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Business plan

ASSOSA UNIVERSITY

COLLAGE OF ENIGINEERING DEPARTMENT OF

ELECTRICAL AND COMPUTER ENIGINEERING

COURSE TITLE: - INTREPRENEURSHIP AND SMALL BUSINESS

MANAGEMENT

PROJECT TITLE:-BUSINESS PLANNING

NAME ID NUMBER

1 YITAFER KASAWMAR ETR/534/07

2 GADISA BAYISA ETR/235/07

3 MISIGANA MOGES ETR/393/07

4 SHIBIRU ASHENAFI ETR/459/07

ETHIOPIA, ASSOSA

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Contents

1. Executive Summary .................................................................................................................... 5

2. Sales and Marketing .................................................................................................................... 6
2.1. Product description ............................................................................................................... 6
2.2. Competitor............................................................................................................................ 6
2.3. Location ................................................................................................................................ 7
2.4. Market Area.......................................................................................................................... 7
2.5. Main customers .................................................................................................................... 7
2.6. Market share ......................................................................................................................... 7
2.7. Selling price.......................................................................................................................... 8
2.8. Sales forecast ........................................................................................................................ 8
2.9. Promotional measures .......................................................................................................... 8
2.10. Marketing strategy.............................................................................................................. 8
2.11. Marketing budget ............................................................................................................... 9
3. Production ................................................................................................................................... 9
3.1. Production process ............................................................................................................... 9
3.2. Fixed capital ....................................................................................................................... 10
3.3. Life of fixed capital ............................................................................................................ 12
3.4. Maintenance and Repairs ................................................................................................... 12
3.5. Sources of equipment ......................................................................................................... 13
3.6. Planned Capacity ................................................................................................................ 13
3.7. Future capacity ................................................................................................................... 13
3.8. Terms and condition of purchase equipment ..................................................................... 13
3.9. Company location and layout ............................................................................................ 14
3.10. Raw material needed ........................................................................................................ 14
3.11. Cost of Raw materials ...................................................................................................... 14
3.12. Raw material availability ................................................................................................. 15
3.13. Labor ................................................................................................................................ 15
3.14. Cost of labor ..................................................................................................................... 15
3.15. Labor availability ............................................................................................................. 15
3.16. Labor productivity ............................................................................................................ 15

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3.17. Factory overhead expense ................................................................................................ 16

4. Organization and management ................................................................................................. 16
4.1. Form of business ................................................................................................................ 16
4.2. Organization structure ........................................................................................................ 16
4.3. Business experience and qualifications of the Entrepreneur ............. Error! Bookmark not
defined.
4.4. Pre- operating activities ...................................................................................................... 17
4.5. Pre- operating expense ....................................................................................................... 17
4.6. Office equipment ................................................................................................................ 18
4.7 Administrative Expense ...................................................................................................... 18
5. Financial plan ............................................................................................................................ 19
5.1. Project costs........................................................................................................................ 19
5.2. Financing plan and loan requirements ............................................................................... 19
5.3. Security for Loan ................................................................................................................ 19
5.4. Loan Repayment Schedule ................................................................................................. 20
5.5. Profit and Loss statement ................................................................................................... 20
5.6. Cash flow statement ........................................................................................................... 22
5.7. Balance sheet ...................................................................................................................... 28
5.8. Break- even point (BEP) analysis ...................................................................................... 29
5.9. Return on investment (ROI) ............................................................................................... 29
5.10. Financial analysis ............................................................................................................. 29

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1. Executive Summary
Gadisa and friends Car wash is a prominent hand car wash serving the Eastern Addis Ababa,
specifically Megenagna-CMC- Hayat village community. Gadisa and friends car wash is to be a
four -in-one car wash with three self-service bays and one automatic drive-thru. The facility will
be a well-lit, nicely landscaped, modern structure that delivers high quality service at competitive
prices with remote (video) security monitoring in the service area. B&C is designed to appeal to
both men and women, helping them feel welcome and safe while they wash their cars and other
vehicles.
The objectives for Gadisa and friends car wash and Detail Service are:
 To be viewed as a premium car wash and detail service around Megenagna, CMC,
Hayat.
 Maintain a very high gross profit margin.
 Maintain a modest, steadily growing net profit margin.

