m




 m


 Soapy Rides will be providing customers with three services:

exterior car washing, interior cleaning, and detailing. Soapy
Rides has no true competitors that are trying to offer a high
quality service for a reasonable rate.

 Soapy Rides' ability to provide a high quality service, both in

regards to the actual washing as well as customer service is all
based on their ability to find the best employees.
 



Soapy Rides will target three main groups of customers:

 Mndividual car owner and leasers,

 Car dealerships, and

 Local businesses.


he company soapy rides has a very strong, experienced and
professional management team. With each member working in their
area of specialization we have every aspect of the business covered.

 Ô
 
will be: Owner/Operator with 35% ownership and will be
responsible for buying, customer sales and fittings.

 G     will be: Co-owner with 26% ownership and will act as

merchandising consultant, employee training and part-time sales.

 3   
 will be: Co-owner with 19% ownership and will act as
Operation Manager responsible for payable and receivables, inventory
control, in store promotions, billing and sales.

 Ý
 Ô
will be: co-owner and working partner with 20% ownership
and will act as CRM Manager and Procurement.
 Soapy Rides is positioning itself as the premier hand car wash
serving the South Delhi area. We have forecasted a 20% market
share.

By year three the business will have developed a respectable yearly

net profit.

2500000
2300000
2200000

2000000

1500000
1500000 1400000
1200000 sales
1100000
gross margin
1000000
net profit

500000 400000
200000 250000

0
year 1 year 2 year 3

m

he objectives for Soapy Rides Car Wash
and Detail Service are:

 o be viewed as a premium car wash

and detail service in South Delhi.
 Maintain a very high gross profit margin.
 Maintain a modest, steadily growing net
profit margin.
 Expand to two locations after third year
of operation.





 he mission of Soapy Ride is to

provide top-quality washing and detail
service for luxury car owners in South
Delhi will work to keep employees
satisfied in order to maintain impeccable
customer service.

 


|
 


he company will be solely owned by
Ý


  Ý Ý 

Ý 
Ý 
  Ý 

, of the prominent
CMS family.
We felt NFC, Delhi would be a perfect
location for a car wash service.

  
290000
300000

250000

200000
200000

RS
150000

90000
100000

50000

0
0
EXPENCES ASSES MNVESMENS LOANS
 6
 

Requirements

Start-up Expenses
Legal Rs5000
Stationery etc. Rs4000
Brochures Rs4500
Consultants Rs00
Mnsurance Rs2000
Rent Rs1,2000
Research and Development Rs3000
Expensed Equipment Rs4,1000
Signs Rs7000
Building Materials Rs1,2000
Building Labor Rs1,0000
o t a l S t a r t - u p E x p e n s e s Rs10,0500

Start-up Assets
Cash Required Rs8,7000
Start-up Mnventory Rs2500
Other Current Assets Rs1,0000
Long-term Assets Rs10,0000
o t a l A s s e t s Rs19,9500

o t a l R e q u i r e m e n t s Rs30,0000
6
 


Start-up Expenses to Fund Rs10,0500

Start-up Assets to Fund Rs19,9500

otal Funding Required Rs30,0000

Non-cash Assets from Start-up Rs11,2500

Cash Requirements from Start-up Rs8,7000

Additional Cash Raised Rs00

Cash Balance on Starting Date Rs8,7000

otal Assets Rs19,9500

J
   
 

 


Liabilities
Current Borrowing Rs0
Long-term Liabilities Rs0
Accounts Payable (Outstanding Bills) Rs0
Other Current Liabilities (interest-free) Rs0
otal Liabilities Rs0

|




Planned Mnvestment
Mnvestor 1 Rs30,000
Mnvestor 2 Rs0
Other Rs0
Additional Mnvestment Requirement Rs0
otal Planned Mnvestment Rs30,0000

Loss at Start-up (Start-up Expenses) (Rs10,0500)

otal Capital Rs19,9500

otal Capital and Liabilities Rs19,9500

otal Funding Rs30,0000


 

Soapy Rides will provide three services to

its customers:

 Car washing (exterior)

 Car cleaning (interior)

 Car detailing
Market Analysis Summary
 he car wash will be based in NFC,
NEW DELHM. his area has a number of
benefits in terms of the market that it will
provide for the business
 Many people in the neighborhood own
and/or lease new cars and place great
value on their cars and how they look.
Market Segmentation
 ë  

   

  
  

 
 

  



   




M
 
 

