Executive Summary
Soapy Rides Car Wash will be the prominent car wash for luxury vehicles in East Meadow, Long Island. It is owned by Mark Deshpande, a young entrepreneur who has worked in the family car repair business for over 10 years. Having owned a car repair shop in East Meadow for over 30 years, the Deshpande family is well known and respected in the neighborhood.
The differentiator for Soapy Rides (SR) will be Mark and the Deshpande name. It is believed that people will come to the car wash not only to have their cars cleaned and detailed, but also as a social outing to meet up with and chat with Mark and his father Barry. Additionally, the car wash will provide excellent service, efficiently and expertly cleaning customer's cars so that they will be repeat users of the service.
The car wash will be based in East Meadow, New York. This area has a number of benefits in terms of the market that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000 annually. Many pvision for the company. John is a family friend and has worked with the Deshpande family for 23 years. He has worked with hundreds of small- and medium-sized businesses during his career.
Soapy Rides will have 20% market share of the hand car wash business in the East Meadow neighborhood by the end of year three, and it aims to convert a larger percentage of people away from machine car washes, which damage a car's finish. Soapy Rides will maintain a 95% gross profit margin and make 11% net profit margin after 12 months of operation.
Sales Forecast
2003 2004 2005
Sales
Individuals $76,086 $123,033 $165,662
Businesses $6,431 $8,776 $9,988
Total Sales $82,517 $131,809 $175,650
Direct Cost of Sales 2003 2004 2005
Individuals $3,804 $6,152 $8,283
Businesses $322 $439 $499
Subtotal Direct Cost of Sales $4,126 $6,590 $8,783
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