B&C is unique in that it is a community-minded business with a civic-minded approach,

which involves its owner in being a visible, active member of the local community. The site
will be familiar to the town’s people as the site of many civic events where possible B&C will
allow civic events to be hosted. Community service activities will include:

 Hosting regular meetings of local car.

 Assisting with charity fund raising car washes.
 Supporting neighborhood beautification.
By supporting the community with these activities, an identity will be established which will
support the marketing efforts of the business
President and Chief Executive Officer of Car Wash Plc. Is Yitafer Kasawmar (the owner).
Formerly, Shibiru Ashenafi and misgana moges (partner) will be the marketing manager for a
company. He will handle all day-to-day operations, buying of supplies and marketing of the
business.Custodial service, grounds upkeep, machine servicing and repair and maintenance will
either be outsourced or handled by a part-time employee.

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The site of B&C is the most important factor in the success of the business. All factors
have been considered, and the Megenagna-CMC- Hayat village community has been selected.
This site is particularly well-suited for a car wash.
The overall cost for the start-up of this business is 615,000. This amount is broken down as
follows:
1. Land is under contract and will be purchased for 180,000.
2. Construction of the facility will be approximately 125,000.
3. The equipment costs for the four self-service bays and one automatic drive through are
250,000.
4. Operating cost 60,000.
The owner will invest 160,000 and B&C will borrow the additional 455,000. A loan in the
amount of 244,000 for construction and an equipment loan of 211,000 are needed

2. Sales and Marketing

2.1. Product description
B&C car wash is a hand wash start-up company that will provide exceptional car care services to
the members of Megenagna-CMC- Hayat community. Quality services that exceed expectations
will establish Y&F car wash as the premiere car wash service.
Y&F car wash will provide three services to its customers:
 Car washing (exterior)
 Car cleaning (interior)
 Car detailing
B&C car wash will be providing customers with three services: exterior car washing, interior
cleaning, and detailing. B&C car wash 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. Hiring the best employees is cost effective because it decreases HR costs associated
with turnover and other employee costs. Hiring the best employees and making sure that they are
well taken care of ensures that they in turn take care of the customers.
2.2. Competitor
There is one other hand car wash around Megenagna, It is quite use river water to wash the cars,
and it is not targeting the customers who seek quality cleaning. There are also a lot of automatic
car washes in the entire cities; however, these shops not target those customers offering low

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prices. The customers who use B&C car wash is targeting have their cars washed based on the
quality of the work. They do not mind spending a little more each week to have their car washed
and waxed in order to keep the paint work in excellent shape. The businesses that B&C car wash
will be more cost conscious.

2.3. Location
B&C car wash will establish its location in Gurde sholla ,behind telecommunication office,
which are adjoining to Zeresenay Car repair (Garage). The car wash will be accessible from a
side road and will not interfere with the car wash traffic.
2.4. Market Area
B&C car wash use the these location was previously used an automobile service shop, so it is
set up to move vehicles quickly through the premises, but does not have all the necessary
systems in place to host a car wash and detail facility. The services of a contracting company will
be sought to convert the use of the facility and to improve the customer waiting room facilities.
2.5. Main customers
BC car wash will target three main groups of customers:
 individual car owner,
 company cars and
 Mini & midi Buses owners/drivers.
The surrounding area is quite affluent; more than 50% of the residents have their own cars.
Consequently, they have nice cars and want them to look nice. There are also governmental and
nongovernmental organizations which have a lot of cars starting small vehicle up to buses. And
there are many different local businesses (mini & midi buses) that require clean appearances.
2.6. Market share
The hand car washing business in Addis Ababa consists of many small competitors as well as
automatic car wash. Everything from local children raising money for by cleaning cars, to
the automatic car wash machines are competition for B&C car wash. However, those hand
washing alternatives aim to meet the needs of the price-conscious individuals who are choosing
the service simply so they do not have to clean the car themselves and those automatic car wash
machines aim to meet the needs of few people who can afford to their cars and those customers
who need to wash their car with a long interval.

