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Soapy Rides will be providing customers with three services: exterior car washing, interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate.
Soapy Rides' 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.
Soapy Rides will target three main groups of customers:
Individual car owner and leasers, Car dealerships, and Local businesses.
The company soapy rides has a very strong, experienced and professional management team. With each member working in their area of specialization we have every aspect of the business covered.
Jaspreet Singh will be: Owner/Operator with 35% ownership and will be responsible for buying, customer sales and fittings. Varun narain will be: Co-owner with 26% ownership and will act as merchandising consultant, employee training and part-time sales. Gaurav Mehra will be: Co-owner with 19% ownership and will act as Operation Manager responsible for payable and receivables, inventory control, in store promotions, billing and sales. Rahul Jha will be: co-owner and working partner with 20% ownership and will act as CRM Manager and Procurement.
Soapy Rides is positioning itself as the premier hand car wash serving the South Delhi area. We have forecasted a 20% market share. By year three the business will have developed a respectable yearly net profit.
2000000 1500000 1400000 1200000 1100000 1000000 sales gross margin net profit 400000 200000 0 year 1 year 2 year 3 250000
The objectives for Soapy Rides Car Wash and Detail Service are: To be viewed as a premium car wash and detail service in South Delhi. Maintain a very high gross profit margin. Maintain a modest, steadily growing net profit margin. Expand to two locations after third year of operation.
The mission of Soapy Ride is to provide top-quality washing and detail service for luxury car owners in South Delhi will work to keep employees satisfied in order to maintain impeccable customer service.
Company Ownership The company will be solely owned by
JHA , VARUN NARAIN, GAURAV MEHRA, JASPREET SINGH, of the prominent
CMS family. We felt NFC, Delhi would be a perfect location for a car wash service.
S T A R T UP
250000 200000 200000
50000 0 0 EXPENCES ASSETS INVESTMENTS LOANS
Start-up Expenses Legal Stationery etc. Brochures Consultants Insurance Rent Research and Development Expensed Equipment Signs Building Materials Building Labor To t a l S t a r t - u p E x p e n s e s Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets To t a l A s s e t s To t a l R e q u i r e m e n t s Rs8,7000 Rs2500 Rs1,0000 Rs10,0000 Rs19,9500 Rs30,0000 Rs5000 Rs4000 Rs4500 Rs00 Rs2000 Rs1,2000 Rs3000 Rs4,1000 Rs7000 Rs1,2000 Rs1,0000 Rs10,0500
Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
Rs10,0500 Rs19,9500 Rs30,0000
Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Rs11,2500 Rs8,7000 Rs00 Rs8,7000 Rs19,9500
Liabilities and Capital
Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Rs0 Rs0 Rs0 Rs0 Rs0
Planned Investment Investor 1 Investor 2 Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Rs30,000 Rs0 Rs0 Rs0 Rs30,0000 (Rs10,0500) Rs19,9500
Total Capital and Liabilities Total Funding
Soapy Rides will provide three services to its customers:
Car washing (exterior) Car cleaning (interior) Car detailing
Market Analysis Summary
The car wash will be based in NFC, NEW DELHI. This area has a number of benefits in terms of the market that it will provide for the business Many people in the neighborhood own and/or lease new cars and place great value on their cars and how they look.
New car owners Older luxury car owners Sports car owners Lifetime owners Dealerships Local businesses
Year 1 Potential Customers New Car Owners Growth
Year 5 CAGR
Older Luxury Car Owners
Sports Car Owners
Lifetime Owners New and Used Car Dealerships Total
TARGET MARKET SEGMENT STRATEGY
Year 1 Potential Customers New Car Owners Older Luxury Car Owners Sports Car Owners Lifetime Owners New and Used Car Dealership s Total Growth 10% 7,200 7,920 8,712 9,583 10,541 Year 2 Year 3 Year 4 Year 5 CAGR 10.00%
7,475 8,596 18,700 20,570
TARGET MARKET SEGMENT STRATEGY
The strategy behind Soapy Rides target segmentation is to attract customers who will be repeat users and will frequent the business in the typically quiet times for a car wash business Soapy Rides will target people who will tend not to be restricted to these busy times. Business owners (new car owners) tend to be very busy people, but are often able to make their own hours. Retired people (older luxury car owners) are not restricted by typical work schedules so will be able to frequent the car wash during the week. Dealerships will need cars detailed and washed regardless of the time of the day and week. This will supply a constant flow of traffic. Businesses will need their fleet cars washed during the week during regular business hours.
