FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT

DEPARTMENT OF ELECTRICAL AND ELECTRONIC ENGINEERING

TECHNOLOGY

BUSSINES PLAN
1

NAME:

SURNAME:

STUDENT NO:

MODULE NAME:

1
CONTENT PAG page no:

ABSTRACT 3

INTRODUCTION 3

THE MARKET 5

SERVICES 8

PRICE 10

PROMOTION 16

PLACE 16

S.W.O.T ANALYSIS 16

COMPETITORS 18

SUPPLIERS 20

ENTRY THREATHS 21

LOCATION ANALYSIS 21

MANAGEMENT 25

RESOURCES REQUIRED 27

FINANCIAL PLAN 30

CONTINGENCY PLAN 36

CONCLUSION 41
 ABSTRACT

This is a business plan about Car washing which will cater to people living in Nelspruit and
around Mbombela District Municipality .The fact that the car wash service will be offered at an
affordable rate without compromising the standard of quality will also be able to ensure that it
provide an incredible service to customers going through Mbombela stadium for every exciting
game, to be able to go -“Smart & shine” all the way. Take away cafe will offer drinks and food in
a convenient way; Factory shop will provide the necessary stylish for traditional clothes. Public
phones will provide a unique way for communication and community chat.

PERSONAL VALUES, OBSTACLES AND SOLUTIONS

Values

To employ more young people and therefore reduce poverty amongst the youth.

To take a lead in developing community and improve the standard of car washes to
another level.

This business will make me happy and will be the first step to invest money and develop
other businesses

To encourage the culture of learning amongst the schools by donating with studying
materials like computers and lab equipments.

To support young talented people and community events.

Obstacles

The biggest challenge is to overcome the initial cost resources to start this business. Lacking the
experience of managing and running the business is another part of my obstacle and to provide
the security at appropriate manner especially during late evening to avoid crime.

Solution

The only solution in this regard is to draft an eye-catching business plan and be able to
represent it to money loaners such as banks and other financial institutions. Position the car
wash project as the best and in a formal manner in the market, in terms of cost and services.
Built strong market position among the local clients and work together with a community and
police to fight crime in this municipality.
 INTRODUCTION

Smart & Shine will be situated at Mpumalanga in Nelspruit where this location is governed by
Mbombela Municipality. According to my survey Peter, Mr. Mbaswana, most of respondents
make 80% confirmed that the strategic location of the area within the municipality appointed
to take responsibilities of the upcoming world cup was good to enough to develop my business.
Another factor is that Mbombela is surrounded by number of Townships and therefore the
population size and economic profile will be suitable to keep the project successful.

Description

The purpose of this business is to modify the standard of this sector and to be able to offer the
service that have not been offered by the Car wash operating at Townships, to be able to offer a
good services to local and visitors client who are coming to Mbombela stadium and at the same
time to keep the local existing client support.

The financial Target

The financial target for the business is to provide a monthly income of R 35000.00

Objectives

The objectives are as follows:

Short term:

Minimum monthly income of about R35000. There fore the amount of goods sales
income be met is R40000

Then to meet the monthly profit target ofR35000 the business has to carry 1033 cars,
2016 people for take away café,136 people for factory shop and 1775 units to be
consumed .

To brake even we have to carry 177 cars for 1st option, 289 cars for 2nd option,912
people for take away café 62 people for factory shop and 802 units to be consumed.

Medium term:

Build strong market position among the local clients.

To position my business as the best in the market in terms of cost and services

Long term:
 To expand my business to other provinces and get a partnership there to be able to
employ more young people around the country.
Also to come up with a strategy for attending in house service for dirty cars and to be a
part of a washing consultant to provide special services for big Bus company such as
BUSCO and truck services such as Ni-da , Reinart and sore on.

The Legal Requirements

The Legal Requirements for establishing a Close corporation “CC” consists of a registration with
a registrar of close corporation, it is also easier and cheaper to register and run that company.
Close corporation is a simplified business entity specifically designed for small enterprises. A CC
can have between one and ten members, each of whom owns an agreed percentage of the
business and who is liable for managing it properly. The CC is considered to be a tax payer in its
own right; it must have an accounting officer but is not required to have audited financial
statements.

There are also various forms to be completed in order to start a business

Vat registration –the local South African Revenue services.

Employee Registration - the local South African Revenue services.

Highest Qualification

I have completed my S3 and some of S4 Subjects in Electrical Engineering (Light Current).I

obtained a Learner’s license (code 10).

THE MARKET

The car wash will be based in Nelspruit, the capital city of Mpumalanga province which
is surrounded by various townships such as Tekwane, Kanyamazane, Mpakeni and
Matsulu. This city has a number of benefits in terms of a market that it will provide in
my business.

According to the Mbombela Profile from www.mbombela.gov.za/profile the following

information was also taken into consideration for market benefits:

The total area occupied by Mbombela municipality including Nelspruit and surroundings
is 3451km².

Mbombela population consist of 734 482 people.

