Cover Page

This sample business plan has been made available to users of Business Plan Pro, business
planning software published by Palo Alto Software. Names, locations and numbers may have been
changed, and substantial portions of text may have been omitted from the original plan to preserve
confidentiality and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not have
permission to resell, reproduce, publish, distribute or even copy this plan as it exists here.
e!uests for reprints, academic use, and other dissemination of this sample plan should be emailed
to the mar"eting department of Palo Alto Software at mar"eting#paloalto.com. $or product
information visit our %ebsite& www.paloalto.com or call& '()**(++,(-.+/.
Copyright Palo Alto Software, Inc., 1995-2009 All rights reserve
0egal Page
1onfidentiality Agreement
The undersigned reader ac"nowledges that the information provided by
2222222222222222222222222 in this business plan is confidential3 therefore, reader agrees not to
disclose it without the express written permission of 2222222222222222222222222.
4t is ac"nowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
2222222222222222222222222.
5pon re!uest, this document is to be immediately returned to 2222222222222222222222222.
2222222222222222222
Signature
2222222222222222222
Name 6typed or printed7
2222222222222222222
8ate
This is a business plan. It does not imply an offering of securities.
Table of Contents
'.* 9xecutive Summary.....................................................................................................................1
'.' :eys to Success.........................................................................................................................1
'.+ ;b<ectives....................................................................................................................................2
1hart& =ighlights...........................................................................................................................2
+.* 1ompany Summary......................................................................................................................2
+.' 1ompany 0ocations and $acilities.......................................................................................3
+.+ Start(up Summary....................................................................................................................4
1hart& Start(up..............................................................................................................................4
>.* Product and Service 8escription.............................................................................................4
?.* Personnel Plan................................................................................................................................6
Table& Personnel............................................................................................................................
..* Service @usiness Analysis..........................................................................................................
..' Aechanical epair 1ompetitors...........................................................................................
..+ Auto Parts 4ndustry..................................................................................................................!
..> 1ar %ash 4ndustry...................................................................................................................."
..>.' 1onse!uences of Trends................................................................................................."
/.* Sales $orecast................................................................................................................................"
Table& Sales $orecast.................................................................................................................1#
-.* Aar"et Analysis Summary.......................................................................................................1#
-.' Aar"eting Strategy.................................................................................................................11
-.+ Aedia Plan..................................................................................................................................12
-.+.' Service and %arranty....................................................................................................12
-.> Target Aar"et Segment Strategy......................................................................................12
).* 1ontingency Plan.........................................................................................................................14
).' Browth Strategy......................................................................................................................14
).+ Succession Plan........................................................................................................................14
,.* $inancial Plan................................................................................................................................1$
,.' 4mportant Assumptions........................................................................................................16
,.+ @rea"(even Analysis...............................................................................................................1
1hart& @rea"(even Analysis....................................................................................................1
Table& @rea"(even Analysis.....................................................................................................1
,.> Pro<ected Profit and 0oss.....................................................................................................1!
,.> Pro<ected Profit and 0oss.....................................................................................................1!
Table& Profit and 0oss................................................................................................................1!
,.? Pro<ected 1ash $low...............................................................................................................1"
,.? Pro<ected 1ash $low...............................................................................................................1"
1hart& 1ash...................................................................................................................................1"
Table& 1ash $low.........................................................................................................................1"
,.. Pro<ected @alance Sheet......................................................................................................21
,.. Pro<ected @alance Sheet......................................................................................................21
Table& @alance Sheet.................................................................................................................21
,./ @usiness atios........................................................................................................................21
Table& atios.................................................................................................................................21
Table& Profit and 0oss..........................................................................................................................1
Page 1
Table of Contents
Table& 1ash $low...................................................................................................................................2
Table& 1ash $low...................................................................................................................................2
Table& @alance Sheet...........................................................................................................................4
Table& @alance Sheet...........................................................................................................................4
Table& Sales $orecast...........................................................................................................................$
Table& Sales $orecast...........................................................................................................................$
Table& Personnel....................................................................................................................................
Table& Personnel....................................................................................................................................
Table& Beneral Assumptions.............................................................................................................!
Table& Beneral Assumptions.............................................................................................................!
Page 2
%I& 'ash () *i+
'.* 9xecutive Summary
84Y %ash NC $ix is a new concept in auto care. The 8o(4t(Yourself 684Y7 mar"et in America is
increasingly popular, as evidenced in the growth of 84Y housing suppliers. =owever, there
remains a gap in the mar"et for 84Y auto repair, currently firms offer auto parts and tools, but
not a place to perform the wor". Therefore, our business idea is to provide a professional
environment in which to wash, paint or repair your automobile. 84Y %ash NC $ix is a timely
idea, because the current economic slowdown in the 5.S. may influence consumers to revise
their spending habits. Assuming someone has the re!uired s"ills or the desire to learn auto
repair, they will li"ely be inclined to use our facility to cut costs. Additionally, sales of after(
mar"et auto parts have been increasing, which demonstrates AmericansC abilities and
willingness to fix their own cars. The car wash industry is attractive, because it generates
steady profits on little additional investment. An opportunity for excellent ac!uisitions currently
exists in the car wash and auto repair industries, given that many of these businesses are
owned by baby(boomers who are anxious to retire.
84Y %ash NC $ix has targeted a specific mar"et of individuals who would li"e to wor" on their
cars, yet they lac" the proper space and e!uipment to do so. This is a growing mar"et in urban
areas, because many people live in apartment complexes that restrict on(site auto repair. ;ur
target mar"et is about ,*D male in the age range of ')(.. who earn from E+*,*** to E?*,***
per year. @ased on these desired demographics, we have chosen to locate our facility in Texas,
$lorida or 1alifornia.
84Y %ash NC $ix is a new and exciting concept, and we have estimated it will be a profitable
endeavor. The fact that we are the first in this business gives us a first(mover advantage over
any competitors that may follow.
'.' :eys to Success
The "ey success factors in this industry are&
Fuality of service.
Bood business practice.
S"illed wor"force.
Aar"eting effortsGinformation provided to customers.
Technologically advanced e!uipment.
9nvironmental issues awareness.
The above trends provide some reasons for our business to be successful. 4ndeed, the current
American economic slowdown and the eventuality of rising costs for our competitors
6technology, labor, environment, etc.7 will facilitate the growth of the 84Y business. Aoreover,
the bad image that certain repair stores have is an advantage for us because people may not
trust them anymore. $inally, the repair industry is a good investment in terms of profit
pro<ections.
=owever, we also outlined two ma<or threats. $irst, the increase in the technologically advanced
vehicle electronics may prevent people from repairing their car on their own. Second, many
states have laws re!uiring regular emission and safety inspections, which will re!uire people to
go to a traditional garage, even if they are regular customers to our facility.
Page 1
%I& 'ash () *i+
1ar %ash 1ompetitors&
'. Single(activity car washes& they are typically private(owned businesses that offer car wash
service only.
+. Aultiple(activity car washes& they are chains that offer many services3 for instance, AAA, a
1alifornia based car(care facility, has recently announced the opening of a full(service car
wash, in addition to its repair services, shops, free 4nternet access and childrenCs play area.
The multiple(activity car washes are less numerous in terms of total number available. =owever,
they more closely resemble our business process and are therefore considered the primary
threat.
