Kleaving Auto Cleaning

and Detailing ©
2011 – 2012
Business Plan

“Whether it’s snow, mud, or dust we take pride

in leaving you with no worries and an
unbelievably clean automobile”
 Table of Contents

I. Executive Summary
i. Mission
ii. Objectives

II. Management and Investor Organization

III. Services Offered and General Business Model

IV. Facility and Business Operation’s Location

V. Market Analysis
i. Industry and Competitors
ii. Marketing Mix’s “4 P’s”

VI. Financials
i. Revenues, Expenses, and Net Income Graphs
ii. Projected Income Statements
iii. Detailed Income Statement Information for Year 1 of Operations

VII. Exit Strategies

i. Option I
ii. Option II

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Executive Summary

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 I. Executive Summary

Summary:

Kleaving Auto Cleaning and Detailing © will be serving and providing immaculate, spotless,
car show quality automobiles to neighbors, family members, and citizens of rural Perry County,
IN. The auto detailing - sole proprietorship will be owned and operated by car
enthusiast/perfectionist Mr. Blake Kleaving. Assisting at the facility location on the outskirts of
Tell City, serving as the Facility Manager will be the owner’s younger brother, Mr. Adam
Kleaving. The skills and experience of car detailing between both the owner and facility
manager bring a promising business venture to a region all but forgotten in the car detailing
industry. The strong “Kleaving” name recognition and market opportunities make this company
a can’t miss entrepreneurship opportunity.

The Business:

Whether through calling ahead or emailing an appointment time to have your wife’s
convertible, husband’s work truck, or son/daughter’s first vehicle cleaned to perfection, Kleaving
Auto Cleaning and Detailing © has you covered. Offering quick and satisfying individual
detailing services such as basic car washes, rim polishing, or interior detail make this business
the best possible value. For those wishing to have their vehicle in tip-top shape, the offering of
package deals creates a chance to have your car/truck/van/SUV looking as if it just rolled off the
assembly line. The owner and facility manager of Kleaving Auto Cleaning and Detailing © do
not settle for anything less than a near perfect car detailing and until they see the customer’s
smile the first time he or she sees their vehicle, the job is not complete . Working toward being
the best and most reliable auto detailing business in the county will take perseverance and a
friendly relationship with the customer, and here at Kleaving Auto Cleaning and Detailing ©, we
are dedicated to achieving this goal.

Financial Outlook:

Promising net income and financial rewards are projected for the business operations of
Kleaving Auto Cleaning and Detailing © through little startup costs and very few large
expenditures. The company’s location with a very minimal expense in the rental of a building at
the home of the owner allows for a physical location without large expenditures. Included in the
Financials section of this detailed business plan are further details behind projected numbers and
market assumptions, but on the following page is a very important excerpt of the information in
the form of a graph. The steady growth of the business’s net income should come as no surprise
as there are few competitors and the prospect of returning clientele along with new customers are
expected to increase each operation year. Financial benefits from this entrepreneurship venture
are extremely promising and with the qualities of its owner and facility manager, Kleaving Auto
Cleaning and Detailing © should exceed expectations.

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 3 Year Net Income Projections
$6,000.00
$5,000.00
$4,000.00
$3,000.00 Net Income
$2,000.00
$1,000.00
$0.00
Year 1
Year 2
Year 3

Objectives:

 Become the premium service provider of auto detailing in Perry County, IN.

 Branch out to operate a farm implement detailing/sub-division of the company by

the third year of operation.

 Maintain a healthy relationship between clientele and employee/s of the company.

 Recognize possible market niches and expand business operations while steadily
increasing the business’s overall profit margin.

Mission:

The mission of Kleaving Auto Cleaning and Detailing © is to provide the upmost service
to customers and dedicate all of it skills, knowledge, and experience in detailing every
automobile with the same high quality, efficiency, and value that its owner and facility manager
put into their own personal vehicles.

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 Management
and
Investor Organization

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 II. Management and Investor Organization

Blake Kleaving
Owner
CEO/President

Adam Kleaving
Facility Manager

Organization Type:

Kleaving Auto Cleaning and Detailing © will be a sole-proprietorship with Mr. Blake
Kleaving being the Owner and CEO/President of the company. The locality factors of the
business’s facility being located in the home county of Mr. Kleaving led the company’s
formation to be of the single-ownership type. Outside Investors will be needed, but is not
intended to form into a corporation. The benefit of having single ownership in an auto detailing
business is the perfectionist idealism of the owner transfers into the employee and thus there are
less steps of management to communicate upwards.

Management Team:

The Kleaving Auto Cleaning and Detailing © management team will consist of two key
members in the basic day to day operations. The CEO/President of the company and a Facility
Manager’s bios are listed below.

Blake Kleaving:

The CEO/President and sole-proprietorship owner of Kleaving Auto Cleaning and

Detailing © is a sophomore at the University of Evansville. Majoring in Business
Administration with concentrations in Marketing and Finance, he has taken courses related to the
operation of a company through classes of business law, accounting, software applications, and
business statistics.

Mr. Blake Kleaving has previous experience in car detailing activities, as he has been
hired by grandparents and relatives to detail the interior and exteriors of their vehicles over the
past several years.