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2.7. Selling price

In-bay self-service wash products = 18.00 for 3.75 minutes and 4.50 birr for each additional
minute. The services are listed below
 Soapy wash
 Tire cleaner
 Engine cleaner
 Wax
 Rust Prohibitory
Automatic wash bay
1. Basic ………………….63.00
2. Basic with wax………..72.00
3. Deluxe……….................81.00
4. Deluxe with wax………90.00
5. Vacuum……………... 18.00
6. Shampoo Machine 18.00 / 3.2 minutes 27/ 4 minutes
7. Vending items Varies from 13.50 to 36.00
Price assumptions
Pricing is based on global competitors.
2.8. Sales forecast
Sales are seasonal in this business, tending to be higher in the rainy summer season, and to drop
off in the winter. However, we will aim to flatten sales across the sales cycle by targeting
segments that will want to keep their cars clean and looking good year round.
2.9. Promotional measures
When B&C car wash service opens, press releases will go out to the newspapers, radio and
television. The initial marketing effort will include a direct mail flyer to the car owners closest to
the car wash. For the first four Saturdays after the opening, advertising will run in on two radio
stations sheger radio (102.1) FM and Fana FM.
2.10. Marketing strategy
Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of B&C
car wash, and that all employees care about the care and upkeep of each vehicle. We must be

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aware that there are low switching costs in the car washing industry, so we have to work hard to
develop and keep repeat customers.

2.11. Marketing budget

year 1 Expense
May 2000
June 2000
July 1000
August 1000
Total 6000
3. Production
3.1. Production process
B&C Car Wash will offer technologically advanced, frictionless, touch free exterior in- bay
automatic and self-service car wash facilities.
We could add an automated car wash that includes interior detailing. Current trends let
customers have choices on how they would like to have their car washed at different
times. The basic automobile wash consists of the self- service wash options. In-bay automatic
upgrade washes consist of an under chassis wash, tire scrubber and in-bay automatic upgrade
wash with extended drying. B&C will not only offer the cleanest and technologically advanced
car wash, it will offer remote video security and monitoring.
The car wash services are definitely motivated by environmental responsibility. Specifically the
issues that we will address include:
Bay Automatic
 Nozzle alignment, flow rates and timing are all deciding factors in water conservation
for in- bay automatic car washes. We will use reverse osmosis equipment which means
water rejected from the unit can be utilized in landscape watering.
Self-Service
 Automatic Usually relatively few gallons of water are used by a properly designed, water
efficient professional car wash. However, the architect and engineer will investigate the
use of a closed loop system. With these systems only water lost to evaporation and drive
away is consumed by the operation.

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3.2. Fixed capital

The fixed assets are the land the building and the machinery which are listed below

1. Land

2. Building

2. Machines

A. Conveyor : a conveyor that never need to think about, that is easy to maintain and delivers
unparalleled reliability

Fig. conveyor

B. per-wash

It covers all vehicle surfaces completely with detergent while accurately controlling
consumption for the most economical operation.

Fig. pre- wash

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C. Friction Car Wash: It needs to produce cleaner vehicles faster and more safely with
equipment that is durable, affordable, and easy to maintain.

Fig Friction Car Wash

D. Rinse and Wax

In addition to removing all detergent, it needs to automate triple foam conditioner, surface
protecting, and tire dressing application to partake in these profitable extra services without
additional labor expense.

Fig Rinse and Wax

E. Car wash dryer: need durable, energy efficient, labor saving drying.

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F. Support Equipment

 Air Compressors
 Applicator Pumps
 Cameras Controls
 Detailing Centers
 Detergent Accessories
 Dispensing Stations
 Floor Mat Cleaners
 Grating & Brackets
 Green Performance
3.3. Life of fixed capital
fixed asset
Machinery 25 years 10%
Building 30 years 5%
Furniture 8 years 15%

3.4. Maintenance and Repairs

B&C will enter into a maintenance agreement to local companies in order to service and
maintain the equipment. The whole spare part, manual of the machine and scheduled
maintenance will be supplied by supplier of the machines which will make the maintenance by

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local maintenance and Service Company easier. The removal agency which owned by
government will handle trash removal.
3.5. Sources of equipment
Source of the equipments are from foreign suppliers and supplier analysis is performed. Based
on that our supplier will be from USA ( Sonny car wash equipment and machine producer and
supplier) the equipments are showed in the above figures. Sonny car was products as the best in
the business, both for performance and efficiency and return on investment.
3.6. Planned Capacity
100% capacity utilization of machine maintained. During off peak period the machine will
working 10 hr per day six day per a week. During peak period the machine will operate 13hr/day
and seven day per week.
3.7. Future capacity
B&C car wash will explore growth opportunities in the future. The expansion areas that will be
considered are the addition of a full-service car wash and detail service, the addition of a fast
lubricant operation and perhaps a convenience store. Of course, these options change the natures
of the original business and with the increased revenues come increased expenses, including the
possible acquisition of neighboring real estate.
3.8. Terms and condition of purchase equipment
100 % cash paid for machineries used for car wash service which will increase the investment for
startup period. This is made because the company is new and the suppliers are foreigners so it is
difficult to pay for the machinery over a long period of time. But the supplier analysis is
performed and based on their quality, price and on time delivery the best supplier selected. This
supplier will give guarantees for machine supplied by them, after sale service and also training to
operator which is supported by Video and local professional.