'.+ ;b<ectives
4t is appropriate to discuss the ris"s inherent in our business model. The central assumption
that weCve made in this plan is that part of the population exists that are willing and able to do
basic repairs and maintenance on their automobiles, but are limited by lac" of a proper
wor"space and appropriate tools. Another "ey factor to our success is appropriate pricing to
attract and retain this customer segment. $inally, a ris" inherent in our business is that a large
unforeseen expense will arise that we have failed to wor" into our financials.
1hart& =ighlights
+.* 1ompany Summary
This will be a single(location firm providing a service to a local mar"et. 4t will be a combination
of a coin(operated car wash and an attached facility to allow 84Y auto mechanics to rent repair
bays with similar e!uipment and wor"ing conditions that professional mechanics en<oy. These
repair bays would include hydraulic lifts, compressed air tools, individual lighting systems and
specialty tools used only for specialiHed tas"s.
Page 2
%I& 'ash () *i+
The coin(operated car wash service is a long(standing service industry that is growing at >D a
year. The after(mar"et auto parts mar"et is also a long(standing industry, growing at ?D a
year. There is overlap in the customer base of these two industries, but until now no one has
lin"ed the two and added customer value in the process.
This combination of services will complement each other and allow 84Y %ash NC $ix to en<oy the
proven cash flows of a growing industry 6coin(operated car wash7 and increasing profitability
from a new business venture. The business model relies on an appropriate population
demographic to draw on, but once a suitable site has been selected then this operation has the
potential to provide a steady income to the owners. Browth will most li"ely be achieved through
franchising.
Though there are other firms that compete directly with the car wash portion of the business,
the professional style auto mechanic bays for rent is a uni!ue idea to mar"et. This idea stems
from facilities found at many ma<or military installations. The ma<ority of service members live
in barrac"s and there are tight restrictions on the wor" that can be done on privately owned
vehicles in the par"ing lots of those barrac"s. Therefore, the military built facilities where the
service members could perform their own wor" on their vehicles.
To apply this business model to the civilian mar"etplace a similar demographic must be found.
The re!uired population must live in similar conditions, such as apartments, condominiums, or
in areas with fre!uent inclement weather, which restrict car owners from performing auto
repairs. Providing an area to rent that has ade!uate space, lighting and environmental controls
and would also provide access to expensive professional e!uipment would appeal to 84Y auto
mechanics.
The value this business model brings to the mar"et place is to the individual, who has the
"nowledge or desire to learn about basic auto repair, but does not have a place to do the wor"
or the tools to perform the wor". %ith the rising cost of auto repair parts and the labor costs for
mechanics, a facility that would ma"e performing standard auto maintenance and minor repairs
more convenient and less expensive would provide tremendous value to the customers.
+.' 1ompany 0ocations and $acilities
84Y %ash NC $ix intends to ac!uire an existing car wash facility with six bays. %e expect to
spend about E++.,*** to buy a facility with enough land to expand the business. %e will also
construct an additional nine bays outfitted specifically for painting and repair. 1onstruction will
cost about E>**,***, and the owners intend to contribute capital e!ual to '*D of initial
investments. Approximately E.>,+** worth of e!uipment will need to be purchased to properly
e!uip our repair and painting facilities. Total initial assets will be E.-),+**.
The layout of the new facility will include three bays e!uipped with /,***(pound capacity lifts
for doing light wor" and oil changes. Three more bays will have heavy(duty '+,***(pound
capacity lifts for doing ma<or repair wor". $inally, there will be three bays e!uipped with
ventilation and e!uipment for painting cars. Also, there will be a customer service area for
customers to chec" in and out their chosen wor" bays and tools. $ees will depend on the type
of bay desired and range from E'. to E.* per hour of usage. 1ustomers will have access to up
to ten tools at a time to perform their repairs.
Page 3
%I& 'ash () *i+
+.+ Start(up Summary
!perating "e#$ire%ents an Associate Costs
The materials re!uirements for the car wash portion of the business will be minimal. 4nventory
for the car wash will also be "ept to a minimum to reduce storage re!uirements. A supplier that
will provide <ust(in(time supplies will be sought out. 4n addition, inventory re!uirements for the
repair part will be "ept to a minimum. %e are not going into the retail auto parts industry.
eferrals from local auto parts stores may be a primary method of introductory mar"eting, so
competing directly with them is not our best option. Some items, such as motor oil, anti(freeHe
and air fresheners will be sold to encourage impulse buying. =owever, our strategy will focus on
building rapport with other local automotive businesses. %e will do this by referring our
customers to them in order to buy the needed auto parts, and then they will return to 84Y %ash
NC $ix to do the actual wor".
The labor re!uirements for this firm will include several full(time employees and possibly some
part(time employees to augment them during pea" periods
1hart& Start(up
>.* Product and Service 8escription
The facility will be a standard coin(operated car wash with an attached building to house the
other auto repair bays. The attached building will have nine bays with a customer service area
and restroomGbrea" area. 9ach bay will be designed for a specific type of repair wor". There will
be four types of bays&
Page 4
%I& 'ash () *i+
'. Car wash &ay& Standard car wash e!uipment 6spray guns, soap brushes, etc.7.
+. A$to 'oy(Paint &ay& Special ventilation and other environmental controls needed to
create an appropriate place to paint auto parts. Additional special e!uipment is needed for
these bays 6compressors, painting e!uipment, etc.7.
>. )heel *ift &ay& These bays will have a drive(on lift. 5sed for repairs not re!uiring the
wheels or suspension to be free.
?. +ra%e *ift &ay& These bays will have a lift designed to pic" up a vehicle by the frame,
allowing the wheels and suspension to hang free.
There will also be a customer service area where the customers will originally chec" in, and
they are assigned the appropriate bay at this time. 0ater, customers chec" tools in and out as
needed, and finally, they chec" out and pay. 4n addition, we will provide resources li"e 1hiltonCs
Aanuals and online pages that provide 84Y instructions and advice.
8uring the chec"(in process, the customer will complete a form with general information
including name, address, phone number, method of payment, type of repairGmaintenance to be
performed, and expected time of completion. This form will have a disclaimer relin!uishing 84Y
%ash NC $ix from any liability resulting in the customerCs inability to perform the repair, lost or
stolen private property if the customer leaves their bay unattended, and other issues as
suggested by private and insurance carrier legal counsel. 84Y %ash NC $ix does expect to be
liable for bro"en or faulty tools that are rented by mista"e, but will not be liable for in<ury
resulting from the misuse of a tool.
The customer will be given ten identification tags that can be traded for tools. A customer must
give up one tag for each tool he wishes to rent. This process will accomplish several things. 4t
prevents any one customer from accumulating all the tools, which would limit other customersC
access. 4t also prevents a customer from accumulating a large number of tools and attempting
to steal them, thus limiting our ris" exposure to any one customer. This system also ma"es
chec" out easier. 4f the customer returns less than ten tags at chec" out, it is immediately
obvious that all the tools have not been turned in. As tools are passed out in exchange for tags,
the customerCs chec"(in form will be mar"ed to indicate the type of tools being utiliHed. The
price to rent the tools will vary. The life expectancy and replacement costs for the tools will be
ta"en into consideration when developing a pricing strategy. 4f the method of payment chosen
by the customer is credit card, then the number will be recorded prior to service, which will
serve as further protection against stolen tools. 4f the customer wants to pay in cash, then the
customer must either leave a credit card, drivers license or cash deposit before the ten tags are
issued.