Previous employment of Mr. Blake Kleaving was in the Office of Group

Accommodations at the Saint Meinrad Archabbey. Tasks as Hospitality Assistant included the

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upkeep and cleaning of company golf carts, as well as hospitality training in an office
environment. His skills in working with Excel spreadsheets and RezStream scheduling computer
programs have created a strong background in the scheduling and organization of business
activities. Leadership and the management skills of Blake have also been enhanced in his
involvement with several college organizations.

Owner, CEO/President Responsibilities and Tasks:

The Owner and CEO/President of Kleaving Auto Cleaning and Detailing ©, Mr. Blake
Kleaving, will be studying at the University of Evansville during the time in which the company
is in its first stages of servicing customers. Due to this reasoning, most of the day to day
operations regarding the auto detailing service will be in the hands of the Facility Manager.
Listed below in a bullet point summary are the responsibilities and tasks of the Owner and
CEO/President of the company:

i. Keeping financial records of facility operations, sales, expenses, all for

tax and personal filing.

ii. The ordering, purchasing, and delivering of supplies (ex. Car wash soap,
car wax, engine degreaser, water-hoses, vacuum sweepers, etc.) to the
main service facility.

iii. Compensating the facility manager for his labor with a biweekly salary.

iv. Researching more efficient business models in auto detailing industry, as

Kleaving Auto Cleaning and Detailing © will be constantly trying to
improve and become more profitable.

v. Contacting and soliciting future clientele. At the beginning, this clientele

market will be neighbors, family relation, and/or prior acquaintances.
Phone calls, emails, or in-person visitation will be the sources of this
customer searching.

vi. Developing marketing and advertisement schemes:

a. Primary research surveys
b. Company flyers
c. Business cards
d. Newspaper ads
e. T-Shirt designs and/or a company logo

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Adam Kleaving:

Mr. Adam Kleaving is currently a junior at Perry Central High School and lives in rural
Tell City, IN. His experience with business courses taken in high school, such as business law
and accounting, allow the facility finances to be kept in check with ownership of the company
being based at the University of Evansville campus.

The background in Mr. Kleaving’s experience with auto detailing is very extensive and
with several tutorials by professionals, his skills are top of the line. Through the formation of his
2005 Ford Mustang into a well thought out show-car, he has traveled to several body shops, auto
detailing facilities, and custom automotive businesses to fit his needs. In this process Adam has
learned firsthand the detail and customer satisfaction needed to operate a business efficiently and
smoothly. The care taken on his own vehicle has given him the skills to serve customers of
Kleaving Auto Cleaning and Detailing © with the best service and to succeed everyone’s
expectations.

Current part-time seasonal employment of Mr. Kleaving is also at the Saint Meinrad
Archabbey as Hospitality Assistant in the Office of Group Accommodations. Tasks of the
position are very similar if not exactly the same as those listed under Mr. Blake Kleaving’s
previous employment.

Facility Manager Responsibilities and Tasks:

The Facility Manager, Mr. Adam Kleaving, will be working at the facility headquarters
on the outskirts of Tell City, IN. With his auto detailing skill set and educational background
with accounting and business law, Mr. Kleaving will be in charge of the day to day operations at
the facility. A list of these responsibilities and tasks are listed below:

i. Providing the auto detailing service to customers at the service facility

(such as waxing, washing, rinsing, vacuuming, etc.)

ii. Billing and collecting of the revenue from the company’s services on the
day of automobile pick-up.

iii. When the customer arrives to pick up their vehicle or rather it is delivered
back to their residence by Mr. Adam Kleaving, he will use a money box
and collect their payment on the spot in either cash or personal check.

iv. Along with the Owner and CEO/President, the Facility manager will be
contacting and soliciting future clientele through family gatherings and/or
area functions (ex. Church picnics, festivals, etc.)

v. Preparing finances (ex. Revenues and expenses) for the pick-up by the
Owner and CEO/President. The recording of these finances will also be
taken to ensure reliability of the company’s records.

vi. Cleaning and upkeep of the facility and its surrounding area.

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Outside Investors:

Randall Kleaving:

Mr. Randall Kleaving, Mr. Blake Kleaving’s father, is willing to invest into the startup of
Kleaving Auto Cleaning and Detailing ©. He is also willing to rent the operating facility for
$100 a month, which includes water, electricity, and heat. The other part of the investment of
Mr. Kleaving will be equipment already present in the facility, such as water-hoses, supplies
storage units, pressure washer, etc.

Richard Kleaving:

Mr. Richard Kleaving, Mr. Blake Kleaving’s uncle, has invested into Kleaving Auto
Cleaning and Detailing (c) by purchasing ArmorAll Original Protectant, Stoner Invisible Glass
Wipes, and Scott Shop Towels for the company’s beginning inventory of supplies.

Future Investors:

As Kleaving Auto Cleaning and Detailing © grows and gains a larger number of
clientele, the goal is to acquire a number of investors who offer equipment, supplies, and/or
customer leads.

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 Services Offered
and
General Business Model

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 III. Services Offered and General Business Model
Summary:
The services offered portion of this section are listed in the detailed table and lists below.
Kleaving Auto Cleaning and Detailing © will offer a variety of services to its customers, with
emphasis on package deals for a majority of its profits. Gaining a competitive edge on the vast
number of services provided and even with the addition of specific requests by the customer, will
be one of this business’s key emphasis.

