bus 202 auto clean(report)2
TRANSCRIPT
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Dear Mr. Muhit Sarkar
I write to request for a small business loan of TK 1,000,000 for the start-up of my business. urbusiness is a !ew "ar #ashin$ "ompany %irst time here in &an$la'esh as (uto "lean "ar #ash.
ur primary tar$et market for this business will be the market )ar owners near the area of our )ar wash
who will stop by to )lean their lo*e' )ars an' automobiles. These tar$ete' )ustomers are mainly
lo)ate' on the +ro$oti Saroni oa' near &ashun'hara ate.
ur maor )ompetitors are (uto tunin$, (ftab "ar wash an' Dhaka )ar wash be)ause they are operatin$
in the same business en*ironment with us an' are also intereste' in the same )ustomers/ but our
)ompetiti*e e'$e is that they 'o not operate in the same s)ale of operation with us be)ause of their
mo'ern equipments an' epertise. +art of our )ompetiti*e e'$e o*er the aforementione' )ompetitors,
in the first two23 years of our operation/ is to only spe)iali4e in the "ar #ashin$ 'epartment.
The total total in*estment nee'e' for the startup of this business is TK 2,000,000, but our equity
)ontribution is TK 500,000 whi)h is 256 of the loan require' an' the rest 256 by another sin$le
in*estor. Therefore, we nee' the balan)e of TK 1,000,000 from your bank as loan with an interest rate of
206 to be repai' within nineteen173 months after an epe)te' moratorium of fi*e53 months.
The loan require' will enable us a)quire the ne)essary washin$ equipments, sto)k our in*entory, pay
staff salary an' take )are of our operatin$ a)ti*ities an' epenses for four83 months. The loan will also
help me meet with my tar$ets, whi)h are to $enerate a $ross profit of TK22,000,000, at the en' of the
first two23 years of our operations.
(lso atta)he' with this letter is a )opy of my business plan, to ba)k up the loan request. +lease feel free
to )onta)t me at my 'ire)t mobile number9 ::01;
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Table of "ontents9
1.>e)uti*e Summary
2.&usiness an' Des)ription
?.+ro'u)t an' Ser*i)e
8.Mana$ement
5.%inan)ial +lan
;.&usiness >n*ironmental an' Market (nalysis
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(uto "lean "ar #ash
>e)uti*e Summary
Auto Clean is going to be a dynamic car washing firm that will provide automatic car care
service to the members of the Baridhara-Bashundhara community. The firm will be situated
near the Bashundhara gate beside the Progoti Saroni Road. t will e!ceed e!pectations
providing prominent services to its customers. And its customers are the local community
including "S#$ #B%s students & faculties.
This firm will be financed by its ' owners & an investor. (e are pledging )'* of the
company stoc+ and loo+ing for an investor to collect rest of the stoc+ ,)'* and the rest
,'* by /SBC Ban+ Bangladesh. So$ Auto Clean is going to be a partnership
organi0ation. t will be dedicated to offer the highest 1uality car wash service at a
reasonable cost.
Auto Clean will have a strong management team. (e$ the five partners of Auto Clean$ will
loo+ after five different departments of that firm. n return$ we will divide income e1ually
after paying 2* revenue to our investor.
3ur e!clusive research indicates that the inclement climate of 4ha+a city will support year-
round sales. 5urther$ Auto Clean6s location and mar+eting campaign will attract the local
residents$ university students$ faculty and the businesses. Auto Clean hope to be
succeeded as it will be near to its target customers. 7oreover$ we have no true competitor
to challenge our firm. There are some small car repairing shops & petrol pumps which give
car washing services. These services are limited to outdated tunnel and hand-based wash
whereas Auto Clean boasts of automatic$ touchless & spot-free washing systems.
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&usiness Des)ription
wnership
As we told$ Auto Clean will be created as a partnership organi0ation. t will be owned by
five partners. They are- 2. Rubayath "amibur Ra00a+
). Aminur Rasul
8. A0i0ul /a+im
9.7r.: '.7r.;
There is also an investor who will invest )'* of the company stoc+ and will get 2*
revenue in return. Then the owners will divide their net revenue e1ually.
The &usiness
Auto Clean will establish its first location beside the Progoti Saroni Road$ which is the
busiest street in 4ha+a. There will be a canteen and AT7 booth ad
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The +ro'u)t Ser*i)e3
3ur goal is to provide speciali0ed car care service according to our customer%s need. (e
have researched what customers want or desire actually and have designed our service to
fulfill their wishes. (e will also maintain a program to customi0e our service for the
upcoming future. The following chart encloses our firm%s service & its 1uality.
