Mobile Car Wash Business Plan

MOBILE CAR WASH BUSINESS PLAN
Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................3
VISION, MISSION AND OBJECTIVES....................................................................................................4
Vision......................................................................................................................................................4
Mission....................................................................................................................................................4
Objectives................................................................................................................................................4
COMPANY SUMMARY............................................................................................................................5
Description of the business......................................................................................................................5
Ownership...............................................................................................................................................5
Company Structure..................................................................................................................................6
OPERATIONAL STRATEGY AND REQUIREMENTS............................................................................9
Premises..................................................................................................................................................9
Equipment...............................................................................................................................................9
Working Capital.......................................................................................................................................9
Legal Requirements.................................................................................................................................9
Hours of Operation..................................................................................................................................9
MARKETING STRATEGY......................................................................................................................10
Product/Service.....................................................................................................................................10
Price......................................................................................................................................................10
Promotion..............................................................................................................................................11
Place......................................................................................................................................................11
INDUSTRY ANALYSIS...........................................................................................................................12
MARKET ANALYSIS..............................................................................................................................13
Target Market Strategy..........................................................................................................................13
Demand, Competition and Behaviour....................................................................................................13
SWOT Analysis.........................................................................................................................................14
PEST Analysis...........................................................................................................................................15
PRO FORMA FINANCIAL STATEMENTS............................................................................................16
Start-up Costs........................................................................................................................................16
Pro Forma Income Statement................................................................................................................17
Page 1
Mobile Car Wash Business Plan
Pro Forma Cash Flow............................................................................................................................18

Pro Forma Balance Sheet.......................................................................................................................19
Break Even Analysis..............................................................................................................................20
Payback Period......................................................................................................................................20
Page 2
EXECUTIVE SUMMARY
Premier Mobile Wash (PMW) will be a standard and well–equipped mobile car wash company
that will offer a wide range of services that revolve around the car wash industry and other
complementary services. We intend giving our customers every reason to always hire our
services which is why we have customized our services. Basically, our services will involve us
going out to service clients’ needs. PMW will provide three services to its customers namely car
washing (exterior), car cleaning (interior) and car detailing.
Our intention of starting a mobile car wash business is to offer only the above stated services, but
we will not close our doors to diversification (additional services) as long as it does not affect our
core services. Although our core business is mobile car washing, but we will secure a small
office facility in the Central Business District of Harare and will provide mobile car wash
services to clients in and around 20 kilometres radius of Harare Central Business District.
We are quite optimistic that our values and quality of service offering will help us drive our
mobile car wash business to enviable heights and also help us attract the numbers of clients that
will make the business highly profitable. We are a company that will be dedicated to establishing
good business relationship with our clients giving them value for their money and reasons for
them to hire our services over and over again.
Most important to us is our financial success and we believe this will be achieved by good
marketing techniques and offering quality services. We have created financial projections based
on our experience and knowledge of the area. With a start-up expenditure of US$5,200 we can
generate $34,200 in revenue by the end of the first year of business and produce good net profits.
VISION, MISSION AND OBJECTIVES
Page 3
Vision
To become the number one mobile car wash company in the whole of Harare with active
presence in all major cities in Zimbabwe.
Mission
Our mission as a mobile car wash company is to develop a highly successful, profitable all-round
mobile car wash business which provides quality services in our community and to become a
standard for an ideal mobile car wash business not only in Harare but also throughout Zimbabwe.
Objectives
The objectives for the first three years of operation include:
 To create a company whose primary goal is to exceed customer’s expectations.