SERVICE OFFERED CAR TRUCK Small SUV (Jeep) Large SUV Minivan
Standard Car Wash $18.00 $20.00 $18.00 $20.00 $20.00
Under-Carriage/Engine Wash + $10.00 - - - -
Complete Wax $50.00 $60.00 $50.00 $60.00 $60.00
Rims Polished +$35.00 - - - -
Interior Detail $35.00 $30.00 $30.00 $40.00 $40.00
Interior Shampooed +$25.00 - - - -
(Any of the services listed above can be purchased individually)

Package Deals

Package A
Includes:
 Standard Car Wash (exterior cleaning with windows included)
 Under-Carriage Wash (including engine degreaser)
 Complete Wax of vehicle
 Rims Polished (whether chrome or aluminum)
 Interior Vacuumed and Dash Cleaned
 Interior Shampooed
Prices:
Car - $155.00 (valued at $173.00)
Truck - $160.00 (valued at $180.00)
Small SUV - $150.00 (valued at $168.00) - Deduct $20.00 for removal
Large SUV- $170.00 (valued at $190.00) of “Rims Polished” from
Minivan - $170.00 (valued at $190.00) the package.

Package B
Includes:
 Standard Car Wash (exterior cleaning with windows included)
 Under-Carriage Wash (including engine degreaser)
 Complete Wax of vehicle
Prices:
Any Vehicle – $75.00

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Package C
Includes:
 Interior Vacuumed and Dash Cleaned
 Interior Shampooed
Prices:
Any Vehicle - $55.00

Business Operations:

Below is a sample business model in which Kleaving Auto Cleaning and Detailing © will
follow and listed below each step is a detailed description.

1) Schedule appointment and desired services.

a. When a customer schedules an appointment through calling our company’s
phone number, they will state that they wish to have their vehicle detailed then
the time and date will be recorded on an online, corresponding calendar. The
services will also be recorded on this calendar, so that each member of the
company can view the upcoming arrangement.

2) Customer vehicle transported to facility on the drop off date.

a. On the appointment date, the customer will either deliver the vehicle to the
company location or schedule a time in which the facility manager would pick
up the vehicle.

3) Employee performs services in one day (there should be no overnight stays of

vehicles).
a. The services will be directly completed on the facility’s site and little to no
outsourcing will be needed in the current business model. Below are the
Services Provided:

1) Standard Car Wash (exterior cleaning with windows

included)
2) Under-Carriage Wash (including engine degreaser)
3) Complete Wax of vehicle
4) Rims Polished (whether chrome or aluminum)
5) Interior Vacuumed and Dash Cleaned
6) Interior Shampooed

b. The services listed above will be conducted by the facility manager, Mr.
Adam Kleaving. It is important to remember that all of these services or
particular ones can be accomplished during one visit. Mr. Adam Kleaving
will use the company’s equipment and facility along with his skills to satisfy
the customer’s needs. The services are self-explanatory and will all be

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 completed at the company’s location of 3796 Ashland Rd. Tell City, IN
47586.

4) Customer returns to pick up vehicle (customer pays at the time of pickup).

a. At this stage of the service process the customer will pay in cash or check, the
full amount of the cost for the assortment of services they chose. During this
particular engagement, our point of sale machine will be a keyed cash box,
which will be kept at the facility’s location until the occurrence of step 6
below.

5) Receipt is given to customer and copy is stored away with payment.

6) Weekly income and receipts are picked up or delivered to owner at the

University of Evansville campus. (Income will be used to purchase new
equipment, supplies, and record into financials).

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 Facility
and
Business Operation’s
Location

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 IV. Facility and Business Operation’s Location

Facility Address:
Kleaving Auto Cleaning and Detailing ©
3796 Ashland Rd.
Tell City, IN 47586
Phone: (812) 608-1504
Business Location:

Kleaving Auto Cleaning and Detailing © has the strong possibility of expanding and
branching out into several market areas, but as for now, the main service facility of the company
is going to be located at 3796 Ashland Rd. Tell City, IN 47586. The address of the business is
located approximately fifteen miles from Tell City, IN and forty miles from Jasper, IN. On the
property of the business is a large, four car building, with running water, heat, and electricity.
This building has been offered by Mr. Randall Kleaving to be rented for the monthly payment of
one-hundred dollars with utilities included in that price.

Purpose of Location:

The process of selecting the prime location for serving as the headquarters of Kleaving
Auto Cleaning and Detailing © was given much thought with regards to clientele projections and
proximity to possible competitors. In the end, the opportunity to take advantage of the facility
offer and close relationships to neighbors and relation in the area led to this very important
decision. This location will ultimately boost sales in the business through high quality equipment
and a top of the line facility. Although the facility is a great asset it should be known that the
predicted clientele of owner’s relation and other previous contacts is at the pinnacle of why a
location on the outskirts of Tell City was chosen. Being that the company will be placed at the
owner’s home, the mail address is also a benefit when dealing with billing and the hassle of a
separate mailing system. The company’s incoming and outgoing mail will be listed under the
owner’s name and could be sent directly from the headquarters of Kleaving Auto Cleaning and
Detailing ©. Listed below are several other factors, pros and cons, which played a key role in
the decision by the owner to locate in rural Perry County.

Pros:
a. Distance from possible competitors (approximately fifteen miles).
b. Surveys of potential customers relate that there is a strong target market.
c. Employee, Mr. Adam Kleaving, lives on the headquarters premises.
d. Low start up cost/rent, with several items of equipment already being in
place and little worry of fluctuating rent prices.
e. Evenly distanced between sample clientele for pre-establishment trials.

