Auto Spa Final

YOUR CAR DESRVES MORE
BUSINESS PLAN
Dr. Taniya H. Anwar

Javeria Iqbal
Shahreyar Baber
Syed Abul Hassan
AUTO SPA BUSINESS PLAN
Table of Contents
1. EXECUTIVE SUMMARY..........................................................1
1.1
OBJECTIVES........................................................................................2
1.2
MISSION.............................................................................................2
1.3
KEYS
TO
SUCCESS...............................................................................2
2. COMPANY SUMMARY............................................................3
2.1
START-UP SUMMARY.............................................................................3
2.2
COMPANY OWNERSHIP..........................................................................5
3. PRODUCT & SERVICES OFFERED..........................................6

3.1
SERVICES OFFERED..............................................................................6
3.2
OPERATIONAL PLAN..............................................................................7
3.2.1 SERVICE OPERATION.............................................................................7

3.2.2 BACK STAGE.......................................................................................7
3.2.3 FRONT STAGE.....................................................................................8
4. INDUSTRY ANALYSIS.............................................................9
4.1
POLITICAL
ENVIRONMENT.......................................................................9
4.2
ECONOMIC ENVIRONMENT.....................................................................9
4.3
SOCIO-CULTURAL
4.4
TECHNOLOGICAL ENVIRONMENT.............................................................10
ENVIRONMENT..............................................................9
5. MARKETING ANALYSIS........................................................11
5.1
MARKET SEGMENTATION......................................................................11
5.2
TARGET MARKET SEGMENT STRATEGY...................................................12
5.3
SERVICE BUSINESS ANALYSIS...............................................................12
5.4
COMPETITION
AND
BUYING PATTERNS....................................................12
6. WEB PLAN..........................................................................14
6.1
WEBSITE MARKETING STRATEGY...........................................................14
6.2
DEVELOPMENT REQUIREMENTS.............................................................14
7. MARKETING PLAN & STRATEGY..........................................15

7.1
SWOT ANALYSIS...............................................................................15
7.2
STRENGTHS......................................................................................15
7.3
WEAKNESSES....................................................................................16
7.4
OPPORTUNITIES.................................................................................16
7.5
THREATS..........................................................................................16
7.6
COMPETITIVE EDGE............................................................................16
7.7
MARKETING STRATEGY........................................................................17
8. SALES STRATEGY...............................................................19
8.1
SALES FORECAST...............................................................................19
9. MANAGEMENT.................................................................... 21
9.1
PERSONNEL PLAN..............................................................................21
10. FINANCIAL PLAN..............................................................23

10.1 START-UP FUNDING............................................................................23
10.2 IMPORTANT ASSUMPTIONS....................................................................23
10.3 PROJECTED PROFIT
AND
LOSS..............................................................24
1.
EXECUTIVE SUMMARY
Auto Spa is a dynamic start-up company requiring PKR 5,000,000 to develop

the first ever mobile car washing and detailing company in Pakistan.
Exceptional quality services that will consistently exceed expectations will
establish Auto Spa as the premiere car wash service in Lahore.
The founding four partners, veterans of a number of startups will pledge PKR
500,000 each. The additional PKR 3,000.000 will be from investing partners
seeking a solid yet aggressive investment opportunity.
With over twenty years experience between them, the founding partners
bring a wealth of experience to the company in the areas of marketing,
finance, human resource and operations. They will each handle the day to
day details according to their expertise.
Extensive research indicates Lahore is ready for such a service. As our plans
call for a realistically achievable 500 customers per month (and only 200
customers to breakeven) the business is viable, achieving sustainability
within six months. The mild consistent weather will allow us to operate
unhindered for twelve months per annum.
Auto Spas creative low cost direct marketing campaign and promotions will
attract the discriminating car owners in the target locations in Lahore: DHA,
Gulburg, and Model Town. Direct competition is limited to unskilled
household labor, outdated "tunnel" or friction car washes, and a few
scattered washing systems at petrol pumps. Auto Spa will boast the latest
technology in car washing - along with the highest quality chemical (cleaning
solvents).
Auto Spa will be fully operation within thirty days of securing financing. We
are offering 10% share of Auto Spa for a PKR 3,000,000 investment,
preferably from two investors.
Investors will be paid a 20% dividend from net profit after the first year, per
annum
Investors may sell their investment to any other investor, pending
permission from Auto Spa
Auto Spa will turn a operating profit after four months. After seven months
the business will have recovered initial operating losses. The estimated
annual operating profit before tax is:
Year 1
1,409,25
0
Year 2
Year 3
6,524,240
10,807,300
All partners and investors will be paid via dividend of the net earning per
annum after the first year: Partners: 50%; Investors: 20%
Page 1
Page 2
1.1
OBJECTIVES
To be the premier car detailing brand in Pakistan within 12 months.