 To increase the number of clients served by 10% per year through superior service.
 To develop a sustainable start-up business.
 To develop enough cash flow to pay all salaries as well as grow the business.
 To be viewed as a premium car wash and detail service in Harare.
 To maintain a very high gross profit margin.
 To maintain a modest, steadily growing net profit margin.
 To expand to two locations after third year of operation.
 To provide efficient, convenient, superior car wash services to the premium car-owner
segment in Harare.
 To implement effective quality control procedures to ensure the highest quality car
wash services.
Page 4
 To capture the premium car wash segment in Harare.
COMPANY SUMMARY
Description of the business
Premier Mobile Wash (PMW) will be a standard and well–equipped mobile car wash company
that will offer a wide range of services that revolve around the car wash industry and other
complementary services. We intend giving our customers every reason to always hire our
services which is why we have customized our services. Basically, our services will involve us
going out to service clients’ needs. PMW will provide three services to its customers namely car
washing (exterior), car cleaning (interior) and car detailing.
Ownership
We will register our car wash business as a company. A company exists as a formal and legal
entity in its own right. It is separate from its shareholder(s) or owner(s). It’s responsible in its
own right for everything it does and its finances are separate from the personal finances of the
shareholders. Any profit it makes is owned by the company, after it pays Corporation Tax. The
company can then share its profits.
The advantages of registering a business as a company include limited liability to the owners of
the business, ability to raise significant amount of capital and it is also easy to sell and pass own
ownership.
Operating as a company increases trading confidence and credibility. Customers and suppliers
will feel more confident and comfortable doing business with a company. A company will also
be able to qualify to apply for any formal tenders in the market.
Page 5
Company Structure
Board of Directors
CEO
Finance Operations Marketing

Department Department Department
Board of Directors
The board of directors' key purpose is to ensure the company's prosperity by collectively
directing the company's affairs, whilst meeting the appropriate interests of the owners of the
company. They determine the company's vision, mission, they guide and set the pace for the
company’s current operations and future development. The board of directors reviews and
evaluate present and future opportunities, threats and risks in the external environment and
current and future strengths, weaknesses and risks relating to the company. They
determine strategic options, select those to be pursued, and decide the means to implement and
support them.
Chief Executive Officer (CEO)
Page 6
The Chief Executive Officer is responsible for leading the development and execution of the
company’s long-term strategy with a view to creating shareholder value. The CEO’s leadership
role also entails being ultimately responsible for all day-to-day management decisions and for
implementing the company’s long and short-term plans. The CEO is responsible for making
major corporate decisions, managing the overall operations and resources of a company and
acting as the main point of communication between the board of directors and the corporate
operations.
Finance Department
The finance department will be responsible for all the day to day transactional accounting for the
business. This will include the tracking of all transactions and the management of any
government reporting. The finance department is also responsible for management of the
organization’s cash flow and ensuring that there are enough funds available to meet the day to
day payments. This area also encompasses the credit and collections policies for the company’s
customers, to ensure the organization is paid on time and that there is a payment policy for the
company’s suppliers.
Operations Department
The operations department is responsible for handling the operations of the car wash company. It
includes supervisors, car wash attendants, car wash detailing specialists, security guards and
cashiers. They are responsible for the daily operations and ordering of the car wash supplies and
materials. It is the first line of customer service, responsible for washing, cleaning and drying
customer vehicles to a high standard of quality. They are responsible for ensuring impeccable
quality detailing of customer vehicles.
Marketing Department
This department is responsible for finding contracts and clients for the company. It is responsible
for marketing the company and its services through various means which include advertising.
The marketing department has overall responsibility for growing revenue, increasing market
share and contributing to company growth and profitability. The marketing department serves as
Page 7
a beacon for a company, guiding it on which product, pricing, promotional and distribution
strategies to use.
The marketing department is also responsible for market research. Research helps the company
identify car wash market opportunities and gain a better understanding of customer needs. It also
helps them understand competitors’ strengths and weaknesses so they can take action to protect
business with existing customers or win business from weaker competitors.
Page 8
OPERATIONAL STRATEGY AND REQUIREMENTS
Premises
Although our core business is mobile car washing, but we will secure a small office facility in
the Central Business District of Harare and will provide mobile car wash services to clients in
and around 20 kilometres radius of Harare Central Business District.
Equipment
The equipment that we need to run a standard car wash business include brushes, sponges,
buckets, vacuum cleaners, vapour steamers and pressure washers.
Working Capital
Working capital requirements will be funded by the directors of the company.
Inventory requirements are minimal for PMW, consisting primarily of soaps/waxes/polish and
other items used and consumed in the car was process. Inventory will be ordered through
wholesale distributors and only requirements for the following month will need to be on hand at
any given time.
Legal Requirements
We will fully abide by the legal requirements of all relevant statutory bodies like City of Harare
and ZIMRA. In fact, we are currently in the process of registering our business with the
Zimbabwe Revenue Authority (ZIMRA).
Hours of Operation
The car wash will be open daily from 08:00 to 17:00.
Page 9
MARKETING STRATEGY
Our car wash company will attempt to rapidly achieve awareness in Harare about its business in
the first year. To be successful in the car wash business, you should be able to get many orders
frequently. Thus, it is of great importance to have a solid marketing strategy. Our marketing
strategy is based upon the marketing mix, which are the 4 p’s of marketing, which are product
(service), price, promotion and place (distribution).
Product/Service
PMW will be a standard and well– equipped mobile car wash company that will offer a wide
range of services that revolve around the car wash industry and other complementary services.
We intend giving our customers every reason to always hire our services which is why we have
customized our services. Basically, our services will involve us going out to service clients’
needs.
PMW will provide three services to its customers:
 Car washing (exterior)