½ear 1 ½ear 2 ½ear 3 ½ear 4 ½ear 5

Potential
Growth CAGR
Customers

New Car Owners 10% 7,200 7,920 8,712 9,583 10,541 10.00%

Older Luxury Car

15% 12,500 14,375 16,531 19,011 21,863 15.00%
Owners

Sports Car Owners 15% 6,500 7,475 8,596 9,885 11,368 15.00%

Lifetime Owners 10% 17,000 18,700 20,570 22,627 24,890 10.00%

New and Used Car

7% 9 10 11 12 13 9.63%
Dealerships

otal 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%

 
 



 

Market Analysis
½ear 1 ½ear 2 ½ear 3 ½ear 4 ½ear 5
Potential
Growth CAGR
Customers
New Car
10% 7,200 7,920 8,712 9,583 10,541 10.00%
Owners
Older
Luxury Car 15% 12,500 14,375 16,531 19,011 21,863 15.00%
Owners
Sports Car
15% 6,500 7,475 8,596 9,885 11,368 15.00%
Owners
Lifetime
10% 17,000 18,700 20,570 22,627 24,890 10.00%
Owners
New and
Used Car
7% 9 10 11 12 13 9.63%
Dealership
s
otal 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%

 



 

 he strategy behind Soapy Rides target segmentation is to
attract customers who will be repeat users and will frequent the
business in the typically quiet times for a car wash business
 Soapy Rides will target people who will tend not to be restricted
to these busy times.
 Business owners (new car owners) tend to be very busy people,
but are often able to make their own hours.
 Retired people (older luxury car owners) are not restricted by
typical work schedules so will be able to frequent the car wash
during the week.
 Dealerships will need cars detailed and washed regardless of
the time of the day and week. his will supply a constant flow of
traffic.
 Businesses will need their fleet cars washed during the week
during regular business hours.

 




 he key differentiator for Soapy Rides Car Wash is our team and
business and personal connections within the NFC neighborhood.
For this reason, the sales and marketing focus will be on a one-to-
one basis, with the emphasis on gaining loyal and repeat customers
as "friends" of the business.

 |
 

  
  

  
 

2500000

car delearship details

2000000

business fleet
washes
1500000 end user detail

interior wash
1000000

exterior wash

500000 full wash

0
year 1 year 2 year 3
Sales Forecast
½ear 1 ½ear 2 ½ear 3
Unit Sales
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Mnterior Clean 770 1,001 1,301
End User Detail 129 193 290
Business Fleet Washes 615 923 1,384
Car Dealership Details 494 642 963
otal Unit Sales 5,818 7,712 10,376

Unit Prices ½ear 1 ½ear 2 ½ear 3

Full Wash Rs150.00 Rs150.00 Rs150.00
Exterior Wash Rs90.00 Rs100.00 Rs120.00
Mnterior Clean Rs80.00 Rs90.00 Rs90.00
End User Detail Rs1400.00 Rs1450.00 Rs1500.00
Business Fleet Washes Rs100.00 Rs100.00 Rs100.00
Car Dealership Details Rs700.00 Rs750.00 Rs800.00
Sales
Full Wash Rs26,4000 Rs34,3200 Rs44,6160

Exterior Wash Rs18,4500 Rs26,6500 Rs41,5740

Mnterior Clean Rs6,1600 Rs9,0090 Rs11,7120

End User Detail Rs18,0600 Rs27,9850 Rs43,4250

Business Fleet Washes Rs6,1500 Rs9,2250 Rs13,8380

Car Dealership Details Rs34,5800 Rs48,1500 Rs77,0400

otal Sales Rs109,8000 Rs155,3390 Rs232,2040

Direct Unit Costs ½ear 1 ½ear 2 ½ear 3
Full Wash Rs07 Rs08 Rs09.0
Exterior Wash Rs04 Rs04.5 Rs05.0
Mnterior Clean Rs03 Rs03.5 Rs04.0
End User Detail Rs30.00 Rs35.0 Rs40.00
Business Fleet Washes Rs07 Rs07.5 Rs08
Car Dealership Details Rs30 Rs35.0 Rs40.00

Direct Cost of Sales

Full Wash Rs1,2320 Rs1,8300 Rs2,6770
Exterior Wash Rs8200 Rs1,1990 Rs1,7320
Mnterior Clean Rs2310 Rs3500 Rs5210
End User Detail Rs3870 Rs6760 Rs1,1580
Business Fleet Washes Rs4310 Rs6920 Rs1,1070
Car Dealership Details Rs1,4820 Rs2,2470 Rs3,8520
Subtotal Direct Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470