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 Cons:
a. Distance of main facility to University of Evansville Campus
(approximately one hour and twenty minutes.)
b. Facility will not be on a state highway or busy city street. Marketing will
have to be primarily focused on newspaper ads, flyers, or simply word-of-
mouth tactics.
c. The eighth of a mile gravel road leading up to the facility building will or
may cause issues with the dust factor after a vehicle is detailed.

Additional Comments Regarding The Location:

The location of Kleaving Auto Cleaning and Detailing © is an opportunity to promote

expansion and higher profits ultimately in the end. The lack of competition within a twenty
minute radius is a major advantage of this company and will facilitate its development. In the
aspect of being that the location is the home of the owner and facility manager, the factors
behind running the company in a safe and efficient manner will be at the top of its goals.
Security and cleanliness are also key factors that are provided with this particular business
location.

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Market Analysis

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 V. Market Analysis:
Car Wash and Auto Detailing Industry
Industry and Competitors:

Industry:

Kleaving Auto Cleaning and Detailing © will be a privately owned sole-proprietorship

that will be taking part in a very promising industry that has the potential to produce a substantial
profit margin and succeed the goal of customer satisfaction. The small business sector of the
Car Wash and Auto Detailing Industry is where Kleaving Auto Cleaning and Detailing © will be
taking part in its business endeavors. The industry is primarily privately owned businesses in
virtually every community in some way, shape, or form. It is a very competitive market, as
repeat customers and a strong clientele base are two of the most important factors in being a
successful auto detailing company. Within the Car Wash and Auto Detailing Industry there are
two diverse segmentations. One of these segmentations is the automatic/personal car washing
facilities. Such that the “automatic” part being that the customer sets the car into “park” and
allows a machine to clean the vehicle for them, and the “personal” application allowing for the
payment to use of a high-pressure washer and soap. The sector that Kleaving Auto Cleaning
and Detailing © will be entering is the more precise area of the industry, that of the auto
detailing section.
With automobile prices rising and a struggling economy, individuals are looking to
preserve their 2003 Dodge Caravans or 1999 Ford F-250’s instead of purchasing a new $45,000
vehicle. Not only do these possible customers need the Auto Repair Industry, but auto detailing
is equally important in the upkeep of their vehicles. This is where a business such as Kleaving
Auto Cleaning and Detailing © will make an impact. The industry requires precision,
knowledge, and personal skills for a business to reach its full potential. The exterior and interior
cleanliness are objectives of the industry, but ultimately it’s a customer knowing they look good
on the roadways and their satisfaction that really matters.

Competitors:

With Kleaving Auto Cleaning and Detailing © being located in rural Perry County, a
new target market is being established, that for years has been left out of the eyes of many
competitors in the region. Companies relating to auto detailing have been very few and far
between in the northern part of the county, but this is not an assumption of little competition.
Tell City to the south is a city of approximately 7,500 citizens. With this considerable population
size, it allows several auto detailing shops to flourish within the city limits. These particular
businesses will be the main competitors of Kleaving Auto Cleaning and Detailing ©. Looking
towards the future, it is believed that little influence by similar businesses located in Jasper, IN

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will play effect on competition during the first few years of Kleaving Auto Cleaning and
Detailing © operations. Listed below are the two major competitors located in Tell City, IN:

1. Larry’s Auto Detailing – 307 12th Street Tell City, IN 47586

Bio:
Larry’s Auto Detailing is a shop that specializes in car washing and
polishing. It is located on the same premises as an auto sales business
and it is speculated that most of its businesses derives from the
detailing of vehicles being prepped for the objective of being sold.
According to manta.com, a small business website, Larry’s revenue
averages at $61,000/year and employs two individuals.

Distance from Kleaving Auto Cleaning and Detailing ©:

14.34 Miles or 23 minutes (according to mapquest.com)

2. Gayer’s Custom Collision Center – 1133 Main Street Tell City, IN 47586

Bio:
Gayer’s Custom Collision Center is a repair shop that operates under
the owner of Clint Gayer. The business was previously known as
Gerlach and Gayer, but a falling out of the other partner leaves the
business in the hands of its current owner and operator. The business
is primarily a business for wrecked vehicles and restoration projects.
Just recently did the company take on the venture of auto detailing
along with its previous automotive tasks. Gayer’s is located on Main
Street of Tell City, but location is not a main benefit to the business as
it is located on south side of town next to the river. City expansion is
currently taking place on the north end of town.

Distance from Kleaving Auto Cleaning and Detailing ©:

13.91 miles or 22 minutes (according to mapquest.com)
Competitive Pricing:

In such a competitive market, where less than fifteen miles separate the two closest
competitors, taking into consideration the pricing of auto detailing businesses from across a
diverse spectrum is very important. On the following page are examples of three auto detailing
businesses’ pricing charts for their customers. These companies, Carl B’ Klean, United Detail,
and DR Detail are located around the United States, but each give Kleaving Auto Cleaning and
Detailing © a glance at what consumers are willing to pay to have their automobile cleaned.
Through researching the industry, two identical pricing themes arrive. When looking at the
pricing tables remember these two points:
1. Cars, Trucks, and Vans are all priced differently, with respect to the allotted time
that it takes to clean as the size becomes larger.

2. “Package Deals” are essential in the marketing of auto detailing services.