Mbombela number of residential stands/ Households is 131368 for major Townships

under municipality infrastructure.
 Mbombela map

Due to the fact that Nelspruit and surrounding townships : Tekwane, kanyamazane,
mpakeni and matsulu make up 60% of the population under mbombela

Consultant: Mr. MG Ndwandwe (census department & events) under Mbombela

Contact no: 078 5101195

Markets

Due to the fact that Nelspruit is the big city of Mpumalanga with governments based in this
area, the municipality alone has a massive fleet of vehicles that can sustain the business. Also a
stadium alone has a large capacity that will bring more customers to be able to grow my
business.

The breakdown of market

 Cars for Soccer supporters: the soccer supporters who are coming for every exciting
game at Mbombela stadium will be welcomed to smart& shine. The public unit’s phones
will bring that atmosphere to communicate to one another. Factory shop will also bring
joy to supporters and enjoy the stylish of getting the same funny color of their T-Shirt
printed for their team. The take away cafe will provide the necessary drinks and food
for celebrating the victory after exciting game or to refresh sadness after a disgraced
loosing for a favorable team. 600 cars for a big game.

Cars for Rugby supporter: due to the fact that the stadium will be performing multi
games including rugby and the fact that most of the rugby supporters are white people
in that area who are driving, then the car wash will expect more busy time during that
occasion. 800cars for big game

Government vehicles: The government vehicles will play a major role to promote
growth in the business. 3000 vehicles.

Municipality vehicle: The municipality its self has a reasonable car capacity to be able to
get smart & shine. 3800 cars.

Local businesses: Most of the local businesses located around the city are using van and
small cars to deliver that must be kept clean to maintain their company image.80 cars

MARKETING

To be able to implement growth in the business depends on the strategy that is used to attract
more customers, or to make an eye catch so that will cause more customers to leave the
existing car wash service. Thus the area of a smart & shine will be decorated in decent way
putting the team flags in the entrance which corresponds to a specific game which is playing.

MARKET GROWTH

Considering from 2009, 2010 and beyond

Potential customers % Car reason Car reason

growt capacity for capacity
h 2009 2010
Cars for soccer 2% 200 Due to the 600 The stadium
fact that most capacity will be
supporters of soccer increased to
supporters 45000 sitting
use buses. capacity

Cars for rugby 3.5% 400 Most of rugby 800 Big games will
supporters play there and
supporters use personal the stadium
vehicles for capacity is
transport. increased to
45000 after
construction.

Government 1.23% Are 650 664 More demands

vehicles as the city grow.

Municipality vehicles 1.75% 740 763 Capacity of town

and township is
increasing, thus
more demands.

Local businesses 2.35% 30 45 Most of the local

businesses will
grow as the
population
capacity
increasing and
more tourists are
expected.

Market share

The main concentration of my business is to the customers who are coming to Mbombela
stadium and vehicles around the city in Nelspruit which is about 60% of the Population of
(734482) under Mbombela, and then Nelspruit contribute 440689.2 people.

My business with other three competitors we will share 20% each of the market.

DESCRIPTION OF SERVICE

The purpose of smart & shine car wash is to meet the standard of other professional business
and also to show the visitors for FIFA 2010 world cup that a car wash is more advance and more
reliable way to keep your car smart. Also offer a service in decent way from the existing car
wash service that is offered in townships, while at the same time it keeps the existing client
base.

Services to be offered by smart & shine.

MANDATORY SERVICES

Washing the exterior with professional car wash products.

 Applying rain repellent

Washing and applying professional car tire polish.

Vacuum cleaning the flour and all seats in the interior of the vehicle.

Cleaning the interior of the vehicle and applying special polish to the dashboard as well
as applying the professional spray to protect dashboard.

ADDITIONAL SERVICES WHICH IS NOT MANDATORY

Applying car body polish by hand to the vehicle.

Window tinting, fix a flat and selling car accessories. Some of the non-additional non-
core services will be dependant on the capacity and skills of the individual Co-operative
members.

Take away cafe

Breakfast , sandwiches and Wraps, salads ,and drinks

Public phones

Local and international phone call services

Factory shop

Traditional clothes design and selling

OPERATING HOURS

Monday to Saturday

06:00a.m to 18:00 p.m exceed to 22:30 during big soccer games

Sundays & Holidays

08:a.m to 15:00p.m

INSTRUCTIONS TO CUSTOMERS

They will use left- hand side for entrance gate and right- hand side gate for exit.

Areas such as: Full wash ,exterior wash ,Detail shop ,, vacuum area , wash tunnel,
cashier, manager’s office, parking area ,restaurant ,factory shop and public phones .
 These areas will be indicated clearly using paint colour. There will be also a special
attendant that will usher those customers who are not sure about the services.

While customers are waiting for their cars may proceed to the reception area where
background entertainment is politeness of music, light snacks and drinks. They must
take note that there is no credit service so they must pay on the same day.

