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  1. #1 Business plan rough draft 
    southerndetail's Avatar
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    I threw this together it has not yet been proof read but I thought I would share

    Executive Summary
    Southern Auto Detail is an exclusive mobile detailing company currently serving the greater Charlotte area. Southern Auto Detail is owned and operated by Dustin Mecham. Dustin has been in the detailing field since 1997. Southern Auto Detail has been in business for the past three years, and Dustin plans on continuing to build on his business with his name recognition and strong work ethics.

    The Business
    Southern Auto Detail is an exclusive full service detailing company providing: exterior detailing, interior cleaning, and head light restoration. Southern Auto Detail has no true competitors able to compete with the quality and customer service. Hiring the best employees is cost effective because it decreases lost revenue due to high turn over, making sure they are well taken care of ensures they will take the same care with the customers. Study after study proves that a happy employee is more likely to give the highest level of service compared to the unhappy employee who feels like they are being taken advantage of.

    The Customers
    Southern Auto Detail will be targeting three different type of customers: high end car owners, business owners, and individual owner and leasers. The surrounding area is quite affluent with two major banking headquarters located less than three miles from the proposed location. Also there is a light rail transit system that runs by every fifteen minutes, this gives the business that much more exposure.

    Management
    The strength of Dustin’s experience and well established client base will give Southern Auto Detail the competitive edge not offered by any surrounding detail companies. He has worked his way through the trade starting in high school where he attended an auto body course, continuing into the local car dealership detailing new and used autos. After learning and gaining experience in the mobile department for three years Dustin decided to start Southern Auto Detail and has been steadily growing for the past three years.

    Objectives

    The objective for Southern Auto Detail are:

    1. To be known as Charlotte’s exclusive detailing service

    2.

    3.

    4.


    Mission
    The mission of Southern Auto Detail is to offer top quality mobile and fixed location detailing for luxury car owners in Charlotte and surrounding areas. Southern Auto Detail will concentrate on keeping employees happy in order to keep the high customer service that Southern Auto Detail is known for.

    Company summary
    The company is solely owned by Dustin Mecham started three years ago with an initial loan of $5000. Southern Auto Detail is a licensed sole proprietorship company.

    Company ownership
    The company is solely owned by Dustin Mecham, Dustin has been steadily growing Southern Auto Detail for the past three years. At the start of 2007 he added another mobile unit. He came across the propose location while detailing one of his current clients, Dustin felt like it would be the perfect location for a detail shop.

    Start up summary
    Start up expenses will be financed by a business loan of , provided by a private lender. The property on the corner of Clanton and South Blvd will be leased for a minimum of three years with the option to extend the lease there after.
    Dustin will work with a lawyer to set up incorporation and to discuss lease issues before the business is launched. He currently has a graphic designer who will be designing road side signage, brochures, and all other marketing materials.
    Rent on this location is yet to be negotiated but is a tentative $1700 per month. Expensed equipment will include but are not limited to pressure washers, chemical, waxes, detailing tools, computers, office furniture, office supplies, and hand tools.
    The location is ideal for detailing in that it has a drive through bay enough o accommodate up to three vehicles. It also has a large secure fenced area ideal for vehicle prep and storage.
    Any building improvement or maintenance will be performed by Dustin or contracted out.

    Services
    *Exterior Detailing
    *Interior Cleaning
    *Headlight Restoration

    Market analysis summary
    The current proposed location is in the south end of Charlotte. This area has a number of benefits in terms of the market. There is a light rail transit system within 50 yards of the building, passing by every 15 minutes. Many of its commuters are Bank of America employees with the average salary being between $70,000-$100,000 (Restoring Our Founding Principles). The uptown which is three miles away also has two professional sports teams, with a minor league baseball team and a NASCAR hall of fame coming soon.