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 Auto Appearance Service Packages
DETAIL SERVICES
PRICE GUIDE

Note: Professional detailing is time and labor intensive. No vehicle is in the same condition at any one
point in time. Only the detail manager may give a written price quote after an inspection with the
customer. Vehicles that are unusually dirty or have special cleaning needs may cost more. These
prices are to be used as a guide only.
Size of Vehicle Complete Detail Interior Detail Exterior Detail
Small $175-$350 $110-$200 $100-$200
Medium $200-$400 $160-$225 $125-$225
Large $225-$500 $180-$250 $150-$250

Provided by: http://carlbklean.com/detail_prn.asp

Auto Detailing
Small SUV/
Cars Large SUV,Van & Super Duty
Pick-up Trucks
Wash&Wax $80.00 Wash&Wax $90.00 Wash&Wax $100.00
Interior Interior
$150.00 $185.00 Interior Clean $200.00
Clean Clean
Full Auto Full Auto
$200.00 $240.00 Full Auto Clean $250.00
Clean Clean
Provided by: http://uniteddetail.com/html/pricing.html

Service Cars Trucks SUV’s Vans

Exterior Wash $7.95 $8.95 $9.95 $13.95
Full Service Wash $17.95 $18.95 $19.95 $25.95
Full Service “Plus” $23.95 $25.95 $27.95 $32.95
Exterior Wax $49.95 $59.95 $69.95 $79.95
Full Service Wax $59.95 $69.5 $79.95 $89.95
Machine Buff & Wax $85.95 $95.95 $110.95 $125.95
Interior/Shampooing $69.95 $69.95 $79.95 $99.95
Provided by: http://www.drdetailshop.com/DETAILING.html

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Competitive Pricing Continued:

After reviewing the tables above, it is clear that the first two are most likely in a high-
income or luxury vehicle market. The third table is a better representation of the estimated
prices that Kleaving Auto Cleaning and Detailing © may incorporate. To stay competitive and
efficiently run its marketing strategy, charging $250.00 for a full auto clean may be a little over
priced for potential clientele of Kleaving Auto Cleaning and Detailing ©. This particular
research has made it clear and given a broad prospective of the industry and effect that good
marketing can have on a business.

Marketing Mix’s “4 P’s”:

The Marketing of Kleaving Auto Cleaning & Detailing ©:

Given the environment that Kleaving Auto Cleaning and Detailing © will be operating,
marketing and creating a strong name for itself will be vital for the longevity of the business.
When considering the marketing mix of elements like “product, price, promotion, and
distribution (place)”, the business’s goals are very unique to the industry type and location.
Listed below are in-depth analyses of each of the primary components of the “4 P’s” idealism.

1. Product:
In the case of Kleaving Auto Cleaning and Detailing ©, the product is the
offering of a service to its customers. In the form of automobile cleansing,
waxing, vacuuming, degreasing, etc. the services offered are of wide variety and
look to attract a diverse customer base. Future service offerings may even include
the detailing of farm implements to small family-owned farms. This idea is a goal
of Kleaving Auto Cleaning and Detailing ©, but for now its main service is to that
of automobiles. Whether it is a car, truck, SUV, or minivan, any of them will be
detailed at this business’s facility with customer satisfaction as the top priority.
The name Kleaving Auto Cleaning and Detailing © was selected to
represent the services being offered to the clientele with little confusion and/or
questioning. Auto cleaning and detailing may be seem very cliché, but through the
addition of Kleaving in the front of the business’s name adds a personal level.
Customers in the area of operation will recognize the last name “Kleaving” and
the rhythm in which the name roles off the tongue will create a catchy business
title. With research and the addition of a © symbol after the business name, the
legal side of the business is in check and if a logo were to ever be produced, the
owner would then go through the process of applying for a trademark. On and
ending note, one last remark regarding the name of the service-based business, the
use of a local name could possibly be a huge impact on the profitability of this
company. The name is unique to Southern Indiana, with all “Kleaving” based
families deriving from Perry and surrounding counties. The name is for sure a
sturdy piece in Kleaving Auto Cleaning and Detailing’s © marketing strategy.

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2. Price:
Competiveness is going to be an asset to Kleaving Auto Cleaning and Detailing
©. The pricing of its services will be affordable for its target customers, but also
allowing room for profit to be made. To market the services of this business
even more productively, seasonal discounts will be used in the spring, summer,
and fall for limited amounts of time. When potential customers are enticed into
hiring Kleaving Auto Cleaning and Detailing © through a 15% discount during
certain weeks of the year, they are more likely to be repeat customers of the
offered services. It is also equally important to know that the prices listed earlier
are not break even figures or on the other hand that of premium costs to
customers. The prices leave the business with room to expand and the customers
satisfied.

3. Promotion
The promotion aspect of this business is almost as equally important as the
quality of work and pricing of the service. The marketing strategy behind
Kleaving Auto Cleaning and Auto Detailing is to target its customers through the
use of flyers in body shops, church bulletins, picnics/shooting matches, local
restaurants, etc. The personal selling of this service will also be used, as its
facility manager will advertise at local schools and its investors will be able to
spread word of this business in their respected workplaces. With Perry County
being a close-nit society, and the neighborhood in which the company is located
being primarily the owner’s relation, the promotion of the services should greatly
expand. Close associations between the owner of Kleaving Auto Cleaning and
Detailing © and a well known editor, Mr. Vince Leucke, of the local newspaper,
The Perry County News, should allow for a prime advertising spot in the weekly
paper.
Other forms of promotion and marketing for the business will include
business cards that can be given on the spot to potential clientele and suppliers of
detailing equipment. The addition of T-shirts, hats, and sweatshirts could be a
possibility with the production of a company logo. These are all channels of
marketing to create sales, all of which are going to be important in the progress of
the company. One advertising method that was mentioned earlier was the
marketing of auto detailing services in the county school systems. Special student
discounts could be offered to attract business and the amount of vehicles owned
by close friends and past classmates by both the Owner and facility manager open
new doors to prospective customers. Marketing in such a rural area may be
difficult at first, but name recognition is important and the word “Kleaving” in
the company’s name will be the prevalent marketing strategy to this business’s
success.