Personnel Plan
½ear 1 ½ear 2 ½ear 3
Owner Rs180,000 Rs30,0000 Rs40,0000
Car Washers Rs30,2400 Rs43,3120 Rs51,1740
Admin/Sales Rs13,4400 Rs15,0000 Rs22,0000
otal People 0 0 0

otal Payroll Rs61,6800 Rs88,3120 Rs113,1740

he following plan outlines the financial development of Soapy Rides.

he business will be initially financed by a personal investment by
CMS GROUP and will finance growth through cash flow. his will
mean that the company will grow more slowly than it could, but it will
ensure that Mark retains control over the direction of the company.
 m   


10000

5000

0
0 70 140 210 280 350 420 490 560 630 700 770
-5000

-10000

Break-even Analysis

Monthly Units Break-even 423

Monthly Revenue Break-even Rs7,974

Assumptions:
Average Per-Unit Revenue Rs18.87
Average Per-Unit Variable Cost Rs0.79
Estimated Monthly Fixed Cost Rs7,641






  
600000
500000
400000
300000
profit yearly
200000
100000
0
year 1 year 2 year 3
 3


 

2500000

2000000

1500000
gross margin
1000000

500000

0
year 1 year 2 year 3
è
è

 

½ear 1 ½ear 2 ½ear 3

Sales Rs109,8000 Rs155,3390 Rs232,2040

Direct Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470

Other Rs00 Rs00 Rs00

otal Cost of Sales Rs4,5830 Rs6,9940 Rs11,0470

Gross Margin Rs105,2180 Rs148,3450 Rs221,1570

Gross Margin % 95.83% 95.50% 95.24%

Expenses
Payroll Rs61,6800 Rs88,3120 Rs113,1740
Sales and Marketing and Other
Rs2,6000 Rs1,5500 Rs1,7000
Expenses
Depreciation Rs2,0700 Rs2,0700 Rs2,0700
Leased Equipment Rs00 Rs00 Rs00
Utilities Rs3,3250 Rs3,5000 Rs3,7500
Mnsurance Rs1,8000 Rs1,8000 Rs1,8000
Rent Rs4,8000 Rs5,5000 Rs6,0000
Payroll axes Rs15,4200 Rs22,0780 Rs28,2940
Other Rs0 Rs00 Rs00

otal Operating Expenses Rs91,6950 Rs124,8100 Rs156,7880

Profit Before Mnterest and axes Rs13,5230 Rs23,5350 Rs64,3700

EBMDA Rs15,5920 Rs25,6050 Rs66,4400
Mnterest Expense Rs0 Rs0 Rs0
axes Mncurred Rs3,2040 Rs5,8840 Rs16,3610

Net Profit Rs10,3180 Rs17,6510 Rs48,009

Net Profit/Sales 9.40% 11.36% 20.68%
 



200000

150000

100000
t fl
b l
50000

-50000
è
|


½ear 1 ½ear 2 ½ear 3

Cash Received

Cash from Operations

Cash Sales Rs93,3300 Rs132,0380 Rs197,3740
Cash from Receivables Rs13,0970 Rs21,9020 Rs32,4700
Subtotal Cash from Operations Rs106,4270 Rs153,9400 Rs229,8430

Additional Cash Received

Sales ax, VA, HS/GS Received Rs0 Rs0 Rs0
New Current Borrowing Rs0 Rs0 Rs0
New Other Liabilities (interest-free) Rs0 Rs0 Rs0
New Long-term Liabilities Rs0 Rs0 Rs0
Sales of Other Current Assets Rs0 Rs0 Rs0
Sales of Long-term Assets Rs0 Rs0 Rs0
New Mnvestment Received Rs0 Rs00 Rs0
Subtotal Cash Received Rs106,4270 Rs153,9400 Rs229,8430
Expenditures ½ear 1 ½ear 2 ½ear 3

Expenditures from Operations

Cash Spending Rs61,6800 Rs88,3120 Rs113,1740
Bill Payments Rs33,0520 Rs46,8370 Rs67,7430
Subtotal Spent on Operations Rs94,7320 Rs135,1490 Rs180,9170

Additional Cash Spent

Sales ax, VA, HS/GS Paid Out Rs0 Rs0 Rs0
Principal Repayment of Current Borrowing Rs0 Rs0 Rs0
Other Liabilities Principal Repayment Rs0 Rs0 Rs0
Long-term Liabilities Principal Repayment Rs0 Rs0 Rs0
Purchase Other Current Assets Rs0 Rs0 Rs0
Purchase Long-term Assets Rs0 Rs0 Rs0
Dividends Rs0 Rs0 Rs0
Subtotal Cash Spent Rs94,7320 Rs135,1490 Rs180,9170

