1.

Executive Summary

The Auto Shine Express car wash is a dynamic start up. Unlike other car wash companies Auto shine express offers high quality automatic car wash service. It is an answer to customers demand for an automatic car wash which would help them to save their time. In last 10 years, the population of cars has increased many fold. In todays context most cars are driven by the owners themselves and would any day prefer to have a quick car wash, rather than leaving the car the whole day at service station. Dhaka is a good market for a car wash business since it has almost 250 rain free days. The concept of an automatic car wash is an innovative one of its kind. It provides a new experience to the customers. It is different from the other car washes which is completely manual in nature. It is being started as a partnership company. The Auto shine express is planning to start its operation primarily in Airport road. Once it is establishes it would expand its functioning to other parts of the Dhaka. Since its the first one of its kind it has a wide market to capture. The competitors for the company are the traditional car washes which offer full service. The Auto shine Express mainly targets middle class, upper middle class and upper class people having cars who need a quick service. The initial capital of 7000,000 lakh was raised as internal capital and through loans. The company will start functioning after 90 days of obtaining the finance.

1|Page

2. Business concept:
2.1 What is automatic car wash (Description of the service) Automatic car wash is the modern way in which the cars are not washed by hands. In this new technology the cars are washed by a sophisticated high impact pressure jet wash technology. 2.1.2 Reason for going in this Business? To start with a new business, is always asking the entrepreneur to deeply ponder over all the dimensions of profit and loss (Profit being the first priority). The canvass of business, its magnitude depends upon the scale of investment that is i.e. the capital investment, nature of business, suitability and off courses countless other areas. Priority with an entrepreneur will always be to have his investment back through the selected business with the reasonable margin of profit. A car wash enterprise is a profitable idea, and having thought over it with all my human capacity, I have decided to go for an automatic car wash. I fully understand, the project requires energy and energizer.

2.1.3 The Auto Shine Express car washing Co. (Description of the firm): The Auto Shine Express car washing co will be a new business opportunity in Bangladesh. This modern technology of car wash will provide the car owners a car wash for which they will not need to wait a long time. The Auto Shine Express car washing co. will wash a car within a few minutes. It will use latest proven and successful technology in washing vehicles. It is a so fast process that the owner or drivers need not to leave the car. They can just wait a few minutes and take the delivery of a fresh and clean car. In this process nobody will use hand to wash the car. The total process is automated and the machines will do the duty of cleaning instead of the hands of the car washing people. At present, we are Bangladesh based service provider of car wash, bus wash and truck wash. We have also developed a new two wheeler wash system, which can accommodate all types of two wheeler vehicles. Our equipments use high-pressure water for cleaning. We also use friction brush type of equipments with specially made soft brushes that dont scratch our customers car paint.

2|Page

2.2.1 Mission Auto Shine Express is dedicated to providing its customers the ultimate car care experience. Focusing all of its energy and resources on customer satisfaction and value, while providing owners and employees an excellent reward. 2.2.2 Vision To become so value oriented towards customers so that every vehicle should pass through our bay. To be pioneer in car wash domain.

2.2.3 Goals Not to have a single dissatisfied customer. Expand to two more location after three years. Create a steadily growing net profit margin. Control of waste Maintenance of equipments. Financial management Personnel management

2.3 Core competency and sustainable competitive advantage We start with a critical competitive edge: there is no competitor of Save Time Auto Wash. Auto shine express will meet the unfilled need by providing customers with reasonable priced and high service car wash. Customers will be attracted because of our atmosphere, pricing, and facilities. We maintain our focus on customer service, speed, quality and reliability. They will be welcomed as part of family Competitive advantage: Larger and newer facility Shopping and commercial area is near of site Location with regard to vehicle flow

3|Page

3. Product or service
3.1 Design of service Auto shine express seeks to fulfill the following benefits that are important to the customers: Exemplary customer service: The target customers have money and are used to having excellent customer service. They will not regularly use SR unless they receive excellent service. High quality washes: The target market values a higher quality washes for their upper-end cars. Convenience: The hours of operation, as well as the time needed to provide the service must be convenient and fast respectively, to gain market share. A successful car wash business, then, will have to choose its niche market carefully, demonstrate its skill and cost-effectiveness, and build a loyal customer base. Once the basic ingredients of success are proved, the business could consider expanding on-site or into another area.