&ran' !ame Auto Clean car wash
Mission Statement Clean your car within a minuteSer*i)e @arity nterior wash$ ?!terior wash or 4etailing.
Auality Sophisticated high pressure water pump$ foaming agent$
roller brush$ vacuum cleaner etc.
The "ustomers
Auto Clean is targeting three main groups of customers> individual car owners$ car
dealerships$ local businesses of that community. The surrounding area is 1uite affluent$
9* of the residents earn over T@.' a year. Conse1uently$ they have nice cars and
want them to loo+ nice. There are a lot of car dealerships and showrooms within a mile
which will re1uire car washing services for the various fleets. 7oreover$ "S# & #B%s
students also have personal cars. Cars need to get washed. astly$ there are many
different local businesses that have company cars and that re1uire clean appearances.
Maor oals
There are only four ma
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Board of Directors
Rubayath N.R
(Finane!
A"inur Rasul
(Aounting!A#i#ul $a%i" (&'erating!
r.)
(ar%eting!
r.*
($R!
+u'er,isor
Wor%er Wor%er
Wor%er Wor%er
Wor%er Wor%er
-uar
-uar
-uar -uar
9. To enlarge the service for )9 hours.
Maor be)ti*es
The ob
2. To get at least ' cars everyday
). To get ' regular customer in a month
8. To maintain a modest$ steadily growing net profit margin
9. To obtain a very high profit margin.
The mission of Auto Clean is to provide ultimate car care e!perience to its customers$
focusing all of its energy and resources on customer satisfaction and value while providing
owners and employees an e!cellent reward.
Mana$ement Team
Auto Clean will be maintained strongly by its owners. 3wners will be the directors of five
departments of that firm. 3nly the operating director will have a supervisor and there will be
si! wor+ers & four guards. The following chart shows detail-
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%inan)ial +lan
The "apital !ee'e'
The company will need total capital of T@.)$ $. Twenty five percent of the re1uired capital will
be collected e1ually from the five entrepreneurs$ and the rest twenty five percent will be financed by
an outside investor for which he will be given ten percent dividend from ?BT ,?arnings before
nterest & Ta! and the rest 5ifty percent to be provided by /SBC BA"@ BA"A4?S/.
7ore detailed information about estimated capital is given below-
Capital "eeded> Ta+aTrade icense '$
Research & 4evelopment 2$$Prepaid and Rent )'$?1uipments 2$$Buildings 8'$5urniture '$3ther Assets 2$D$Cash in /and 8$Total Capital )$$
Three-month proe)tions
2st
7onth )nd
7onth 8rd
7onthTa+a Ta+a Ta+a
e*enue9
Service Revenue ,)E8'E8F)2$
,8'E8'E82F8DG$D'
,'E8'E8F')'$
>penses9
Salaries '$ '$ '$
Rent '$ '$ '$Advertising )$ 2'$ 2$
#tilities 2'$ )$ )H$
nsurance 2'$ 2'$ 2'$
4epreciation ,).'* 8'$ 8'$ 8'$Total ?!penses 2H'$ 2H'$ 2HH$
?arnings Before ncome&Ta!es
)'$ 2G9$D' 88D$
ess> nterest ,2* )$' 2G$9D' 88$D
?arnings Before Ta!es ))$' 2D'$)D' 88$8
ess> Ta!es ,8* I$D' ')$'H8 G$GG
?arnings After Ta!es 2'D' 2))$IG8 )2)$82
ncomes Per 3wner 8$2' )9$'8G 9)$9I)
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Income and Statement
.