PRICING

TABLE OF PRICES AND COSTING

costing
Sandwiches and wraps Cost price Sale price Margin

Nicoise T una R4.37 R9.50 R5.13

Loaf of bread R8.50/22

Slices

2*Slices of bread 40cents

1* polony R1.20

1*lettuce R1.00

1* Cheese R1.50

Total cost R4.37

Margin=selling price-cost price

= R9.50- R4.37 =R5.13

Tandoori wrap Cost price Sale price Margin

Carrot 50c R4.50 R10.00 R5.50

Cucumber R1.00
Lettuce 50C

Coriander youghut dressing R2.00

Wrapper 50c

Total cost R4.50

Margin=selling price-cost price

=R10.00-R4.50=R5.50

BREAK FAST Cost Sale price Margin

price
Costing

Oak Benedict: R7.40 R15.00 R7.60

2*eggs R2.40

1*Tomato R1.50

Mushroom R1.50

Creamed spinach R1.20

2*Toasted slices 80C

Total cost R7.40

Margin=selling price-cost price

=R15.00-R7.40=7.60

Take away with salad Cost Sale price Margin

price

Chopped cabbage 60C R13.75 R30 R16.25

Chopped carrots 65c

Tomato sauce R1.00

Beef sausage R10.00

Plastic spoon 20c

Plastic take away 30c

mayonnaise R1.00

Total cost R13.75

Margin=selling price-cost price

= R19.00-R13.75=R5.25
Fruit pack Cost Sale price Margin
price

1 box of apple with 60 apples From the 83c*2 R4.22 R7.50 R2.78
wholesaler=R50 . Then 50/60= apples

1 box of bananas with 40 63c *2

bananas=R25 .Then 25/40= banan
as

Grapes R1.00

Plastic tray 20C

Plastic wrapper 10c

Total cost R4.22

Margin=selling price-cost price

=R7.50-R4.22=R2.78

Car wash Cost price Sale price Margin

Wash, dry, engine wash and vacuum R12.49 R45 R32.51

Cleaning liquids: vinyl cleaner with10, R2.60
of 750ml =R130. Then one bottle=R13 for 1 car
can wash 5 cars

Carpet/ spot remover =R280 for 24 R3.89

bottles 500ml. then one bottle=R11.67 For 1car

Rain vision repellent for exterior glass R6.20

treatment=R380 for 750ml bottles for per car
12 bottles. one bottle =R31.00

Total cost R12.49

Wash, dry, shine tires, dash and vacuum Cost price Sale price Margin

Black jack tire shine 750ml=R35 .can do R11.60 R18.10 R60.00 R41.90
12 tires for 1 car

Wheel and rim cleaner 10Bottles R3.00

*750ml=R120 .1 Bottle=R12.00

Never fog interior glass and R3.50

mirror(prevent steaming)

Total cost R18.10

Factory shop & phone calls Cost Sale price Margin

price

Traditional clothes (shirts ) R119.00 R150.00 R31.00

Material: Isishweshwe =R20.00 per meter

1.2Meter used=R24

Buttons and zip=R15

Labour=R60

Total =119
 Margin=selling price-cost price

=R150-R119=R31

Additional from factory shop: selling T –Shirts, Cost price Sale price Margin
from the supply 1 pack consists of 50 T-shirts
which cost R1500. Then one T- R30 R50 R20
Shirt=R1500/50=R30.00.

Public phone service will charge with relating to 54 cents 90cents 36cents
the National standard public phone cost with
90cents per unit. Then I will take 40% from the
network operator per unit . Then 90c*0.4=36cents

PROMOTION

Special designed brochures will be used for promotion.

Brochures will be distributed twice a week to people who are going to the stadium, local
taxi rank, filling stations and shopping center.

We are going to distribute about 2000 copies A3 per month and they will cost about
R700.00 if each copy is costing 35cent.

Company will offer items like calendars and also supporting various events that take
such as conferences. We will also offer some special fits during the opening for the first
week for our customers during their first service.

PLACE

Address:

N4 national road

Bell and Cameroon Street

Nelspruit

1200

Contact no: 0781314216

E-mail: sipho.m.shongwe@mtnloaded.co.za

S.W.O.T ANALYSIS

Strengths

There is more people looking for a job

Pricing-Affordable cost for customers

Quality services-This includes Full wash and engine Detail

Noticeable location- former quick stop automobile service shop as one of the advantage
to quickly gain market penetration.

General work is done by people who are entirely responsible; the planning is done by
those who will implement it.

Knowledgeable and friendly staff.

Weakness

Lack experience

Shortage of necessary equipment

Limited space for parking

Machinery- Slowly approaching obsolescence unless replaced within six months

Opportunities

People around the proposed location will get jobs and this will benefits towards the
economy in general.

The rate of team supporters who are using cars to go to the stadium is increasing.

Rate of new cars increased very rapidly in the country.(Transportation)

I am situated near a huge stadium where lot of events takes place there.

My price will be a five rand less than my main competitors

It will be operating seven days a week.

Threats
 Lack of reliable labours

Shoplifter (crime rate)

More competitors

Taxation

Bad weather:-whenever the forecast calls for rain, people don’t get their cars washed
because they figure that the bad weather will make it wasted time.

COMPETITORS

FORMAL CAR WASH SERVICES IN TOWN

There are 2 Car wash services operating in Nelspruit Most of them are operating from the filling
stations as an additional service. They mostly charge the same price for similar service, which
includes:

Quick Wash: R20.00

Full Wash: R30.00

Engine Wash: R30.00

Polish Car: R100.00

Twin Cab: R120.00

Combi: R150.00

Leather Seat Treatment: R90.00

Boot Wash: R40.00

Ceiling Wash: R40.00

Carpet Wash Only: R80.00

Tyre Polish: R8.00

Vacuum Only: R10.