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3.9. Company location and layout

CEO office Walk Marketing

way manager
office
Car wash service area
Toilet Reception

Garden (green) area

Parking area

3.10. Raw material needed

The raw material needed for car wash
 Water use in professional car washes constitutes a highly visible use of water in a
professional process. As such, it comes under scrutiny from the public and policymakers
especially during times of drought or water shortage. B&C will utilize conservation
measures and investigate water reclamation systems. We are definitely motivated by
environmental responsibility.
 Soaps
 Detergents,
 Waxes: protect your car with a clear, hard coating.
 Water treatment products.
3.11. Cost of Raw materials

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Table cost of material for year 1

Items Cost
Cost of water 8000
Soaps 3000
Detergents ( Car Shampoo) 24000
Waxes 30000
Water treatment 12000
Total 77000

3.12. Raw material availability

Raw material will bought from local suppliers and also from foreign suppliers ( Halcyon
Chemical) since our company aimed to be one of the leading luxury car wash service companies.
3.13. Labor
B&C is will employ a labor for interior cleaning of cars , guard and also cleaners for the office
,toilet and etc which will be out sourced. Two attendants will staff the wash Monday - Saturday.
They will provide customer service, vehicle prep at the automatic washes and maintain the car
wash site.
3.14. Cost of labor
 Two cleaners (the office ,toilet and etc.) will paid 250 hundred birr per month for each
labor
 Two attendant for car wash will paid 850 birr per month for each labor
 One guard security is 600birr

3.15. Labor availability

Mostly, there is no shortage of labor in Ethiopia but there is a shortage of skilled man power. So
there is no problem regarding to availability of labor.
3.16. Labor productivity
The two employees for car wash service will work (from 10 to 13 hr) from Monday to Saturday.
For the office cleaners there is no time bound, they can leave when they finish their job. But the
office has to clean before 8Pm. The workers will motivate by creating good working
environment, human treatment and increased responsibility. Their salary growth every year
which is depending on their performance.

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3.17. Factory overhead expense

Table cost of utilities for year 1

Cost of utilities
Telephone 600
Electricity 13000
Cleaners 3000
Security 7200
Total 23800
Table over head expense

company over head expenses

Maintenance and repair cost 9845
Depression of factory machine 31250
Cost of utilities 23800
Company over head expenses 64895

4. Organization and management

4.1. Form of business
B&C car wash service Plc. is a private limited company owned by close friends Yitafer
Kasawmar and Gadisa Bayisa who bond themselves for the purpose of the business.
4.2. Organization structure
This is a self-service car wash that employs only the owner and a part-time attendant. The
organizational chart at this time is simple – the employee reports to the owner. The chart below
shows the different operational aspects that the owner must oversee. If expansion is undertaken
in the future more employees will be added and a more detailed organizational chart will be
developed.

CEO

Maintenance Operation Accounting Marketing

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4.3. Pre- operating activities

Before the business can start actual operations, there are many preparatory steps that have to be
carried out. These are
 Doing market survey
 Analysis of machinery and raw material supplies
 Hiring consultant
 Preparing business plan
 Registering the business
 Training program
Table Gantt chart for pre- operating activities

N January February March April

o W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4
1 Doing market
survey
2 Analysis of
machinery and raw
material supplies
3 Hiring consultant
4 Preparing business
plan
5 Registering the
business
6 Training program

4.5. Pre- operating expense

Pre- operating expenses are those expenses which are needed in order to plan and prepare for the
business operation which are listed in pre- operating activities.

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Table pre- operating expense

No Activities Expenses Remarks

1 Doing market survey 12000
2 Analysis machinery and raw material 4000
supplies
3 Hiring consultant 6000
4 Preparing business plan
5 Registering the business 1000
6 Training program 1500
Total 23000

4.6. Office equipment

Fixed assets that used for office (to maintain the administrative aspect of a business) listed
below.