STRATEGY AND IMPLEMENTATION SUMMARY
The key differentiator for Soapy Rides Car Wash is our team and business and personal connections within the NFC neighborhood. For this reason, the sales and marketing focus will be on a one-toone basis, with the emphasis on gaining loyal and repeat customers as "friends" of the business. Competitive Edge Sales Strategy Sales Forecast
car delearship details
business fleet washes end user detail interior wash
0 year 1 year 2 year 3
Year 1 Unit Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Unit Sales Unit Prices Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details 1,760 2,050 770 129 615 494 5,818 Year 1 Rs150.00 Rs90.00 Rs80.00 Rs1400.00 Rs100.00 Rs700.00 2,288 2,665 1,001 193 923 642 7,712 Year 2 Rs150.00 Rs100.00 Rs90.00 Rs1450.00 Rs100.00 Rs750.00 2,974 3,465 1,301 290 1,384 963 10,376 Year 3 Rs150.00 Rs120.00 Rs90.00 Rs1500.00 Rs100.00 Rs800.00 Year 2 Year 3
Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Total Sales Rs26,4000 Rs18,4500 Rs6,1600 Rs18,0600 Rs6,1500 Rs34,5800 Rs34,3200 Rs26,6500 Rs9,0090 Rs27,9850 Rs9,2250 Rs48,1500 Rs44,6160 Rs41,5740 Rs11,7120 Rs43,4250 Rs13,8380 Rs77,0400
Rs109,8000 Rs155,3390 Rs232,2040
Direct Unit Costs Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Direct Cost of Sales Full Wash Exterior Wash Interior Clean End User Detail Business Fleet Washes Car Dealership Details Subtotal Direct Cost of Sales
Year 1 Rs07 Rs04 Rs03 Rs30.00 Rs07 Rs30
Year 2 Rs08 Rs04.5 Rs03.5 Rs35.0 Rs07.5 Rs35.0
Year 3 Rs09.0 Rs05.0 Rs04.0 Rs40.00 Rs08 Rs40.00
Rs1,2320 Rs8200 Rs2310 Rs3870 Rs4310 Rs1,4820 Rs4,5830
Rs1,8300 Rs2,6770 Rs1,1990 Rs1,7320 Rs3500 Rs5210 Rs6760 Rs1,1580 Rs6920 Rs1,1070 Rs2,2470 Rs3,8520 Rs6,9940 Rs11,0470
Personnel Plan Year 1 Owner Car Washers Admin/Sales Total People Total Payroll Rs180,000 Rs30,2400 Rs13,4400 0 Year 2 Rs30,0000 Rs43,3120 Rs15,0000 0 Year 3 Rs40,0000 Rs51,1740 Rs22,0000 0
The following plan outlines the financial development of Soapy Rides. The business will be initially financed by a personal investment by CMS GROUP 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 Mark retains control over the direction of the company.
