UNITY UNIVERSITY

Accounting and Finance Department of

Entrepreneurship

BUSINESS PLAN
Section-AFRS2
Name ID No
1. Dawit lieulseged .....................................................UU-CMC00175/14

Submitted to: Inst. Dr. Wondesen H.

Submission date: Sep21/2022
 Table of contents

1. Introduction............................................................................... 1
1.1. Name of the company..........................................................................1

1.2. Name and addresses of the partner...................................................1

1.3. Nature of the business........................................................................1

1.4. Financial statement.............................................................................1

1.5. Confidentiality of the report..............................................................2

2.Executive summary.................................................................. 2

3. Industrial analysis....................................................................2

3.1 Future outlook and trends..................................................................2

3.2 Analysis of the competitors................................................................3

3.3 SWOT Analysis..................................................................................3

4. Description of the venture.......................................................4

4.1 Services................................................................................................4

4.2 Size of the business..............................................................................4

4.3 Office equipment and personnel.........................................................4

4.4 Background of entrepreneur.............................................................5

5. Service...................................................................................... 5

5.1 Service process.....................................................................................5

5.2 Physical plant......................................................................................6

5.3 Equipment and machinery..................................................................6

6. Marketing plan......................................................................... 6

6.1 Pricing....................................................................................................6

6.2 Promotion strategy................................................................................7

7. Financial plan........................................................................ 7

7.1 Forecasted income statement for the next five years....................7

7.2 Forecasted balance sheet for the next five years............................8

8. Organizational plan...............................................................9

8.1 Organizational structures................................................................9

8.2 Forms of ownership..........................................................................9

8.3 Effects of change.............................................................................10

8.4 Critical risks.....................................................................................10

8.5 Contingency plan.............................................................................10

 QEDAMAWI CAR WASH
1.Introduction
1.1. The Company name
The company shall be named Qedamawi car wash.

1.2. Name and address of the partner

1. Dawit Lieulseged………. Addis Ababa-------------+251947886933

1.3 Nature of the business

The business focuses on service which involves cleaning of car parts which means the
exterior and interior of the car as a whole using high-quality cleaning products used for cars. It
also includes selling cleaning and maintenance products for a car.

1.4. Financial statement

This company shall be established with a capital of 450,000 ETB raised. The money raised will be used for startup
expenses and other expenses.
 1.5. Confidentiality of the report
The report is confidential and is for the sole and exclusive use of the person who formulated
this plan. It is not to be copied or disseminated to any other party without the express written
consent of the involved.

2.Executive summary
Qedamawi car wash is a service provider business that shall be established by one person
with a partnership deal. It expects to launch the car wash around Tulu Dimtu, Addis Ababa.

The capital required to start this business should be acquired through the contribution of
the private. The company is to be established to wash cars in the area and charge some amount of
money depending on the size of the cleaning that has been made. It also aims to help the
environment by motivating people with eco-friendly cars by giving these specific vehicles a
lower service payment price. The overall cost that is needed to start this company is 450,000ETB
and shortly intends to invest in other sites and open other branches all around the city of Addis
Ababa and in the whole country.

3.Industrial analysis
3.1. Futures outlook and trends
Many vehicles wander around the street in Addis Ababa and these cars seem to be
increasing from time to time in number which led to car washes being a valuable business in the
city. Even if multiple companies perform from this job they are more of small business ideas and
formed just to pass a day to day challenges. But our company Qedamawi car wash intends to
grow its method into a very modern way and reach as all car owners in the city as possible. The
number of cars in the city does not show a sign of decreasing but rather it is growing and cars are
being considered essential in modern-day life. So we hope we will widen our business as soon as
the bases of the first business seem to hold.

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 3.2. Analysis of competitors
There are a lot of car wash businesses in the city but they still use the old ways of cleaning
and aren’t established as a higher and more reliable source, we hope to solve that problem by
being efficient. Although few companies are efficient and modern, their costs are very high and
we intend to solve this problem too.

Strength of the competitors

The previously established car wash companies have more customers and good connection with
the people than our company as we are new to the market. But we will work on this.

Weakness of competitors

The weakness of other car washes is using inefficient and unmodern ways of cleaning. In
addition, they are charging a high amount of money.

3.3. SWOT Analysis

Strength opportunity
It is located near the exit of the city, The number of cars in our city is
so there will be many cars that get increasing day to day

into and out.