 Furniture
 Computers
 File cabinets
 Telephone
4.7 Administrative Expense
ADMINISTRATIVE COST
Salary of reception 14400
Depression of fixed asset 31250
Telephone 600

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5. Financial plan
5.1. Project costs
Total project cost is composed of three items: fixed assets, pre-operating expense and working
capital which is summarized below.

Table working capital

working capital
Over head expense 64,895
Wages and salary for a year 20,400
Working capital 85,295

Table project cost

Total capital requirement ( project costs)

Fixed asset 555,000
Pre operating expenses 23000
Working capital 85,295
Total capital requirement 663,295

5.2. Financing plan and loan requirements

A total of 615,000 will be required to fund the start-up of operations. The business itself will be
self- funding since most of the expenses are variable in nature and the operation does not accept
credit sales. Future growth would require additional funding. The current estimate is that
500,000 would be required for land and building additions to add a full-service car wash and/or
modular fast lube unit. The owner will provide 160,000 of equity financing. The remaining
455,000 will be financed with debt. A 20-year loan at 8% interest in the amount of 244,000 will
provide the funds for the land and building. A 10-year equipment loan of 211,000 at 10% interest
will be obtained to finance the equipment purchases.

5.3. Security for Loan

The company owner has a home which is estimated to be 700,000 birr. These will the company a
security (collateral) that can be given to the bank.

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5.4. Loan Repayment Schedule

Amount of principal installment interest payable total

outstanding due at 10% amount
Year 1 211,000 21,100 21,100 42,200
Year 2 189,900 21,100 18,990 40,090
Year 3 168,800 21,100 16,880 37,980
Year 4 147,700 21,100 14,770 35,870
Year 5 126,600 21,100 12,660 33,760
Year 6 105,500 21,100 10,550 31,650
Year 7 84,400 21,100 8,440 29,540
Year 8 63,300 21,100 6,330 27,430
Year 9 42,200 21,100 4,220 25,320
Year 10 21,100 21,100 2,110 23,210
Total 211,000 116,050 327,050

5.5. Profit and Loss statement

Y&F car wash service
Year end
Profit and Loss Statement
Year 1 Year 2 Year 3

Net sales 121,240 181,860 254,604

Cost of goods sold _ _ _
Gross Margin 121,240 181,860 254,604
Operating expense
Advertising 6000 1800 2520
Bad debt expense _ _ _
Depreciation 31250 31250 31250
dues and subscription 550 550 550
Insurance 6000 66000 7260
License and fees 6000 66000 7260
marketing and promotion _ _ _
Miscellaneous 1940 2910 4074
Office expense 4243 6365 8911
Office supplies _ _ _
Payroll expense
Salaries and wages 36124 54186 67460
Payroll taxes 5057 7586 9444
Benefits 722 1084 1349
Professional fees 1000 1100 1210

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Repair and maintenance 9845 14767 20674

Telephone 600 900 900
Training and development _ _ _
Travel 1500 1500 1500
Utilities 13,215 19823 27752
Total operating expense 124,046 157,020 192,115
Operating Income 2806 24,840 62,489
Interest Expense other Income (
interest ) 39819 38063 36204
profit before taxes 42625 13223 26285
Income taxes _ _ _
Net Profit 42625 13223 26285

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5.6. Cash flow statement

Table cash flow (year 1)
pre
startup May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr Total
Cash in
Cash sales 6,250 6,250 6,250 6,250 12,030 12,030 12,030 12,030 12,030 12,030 12,030 12,030 121,240
Collection from account receivables _ _ _ _ _ _ _ _ _ _ _ _ _

Equity received 180,000 _ _ _ _ _ _ _ _ _ _ _ _ 180,000

Loan received 455,000 _ _ _ _ _ _ _ _ _ _ _ _ 455,000
Other cash in ( receipts from other assets) _ _ _ _ _ _ _ _ _ _ _ _ _

_
Other cash in ( receipts from interest) _ _ _ _ _ _ _ _ _ _ _ _
Total cash in 615,000 6,250 6,250 6,250 6,250 12,030 12,030 12,030 12,030 12,030 12,030 12,030 12,030 738,240
Total cash available 615,000 66,250 48,618 48,335 41,052 43,548 42,482 42,916 40,350 40,784 41,219 41,654 42,000 798,240
Cash out
Inventory expenditure
Inventory raw material (cash) _ _ _ _ _ _ _ _ _ _ _ _ _ _