Income Statement in Dollars
>@>!B> )2) )28 )29 )2'ross sales '$ I'$ D)$ H'$
"ST % S(C>S
Beginning inventory 8' 8I 9) 98'
Plus goods purchased J manufactured 2) 2I' 2H' 2G
Total oods Available 9D ')' I' I)'
ess ending inventory 8I 9) 98' 99
Total Cost of oods Sold 22 2' 2D 2H'
ross Profit ,oss 2G 82' )D 89'
+>(TI! >+>!S>S
Selling
Salaries and wages 8' 92 9I ')
eneralJAdministrative
Salaries and wages 2) 29 2I 2H
?mployee benefits 9 ' ' IPayroll ta!es ) 8 8 9
nsurance I I D D
#tilities ) ) ) 8
4epreciation & amorti0ation 8 9 9 '
3ffice supplies 2 2 2 2
Travel & entertainment 8 8 8 9
?1uipment maintenance & rental 2 2
nterest 2 2 )
5urniture & e1uipment 8 9 9 '
Total eneralJAdministrative ?!penses 9' ') 'D ID
Total 3perating ?!penses 2)2 29 2'' 2H
Balance Sheet in Dollars
(SS>TS 2012 201? 2018 2015
"urrent (ssets
Cash '9 'D 'G I9
"et accounts receivable 8ID 8GI 9)I 98'
nventory 2DD 2G2 )8 )'
Temporary investment 2) 2) 2) 2)
Prepaid e!penses ) ) ) )Total "urrent (ssets I2) I'H D) D2H
%ie' (ssets
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ong-term investments 9) 98 98 9I
and I'I I'I IH9 D)D
Buildings ,net of depreciation G8 G)H GH8 2$)2
Plant & e1uipment ,net IH I82 I9) I'9
5urniture & fi!tures ,net I2 I' IH D)
Total !et %ie' (ssets )$)D )$8)8 )$9) )$')TT(C (SS>TS )$HH) )$GH2 8$2)) 8$)8H
CI(&ICITI>S
"urrent Ciabilities
Accounts payable )9I )') )'H )DD
Short-term notes )9 )' )I )H
Current portion of long-term notes 29 29 29 2'
Accruals & other payables 29 29 29 29Total "urrent Ciabilities )GH 8' K82) 889
Con$-term Ciabilities
7ortgage HGD G82 GDH 2$)23ther long-term liabilities 998 9H' ')D 'DI
Total Con$-term Ciabilities 2$89 2$92I 2$'' 2$'GD
SE(>ECD>SF >ABIT=
Capital stoc+ 8 8 8 8
Retained earnings G99 GI 2$' 2$DTotal Sharehol'ersF >quity 2$)99 2$)I 2$8' 2$8D
TT(C CI(&ICITI>S G >ABIT= )$HH) )$GH2 8$2)) 8$)8H
The ationale an' assumptions9
3ur plant is situated in a busy area. t is ad
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.
&usiness >n*ironment an' Market (nalysis
S#T (nalysis
Auto Clean has several powerful strengths on which to build$ but our ma
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Threats9
People may not ta+e this new change very soon
t may seem e!pensive to customers
7any company may find it profitable and enter into the business
Tar$et Market Se$ment
Auto clean car wash segments its customers by type of car ownership. (e believe that the
type of car that a person owns says volumes about their driving$ and$ therefore their car
washing and detailing re1uirements.
!ew )ar owners>?verybody wants to own a personal car in this technological age. These
owners ta+e great pride in their cars and will need washing service. The goal with these
customers is to promote regular use of the wash and detail service. The aim is to inform
these customers that Auto clean car wash will +eep their car loo+ing as good as it did the
day they drove it off the lot.
Stu'ents9 Students will be our niche mar+et. They are the early adapters. They always
want to taste new things.
"ar 'ealers>There are many new and used car dealerships within a mile of the proposed
location of Auto clean car wash. These dealerships often use outside car wash services to
detail their vehicles before they are put up for sale.
l'er luury )ar owners>These people have either owned their high-end lu!ury cars for
several years or are unable to afford the e!pense of a new lu!ury car but want the feel of
rela!ed driving. Both of these groups want to +eep their cars in the best shape possible.
Those who have bought second-hand cars will often spend many hours in their cars and
will place high importance on +eeping their cars loo+ing good. These owners will bring their
cars in for regular washes and occasional details.
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Co)al businesses>Some local businesses have fleets of cars and small pic+ups that must
be +ept clean to maintain their company image. These businesses will be loo+ing for a cost
effective$ efficient car washing service to perform this service$ and will prefer to use a time-
consuming car wash service li+e us.
Demo$raphi) (nalysis
n a comprehensive way$ we have analy0ed our consumer%s demographic in 8 parts. These
are-
($e93ne of the mentionable parts of demographic analysis is age. (e have seen that the
people of )' to 9' aged usually use car. So$ they must need our service. 3n the other
hand$ people of more than ' years old use fewer cars than others. The following table
shows the detail---
In)ome (nalysis9(e have also analy0ed our customer%s income.
ncome Range PercentageN) 2)*)$-9$ ))*9$-I$ 8*I$-H$ 2'*H$-2$ 28*O2$ H*
))upation9(e have targeted our customers which have a variety of occupation. Such as
businessman$ e!ecutive$ service holder$ teacher$ student etc.
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an$e +er)enta$e
N) years '*)2-8 )I*82-9 9'*92-' 2D*O' D*
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3ccupation PercentageBusinessman 28*?!ecutive 2'*Service /older 9'*
Students 2D*Teacher 2*
(e boast of our service that will be more desirable than those of available services. 5or
your better understanding$ let%s consider the following comparison between our service and
those of our competitors>
Topics Auto Clean Competitors2. Process (e will wash car through an
automatic process.They wash car manually.
