Soapy Rides is a prominent hand car wash serving the East Meadow, Long Island, NY community.

Soapy Rides will

be run by Mark Deshpande, of the prominent Deshpande family. The Deshpande family has been serving the Long
Island area with a car repair business and property development /management for over 30 years. Mark will be
leveraging the incredible good will and brand recognition of the Deshpande family name to quickly gain market
penetration.

The Business

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. Most are
trying to compete on price alone. 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. Hiring the best
employees is cost effective because it decreases HR costs associated with turnover and other employee costs.
Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the
customers. Study after study proves that a happy employee is far more likely to provide the highest level of customer
service compared to an employee who is not happy and feels that they are being taken advantage of.

The Customers

Soapy Rides will target three main groups of customers: individual car owner and leasers, car dealerships, and local
businesses. The surrounding area is quite affluent, 40% of the residents earn over $70,000 a year. Consequently,
they have nice cars and want them to look nice. There are five different car dealerships within a three-mile radius
which will require car washing services for the various fleets. Lastly, there are many different local businesses that
have company cars and that require clean appearances.

Management

The strength of Mark's experience and his family's name equity and assistance is Soapy Rides' competitive edge as
well as a significant asset. Mark has been involved in the family's car repair business for the last ten years. He has
worked his way through the organization and has been the manager for the last five years overseeing operations of
$1.2 million annually. Before the family venture, Mark received his MBA from Cornell University. With 30 years
invested in the community, the Deshpande family name has generated significant value as a fair, active member of
the community. Lastly, Soapy Rides will be able to leverage several of the Deshpande's for their business expertise.

Soapy Rides is positioning itself as the premier hand car wash serving the Long Island area. Mark has forecasted a
20% market share. The business will generate a very high gross margin and a modest net margin after year one
and comfortable margin after year three. By year three the business will have developed a respectable yearly net
profit.

1.1 Objectives
The objectives for Soapy Rides Car Wash and Detail Service are:

1. To be viewed as a premium car wash and detail service in East Meadow.

2. Maintain a very high gross profit margin.
 3. Maintain a modest, steadily growing net profit margin.
4. Expand to two locations after third year of operation.
1.2 Mission
The mission of Soapy Ride is to provide top-quality washing and detail service for luxury car owners in East Meadow,
NY. Soapy Rides will work to keep employees satisfied in order to maintain impeccable customer service

Company Summary
The company is solely owned by Mark Deshpande and will be funded by an initial personal investment. Soapy Rides
is New York State registered C corporation.

2.1 Company Ownership

The company will be solely owned by Mark Deshpande. Mark has been in the car industry all his life, having grown
up in the family car repair business. He came across the location in East Meadow purely by accident and he felt it
would be a perfect location for a car wash service. 

2.2 Start-up Summary

The start-up expenses for Soapy Rides will be financed by Mark Deshpande, from the profits he made in selling his
part of the family car repair business. The property on Hempstead Road will be leased in April 2001 for a minimum of
three years, with the option to extend the lease for another three years after that.

Mark is working with the family lawyer to set up incorporation and to discuss lease issues before the business is
launched. He is working with a local graphic designer to develop a logo, letterhead, and company
brochures. Although Mark has been in the car repair business, he has not been in the wash and detailing business,
which is a very different service (quick turnaround per car is incredibly important). For this reason he is working with
an acquaintance to set up the system that will ensure efficient service even during peak usage.

Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for the business will be
approximately $200 per month and will be paid by direct debit on a monthly basis. Expensed equipment includes
three high-power water pumps, two industrial vacuum cleaners, two computer terminals, and one cash register. All of
the equipment will be depreciated over three years.

The location was previously used as a quick stop automobile service shop, so it is set up to move vehicles quickly
through the premises, but does not have all the necessary systems in place to host a car wash and detail facility. The
services of a contracting company will be sought to convert the use of the facility and to improve the customer waiting
room facilities.

Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $400
Brochures $450
Consultants $0
Insurance $200
Rent $1,200
Research and Development $300
Expensed Equipment $4,100
Signs $700
Building Materials $1,200
Building Labor $1,000
Total Start-up Expenses $10,050
Start-up Assets
Cash Required $8,700
Start-up Inventory $250
Other Current Assets $1,000
Long-term Assets $10,000
Total Assets $19,950
Total Requirements $30,000

Start-up Funding
Start-up Expenses to Fund $10,050
Start-up Assets to Fund $19,950
Total Funding Required $30,000
Assets
Non-cash Assets from Start-up $11,250
Cash Requirements from Start-up $8,700
Additional Cash Raised $0
Cash Balance on Starting Date $8,700
Total Assets $19,950
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $30,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $30,000
Loss at Start-up (Start-up Expenses) ($10,050)
Total Capital $19,950
Total Capital and Liabilities $19,950
Total Funding

Services
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 East Meadow, New York. This area has a number of benefits in terms of the market
that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000
annually. Many people in the neighborhood own and/or lease new cars and place great value on their cars and how
they look. There are a large number of car dealerships in the area--five within three miles of the proposed location for
Soapy Rides.

4.1 Market Segmentation

Soapy Rides segments its customers by type of car ownership. We believe that the type of car that a person owns
says volumes about their driving, and, therefore their car washing and detailing requirements.
 1. New car owners: Owners of newer cars are most likely to use a hand car washing service. These owners
take great pride in their cars and will bring them often to the wash and detail 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
Soapy Rides will keep their car looking as good as it did the day they drove it off the lot.
2. Older luxury car owners: These people have either owned their high-end luxury cars for several years or
are unable to afford the expense of a new luxury car but want the feel of relaxed driving. Both of these groups
want to keep 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 keeping their cars looking good. These owners will
bring their cars in for regular washes and occasional details.
3. Sports car owners: These people are often younger or middle-aged men and will regard the look of their
car as important. They will also pride themselves on the look of their car and will have their car hand washed (at
least) weekly. These drivers will have an occasional detail, but will keep their cars so clean the detail will not be
necessary very often.
4. Lifetime owners: Many of these people have owned their cars for more than five or six years, and are more
likely to be women. They are attached to their cars as friends and though it may be more sensible for them to
purchase a new car, they will bring their car in for a wash occassionally, just when the car is dirty. They like
their cars to look presentable, and want to keep it in good shape but are not tied up in the look of their car. For
this reason, they will not have a detail carried out on their car unless they are selling it.
5. Dealerships: There are five new and used car dealerships within three miles of the proposed location of
Soapy Rides. These dealerships often use outside car wash services to detail their vehicles before they are put
up for sale. In addition, there are fifteen other car dealerships within a seven mile radius of Soapy Rides.
6. Local businesses: Some local businesses have fleets of cars and small vans that must be kept clean to
maintain their company image. These businesses will be looking for a cost effective, efficient car washing
service to perform this service, and will prefer to use a car wash service during the week rather than during
weekends, like the general public.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
New Car Owners 10% 7,200 7,920 8,712 9,583 10,541 10.00%
Older Luxury Car
15% 12,500 14,375 16,531 19,011 21,863 15.00%
Owners
Sports Car Owners 15% 6,500 7,475 8,596 9,885 11,368 15.00%
Lifetime Owners 10% 17,000 18,700 20,570 22,627 24,890 10.00%
New and Used Car
7% 9 10 11 12 13 9.63%
Dealerships
Total 12.28% 43,209 48,480 54,420 61,118 68,675 12.28%
4.2 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. It will not be difficult to attract customers
during the summer months and on the weekends, the weekdays however, especially in the winter, people will not
think about having their cars washed. For this reason, 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.
4.3 Service Business Analysis
The hand car washing business in East Meadow consists of many small competitors. Everything from local children
raising money for their youth group on a Saturday by cleaning cars, to the automatic car wash machines, are
competition for Soapy Rides. However, these two alternatives aim to meet the needs of the price-conscious
individuals who are choosing the service simply so they do not have to clean the car themselves. Soapy Rides on the
other hand, targets the quality-conscious individuals who value their car enough to spend $10-$15 per week to
make it look good.