Most of them have an average of 5 permanent staff members and 3 casual workers who are
called as and when there is a demand for the service, which is mostly during weekends and at
the end of the month.
Most of the employees earn a salary of about R600.00 per fortnight.

INFORMAL CAR WASH SERVICES

There are about 6 car wash services operating in the township. Most of them are owned by
unemployed youth, others are owned by adults who employ the youth to wash cars and pay
them a particular percentage. Most of the employees have no fixed salary; they get paid on the
basis of the cars that have been washed on a particular day.

There is no formal pricing structure in the township; the owners determine the price. It varies
from one car wash to another with the average price being:

Sedan: R20.00

Double Cab: R25.00

Combi: R30.00

The amount of cars that each car wash in the township washes depends on a number of factors
which amongst others include the location of the area, the popularity people who wash the
cars/owners. The service they provide and the availability of shops, complexes and taverns
within the vicinity of the car wash. On a good day a car wash can service as many as 30 cars
while on a bad day it can wash as low as 5 cars.

Main Competitors of Smart & Shine will be:

Kwc Car Wash

General Dan Pienaar Ave

Next to Faurie Street

Nelspruit

1200

Telephone: 0785610605

Hour of operation: 8a.m-5p.m Monday to Friday and 8am-1pm on Saturday

Services offers : both exterior, interior Wash and Major Detailing

They have less price, but they services are very poor.

Quiq Car Wash

Drysdale Street

Next to Van Riebeeck Park

Nelspruit

1200

Telephone: (013) 522 5645

Hours of operation : 8a.m – 5p.m Monday- Friday and 9a.m –2p.m Saturday and Sunday

Services offer : both wash and detail

People wait for about an hour and half. It maintains limited parking area.

Go splash

Kwanyamazane taxi rank

Kwanyamazane

1215

Contact no: 082 0496636 Mr. Mtsweni

SUPPLIERS

Makro

Street address: 142 Anderson street

Factory plaza
Nelspruit

1200

Postal address:

PO Box 15726

Nelspruit

1200

Telephone: +27 (13) 846 3600

 Fax: +27 (13) 346 0247

Pick n pay

C/R yawl Din Street

Green point mall

Nelspruit

1200

Tel: 013 225 6587

Jendus clothing cc

52 Jacob Street

Tekwane

1256

Contact shiney: 0737557494

ENTRY THREATS

Fitness Threats

It is clear that starting a business requires a lot hard work. Too much hard work may leave one
depressed and stressed - especially when you also have the daily job to do where you are
expected to perform to the best of your ability. Due to this my performance may be greatly
degraded and this could be a major threat to the business.

Lack Of Courage

One of the major internal threats is lack of courage. Things will not be going easily and yet the
competitor will not be giving me a smooth time - this may lead to a lot discouragement since I
will not even be sure that the business will succeed. This could result in me giving up.

Money

If the actual expenses for starting the business will exceed the budget, I may not be able to
purchase some of the most important items that are of essential importance to the starting of a
new business and as a result end up being unable to continue with it.
 LOCATION ANALYSIS

SITE

The site is reasonably big so that it can be able to accommodate a lot of cars. People value their
time and they do not want to wait a long time for their cars to be washed. The site also has
enough water supplies because car wash requires a lot of water. There also has to access to
electricity. The location is popular venue that is used by people who are going to mbombela
and Golf Park.

LOCATION

The location of the site is considered in relation to:

Security of the area

Availability of services like water, drainage system and electricity.

Traffic flow rate is high.

Near the stadium & near golf park

ACCESS

The site is accessible to customers.

SIZE

Initially the size of about 300m2 will be enough but once a project grows to accommodate a
huge machine they will require a land size of 1 000m2.

SITE MAP
Floor plan: appendix
ENTRY THREATS

Lack of funds-I will only rely on the loan since I don’t have any fixed capital or
equipment (and the chances of getting a loan are limited) since the loaners require
proof of permanent employment and certain amount of salary for a specific amount of
loan.

Lack of experience- Lack of business experience is serious problem to my business,

because I might not achieve the monthly target accordingly. The competitors are also
not happy to see new business of their same kind. They will try to come with their new
strategy to attract more customers.

Not getting the support from my family and friends-I might struggle to gain reputation
from the community of Nelspruit.

More experience staff- they will demands huge salary according to their experience and
that will leave me with no profit at all and I will be discourage and give up.

MANAGEMENT

General Manager

In order for the business to start and run effectively, management and financial skills is the key.
But for me the owner I only know little about financial Skills (basics), but since I am practical,
creative, reliable, punctual and sympathetic kind of person, I will ensure that all the necessary
work is completed in time and it will be vital to delegate responsible personnel for the tasks. In
order to maintain effective financial management a suitable qualified financial accountant will
need to be appointed to create short and long-term strategy vision for the company.

General Manager’s role

I will be responsible for the day to day running of the co-operative.

Decide on the use, organization and management of resources such as finances,

personnel and facilities.

Manage, control, lead, and direct staff.

Responsible for budget, purchasing, production, marketing and staff relations.

.
 .

Secretary. (R1000)

Handles correspondence.