We use groundwater to wash
We have experienced partners
Weakness Threat
The availability of supplies All monthly expenses are largely
Shortage of electricity increasing
Insufficiency of electricity

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4. Description of the venture
4.1 Services
The primary services that are provided by the company are:

 Washing cars
 Selling detergents used for interior and exterior parts of the car
 Small coffee seating area for customers to spend time as a customer service

4.2. Size of the business

The business shall be small to medium size at the start but we hope to expand the
company to a multibranched big car washing enterprise.

4.3. Office equipment and personnel

This company shall require some small office and coffee area equipment.

No Description Quantity Unit price Total price

1 Table 1 8000 8000
2 Chair 6 5000 30000
3 Personal computer 1 9000 9000
4 Wi-Fi router 1 1500 1500
Total 48500

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 Manpower requirement
No Description Quantity Monthly pay Annual pay
1 General manager 1 5000 60000
2 Washer 6 3700 266400
3 Coordinator 1 3200 38400
Total 364,000

4.4. Background of entrepreneur

The partners have the ambition to have this type of company and some have an experience in
washing cars.

5. Service
5.1. Service process

Car wash
A customer should deliver his car to the car wash and give it to the employees who work
there. Then the customer will go and come back soon or can wait in the coffee place. Finally, he
will take his tidy car.

Small selling shop

A customer can ask for a cleaning product in the shop and buy the products he/ she wants

Small cafe
A customer could order a hot drink or soft drink and enjoy it until the car washing process is done

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 5.2. Physical plant
The car wash shall consist of the following facilities

• Washing area
• Waiting area
• Office
• A small store

5.3. Equipment and machinery

No Description Quantity Unit price Total
1 Water tanker 1 40000 40000
2 Water pump 1 5500 5500
3 Pipe 5 1000 5000
4 Buckets and towels 6 600 3600
5 Pressure 4 4000 16000
6 Cement 25 650 16250
7 Shade 1 25000 25000
Total 111350

6. Marketing plan
6.1. Pricing
This company provides a washing service at the appropriate cost. The fee will be

150 ETB for full washing

100 ETB for half washing

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 6.2. Promotion strategy
For our venture to be successful and profitable, it is essential to attract the attention of our
customers through advertisement and giving good service. The advertisement will be through
flyers, giving discounts to customers who are volunteers to attach our poster on their car, putting
banners around the location of our company and much more to be added in the future.

7. Financial Plan
7.1. Forecasted income statement for the next five year
Y1 Y2 Y3 Y4 Y5
Revenue
Service 880,000 1,020,000 1,070,000 1,107,000 1,407,000
Expenses
Electricity 18,000 20,000 22,200 23,100 23,600
Rent 156,000 180000 198000 204000 208460
Soap 10,800 11000 11200 11590 11590
Advertisement 10000 2000 2000 3000 4000
Digging water 20000 - - - -
Drinks 50000 51000 52000 52900 53000
Total 264,800 264,000 285,400 294,590 300,650
Income tax 215530 264,600 274,750 284,343 387,222
Net income 399,670 491,400 509,850 528,067 654,748

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7.2. Forecasted balance sheet for the next five year
1. Assets Y1 Y2 Y3 Y4 Y5
Cash 264,800 264,000 285,400 294,590 300,650
2. Owners
Equity
A. Dawit 49,958.75 61,425.00 63,731.25 66,008.38 72,749.78
Lieulseged

Total capital 399,670 491,400 509,850 528,067 654,748

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8. Organizational plan
8.1. Organizational structures
Owner

G.Manager

Employees

8.2. Forms of ownership

- Qedamawi car wash shall be established as a partnership

Management team

1. Dawit Lieulseged
 8.3. Effects of change

competition
As there are so many car washes, The market competition is high but being the first is our main
aim.

8.4. Critical risks

The risks of this business are

• insufficiency of electricity.
• Drying of water source
• High rent than the expected budget
• Inflation of prices of the supplies
• Unexpected interruptions that can stop or delay business-like pandemic lockdowns
and local emergencies
• Loss of a key member of the staff

8.5. Contingency Plan

We can manage those risks by the following mechanisms

• Using Generators when there is no electricity

• Having backup water in our tank
• Increasing our service price appropriately

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