4.3.1 Competition and Buying Patterns

There is one other hand car wash shop in East Meadow. 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 Soapy Rides 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. The businesses that Soapy Rides targets will be more cost conscious, so prices will be
approximately 30% less for these customers to promote volume usage.

Strategy and Implementation Summary

The key differentiator for Soapy Rides Car Wash is Mark Deshpande and his business and personal connections
within the East Meadow neighborhood. For this reason, the sales and marketing focus will be on a one-to-one basis,
with the emphasis on gaining loyal and repeat customers as "friends" of the business. Soapy Rides, therefore, will
depend on word-of-mouth advertising for the immediate community.

5.1 Competitive Edge

Soapy Rides' competitive edge will be Mark Deshpande and the quality of the family name in the East Meadow area.
As mentioned, the family has been in the car business for over 30 years, and has an excellent reputation and a
myriad of both business and personal contacts. In addition, Mark has put a great deal of emphasis on creating a
system that is both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum.

5.2 Sales Strategy

Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of Soapy Rides, and that all
employees care about the care and upkeep of each vehicle. We must be aware that there are low switching costs in
the car washing industry, so we have to work hard to develop and keep repeat customers.

5.2.1 Sales Forecast

The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are seasonal in this
industry, tending to be higher in the warmer summer months, and to drop off in the winter. However, we will aim to
flatten sales across the sales cycle by targeting segments that will want to keep their cars clean and looking good
year round.
Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Interior Clean 770 1,001 1,301
End User Detail 129 193 290
Business Fleet Washes 615 923 1,384
Car Dealership Details 494 642 963
Total Unit Sales 5,818 7,712 10,376
Unit Prices Year 1 Year 2 Year 3
Full Wash $15.00 $15.00 $15.00
Exterior Wash $9.00 $10.00 $12.00
Interior Clean $8.00 $9.00 $9.00
End User Detail $140.00 $145.00 $150.00
Business Fleet Washes $10.00 $10.00 $10.00
Car Dealership Details $70.00 $75.00 $80.00
Sales
Full Wash $26,400 $34,320 $44,616
Exterior Wash $18,450 $26,650 $41,574
Interior Clean $6,160 $9,009 $11,712
End User Detail $18,060 $27,985 $43,425
Business Fleet Washes $6,150 $9,225 $13,838
Car Dealership Details $34,580 $48,150 $77,040
Total Sales $109,800 $155,339 $232,204
Direct Unit Costs Year 1 Year 2 Year 3
Full Wash $0.70 $0.80 $0.90
Exterior Wash $0.40 $0.45 $0.50
Interior Clean $0.30 $0.35 $0.40
End User Detail $3.00 $3.50 $4.00
Business Fleet Washes $0.70 $0.75 $0.80
Car Dealership Details $3.00 $3.50 $4.00
Direct Cost of Sales
Full Wash $1,232 $1,830 $2,677
Exterior Wash $820 $1,199 $1,732
Interior Clean $231 $350 $521
End User Detail $387 $676 $1,158
Business Fleet Washes $431 $692 $1,107
Car Dealership Details $1,482 $2,247 $3,852
Subtotal Direct Cost of Sales $4,583 $6,994 $11,047
5.3 Milestones
The following table outlines the important milestones in the planning and implementation of Soapy Rides.

Milestones
Milestone Start Date End Date Budget Manager Department
Complete Business Plan 2/1/2001 5/1/2001 $0 ABC Department
Sign Rental Contract 3/20/2001 3/20/2001 $475 Mark Owner
Convert Premises 4/1/2001 4/30/2001 $0 Contractors Contractors
Hire Car Wash Staff 4/20/2001 4/20/2001 $200 Mark Owner
Hire Admin Staff 4/20/2001 4/20/2001 $200 Mark Owner
Open for Business 5/1/2001 5/1/2001 $0 Staff Staff
Distribute Flyers 4/28/2001 5/5/2001 $75 Friends Friends
Press Release 4/29/2001 4/29/2001 $25 Mark Owner
Follow-up on Press
4/30/2001 4/30/2001 $0 Mark Owner
Release
Totals $975

Management Summary
Mark Deshpande is the sole owner and manager of Soapy Rides. In addition, he will be helped (on an unofficial
basis) by his father, Barry Deshpande. Barry has over 30 years experience as an entrepreneur, both in the car
business and in property development and management.