2* Dress maker (R4000): Responsible for making and designing the traditional clothes for
factory shop

8Members (R10000)

They are highest decision makers.

Oversee the entire functioning of smart &shine

Take strategic decisions.

Oversee the entire function of take away café.

PERSONNEL PLANS

RESOURCES REQUIRED

START-UP COST

Requirements Expenses

Rent R2 000.00

Insurance R700.00

Building Equipment R30 000.00

Building Labour R20 000.00

Water R5000

Electricity R1200

Car wash

Elite brush machine R7000

Fan drier R3000

Wheel cleaning power brush *2 R62

Tire scrubber *8 R80

Vacuum cleaners *2 R4000

Sponges *24 R65

Sprayer with horse R300

Grid guard wash buckets*6 R130

Vinyl cleaner *24 bottles R200

Black jack tire shine*24 Bottles R430

Rain vision repellent *24 bottles R160

Leather cleaner*12 bottles R180

Factory shop

4 tables R2000

Industrial machine*1 R3000

Shelves R2000

Iron and iron board*2 R250

Scissors*5 R60

Material R3000

Take away cafe

2 stoves R6000

Refrigerators R8000

Knifes,spoons,folks, Dishes R600

Fruits R500

Beef R5000
Vegetables R2000

Salad mixers R400

Drinks R2000

Plastic wrappers R40

Dish washer R700

4 tables R2000

16 chairs R500

Public phone service R5000

Total Start-Up Expenses R104917

BANK INFORMATION

Consultant:

Name : Mr. Tinyiko Baloyi (Small Business Banker)

Bank : ABSA Bank

Branch : SOUTHGATE MALL (JOHANNESBURG)

Contact No. : 011 942 7611

Also visited Website: http://www.absa.co.za

Requirement for bank loan:

Must be a South African Citizen and not be blacklisted and have a salary advise.

They want a list of my Assets and Liabilities

Cash Flow Statement

Proof that it’s a registered Company and its number, and what type of business it is.

The latest two months bank statements of the owner

 Comprehensive Business Plan

Proof of residence (if applicable)

Green bar-coded ID document

Terms of the loan:

Repayment is between 2 and 7 years

Loan installments can be repaid monthly, bi-monthly, quarterly or annually

Interest is charged on the daily outstanding balance

Loan of R 150 000.00

Rate interests 15 %

Therefore Monthly Repayment = R4 485.02 for a period of four (4) years including
interests

FINANCIAL PLAN

The following plan outlines the financial development of smart & shine. The business will be
initially financed by a R150 000.00 loans from local financial institution (bank)

Break-Even Analysis

Monthly Expenses Amount

Rent R2 000.00

Insurance R700.00

Water R5000

Electricity R1200

Telephone R500.00

Loan Repayment R4 485.02

Salaries R15000
Total Monthly Cost R28885.2

Breakeven analysis

P=(S-C) V-E

PROFIT =0

Car Wash:

Car-Wash 1st option = (R28885.2x0.2) / R32.51

= 177 cars

Car-wash 2nd option= (R28885.2x0.42) / R41.90

=289 cars

Take away café:

Sandwiches and wrap:

Nicoise tuna = (R28885.2x0.05) / R5.13

=281 people

Tandoori wrap= (R28885.2x0.05) / R5.50

=263 people

Break fast: = (R28885.2x0.05) / R7.60

= 190 People

Take away with salad= (R28885.2x0.1) / R16.25

=R178 People

Factory shop

Traditional clothes= (R28885.2x0.02) / R31

=19 people

T-Shirts= (R28885.2x0.03) / R20

 =43 People

Public phone= (R28885.2x0.01) / R0.36

=802 units

To brake even we have to carry 177 cars for 1st option, 289 cars for 2nd option, 912 people for
take away café 62 people for factory shop and 802 units to be consumed.

Monthly target

The monthly target=R35000

Monthly expenses =R28885.2+35000

=R6388502

Car Wash:

Car-Wash 1st option = (R63885.2x0.2) / R32.51

= 393 cars

Car-wash 2nd option= (R63885.2x0.42) / R41.90

= 640cars

Take away café:

Sandwiches and wrap:

Nicoise tuna = (R63885.2x0.05) / R5.13

=623 people

Tandoori wrap= (R63885.2x0.05) / R5.50

=580 people

Break fast: = (R63885.2x0.05) / R7.60

= 420 People
Take away with salad= (R63885.2x0.1) / R16.25

=393 People

Factory shop

Traditional clothes= (R63885.2x0.02) / R31

=41 people

T-Shirts= (R63885.2x0.03) / R20

=95 People

Public phone= (R63885.2x0.01) / R0.36

=1775 units

Then to meet the monthly profit target ofR35000 the business has to carry 1033 cars, 2016
people for take away café,136 people for factory shop and 1775 units to be consumed .

CONTINGENCY PLAN

Demand too high

If the demand is higher than expected, I have to consider a Partnership with a reliable person.
As this can bring in extra cash to fund the business expansion or I have to apply for another loan
from the bank so that I can expand my business to other two nearest locations.