Inventory raw material( paid on account) _ _ _ _ _ _ _ _ _ _ _ _ _ _

Production expense _ _ _ _ _ _ _ _ _ _ _ _ _ _

Operating expense
Advertising _ 4,900 100 100 100 100 100 100 100 100 100 100 100 6,000
Dues and subscription _ 550 _ _ _ _ _ _ _ _ _ _ _ _
Insurance _ 3,000 _ _ _ _ _ 3,000 _ _ _ _ _ 6,000
Marketing and promotion _ 2,000 2,000 1,000 1,000 _ _ _ _ _ _ _ _ 60,000
Miscellaneous _ 100 100 100 100 193 193 193 193 192 192 192 192 1,940
Office expense _ 219 219 219 219 421 421 421 421 421 421 421 421 4,243
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _

Payroll expense _

Salaries and wages _ 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 2,825 36,125
Payroll taxes _ 368 368 368 368 448 448 448 448 448 448 448 448 5,057

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Benefits _ 63 63 63 63 64 64 64 64 83 83 83 83 722
Professional fees _ _ _ _ 1,000 _ _ _ _ _ _ _ _ 1,000
Repair and maintenance _ 507 507 507 507 977 977 977 977 977 977 977 977 9,845
Telephone _ 50 50 50 50 50 50 50 50 50 50 50 50 600
Travel _ _ _ _ 1,500 _ _ _ _ _ _ _ _ 1,500
Utilities _ 682 682 682 682 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 13,215
Paid on account _ _ _ _ _ _ _ _ _ _ _ _ _ _

Non-operating cost
Capital purchases 555,000 _ _ _ _ _ _ _ _ _ _ _ _ 555,000
Estimated income tax Payment _ _ _ _ _ _ _ _ _ _ _ _ _ _

Interest payment _ 3,385 3,373 3,382 3,348 3,338 3,324 3,312 3,300 3,288 3,278 3,284 3,851 39,819
Loan principal payments _ 1,444 1,458 1,481 1,487 1,493 1,505 1,517 1,529 1,541 1,583 1,585 1,578 18,129
Owners draw _ _ _ _ _ _ _ _ _ _ _ _ _ _

Other cash out _ _ _ _ _ _ _ _ _ _ _ _ _ _

Total cash out 555,000 23,882 9,533 10,533 9,534 13,098 11,598 14,598 11,508 11,595 11,595 11,594 11,594 706,744
-
60,000
Monthly cash flow 17,832 -3,283 -4,283 -3,284 -1,066 434 -2,566 434 435 435 436 438 30,498
Beginning cash balance _ 60,000 42,368 39,085 34,802 31,518 30,452 30,886 28,320 28,754 29,189 29,624 30,060 _

Ending cash balance 60,000 42,368 39,085 34,802 31,518 30,452 30,886 28,320 28,754 29,189 29,624 30,060 30,498 30,498

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Table Cash flow (year 2)

May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr Total
Cash in
Cash sales 11,385 22,735 22,735 22,735 22,735 11,365 11,365 11,365 11,365 11,365 11,365 11,365 181,860
Collection from account receivables _ _ _ _ _ _ _ _ _ _ _ _ _

Equity received _ _ _ _ _ _ _ _ _ _ _ _ _

Loan received _ _ _ _ _ _ _ _ _ _ _ _ _

Other cash in ( receipts from other assets) _ _ _ _ _ _ _ _ _ _ _ _ _

Other cash in ( receipts from interest) _ _ _ _ _ _ _ _ _ _ _ _ _

Total cash in 11,385 22,735 22,735 22,735 22,735 11,365 11,365 11,365 11,365 11,365 11,365 11,365 181,860
Total cash available 41,881 41,552 47,632 52,813 58,803 51,903 40,805 45,278 44,047 42,819 41,500 40,382 212,358
Cash out
Inventory expenditure
Inventory raw material (cash) _ _ _ _ _ _ _ _ _ _ _ _ _