Mark will also have the assistance of John Shine, the family accountant, in creating a long-term strategic vision for
the company. John is a family friend and has worked with the Deshpande family for 23 years. He has worked with
hundreds of small- and medium-sized businesses during his career.

6.1 Personnel Plan

Since car washing is a seasonal business, with business increasing in the warm summer months, and being busier
on the weekends than during the week, Soapy Rides will rely on both temporary and part-time help. The company will
hire one full-time car wash/detail specialist and one full-time car wash specialist when it opens for business. Although
it will rely on temporary and part-time help, quality will not be compromised, since all washers and detailers will
receive thorough training. The company will also hire an administrative assistant who will assist Mark with paperwork
and act as a receptionist.
Personnel Plan
Year 1 Year 2 Year 3
Owner $18,000 $30,000 $40,000
Car Washers $30,240 $43,312 $51,174
Admin/Sales $13,440 $15,000 $22,000
Total People 0 0 0
Total Payroll $61,680 $88,312 $113,174

Financial Plan
The following plan outlines the financial development of Soapy Rides. The business will be initially financed by
a personal investment by Mark Deshpande 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. In year three, it is hoped that the company will be able to open a second location. It is envisioned that
an outside loan or equity funding will be sought at that time.

7.1 Important Assumptions

The financial projections for Soapy Rides are based on the following assumptions. These assumptions are thought to
be quite conservative, as are the financial forecasts.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
7.2 Break-even Analysis
The table and chart below show the monthly break-even analysis calculations for Soapy Rides.

Break-even Analysis
Monthly Units Break-even 423
Monthly Revenue Break-even $7,974
Assumptions:
Average Per-Unit Revenue $18.87
Average Per-Unit Variable Cost $0.79
Estimated Monthly Fixed Cost $7,641
7.3 Projected Profit and Loss
The following Profit and Loss table illustrates income and expenses monthly for the first year, and annually for the
next two years.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $109,800 $155,339 $232,204
Direct Cost of Sales $4,583 $6,994 $11,047
Other $0 $0 $0
Total Cost of Sales $4,583 $6,994 $11,047
Gross Margin $105,218 $148,345 $221,157
Gross Margin % 95.83% 95.50% 95.24%
Expenses
Payroll $61,680 $88,312 $113,174
Sales and Marketing and Other Expenses $2,600 $1,550 $1,700
Depreciation $2,070 $2,070 $2,070
Leased Equipment $0 $0 $0
Utilities $3,325 $3,500 $3,750
Insurance $1,800 $1,800 $1,800
Rent $4,800 $5,500 $6,000
Payroll Taxes $15,420 $22,078 $28,294
Other $0 $0 $0
Total Operating Expenses $91,695 $124,810 $156,788
Profit Before Interest and Taxes $13,523 $23,535 $64,370
EBITDA $15,592 $25,605 $66,440
Interest Expense $0 $0 $0
Taxes Incurred $3,204 $5,884 $16,361
Net Profit $10,318 $17,651 $48,009
Net Profit/Sales 9.40% 11.36% 20.68%
7.4 Projected Cash Flow
The following Cash Flow table illustrates that if Soapy Rides meets projected sales, it will have positive cash flow
after half a year of operations.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $93,330 $132,038 $197,374
Cash from Receivables $13,097 $21,902 $32,470
Subtotal Cash from Operations $106,427 $153,940 $229,843
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $106,427 $153,940 $229,843
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $61,680 $88,312 $113,174
Bill Payments $33,052 $46,837 $67,743
Subtotal Spent on Operations $94,732 $135,149 $180,917
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $94,732 $135,149 $180,917
Net Cash Flow $11,695 $18,791 $48,927
Cash Balance $20,395 $39,186 $88,112
7.5 Projected Balance Sheet
Soapy Rides' balance sheet illustrates a healthy financial position for this new company. The monthly estimates are
included in the appendix.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets
Current Assets
Cash $20,395 $39,186 $88,112
Accounts Receivable $3,373 $4,772 $7,133
Inventory $668 $1,019 $1,609
Other Current Assets $1,000 $1,000 $1,000
Total Current Assets $25,435 $45,976 $97,854
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $2,070 $4,140 $6,210
Total Long-term Assets $7,930 $5,860 $3,790
Total Assets $33,365 $51,836 $101,644
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $3,097 $3,917 $5,716
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $3,097 $3,917 $5,716
Long-term Liabilities $0 $0 $0
Total Liabilities $3,097 $3,917 $5,716
Paid-in Capital $30,000 $30,000 $30,000
Retained Earnings ($10,050) $268 $17,919
Earnings $10,318 $17,651 $48,009
Total Capital $30,268 $47,919 $95,929
Total Liabilities and Capital $33,365 $51,836 $101,644
Net Worth $30,268 $47,919 $95,929
7.6 Business Ratios
The following table contains important ratios for the car wash industry, as determined by the Standard Industry
Classification (SIC) code, 7542.