%hen a customer has completed his wor", he will finish the chec"(out process prior to removing
the car from the repair bay. The customer will return all of the identification tags, or the tools
he received for the tags. ;nce the tool account has been reconciled, the completion time will be
recorded and the receipt will be prepared. The receipt will provide an itemiHed list of costs to
include& bay rental fee 6based on time and type of bay7, tool rental fee 6based on the category
of tools rented7, miscellaneous charges 6computer printouts of repair instructions or explosion
charts7, and taxes. After payment is made, the customer will be allowed to remove his car from
the bay.
Bovernment regulations that need to be rigorously adhered to are the safety standards of the
hydraulic and other lift e!uipment, because this is a dangerous part of the automotive business.
Additionally, the environmental regulations dictating the proper disposal of the drained auto
fluids 6oil, antifreeHe, transmission fluid, etc.7 will have to be posted and enforced. The drainage
system will have to be appropriate for containing accidental spills.
Page $
%I& 'ash () *i+
?.* Personnel Plan
The labor force for 84Y %ash NC $ix will be small. 4t will consist of a part(time general manager
to handle inter(business relationships and corporate responsibilities. 4n addition, 84Y %ash NC
$ix will employ three certified mechanicsGmanagers3 their duties will consist of the day(to(day
operation of the firm. These duties fall into two categories& managerial and operational.
Aanagerial tas"s include& scheduling, inventory control and basic boo""eeping. Safety,
regulatory issues, customer service and repair advice are the operational tas"s they will be
responsible for. Additionally, customer service cler"s will be hired to perform the most basic
tas"s& customer service and custodial.
84Y %ash NC $ix will have a single general manager to coordinate all outside business activities
and partnerships. The business relationships would include accounting services, legal counsel,
vendors and suppliers, maintenance providers, ban"ing services, advertising and mar"eting
services, and investment services. 0aurie Snyder will fill this general management position. She
will be receiving an A@A from the 5niversity of Notre 8ame in Aay +**'.
The daily management of the business will be left to the lead mechanic. 9ven though 84Y %ash
NC $ix is not a full service repair shop it can be expected that some customers will attempt
repairs they are not familiar with and need advice. Therefore, we intend to hire three fully
certified mechanics. The mechanics will not be authoriHed to perform any wor" on a customerCs
car, but they will be able to ta"e a loo" at the car to evaluate the problem. To reduce our
liability for repairs done incorrectly we feel only professional mechanics should give advice to
customers. The primary function of the mechanics will be customer service and managerial
responsibilities. The first shift mechanic will be the primary on(site manager and will need to
possess the following "nowledge and s"ills in order to be able to perform effectively on the <ob&
!ffice ,nowlege&
1omputer 0iterate
@asic @oo""eeping
9mployee Scheduling
4nventory 1ontrols
Shop ,nowlege&
AS9 1ertified Aechanic
;S=A I Safety Procedures
9nvironmental 1oncerns
Shop S-ills&
4nterpersonal S"ills 69mployees I 1ustomers7
1ustomer $ocus
0eadership
;rganiHational
4n addition to the mechanic who will be on staff, there will also be a need for customer service
cler"s. The primary applicants for these positions will be low(s"illed wor"ers who have an
interest in vehicles, but do not possess formal schooling as an auto mechanic. These wor"ers
will be responsible for behind the counter customer service and general custodial duties 6to
Page 6
%I& 'ash () *i+
include the bays, restrooms, customer services area and outside par"ing areas7. $or liability
purposes they will not be allowed to give advice on repairs. The general "nowledge and s"ill set
we will be loo"ing for from these employees is as follows&
Shop ,nowlege&
1omputer 0iterate
1ash egister
Beneral Automotive G 9!uipment I Tool 5sage
Shop S-ills&
4nterpersonal S"ills
1ustomer $ocus
1ustodial %or"
;rganiHational
Table& Personnel
Personnel Plan
Year 1 Year 2 Year 3
General Manager $40,000 $42,000 $44,100
Mechanics $145,488 $152,762 $160,401
Administrative $40,737 $42,773 $44,912
!tal "e!#le 7 7 7
Total Payroll $226,225 $237,536 $249,413
..* Service @usiness Analysis
The industry we participate in consists of !uite a few sub(industries. The ones that pertain most
towards 84Y %ash NC $ix are the 1ar %ash 4ndustry, the Auto Parts 4ndustry, and the
Aechanical epair 4ndustry.
..' Aechanical epair 1ompetitors
These competitors are less direct than the previous ones because we differ in terms of services.
There are different types of competitors&
'. .ire ealers(service centers& The ma<or ones are, $irestone, Boodyear, and Aichelin,
which have recently expanded their services to include car diagnostic wor".
+. /$ic- l$&es& They are mainly small independent stores, but the trend is consolidation,
franchises 6li"e Jiffy 0ube7 and trademar" licenses 6li"e Texaco7. They are facing increasing
competition from other types of outlets whose offerings include the services they provide.
$inally, their main competitive advantage lies in their convenience and competence, not
necessarily in low prices.
>. 0as stations with service &ays& They generally have fewer service bays and lower
average tic"ets. They are competing against !uic" lube stores, big chains, general garages,
and tire dealers. Their competitive advantage lies in their better(trained technicians,
customer service and fast delivery.
Page
%I& 'ash () *i+
?. Inepenent repair stores& These are typically a small facility run by one owner. They
face a declining mar"et share in the favor of big chains and franchises, primarily because
they cannot retain a s"illed wor"force. 1ommitment is their competitive advantage.
Therefore, the competitors we need to carefully watch are the big repair stores 6chains,
franchises, licenses7 that offer many services than"s to a s"illed wor"force and heavy mar"eting
expenses. They are able to retain customers and have the advantage of their brand recognition.
..+ Auto Parts 4ndustry
The after(mar"et auto parts companies are retailers that sell directly to the end users and own
stores throughout the 5.S. $orty percent of all 5.S. auto parts sales are made by the K@ig 9ightK
auto part chains. The six largest retailers are& AutoLone, Advance, 1S:, Pep @oys, 8iscount,
;Ceilly, NAPA 6National Auto Parts Association7 and 1ar!uest.
The following trends are prevalent within the industry&
1onsolidation through <oint ventures, mergers and ac!uisitions.
4ncreased competition, including a threat from Japanese competitors in the 5.S.
9xpected growth of 84Y 6do(it(yourself7 sales.
Aging 5.S. vehicle population 6average car age is ).. years7.
AutoLone is the number one retailer in this mar"et3 last year they realiHed E>.) billion in sales.
Auto part chains are expecting sales to continue as more car owners buy parts to do repair and
maintenance themselves. This is a positive indicator for the potential success of 84Y %ash NC
$ix.
1echanical A$to "epair In$stry
The auto repair industry is composed of two categories& the collision repair industry and the
mechanical repair industry. 1onsidering our business, with our facility and tool constraints, we
will focus on the mechanical repair mar"et and not the collision repair mar"et. =owever, we
expect we will have some customers wanting to do minor collision repairs.
0i"e the automotive industry as a whole, the mechanical repair industry is currently
experiencing ma<or structural changes. These trends include&
An increased competition among the three main types of stores& the independent service
stations and garages, the specialty repair outlets, and import specialists.