Demand too low

If the demand is less than expected, The key to achieving all the organizations goals lies
in determining the needs and wants of various target markets and in so doing, delivering
satisfaction more effectively and efficiently than any of the competitors. Therefore all
planning and operations need to be customer oriented. The entire organization, its
managers and employees should be focused on determining and satisfying customers
needs. Thus if needs be the product range carried by the business should change
according to the needs of the customers. For instance the service range of the business
can be diversified and increased to include car sound systems, speakers, amplifiers and
 wheel balancing if these products or service are what the customers say they would
prefer to have in order to improve sales.

I will also offer certain promotional giveaway items, such as car window shades, key
chains and calendars, which will all include the logo of our company. In addition, special
offers will include free flowers, vacuuming and carpet cleaning on certain weekdays and
weekends.

Triple bottom line

Financial benefits

To meet monthly profit target of R35000 the business has to carry out 1033 cars Washing and
Detailing, 2016 people for take away cafe,136 people for factory shop and 1775 minutes for
public phones.

Benefits of my business to the community

Nelspruit people will be the first to be hired, so that unemployment rate in this area can go
down. My business will keep on supporting various community events such as soccer teams and
any other event, So that we can be easily recognized as the most supportive company and it will
bring in many people who otherwise would not come. The business will ensure that the
customer’s vehicles looks new and worth it for a long journey by providing the most detailing at
all times, hence less unnecessary accidents.

Business impact on the Environment

This business may increase traffic on the roads especially at N4 because is the national route
which consist many cars which may causes high car accidents rate in this area and may also
causes parking problems. It may causes uncontrolled noise from people and traffic. Shortage of
water since more water will be required. My business may have a negative impact on land
because of fluids (oil and grease). Containers from the refreshments may slightly increase litter.

Energy Saving

Lighting

Install a solar system that uses energy from the sun for light purposes and low power
consumption appliances.

Use compact fluorescent lights lamps (CFLs) instead of ordinary bulbs.

Switch unnecessary lights off.

 Use low-energy lamps for exterior lighting.

Do not install multiple lights on a single switch.

Heaters

Infrared electric heaters are more efficient.

An oil-filled heater is the safest type of heater.

Kettle

Don't fill up the kettle.

Boil just enough water for your needs.

Electric stove

Use a pressure cooker when preparing food that take a long time to cook.

Buy a stove with a convection oven.

Keep oven doors closed until food is cooked.

Bring foods to the boil on the ''high'' setting and turn down to simmer until cooked.

Clean stove plate reflectors.

Make sure that pots and pans completely cover the stove plates.

Refrigerator

Don't open the door unnecessarily.

Make sure that the seal is intact.

Turn off an empty refrigerator when is not operating.

Let hot food cool down before placing it in the refrigerator.

Defrost refrigerator regularly.

Store foods apart on refrigerator shelves.

LIFEICYCLE OF CAN CONTAINERS.

Collect-a-Can has been collecting cans for 15 years. We understand the recycling
industry, so let us help you do well, while doing good.
 Collect-a-Can is a joint venture between ArcelorMittal South Africa (Africa’s major steel
producer and producer of tinplate for food and beverage cans) and Nampak (Africa’s
largest packaging company and beverage can producer).
We actively work within the community to support recycling initiatives and have a
strong commitment to socio economic empowerment.

Facts about Aluminum Recycling

Discovered in the 1820s, aluminum is the most

abundant metal on earth.
Over 50 percent of the aluminum cans produced are
recycled.
A used aluminum can is recycled and back on the grocery shelf as a new can in as little
as 60 days.
Aluminum is a durable and sustainable metal: two-thirds of the aluminum ever
produced is in use today.
Every minute, averages of 113,204 aluminum cans are recycled.
Making new aluminum cans from used cans takes 95 percent less energy than using
virgin materials.
20 recycled cans can be made with the energy needed to produce one can using virgin
ore.
Recycling one aluminum can saves enough energy to keep a 100-watt bulb burning for
almost four hours or run your television for three hours.
Tossing away an aluminum can wastes as much energy as pouring out half of that can’s
volume of gasoline.
In 1972, one pound of aluminum cans was equivalent to about 22 empty cans. Due to
advanced technology using less material and increasing the durability of aluminum cans,
in 2002, one pound of aluminum cans is equivalent to about 34 empty cans.
The average employee consumes 2.5 beverages each day while at work.
An empty aluminum can is worth about one cent.

Protecting the environment

Litter, particularly from discarded food and beverage packaging, is a major contributor to
unhealthy infestations and urban decline.

From 1993 to 2006, approximately 750 000 tons of used beverage cans have been recovered in
Southern Africa. Apart from the huge amount of landfill that has been saved, the living
environment of all Southern Africans has been improved substantially.

Recycling protects the environment by:

Reducing the use of raw materials

Reducing the impact of landfill on the environment
 Reducing air pollution, less iron-ore and oxygen that generates CO2 is used
Reduction in energy because less energy is required to use recovered cans than to
produce steel from virgin materials
The reduction of unsightly and unhealthy litter - particularly in pristine areas and living
environments.

Aluminum can recycling provides many environmental, economic and community benefits to
individuals, communities, organizations, companies and industries.