Increase from a two units to four units within two years
Customers target 500 REPEAT customers per month within 12 months
Gross margin greater than 70% once in steady state
1.2
MISSION
Auto Spa is dedicated to maintaining the loyalty of our customers by

delivering unrivaled world-class personalized mobile car detailing services in
Pakistan.
1.3
KEYS TO SUCCESS
Developing and maintaining a strong brand
A stellar reputation in the community.
Quality service
Customer loyalty
Flexible service hours
Skilled work force
Page 3
2.
COMPANY SUMMARY
Auto Spa is a dynamic start-up company that will provide exceptional car
detailing services at our client's location. Our services, never before offered
services in Lahore, will exceed our clients expectations, making a true
market maker in the car detailing industry. Auto Spa will provide: exterior
detailing, interior cleaning, and head light restoration. Auto Spa has no true
competitors able to compete with the quality and customer service.
Auto Spa will begin with two mobile units, serving the Defense Housing
Authority, Gulburg and Model Town area. Projected customer growth will
require Auto Spa to have four service units within two years serving Lahore.
Auto Spa has a very achievable target of 500 customers per month.
2.1
START-UP SUMMARY
Total projected start-up expenses are 5.0 million PKR.
Each operating partner will contribute PKR 500,000 for a total of PKR
2,000,000 for a 22.5% share Operating partners are paid a 50%
dividend of net profit.
Each investing partner will contribute PKR 1,500,000 for a total of PKR
3,000.000 for a 5% ownership share each. Investing partners are paid
a 20% dividend of net profit per annum
Page 4
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal
Accountant
Two Mobile Office
2 Water Reclaimation System
Initial Stock of Chemicals & Solvents
Misc Tools
Office Furniture
Office Refurbishment
Office AC
Signage
Office Equipment
50,000
50,000
50,000
500,000
100,000
30,000
50,000
50,000
50,000
20,000
50,000
Marketing & Adverstiing

Technology Development
* Website
* In House Tools
250,000
250,000
Uniforms
100,000
Total Start-up Expenses
1,600,000
Start-up Assets
Page 5
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
1,000,000
2,400,000
3,400,000
Total Requirements
5,000,000
2.2
COMPANY OWNERSHIP
Auto Spa is a partnership compromising of four friends acting as the

operating partners and two investment partners.
OPERATING PARTNERS
Partner
Partner
Partner
Partner
1
1
1
1
with
with
with
with
22.5%
22.5%
22.5%
22.5%
ownership
ownership
ownership
ownership
INVESTMENT PARTNERS
Investment Partner 1 with 5% ownership

Investment Partner 2 with 5% ownership
Page 6
3.
3.1
PRODUCT & SERVICES OFFERED
SERVICES OFFERED
Auto Spa firmly believes we are not just washing cars - but providing a very
unique service to individual who value the appearances and the overall
maintenance of their car. Auto Spa will establish them as the premier car
detailing company in Lahore. We will offer the following services:
Exterior Services:
o Complete exterior detailing including high pressure washing
o Claying the paint
o Removal of all bugs
o Paint correction (scratch removal)
o Cleaning and polishing the finish; all exterior rubber trim and
tires will be dressed to like new condition
o Wheel brush washes
Interior Services:
o Cleaning the interior of the vehicle of all loose material
o Spot treating of carpets, seats miscellaneous upholstery
o Shampooing and deep cleaning with a heated extractor.
Engine Cleaning:
o Remove grease and grim from the engine surface
o A special non-silicone dressing will be applied to ensure a bright
clean surface
Future add-on services may include:
Windshield repair
Paint touch-up
Paintless dent repair
Black trim restoration
Page 7
3.2
OPERATIONAL PLAN
3.3
SERVICE OPERATION
Clients are able to make reservations for service via the website,
mobile application and via a UA number for a specific location and
time. Confirmation is sent via SMS and email.
Daily the team has a work order for the day. The route is created
and required equipment packed.
At the time of service, mobile team of four workers arrives at the
location. The order is confirmed. Additional services orders will be
solicited.
Service is rendered at the site with the required equipment and
materials
The area of service is cleared of all excess water and waste.
Client will confirm the work is completed.
A receipt is printed on the spot and duplicated is sent via mobile wifi
to the head office to enter into our order system the work is
complete.
Feedback is solicited.
Team moves on to the next assignment.
In the event of cancelation from either client of Auto Spa, notification is done
via phone and confirmed with SMS.
3.4
BACK STAGE
Staff: It is important to recruit skilled trainable staff. Every effort will be