). 7achine (e will import machines fromBei
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(e went through field research and concluded that the difference between Auto base car
wash MS Competitors>
&enefits (uto &ase "ar wash (uto
tunin$
(ftab
)ar
)lean
Dhaka
)ar
wash
Time 'J' )J' 8J' 9J'
"leanness 'J' 8.'J' 8J' ).'J'
Shiny 9J' 8J' ).'J' ).'J'
+arkin$ lot 2 cars 8 cars ) cars ) cars
+romotion9
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Car Wash
AutomaticCar Wash
ManuallyCar Wash
Car Workshop Petrol Pumps
Auto Clean Friends Car Wash
Sales an' Marketin$ +lan
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Through mar+eting communications and advertising process we will have to design a set of
promotional tactics to ensure that customer%s +now about our service and are willing to
see+ it.
&ran' 'e*elopment
As a new mar+eter we will need to develop a brand to create a uni1ue identity. (e will
follow the brand positioning strategy through our outstanding service attributes.
('*ertisements
(all leaflet Pasting leaflets on walls will ma+e passersby ta+e a loo+ at
it which will encourage them to be interested in us.
Brochures accompanied with daily news papers This strategy will
successfully be able to attract customer%s attention.
Cable TM ads (e will contact with local cable TM operators
demonstrate our ads on a regular basis. This is a good way of gaining
TM viewers attention. As direct TM ads are very e!pensive$ operating ads
through cable sounds an economic but effective way of promotion.
Sales promotion
8 time%s trial offer 5or the convenience of our customers we will
give them an opportunity for a three time%s trial offer. n this period
they will offered to have a taste of our services by paying a minimum
registration charge.
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Sales discount (e will offer discounts depending on our overall
mar+et condition and other factors such as profit$ mar+et demand$
etc.
+ubli) relation tools
Campaign is an effective measure of grabbing significant amount of customer attraction.
(e will participate in different local car fairs and car e!hibitions arranged within the target
mar+et 0one and beyond.
peratin$ +lan
Ma)hinery
(e will need some necessary e1uipment to run the firm. Such as---
2. Tunnel it is the mother of the process. Cars will be driven through the tunnel and
inside the tunnel$ program will automatically clean the e!terior of the car by high
pressure water force$ foaming agent and also with roller brushing.
). (ater pump with this e1uipment process will collect the water.
8. enerator n electronic based pro
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I. nterior conditioner machine- t is used for ma+ing shiny inside the car.
Manpower requirement
#nder the operational director there will be a supervisor and the supervisor will have si!
wor+ers and four security guards.
In*entory types
nventory is defined as a stoc+ or store of goods. These goods are maintained on hand at
or near a business6s location so that the firm may meet demand and fulfill its reason for
e!istence. f the firm is a retail establishment$ a customer may loo+ elsewhere to have his
or her needs satisfied if the firm does not have the re1uired item in stoc+ when the
customer arrives. f the firm is a manufacturer$ it must maintain some inventory of raw
materials and wor+-in-process in order to +eep the factory running. n addition$ it must
maintain some supply of finished goods in order to meet demand. n Auto Clean Car (ash
there will some inventories.
2. (ater ,'$ iter I. Bug Cleaner ). Tools D. ?!tra Roller Brush8. 5oaming Agent H. 4iesel9. Conditioner G. Shining Agent'. Triple Color 5oam Brush
Auality )ontrol
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Quality control is a procedure or set of procedures intended to ensure that a manufactured
product or performed service adheres to a defined set of 1uality criteria or meets the
re1uirements of the client or customer. Around the world at any types of business wants
+eep step ahead from its customer or client%s satisfaction. Quality control is such +ind of
process. At the car washing industry clients always want to get the best efficiency.
According to the above terms Auto Clean Car (ashing firm will arrange its product from
Bei
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(ppen'ies
&iblio$raphies
1. "ic+els$ (. .$ 7c/ugh$ =. 7.$ S. 7. ,)' #nderstanding Business ,D th ed.
7craw-/ill rwin "ew ;or+ www.abcd.com
). Philip @otler$ ray Armstrong ,)G-)2 Principles of 7ar+eting ,2) th ed.
Prentice-/all of ndia "ew 4elhi www.phindia.com
3. Stanley B. Bloc+$ eoffrey A. /irt ,)2-)22 5oundations of 5inancial
7anagement ,2)thed. 7craw-/ill rwin "ew ;or+ www.abcd.com
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http://www.abcd.com/http://www.phindia.com/http://www.abcd.com/http://www.abcd.com/http://www.phindia.com/http://www.abcd.com/