Environmental Benefits

Recycling aluminum cans saves precious natural resources, energy, time and money.
Aluminum cans are unique: within 60 days, a can is recycled, turned into a new can and
back on store shelves.
Aluminum is a sustainable metal and can be recycled over and over again.
In 2007, 54 billion cans were recycled, saving the energy equivalent of 15 million barrels
of crude oil—America’s entire gas consumption for one day.

Economic Benefits

The aluminum can is the most valuable container to recycle and is the most recycled
consumer product in the U.S. today.
Each year, the aluminum industry pays out over $800 million dollars for empty
aluminum cans — that’s a lot of money that can go to organizations like Habitat for
Humanity, the Boy or Girl Scouts of America or even a local school. Money earned from
recycling cans helps people help themselves and their communities. Recycling helps
build new homes, pays for a group trip, supports a project or buys a lunch!
Today it is cheaper, faster and more energy-efficient to recycle aluminum than ever
before. The aluminum can is 100 percent recyclable and can be recycled indefinitely.
The can remains the most recyclable of all materials.
Other types of aluminum, such as siding, gutters, car components, storm window frames
and lawn furniture can also be recycled.
Aluminum has a high market value and continues to provide an economic incentive to
recycle. When aluminum cans are recycled curbside, they help pay for community
services.

Community Benefits

Aluminum can recycling enables charitable organizations and groups to earn funds to
further local projects. The money earned enhances programs, communities and
improves the quality of people’s lives. From a local can drive to raise money for school
improvements, to a Boy or Girl Scout troop “Cans Into Cash” competition to pay for
camp, recycling is used all over the country to help others.
 A perfect example of this is the Cans for Habitat program. Through a national
partnership between the Aluminum Association and Habitat for Humanity International,
aluminum cans are recycled via a network of drop-off locations to raise money for
Habitat for Humanity to build decent, affordable housing with low-income families. Just
by recycling a can once destined for the landfill, you are keeping our local environment
clean, providing a needed resource for the aluminum recycling process, and most
importantly, helping provide local housing to those in need. It’s a win-win for the
individual, community, business, industry and the environment.

WASTE MANAGEMENT AND GLOBAL WARMING

Collect-a-Can’s efforts in the recovery of steel beverage cans help municipalities, who are
feeling the brunt of financial infrastructure and space pressures, to reduce the volume for
landfill sites – thereby also benefiting the tax payer.

Litter is substantially reduced because used cans are recovered from public places and roads.
Previous estimate indicate that can litter has been reduced from 8% of all litter to less than
0.5%

Collect-a-Can not only encourages the recycling of cans, but also strives for all waste
management and recycling from the source.

The Recovery Process:

Pricing:

Collectors are paid for the cans they collect, but prices are determined by three different
processes:

1. Where practical, cans are collected (at a lower price) from collectors

2. Better prices are offered for collectors to deliver to our branches

3. Best prices are offered to collectors to deliver their baled cans to our branches

Assistance:

Bags: These can be supplied by Collect-a-Can. A typical Collect-a-Can bag will hold about
30kg of loose cans (approximately 1000 cans).
Baling assistance: Balers may be loaned to collectors who can supply ten tons or more
cans per month (please check with your nearest branch).
Transport assistance: Please check with your nearest branch the availability of transport
to have your cans collected, as well as the price you will get when Collect-a-Can collects
from you.
How Aluminum Are Cans Made?

How many pieces make up an aluminum can?

How Cans are Made

1. Cup Forming — the process starts with a coiled aluminum sheet which is fed through a
press that punches out shallow cups.
2. Redrawing & Ironing — Cups are fed into an ironing press where successive rings
redraw and iron the cup and reduce sidewall thickness to achieve a full-length can. The
bottom is domed to obtain strength required to withstand internal pressure.
3. Trimming — Cans are spun as a cutting tool trims the rough shell from the inside.
4. Cleaning — The cans are cleaned and pre-treated for decoration and inside coating with
the following steps:
1. Pre-clean with water rinse
2. Clean with commercial cleaner
3. Cold water rinse
4. Conditioning
5. Cold water rinse
6. Deionized water rinse
7. Drying
5. Printing & Varnishing — Cans are rolled against a rubber cylinder to print up to four
colors simultaneously, then moved to another station where a clear protective
overvarnish is applied.
6. Bottom Varnishing — Cans are moved past an applicator that applies a protective
varnish to the bottom.
7. Baking — Cans wind through a conveyor in an oven to dry the printing.
8. Inside Spraying — A specially selected coating is sprayed on the inside of the cans.
9. Baking — Cans are conveyed through a tunnel oven that bakes and cures the inside
coating.
10. Necking and Flanging — Cans are necked-in at the top to reduce can diameter and
flanged to accept the end.
11. Light Tester — clean cans are cycled through a light tester that detects pin holes and
rejects defective cans.
12. Palletizing — after final inspection cans are palletized for shipments to the customer.

End-Making

1. Stamping — Ends are stamped out of pre-coated aluminum coil. Compound is added to
assure a perfect seal between can and end at the customer’s plant.
2. Rivet Making, Scoring and Tabbing — Ends are fed through a high precision press
where rivet making, scoring and tabbing occur in consecutive operations.
3. Shipping — Ends are bagged and placed on skids for shipment to the customer.
Can Recycling Process

How Is Aluminum Can Recycled?