A decrease in the mar"et share of independent stores in favor of specialty repair outlets,
which are consolidating.
A strategic repositioning by many companies& focus on some specialty services or
diversification into more types of mainstream services.
A shift in stores owners& most shop owners are baby boomers who are reaching their
retirement age and are loo"ing for a successor.
A growth in the number of electronically advanced components that are placed on cars,
which re!uires a trained and s"illed wor"force.
The growing importance of customer service and satisfaction.
Page !
%I& 'ash () *i+
..> 1ar %ash 4ndustry
The car wash industry has entered the mature phase of its life cycle and is becoming
increasingly competitive. The increasing competition is becoming apparent through the shift in
three ma<or industry trends. They are&
'. +a%ily-&$siness s$ccession iss$es& most coin(operated car washes are private family(
owned businesses and many owners are at, or near, retirement age and are loo"ing for
successors.
+. 2ent$re capital& the car wash industry attracts investors who are not already in the
business and who are loo"ing to diversify their investments. There are two ways these
investors are running their car washes after having bought the facility& they operate it
themselves or compensate the ex(owner to continue operating it.
>. 0as station chains& many are offering car washes either on a free or low(cost basis,
investing in high technology e!uipment that re!uires little maintenance or labor.
..>.' 1onse!uences of Trends
The conse!uences of these trends are&
1ompetition is increasing.
4t is harder to differentiate comparable services.
1ustomer loyalty will become more critical.
1ustomers are more segmented.
4nvestment in high !uality e!uipment is re!uired.
1ar wash service is combined with other services.
The main threat within the industry is the water recycling regulations that some states impose.
$or instance, Aaryland re!uires car wash businesses to recycle )*D of the used water.
The car wash industry is seen as a profitable industry, provided that owners can differentiate
their firms, create a loyal customer base, and develop methods to attract new customers.
Aoreover, profits are greater when a car wash is combined with other car(related services that
provide better overall value and helps retain customers. 4n order to succeed in the industry,
businesses must provide&
;utstanding customer service.
Fuality wash.
=igh(!uality e!uipment 6investment in long(term tangible assets7.
9asy access to facilities and good location.
elevant and !uality other car services.
/.* Sales $orecast
84Y %ash NC $ix has conservatively forecasted revenue to grow at .D per year, from E))),'+*
initially to E,-,,'.+ in +**?. Net income is expected to grow at /D per year, from our initial
estimate of E'/),,*/ to E',*,>'> in +**?. There is potential for more growth, because of the
value(added nature of our business. $or example, the same customers will li"ely use all our
facilities& the car wash, auto painting, oil change and ma<or repair bays.
Page "
%I& 'ash () *i+
Table& Sales $orecast
Sales Forecast
Year 1 Year 2 Year 3
$nit %ales
&ar 'ash 15,120 15,876 16,670
(ac))m &leaning 15,120 15,876 16,670
&ar "aint 7,560 7,938 8,335
*il &hange 7,560 7,938 8,335
*ther +e#air 7,560 7,938 8,335
(ending Machines, etc, 1,440 1,512 1,588
!tal $nit %ales 54,360 57,078 59,932
$nit "rices Year 1 Year 2 Year 3
&ar 'ash $5,00 $5,00 $5,00
(ac))m &leaning $1,00 $1,00 $1,00
&ar "aint $50,00 $50,00 $50,00
*il &hange $15,00 $15,00 $15,00
*ther +e#air $40,00 $40,00 $40,00
(ending Machines, etc, $2,50 $2,50 $2,50
%ales
&ar 'ash $75,600 $79,380 $83,349
(ac))m &leaning $15,120 $15,876 $16,670
&ar "aint $378,000 $396,900 $416,745
*il &hange $113,400 $119,070 $125,024
*ther +e#air $302,400 $317,520 $333,396
(ending Machines, etc, $3,600 $3,780 $3,969
!tal %ales $888,120 $932,526 $979,152
-irect $nit &!sts Year 1 Year 2 Year 3
&ar 'ash $2,13 $2,13 $2,13
(ac))m &leaning $0,43 $0,43 $0,43
&ar "aint $1,13 $1,13 $1,13
*il &hange $0,38 $0,38 $0,38
*ther +e#air $0,85 $0,85 $0,85
(ending Machines, etc, $1,06 $1,06 $1,06
-irect &!st !. %ales
&ar 'ash $32,130 $33,737 $35,423
(ac))m &leaning $6,426 $6,747 $7,085
&ar "aint $8,505 $8,930 $9,377
*il &hange $2,835 $2,977 $3,126
*ther +e#air $6,426 $6,747 $7,085
(ending Machines, etc, $1,530 $1,607 $1,687
Subtotal Direct Cost of Sales $57,852 $60,745 $63,782
-.* Aar"et Analysis Summary
.arget 1ar-et
This business aims mainly at people performing basic auto repairs on their own vehicles. 4n
addition, we will target those people wishing to wor" on their vehicles but unable to do so,
because of restrictions 6apartment rules, etc.7 or weAther conditions, or because they do not
own the necessary e!uipment and tools to perform this activity.
The considered locations for the 84Y %ash NC $ix pro<ect are 1alifornia, Texas and $lorida.
Page 1#
%I& 'ash () *i+
3ni#$e 1ar-et 4iche
;ur concept is a coin(operated car wash combined with do(it(yourself auto repair facilities
e!uipped with professional tools. This a a one(stop place for washing and fixing your car by
yourself, which will appeal to auto repair enthusiasts.
'$siness Ientity
The brand name of this facility will be K84Y %ash NC $ix,K which fully expresses the
comprehensive set of services offered to do(it(yourself car owners. 4n terms of physical
characteristics, facilities will be clean, bright and well lit. The various bays will be well
organiHed. The ob<ective is to create a place where people will feel comfortable wor"ing.
Pricing
Service Prices
Automated 1ar %ash @ay E. 6wash7 M E' 6vacuum7
;il 1hange @ay rental fee E'.Ghr 6oil and filter not provided7
1ar Paint @ay rental fee E.*Ghr
;ther epair @ay rental fee E>*Ghr 6bay7 M E'*Ghr 6tools7
Nending Aachines E+..* per item
Co%petitors5 Prices
There are no comparable competition prices, as our services are different from any in the
mar"et, except, however for the coin(operated car wash which has an average price of E.. $or
full(service oil changes, the price ranges from E+. to E>*.
-.' Aar"eting Strategy
Avertising 6 Pro%otion
%e will utiliHe an existing car wash for expanding into 84Y auto repair3 communication will be
developed to inform current customers of the coming opening of 84Y %ash NC $ix. @illboards will
announce the pro<ect, and posters and flyers will be available on(site, as well as in local
specialiHed stores 6automotive7 and department stores.
The mar"eting budget will be dedicated to actions with a local scope. Print advertising will focus
on local newspapers and direct(mail mar"eting. @roadcast advertising will be used on local radio
stations and television channels.
The 4nternet is an additional media channel. A company website can inform current and
potential customers of the services being offered at the 84Y %ash NC $ix facilities. The website
address will be communicated through all the previously mentioned communication tools to
incite people to chec" its offers. Nisitors to the website can get pricing information and locations
nearest them.
@usiness relationships will have to be created with local businesses such as auto parts stores,
so that they would give referrals to their own customers to use the 84Y %ash NC $ix facilities.