 Car cleaning (interior)
 Car detailing
Price
The price is very important as it determines our company's profit and hence, survival. We will
use the market prevailing prices which are usually determined by supply and demand. We do not
intend to engage in price wars by charging lower prices as that will reduce our profitability, and
also there are big companies in the market who have the financial ability to elbow out smaller
companies in case of price wars.
Page 10
Promotion
We will have marketing professionals whose job will be to engage potential clients individually,
and to try and win jobs and contracts for our company. Our marketing team will be making
appointments with and travelling to client businesses in Harare when necessary to establish
relationships based on an understanding of the client's needs for car wash. To motivate our
marketing team, we will give them a commission for every job which they get.
Fliers
We will use colourful, informative fliers to increase awareness of our car wash business in
Harare. These fliers will be distributed to random people at shopping malls like Westgate,
Eastgate and Sam Levy. We hope to get potential customers from the distribution of fliers.
Promotional Material
As an extra incentive for customers and potential customers to remember our name, our car wash
plans to distribute coffee mugs, T-shirts, pens and other advertising specialties with the company
logo.
Social Media
We will have active social media accounts on Facebook, LinkedIn, WhatsApp and Twitter, to try
and reach potential clients via the internet. We will join car wash Facebook groups and
WhatsApp car wash groups, to try and find potential clients. This is an effective cost-efficient
means for small companies to find clients.
Place
Although our core business is mobile car washing, but we will secure a small office facility in
the Central Business District of Harare and will provide mobile car wash services to clients in
and around 20 kilometres radius of Harare Central Business District.
Page 11
INDUSTRY ANALYSIS
In Zimbabwe the car wash industry is regarded as one of the industries that accommodate more
of unskilled workers than skilled workers. Simply put, some of the basic services offered by car
wash companies revolve around cleaning, washing and waxing services for motors (cars, trucks,
vans, and trailers etc). In the car wash industry, you will also find customized services such as
full- and self-service car wash services, as well as truck and bus washes and vehicle detailing
services. The industry is open to both small entrepreneurs (neighbourhood car wash) and big-
time investors.
The market for car wash is driven by the purchase of cars and the increase in consumers’
spending – in essence, as the general economy of a country grows, more people will buy cars and
more people will patronize the services of car wash on a regular basis especially if their driving
habits encourage them to do so.
Over and above, car wash businesses all over the world are still enjoying good patronage
particularly if they are well positioned and if they know how to reach out to their target market
(corporates, transporters and individuals etc).
MARKET ANALYSIS
Target Market Strategy
Before choosing a location for our mobile car wash business, we conducted our feasibility
studies and market survey and we were able to identify those who will benefit greatly from our
Page 12
service offerings. Basically, those who will benefit from our service offering are individuals,
businesses and transport companies. They cut across different sectors of the economy.
Demand, Competition and Behaviour
Look around you and you will find that there are more cars that are well washed and maintained,
than those that aren’t these days. Could it be because of the invasion of car wash
companies? Well, perhaps that is the reason. It is true there will always be the need for people to
go out and make ends meet. This may however cause them not to have the luxury of time to
attend to washing the cars (interior and exterior) and Harare residents are not an exception. This
is why most car wash companies have positioned themselves in areas where they can get clients
who have no time at all to see to the maintenance of their vehicles. Many people are however
frustrated with the hassle it takes to have their cars washed. The time it takes to drive to a
downtown carwash and wait for the job to be done just never seems to fit into schedule. People
want the car wash to come to them for convenience sake and also to allow them to burn less fuel.
The level of competition in the car wash industry is highly dependent on the location of the
business as this is a business that demands physical presence in order to attend to customers as
well as compete with other similar businesses in the industry. There is one well known mobile
car wash business in Harare. It is quite new and is trying to compete with automatic car washes
by offering low prices. However, it is not targeting the customers who seek quality cleaning.
The customers who PMW is targeting have their cars washed based on the quality of the
job. 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.
SWOT Analysis
Strengths
Page 13
 Strong management
 Untapped market
 Large labour market (youth/students)
Weaknesses
 Large capital outlay for business start up

