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Door-to-door car wash Business Plan (Operations (Location (3rd mile area,…
Door-to-door car wash
Business Plan
Legal
Apply for car wash license and permit (
Registration of Business Act 1956
)
Advertisement requirements
When Bahasa Malaysia is used with other languages, Bahasa Malaysia should be given prominence in size, color, and location.
To apply for advertisement, submit Form A and a sketch showing full details of advertisement and show location of advertisement.
Environment Quality Regulations 2005 & Clean Water Act
Applies to businesses with discharge of effluents onto soil or Malaysian waters.
Notify director general before conducting any work that may result in effluent discharge.
Discharge of pollutants from a point source into waters unless a permit is granted.
Use of chemicals in according to
Occupational Safety and Health Regulations 2000
Employees must be monitored and provided instruction and training for chemicals used to prevent danger risk at work
Employ Labour under
Sarawak Labour Ordinance 1952
Employ part-time workers with an agreed work hour
Employees are protected by law regardless of salary
Receive wages not more than seven days after expiration of wage period
Marketing
Similar Products
Conventional car wash centers
Automated car wash service
In-bay car wash system
Customers & Target Market Size
All vehicle owners who want convenient car wash
1.78 million cars in Sabah & Sarawak
High quality wash & waxing appeals to luxury car owners
SWOT & Porter's Five Forces
SWOT
Strengths
High gross margin
Low start-up capital
Low start-up risk
Weaknesses
Lack of experience
Requires good time management
High transportation fee
Privacy concerns
Opportunities
High chance of repeated sales
Ability to expand
Threats
Competition
Fall in economy
Porter's
Competitive Rivalry
Competition of car wash centers
Bargaining power of suppliers
Very little bargaining power,
pricing of equipment is standard.
Bargaining power of customers
Customers prefer high service quality,
willing to pay more for professional service
Threat of new entrants
High threat due to low barrier for entry.
Loyal customers are important.
Threat of substitutes
Main threat is home car wash by consumers themselves,
as a way to save car wash costs
Strategic Market Plan 4P's
Product
Product Definition
Car wash and car care
Product Range
Car Exterior Wash
Car Polishing
Car Waxing
Interior vacuum
Price
Car wash: RM15-25
Interior vacuum: RM5
Detailing: RM150-300
Place (Marketing channel)
Equipment storage
Owner's house (near Sunny Hill area)
Use rented property in the future to store equipment
Washing
Go directly to customers' premises for car wash services
Promotion
Discount vouchers
Collaboration with shopping malls to advertise
Advertising stickers, banners, posters
Social media
Active posting
Customer service & interaction
Market Structure, Industry & Market Share
Monopolistic competition
Similar services with competitors
Slight differentiation
Company has higher market power due to convenience
First mobile car wash industry in Kuching
Market Share
66% prefer washing cars in car wash shop
34% prefer home wash
As first mobile car wash in Kuching, Breach & Clean can appeal to 30% of the car wash center customers due to convenience.
Unique features
Convenience of mobile car wash
Trained employees for
professional services
Affordable prices &
packages
Finance
Capital
Loan from bank
Partnership contribution
Self contribution
Operations
Quality
Employees are trained properly before sending out for servicing.
One professional employee and one trainee is sent together to conduct service for supervision and integrity to maintain good efficiency and ensure good quality service.
Customers encouraged to give feedback on service satisfaction through website for improvements to be implemented in the future.
Design of Goods & Services
House of Quality
Sustainability (Life Cycle Assessment)
Car wash services have concern of mixed chemicals and effluents that might harm the environment when discharged to waters.
Use of vehicles in mobile car wash contributes more to greenhouse gas emissions by the business.
Process
Production Process & Flow Chart
Process Strategy (Volume & Variety)
Process Focus
Low volume, high variety
Multiple choices for customers on type of car service
Choose between standard and high quality car wash with different shampoo quality
Choose to opt for interior cleaning or waxing and polishing services
Premium services like polishing and waxing is very time consuming
Equipment & Facilities
High pressure washer 120 bar
Vacuum cleaner 1600W
Extension wire box 10m
Pail
Production Level (Capacity)
Normal car wash + interior cleaning - 8 cars per day
Added polishing & waxing - 4 cars per day
Staff
Starting of business, employ 5 staff. Each for social media, accounting, skilled service coach and 2 service trainees
Supply Chain
Raw Materials/Inputs
Car wash shampoo (standard & high quality)
Sponge
Liquid car wax
Car surface clay kit
Sponges
Micro fiber cloth
Suppliers
Online stores
Hardware Stores
Supermarkets
2nd hand car dealer
Inventory
Purchasing Policies
Estimated Order Quantity
The amount of the water pumps, vacuum cleaners, wire extension boxes, micro fibre clothes, sponges, water buckets and the vehicle will double up for each increment of an average of 80 customers per week
The maximum amount of vehicles that will be purchased for this business at the moment will be limited to 5 only, this will cease the purchase of water pumps, vacuum cleaners, wire extension boxes, micro fiber clothes, sponges and water buckets as well
Additional inventories are bought and stored for back up in case any of the items are found to be faulty.
Reorder Point
All equipment and items have lead time of one day
Estimated of maximum 8 washes per day
One day use 400ml of shampoo
Reorder shampoo when remaining stock is 400ml
Warehouse
Store items and equipment in higher ground to prevent damage of expensive items in the case of flooding.
Shelves will be built for tidiness in material sorting. The shelves will be marked with labels on the name of the item for clear differentiation.
The warehouse will be kept under cool and dry conditions to ensure all electrical items and consumables do not deteriorate quickly.
Layout
Process-oriented layout
Location
3rd mile area
Aiming service in residential areas
In city area for easy access to residential customers
Close to hardware shops and supermarkets for easy stock purchase
Located in owner's house, so no additional rent expenses is required.
Considerations
Pricing
Pricing of the services displayed should be standard and fair. The pricing for different car size categories should be clearly-established before starting the business to avoid confusion and unfair pricing. The summarized display should be displayed in advertisements, and social media pages, and customers should be encouraged to share their car models to employees so that a clear pricing can be quoted.
Anti-competitive behaviour
One of the anti-competitive behaviors that are discouraged is cartels. The company cannot agree with other car wash companies to fix prices, inflating prices and reducing choices which can lead to damaged economy. Besides that, it is illegal to convince customers or suppliers to refrain from buying from or selling to a competitor unless the action benefits the public.
Safety
Staff must wear appropriate gear such as safety boots to prevent workplace accidents like slips and falls.
Make sure extensions wires and electrical equipment such as vacuum cleaners and pressure washers are high quality and durable for long continuous use.
Packaging & Labeling
Entry strategy
New business Registration under name
"Breach & Clean"
, where application includes name of business, nature of business and business commencement date.
Full diagram can be found in:
https://coggle.it/diagram/W6xR81uwSznGKObV/t/door-to-door-car-wash-business-plan/b79062cb5ad30aa9f8f934dddae5effceb093492c4c257c08a99ccf4e0e7074a