made to recruit and maintain staff that can be trained. Monthly reviews will
allow us to keep a check on the quality of the staff
Selection and Relations with Suppliers: We will select an maintain
strong relationships with suppliers of the necessary materials needed. In the
event we are unable to source locally, we will go overseas to find the right
suppliers. Quality of material is very important to the brand.
Relation with Government: Auto Spa will join the Lahore Chamber of
Commerce. This will allow us access to news and information affecting the
business community.
Development of marketing materials: Auto Spa will rely on low cost
direct marketing approach. The development of the materials will be
outsourced. 10% of gross revenue has been allocated for this development.
Auto Spa will also rely heavily on social networking (Facebook, Twitter) to
develop a web presence and build a network of customers who in turn
promote for us.
Page 8

Employee training: Training is fundamental. We will train all staff not just
in cleaning techniques but also in managing and dealing with customers.
Training is reinforced monthly.
Page 9
3.5
FRONT STAGE
Operating hours: The service hours are 8:00 AM to 8:00 PM.

Business Location: We will maintain a service office in Gulburg. Service is
rendered locally at the clients location.
Facilitates & Equipment
Shazore Truck: The truck has been modified to be carry the required
supplies and equipment. Proper signage
Water Tanks in case local water is not available
Environmentally friendly cleaning products would need to be used to

minimalize harmful effects on the planet.
Compressor and high and low power water pressure washer system
Consumable products including polishes, cleaners, compounds,

brushes and cleaning cloths both microfiber and non microfiber.
Vapor steamer
Cleaning and deodorizing equipment
Heated extractor
Water reclamation system: Inflatable pool with a water pump and

storage bins
Future valued added value services: Paint chip repair, headlight restoration,
plastic trim restoration, glass repair, vinyl and leather repair, carpet dying,
odor removal, window tinting
Page 10
4.
INDUSTRY ANALYSIS
Changes in the wider macro-environment may not be as close to the

marketing firms day-to-day operations, but they are just as important. The
main factors making up these wider macro-environmental forces fall into four
groups.
Political factors
Economic factors
Social and cultural factors
Technological advances
4.1
POLITICAL
ENVIRONMENT
Domestic political considerations are a prime concerns when launching any

new business. Political instability and economic conditions go hand in hand.
At the macro level politics policy often drive economic change. Political
policy may also direct effect individual business depending on the nature of
the legislative change. Changes in government may introduce new policy
that may affect the overall business (e.g. water conservation legislation, tax
code changes).
Auto Spa is relatively insulated from political change, as there is nothing in
our business model that is dependent on the political condition or law.
4.2
ECONOMIC ENVIRONMENT
Pakistan has a very volatile economic environment. Between

security/terrorism concerns, instable government, corruption, the economy is
experiences wide swings. The current economy has remained difficult over
the past few years.
The car wash businesses (considered a luxury) typically operate with a
strong state of economic stability. Auto spa will target a discriminating
consumer immune to economic shock; the target is only 500 washes per
month. The fixed operating costs are relatively low. There is very little hard
inventory. Therefore Auto Spa will be able to remain profitable and cash flow
positive at all times despite the state of the economy.
It is vital to monitor economic condition of the country and adjust the
operational model accordingly. Unemployment rate and inflation rate are
two broad indicators of the pulse of the economy.
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4.3
SOCIO-CULTURAL ENVIRONMENT
This is perhaps the most difficult element of the macro-environment to