 Poor weather/climate – and required promotions programs
 Limited flexibility in pricing
Opportunities
 Unique business model/opportunity for Harare

 Ability to build the loyalty of customers
 First mover advantage
Threats
 Weather fluctuations and seasonal business patterns

 Political instability
 Emergence of new competitors with the same concept
Page 14
PEST Analysis
We understand that our car wash business is affected by Political, Economic, Social and
Technological factors. Below we look at how those external factors affect our business and the
assumptions we have made in making this business plan.
Political
 The location for the proposed site already has the required zoning for the business needs.
 Because of the zoning already in place, there will be limited resistance on the proposal.
Economic
 Reduced discretionary income and spending in light of the economic slowdown, however
the economy is expected to begin rebounding and therefore growth and family income
levels are expected to rise.
 Additionally, other factors (such as the desire for a full-service wash) will outweigh the
resistance by the population.
Social
 There is a growing professional population, PMW’s target market, who will be willing to
spend the money to have their car washed and cleaned.
 The target market is currently growing in Harare.
Technological
 PMW will be purchasing the best technology in the industry, to ensure reduced water
usage and pollution, as well as extending the life of the equipment.
Page 15
PRO FORMA FINANCIAL STATEMENTS

Start-up Costs
Capital expenditure US$
Quantit
Item y Unit Cost Total Cost
Generator (5KVA) 1 $ 1,500.00 $ 1,500.00

Vapour Steamers 2 $ 1,000.00 $ 2,000.00
Pressure Washers 2 $ 485.00 $ 970.00
Vacuum Cleaners 2 $ 250.00 $ 500.00
Buckets 2 $ 5.00 $ 10.00
Brushes 2 $ 5.00 $ 10.00
Sponges 2 $ 5.00 $ 10.00
$ 5,000.00
Capital Expenditure Sub total $ 5,000.00
Cleaning Material for 1 month $ 200.00
Grand Total $ 5,200.00
Page 16
Pro Forma Income Statement

Pro Forma Income Statement 2019/20 2020/21 2021/22
Revenue
Income $34,200 $37,620 $41,382
Cost of goods $0 $0 $0
Gross Profit $34,200 $37,620 $41,382
Operating Expenses
Depreciation $1,000 $1,000 $1,000
Rent $1,200 $1,200 $1,200
Salaries $5,400 $5,400 $5,400
Marketing & Advertising $600 $600 $600
Repairs and Maintenance $800 $800 $800
Water $1,200 $1,200 $1,200
Staff Welfare $600 $600 $600
Cleaning Solutions $2,200 $2,200 $2,200
Total Operating Expenses $8,200 $8,200 $8,200
Net Profit Before Interest and
Tax $26,000 $29,420 $33,182
Interest $0 $0 $0
Net Profit Before Tax $26,000 $29,420 $33,182
Tax (25%) $6,500 $7,355 $8,296
Net Profit $19,500 $22,065 $24,887
Assumptions
 All sales are assumed to be in USD.