Break even analysis
10000 5000 0 0 -5000 -10000 70 140 210 280 350 420 490 560 630 700 770
Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost
Rs18.87 Rs0.79 Rs7,641
PROJECTED PROFIT AND LOSS
600000 500000 400000 300000 200000 100000 0 year 1 year 2 year 3 profit yearly
2500000 2000000 1500000 1000000 500000 0 year 1 year 2 year 3 gross margin
Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Year 2 Year 3
Rs109,8000 Rs155,3390 Rs232,2040 Rs4,5830 Rs00 Rs4,5830 Rs6,9940 Rs11,0470 Rs00 Rs00
Gross Margin Gross Margin %
Rs105,2180 Rs148,3450 Rs221,1570 95.83% 95.50% 95.24%
Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Rs61,6800 Rs2,6000 Rs2,0700 Rs00 Rs3,3250 Rs1,8000 Rs4,8000 Rs15,4200 Rs0 Rs91,6950 Rs13,5230 Rs15,5920 Rs0 Rs3,2040 Rs10,3180 9.40% Rs88,3120 Rs1,5500 Rs2,0700 Rs00 Rs3,5000 Rs1,8000 Rs5,5000 Rs22,0780 Rs00 Rs124,8100 Rs23,5350 Rs25,6050 Rs0 Rs5,8840 Rs17,6510 11.36% Rs113,1740 Rs1,7000 Rs2,0700 Rs00 Rs3,7500 Rs1,8000 Rs6,0000 Rs28,2940 Rs00 Rs156,7880 Rs64,3700 Rs66,4400 Rs0 Rs16,3610 Rs48,009 20.68%
PROJECTED CASH FLOW
100000 t b l 50000 fl
Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs00 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs93,3300 Rs132,0380 Rs197,3740 Rs13,0970 Rs21,9020 Rs32,4700 Rs106,4270 Rs153,9400 Rs229,8430 Year 2 Year 3
Rs106,4270 Rs153,9400 Rs229,8430
Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Rs61,6800 Rs33,0520 Rs94,7320 Rs88,3120 Rs46,8370 Rs135,1490 Rs113,1740 Rs67,7430 Rs180,9170
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs94,7320 Rs11,6950 Rs20,3950 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs135,1490 Rs18,7910 Rs39,1860 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs0 Rs180,9170 Rs48,9270 Rs88,1120
Projected Balance Sheet
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Year 2 Year 3
Rs20,3950 Rs3,3730 Rs6680 Rs1,0000 Rs25,4350
Rs39,1860 Rs4,7720 Rs1,0190 Rs1,0000 Rs45,9760
Rs88,1120 Rs7,1330 Rs1,6090 Rs1,0000 Rs97,8540
Rs10,0000 Rs2,0700 Rs7,9300 Rs33,3650
Rs10,0000 Rs4,1400 Rs5,8600 Rs51,8360
Rs10,0000 Rs6,2100 Rs3,7900 Rs101,6440
Liabilities and Capital
Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Rs3,0970 Rs0 Rs0 Rs3,0970 Rs3,9170 Rs0 Rs0 Rs3,9170 Rs5,7160 Rs0 Rs0 Rs5,7160
Long-term Liabilities Total Liabilities
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
Rs30,0000 (Rs10,0500) Rs10,3180 Rs30,2680 Rs33,3650
Rs30,0000 Rs2680 Rs17,6510 Rs47,9190 Rs51,8360
Rs30,0000 Rs17,9190 Rs48,0090 Rs95,9290 Rs101,6440
Ratio Analysis Year 1 Sales Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales 0.00% Year 2 41.47% Year 3 49.48% Industry Profile 3.00%
10.11% 9.21% 7.02% 2.00% 1.97% 1.58% 3.00% 1.93% 0.98% 76.23% 88.69% 96.27% 23.77% 11.31% 3.73% 100.00% 100.00% 100.00% 9.28% 0.00% 9.28% 90.72% 7.56% 0.00% 7.56% 92.44% 5.62% 0.00% 5.62% 94.38%
8.70% 9.50% 26.40% 44.60% 55.40% 100.00% 29.30% 27.80% 57.10% 42.90%
100.00% 100.00% 100.00%
Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover
95.83% 86.59% 0.91% 12.32%
95.50% 84.13% 0.74% 15.15%
95.24% 74.45% 0.56% 27.72%
0.00% 68.20% 1.50% 2.70%
8.21 8.00 9.28% 44.68% 40.53% Year 1 9.40% 34.09%
11.74 11.48 7.56% 49.11% 45.40% Year 2 11.36% 36.83%
17.12 16.84 5.62% 67.10% 63.33% Year 3 20.68% 50.05%
1.53 0.88 57.10% 3.40% 8.00%
4.88 57 5.45 11.67 27 3.29
4.88 64 8.30 12.17 27 3.00
4.88 62 8.41 12.17 25 2.28
n.a n.a n.a n.a n.a n.a
Debt to Net Worth Current Liab. to Liab. 0.10 1.00 0.08 1.00 0.06 1.00 n.a n.a
Liquidity Ratios Net Working Capital Interest Coverage Rs22,338 Rs42,059 Rs92,139 0.00 0.00 0.00 n.a n.a
Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 0.30 9% 6.91 3.63 0.00 0.33 8% 10.26 3.24 0.00 0.44 6% 15.59 2.42 0.00 n.a n.a n.a n.a n.a
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