Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

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3 W. Choice Detailing If it isn t done perfectly it wasn t done W. Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...2 CUSTOMERS...3 DIFFERENTIATORS...6 EXTRAS...7 MARKETING...7 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution We will bring quality car care to the customer s location, and build healthy and reliable relationship with clients at the same time. Inconvenient long waiting lines at the car wash. A mobile car wash service with a wide variety of choices, as well as reliable and flexible scheduling. Customers Differentiators Extras Commercial car dealerships, independent car lot owners, and individual vehicle owners. As a mobile based business, I offer a personalized experience as well as a variety of service choices. Close personal relationships Free trunk organization Interior fragrance Frequent customer rewards program Marketing Start-up Costs Financials & Extras We will utilize fliers, business cards, and social media to market our services. Owner Inv. - (Cash) $ 10,000 Owner Investment (Equipment) $ - Vehicle/equipment Loan $ 45,000 Unsecured Debt/Loan $ 5,000 Equity Investment $ - Total start up costs: $ 60,000 Plan Purpose: Start Up Sales: $ 79, % COGS 22,500 28% Gross profit 57,200 72% Overhead 42,000 53% Pretax income 15,100 19% Tax expense 3,700 5% Owner withdrawals - 0% Net income $ 11,300 14% Personal Fit I have a passion for vehicles and I believe the appearance of one s vehicle is a reflection of one s self. Also, I have multiple years of experience detailing vehicles.

6 PERSONAL FIT Taylor is the proud founder and owner of W. Choice Detailing. He brings top quality car care and value pricing together for what will soon be your favorite car wash service. Taylor is responsible for the overall management of the company. Taylor has more than two years of experience in the car care industry. He also has completed 520 shop hours and has received a trade in Automotive Technology. Taylor has developed valuable social skills over the course of his incarceration and is able to communicate with different personalities. He has also completed the Changes program and obtained his G.E.D. OPPORTUNITY Explanation: Vehicle owners have to take time out of their busy schedules to have their vehicles washed and detailed. Can I solve the problem given my skills and personality? I have over two years of experience in the automotive industry. Is the customer looking for a more holistic solution than his or her immediate complaint? We will provide onsite auto washing and detail services to our customers. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? Initially, I can do all of the work myself but as the business expands, I will need to hire additional staff. Is there growth potential to expand my business, or is this a dying market? Automotive vehicles will always be around so there is growth potential in this market. How soon can I get my business up and running? I plan to start this business in the spring of Is this something that will take a lot of cash to get started or is it more of a question of hustle? I estimate a start-up cost to be approximately $30,000-to-$40,000. Is this something I would be proud to share with my family and parole officer? This business is appropriate both morally and judicially Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? There will be no interference with any parole restrictions Would my business start as a part-time venture or need to be full time? My business has the opportunity to be either full-time or part-time, but it will start as a full-time venture. SOLUTION Explanation: I will bring car washing and interior detailing to our customers location. This includes car washing, under the hood, and under the carriage. W. Choice Detailing 2

7 Is what I am offering filling the customer s real need? We offer a solution to inconvenience of vehicle owners in the Midland /Odessa area. What are the benefits (not features) that I am providing? Waiting in a long line no longer becomes a problem for our customers. We will develop a relationship with each client. Why can I do this better than another business (competitor)? Our relationships with customers lead to a better understanding of their needs, enabling us to fur fill our customer desires. How will I deliver this better idea to my customers? With the utmost attention of the most minute detail. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? Being on a mobile level I am able to produce on a consistent level. Is my solution consistent with my passion for selling? We have a passion for vehicles. Is the price of my solution equal to or less than the customer s pain? Our prices will vary depending on the vehicle size and the extent of customer s want of car care. Is the approximate cost of my solution lower than the price? Prices will vary depending on which package the customer chooses. Do I need a fixed location (Storefront) or is this a mobile business? Our business is a mobile based venture, but we hope to expand to have a store front available as well. Do I offer a guaranty or return policy? I offer satisfaction guarantee. CUSTOMERS Explanation: Our primary target customers will be car dealerships, independent car lots and personal vehicle owners. Demographics: Will my service have different appeal to men versus women? My service is gender neutral. What is my ideal customer s age (children, young adult, middle aged, mature)? My ideal customer will be from 18-to-25 years old. Does my customer need to be married, single or does it matter? The relationship status of my customers holds no bearing on my business. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? This type of service will not be affected by language barriers. W. Choice Detailing 3