 We will be open daily for business
 All capital expenditure is on our account
Pro Forma Cash Flow

Pro Forma Cash Flow
Statement 2019/20 2020/21 2021/22
Opening Balance $0 $27,200 $51,120
Cash Sales $34,200 $37,620 $41,382
Page 17
Subtotal Cash from Operations $34,200 $37,620 $41,382

Additional Cash Received
Start-up Capital $5,200 $0 $0
Subtotal Cash Received $5,200 $0 $0
Cash Expenditures
Cost of goods $0 $0 $0
Operating Expenses $7,200 $7,200 $7,200
Subtotal Spent on Operations $7,200 $7,200 $7,200
Additional Cash Spent
Taxes $0 $6,500 $7,355
Loan Repayment $0 $0 $0
Bank Overdraft Repayment $0 $0 $0
Purchase of Assets $5,000 $0 $0
Subtotal Additional Cash
Spent $5,000 $6,500 $7,355
Net Cash Flow $27,200 $23,920 $26,827
Cash Balance $27,200 $51,120 $77,947
Page 18
Pro Forma Balance Sheet

Pro Forma Balance Sheet 2019/20 2020/21 2021/22
Long Term Assets
Property, Plant & Equipment $5,000 $5,000 $5,000
Accumulated Depreciation -$1,000 -$2,000 -$3,000
Total Long-Term Assets $4,000 $3,000 $2,000
Current Assets
Cash $27,200 $51,120 $77,947
Accounts Receivable $0 $0 $0
Inventory $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $27,200 $51,120 $77,947
TOTAL ASSETS $31,200 $54,120 $79,947
EQUITY AND LIABILITIES
Equity
Share Capital $5,200 $5,200 $5,200
Retained Earnings $19,500 $41,565 $66,452
Total Equity $24,700 $46,765 $71,652
Liabilities
Current Tax Payable $6,500 $7,355 $8,296
Accounts Payable $0 $0 $0
Other Liabilities $0 $0 $0
Total Liabilities $6,500 $7,355 $8,296
TOTAL EQUITY AND
LIABILITIES $31,200 $54,120 $79,947
Page 19
Break Even Analysis
Breakeven Analysis
Breakeven Analysis Value

Revenue $5.00
Variable Cost/$1 revenue $0.00
Fixed Costs/month $683.33
Breakeven point 136.67
If we are only doing the outside, we will need to wash at least 137 cars per month for our
revenue to cover all our costs.
Payback Period
Payback Period Value
Initial Investment $5,200.00
Net Cash flow year
1 $27,200.00
Payback Period 0.19
It will take us 3 months to recover the cost of the initial investment.
Page 20

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MOBILE CAR WASH BUSINESS PLAN

Pro Forma Cash Flow............................................................................................................................18

VISION, MISSION AND OBJECTIVES

The objectives for the first three years of operation include:

 To create a company whose primary goal is to exceed customer’s expectations.

 To develop a sustainable start-up business.

 To be viewed as a premium car wash and detail service in Harare.

 To maintain a very high gross profit margin.

 To maintain a modest, steadily growing net profit margin.

 To expand to two locations after third year of operation.

 To capture the premium car wash segment in Harare.

Description of the business

Finance Operations Marketing

Chief Executive Officer (CEO)

OPERATIONAL STRATEGY AND REQUIREMENTS

Working capital requirements will be funded by the directors of the company.

The car wash will be open daily from 08:00 to 17:00.

PMW will provide three services to its customers:

 Car washing (exterior)

Target Market Strategy

Demand, Competition and Behaviour

 Large labour market (youth/students)

 Large capital outlay for business start up

 Limited flexibility in pricing

 Unique business model/opportunity for Harare

 First mover advantage

 Weather fluctuations and seasonal business patterns

PRO FORMA FINANCIAL STATEMENTS

Generator (5KVA) 1 $ 1,500.00 $ 1,500.00

Capital Expenditure Sub total $ 5,000.00

Cleaning Material for 1 month $ 200.00

Grand Total $ 5,200.00

Pro Forma Income Statement

 All sales are assumed to be in USD.

Pro Forma Cash Flow

Subtotal Cash from Operations $34,200 $37,620 $41,382

Pro Forma Balance Sheet

Break Even Analysis

Breakeven Analysis Value

It will take us 3 months to recover the cost of the initial investment.

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