evaluate. Consumers are constantly evolving - tastes, purchasing behavior
and changing priorities. The type of goods and services demanded by
consumers is a function of their social conditioning and their attitudes and
beliefs. Social change is preceded by changes over time in a societys
cultural values. In Pakistan, there is a huge demand for luxury branded
products. Increasingly customers are asking for time saving convenience.
According to our initial survey, we have seen a great demand of a service
like mobile car wash. Cars are a very important status symbol. Consumers
showing off their status will of course get more value from a beautiful car
than one that looks like every other car. People are willing to pay a premium
for the brand recognition and time savings. With the trend towards
increasing status display, Auto Spa is positioned perfectly.
4.4
TECHNOLOGICAL ENVIRONMENT
Technology is a major macro-environmental variable which has influenced

the development of many of the products. Auto Spa will use the latest
machinery in the washing industry to insure consumers are receiving the
best available service and result. We also use web based technology for
marketing, booking, tracking order status, and customer feedback.
Page 12
5.
MARKETING ANALYSIS
Lahore is the cultural hub of Pakistan with a population of over 8,000,000.

Historically the economy was the center of the Punjab province. Increasingly
businesses are relocating to Lahore due to the relative safety the area
provides. Lahore offers a relatively stable economy. In recent years there
also has been in a migration from the other provinces - both the working
labor class, but also the families of business communities and the upward
mobile middle class professional workers.
Within in this vibrant city, Auto Spa will be focusing on the affluent areas of
Lahore, namely: DHA, Gulburg and Model Town.
Our target is just 500 monthly customers, preferably repeat customers.
We have a three tier product offering:
Basic Services
(Bronze):
Exterior power wash and interior

pressure blower/vacuum. Hand
drying
Plus Services (Silver):
Basic Services plus hand wax
Premium (Gold):
Silver Service plus complete

detailing
5.1
MARKET SEGMENTATION
Detailing is a luxury service. We are limited number of repeat (at least once
a month) customers, and of course welcome random walk-in.
This service is ideally targeting three general kinds of customers: car lovers,
individuals who are concerned about appearances and organizations. Ideal
targets will include:
Luxury car owners
Business owners
High end professionals (e.g. doctors, dentists, actuaries, corporate

executive)
Rent a car services: These business will always have car that need to
be washed and patched up before the next customer comes in. No one
wants to rent a dirty car.
Car dealerships: No one wants to BUY a dirty, smelly car. Smart

dealers will be sure to wash and their cars regularly.
Page 13
Page 14
5.2
TARGET MARKET SEGMENT STRATEGY
Repeat customers are a key to the success of Auto Spa. Auto spa will target
the following groups who are most likely to come back again:
Luxury car owners: Luxury car owners will value their expense
purchase. They are very likely to spend money to not only "clean"
their car - but also protect the car from environmental damage (sun,
rain) with routine treatments. Luxury car owners particularly in
Pakistan like to "show off" their cars.
Business owners: Pakistan has a very brand conscience and "show-off"

mind set. People love to flaunt their possessions. No one does this
more than the typical business man - no matter how small or large.
High end professionals: The up and coming middle class is one of the
largest buying groups of cars. They may not rush out to purchase the
gold packages, but they will find the lower tier packages very
attractive.
5.3
SERVICE BUSINESS ANALYSIS
When reviewing the market, there is no offering a similar service. You can
certainly get your car "washed" but Auto Spa offers more than a wash. Our
main challenge will be to establish our business idea and brand in the eyes
of the customers.
The car washing business in Lahore consists of many small competitors.
Everything from the houseboys and drivers who wash cars at their owners
homes, to few car washing bays are competition for Auto Spa. These
customs are budget conscience - choosing price over quality of service.
They are not our target customer. Auto Spa targets the customers who need
their car cleaned properly - and do see value in spending between PKR 2,500
to PKR 5,000, at least once a month.
5.4
COMPETITION AND BUYING PATTERNS
The relatively mild weather in Lahore will allow for year round sales - with
some time off during the rainy season. The true competition is limited to:
the local petrol pump service stations manned by untrained lay

workers - liberally firing high pressure water at cars
the driver armed with a bucket, a pipe packet of surf and a few rags
the local "chota" who will rub a dirty rag on the car for 20 rupees
Page 15

the owner of the car, equally untrained
Your valuable asset deserves proper attention in its care.

