability and Physical Damage to CustomerVehicles 1,200Umbrella Policy 500Workers Compensation 2.29/$100 payroll+$150

Quotes from Brown Insurance

Competitive Analysis

Direct

Main Auto Spa1401 N. Main StreetBlacksburg, VA 24060

Brief Description:

Strengths:

Location

New to the area

Eye catching facilities

Flashy websiteWeaknesses:


9/12

Lack of customer base

Mostly all walk-in customers

Lacking reputation

High start-up cost

Southern Classic Soft Clothe Auto Wash Inc.2855 N. Franklin StreetChristiansburg, VA 24073

Brief Description:

Strengths:

Good reputation

Large customer base

Large facilitiesWeaknesses:

Expensive Long wait

Older facilities

Secondary:

Squeakys Laser WashOther car wash baysAutomatic car washesFundraising car washes

Indirect:

Do it yourselfCar dealerships

Comprehensive Marketing Plan

SWOT Analysis (Fresh and Clean Auto Care Inc.)

Strengths

Contract customersProvides a steady flow of business

Walk-in customersProvides service during the day time hours

Newness of businessCustomers willing to try new things

Competitive pricing


10/12

Weaknesses

Un-established reputationNo one knows how good of a job our company does

Lack of employees

Only one employee and the manager, due to income restraints

High start-up costExpensive to start-up and operate while maintaining competitiveprices

Lack of customer baseNo one knows who we are and that we exist

Opportunities

Ability to diversify

Provide new services and sell car washing products Large number of potential contract customers

Wash company work vehicles on contract

Purchase/expand facilities

Threats

Existing competition

Lack of high income households

Low and hard to predict cash flow in the beginning

Trends

52 % of American car owners wash their cars less than once a month (1)

15 % never wash their cars (1)

More than $24 billion a year is spent battling automobile corrosion (1)

73 million grimy automobiles on the road (2)

Automatic car washes are environmentally friendly (2)

12 to 14 gallons of water used in an automatic car wash (2)

10 gallons per minute used while hand washing car (3)

11.1 gallons of water used in a self-service car wash (3)

Washing car at home effects the environment with soapy runoff (3)

(1) www.carlove.com(2) www.roadandtravel.com/carcare/carwash2.htm(3) www.imagescarcare.com

Target Market


11/12

We would like to have two primary target markets. We would like to target local vehiclefleets, which we will perform services for after our regular business hours. We will buildlong lasting relationships and contracts with these customers. We plan to target both themale and female audience. We would also like to target the middle to high classpopulation of Blacksburg. In this category, we would like to target ages 25 to 59. This

age demographic is about 26.43 percent of Blacksburgs population. We feel that theseare the walk-in customers with the most expensive cars and the ones who care about theircars looking nice. These customers can afford to spend money on our pricy packages andtake pride and joy in their cars appearance. Although we plan on targeting these twocategories, we will still advertise to college students due to the large Virginia Techpopulation.

Source: http://blacksburg.areaconnect.com/statistics.htm

Product

For the Basic Package, Fresh and Clean Auto Care Inc. will drive your vehicle through anautomatic car wash. Following the wash, they will vacuum out the vehicle. ThePremium Package will provide the services of the Basic Package plus they will clean theinterior of the vehicle with armor-all and wash all of the windows on the inside. Inaddition, the Premium Package will clean the tires and rims of the vehicle.

Price

Basic 9.99

Platinu

m 59.99

Vacuum

Vacuu

m

Automatic Wash Automatic Wash Armor-All

Premium 15.99 Windows

Vacuum Tires and Rims

Automatic Wash Hand waxed

Armor-All

Windows

Tires and Rims

We would like to use competitive and psychological pricing strategy. We will offer a 5%discounts to fleet services companies that pay for credit sales within the first month.

Promotion

We would like to use the shotgun approach for our walk in customers. For this strategy,we would like to advertise in local newspapers and the yellow pages. We would advertisewith coupons in various places as an incentive for people to become our customers.

We would like to use the rifle approach to target our fleet customers. We will send andhand out flyers to our potential customers and advertise trade bulletins.


12/12

Place

We will be located on South Main Street, near the Kroger and ABC store. The walk-incustomers will bring their vehicles by the store to be cleaned. Fresh and Clean Auto Care

Inc. will pick-up the fleet service vehicles during after business hours. We will clean thevehicles and return them before the next business day begins.

Financial Analysis

See Appendix B

Contingency Plan

If we are unable to pay off our short term loans, we have two plans of action.First, we would cut our labor force by turning the car wash into a self-serve automatic carwash. We would also eliminate the washing and drying stations and convert them intoself-service spray wash bays. There would be a bit of additional costs in equipment, butthe waxing and drying bays will be built with the appropriate draining system toaccommodate this conversion. There will also be no addition cost in supplies becauseboth, the automatic wash and the spray bays, will use the same type of supplies. With thisconversion we would only need to have one employee on site at all times. There job

would be to sell merchandise from the lobby. Our second option if we are still fallingbehind on our payment is to liquidate all assets or try to sell our business and pay off alloutstanding debts

fresh and clean auto care inc business plan

Documents