    Market segmentation
    Southern Auto Detail segments its potential clients by car ownership. We believe that the type of vehicle a person drives says volumes about them and in turn their washing and detailing habits.
    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 Southern Auto Detail will keep their car looking as good as it did the day they drove it off the lot.
    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.
    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.
    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 occasionally, 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.
    Dealerships: Southern Auto Detail has worked with Felix Sabatas Mercedes on South Blvd. in the past and can count on working with them in the future.
    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, convenient fleet maintenance service to perform this for them, and will prefer to use a car wash service during the week rather than during weekends, like the general public.

    Target market segment strategy
    The strategy behind Southern Auto Details target strategy is to attract repeat customers, the ones that will continue to come even during the slow times. Attracting customers in the summer time will not be difficult, but during winter and the holiday season people usually don’t think about getting there cars cleaned. For this reason Southern Auto Detail will target people that are not restricted by 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. Professional ball players 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.

    Service business analysis
    The car detailing industry in this area is pretty competitive. There is a large drive through company that targets the average car owner offering $7.00 washes, a couple of small fixed location detailers offering moderately price detailing but not offering the professionalism that Southern Auto Detail has to offer and lastly plenty of “fly by night” mobile detailers offering $10.00 quick washes. A lot of these company attract the price conscious person not willing to pay $25.00 to $40.00 a week to keep there vehicles maintained.

    Strategy and implination
    Southern Auto Detail will not change, Dustin has been dedicated to giving the customer friendly and educated information. He will train every employee to give all current and potential clients the utmost respect, in turn the client will Will be more inclined to tell a friend of our great service and quality work.

    Competitive edge
    Southern Auto Detail’s competitive edge will be built around Dustin Mechams ability to obtain and maintain an impressive clientèle list. He currently takes care of the areas most luxurious and expensive vehicles. Dustin has had to implement some of the industries most up to date processes and products. He has been a member of DetailCity - Auto Detailing an automotive detailing forum, learning from detailers around the world todays safest and least invasive ways of detailing high end autos.

    Sales Strategy
    Sales strategy is a one-to-one basis. All potential customers will feel that they are a part of the Southern Auto Details team, And that our employees care as much about there cars as they do. We must be aware that we are not the the cheapest in town.


















    FIRST YEAR EXPENSES

    Office $4000
    Shop $6400
    Building Maintenance $5000
    Utilities $4800
    Lease $20,000
    Payroll $67,600

    Total $107,800


    FIRST YEAR PROJECTIONS

    Full Service Wash $29,900
    Full Detail $30,030
    Exterior Detail $24,960
    Interior Detail $13,000
    Headlight $650

    Total $98,540


    FIRST YEAR MARGIN

    - $9260



















    SECOND YEAR EXPENSES

    Office $1000
    Shop $4800
    Building Maintenance $1500
    Utilities $4800
    Lease and insurance$20,400
    Payroll $99,200

    Total $131,700


    SECOND YEAR PROJECTIONS

    Full Service Wash $46,800
    Full Detail $36,894
    Exterior Detail $28,080
    Interior Detail $18,200
    Headlight $1300

    Total $131,274


    SECOND YEAR MARGIN

    - $426


















    THIRD YEAR EXPENSES

    Office $1000
    Shop $4800
    Building Maintenance $1500
    Utilities $4800
    Lease and insurance$20,400
    Payroll $102,800

    Total $135,300


    THIRD YEAR PROJECTIONS

    Full Service Wash $52,000
    Full Detail $42,900
    Exterior Detail $31,200
    Interior Detail $20,800
    Headlight $1950

    Total $148,850


    THIRD YEAR MARGIN

    + $13,550
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  2. #2 Re: Business plan rough draft 
    a.k.a. Troy@DetailCity Troy@Protekt's Avatar
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    I'd say you have thought things through and planned a bit better than the average detail company.

    Certainly better than I did when I started out.

    Thanks for sharing, this is great information to model a company after. Especially the part about being a member here.

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  3. #3 Re: Business plan rough draft 
    Mike CalgaryDetail's Avatar
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    very intersyting read, the only thin im wondering about is the projections... how comes it s goes first year expenses then revenues.. then second year expenses first year projections , and finnaly second year first year... im just confused about why you are looking at your first years income with second year expenses.... i dont know how to work it, but the logic escapes me....