Auto Spa will use the latest in mobile car washing technologies as well as
"imported" branded soaps, shampoos, solvents, and wax.
The service will not only be fast - but convenient. Clients schedule appoints
either by phone or on our interactive web site or mobile application - and
service will be delivered at their specified location.
Price will not be a major issue as the service we are offering is very unique and we are only targeting 500 - 1000 customers in all of Lahore.
Page 16
6.
6.1
WEB PLAN
WEBSITE MARKETING STRATEGY
Our website will serve three purposes:
Client will be able to schedule appointment on the website
Auto Spa will be able to provide on the stop educational material to

help differentiate the brand from others. It is critical for the client to
know why they are paying a premium price - and the value they will
receive.
Auto Spa will be able to push out the latest promotional deals to their
clients
In addition, clients will be able to provide immediate feedback to the

management team.
6.2
DEVELOPMENT REQUIREMENTS
The Auto Spa website will feature simple uncluttered user interface allowing
the user to quickly navigate as required. The site will be responsive in order
to be viewed on different mediums (desktop, laptops, tablets and smart
phones). The website will be outsourced. The manager will maintain the
basic changes periodically.
Page 17
7.
7.1
MARKETING PLAN & STRATEGY
SWOT ANALYSIS
It is crucial to captilaize on the strengths of the business, especially for a new

business. The newness of the business although a risk, is actually a key
strength that is likely to attract customers looking for quality service. It is a
common trend (as in fast food, yoghurt ice cream, coffee shops) for the
upcoming Pakistani population to seek "western" experiences. Auto Spa is
another such idea.
The weaknesses are not critical. Most of the risk is regarding being
unknown. We only need 500 repeat customers to achieve our desired profit
level, and 50% of that for a comfortable profit margin. Five hundred
customers per month out of the tens of thousands of cars on the road is
a tiny percent of people who will be interested in our services.
The threats may be managed as several of them are long term in coming we will manage lead times to plan for amendment to be made. The main
short term threat is from others copying the model. Impeccable service and
exclusivity are fundamental to protecting the brand - and the therefore the
business. Service must never be compromised in any way.
Once the business has been established; we will be in a better position to
understand how to exploit the tremendous potential opportunities. None of
the potential opportunities require large amounts of additional capital so it is
just a question of picking the opportunity with the greatest added value to
the business.
7.2
STRENGTHS
Individualize Service: Hand wash is safer than machine. Each car is

individually assessed and serviced accordingly.
Upscale brand for a service that is required but missing in the market
place.
Training: Although it is specialized training - the time period to learn is

minimal. No shortage of labor.
Relatively low capital costs: Aside from the initial purchase of the
trucks, the additional costs are low, and are necessary only to match
the revenue stream.
Equipment is easily obtainable.
Just a single small office unit is required.
Page 18

High loyalty among repeat customer
Walk-in customers: Provides service during non-booked times
High margin business, particularly in the value added services
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7.3
WEAKNESSES
Brand new market idea - untested
Initially no established client base
No one knows how good of a job our company does
No one knows who we are and that we exist
Staff retention as the work force tends to be casual workers
People (or their servants) can do it themselves; customers must

believe there is a value added
Quick cheaper "copycats" will emerge - must differentiate
7.4
OPPORTUNITIES
Large potential market (initially Lahore)
Ability to franchise to other cities
Increasing time pressure of people, not time to get basic tasks done.
Potential to expand to wash more than just cars (e.g. boats, trucks,
plant equipment, windows, pets)
Strategic alliances (hotel, restaurants) to offer on the spot service to

their customers
Purchase/expand facilities
7.5
THREATS
Legislation: future potential changes in water restrictions
Waste: perception of water wastage
Economy: economic pressures may change people ability to pay or

perception of value.
Competition: established automatic car washes
Replication: business model can be easily copied by competitors
Unpredictable: Low and hard to predict cash flow in the beginning
Page 20
7.6
COMPETITIVE EDGE
We start with a critical competitive edge: there is no direct competitor in