Ratio Analysis
 Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 41.47% 49.48% 3.00%
Percent of Total Assets
Accounts Receivable 10.11% 9.21% 7.02% 8.70%
Inventory 2.00% 1.97% 1.58% 9.50%
Other Current Assets 3.00% 1.93% 0.98% 26.40%
Total Current Assets 76.23% 88.69% 96.27% 44.60%
Long-term Assets 23.77% 11.31% 3.73% 55.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 9.28% 7.56% 5.62% 29.30%
Long-term Liabilities 0.00% 0.00% 0.00% 27.80%
Total Liabilities 9.28% 7.56% 5.62% 57.10%
Net Worth 90.72% 92.44% 94.38% 42.90%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.83% 95.50% 95.24% 0.00%
Selling, General & Administrative
86.59% 84.13% 74.45% 68.20%
Expenses
Advertising Expenses 0.91% 0.74% 0.56% 1.50%
Profit Before Interest and Taxes 12.32% 15.15% 27.72% 2.70%
Main Ratios
Current 8.21 11.74 17.12 1.53
Quick 8.00 11.48 16.84 0.88
Total Debt to Total Assets 9.28% 7.56% 5.62% 57.10%
Pre-tax Return on Net Worth 44.68% 49.11% 67.10% 3.40%
Pre-tax Return on Assets 40.53% 45.40% 63.33% 8.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 9.40% 11.36% 20.68% n.a
Return on Equity 34.09% 36.83% 50.05% n.a
Activity Ratios
Accounts Receivable Turnover 4.88 4.88 4.88 n.a
Collection Days 57 64 62 n.a
Inventory Turnover 5.45 8.30 8.41 n.a
Accounts Payable Turnover 11.67 12.17 12.17 n.a
Payment Days 27 27 25 n.a
Total Asset Turnover 3.29 3.00 2.28 n.a
Debt Ratios
Debt to Net Worth 0.10 0.08 0.06 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $22,338 $42,059 $92,139 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.30 0.33 0.44 n.a
Current Debt/Total Assets 9% 8% 6% n.a
Acid Test 6.91 10.26 15.59 n.a
Sales/Net Worth 3.63 3.24 2.42 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month 10Month 11 Month 12
Unit Sales
Full Wash 0% 90 130 170 190 190 185 135 135 120 120 140 155
Exterior Wash 0% 90 130 185 220 230 220 180 170 150 150 160 165
Interior Clean 0% 40 50 50 55 60 65 70 80 80 85 75 60
End User Detail 0% 3 5 7 10 12 12 14 9 11 14 15 17
Business Fleet Washes 0% 25 40 55 60 60 55 55 55 55 50 50 55
Car Dealership Details 0% 15 17 20 26 32 40 56 45 56 60 60 67
Total Unit Sales 263 372 487 561 584 577 510 494 472 479 500 519
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month 10Month 11 Month 12
Full Wash $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00
Exterior Wash $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00 $9.00
Interior Clean $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00
End User Detail $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00
Business Fleet Washes $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Car Dealership Details $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00
Sales
Full Wash $1,350 $1,950 $2,550 $2,850 $2,850 $2,775 $2,025 $2,025 $1,800 $1,800 $2,100 $2,325
Exterior Wash $810 $1,170 $1,665 $1,980 $2,070 $1,980 $1,620 $1,530 $1,350 $1,350 $1,440 $1,485
Interior Clean $320 $400 $400 $440 $480 $520 $560 $640 $640 $680 $600 $480
End User Detail $420 $700 $980 $1,400 $1,680 $1,680 $1,960 $1,260 $1,540 $1,960 $2,100 $2,380
Business Fleet Washes $250 $400 $550 $600 $600 $550 $550 $550 $550 $500 $500 $550
Car Dealership Details $1,050 $1,190 $1,400 $1,820 $2,240 $2,800 $3,920 $3,150 $3,920 $4,200 $4,200 $4,690
Total Sales $4,200 $5,810 $7,545 $9,090 $9,920 $10,305 $10,635 $9,155 $9,800 $10,490 $10,940 $11,910
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month 10Month 11 Month 12
Full Wash 0.00% $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
Exterior Wash 0.00% $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Interior Clean 0.00% $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30
End User Detail 0.00% $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Business Fleet Washes 0.00% $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70
Car Dealership Details 0.00% $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Direct Cost of Sales
Full Wash $63 $91 $119 $133 $133 $130 $95 $95 $84 $84 $98 $109
Exterior Wash $36 $52 $74 $88 $92 $88 $72 $68 $60 $60 $64 $66
Interior Clean $12 $15 $15 $17 $18 $20 $21 $24 $24 $26 $23 $18
End User Detail $9 $15 $21 $30 $36 $36 $42 $27 $33 $42 $45 $51
Business Fleet Washes $18 $28 $39 $42 $42 $39 $39 $39 $39 $35 $35 $39
Car Dealership Details $45 $51 $60 $78 $96 $120 $168 $135 $168 $180 $180 $201
Subtotal Direct Cost of
$183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
Sales