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 4. Distribution (Place):
The distribution of the services offered by Kleaving Auto Cleaning and Detailing
© will be located at the facility’s headquarters of 3796 Ashland Rd. Tell City, IN
47586. Having a fixed location on the outskirts of Tell City will make the
marketing aspect of location easy for repeat customers to develop. Having the
same facility with the same employees will create a friendly and tight bond
between consumer and the service provider. The customer in this business will
either be delivering or having their automobile picked up for the auto detailing
service. Little time will be wasted during the period in which the business has the
car on site. Expected time of services depends on the package selected or
individual services. A policy that Kleaving Auto Cleaning and Detailing © is
hoping to incorporate is that no vehicle stays over night at the main facility, which
is key for liability issues.

Competitive Edge Over Competitors:

In an industry based on customer satisfaction, Kleaving Auto Cleaning and Detailing ©

will be no different. To set itself apart from the competitors in nearby Tell City, Kleaving Auto
Cleaning and Detailing © will create a personal touch on the services we provide for the
customer. Care packages on the driver seat containing seasonal candy when ready for pick-up or
the overall care of the vehicle during the detailing process will make this business unique from
all the others. Pricing will for sure be a competitive edge, with a wide range of discounts
through packages and seasonal offerings. The underlying goal of Kleaving Auto Cleaning and
Detailing © is to treat the customer’s vehicle like it’s the service provider’s own. Location is
going to be an edge on competitors in Tell City as well, as this business will reach those
forgotten clientele in the northern part of the county. And overall circumstances, having one
young determined entrepreneur with prior detailing knowledge working to reach a goal should be
an edge in itself over the competitors.

Customer Profile and New Customer Ventures:

When determining the typical customer of Kleaving Auto Cleaning and Detailing, one
must look at any individual living in central to northern Perry County wishing to have his or her
vehicle looking its best. There is no set gender or race in which this company will target,
although age must be established in the sense that a customer must be of legal driving age with
regards to the transportation of the vehicle to the facility. The first set of customers will most
likely be described as family relation or friends of the Owner and CEO/President. These
individuals will be owners of family vehicles or trucks used for farm/work use. Location of
these customers within the first few months of operation will be in an approximate 15 mile range
of the company’s main facility. This limits customers living much further than New Boston,
Bristow, Gatchel, or Troy communities. Attracting new customers will take time, but with the
addition of possibly the detailing of farm implements, a much broader range of repeat customers
will be reached. As described in the “promotion” section of the marketing mix above,
advertising and promotions will influence new clientele to take advantage of the offered services.
The main addition of new customers will be through the marketing at local events, but if
business were to be struggling at first it would be reasonable to implement the farm equipment
aspect of this company quicker than anticipated to boost revenue.

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Financials

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 VI. Financials

Summary:
Included in this section are charts and tables that support the vast growth opportunities
that are possible for Kleaving Auto Cleaning and Detailing ©. The following bar graph and pie
charts are visual aids that will help explain the projected income statements (included on the next
page in the Financials section) for the first three years of operation.
Please note: All of the numbers in this section are projections with the use of market research.

3yr. Income Projections

$14,000.00
$12,000.00
$10,000.00
$8,000.00 Revenues

$6,000.00 Expenses

$4,000.00 Net Income

$2,000.00
$0.00
Year 1
Year 2
Year 3

Year 1 Revenue Year 2 Revenue

Packages Packages
A,B,& C $1,800 A,B,& C
$1,575
$1,247 $3,789 $1,682 $4,753
Other Other
Services Services

Year 3 Revenue

Packages
A,B,& C
$3,880
$7,425 $1,334
Other
Services

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Detailed 1st Year Income Statement Description:

In the first year of operation by Kleaving Auto Cleaning and Detailing © it will consist of
seasonal-fluctuating supplies, salary, and marketing expenses. Throughout the first years of
business, the “rent and utilities” expense will remain constant as this location will be the main
source of company functions. Listed below is a month by month analysis for the first year’s
income statement with emphasis on the cyclic tendencies of the market and employees ability to
perform the services provided on a yearly time table.

Brief Background of Data:

 Packages A, B, C Revenue:
o The first row on the income statement under “Detailing Revenues” is the
“Packages A, B, C Revenue”. These figures are determined on the number
of cars that would be serviced with a package. After calculating the
average package price to be $97.00, this row is determined by: [the total
number of cars] x [$97.00].
 Other Services Revenue:
o Following the package revenue is the “Other Services Revenue”. The
calculated average per service price is equal to $29.00/service. This row is
determined by: [total number of services] x [$29.00].
 Farm Implement Revenue:
o The calculated average cost for a farm implement service is equal to
$225.00/service. This row is determined by: [total number of services] x
[$225.00].
 Rent & Utilities Expense:
o The rent and utilities are at a fixed cost of $100/month.
 Supplies Expense:
o Supplies expenses vary with whole detailing kits costing $564.00 and
refills ranging from $0.00 to $200.00/month.
 Salaries Expense:
o Kleaving Auto Cleaning and Detailing © employee will make an hourly
wage of $15.00/hour. This row is determined by:
[number of hours worked] x [$15.00].
 Marketing Expense:
o Expenditures for marketing purposes are based on the purchase of
newspaper ads, t-shirts, hats, and/or signs for advertising. Varies from
month to month.

