Business plan of a hand car wash

Business Plan of Clean Machine Hand Car Wash

 

Executive Summary

 

The owner of Clean Machine is a prominent figure in the Morningside, Johannesburg business district, and he hopes that his loyal business acquaintances and local friends will be a competitive advantage to him.  Clean Machine is an exclusive hand car wash, and will be serving the Morningside community.

 

The Business

 

Clean Machine will aim to fulfil three types of needs in the car wash industry, namely interior cleaning and vacuuming, exterior hand wash and detailing.  There are no other car washes in the vicinity that offers a good quality service like this, at affordable rates, and thus Clean Machine has no direct competitors in the area.  The owner of Clean Machine believe in the value adding qualities of happy employees, and will focus on employing only the best workers, at more than the minimum wage.

 

The Customers

 

Clean Machine’s target market will be divided into three main categories: individual’s (or “walk-in’s”), dealerships, and the local business community.  The average income of residents in this area is estimated to be over R70,000 a year. This means that their average customer is quite affluent, and that they will probably have expensive cars which they want to keep in mint condition.  Being in the middle of a business centre, they will most likely attract the local businesses that have company cars and would need them washed on a regular basis.  The most lucrative option, however, are the six different car dealerships that operate in the area and the owner of Clean Machine will target his marketing efforts on them.

 

Management

 

The owner, John, has over 10 years’ working experience in the car repair industry, of which 4 years as an operations manager.  John feels that this experience, together with the friendships he has formed in the business community of Morningside, is Clean Machine’s main strength.  His qualifications include an MBA from the University of Johannesburg.

Clean Machine will be the only exclusive hand car wash in the Morningside are and they estimates their market share on 20%.  It is assumed that Clean Machine will achieve a 95% gross margin and an 11% net margin after the first year, and a 20.79% net margin after year three.  The business will reach a yearly net profit of R48,000 by year three.

 

Objectives

 

Clean Machine’s objectives are:

 

1.    To be the only exclusive car wash in Morningside.
2.    To keep the gross profit margin over 95%.
3.    To keep up the net profit margin of 10-15%.
4.    To look at expansion opportunities after year 3.

 

Mission

 

Clean Machine’s mission is to be a premium quality car wash service for the residents and business owner in Morningside.  John will strive to keep employees loyal and in high spirits to ensure customer satisfaction.

 

 

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