Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY

GRADUATE SCHOOL
CEBU CITY CAMPUS
Corner M.J. Cuenco Ave. & R. Palma St., Cebu City INS Form 1B
website: http://www.ctu.ph email: information@ctu.ph June 2012
Telephone No. (032) 412-1400 Fax No. (032) 416-6706 Revision: 0

HARNESSING TECHNOLOGICAL THEORIES AND SKILLS FOREMPOWERMENT since 1969

Business Plan
On
Car Wash Service
In fulfillment on the course
Business Management
GS201 BDA 604

Prepared by:

CHERRY T. ENTIA
AILEEN SHEILA D. NUÑEZ
JELLICA ANNE ECO
 Table of Contents

I. Executive Summary............................................................1

II. Company Overview............................................................2

III. Services............................................................................3
Market/Industry Trends........................................................3

IV. Market Analysis................................................................4

Market Segmentation.............................................................4
Target Market Segment Strategy............................................5

V. Strategy and Implementation Summary.............................6

Sales Strategy........................................................................6

VI. Financial Plan..................................................................7

VII. Management and Personnel.............................................8

VIII.SWOT Analysis................................................................9

IX. Program Plan of Action...................................................10

[Company Name] Business Plan

 I. Executive Summary

The business will be called Car Spa Services. A prominent Car

Wash Spa serving in M.L. Quezon National Highway Lapu-Lapu City
along the way to Mactan Economic Zone, Airport and Mactan Newtown.
The surrounding area is quite affluent. It will solely run by the owner
Cherry T. Entia, a young entrepreneur who has been passionate about
Car wash services over the past 5 years.  There are many different local
businesses that have company cars and that require clean appearances.
All of these potential customers need a car wash that fits their needs and
their budget. I will happily fill that need. Additionally Car Spa Services
will provide excellent service efficiently and expertly cleaning customer’s
cars.

The Car Spa Services is a sole proprietorship. Cherry T. Entia will

be responsible for operational and financial management, sales,
marketing and promotion. She brings extensive knowledge and
experience from her Business Management class in her Masters in
Vocational Education. Car washes also cannot be outsourced. When
some driver needs her vehicle washed, she needs it to be washed
locally. Unlike other services that can be automated and outsourced, a
car wash business can only operate as a brick-and-mortar location. The
company will provide state-of-the-art, reliable, customer friendly
products and services, including a seven-selection wash control station
in each self-service bay, seven vacuums, two fragrance machines and
several accessory product and food/drink vending machines. For the
customers' convenience, the automatic bay will provide a complete,
detailed wash and wax.

[Car Spa Services] Business Plan

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 II. Company Overview

Car Spa Services will be providing customers with three

services: exterior car washing, interior cleaning and detailing. The Car
Spa Services has no true competitors that are trying to offer a high
quality service for a reasonable rate. Most are trying to compete on the
price alone. The company will provide state-of-the-art, reliable, customer
friendly products and services, including a seven-selection wash control
station in each self-service bay, seven vacuums, two fragrance machines
and several accessory product and food/drink vending machines. For the
customers' convenience, the automatic bay will provide a complete,
detailed wash and wax.

The Car Spa Services will be based in in M.L. Quezon National

Highway Lapu-Lapu City Cebu since it is along the way to Mactan
Economic Zone, Airport and Mactan Newtown and other neighboring
local establishments. This area has a number of benefits in terms of the
market that will provide for the business. Hiring the best employees and
making sure that they are well taken care of ensures that they in return
take care of customers. Several factors will make this car wash unique.
The company will offer a modern, easily accessible, high quality car wash
facility featuring a variety of income producing services, including
vacuums, fragrance machines, carpet shampooers and vending
machines. Management will actively promote the company's service
through local advertisements, cross-couponing with local merchants and
promotional giveaways like coffee mugs and key chains.

[Car Spa Services] Business Plan

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 III. Services

Car Spa Services will provide three services

 Car washing (exterior)

 Car cleaning (interior)
 Car detailing

Market/Industry Trends

 The company will offer a modern, easily accessible, high quality car
wash facility featuring a variety of income producing services,
including vacuums, fragrance machines, carpet shampooers and
vending machines.

[Car Spa Services] Business Plan

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 IV. Market Analysis

The Car Spa Services will be based in in M.L. Quezon National

Highway Lapu-Lapu City Cebu since it is along the way to Mactan
Economic Zone, Airport and Mactan Newtown and other neighboring
local establishments. Many people in the neighborhood own and lease
new cars and place great value on their cars and how they look. The
population demographics consist of a mix of newer single-family homes
and townhouse developments, older residential areas, subdivision homes
and condominiums dwellings. Car Spa Services will develop an attractive,
low maintenance, fully equipped and customer friendly car wash
designed to draw a wide customer base. The car wash will feature new
equipment designed for quality, reliability and easy usage.

[Car Spa Services] Business Plan

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  Market Segmentation
The Car Spa Services will target three main groups of customer:
individual car owners and leaser, car dealerships.

