Sample Business Plan on Car Wash Business Plan
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EXECUTIVE SUMMARY
The Business Concept
ABC Car Wash, LLC (ABC Car Wash or the Company) is purchasing an existing and profitable car wash located within the AnyCity, State military base. The Company is buying the facility from the previous owner who is retiring.
The car wash facility has all of the latest technology. It has a built-in customer base and a large market to draw from. People pass by it daily going to and from the base as well as visiting near-by shops and medical facilities.
The car wash facility is on contract with AAFES (Army and Air Force Exchange Service) for seven more years and the contract can be extended. The business pays a 15% fee to AAFES to cover leasing of the space.
As a well established facility with fourteen years of service for the community, the car wash facility has developed a well-known and respected reputation. ABC Car Wash will leverage that brand to retain and build a large customer base.
The Company will take over, manage, improve and add new ideas for additional income to the facility (e.g. adding vending machines).
This is a unique and sound business opportunity. All income is on cash basis with no receivables or collection problems. The business has a high rate of return customers and is simple to operate.
Excellent Market Opportunity
The Company is situated in an ideal location. It is located on the south side of AnyCity on Any Road next the Main Exchange, the Commissary, the Class 6 store (liquor store), the bank and the AAFES gas station. Any Road intersects with Highway 123 and leads past the Metroplex hospital and associated medical facilities, another AAFES gas station and various shops.
The AnyCity military base is huge and growing. It has over 5,100 military personnel and families. In addition there are 5,400 contracted employees and 9,100 DOD civilian employees. AnyCity continues to grow as other military bases are downsized and personnel are redeployed.
The Company’s facility is the only one located on the southwest side of the Post. The closest competition is several (3-4) miles away.
Recent national surveys estimate that the average self-service coin operated car wash is generating $1,489 gross monthly income per bay.
Profitable Growth
ABC Car Wash expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars and the competitive landscape.
Projections call for the Company to generate revenues of $150,000 in its next twelve months. ABC Car Wash will achieve strong growth over the next several years, reaching $177,000 in revenues and $38,000 of net income by the fifth year.
The Opportunity
AnyCity
AnyCity is located in central State in southwestern Bell and southeastern XYZ counties. It is the second largest active duty Army post in the United States and one of the largest military installations in the world. Its primary mission is to maintain a state of readiness for U.S. combat missions.
The post was named after the Civil War Commander Gen. John Bell Hood. The Base opened on Sept. 18, 1942, and has been continuously used for armored training ever since. It covers three hundred and forty square miles, stretching 26 miles east to west and 24 miles north to south. The city of Copperas Cove borders the Base on the west and the city of Killeen borders it on the east. 1, 2
There are an estimated 52,000 uniformed personnel on the base with several thousand additional workers, contractors and DOD employees. Most of AnyCity's population is between the ages of 25 and 34 with very few over the age of 55. The total population in the Base and surrounding area represents more than 300,000 soldiers, family members and retirees. 1, 2
The ethnic breakdown of AnyCity is as follows:
White – 48% African American – 26%
Hispanic – 19% Asian – 3%
Other Races – 4%
AnyCity is the headquarters of the 1st Cavalry Division, whose soldiers have seen extensive deployments in Iraq and Afghanistan. The division has four combat brigades, three of which have already been deployed three times, some for as long as 15 months. AnyCity is also home to the 3rd Armored Cavalry Regiment, whose soldiers have also been deployed three times to either Iraq or Afghanistan. 1, 2 Much of the Base has been or is being revitalized with major upgrades. Older buildings have been torn down and replaced with modern facilities. Millions of dollars of upgrades occur each year on the Base.
Car Wash Industry
As with most industries, the Car Wash and Auto Detailing industry suffered during the recent recession. However, as the US economy recovers sales are expected to recover as disposable income and consumer confidence increases.
As the US car industry rapidly grew after 1950, there was a demand for automatic car washing facilities. The first automatic car washes were designed to operate unattended and as complimentary to existing business (especially gas stations).
The early car washed weren’t without problems, however. The biggest problem was the damage that some car washes could cause vehicles. Cars were changing rapidly and the early car washing machines were too rough on the vehicles. This quickly led to the development of touch-free systems and several other improvements. 3
Today, the number of automatic car washes is off about 20 percent from its peak in the 1980’s. With improvements in friction based machines, the split of machine types seems to be balancing out at 60 percent touch-free (or 35,000) and 40 percent (or 20,000) friction, according to Bobby Willis, Vice President of Sales for Ecojet Wash Systems. 3