Personnel Plan
Month Month Month
Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9
10 11 12
Owner 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Car Washers 0% $2,240 $2,240 $3,360 $3,360 $3,360 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240 $2,240
Admin/Sales 0% $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120 $1,120
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860

General Assumptions
Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Long-term
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest Rate
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $4,200 $5,810 $7,545 $9,090 $9,920 $10,305 $10,635 $9,155 $9,800 $10,490 $10,940 $11,910
Direct Cost of
$183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
Sales
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $183 $252 $328 $388 $417 $432 $436 $387 $408 $427 $445 $483
Gross Margin $4,018 $5,558 $7,218 $8,703 $9,503 $9,874 $10,199 $8,768 $9,393 $10,064 $10,496 $11,427
Gross Margin % 95.65% 95.66% 95.66% 95.74% 95.80% 95.81% 95.90% 95.77% 95.84% 95.93% 95.94% 95.94%
Expenses
Payroll $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860
Sales and
Marketing and $500 $300 $300 $300 $300 $100 $100 $100 $300 $100 $100 $100
Other Expenses
Depreciation $172 $172 $172 $172 $172 $172 $172 $172 $172 $172 $172 $172
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $250 $275 $300 $300 $300 $275 $275 $275 $275 $275 $250 $275
Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Rent $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400
Payroll Taxes 25% $1,215 $1,215 $1,495 $1,495 $1,495 $1,215 $1,215 $1,215 $1,215 $1,215 $1,215 $1,215
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
$7,547 $7,372 $8,797 $8,797 $8,797 $7,172 $7,172 $7,172 $7,372 $7,172 $7,147 $7,172
Expenses
Profit Before
($3,530) ($1,814) ($1,580) ($95) $706 $2,701 $3,027 $1,596 $2,020 $2,891 $3,348 $4,255
Interest and Taxes
EBITDA ($3,358) ($1,642) ($1,407) $78 $878 $2,874 $3,199 $1,768 $2,193 $3,064 $3,521 $4,427
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($1,059) ($454) ($395) ($24) $176 $675 $757 $399 $505 $723 $837 $1,064
Net Profit ($2,471) ($1,361) ($1,185) ($71) $529 $2,026 $2,270 $1,197 $1,515 $2,168 $2,511 $3,191
Net Profit/Sales -58.83% -23.42% -15.71% -0.78% 5.33% 19.66% 21.34% 13.07% 15.46% 20.67% 22.95% 26.79%