3.2 Technical profile The auto shine express itself will be the owner of a chosen land. The land is well secured by a boundary wall surrounding the project area. The project area will be fully computerized security system that is all the security system is totally automated. There are two buildings and a coupon issue counter in the project area. In the first one the official work will do. The second one is the worksite. The actual car washing will do over there. There will be also a cafeteria and customer waiting room in the project area. There could stand maximum 7 cars at a time in the parking area including a car which might be in the washing system.

4|Page

Fig-1: Lay out plan of auto shine express car wash

4. Market research and analysis

4.1 Industry Analysis Analyzing the industry of car wash in Bangladesh is not much possible because it is on its verge of emergence. But study about current available industry scenario shows that the car wash industry has many new opportunities coming up in the near future. This is because of the entry of major automotive makers around the world into the Bangladesh market. For car servicing or wash of these modern and costly vehicles, it requires an advanced and quality car service center. So a car wash center like Auto Shine will definitely shine in the car wash industry. 4.2 Market Area At first we had to survey and collect data to select the market area. We have surveyed in different places and different people. We took their opinion about when and where they want the service. We have asked the Municipal Corporation of our city, if they are planning to start some project which may affect the car population in our business locality in near future (Building of fly over, by - pass, etc.). At last we have decided that we will establish our Auto Shine Express car washing company on Airport road. Because it a main road. Owners of the bus, truck, private car, every vehicle, which are our clients, will be available in this road very much.

6|Page

This place is also near to Gulshan, Banani, Baridhara, Uttara, Mohakhali etc areas. We all know that the people living in these areas are almost all rich and have a standard lifestyle. So, they can afford and they will be willing to get our service for their private car. 4.1 Market size: All the people who have a private car and all the bus and trucks are our target market. As we are the only provider of this service in our country, we can have a monopoly market here. We are expecting to have approximately 8000-9000 taka revenue per day from our washing plant. 4.2 Target customer: We are targeting all the people who have a car to be our customer. Like, the private car owners are our customers. All the private cars in Dhaka city are our expected targets. We will try to get all of them. Again, we do not only serve the private cars. We have the capacity of washing the buses and trucks. All the buses and trucks are also our target customers. They can wash their car from us within a few minutes. So there will be no waste of time for the clients. Demographic Segmentation Demographic segmentation includes: a) Age We can segment our market on the basis of age as a fixed percentage as follows: Age 20-27: 30% of this segment of age will be using our services. This range includes youngsters who are seeking education. Age 28-50: 50% of this segment of age will be using our services. This range includes businessmen, executives and other professionals. Age above 50: 20% of this segment of age will be using our services. This age includes retirees. b) Gender We can also segment our market on the basis of gender as a fixed percentage. In Peshawar, males are more likely to be served by us than females due to cultural factors. So weve estimated that: 80% Males will be using our services. 20% Females will be using our services.
7|Page

c) Occupation Similarly we can divide our market on the basis of occupation as well. Based on occupation, these people are likely to use our services: Executives Professionals/Businessmen Luxury car owners College and University students Others

All these segments are the potential customers of our venture. d) Income All those people, whose income is greater than 30,000, are likely to be served by us. Psychographic Segmentation

Psycho graphically, we can divide our market on the basis of: Lifestyles: consider cell phones, a decade ago only 2 out of 10 persons had cell phones. But the trends are changed. Every single person has a cell phone. Similarly, the trends for cars have also changed. Firstly, there was only one car in a home, but now they are going to 2 or 3 are there. One for husband, one for wife, and one for the son. Lifestyles have been changed. So families of this kind of lifestyles are also more likely to be served by our venture. Because they have more cars and they cant wait for 40 minutes 4.3 Competition: As Auto Shine Express Car Wash co. is new and innovative industry in our country, yet we do not have any competitor exactly like us. But there are several petrol pumps, which are providing this service manually. These petrol pumps are our main competitors now.

5. Market plan
8|Page

5.1 Marketing Strategy

5.1.1 Product or service As our venture is a service venture so it doesnt have any tangible product. But we can add these things into our product category: Brand Name: The Auto Shine Express Car Wash Allowances We shall issue membership cards and deliver discounts on those cards. A free car wash for every 4 washes in a month.

