HOME CAR WASH SERVICE

FEASIBILITY ANALYSIS

INTRODUCTION

This new business enterprise will provide home service of cleaning, washing and polishing;
interior and exterior of car, trucks, motor bikes, jeeps, 4x4, tractors and any other vehicle. It is
found that people always want their vehicle to be neat, tidy and having a polished surface. A
majority of the population owning a vehicle are willing to pay even more than what is charged
for the service but there are two major factors that makes the vehicles untidy. First of all the
roads of the area; as soon as there is a rain shower, mud deposits on and near the roads is
wedged with the moving traffic, making the vehicle untidy. Second reason is the service station,
they do provide a satisfactory car wash service but people are very busy and no one is willing to
wait in the lines at the service station to get there vehicle clean.

Now any one in need of a wash service, can call us our contact number (helpline) from
anywhere (home/office/shop) and while the owner is busy in his/her daily activities his/her
vehicle will get the wash service desired by the owner.

OPERATIONS OF THE BUSINESS

Main operation will include washing the exterior with the (branded) car-wash-shampoo.
Cleaning the deposits of mud underneath the car. Using air blower and vacuum cleaners, for
removing dust from the interior and under the bonnet. And at last polishing by means of
polishing machine and branded polish.

CONCEPT

This new and innovate idea is appreciated by many people and they are willing to pay more
than the service station rates due to the fact that they will be able to save a lot of time and they
can get a service they wish for at any time of the day or night as the service is offered 24 hours,
at any place they want (in the restricted area of the business).

NATURE OF THE BUSINESS

As this is a service related business, there is a no such Cost of Goods to be estimated. No doubt
like every business, this business will also commence by purchasing the assets such as air-
blower, portable-vacuum cleaner, mini-water pressure pump and polishing machine. And of
course a contact number (preferable cell phone; due to low cost, affordability and mobility). Car

1|Page
mrk56
 HOME CAR WASH SERVICE

wash shampoo, polish, wash cloth and the transportation cost will be accounted as operating
expenses (daily expenses).

Initially the service will be provided in limited area, but if the business will gain success and the
idea becomes hit, there are expansion planes.

1. INDUSTRY AND MARKET FEASIBILITY

MARKET AND INDUSTRY COMPETITION

Market size of such business is very small as there is very minute direct competition; as there is
no such organized business running in the area, small number of unemployed individuals
standing at parking lots can be considered as a small threat. And the service stations can be
considered as indirect competition. Competitors are not similar in size or capacity. The more
the Business will grow the more the industry will grow, and by the estimation in the light of the
survey conducted shows all the lines in the graphs and charts shooting up-wards. All of this
attraction and expected growth is possible due to the opportunity to sell a differentiated
service.

SUPPLIERS/SUPPLIES

This is a service business. The products used in the daily routine will be purchased according to
the daily requirements, as this is a small scale business so supplies (such as polish, shampoo
etc.) will not be bought in huge amount/stock as the business doesn’t have that capacity right
now.

CONSUMERS/CUSTOMERS

The first thing consumers usually do when they hear of a new service is compare it to existing
alternatives. Customers will buy from a new business only if they perceive the value provided
by that new business to be greater than the value provided by existing competitors, and as
there is no such direct competitors in the market more and more people who are aware of the
upcoming business are willing to become the potential customers and are ready to pay to
achieve the services. As the number of customers is initially low and there is almost no
switching cost; the influence of the customers is high. But the number of buyer is estimated to
grow very rapidly. Customers can easily compare a professional home car wash service with the
service given at the station or with the services of those unemployed and unorganized people
standing at the parking lots.

2|Page
mrk56
 HOME CAR WASH SERVICE

THREAT OF SUBSTITUTES
If getting a car wash from another place is a threat of substitute than Yes there is a threat. But
talking in the real terms, and taking into consideration the fact the service provided is not just a
car-wash; it is ‘home car wash’ than there is no threat of substitutes as workers working on the
service stations will never come to one’s house to clean the car and nobody will ever think of
inviting the people standing at parking lots to their houses for a car wash, due to the security
reasons. Thus proving that there is no or a very small threat of substitute.

POTENTIAL ENTRANCE
Potential entrance is not considered a threat at this initial stage because of the reason that the
business is going to kick-start from a small level. And there number of customers even in the
early stages is lot more than the potential load of the work that business could handle, so any
entrance will not be causing the loss of customers.

