This document contains confidential and
proprietary information belonging exclusively to Amalgamated Enterprises, Corporation.
It is not to be copied or duplicated in any way without the expressed and
written consent of Amalgamated Enterprises, Corporation.
Denise Mellene
Chief Executive Officer
P.O. Box 70261
Las Vegas, NV 89170
(555) 555-5555
Plan 1 of 10
December, 1999
This is a business plan. It does not
imply an offering of Securities.
Executive Summary
Vision
The “Shine” car
wash will be the cleanest and technologically advanced two-bay freestanding car
wash, with remote (video) security monitoring, in the projected service area.
In our first full year of operation, we intend to establish “Shine” as a
premium self-service exterior, interior auto care facility. “Shine” must be
able to create and maintain financial balance by charging a fair market value
for services, which exceed customer expectations in quality and service.
“Shine” will
offer technologically advanced, frictionless, touch free, exterior, and
interior automotive care.
The legal name
of The Shine Car Wash is Denise Mellene, d.b.a. Amalgamated Enterprises,
Corporation. The legal form of the business is a C-Corporation. The business
location of Shine Car Wash is at 4860 Topaz, the closest major arterial is
Tropicana Avenue, which is 2000’ south of the facility.
The management
team consists of our President Denise Mellene, with over 15 years of marketing
experience, and Chairman of the Board William Pitzer, who has 18 years of
successful car wash propriety. Outside management support includes Leland B.
Kerr, Corporate Attorney, and Jacque Carlo, Accountant.
The “Shine” car
wash will offer not only the cleanest and technologically advanced car wash,
with remote (video) equipment security, and monitoring. It will also offer our
customers peace of mind; by freeing them from worrying about scratching and
damage associated with brush or cloth type car washes. This will fulfill the
community’s need for a high quality premium; touch free in-bay automatic, car
wash service.
The population
demographics within a 3-mile radius of the facility is 163,479 people, as
indicated in the Nevada Commission on Economic Development “1999 Las Vegas
Perspective,” derived from the United States Census Bureau, and other market
surveys performed by the Center for Business and Economic Research. Our market
research has determined that the car wash consumer resides in multi family
housing units. Based upon the Geographic Information Systems (GIS) map derived
from the Clark County Assessors, Land Use databases and the Center for Business
and Economic Research database within the three mile radius of the survey
center location of 4860 Topaz, there are 36,673 dwellings, zoned R3 or greater.
The Nevada Commission on Economic Development “1999 Las Vegas Perspective”
indicates that in the four zip codes within the three-mile radius of the
service area there are 75,283 occupied multi family housing units. This
reflects that 67.5% of the dwellings within the study area are multi family
housing units.
“Shine’s”
marketing strategy is to aggressively support and promote that we are the
cleanest; the most technologically advanced touch free and frictionless car
wash in the valley. The key element in attracting and keeping customers is
offering a high level of service and a quality product. The perception and
ability of the car wash to produce a wash that is damage-free to vehicles is
extremely important to the success of an operation.
Our advertising
and promotional strategy is to position “Shine” as the cleanest,
technologically advanced, frictionless car wash in the valley. The following
methods will be utilized to drive our message to our customers. The grand
opening of “Shine” car wash will be executed upon completion of cleaning and
landscaping the facility. A mass mailer will be sent to the targeted market
population, within a three-mile radius of the “Shine” location. This mailer
will be divided up into zip codes and launched in two-week increments. During
the first thirty days, a representative from Amalgamated Enterprises
Corporation will be on location during daylight hours to meet and greet
customers and assist with any question and concerns. After the initial
promotional period, a representative will still be at the facility daily for a
four-hour minimum. Keeping the “Shine” facility clean and in excellent
operating condition is essential to the success of this business venture. In
addition to the grand opening mailer, all fleet operators within a five-mile
radius will be identified and contacted to promote package discounts for fleet
use above five vehicles.
The financial
plan assumptions for the “Shine” car wash facility have been projected under
the worst-case scenario. The industry standard sales forecasts are based upon a
capture rate of 8-14% of the average daily traffic count. We estimated 76% of
the average daily traffic count, with the sales capture rate at 8% providing
potential monthly sales of 7,410 washes. At
$5.00 per unit sold, our gross revenues would be $9,740- $17,045 per month for
auto wash services. This business
has all the ingredients necessary to be developed into a successful
self-service and in-bay automatic car wash.
The increase in
profits generated by “Shine” as projected in the following business plan will
allow us to have the funds to retire the private investor loan in five years.
Concurrently paying the bank loan, which will be retired at the end of fifteen
years. Upon talking with a representative at “Bankwest of Nevada” at the Sahara
branch location, she said that it was the standard business practices of their
bank to finance 75% of the amount needed for the business venture, at a rate of
1-2% above the prime index, an estimated 10%. A private investor will fund the
additional 25% of the monies at an estimated 14% interest rate.
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