Page 11
%I& 'ash () *i+
1ar-eting '$get
The mar"eting budget allocated to the launching of the 84Y %ash NC $ix business is '*D of the
estimated sales, i.e. E)),)'+ for year one. This budget will be used with a local scope in the
media. The brea" down is '*D for billboards, +*D for posters and flyers, +.D for local
newspapers and magaHines, +-..D for local radio stations and television channels, '*D for
direct mar"eting operations, .D for setting up and maintaining a %eb site, as well as +..D that
could be used to nurture relationships or partnerships with local stores providing referrals to
their customers.
-.+ Aedia Plan
5ses and costs of specific mar"eting tools for the first year&
Co%%$nication .ool
'$get
7
Cost .i%ing
@illboards '*D E),))' Starting before opening.
Posters and flyers +*D E'-,-/+
Announce the opening of the facility.
Also steady flyers to inform about the facilities.
0ocal newspapers and
magaHines
+.D E++,+*> ;pening time M steady ads.
0ocal radio stations and
television channels
+-..D E+?,?+> ;pening time M steady ads.
8irect mar"eting '*D E),))'
%ebsite .D E?,??+
Available before the opening of the facilities M
updates to allow online reservation for a bay.
elations with local
businesses
+..D E+,++*
Total '**D E)),)'+
-.+.' Service and %arranty
84Y %ash NC $ix will not give any warranty of the repair operations made by individuals. %hen
chec"ing in, the customer fills out a form with a disclaimer relin!uishing 84Y %ash NC $ix from
any liability resulting in the customerCs inability to perform the repair, as well as any lost or
stolen property if the customer leaves the bay unattended. =owever, 84Y %ash NC $ix provides
advice and information to its customers in terms of which tools to use, and repair guides are
available for consultation.
-.> Target Aar"et Segment Strategy
Pri%ary .arget 1ar-ets
Page 12
%I& 'ash () *i+
The broad target mar"et for 84Y %ash NC $ix consists of individuals who are willing and able to
perform minor repair and maintenance on automobiles. Specifically, we are targeting an
individual who wants to wor" on his vehicle, yet does not have the proper tools or ade!uate
wor"space to do so. %e believe there is a segment of the population that would li"e to perform
their own maintenance, but do not for the following reasons&
'. They do not have an appropriate space to wor" on their vehicle, such as a heated, well(lit
garage.
+. They do not have the right e!uipment, such as hydraulic lifts, pneumatic wrenches, etc.
>. They do not have the right tools, such as tor!ue wrenches, star(headed screwdrivers,
extension soc"et wrenches, etc.
1ertain auto parts re!uire special tools to replace that specific part. These tools can be
expensive and impractical for the average consumer to buy. Targeting individuals with physical
space constraints is essential to our success. ;ur target mar"et must have the desire to do this
wor" but lac" the area to do it in. $or example, individuals living in apartment buildings cannot
do maintenance on their vehicles in the apartment building par"ing lots. The number one
reason individuals do 84Y wor" is to save money. Therefore, we are targeting the lower income
do(it(yourselfer who will find our services beneficial.
Seconary .arget 1ar-ets
The secondary target mar"et for 84Y %ash NC $ix is focused on individuals who wash their own
vehicles. This is a broader mar"et that includes our entire primary mar"et. This individual bears
the responsibility of maintaining their vehicleCs appearance. The cost savings and act of washing
their own vehicle is more attractive to them than paying someone else to do it.
8e%ographics of .arget 1ar-et
4n a comprehensive survey consisting of +,.)? interviews with do(it(yourselfers, approximately
),D of the respondents were male. The brea"down of the respondents according to age was as
follows&
Age Percent
O ') +D
')(+. ')D
+/(>. >*D
>/(?. +?D
?/(.. '/D
./(/. -D
P /. >D
As previously mentioned, saving money is important to the do(it(yourselfer. Therefore, income
is also important in identifying the target mar"et. The following is a list of the amount of 84Y
activity as a function of income&
Page 13
%I& 'ash () *i+
Inco%e A%o$nt of 8I9 activity
O E+*,*** '+D
E+*(E+,,*** ')D
E>*(E>,,*** ++D
E?*(E?,,*** '+D
E,*(E,,,,,, '?D
@ro"en down by race, the number of Asians and =ispanics that are do(it(yourselfers was
approximately /*D. 1aucasians and African Americans registered at approximately ?)D.
To determine geographic locations for this target mar"et, the top locations for retail after(
mar"et auto parts were evaluated. According to the 5.S. 8epartment of 0abor, the following
states have the most auto parts stores& 1alifornia 6.,*>*7, Texas 6>,+)*7 and $lorida 6+,..)7.
Therefore, we are going to locate our facility in one of these states because of the high
percentage of 84Y sales.
).* 1ontingency Plan
The business model is viable for the foreseeable future. There is no readily available personal
transportation substitute for cars and truc"s and despite the improving engineering, there will
always be a need for maintenance and repairs. There will also always be people that love their
cars and will want to do their own wor". Additionally, as cars become more complex, people will
not want to buy the specialty tools re!uired to do some of the wor", but would be willing to rent
them.
Also, as metropolitan areas grow, more people are living in apartments and condominiums,
which restrict the repairs which can be done in the par"ing lots. This also will help support our
business model, as people loo" for alternative space in which to wor" on their vehicles.
).' Browth Strategy
Biven that the success of the firm is rooted in the demographics of the local mar"et, expansion
must be done very carefully. This business model will most li"ely grow through the opening of
new facilities in new mar"ets. ;nce the enterprise has reached its maximum geographical limit
under the current management, a possible growth strategy will be to franchise the name and
business process. The most probable target mar"et for this expansion strategy would be current
owners of coin(operated car washes.
4n addition, our business model will provide a first(mover advantage. This is an easy business
model to copy, but a first mover can establish a strong enough foothold into a given mar"et so
that it will continue to provide a solid cash flow even if competitors move in. $ranchising will
allow us to expand farther faster.
).+ Succession Plan
This firm will be incorporated to protect the owners from personal liability. Succession will come
at the discretion of the board.
Page 14
%I& 'ash () *i+
,.* $inancial Plan
The financials of 84Y %ash NC $ix are built upon a number of conservative assumptions. The
business is segmented into the original six car wash bays and three of each of the following
bays& car painting, oil changeGbasic repair and other ma<or repairs.
The balance sheet shows that most of our assets are long(term PPI9. 1ash, the only short(term
asset, is forecasted to grow at about -D per year from E'--,>/+ to E>--,>'-. 4nitially, total
assets are E-..,./+. 0iabilities consist of the long(term loans ta"en on to pay for the PPI9,
which amount to E.+*,>)*. This leaves us with E+>.,')+ in initial owners e!uity.
The income statement reveals that revenues for each segment and the entire business are
expected to grow at .D per year, and net income is forecasted to grow at about /D per year.
:;penses
9xpenses are approximately .-D of revenues. 9xpenses include wages, utilities, maintenance,
mar"eting and capital expenditures. %ages are set at E-.** per hour for cler"s and E+..** per
hour for mechanics. There will be three cler"s and three mechanics on staff full(time to ensure
that a cler" and a mechanic are always available during business hours of -&** AA to ''&**
PA. 5tilities are estimated to be '.D of revenues. 8irect cost of sales 6i.e., maintenance
expenses7 for all e!uipment, including the hydraulic lifts and painting e!uipment, are estimated
to be +..D of revenues. Aaintenance for the tools is 'D of revenues, and clean up for the car
painting operation are .D of revenues. ;ther building maintenance is estimated at *..D of
revenues. The mar"eting budget is '*D of revenues. There is a capital expenditure of E',.**
per year to replace lost or bro"en tools. 8epreciation is done on a straight(line basis. The time
periods used are '. years for all e!uipment and >* years for the buildings.