Net Cash Flow Rs11,6950 Rs18,7910 Rs48,9270

Cash Balance Rs20,3950 Rs39,1860 Rs88,1120
 è m  

Pro Forma Balance Sheet
½ear 1 ½ear 2 ½ear 3
Assets

Current Assets
Cash Rs20,3950 Rs39,1860 Rs88,1120
Accounts Receivable Rs3,3730 Rs4,7720 Rs7,1330
Mnventory Rs6680 Rs1,0190 Rs1,6090
Other Current Assets Rs1,0000 Rs1,0000 Rs1,0000
otal Current Assets Rs25,4350 Rs45,9760 Rs97,8540

Long-term Assets
Long-term Assets Rs10,0000 Rs10,0000 Rs10,0000
Accumulated Depreciation Rs2,0700 Rs4,1400 Rs6,2100
otal Long-term Assets Rs7,9300 Rs5,8600 Rs3,7900
otal Assets Rs33,3650 Rs51,8360 Rs101,6440
Liabilities and Capital ½ear 1 ½ear 2 ½ear 3

Current Liabilities
Accounts Payable Rs3,0970 Rs3,9170 Rs5,7160
Current Borrowing Rs0 Rs0 Rs0
Other Current Liabilities Rs0 Rs0 Rs0
Subtotal Current Liabilities Rs3,0970 Rs3,9170 Rs5,7160

Long-term Liabilities Rs0 Rs0 Rs0

otal Liabilities Rs3,0970 Rs3,9170 Rs5,7160

Paid-in Capital Rs30,0000 Rs30,0000 Rs30,0000

Retained Earnings (Rs10,0500) Rs2680 Rs17,9190
Earnings Rs10,3180 Rs17,6510 Rs48,0090
otal Capital Rs30,2680 Rs47,9190 Rs95,9290
otal Liabilities and Capital Rs33,3650 Rs51,8360 Rs101,6440

Net Worth Rs30,2680 Rs47,9190 Rs95,9290

 m


 


Ý




Mndustry
½ear 1 ½ear 2 ½ear 3
Profile
Sales Growth 0.00% 41.47% 49.48% 3.00%

Percent of otal Assets

Accounts Receivable 10.11% 9.21% 7.02% 8.70%
Mnventory 2.00% 1.97% 1.58% 9.50%
Other Current Assets 3.00% 1.93% 0.98% 26.40%
otal Current Assets 76.23% 88.69% 96.27% 44.60%
Long-term Assets 23.77% 11.31% 3.73% 55.40%
otal Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 9.28% 7.56% 5.62% 29.30%

Long-term Liabilities 0.00% 0.00% 0.00% 27.80%
otal Liabilities 9.28% 7.56% 5.62% 57.10%
Net Worth 90.72% 92.44% 94.38% 42.90%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.83% 95.50% 95.24% 0.00%

Selling, General & Administrative Expenses 86.59% 84.13% 74.45% 68.20%

Advertising Expenses 0.91% 0.74% 0.56% 1.50%

Profit Before Mnterest and axes 12.32% 15.15% 27.72% 2.70%

Main Ratios
Current 8.21 11.74 17.12 1.53
Quick 8.00 11.48 16.84 0.88
otal Debt to otal Assets 9.28% 7.56% 5.62% 57.10%
Pre-tax Return on Net Worth 44.68% 49.11% 67.10% 3.40%
Pre-tax Return on Assets 40.53% 45.40% 63.33% 8.00%

Additional Ratios ½ear 1 ½ear 2 ½ear 3

Net Profit Margin 9.40% 11.36% 20.68% n.a
Return on Equity 34.09% 36.83% 50.05% n.a

Activity Ratios
Accounts Receivable urnover 4.88 4.88 4.88 n.a
Collection Days 57 64 62 n.a
Mnventory urnover 5.45 8.30 8.41 n.a
Accounts Payable urnover 11.67 12.17 12.17 n.a
Payment Days 27 27 25 n.a
otal Asset urnover 3.29 3.00 2.28 n.a
Debt Ratios
Debt to Net Worth 0.10 0.08 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital Rs22,338 Rs42,059 Rs92,139 n.a
Mnterest Coverage 0.00 0.00 0.00 n.a

Additional Ratios
Assets to Sales 0.30 0.33 0.44 n.a
Current Debt/otal Assets 9% 8% 6% n.a
Acid est 6.91 10.26 15.59 n.a
Sales/Net Worth 3.63 3.24 2.42 n.a
Dividend Payout 0.00 0.00 0.00 n.a