Solution
This business plan entails the establishment of Ashnit Car Wash Ltd in Goodlands, Mauritius. The area is selected due to a few car washing services and the presence of several car owners and local businesses. The start-up is expected to cost 5,485,000. It will comprise of 9 employees working seven days a week from 7:00 am to 9:00 pm. Ashnit Car Wash Ltd will offer various services, including polishing, waxing, engine washing, under washing, overall wash, and interior cleaning. The business will target car owners and local companies, and there is no discrimination of the customers based on diversity affiliation. The company’s main competitors are the petrol station and other car washing firms as direct rivals, while indirect rivals will involve the car owners washing their vehicles. The marketing channels will include social media, television, radio, flyers, and billboard. The business employs the sustainability philosophy, and the marketing niche is the technology and diversity in services.
Table of Contents
2.0 You and Why You Are Starting. 5
4.1 The Route to Market and Launch Marketing. 10
5.2 Suppliers and Third Parties. 10
1.0 The Business Idea
There is an increasing number of cars in Mauritius. Unlike before, where a vehicle was considered a luxury, the contemporary society perceive the vehicle as a necessity and convenience transport means. In Mauritius, the number of registered vehicles as of 2019 December was 580,629, which was a 4.4% rise compared to the number in December 2018, which was 556,001 (National Land Transport Authority, 2020). The opportunity is centred on the majority of people lacking sufficient time to wash their vehicles due to their busy schedule and lifestyle. Therefore, a car wash company may provide a suitable solution to these individual’s busy schedule and give the people value for their money. On the other hand, the car washing company should be sufficiently equipped due to the high risk of competitors and substitutes. Notably, there are several options that people may resolve to, including washing their vehicles at home and waxing, which only requires little cleaning for a long duration.
The business idea, therefore, is to establish a car wash company, referred to as Ashnit Car Wash Ltd. The business will be located at Goodlands, which is the North of the Island. The financing of the business will entail acquiring a bank loan and using personal savings. The core objective of this venture is diversification into business and establish another source of revenue. The business will also be essential in creating employment. The business is service-oriented and will provide interior and external cleaning services, among others.
The business philosophy for Ashnit Car Wash Ltd reads ‘In times of busy schedule and personal growth and development, let us take care of your little worries sustainably.’ This philosophy acknowledges the need for people to have assistance in their small and personal activities at a time when everyone is concerned with career growth and personal development. However, this is achieved sustainably. For the car wash company, sustainability is reflected in using recycled water, solar for powering some of the activities and minimizing wastage (Chen et al., 2014). The business values include integrity, honesty, and teamwork. The brand appeals to every car owner, regardless of their diversity affiliation. Besides providing car wash services, the company plans to have a waiting lounge for the customers with internet connections and coffee machines as they await their vehicles to be cleaned.
Currently, business analysis has been done, and various elements have been established. Critical data for the startup include the financial resources of Mur 5,485,000 and a total of nine individuals for the company. The financial breakdown is shown in table 1 below. Already, 25% of the financial requirements are available through personal finances and savings. The remaining 75% will be financed through a small and medium enterprises (SME) loan that will be obtained from MCB ltd. The human resources will include a total of nine workers, including one officer, who is in charge, four washers, and four interior cleaners. The business structure will involve the officer welcoming the customers, registering their vehicles in the ICT system, and addressing the financial aspects. The cleaners, both the interior and exterior, will collaborate to ensure the car has been cleaned to the client’s satisfaction.
| Requirements | Amount (Mur) |
| Land | 700,000 |
| Premises | 1,000,000 |
| Equipment | 3,700,000 |
| Washing and cleaning materials | 25,000 |
| Office Equipment and stationeries | 50,000 |
| Marketing and Advertising | 10,000 |
| Total | 5,485,000 |
Table 1: Financial Breakdown of the Car Wash Start-Up
2.0 You and Why You Are Starting
The motivation and inspiration for this start-up are centred on my professional, academic, and entrepreneurial skills. Professionally, I have worked in business management realm; thus, I have a vast knowledge of various aspects, including staffing and evaluation of the organisational environment. Academically, my bachelor’s degree and the current pursue of MBA provide sufficient foundation for developing and implementation of the car wash business.
My motivation is both intrinsic and extrinsic. Intrinsically, I am motivated to establish businesses for self-growth. I also anticipate putting the knowledge that I have obtained in both professional and academic activities into use through entrepreneurship. Extrinsically, I am motivated to assist in creating employment, especially now that the world is facing various challenges, including the economic downturn (Hunter. 2018). Besides, the unemployment rate remains significantly high, which should be addressed to promote the country and town growth. Another extrinsic motivation is my social environment, including family and friends, who also have personal businesses, besides being employed. This motivation is vital in ensuring personal growth and using their achievements as a learning opportunity.
My entrepreneurship skills are vast, including innovation and the evaluation of the current environment to establish a business opportunity. In this business, for instance, its inception was centred on observation and research. The Goodlands area does not have an executive car wash with the capacity to provide engine washing, waxing, and interior cleaning. In addition, there are individuals that have resolved to wash their vehicles at their backyard, which is a challenge most of the time due to personal commitments. I am competent in various skills, which can assist in managing the car wash business. These include management, interpersonal, teamwork, creativity, making informed decisions, and critical thinking. Most of this knowledge I have obtained through professional and academic activities.
3.0 Market Research
The National Land Transport Authority estimates that in 2019 December, there were 580,629 vehicles in Mauritius, which was a 4.4% rise since December 2018, where the number of vehicles was 556,001 (National Land Transport Authority, 2020). According to CEIC (2019), the number of registered automobiles in Mauritius has significantly increased. Various categories of automotive, including the car, dual-purpose vehicle, heavy motor vehicles, lorries, buses, and tractors, have risen since 2008 to date as shown in figure 1 below. The increasing number of car owners present a business opportunity to provide cleaning services. A busy schedule characterises the contemporary society through career development and growth. In addition, both men and women are in the working class category. The relevance of this information is to demonstrate the busy schedule of the society, thus lack of time for cleaning their vehicles. Also, car washing services are vital in ensuring the cleanliness and hygiene of an individual.
Figure 1: Number of Registered Vehicles, 2008-2019 (National Land Transport Authority, 2020).
Presently, several individuals have invested in car washing services. In Mauritius and around the Grand Bay village, there are more than 100 registered car washing firms. This demonstrates the fierce competition. An overview of Porter’s five forces, as shown in table 2 below illustrates a high threat of new entrants, bargaining power of the buyers, mild industry rivalry. In Grand Bay, the only competitor is 10 kilometres away from where Ashnit Car Wash Ltd will be set-up.
| Force | Intensity |
| Threat of New Entrants | High |
| Bargaining Power of Suppliers | Low |
| Bargaining Power of Buyers | High |
| Threat of Substitutes | Low |
| Existing Industry Rivalry | Mild |
Table 2: Porter’s Five Forces for Ashnit Car Wash Ltd.
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