+inancing
84Y %ash NC $ix has ta"en on long(term debt to finance its asset purchases of E.-),+**. The
debt ranges in maturity from '. to >* years, and it is financed at )D. There was an initial
outlay of '*D of all the assets purchased for a down payment on the loans, totaling E.-,)+*.
Therefore, the amount financed is ,*D of the asset value, or E.+*,>)*. This amounts to a
monthly debt service of E?,'+) or E?,,+?. annually.
The old car wash with six bays that we purchase to start our business is valued on an asset
basis at approx. E++.,***. This purchase price includes sufficient land to build our new
facility. After we put the '*D down, our loan value is E+*+,.**. The car wash will be
depreciated over >* years for the building and over '. years for the e!uipment.
%e will construct a new building on the land we purchased with nine new bays for our car
painting and repair operations. 1onstruction costs are estimated at E>*,*** per bay, for a
total of E+-*,***. $or each of the three car painting bays, there will be an additional cost of
E'*,*** per bay for proper ventilation and environmental compliance. Therefore, our total
construction costs are E>**,***. %e will put '*D down and finance E+-*,*** for >* years
at )D.
Pricing an "even$es
84Y %ash NC $ix will charge E. per car wash in our coin(operated facility. %e have assumed an
average usage of seven hours per day, so this amounts to E>. per bay per day or E',*.* per
Page 1$
%I& 'ash () *i+
month. %e have six bays, so our annual direct car wash revenues are E-.,/**. 4n addition to
the basic car wash, we have assumed that the facility we purchased will include six vacuums,
two vending machines and one fragrance machine for customers to use for a nominal fee.
These amount to additional annual revenues of E'),-+*. 1ar wash revenues are estimated to
increase .D per year, due to the value(added services we provide on location at 84Y %ash NC
$ix.
%e have three bays with a small /,***(pound capacity lift to perform oil changes and basic
repair wor". %e will charge E'. per hour for use of these bays, in order to be competitive with
our competition in !uic" oil changes. 9stimated usage is seven hours per day. These lifts cost
E+,'** each, for a total of E/,>**. %eCre financing E.,/-* for '. years at )D.
%e have three additional bays e!uipped with '+,***(pound capacity heavy(duty lifts for
complicated repair wor". The cost to use these bays is E>* per hour, with an additional tools
cost of E'* per hour to access up to ten tools at a time. 9stimated usage is seven hours per
day. The tools purchases, amounting to E+.,*** initially, are included in this segment, because
this is where we expect the ma<or tool usage. The large lifts cost E.,)** each, for a total of
E'-,?** in lift costs. Total financing for the lifts and the tools is E>),'/*.
$inally, there are three bays e!uipped to paint cars and the fee is E.* per hour. 4t is probable
that one paint <ob will ta"e most of the seven hours estimated usage, including drying time
unexposed to the elements. The fee for painting is higher, because the bays are more expensive
to build and maintain. 9!uipment, including compressors and paint guns, will cost E?,.**, and
we will finance E?,*.*.
,.' 4mportant Assumptions
The "ey assumption within this business model is& there is a portion of the population that
would li"e to do basic repairs andGor maintenance on their vehicles, but they donCt because they
lac" necessary tools or a proper wor" space. Therefore, they will be willing to pay rental fees to
have access to tools and a wor" space.
Biven that the assumption is true, then the "ey element of success for the venture will be
pricing. The customers must feel there is value for the rent they are paying. 4f the price is too
high, the substitution for our service will be ta"ing a vehicle to a full service mechanic.
=owever, if the price is too low, the firm will not be able to recover the cost of the initial capital
expenditures.
4f the assumption is not true and the firm cannot attract enough customers, then several exit
strategies are available&
'. Aaintain ownership of both the car wash and repair bays, but lease the repair bays to a full
service auto mechanic firm.
+. Aaintain ownership of both the car wash and repair bays, but own and operate a franchised
auto repair shop 6Aidas, Aeine"e, etc.7 in the repair bays and provide full service and
eliminate do(it(yourself.
>. Sell all property and exit industry.
Page 16
%I& 'ash () *i+
,.+ @rea"(even Analysis
The chart and table below show the @rea"(even Analysis for the company.
1hart& @rea"(even Analysis
Table& @rea"(even Analysis
Break-even Analysis
M!nthl/ $nits 0rea12even 2,769
M!nthl/ +even)e 0rea12even $45,236
Ass)m#ti!ns3
Average "er2$nit +even)e $16,34
Average "er2$nit (aria4le &!st $1,06
Estimated Monthly Fixed Cost $42,289
Page 1
%I& 'ash () *i+
,.> Pro<ected Profit and 0oss
The table below shows the profit and loss statement for the company.
Table& Profit and 0oss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
%ales $888,120 $932,526 $979,152
-irect &!st !. %ales $57,852 $60,745 $63,782
*ther $0 $0 $0
!tal &!st !. %ales $57,852 $60,745 $63,782
Gr!ss Margin $830,268 $871,781 $915,370
Gr!ss Margin 5 93,495 93,495 93,495
67#enses
"a/r!ll $226,225 $237,536 $249,413
%ales and Mar1eting and *ther 67#enses $228,030 $240,132 $252,788
-e#reciati!n $1,200 $1,200 $1,200
8ns)rance $18,084 $17,970 $17,435
"a/r!ll a7es $33,934 $35,630 $37,412
*ther $0 $0 $0
!tal *#erating 67#enses $507,472 $532,468 $558,248
"r!.it 0e.!re 8nterest and a7es $322,796 $339,314 $357,123
608-A $323,996 $340,514 $358,323
8nterest 67#ense $41,285 $40,650 $39,934
a7es 8nc)rred $110,261 $119,466 $124,232
9et "r!.it $171,250 $179,198 $192,956
Net Profit/Sales 19,285 19,225 19,715
Page 1!
%I& 'ash () *i+
,.? Pro<ected 1ash $low
As can be seen in the following chart and table, the company expects a steady increase in cash
flow within the first twelve months of operation, continuing through the first three years of plan
implementation.