Inventory raw material( paid on account) _ _ _ _ _ _ _ _ _ _ _ _ _

Production expense _ _ _ _ _ _ _ _ _ _ _ _ _

Operating expense
Advertising 150 150 150 150 150 150 150 150 150 150 150 150 6,000
Dues and subscription 550 _ _ _ _ _ _ _ _ _ _ _ 550
Insurance 3,300 _ _ _ _ _ 3,300 _ _ _ _ _ 6,600
Marketing and promotion _ _ _ _ _ _ _ _ _ _ _ _ _

Miscellaneous 182 384 384 384 384 182 182 182 182 182 182 182 2,910
Office expense 398 798 798 798 798 398 398 398 398 398 398 398 6,385
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _

Payroll expense 579 738 738 738 738 579 579 579 579 579 579 579 7,588
Salaries and wages 4,137 5,274 5,274 5,274 5,274 4,137 4,137 4,137 4,137 4,137 4,137 4,137 54,188
Payroll taxes 579 738 738 738 738 579 579 579 579 579 579 579 7,588
Benefits 83 105 105 105 105 83 83 83 83 83 83 83 1,084

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Professional fees _ _ 1,100 _ _ _ _ _ _ _ _ _ 1,100

Property taxes _ _ _ _ _ _ _ _ _ _ _ _ _

Repair and maintenance 923 1,848 1,848 1,848 1,848 923 923 923 923 923 923 923 14,787
Telephone 75 75 75 75 75 75 75 75 75 75 75 75 900
Training and development _ _ _ _ _ _ _ _ _ _ _ _ _

Travel _ _ _ 1,500 _ _ _ _ _ _ _ _ 1,500

Utilities 1,239 2,478 2,478 2,478 2,478 1,239 1,239 1,239 1,239 1,239 1,239 1,239 19,823
Paid on account _ _ _ _ _ _ _ _ _ _ _ _ _

Non-operating cost _ _ _ _ _ _ _ _ _ _ _ _ _

Capital purchases _ _ _ _ _ _ _ _ _ _ _ _ _

Estimated income _ _ _ _ _ 889 _ _ _ _ _ _ 889

Interest payment 3,342 3,230 3,217 3,204 3,192 3,179 3,168 3,153 3,140 3,127 3,114 3,099 38,063
Loan principal payments 1,587 1,500 1,612 1,625 1,637 1,650 1,663 1,878 1,660 1,702 1,715 1,730 19,885
Other cash out _ _ _ _ _ _ _ _ _ _ _ _ _

Total cash out 23,044 16,655 17,755 16,655 18,155 13,483 15,804 12,304 12,504 12,504 12,504 12,504 184,588
Monthly cash flow -11,679 6,078 4,981 6,080 4,580 -2,098 -4,529 -1,229 -1,229 -1,229 -1,229 -1,229 -2,718
Beginning cash balance 30,498 18,819 24,897 29,878 35,958 40,538 38,440 33,911 32,682 31,453 30,224 28,995 30,498
Ending cash balance 18,819 24,897 29,878 35,958 40,538 38,440 33,911 32,682 31,453 30,224 28,995 27,766 27,780

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Table Cash flow (year 3)

May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr total
Cash in
Cash sales 15,911 31,829 31,829 31,829 15,911 15,911 15,911 15,911 15,911 15,911 15,911 15,911 254,824
Collection from account receivables _ _ _ _ _ _ _ _ _ _ _ _ _

Equity received _ _ _ _ _ _ _ _ _ _ _ _ _

Loan received _ _ _ _ _ _ _ _ _ _ _ _ _

Other cash in ( receipts from other assets) _ _ _ _ _ _ _ _ _ _ _ _ _

Other cash in ( receipts from interest) _ _ _ _ _ _ _ _ _ _ _ _ _

Total cash in 43,679 49,211 60,498 70,572 79,328 73,198 88,337 85,781 88,814 88,728 89,779 70,833 282,372
Total cash available _ _ _ _ _ _ _ _ _ _ _ _ _