Lahore - or even Pakistan. Our competitors consist of "chotas," drivers, and
a few scattered automatic car washes. Currently, Lahore customers must
plan significant time and/or effort to get a quality car wash. Our positioning is
very hard to match if we maintain our focus on customer service, speed,
quality and reliability.
Another aspect that is critical is the equipment and cleaning materials Auto
Spa will use is top quality industry standard. The product is readily available
- but current users almost always dilute the product or mix in additives to try
to save expenses. Auto Spa will never provide substandard product to our
clients.
Our staff faces our customers every day. It is therefore mission critical our
staff is properly trained in not just their trade - but in customers service
Etiquette as well. We will run monthly workshops for our staff. In order to
minimize turn over - we will also pay our staff a very competitive salary plus bonus for behaviors we wish to incent (e.g. positive feedback on
questionnaires, new customer targets, repeat business targets)
7.7
MARKETING STRATEGY
Product: We will highlight the high quality of our service, tools, materials
and staff in all our promotional materials
Price: Valued based pricing - our price points will be deliberately expensive
as to establish a exclusivity in the brand and service.
Promotion:
Advertising: Targeted and direct. As we know precisely the

neighborhoods we are hunting for customers, we design and
implement smart advertising in those locations. Advertising will
include: direct flyers delivered to the home, placard placed in
restaurants and stores, signage (uniforms, vans, office), This will be a
continuous process, with an initial spend of PKR 500,000 and an
allocation of 10% of revenue.
Cost promotions: A variety of low cost promotional strategies will be

implemented including: offering rewards to customers for referrals,
discounts for bulk purchases, lucky draw promotions
Education & Awareness: It is critical to our business success for our

client to understand the true value of our services. We are not just
washing their car - but protecting a very expensive asset. The client
Page 21

must be informed of the steps we take to ensure their car has the
absolute best car when being serviced.
Partnerships & Relationships: We will partner with top tier hotels and
restaurants to offer services to their clients at reduced rates
Placement: We will be selling our products direct. Our vehicles will bring
our service to the client doorstep. As the there are just three selected
neighborhoods, our vans will be a familiar sight in these areas.
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8.
SALES STRATEGY
Sales in our business are client service. It is repeat business. We will ensure
the following elements are the building blocks of our marketing/sales
strategy:
24 hour service availability
quality service at good value (attendants on duty: 10 - 6, Mon - Sat,

who are always focused on customer satisfaction)
Reliability in all seasons/weather.
Quality equipment
Brand recognized cleaning materials
Well trained professional staff
An aggressive smart cost effective advertising and promotions strategies will

be rolled out to build brand and attract customers.
Pull strategy will include:
Personal communication (referral and word of mouth)
Advertising (internet, outdoor billboard, target direct mail)
Sales promotions (reduce price during introduction months, coupons,

gifts and prize promotions, discounts for referrals)
Publicity and public relations (trade shows, media initiated coverage)
Corporate branding (signage, uniforms)
Team will be trained (and incented) to upsell services
Push strategy includes:
special discounts on annual and semi-annual memberships
8.1
SALES FORECAST
With a new brand entering the market offering a new service, it will time for
Auto Spa to reach their target required customers.
From an operational perspective, we expect to reach a break even point
within three months of the program launch - covering the monthly operating
expenses. By month nine losses from the earlier month are covered.
Modeling sales is at best a guess when introducing a new brand and service.
Responses from initial surveys are promising - yet it is best to take a
conservative approach when modeling sales.
Page 23

Although seasonal weather will play a large factor in the month to month
sales - we have averaged out the fluctuations over the course of the year.
Projected Gross Revenue:
Growth Rate: We have set the initial sales target to a very modest number
starting at 100 sales month. Sales will increase 10% per month for
the first year. After the first year, the last month sales was annualized and
increased by 25% per annum for the next two years sales forecasts.
Direct expenses are assumed to be:
Bronze: 20% of the revenue + PKR 250 per visit for petrol
Silver: 20% % of the revenue + PKR 250 per visit for petrol
Gold: 20% % of the revenue + PKR 250 per visit for petrol
Note: All numbers assume additional service vehicles will be added to

account for additional sales.
Table: Sales Forecast

Sales Forecast
Year 1
Year 2
Year 3
Bronze
Silver
Gold
Total Unit Sales
1,260
705
390
2,355
2,580
1,440
900
4,920
3,200
1,800
1,100
6,100
Unit Prices
Year 1
2,500
4,000
5,000
Year 2
3,000
4,500
6,000
Year 3
3,500
5,000
7,000
3,150,000
2,820,000
1,950,000
7,920,000
7,740,000
6,480,000
5,400,000
19,620,000
11,200,000
9,000,000
7,700,000
27,900,000
Year 1
750
1,050
1,250
Year 2
772
1,175
1,475
Year 3
1,000
1,300
1,700
Unit Sales
Bronze
Silver
Gold
Sales
Bronze
Silver
Gold
Total Sales
Direct Unit Costs

