Free Car Wash Business Plan

Free Car Wash Business Plan for Loansrevenues from these services.
Obtaining Business Financing 
 Additionally, the business will generate additional
When obtaining a business loan for a car washstreams of revenue from the sale of car care
business, it is imperative that you have a properlyproducts that customers can use at home.
structured business plan that will assist you in 
showcasing how you intend to operate your CarIndustry and Market Analysis
Wash, how the business will operate, how you 
intend to market the business, the anticipatedThe Current State of the Economy
financial results of your company, and how you 
intend to repay your debt obligations. This sampleIt is important to let your financial institution know
loan business plan will provide you with thethat you are well apprised of the financial situation
framework that you need in order to acquire aof the general economy when you are applying
business loan for starting or expanding this typefor a business loan. This is especially true in
of business.today's environment where lending has become
 more difficult and will remain more difficult in the
Executive Summaryforeseeable future. Specifically, you should gear
 this section of the business plan analysis towards
Introductionthe industry that you are operating within. For
 example:
When obtaining a business loan for a car wash, it 
is imperative that your business plan has a clearThe current economy has remained difficult over
and concise executive summary that provides anthe past few years. However, Car Wash
outline of what are seeking to accomplish, howbusinesses typically operate with a strong state
much capital you are seeking to raise, theof economy stability as these businesses provide
management biography of the business owner,a broad level of car cleaning services with a
and an overview of the anticipated profit and lossrelatively low pricing point. As such, the Car Wash
statements of the business. Here is an examplewill be able to remain profitable and cash flow
of how the title paragraph should be written:positive at all times despite the current state of
 the economy.
Car Wash, Inc. ("the Company") is seeking a 
business loan of $100,000 in order to launch theThe Car Wash Industry
operations of a car wash that will be based in San 
Francisco, California. The Company was founded inIn addition to providing your business loan officer
(Insert Year). The business was founded by Mr.with an understanding of the general economy, it
John Doe.is important that you showcase that you have an
 equal understanding of the industry in which you
Products and Servicesare operating within. As such, you will need to
 provide you business loan institution of a brief
In the next segment of the business loan andoverview of your industry and any potential
business planning document, you should showcasechanges that may affect the way that your
the products and services that you will becompany does business. An example of how an
providing to the general public. For instance:industry overview is as follows:
  
The Car Wash will provide customers with theThere are over 13,600 car washing
ability to quickly have their cars exteriors andestablishments in the United States. These
interiors cleaned by the Company's professionallybusinesses produce over $4 billon dollars a year in
trained staff. The business will not have angross receipts. Additionally, the business employs
automated drive through car wash, but ratherover 124,000 people, and generates payroll
individuals will wash and clean the car by hand. Thefigures of $1.2 billion dollars a year. The industry
business will generate revenues through thehas experienced a tremendous rate of growth
services rendered by the Company's staff as wellover the last ten years. The car washing industry
as through the sale of car care products.from 2000 to 2005 experienced growth of more
 than 18% over the five year period. This industry
Business Loan Termsis one of the fastest growing industries in the
 United States.
Now it is time to discuss the anticipated terms of 
the business plan that you are seeking. An 
example paragraph of how this is stated: 
 Target Market
At this time, Mr. Doe is seeking a conventional 
business loan in the amount of $100,000. TheIn this section of the business loan application and
interest rate, loan terms, and loan covenants arebusiness plan analysis, you should focus on the
to be determined during negotiation. However, thisdemographics of your localized market (or national
business plan assumes that the business willmarket if applicable). This section should discuss
receive a seven year business loan with a sevenhow many people live in your area, the anticipated
percent interest rate due on the outstandingnumber of people that would require the use of
principal balance.Car Was businesses, the median household
Management Biographyincome of people living in the area, poverty line
 statistics, and any applicable laws that would apply
Now that the summary of the business has beento your operation of the Car Wash.
provided, it is time to provide a brief overview of 
the owner of the business. An example paragraphCompetition
summing up the owner is as follows: 
 Many people that are developing new businesses
Mr. Doe is a highly experienced business personor expanding existing businesses often feel that
that has years of experience regarding the directtheir business does not have any competition or
ownership and management of business. He will belimited competition at best. However, this is
able to effectively bring the operations of the Caralmost never the case. Unless you have
Wash to profitability while ensuring that there-invented the wheel – you will have
business loan's payments and its covenants arecompetition. When applying for a business loan,
met at all times.you should clearly showcase your competition in
Financial Statementsyour business plan. This is especially important to
 your banker as they will be able to gauge your
The most important thing to your lender whenability to be successful in your targeted market.
applying for a business loan is how you intend toMany business loan underwriters will aggressively
repay the bank. In this section of the businessconfirm that competitive nature of your local
plan, you should provide an overview of themarket and your local industry.
finance's of the business discussing the anticipated 
revenues, expenses, and profits/losses. You canWhen drafting this section of the plan you should
also discuss the applicable collateral within theheavily discuss the competitive advantages that
business plan that will be used to secure youryou intend to have over your competition.
business financing. 