Cash out _ _ _ _ _ _ _ _ _ _ _ _ _

Inventory expenditure _ _ _ _ _ _ _ _ _ _ _ _ _

Inventory raw material (cash) _ _ _ _ _ _ _ _ _ _ _ _ _

Inventory raw material( paid on account) _ _ _ _ _ _ _ _ _ _ _ _ _

Production expense _ _ _ _ _ _ _ _ _ _ _ _ _

Operating expense
Advertising 210 210 210 210 210 210 210 210 210 210 210 210 2,520
Dues and subscription 550 _ _ _ _ _ _ _ _ _ _ _ 550
Insurance 3,630 _ _ _ _ 3,630 _ _ _ _ _ _ 7,260
Marketing and promotion 7,260 _ _ _ _ _ _ _ _ _ _ _ 7,260
Miscellaneous 235 500 500 500 500 255 255 255 255 255 255 255 4,074
Office expense 577 1,114 1,114 1,114 1,114 557 557 557 557 557 557 557 8,911
Office supplies _ _ _ _ _ _ _ _ _ _ _ _ _

Payroll expense
Salaries and wages 5,091 6,683 6,683 6,683 6,683 5,091 5,091 5,091 5,091 5,091 5,091 5,091 67,480
Payroll taxes 713 938 938 938 938 713 713 713 713 713 713 713 9,444
Benefits 102 134 134 134 134 102 102 102 102 102 102 102 1,349
Professional fees _ _ 1,210 _ _ _ _ _ _ _ _ _ 1,210
Repair and maintenance 1,292 2,585 2,585 2,585 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 20,874

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Telephone 75 75 75 75 75 75 75 75 75 75 75 75 900
Travel _ _ _ _ 1,500 _ _ _ _ _ _ _ _

Utilities 1,734 3,489 3,489 3,489 3,489 1,734 1,734 1,734 1,734 1,734 1,734 1,734 27,752
Paid on account _ _ _ _ _ _ _ _ _ _ _ _ _

Non-operating cost _ _ _ _ _ _ _ _ _ _ _ _ _

Estimated income _ _ _ 2,530 _ 5,912 _ _ -815 _ _ 301 7,888

Interest payment 3,088 3,072 3,060 3,044 3,031 3,017 3,002 3,088 2,974 2,958 2,944 2,929 36,204
Loan principal payments 1,743 1,757 1,770 1,785 1,798 1,812 1,827 1,741 1,855 1,871 1,885 1,000 21,744
Total cash out 28,297 20,543 21,753 23,073 22,043 20,770 18,487 14,857 14,000 14,857 14,857 15,159 228,898
Monthly cash flow 10,402 11,285 10,076 8,756 9,788 -4,859 -2,578 1,054 1,911 1,054 1,054 792 27,906
Beginning cash balance 27,780 17,382 28,667 38,743 47,499 57,287 52,428 49,850 50,904 52,815 53,869 54,923 27,768
Ending cash balance 17,382 28,667 38,743 47,499 57,287 52,428 49,850 50,904 52,815 53,869 54,923 55,715 55,674

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5.7. Balance sheet

Y&F Car Wash PLC.
Balance sheet ( Projected)
Year 1 Year 2 Year 3
Assets
Current asset
Cash and equipments 30,496 27,768 55,678
Accounts receivable
Security deposit
Other current assets
Total current asset 30,496 27,768 55,674
Fixed assets
Property, Plant and equipment 555,000 555,000 555,000

Less Accumulated Depression 31,250 62500 93750

Other non-current assets
Total non -current asset 523,750 492,500 461,250
Total assets 554,246 520,268 516,924
Liabilities _ _ _
Current liabilities _ _ _
Accounting Payable _ _ _
Other current liability _ _ _
Total current liabilities _ _ _
Long term liabilities _ _ _
Loans 198,055 183,757 167,962
Mortgager 238, 816 233,229 227,280
Other current liabilities _ _ _
Total noncurrent liabilities 436,871 416,986 395,242
Equity
Equity investment 160,000 160,000 160,000
Retained earning 42,625 55,484 29,563
Less Owner investment _ 869 8,755
Total equity 117,375 103,282 121,682
Total liability and equity 554,246 520,268 516,924

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5.8. Break- even point (BEP) analysis

In order to service the debt, pay the owner and employee and pay minimal operational and
upkeep charges, a minimum gross revenue amount of approximately 120,000 is needed.

5.9. Return on investment (ROI)

YEAR 1 YEAR 2 YEAR 3

Net profit 42625 13223 26285
Total equity 117,375 103,282 121,682
ROI 0.36315 0.12803 0.21601
ROI -36.32% 12.80% 21.60%

5.10. Financial analysis

From the above output of tools of financial analysis, market analysis, availability and cost of
material and labor, availability of suppliers at acceptable price and quality and etc, we can
conclude that the business can run successfully.

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