1hart& 1ash
Table& 1ash $low
Pro Forma Cash Flow
Year 1 Year 2 Year 3
&ash +eceived
&ash .r!m *#erati!ns
&ash %ales $888,120 $932,526 $979,152
%)4t!tal &ash .r!m *#erati!ns $888,120 $932,526 $979,152
Additi!nal &ash +eceived
%ales a7, (A, :%;G% +eceived $0 $0 $0
9e< &)rrent 0!rr!<ing $0 $0 $0
9e< *ther =ia4ilities >interest2.ree? $0 $0 $0
9e< =!ng2term =ia4ilities $0 $0 $0
%ales !. *ther &)rrent Assets $0 $0 $0
%ales !. =!ng2term Assets $0 $0 $0
9e< 8nvestment +eceived $0 $0 $0
%)4t!tal &ash +eceived $888,120 $932,526 $979,152
67#endit)res Year 1 Year 2 Year 3
Page 1"
%I& 'ash () *i+
67#endit)res .r!m *#erati!ns
&ash %#ending $226,225 $237,536 $249,413
0ill "a/ments $455,147 $512,398 $534,171
%)4t!tal %#ent !n *#erati!ns $681,371 $749,934 $783,584
Additi!nal &ash %#ent
%ales a7, (A, :%;G% "aid *)t $0 $0 $0
"rinci#al +e#a/ment !. &)rrent 0!rr!<ing $0 $0 $0
*ther =ia4ilities "rinci#al +e#a/ment $0 $0 $0
=!ng2term =ia4ilities "rinci#al +e#a/ment $7,960 $8,597 $9,285
")rchase *ther &)rrent Assets $0 $0 $0
")rchase =!ng2term Assets $1,500 $1,500 $1,500
-ividends $0 $0 $0
%)4t!tal &ash %#ent $690,831 $760,031 $794,369
9et &ash @l!< $197,289 $172,495 $184,784
Cash Balance $374,651 $547,146 $731,930
Page 2#
%I& 'ash () *i+
,.. Pro<ected @alance Sheet
The table below shows the pro<ected @alance Sheet for the company.
Table& @alance Sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
&)rrent Assets
&ash $374,651 $547,146 $731,930
8nvent!r/ $5,303 $5,847 $6,139
*ther &)rrent Assets $0 $0 $0
!tal &)rrent Assets $379,954 $552,993 $738,069
=!ng2term Assets
=!ng2term Assets $579,700 $581,200 $582,700
Acc)m)lated -e#reciati!n $1,200 $2,400 $3,600
!tal =!ng2term Assets $578,500 $578,800 $579,100
!tal Assets $958,454 $1,131,793 $1,317,169
=ia4ilities and &a#ital Year 1 Year 2 Year 3
&)rrent =ia4ilities
Acc!)nts "a/a4le $39,602 $42,340 $44,045
&)rrent 0!rr!<ing $0 $0 $0
*ther &)rrent =ia4ilities $0 $0 $0
%)4t!tal &)rrent =ia4ilities $39,602 $42,340 $44,045
=!ng2term =ia4ilities $512,420 $503,823 $494,538
!tal =ia4ilities $552,022 $546,163 $538,583
"aid2in &a#ital $236,182 $236,182 $236,182
+etained 6arnings >$1,000? $170,250 $349,448
6arnings $171,250 $179,198 $192,956
!tal &a#ital $406,432 $585,630 $778,586
!tal =ia4ilities and &a#ital $958,454 $1,131,793 $1,317,169
Net Worth $406,432 $585,630 $778,586
,./ @usiness atios
The following table contains important ratios from the automotive services industry, as
determined by the Standard 4ndustry 1lassification 6S417 4ndex code -.?+.
Table& atios
Ratio Analysis
Year 1 Year 2 Year 3 8nd)str/ "r!.ile
Page 21
%I& 'ash () *i+
%ales Gr!<th n,a, 5,005 5,005 3,005
"ercent !. !tal Assets
8nvent!r/ 0,555 0,525 0,475 9,505
*ther &)rrent Assets 0,005 0,005 0,005 26,405
!tal &)rrent Assets 39,645 48,865 56,035 44,605
=!ng2term Assets 60,365 51,145 43,975 55,405
!tal Assets 100,005 100,005 100,005 100,005
&)rrent =ia4ilities 4,135 3,745 3,345 29,305
=!ng2term =ia4ilities 53,465 44,525 37,555 27,805
!tal =ia4ilities 57,605 48,265 40,895 57,105
9et '!rth 42,405 51,745 59,115 42,905
"ercent !. %ales
%ales 100,005 100,005 100,005 100,005
Gr!ss Margin 93,495 93,495 93,495 0,005
%elling, General A Administrative 67#enses 74,475 74,275 74,055 68,205
Advertising 67#enses 10,005 10,005 10,005 1,505
"r!.it 0e.!re 8nterest and a7es 36,355 36,395 36,475 2,705
Main +ati!s
&)rrent 9,59 13,06 16,76 1,53
B)ic1 9,46 12,92 16,62 0,88
!tal -e4t t! !tal Assets 57,605 48,265 40,895 57,105
"re2ta7 +et)rn !n 9et '!rth 69,265 51,005 40,745 3,405
"re2ta7 +et)rn !n Assets 29,375 26,395 24,085 8,005
Additi!nal +ati!s Year 1 Year 2 Year 3
9et "r!.it Margin 19,285 19,225 19,715 n,a
+et)rn !n 6C)it/ 42,135 30,605 24,785 n,a
Activit/ +ati!s
8nvent!r/ )rn!ver 10,91 10,90 10,64 n,a
Acc!)nts "a/a4le )rn!ver 12,49 12,17 12,17 n,a
"a/ment -a/s 27 29 29 n,a
!tal Asset )rn!ver 0,93 0,82 0,74 n,a
-e4t +ati!s
-e4t t! 9et '!rth 1,36 0,93 0,69 n,a
&)rrent =ia4, t! =ia4, 0,07 0,08 0,08 n,a
=iC)idit/ +ati!s
9et '!r1ing &a#ital $340,352 $510,653 $694,024 n,a
8nterest &!verage 7,82 8,35 8,94 n,a
Additi!nal +ati!s
Assets t! %ales 1,08 1,21 1,35 n,a
&)rrent -e4t;!tal Assets 45 45 35 n,a
Acid est 9,46 12,92 16,62 n,a
%ales;9et '!rth 2,19 1,59 1,26 n,a
Diidend Payout 0,00 0,00 0,00 n,a
Page 22
,ppendi+
Table& Profit and 0oss
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010
Direct Cost of Sales $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821
ross Mar!in $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189 $69,189
ross Mar!in " 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49" 93#49"
$%&enses
'a(roll $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852
Sales an) Mar*etin! an) Other
$%&enses
$19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003 $19,003
De&reciation $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
+ns,rance $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507 $1,507
'a(roll Ta%es 15" $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828 $2,828
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total O&eratin! $%&enses $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289 $42,289
'rofit -efore +nterest an) Ta%es $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900 $26,900
$-+TD. $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 $27,000
+nterest $%&ense $3,465 $3,460 $3,456 $3,452 $3,447 $3,443 $3,438 $3,434 $3,429 $3,425 $3,421 $3,416
Ta%es +nc,rre) $7,030 $9,376 $9,377 $9,379 $9,381 $9,383 $9,385 $9,386 $9,388 $9,390 $9,392 $9,393
/et 'rofit $16,404 $14,064 $14,066 $14,069 $14,072 $14,074 $14,077 $14,079 $14,082 $14,085 $14,087 $14,090
Net Profit/Sales 22#17" 19#00" 19#01" 19#01" 19#01" 19#02" 19#02" 19#02" 19#03" 19#03" 19#03" 19#04"
Page 1
,ppendi+
Table& 1ash $low
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash 0ecei1e)
Cash fro2 O&erations
Cash Sales $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010
S,3total Cash fro2 O&erations $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010
.))itional Cash 0ecei1e)
Sales Ta%, 4.T, 5ST6ST 0ecei1e) 0#00" $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
/e7 C,rrent -orro7in! $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
/e7 Other 8ia3ilities 9interest:free; $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
/e7 8on!:ter2 8ia3ilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other C,rrent .ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of 8on!:ter2 .ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
/e7 +n1est2ent 0ecei1e) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
S,3total Cash 0ecei1e) $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010
$%&en)it,res Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
$%&en)it,res fro2 O&erations
Cash S&en)in! $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852
-ill 'a(2ents $1,465 $43,858 $40,994 $40,992 $40,989 $40,986 $40,984 $40,981 $40,978 $40,976 $40,973 $40,970
S,3total S&ent on O&erations $20,317 $62,710 $59,846 $59,844 $59,841 $59,838 $59,836 $59,833 $59,830 $59,828 $59,825 $59,822
.))itional Cash S&ent