 Marketing Plan
Expansion Plans 
 In addition to all of the above information that we
One of the most important aspects of yourhave covered, your business loan officer is also
business plan is how you intend to expand thegoing to want to know how you intend to market
business over a three to five year period. Banksyour business to the general public. Most people
and finance companies always want to see thatdo not quite understand how to effectively
the business will experience a moderate to strongmarket their business outside of prominent
level of growth. This is especially true in businesssignage or flyer distribution. When applying for a
lending because as your business grows the cashbusiness loan (again in this difficult lending climate),
flow that secures your business loan will decreaseyour banker is going to want to see that you
proportionality against your monthly credithave a clear methodology of how you intend to
obligations. An example of how this is stated is asmarket your services or products to the general
follows:public. In this section of the business plan – we
 will overview how to showcase your services
The Car Wash will continue to expand throughproducts to the general public.
organic means including increasing the Company's 
advertising budget via the reinvestment into theMarketing Overview Example
after tax cash flows of the business. Additionally, 
if the business is highly successful then the- The Car Wash will place prominent signage on
Company may seek to establish additional Carthe facility to draw a significant amount of foot
Wash locations after the third year of operations.traffic.
 - The business will maintain listings in the Yellow
 Books.
The Financing- The Car Wash will also maintain an internet
 website that showcases the Company's
Use of Business Loan Proceedsoperations, hours of operation, and relevant
 contact information.
In this section of the business plan you should 
focus on how the proceeds of the business loanMarketing Strategies Overview
will be used. An example of this would be asAdditionally, you will be required to further drill
follows:down (in your business plan) how you intend to
 implement your strategies when you launch or
- Car Wash Establishment - $50,000expand your business's operations. In this section
- Car Wash Equipment and FF&E - $10,000of the business loan and business plan documents,
- Working capital - $40,000you should amplify the bullet points from the
 section above. For instance:
Management Equity 
In this section of the business plan you shouldThe Car Wash, Inc. intends to use a number of
discuss the percentage ownership of the businessstrategies that will create instant traffic and
among the owners of the business. For example:customer flow to the Company's location. These
 strategies include not only using prominent facility
Mr. Doe will own 100% of Car Wash, Inc.and road signage, but also distributing flyers to
 people that fall into he Company's targeted
Board of Directorsdemographics. The business will also regularly take
 out advertisements in localized newspapers that
When applying for business financing, the bank willshowcase the Company's hours of operations, car
also want to know who serves as the board ofwashing services, and specials that are occurring
directors. For small businesses, usually the ownerwithin the Car Wash's location on a regular basis..
serves as the director of the business. An 
example of how this is worded:The business will also maintain a highly informative
 website that showcases the Car Wash's services,
Mr. Doe will be the sole director of Car Wash, Inc.its hours of operation, service information,
 licensure information, and other relevant
Exit Strategyinformation in regards to the Company's services.
 This website will be listed on major search engines
Any bank or financing company is also going tosuch as Google as many people now use the
want to know what you intend to do with theinternet to locate local businesses.
business over a set period of time. Many business 
owners will develop and expand a business withThe Financial Plan
the intent to sell the company to a third party at 
a later time. When drafting this part of theBeyond any other part of your business loan
business plan you should focus on what youapplication or business plan, the financials section
intentions are in regards to potentially selling theof these documents are what matters most
business. This is often worded as:when applying for a business loan or any other
 type of credit facility. Ultimately, this section of
Mr. Doe would most likely sell the Car Wash to athe business plan showcases not only what your
third party for a significant earnings multiple. Caranticipated profitability will be, but also how you
wash businesses usually sell for approximately oneintend to repay the funds that you have
to three times earnings given the financialborrowed through your business financing facility.
strength of the business. In this event, theAn example of how this section is structure is as
business would be sold by a business broker andfollows:
the business loan sought in this plan would be 
repaid according to the covenants of the businessAssumptions
loan agreement. 
 - Car Wash, Inc. will have an average annual
Products and Servicesgrowth rate of 10% per year.
 - Mr. Doe will acquire $100,000 through a business
When developing a business plan that isloan in order to launch the operations of the
appropriate for obtaining a business loan or otherbusiness.
business credit facility you need to clearly 
showcase the services or products that you willProforma Financials for a Business Loan
be offering to the general public. An example of 
how this section is worded goes as follows:Now it is time to showcase how you intend to
 repay your loan, generate a profit, and increase
As stated in the executive summary, the Carthe book value of your business over a three to
Wash will provide general car cleaning (of both thefive year period. has developed an easy to use
interior and exterior of a vehicle) to the generalfinancial model that you can use when drafting out
public within its San Francisco based market. Thethe financial model for your business plan and
business will generate significant high marginbusiness loan application.