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  Travel:
o Travel is only needed for the farm implement aspect of the business.
Costs will vary depending on number of farm implement services and
price of fuel.

January 2012:
The first month of operation will be the highest in terms of revenues and expenses until
the summer months. It is estimated that we will be able to offer 5 packages and at $97.00/service
average, revenue is projected to be $485.00 from our package deals. Because this business
focuses on the cleaning and detailing of dirty vehicles, January is a prime month because of
snow, ice, and calcium on the roads. It should be feasible to attain at least the 5 predicted
package services and the 2 “other services” revenue for this month. Having established this, it
must be made apparent that the opening month will also consist of the purchase of a detailing
supplies kit (priced at $564.00). With approximately 10 hours of labor by the facility manager
and an inquiry into the county newspaper of $25.00, the expenses will ultimately create a net
income loss for the month. Travel will not be necessary as all services will be at the facility
location, thus leaving the net income at a ($296.00) for January 2012.

February 2012:
February, much like January, will be a prime month for the package deals as snow, ice,
and calcium will most likely be present. The offering of services to family members and
neighbors will allow for an additional projected 6 service package deals to be completed with 2
“other services” also being offered. This number of vehicles allows for the facility manager to
complete these projections in possibly two or maybe three weekends. The revenue from this
month will total $640.00, and expenses will be down as well as only a $50.00 refill on supplies
may be needed. Marketing increases $25.00 to place an ad in not only the Perry County News,
but also the Spencer County newspaper. A projected 12 hours of labor will need to be accounted
for, leaving a $260.00 profit for the month.

March & April 2012:

As both the Owner/CEO and President and Facility Manager will be involved in
schooling, the ability to increase sales in the March and April months of the first year will be
difficult. Proper marketing and ability to gain new clientele will take place in the months to
come, but as for March and April it is predicted that 3 package services will be performed each
month. Along with 3 “other services”, which may include a car wash or rim polishing will bring
revenues of $381.00/month for each month. Expenses stay very similar, as only 11 hours of
labor will be performed each month and only a $25.00 refill expenditure will be deducted for
March to account for both months. Profits for each month are projected to be: March 2012 -
$41.00 and April - $81.00.

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May 2012:
Both the Owner and Facility Manager will be on summer break for the month of May,
thus increasing the profitability of the business. With planting season over, the addition of farm
implement services will be added this month generating $450.00 (2 services). A very reasonable
projection for the month’s package revenue is $582.00 (6 packages) and possibly 3 other services
provided. Even with the accumulation of farm implements, the major expenditure on a detailing
kit ($564.00) will need to be made again and marketing/travel expenses will rise
correspondently. The required long amount of hours for farm equipment and 6 package deals
also rises hours of employee labor to 13 hours. With all of these factors taken into account,
projected profits for May 2012 are the highest to this point coming in at $160.00.

June 2012:
An internship at Hoosier Energy REMC beginning in June of 2012 by the Owner/CEO
and President will cause a sudden decrease in projected service offerings. The Facility Manager
will be in control of business operations during the two month internship. A projected 4 package
deals, 4 services, and 1 farm implement service are at the peak of possible revenues for this
month. Revenue of $729.00 and an increased salary payment of $240.00 (16 hours) will still
reap a high net income, but travel expenses, supplies refilling, and travel will bring this number
down slightly. June 2012 profits are anticipated to be in the $294.00 range.

July 2012:
July is going to be a month unlike any other during the first year of operation for
Kleaving Auto Cleaning and Detailing ©. The necessity for package deals will decline because
of lack of rain and mud that will track into the vehicle’s interior. This month will most likely
deal with primary revenue coming from that of “other services”. With dust continuing to dirty
the outside of vehicles during this month, customers are more likely to just have a particular
service purchased rather than a full on package deal. For this reasoning, it is projected that
$506.00 will be the revenue for this month with 2 package deals, 10 other services, and 1
implement service. Travel and Marketing will be to a minimum because of the lack of farm
implements, although labor hours for the employee will rise to 19 hours or $285.00 in salaries
expense. Profits for July 2012 are likely to reach the $279.00 mark.

August 2012:
During the month of August, both the Owner and Facility Manager will be resuming
schooling obligations and the providing of services will decline in result. With weekends very
busy during this month, it is likely that only 2 package deals, 3 other services, and 1 farm
implement will be able to be accomplished. These estimates are on the upper end of reality as
well. Hours of labor by the employee will decline significant and neither marketing nor travel
expenditures will be recorded. Profits for this month, even with such a sharp decline, are
projected to be at $206.00.

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September 2012 & October 2012:
When Comparing September and October numbers to the latter half of August, it shows
that the progress of the business is very minimal. Due to schooling, a prediction of only 1
package deal and 3 services will be provided each month. These two months are also prime
harvest season, so farm implements are being used and thus restricted from our clientele base.
After several months of making very nominal supplies purchases, September would be a good
month to restock for the winter months. As shown on the income statement, there are losses in
net income for both months: September – ($171.00) and October – ($71.00). These two losses
are not significant in the grand scheme of Year-to-Date Net Income as it will be at the $783.00
mark after October.