    FIRST YEAR EXPENSES

    Office $4000
    Shop $6400
    Building Maintenance $5000
    Utilities $4800
    Lease $20,000
    Payroll $67,600

    Total $107,800


    FIRST YEAR PROJECTIONS

    Full Service Wash $29,900
    Full Detail $30,030
    Exterior Detail $24,960
    Interior Detail $13,000
    Headlight $650

    Total $98,540


    FIRST YEAR MARGIN

    - $9260

    SECOND YEAR EXPENSES

    Office $1000
    Shop $4800
    Building Maintenance $1500
    Utilities $4800
    Lease and insurance$20,400
    Payroll $99,200

    Total $131,700


    FIRST YEAR PROJECTIONS

    Full Service Wash $46,800
    Full Detail $36,894
    Exterior Detail $28,080
    Interior Detail $18,200
    Headlight $1300

    Total $131,274


    FIRST YEAR MARGIN

    - $426









    SECOND YEAR EXPENSES

    Office $1000
    Shop $4800
    Building Maintenance $1500
    Utilities $4800
    Lease and insurance$20,400
    Payroll $102,800

    Total $135,300


    FIRST YEAR PROJECTIONS

    Full Service Wash $52,000
    Full Detail $42,900
    Exterior Detail $31,200
    Interior Detail $20,800
    Headlight $1950

    Total $148,850


    FIRST YEAR MARGIN

    + $13,550



    ohh and one other thing the bank may look at, what are you charging and how many customers you are expecting, they may want to know where the numbers come from...
    06 Nissan Altima 3.5SE
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  4. #4 Re: Business plan rough draft 
    southerndetail's Avatar
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    My bad, I used copy and paste after the first year and I guess I forgot to change the wording. And as far as the projections for the bank are concerned I have the breakdown just haven't typed them up, also its not a bank I am going to its a private lender. Thanks for catching that
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  5. #5 Re: Business plan rough draft 
    Beautification Specialist dr_detail's Avatar
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    I'm confused -- just how much working capital you are asking for, how are you planning to pay it back, and how long will it take? I also am confused as to where in your projected expenses are such things as: materials, advertising, equipment maintenance, and the loan pay-off information (private lender or bank, I would think they might want to see a return on their investment & how you plan to pay it). It's also good to include your last three year I&E's to help back up your projected growth. I was taught that typically business loans are three to five years in term. Also, those are some pretty heafty #'s in the volume area -- is this shop big enough to accommodate?? $30K/mo in detail work is (I'm guessing -- for there is no #'s to show how you get this #) 4-5 cars per day when I add this to the other services you are offering it would make for one busy shop. What about your mobile units, are you able to run both the units and the shop -- if not does your plan include a manager, who's going to handle your book keeping, payroll, taxes, etc? Will this be you, your wife, your current employee -- it might be a good idea to list these people. Please don't get me all outa whack here, I'm in no way trying to deter you from your goal, but I might suggest including a little more due diligence in your plan -- like what are your competitors charging, who are they, how far from your location are they, how do they advertise and how will you be better than them at getting people through the door (we all are the best at what we do )What about contracts -- do you have any in place with these dealerships or fleet owners, are 4 people (@ <$10/hr) going to be able to do all the work you've projected. What about zoning, is it ok with the city or will you have to through the city planning comittiee process of conditional use permiting ($$$$) will the signage have to approved and permited as well (more$$$)??? Whatever happens though this has been the best started plan I have seen posted on this board to date
    A happy customer tells a friend ... An unhappy one tells many friends !!!

    Gim-me a car with finns... :naughty and I'll shows ya what detailin's all about... :jump
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  6. #6 Re: Business plan rough draft 
    southerndetail's Avatar
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    Thanks for the input I guess I got a little anxious to get feed back I didn't think about these things. I am glad there are educated folks on here willing to give me the constructive feed back I need.
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