Market Analysis

Local Business

Individual Car Owners and

Leasers

Car Dealerships

Individual Car Owners and Leasers Car Dealerships Local Business

 Target Market Segment Strategy

The strategy behind Car Spa Services target segmentation is

to attract customers who will be repeat users and will
frequent the business. It will not be difficult to attract
customers during summer months and on the weekends, the
weekdays however, especially in winter, people will not think
about having their cars wash. For this reason Car Spa
Services will target people who will tend not to be restricted
to these busy times.

[Car Spa Services] Business Plan

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 V. Strategy and Implementation Summary

The key differentiator for Car Spa Services is Cherry T. Entia and
her business and personal connections. For this reason, the sales and
marketing focus will be on a one-to one basis, the emphasis on gaining
loyal and repeat customers as friends of the business. Car Spa Services,
therefore will depend on the word of mouth advertising for the immediate
community and invite friends, colleague, family friends and relatives.

 Sales Strategy

Sales strategy is on a one-t-one basis. All customers will feel

they are valued friends of Car Spa Services and that all
employees care about the cars and upkeep of each vehicle.
We must be aware that there are low switching costs in the
car washing industry, so we have to work to develop and
keep repeat customers.

[Car Spa Services] Business Plan

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 VI. Financial Plan

The company will be solely owned and operated by Cherry T. Entia,

who will retain financial and managerial control. The firm swill be funded
by initial personal investment and will finance growth through cash flow.
This will mean that the company will grow more slowly than it could, but
it will ensure that Cherry T. Entia retains control over the direction of the
company.

The financial projections for Car Spa Services are based on the
following assumptions. These assumptions are thought to be quite
conservative, as financial forecast. As the company is in the start-up
stage, these projections are based on estimates and not on the
company's historical results. Because events and circumstances do not
occur as anticipated, there will be differences between the Financial
Projections and actual results, and those differences may be material.
The Financial Projections are based upon detailed underlying
assumptions.

[Car Spa Services] Business Plan

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 VII. Management and Personnel
The sole owner and the full time manager of Car Spa Services is
Cherry T. Entia. The owner will be responsible for operational and
financial management, sales, marketing and promotion. Mrs. Entia will
strive to learn extensive knowledge and experience in the field of running
the firm by her own. In addition the owner will also apply her knowledge
and skills which she got from one of her subject in her Master’s Degree,
Business Management. The experience of the owner during her Master’s
Degree has provided invaluable insight into the operational aspects of
managing and maintaining her upcoming business venture in car
washing. The owner will be hiring one supervisor who will focus and
supervise on daily operations, building maintenance, property
maintenance, and equipment maintenance.

Since car washing is a seasonal business, with business increasing

in the warm summer month, and being busier on the weekends than
during the week, The Car Spa Services rely on both temporary and part-
time help. The company will hire one full-time car wash/detail specialist,
three was attendants and one supervisor who will accommodate a daily
average of 5-6 cars for walk-in business. Although it will rely on
temporary and part-time help, quality will not be compromised, since all
washers and detailer will receive thorough cleaning. The company will
also hire an administrative assistant who will assist Mrs. Entia with
paper works, receptionist and bookings online through Facebook page.

[Car Spa Services] Business Plan

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 VIII. SWOT Analysis

The following SWOT analysis captures the key strengths and

weaknesses within the company, and describes the opportunities and
threats facing Car Spa Services.

Strengths
 Good relationships with many perspective customers in the target
market.
 Well trained employees.
 Strong name recognition and equity in the community.
Weaknesses
 The need to have a fairly constant volume of business to support
the necessary service staff.
 The learning curve associated with entering an industry without
prior experiences.
 The need for reliance on outside investors.
Opportunities
 Participation within steady growing industry.
 A high like hood of repeat business.
 The ability to decrease the fixed costs as a percentage of an
individual sale as volume increases.
Threats
 Future and potential competition from a franchised firm.
 A slump in the economy, reducing discretionary spending.
 The perception that there is no difference in quality between a
hand and a machine.

[Car Spa Services] Business Plan

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 IX. Program Plan of Action

The single objective is to position Car Spa Services as the premier

automobile hand washing company in the area, steady increasing market
share. The action plan will seek to first create customer awareness,
develop a customer base, and work toward building customer loyalty.

The message that Car Spa Services will seek to communicate is

that their hand washes are superior to the machine washed alternatives
that can actually cause harm to cars. Also by embracing the help of new
technology that make the work efficiently clean and fast. This message
will be communicated through Social Media. Social media is one of the
most cost-efficient digital marketing methods used to syndicate content and
increase your business' visibility. Implementing a social media strategy will
greatly increase your brand recognition since you will be engaging with a
broad audience of consumers. To get started, create social media profiles for
your business and begin interacting with others. Get employees, business
partners, and sponsors to "like" and "share" your page. Simply having people
interact with your content will increase brand awareness and begin building
your reputation as a business. Each post that is shared will be introduced to
a new network of individuals, which can lead them to becoming potential
customers, and the more people who know about your business, the better.
By investing only a few hours per week, over 91% of marketers claimed that
their social marketing efforts greatly increased their exposure. There is no
doubt that by simply having a social media page your brand will benefit, and
with regular use it can generate a wide audience for your business.

[Car Spa Services] Business Plan

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