November 2012:
November will offer approximately $314.00 in profits with revenues resulting from 2
implement services now that harvest will have concluded. 3 other services and 1 package deal
will result in $634.00 of revenue and approximately 10 hours of labor and minimal expenditures
in marketing and travel result in the large rise in net income.

December 2012:
The final month of the first year of operation will be much like the first two or three, with
snow, ice, and calcium being main factors of vehicle servicing. With school ending for winter
break, both the Owner and Facility Manager will be able to perform 5 package deals and 4 other
services for revenue of $601.00. Expenditures will include a refill of supplies ($150.00) and 6
hours of labor expense. Profits for the month of December fall off a little with having to
purchase supplies, but are still positive at $261.00. Year-to-Date Net Income after the 12th
month of operation is projected to result at approximately $1,358.00.

Break-Even Analysis:
With the most significant expenditures occurring every three or so months with the
detailing kits costing $564.00, the first two months have “Net Income Year-to-Date” as a loss.
During the third month of operation (March 2012) the company breaks even with its cost and its
YTD net income becomes positive. It is projected that even with the reoccurring $564.00 cost,
the business is not likely to drop below $0.00 in is YTD net income after the third month of
operation.

2nd & 3rd Year Income Statements:

Continued growth along with the seasonal fluctuations of clientele opportunities stays
consistent. In year 3 or year ended Dec. 31, 2014; one of the main objectives in projecting
revenues and expenses was the movement of the company from auto detailing to primarily farm
implement detailing. Larger profits and less expenditures can be viewed as the net incomes of
each month continue to rise.

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Balance Sheet & Cash Flow Statements:
The balance sheet was constructed with cash and supplies inventory at the end of each
year being the only assets to the company. Through renting its facility and equipment along with
being a service provider, the assets and liabilities are very minimal. As viewed in the three years
on the balance sheets, the cash and owners’ equity is continually increasing
The cash flow statement is very self-explanatory as very little expenditures will be paid
on credit. Most will be paid in cash, thus explaining why the net revenue less the expenses on all
the sheets shows an increase in cash every year of operation. The profit margin for this business
is very promising and through these statements, it is clear that Kleaving Auto Cleaning and
Detailing © is projected to have a strong future.

(Balance Sheets and Cash Flow Statements for the next three years can be found on the following page)

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Exit Strategies

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VII. Exit Strategies

Summary:
With regards to the business type and business model of Kleaving Auto Cleaning and
Detailing ©, the strategy behind the exit plan is fairly effortless and leaves very little room for
mistakes or liabilities. There are two possible methods of exiting the business by the Owner and
CEO/President, Mr. Blake Kleaving. Listed below are the two most probable exit strategies, one
giving continued life to the company and the other a discontinuation of the business.

Option I:
The first option for Mr. Blake Kleaving to consider when deciding to exit the business is
that of passing on ownership and management to the Facility Manager, Mr. Adam Kleaving.
Expressed interest in the ownership of Kleaving Auto Cleaning and Detailing © by Mr. Adam
Kleaving creates a great opportunity for the business to continue flourishing in the same location.
Ownership transfer of the company would have to be recorded on the tax information and any
licensing or permits that the company has attained of its operation life. Being that the location is
a rented facility and all equipment and utilities are included, the contract between the landlord
and the business would need to be revised and notice to current clientele would also need to be
established. When the succeeding ownership of a business is family, the transition is a little less
stressful and prior negotiations not as influential in the end. Having the possible future owner of
Kleaving Auto Cleaning and Detailing © being an employee prior to the transition, the business
operations and model are included in his knowledge and any questions or concerns after the
succession would be happily answered by the previous owner, Mr. Blake Kleaving. The overall
well-being of the company is why “Option I” would be the most desired exit strategy for the
current owner, but of course other factors such as college for Mr. Adam Kleaving create a need
for a second option.

Option II:
The second, and most likely to occur, option is that of a complete discontinuation of the
company. Internships and study abroad opportunities leave the Owner and CEO/President of the
company searching for a viable and efficient exit strategy. Post-high school education by the
Facility Manager leaves all employees and connections to the company in a situation that would
not allow them to continue business operations. Having Kleaving Auto Cleaning and Detailing ©
be a service oriented business, little assets or inventory would need to be valued and sold. The
location facility’s landlord’s contract would be discussed and all equipment and utilities would
be paid off for the company’s allotted use. Having little to any inventory, all that would be in
excess would be kept at the facility (owner’s home) for personal use. With little investment by
outside investors, their return would be very minimal. The company’s tax information would
have to be revised to show a discontinuation of the company. Any licensing or permits in the
company’s behalf would have to be cancelled and clientele would be notified of the closing.
Newspaper ads would be pulled from the advertising sections and all accounts payable would be
distributed before the closing of financials for the company.

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Closing Statements:
The second option, as stated above, is the most expected outcome to an exit plan by
Kleaving Auto Cleaning and Detailing ©. Knowing that the company would be in great hands is
the desired strategy in Option I, but progress or possible hardships could make the decision
slightly simpler. After considering pros and cons of either option, neither one seems to cause
any apparent issues or possible liabilities that would affect personal future financials to the
current owner.

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