Sales Ta%, 4.T, 5ST6ST 'ai) O,t $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
'rinci&al 0e&a(2ent of C,rrent -orro7in! $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 8ia3ilities 'rinci&al 0e&a(2ent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
8on!:ter2 8ia3ilities 'rinci&al 0e&a(2ent $663 $663 $663 $663 $663 $663 $663 $663 $663 $663 $663 $663
',rchase Other C,rrent .ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
',rchase 8on!:ter2 .ssets $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Di1i)en)s $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 2
,ppendi+
S,3total Cash S&ent $21,106 $63,498 $60,635 $60,632 $60,629 $60,627 $60,624 $60,621 $60,619 $60,616 $60,613 $60,611
/et Cash <lo7 $52,904 $10,512 $13,375 $13,378 $13,381 $13,383 $13,386 $13,389 $13,391 $13,394 $13,397 $13,399
Cash Balance $230,266 $240,778 $254,153 $267,531 $280,912 $294,295 $307,681 $321,070 $334,461 $347,855 $361,252 $374,651
Page 3
,ppendi+
Table& @alance Sheet
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
.ssets Startin! -alances
C,rrent .ssets
Cash $177,362 $230,266 $240,778 $254,153 $267,531 $280,912 $294,295 $307,681 $321,070 $334,461 $347,855 $361,252 $374,651
+n1entor( $0 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303 $5,303
Other C,rrent .ssets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total C,rrent .ssets $177,362 $235,569 $246,081 $259,457 $272,835 $286,215 $299,598 $312,984 $326,373 $339,764 $353,158 $366,555 $379,954
8on!:ter2 .ssets
8on!:ter2 .ssets $578,200 $578,325 $578,450 $578,575 $578,700 $578,825 $578,950 $579,075 $579,200 $579,325 $579,450 $579,575 $579,700
.cc,2,late) De&reciation $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200
Total 8on!:ter2 .ssets $578,200 $578,225 $578,250 $578,275 $578,300 $578,325 $578,350 $578,375 $578,400 $578,425 $578,450 $578,475 $578,500
Total .ssets $755,562 $813,794 $824,331 $837,732 $851,135 $864,540 $877,948 $891,359 $904,773 $918,189 $931,608 $945,030 $958,454
8ia3ilities an) Ca&ital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
C,rrent 8ia3ilities
.cco,nts 'a(a3le $0 $42,491 $39,628 $39,625 $39,623 $39,620 $39,618 $39,615 $39,613 $39,610 $39,607 $39,605 $39,602
C,rrent -orro7in! $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other C,rrent 8ia3ilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
S,3total C,rrent 8ia3ilities $0 $42,491 $39,628 $39,625 $39,623 $39,620 $39,618 $39,615 $39,613 $39,610 $39,607 $39,605 $39,602
8on!:ter2 8ia3ilities $520,380 $519,717 $519,053 $518,390 $517,727 $517,063 $516,400 $515,737 $515,073 $514,410 $513,747 $513,083 $512,420
Total 8ia3ilities $520,380 $562,208 $558,681 $558,015 $557,349 $556,684 $556,018 $555,352 $554,686 $554,020 $553,354 $552,688 $552,022
'ai):in Ca&ital $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182 $236,182
0etaine) $arnin!s 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000; 9$1,000;
$arnin!s $0 $16,404 $30,468 $44,534 $58,603 $72,675 $86,749 $100,826 $114,905 $128,987 $143,072 $157,160 $171,250
Total Ca&ital $235,182 $251,586 $265,650 $279,716 $293,785 $307,857 $321,931 $336,008 $350,087 $364,169 $378,254 $392,342 $406,432
Total 8ia3ilities an) Ca&ital $755,562 $813,794 $824,331 $837,732 $851,135 $864,540 $877,948 $891,359 $904,773 $918,189 $931,608 $945,030 $958,454
Net Worth $235,182 $251,586 $265,650 $279,716 $293,785 $307,857 $321,931 $336,008 $350,087 $364,169 $378,254 $392,342 $406,432
Page 4
,ppendi+
Table& Sales $orecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
=nit Sales
Car >ash 0" 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260
4ac,,2 Cleanin! 0" 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260
Car 'aint 0" 630 630 630 630 630 630 630 630 630 630 630 630
Oil Chan!e 0" 630 630 630 630 630 630 630 630 630 630 630 630
Other 0e&air 0" 630 630 630 630 630 630 630 630 630 630 630 630
4en)in! Machines, etc# 0" 120 120 120 120 120 120 120 120 120 120 120 120
Total =nit Sales 4,530 4,530 4,530 4,530 4,530 4,530 4,530 4,530 4,530 4,530 4,530 4,530
=nit 'rices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Car >ash $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00 $5#00
4ac,,2 Cleanin! $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00 $1#00
Car 'aint $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00 $50#00
Oil Chan!e $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00 $15#00
Other 0e&air $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00 $40#00
4en)in! Machines, etc# $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50 $2#50
Sales
Car >ash $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300
4ac,,2 Cleanin! $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260 $1,260
Car 'aint $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500 $31,500
Oil Chan!e $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450 $9,450
Other 0e&air $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200 $25,200
4en)in! Machines, etc# $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Total Sales $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010 $74,010
Direct =nit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Car >ash 0#00" $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13 $2#13
4ac,,2 Cleanin! 0#00" $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43 $0#43
Car 'aint 0#00" $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13 $1#13
Oil Chan!e 0#00" $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38 $0#38
Other 0e&air 0#00" $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85 $0#85
4en)in! Machines, etc# 0#00" $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06 $1#06
Page $
,ppendi+
Direct Cost of Sales
Car >ash $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678 $2,678
4ac,,2 Cleanin! $536 $536 $536 $536 $536 $536 $536 $536 $536 $536 $536 $536
Car 'aint $709 $709 $709 $709 $709 $709 $709 $709 $709 $709 $709 $709
Oil Chan!e $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236 $236
Other 0e&air $536 $536 $536 $536 $536 $536 $536 $536 $536 $536 $536 $536
4en)in! Machines, etc# $128 $128 $128 $128 $128 $128 $128 $128 $128 $128 $128 $128
Subtotal Direct Cost of Sales $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821 $4,821
Page 6
,ppendi+
Table& Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
eneral Mana!er 0" $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Mechanics 0" $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124 $12,124
.)2inistrati1e 0" $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395 $3,395
Total 'eo&le 7 7 7 7 7 7 7 7 7 7 7 7
Total Payroll $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852 $18,852
Page
,ppendi+
Table& Beneral Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
'lan Month 1 2 3 4 5 6 7 8 9 10 11 12
C,rrent +nterest 0ate 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00"
8on!:ter2 +nterest 0ate 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00" 8#00"
Ta% 0ate 30#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00" 40#00"
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page !