2. SERVICE FEASIBILITY

The facts and figures generated are on the bases of Primary data collected. Questioners were
used to collect the data (attached).

50 people were used in the process of survey (randomly). Varied people (in terms of age,
gender, and race) presented their point of view about the business. The results were beyond
our expectations. Focus was on a particular group of people living on or near the
Stadium/Double road (Rawalpindi) and the 9th avenue (Islamabad).

RESULTS (PRIMARY DATA COLLECTED)

willing to pay more

24 hours wash service (favor)

willing for a home car wash service percentage

getting a professional and desired wash

hate to waiting at car wash station

hate to go to a car wash station

0 10 20 30 40 50 60 70 80 90 100

3|Page
mrk56
 HOME CAR WASH SERVICE

SIGNIFICANT FINDINGS

 A majority of the public feels awful waiting for a car wash at the station.
 And when a whole day is wasted to get a car wash people feel very dreadful.
 Just the idea clicked the people and they were ready to make advance booking.
 Many were delighted to hear, that there was any service existed in such manner.
 All the females (from all ages) who filled the questioners were overjoyed as they are not
willing to go to a service station.
 A girl commented that ‘this service would certainly be a hit’.

PROTOTYPE

As a prototype; while conducting the survey contact number of Danish (group leader) was given
to the person who filled the questioners and 38 calls in just one day are a pretty good sign for
the upcoming business.

3. FINANCIAL FEASIBILITY

Budget will comprise of Rs: 50,000

CAPITAL REQUIRED TO COMMENCE THE BUSINESS

Item Quantity Cost per Unit Total Cost
Mini Air Blower 2 Rs: 2,200 Rs: 4,400
Mini Water Pump 2 Rs: 1,500 Rs: 3,000
Polishing Machine 2 Rs: 1,200 Rs: 2,400
Portable Vacuum 2 Rs: 1,000 Rs: 2,000
Cycles 4 Rs: 3,000 Rs: 12,000
Uniform (T-shirts) 4 Rs: 200 Rs: 800
Other (polish, - Rs: 2,500 per month Rs: 2,500
shampoo,
miscellaneous )
Grand total Rs: 27,100
Based on the prices collected from the market of second hand good required for the business.

PREPARATION

Initially 2 teams will be made, each having 2 members. So therefore each team would have 2
cycles and 1 air blower, water pump, vacuum and polishing machine.

4|Page
mrk56
 HOME CAR WASH SERVICE

HANDLING THE SURPLUS

Total Budget (50,000) – Capital Required (27,100) = Surplus (22,900)

Rs: 23,000 approx. will be deposited in a bank account (at the present 12% interest rate), later
to be utilized for the expansion plans of the Business. This investment will give Rs: 3,000
approx. of benefit p.a.

ESTIMATED EARNINGS

It is estimated that a team will deliver services to at least 12 customers (it takes 30-40 minutes
to give a car wash utilizing the instruments provided). As there are 2 teams so that makes 24
car washes per day. Initially the customers will be charged Rs: 450 (with a polish service) and
Rs: 350 (with out polish) [excluding the tips]. Assuming that out of 24 wash per day, 18 car wash
services are with a polish service and 6 are without the polish.

FORECASTED INCOME STATEMENT (INITIALLY)

Details per Day Income per Task Total
18 car wash + polishing Rs: 450 Rs: 8,100
6 only car wash Rs: 350 Rs: 2,100
Total income per Day - Rs: 10,200
Estimated earnings per Month= Rs: 10,200 x 30 Days = Rs: 3, 06,000

Customers VS Profits
100

80

60

40 customers
profits
20

0
1 2 3 4 5 6
-20

-40
MONTHS

5|Page
mrk56
 HOME CAR WASH SERVICE

All the financial documents and the data prepared is on the basis of assumption and personal
opinion, the purpose is not to promote the given data but to create an understanding of how to
make a comprehensive feasibility plan, this business do not exist.
This is an original document. All the information is presented in the best possible way; and is
correct according to my limited knowledge. If there are any corrections regarding the
information, grammar, spelling or typing I may kindly be informed.

Danish Sultan
mrk56@live.com
+92 312 51100 56

This is a complete set of feasibility report (and the questioner), business plan (title page and report) make sure
you download all of them for better understanding.

6|Page
mrk56
 HOME CAR WASH SERVICE

mrk56 is used by Danish in the documents written originally by him.

7|Page
mrk56