Bronze
Silver
Gold
Direct Cost of Sales

Bronze
Silver
Gold
Subtotal Direct Cost of Sales
Page 24
945,000
740,250
487,500
2,172,750
1,991,760
1,692,000
1,327,500
5,011,260
3,200,000
2,340,000
1,870,000
7,410,000
9.
MANAGEMENT
Auto Spa currently compromised of four partners, one operations manager,

eight staff members (the washing teams) and two support staff. As the
business grows, we will hire staff as required. Periodic specialized skills,
including web development, accounting/bookkeeping, legal, graphic designer
will be hired as contractors as required.
Each member of the management team has specific industry experience that
will apply to their assignment:
Marketing
Human Resource and Training
Finance
Operations
The operations manager will staff the field office. Their primarily
responsibility is to look after the assignments of the day, and manage
customer bookings and complaints. In addition he will support the efforts of
each of the particular partners tasks.
There will be two service teams, each compromised of four workers. The
team lead will be a rotational position, changed once a month.
There will be two support staff: office guard, sweeper/office boy.
We will form an advisory team comprised of seasoned industry veterans who
are interested to support new ventures. The team will meet once a month to
offer general guidance of the developing business.
9.1
PERSONNEL PLAN
The team will be lean - hiring as needed.
Page 25
Annual salaries raises will be 10%per annum

At the start of year 2 (depending on the business development), 2
additional units (8 staffers) will be hired
Partners will not draw a salary. They will be compensated via
annual dividend from the distributable profit.
Specialized skills will be hired on a contract basis as needed.
Table: Personnel
Personnel Plan
Office Manager
Field Workers
Guard
Office Boy
Part Time Accountant
Total People
Year 1
360,000
1,440,000
144,000
120,000
120,000
11.50
Year 2
396,000
3,168,000
158,400
132,000
132,000
19.50
Year 3
435,600
3,484,800
174,240
145,200
145,200
19.50
Total Payroll
2,184,000
3,986,400
4,385,040
Note: In Year 2 two more teams of fields workers (eight in total) will be
added.
Page 26
10. FINANCIAL PLAN

Our business is an "all cash" business that will pay for all variable and fixed
expenses monthly. Thus, we will rapidly build cash flow to finance future
growth. Due to the initial sales slowly launching, there is an initial loss for six
months until sales are build up (as per the break even analysis, 216 must be
washed to covered out monthly operating expenses). Two key issues will
assist Auto Spa in rapidly building capital:
Partners will not receive any payments/dividends for the first year
We will keep very little inventory, supplies are purchased according
to reservations
10.1 START-UP FUNDING

The start-up costs of Auto Spa will consist primarily of the purchase of two
trucks & water reclamation systems, three months of monthly expenses,
initial marketing expenses and inventory. After the initial spend, Auto Spa
will have PKR 1,000,000 cash in the bank for contingencies.
The four partners will invest PKR 500,000 each and two investing partners,
investing PKR 1,500,000 each. The partners will be paid an annual dividend
from distributable profits.
The business will generate a profit after four months to cover operating
expenses. By the seventh month, prior losses will be covered.
BY the end of year two, the Auto Spa balance sheet will show earnings have
exceeded the initial investment.
10.2 IMPORTANT ASSUMPTIONS

The financial plan depends on important assumptions, most of which are
shown in the following table as annual assumptions. From the beginning, we
recognize that variable expenses are critical. Cost of water, sewer and
electricity are our largest expenses. Water is our major concern in Lahore.
Two of the more important underlying assumptions are:
We assume a sound economy, without major recession despite

our modest pricing.
We assume, of course, that there are no unforeseen changes in local
regulations that will interrupt our service.
Page 27
10.3 PROJECTED PROFIT AND LOSS
Projected Revenue See "Sales Forecast" for a detailed breakdown of

projected revenue.
Projected Operating Expenses
o Direct Cost of Services: Chemicals (include soap, wax and salt):
20% of revenue
Variable/Fixed Expenses
Petrol: PKR 250 per client visit (increasing at 10% per annum)
Sales and Marketing and Other Expenses: 10% of Gross Sale
Incentive Pool: 2.5% of Gross Sales
Depreciation of trucks: fixed over five years (PKR 20,000 per month
per truck)
All expenses will increase by 10% per annum
Revenue will increase by the following schedule:

Year 1
Page 28
Year 2
Year 3
Bronze
2,500
3,000
4,000
Silver
4,000
5,000
6,000
Gold
6,000
7,000
8,000
Table: Profit and Loss (Income Statement)

Pro Forma Profit and
Loss
Year 1
Sales
Year 2
Year 3
Direct Cost of Sales
7,920,000
2,172,750
19,620,000
5,011,260
27,900,000
7,410,000
Gross Margin
Gross Margin %
5,747,250
72.57%
14,608,740
74.46%
20,490,000
73.44%
Operating Expenses
Payroll
Sales and Marketing Expenses
Health Insurance
Incentive Pay
Accounting / Legal
Utilities: Electricity
Utilities: Mobile Phone
Utilities: Phone/Net
Utilities: Gas
Utilities: Water
Maintenance of Trucks
Rent
Total Expense
2,184,000
792,000
120,000
198,000
60,000
180,000
72,000
60,000
12,000
60,000
120,000
480,000
4,338,00
0
3,986,400
1,962,000
220,000
490,500
66,000
198,000
158,400
66,000
13,200
132,000
264,000
528,000
8,084,50
0
Profit Before Interest and Taxes
1,409,250
6,524,240
Page 29
4,385,040
2,790,000
242,000
697,500
72,600
217,800
174,240
72,600
14,520
145,200
290,400
580,800
9,682,70
0
10,807,300

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YOUR CAR DESRVES MORE

Dr. Taniya H. Anwar

AUTO SPA BUSINESS PLAN

3. PRODUCT & SERVICES OFFERED..........................................6

3.2.1 SERVICE OPERATION.............................................................................7

TARGET MARKET SEGMENT STRATEGY...................................................12

SERVICE BUSINESS ANALYSIS...............................................................12

WEBSITE MARKETING STRATEGY...........................................................14

AUTO SPA BUSINESS PLAN

7. MARKETING PLAN & STRATEGY..........................................15

10. FINANCIAL PLAN..............................................................23

AUTO SPA BUSINESS PLAN

Auto Spa is a dynamic start-up company requiring PKR 5,000,000 to develop

AUTO SPA BUSINESS PLAN

AUTO SPA BUSINESS PLAN

To be the premier car detailing brand in Pakistan within 12 months.

Auto Spa is dedicated to maintaining the loyalty of our customers by

Developing and maintaining a strong brand

A stellar reputation in the community.

Flexible service hours

Skilled work force

AUTO SPA BUSINESS PLAN

Total projected start-up expenses are 5.0 million PKR.

AUTO SPA BUSINESS PLAN

Marketing & Adverstiing

Total Start-up Expenses

AUTO SPA BUSINESS PLAN

Auto Spa is a partnership compromising of four friends acting as the

Investment Partner 1 with 5% ownership

AUTO SPA BUSINESS PLAN

PRODUCT & SERVICES OFFERED

Future add-on services may include:

Paintless dent repair

Black trim restoration

AUTO SPA BUSINESS PLAN

Staff: It is important to recruit skilled trainable staff. Every effort will be

AUTO SPA BUSINESS PLAN

AUTO SPA BUSINESS PLAN

Operating hours: The service hours are 8:00 AM to 8:00 PM.

Water Tanks in case local water is not available

Environmentally friendly cleaning products would need to be used to

Consumable products including polishes, cleaners, compounds,

Cleaning and deodorizing equipment

Water reclamation system: Inflatable pool with a water pump and

AUTO SPA BUSINESS PLAN

Changes in the wider macro-environment may not be as close to the

Social and cultural factors

Domestic political considerations are a prime concerns when launching any

Pakistan has a very volatile economic environment. Between

AUTO SPA BUSINESS PLAN

This is perhaps the most difficult element of the macro-environment to

Technology is a major macro-environmental variable which has influenced

AUTO SPA BUSINESS PLAN

Lahore is the cultural hub of Pakistan with a population of over 8,000,000.

Exterior power wash and interior

Plus Services (Silver):

Basic Services plus hand wax

Silver Service plus complete

Luxury car owners

High end professionals (e.g. doctors, dentists, actuaries, corporate

Car dealerships: No one wants to BUY a dirty, smelly car. Smart

AUTO SPA BUSINESS PLAN

AUTO SPA BUSINESS PLAN

TARGET MARKET SEGMENT STRATEGY