8 What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? Personal image includes someone s vehicle. How their car looks is believed to be a reflection of oneself. Income: Does my customer need a certain income (rich, middle class, poor)? My target customers will need to be middle to upper class. Does my customer need to own specific assets (car, house, boat)? Because my business is car care, customers will need to own or drive a vehicle. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? I will mainly sell to my customers at their location since my business is mobile. Do I go to my customer (home service) or does my customer come to me? My company is a mobile business. My customer has the ability to decide. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? A rural community or a gated community is my ideal area to do business. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. My customers will be located within a 30 mile radius of a neighborhood. How easily can I find this customer (one at a time or they will provide referral)? I aim to have referrals from serviced customers. I will also go door to door. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I would have to sell to each customer individually or through car clubs, church groups, or even parking garages. Once I sell to a customer, what is the likelihood that they will buy from me again? A customer will likely give me repeat business based on the quality and convenience I offer. Am I selling to a wholesaler, retailer or does it matter? I will be selling to a retailer/car dealerships. What industry is my customer in? My customer is in the auto industry. What size customer do I want to serve (large/small, single/multiple locations)? I would want to serve medium to large dealerships in a single location until I expand. Will my customer require special insurance (construction bonding, liability insurance)? My customer will require a general liability insurance policy. Does my customer require 24/7 service any special? My customer does not require a 24/7 emergency service. W. Choice Detailing 4

9 Do I have the capacity to meet the customer s demands? I will meet my customer s needs and demands. Will the size of a customer allow me to develop other clients or will I be hostage to one company? I may be able to develop other clients as they see me perform my work. W. Choice Detailing 5

10 DIFFERENTIATORS My Competitors Direct or Indirect Soft Suds Direct Radio, TV, newspapers, billboards Promotion Price Their Advantages $15 Branding, lobby for waiting; TV in lobby Their Disadvantages Long wait, not flexible My Differentiators Cost effective, personal experience, convenient Village Car Wash Direct Radio, newspapers, billboards $20 Branding, expensive selection Long wait, not flexible Cost effective personal experience, convenient Summer s Spray Direct Radio, newspapers $18 Branding, locally owned Long wait, not flexible, limited selection Cost effective, personal experience, convenient Independent do it yourself Indirect None None Cheap, selfsustaining, at home comfort Time consuming, dirty, no experts Cost effective, personal experience, convenient Self-service stations Indirect Newspapers $5 Cheap, selfsustaining Mediocre equipment, time consuming, no experts Cost effective, personal experience, convenient W. Choice Detailing 6

11 EXTRAS External Extras: Do you have a connection with a supplier in your industry? No, I don t have a connection with a supplier in my industry. Do you have access to a favorable location for your business? I do not require a location, because my business is mobile based. Are you going to be the first company of your type in your chosen area operations? No, there are a couple already. Internal Extras: Do you have a new or cutting edge concept? Mobile car washes are a relatively new concept. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? My schedule will be worked to fit the customer s needs. I will be available 24/7. Are you an especially charming or personable person? Being incarcerated has given me the opportunity to learn how to cope with different personality types. I am very personable. MARKETING Message: What are three things your company name (with no other information provided) says about your company? My company says that my service is the best possible choice. I am a professional with a passion for my line of work. What is your tagline? If it isn t done perfectly, then it wasn t done W.. How does your name and tagline make you different than your competitors? My name and tagline highlight the quality of my business. Can your message be effectively conveyed through multiple types of media? Social medial sites such as Facebook, Instagram, and Twitter will be a major avenue conduit of marketing for my service. Is your message effective across different demographics? My message is appropriate for every demographic. W. Choice Detailing is easily understood. Is your pricing consistent with the market for similar offerings? Yes, although my prices will be slightly higher to match the quality and flexibility of my service. Is your pricing consistent with the degree of personalization? The quality of the work done will be consistent, while the prices will be very upon package selection and vehicle size. W. Choice Detailing 7

12 Media: What are three types of media you will use to reach your customers? I will utilize radio commercials, social media, and newspapers to reach my target customers. Also, I will hand out business cards at automotive supply shops and dealerships. How many potential typical customers (not just total people) can you reach each month using the types listed above? A minimum of 100 people a month is what I project reaching. Once you ve reached your typical customer, how many will actually buy from you? Five percent is the normal standard, but I estimate 30-to-40 people buying my service. For each of the three, what do you think the estimated cost will be? Newspaper ads maybe $100, social media is free, and radio commercials start at $100 depending on time. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? Each cost is a recurring monthly charge, with the exception of business cards. How will you collect customer reviews? I will collect reviews via Yelp and paper ballots. W. Choice Detailing 8