Beverages packaged in aluminum cans are purchased by millions of consumers around the
world each day. They pop the top, hear the familiar hiss and down their favorite drink. But,
then what? Where does the can go after you toss it into the recycling bin?

1. Two out of every three cans produced in the United States begin the recycling process at
local recycling centers, community drop-off sites, charity collection sites, reverse
vending machines or curbside pick-up spots.
2. Aluminum cans from these sources are then gathered at large, regional scrap processing
companies. There, they condense the cans into dense, 30-pound briquettes or 1,200-
pound bales and ships them to aluminum companies for melting.
3. At the aluminum companies, the condensed cans are shredded, crushed and stripped of
their inside and outside decorations through a burning process. Then, the potato chip-
sized pieces of aluminum are loaded into melting furnaces, where the recycled metal is
blended with new, virgin aluminum.
4. The molten aluminum is then poured into 25-foot long ingots that weigh over 30,000
pounds. The ingots are fed into rolling mills that reduce the thickness of the metal from
20 inches to sheets one-hundredth of an inch thick.
5. This metal is then coiled and shipped to can makers, who produce can bodies (the side
of a can is the same thickness as a human hair!) and lids. They, in turn, deliver cans to
beverage companies for filling.
6. The new cans (stocked with your favorite canned beverages, of course) are ready to
return to store shelves in as little as 60 days, only to go through the entire recycling
process again!

Making new steel from scrap benefits the environment in many ways. It saves:

1. Iron ore - Natural resource.

2. Energy for:-
Mining the ore
Transporting the ore to the steel mill;
Processing the ore to iron;
Reducing air and other pollution.

Cans can be melted on their own or mixed in with other steel scrap. The paint layer on the
outside of the can burns away and the Aluminium in the can end contributes to the steel
melting process. Aluminium, being exothermic, contributes slightly to the energy requirements
for the steel melting process. Aluminium is an integrated element in the steel making process
and is used in the refining process to produce "clean" steel.
The Detinning Process

About 60 000 tons of tin-bearing scrap per year are recovered from can manufacturers and can
fillers. Once the tin has been stripped from the steel, more than 36 000 tons of high-grade tin is
recovered for re-melting per year.

Collect-a-Can's de-tinning plant at Vanderbijlpark is one of three major plants of its kind in the
world.

Baled de-tinning Process

In this process, once the scrap is delivered:

It is moved on a conveyor belt to a weigh hopper, then compressed into standardized

bales of 220kg. On a single-shift basis, this plant can process about 1500 tons per
month.
The bales are then placed in rows of "baskets" by an automated crane and submerged in
the caustic solution.
The tin is stripped from the tin scrap and then plated onto cathode plates through an
electrolytic process.
The 80% pure tin deposits (in the form of tin oxide) are stripped from the cathode plates
and packed into drums, and sold for melting and re-use.
The bales, now prime high-grade steel scrap, are rinsed and dispatched to a steel
producer for re-melting.

Loose de-tinning process

The whole process is almost non-polluting with minimal waste. The caustic solution is
continuously recycled in a closed loop and is never discarded. In general, insignificant
atmospheric pollution is caused. Foam from the electrochemical process acts as a
blanket holding in heat and fumes. Resulting sludge is disposed of via a registered toxic
waste company. The 99% pure steel, suitable for the most critical new application, that
is recovered, saves precious iron-ore reserves, energy, transport and additives. Tin and
tin oxides are also recovered and re-entered into the industrial cycle.
Loose tinplate scrap is delivered from can makers, fed into a revolving drum, and
submerged in caustic solution for four hours. During this time the tin is stripped
electrolytic ally from the steel substrate and stays behind in the caustic solution
The solution is then pumped to settling tanks and thereafter to the cathode tank.
Here it is also electrolytically plated onto cathode plates. The cathodes plates are placed
in a furnace where the tin is melted off the cathodes and the 99% pure tin is then
channeled for casting into anodes.
The loose, clean scrap steel is conveyed away for re-melting. About 250 tons of scrap is
processed a month (on a single-shift basis).
Tin sludge Processing
 In this process tin sludge is received by road delivery.
The sludge is pumped into the de-tinning tank and caustic is added (25%) to the solution
The sludge is then agitated and pumped to the tank farm where it is again agitated and
left to settle for a period of approximately four days, after which the plating solution is
pumped to the plating solution tank.
The tin is now electrolytically plated onto the cathode plates.
The cathode plates are transferred to the furnace where the tin is melted out and cast
into anodes, ready for selling to a customer.
Approximately 20 tons of pure tin are recovered per annum.
CONCLUSION

The car wash project is not as complex as many other projects and it do not require technical
expertise. All it will require from the beneficiaries is commitment and the love of what they will
be doing, washing cars. If they can be able to achieve this, the project will be able to achieve its
desired goal of creating employment, alleviating poverty and creating young responsible
entrepreneurs.

The company's strategy will be to position itself among the leading competitors and compete
on quality, reliability, convenience, customer service and, lastly, on price. By developing a high
quality image and reputation Smart & Shine can maintain premium pricing and still become the
preferred car wash in the area.
Floor plan for factory shop and take away cafe