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month 10Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $3,570 $4,939 $6,413 $7,727 $8,432 $8,759 $9,040 $7,782 $8,330 $8,917 $9,299 $10,124
Cash from Receivables $0 $21 $638 $880 $1,139 $1,368 $1,490 $1,547 $1,588 $1,376 $1,473 $1,576
Subtotal Cash from
$3,570 $4,960 $7,051 $8,607 $9,571 $10,127 $10,530 $9,329 $9,918 $10,293 $10,772 $11,699
Operations
Additional Cash Received
Sales Tax, VAT,
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $3,570 $4,960 $7,051 $8,607 $9,571 $10,127 $10,530 $9,329 $9,918 $10,293 $10,772 $11,699
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9Month 10Month 11 Month 12
Expenditures from
Operations
Cash Spending $4,860 $4,860 $5,980 $5,980 $5,980 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860 $4,860
Bill Payments $82 $2,437 $1,898 $2,296 $3,595 $2,855 $3,785 $2,885 $2,582 $3,812 $2,899 $3,927
Subtotal Spent on
$4,942 $7,297 $7,878 $8,276 $9,575 $7,715 $8,645 $7,745 $7,442 $8,672 $7,759 $8,787
Operations
Additional Cash Spent
Sales Tax, VAT,
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,942 $7,297 $7,878 $8,276 $9,575 $7,715 $8,645 $7,745 $7,442 $8,672 $7,759 $8,787
Net Cash Flow ($1,372) ($2,338) ($827) $331 ($3) $2,412 $1,885 $1,584 $2,475 $1,621 $3,013 $2,912
Cash Balance $7,328 $4,991 $4,163 $4,494 $4,491 $6,904 $8,789 $10,373 $12,849 $14,469 $17,483 $20,395
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $8,700 $7,328 $4,991 $4,163 $4,494 $4,491 $6,904 $8,789 $10,373 $12,849 $14,469 $17,483 $20,395
Accounts Receivable $0 $630 $1,481 $1,974 $2,458 $2,806 $2,984 $3,089 $2,915 $2,797 $2,994 $3,162 $3,373
Inventory $250 $1,068 $816 $488 $1,101 $684 $1,252 $816 $429 $1,022 $595 $1,151 $668
Other Current Assets $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total Current Assets $9,950 $10,026 $8,287 $7,626 $9,052 $8,981 $12,140 $13,694 $14,717 $17,668 $19,059 $22,795 $25,435
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Accumulated Depreciation $0 $172 $345 $517 $690 $862 $1,035 $1,207 $1,380 $1,552 $1,725 $1,897 $2,070
Total Long-term Assets $10,000 $9,828 $9,655 $9,483 $9,310 $9,138 $8,965 $8,793 $8,620 $8,448 $8,275 $8,103 $7,930
Total Assets $19,950 $19,853 $17,942 $17,108 $18,362 $18,118 $21,105 $22,487 $23,338 $26,115 $27,334 $30,898 $33,365
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $2,374 $1,823 $2,175 $3,501 $2,727 $3,688 $2,800 $2,454 $3,717 $2,767 $3,820 $3,097
Paid-in Capital $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Retained Earnings ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050) ($10,050)
Earnings $0 ($2,471) ($3,832) ($5,017) ($5,088) ($4,559) ($2,533) ($263) $933 $2,448 $4,617 $7,128 $10,318
Total Capital $19,950 $17,479 $16,118 $14,933 $14,862 $15,391 $17,417 $19,687 $20,883 $22,398 $24,567 $27,078 $30,268
Total Liabilities and Capital $19,950 $19,853 $17,942 $17,108 $18,362 $18,118 $21,105 $22,487 $23,338 $26,115 $27,334 $30,898 $33,365
Net Worth $19,950 $17,479 $16,118 $14,933 $14,862 $15,391 $17,417 $19,687 $20,883 $22,398 $24,567 $27,078 $30,268