13 START-UP COST Owner's name Company name Industry Wright Choice Detailing Automotive Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 1,000 cell phone purchase 150 car/truck down payment, if leased permits supplies, office & misc. 1,000 Gas 1,200 Cash needed for start-up expenses 3,350 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van 5,000 5,000 company trailer 45,000 45,000 computer, printer, fax 2,000 2,000 Website 1,300 1,300 Equipment Leaseing 1,500 1,500 - building/office deposit N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 9,800 45,000 54, assumed life (months) 913 monthly depreciation Total start up cost 58,150 Assumption 5 - Total Sources Cash owner will contribute to the company 10,000 17% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) 45,000 75% Unsecured debt, if applicable (for example Kiva loan) 5,000 8% Outside equity investment, if applicable 0% Total start up cost, total sources 60, %

14 FINANCIALS dba Wright Choice Detailing EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Product description Basic Wash Supreme Package Hand wash interior nnd exterior, detail interior, hand dry Wash and wax exterior, undercarriage, rim shinning, shampoo and detail interior Price per unit % % 0% Cost of one unit hours rate hours rate hours rate Non-owner payroll exp. - 0% - 0% - 0% Non-owner payroll tax 9.0% - 0% - 0% - 0% cost 1 description Gas % Gas % 0% cost 2 description Supplies % Supplies % 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs % % - 0% Income statement gross profit per unit % % - 0% hours rate hours rate hours rate Owner's labor charge % % - 0% Pro forma gross profit % % - 0% Start-up Total Year Basic Wash sold ,100 Supreme Package sold sold - total revenue $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 7,250 $ 79,750 total cost of sales $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 1,050 $ 11,550 total income statement gross profit (excludes owner labor) $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 6,200 $ 68,200 Owner's labor hours (time spent directly related to sales) 1, ,000 1, ,036 Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ 45,000 principal, beginning 45,000 44,628 44,253 43,875 43,493 43,108 42,721 42,330 41,935 41,538 41,137 Interest rate 10.0% interest expense ,950 Loan term (months) 84 principal payment (372) (375) (378) (381) (385) (388) (391) (394) (398) (401) (404) (4,267) ly payment 747 principal, ending 44,628 44,253 43,875 43,493 43,108 42,721 42,330 41,935 41,538 41,137 40,733 Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes Assumption 9 - Equipment Purchases, after start-up Description Total Year

15 dba Wright Choice Detailing Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 Basic Wash 6-2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 27,500 34% Supreme Package 6-4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750 52,250 66% line not used % Total revenue - 7,250 7,250 7,250 7,250 7,250 7,250 7,250 7,250 7,250 7,250 7,250 79, % Cost of Goods Sold 2 Basic Wash 6-1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 12,100 15% Supreme Package ,450 13% line not used % Total COGS - 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 22,550 28% Gross profit - 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 57,200 72% Expenses 2 Auto or truck lease - - 0% Depreciation ,047 13% Gasoline & fuels - 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 13,200 17% Insurance - bonding - - 0% Insurance - vehicle ,650 2% Interest - equip & start up ,950 5% Marketing 1, ,500 8% Office - rent - - 0% Office - insurance - - 0% Office - telephone - - 0% Office - utilities - - 0% Payroll - not owner and not in % COGS Payroll taxes (9%) 6 & % Permits ,100 1% Supplies 1, ,200 4% Tax service - - 0% Telephone - cellular ,250 2% Start-up expenses 1, ,200 2% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 3,350 3,538 3,535 3,532 3,529 3,526 3,523 3,519 3,516 3,513 3,509 3,506 42,097 53% Taxable profit (loss) 1 (3,350) 1,662 1,665 1,668 1,671 1,674 1,677 1,681 1,684 1,687 1,691 1,694 15,103 19% Tax (expense) benefit 1 - (1,247) (1,261) (1,268) (3,776) -5% Owner's withdrawals % Net profit (loss) (3,350) 1,662 1,665 1,668 1, ,677 1, ,687 1, ,327 14% Depreciation ,047 Equipment purchases 3 (54,800) (54,800) Principle, equipment loan 7 45,000 (372) (375) (378) (381) (385) (388) (391) (394) (398) (401) (404) 40,733 Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution 3 10, ,000 Equity investor Net cash flow 1,850 1,995 1,995 1,995 1, ,995 1, ,995 1, ,015 Cash, period start - 1,850 3,845 5,839 7,834 9,828 10,576 12,570 14,565 15,299 17,294 19,288 - Cash, period end 1,850 3,845 5,839 7,834 9,828 10,576 12,570 14,565 15,299 17,294 19,288 20,015 20,015 The accompanying assumptions are an integral part of this financial statement.