Quality service We will provide the best quality as compared to manual car wash system and so will make loyal customers by making a perception that auto car wash is better than the other one. 5.1.2 Pricing: As we will provide service to different type of vehicles, the pricing is also different. The main pricing forms are given below. For private cars, we will charge Tk. 250 per car. For small trucks and buses we will charge Tk.300 per vehicle. For large trucks and buses we will charge Tk.350 per vehicle.

5.1.3 Advertising and promotions: For advertising we have to use several media. Because its a new business in our country and people are not aware of this service yet. So we have to advertise more to make them aware of this new opportunity of car wash. The process of our advertising is given below. We will advertise on television.
9|Page

We will advertise on newspapers. We will send leaflets to the transport companies, so that they could be interested in our service. We will advertise on the billboards.

5.1.3 Sales and credit terms: No credit is given by the Auto Shine Express Car Wash co. After washing the car, the customer will check the car for his/ her satisfaction. If there is any problem or objection then that will be solved. And finally the payment will be done before the delivery of the car. Though we do not give any concession, but there is an option. That is like a company agrees to wash their 20 buses 1 times in a month, and then there will be a 10% discount, and individual car owners get 1 wash free for 4 wash in a month. Also some facilities will be given to the regular customers. 5.1.4 SWOT analysis: Strength: It uses latest, proven and successful technology. It is a contact less or touches free system. It uses internationally available and reliable components. It requires a very little time. It gives the car a shiny and new look. Weakness: This is not a well-known process yet. This process is little bit costly than hand wash. There is only one washing zone. Many cars may find it distant from its way. Opportunity: There is a scope for expansion of new branches.
10 | P a g e

 As it is a technology-based age, this process might become more popular. In this new technological time people might find the hand washing system obsolete very soon and realize the automatic car wash only solution. Threat: People might not take this new change very soon and they might prefer to go to the hand wash system. It might be very costly to make people aware of this new opportunity. Many new companies might find it profitable and enter into the business.

5.2 Points of Difference The main features that differentiate Auto Shine express from other competitors are: 1. The quality of service given with highly equipped machines. 2. Quality service at a minimal price. 3. Convenience to customers to choose from the different packages available. 4. Eco-friendly service process. 5. The location of the enterprise. 5.3 Positioning Auto Shine express will be positioned in the minds of people who own a car and is looking for a quality car wash service which consumes less time, for a fair charge. This positioning is done so that people who are in need of a car wash and have less time can always go for Auto Shine express. The Tagline of the enterprise is Shiny car every day.

6. Manufacturing or Operation
6.1 Location Analysis

11 | P a g e

Location is a very important factor for establishing a new company. The location must be convenient and appropriate. Once the locality is selected, 2 - 3 lands will be looked for, where Car Wash may be started. 6.1.2 Land Selection: Land selection is a critical part of the planning Evaluation should be done on the basis of shape and space, frontage, topography, street characteristics etc. 6.1.3 Basis of evaluation of the land: Evaluation should be done on each piece of land according to following ideal criterion. - Shape and space

Rectangular Enough space for Customer Car parking and any future projects if desired. No physical obstructions like electric or telephone poles, guy wires, etc. Easy turning of car into the land, which out much guiding hassles Leveled and even (if uneven, can be excavated) Connecting street must be flat at least 100 feet in each direction. (If Street in not flat, post big signboards so your car wash is visible from distance. Motorists can plan well in advance about having a car wash) Busy Street Turning, corner plot No Exit restrictions (One Way etc.) The site on the side by which the majority of the drivers pass on their way home. Near a traffic signal Near a Shopping Mall, Cinema Theatre, Gas Station, Car Service Station, Public Place, etc.

- Frontage

- Topography

- Street Characteristics

6.1.3 Selected Land: After analyzing various criterion we have choose land for Auto Shine Express Car Wash co. in the area of Airport road in Banani of Dhaka Metropolitan area.
12 | P a g e

6.2 Description of premises and facilities: The premise will be owned by the Auto Shine Express car washing company. It will take certain amount of money to by the premise. The land will buy by the company name. That is Auto Shine Express itself will be the owner of that land. The land is well secured by a boundary wall surrounding the project area. The project area will be fully computerized security system that is all the security system is totally automated. There are two buildings and a coupon issue counter in the project area. In the first one the official work will do. The second one is the worksite. The actual car washing will do over there. There will be also a cafeteria and customer waiting room in the project area. There could stand maximum 7 cars at a time in the parking area including a car which might be in the washing system. 6.3 Operational process The process of the service will be very simple. The cars will enter into the machine, and water will be sprayed. After that the machine will wash the car with necessary washing solutions and detergents. Then the car will be washed again by water. Finally the car will be dried by hot air and the car will come out, neat and clean. 6.3.1 Automatic high-pressure car wash: The Auto Shine Express car washing co has a fully automatic system. It has a three step washing sequence. The first pass is high-pressure pre- wash which has wetting chemicals to wet dirt on car surface. The second pass is soap application process by special nozzles. The third pass is high-pressure rinse, which removes all the dirt, off the car surface. The horizontal water nozzles bank follows the contour of the vehicle. A high-pressure plunger pump assists the main washing arch for cleaning the tire and rocker panels.

6.3.2 Pre wash arch:

13 | P a g e

This is special spray arch, equipped with low discharge, wide coverage nozzles. The pre wash arch sprays water initially over the vehicle to soak the hard mud stains, salt deposits, bird drippings etc.

6.3 Soap system: Soap system sprays soap and chemical formulation over the car surface. Soap spraying assists the high-pressure washing and enhances the cleaning value.

6.4 Contour Following Nozzles: The horizontal bank of nozzles follows the contour of the car, whichever it is. The horizontal bank always maintains, safe 300 mm distance away from the car surface. The water jets always adjust their angle according to the vehicle, i.e. at beginning; the jets face the bonnet and the wind shield for better cleaning action and so on.

14 | P a g e

6.5 Wheel and rocker panel wash system: Special high-pressure nozzles located at wheel level remove darts from hard to clean areas near the wheels. Special plunger pump, which enhances the pressure to knock off dirt from wheel and rocker panel areas.

6.6 Wax systems: After the high pressure rinsing is over, wax is sprayed on the vehicle surface to give them a shiny finish. There are two types of wax systems- silicon wax system and triple foam wax system. Anyone can be provided as needed. These two systems are described in the next page: Silicon wax system: silicon wax is sprayed on the car surface. The silicon wax is sprayed all over the car using special atomizing nozzles, after the washing cycle. Although wax formulation gives instant shine and protection, in addition, it softens the hard rubber wipers and beading of the car. Secondly it is water repellant and hence avoids staining of glasses due to droplet formulation. Triple foam wax system: Triple foam wax commonly known as tri wax, which contains three-colored wax, which is sprayed on the vehicle. The foam created on the vehicle surface gives a sense of satisfaction to the customer, for which he is paying for. The triple foam wax is sprayed by special foam generating nozzles. A high-pressure pass washes off the foam created on the vehicle surface. 6.4 Raw materials and supplies: As raw material, we would mainly need the detergent and other washing solutions. We would like to have a regular supplier of our needed materials.
15 | P a g e

7. Organizational Plan
7.1 Ownership The Auto Shine Express car washing co would be structure with the articles of partnership. All the directors would have equal shares. The features of the companys ownership are the following: Industry would be created with the article of partnership The talent of the partners helps the business to grow The business and contracts of the partners have flexibility More capital in the industry Helps to develop cooperation and natural trust There will be unlimited liability on each partner Danger of disagreement is there -- Divided authority

7.2 Organizational Structure The specialty of the Auto Shine Express car washing co. is it is fully automated. So a very little number of employees are needed to run the business. The organizational structure is given below: Managing Director Ruzina Akhter

Operational Manager Fahima Akhter

Marketing Manager Sohana Tanzim

Finance Manager Ayesha Siddika

Machine Operator Auto Shine Express is a Legal Partnership type of Business. There are four Partners who equally own this business.

Manager, Accounts

16 | P a g e

Each Partner contributes Tk. 10, 00,000 into the Business. According to the Partnership deed all the members have unlimited liabilities. All the Members are Principal and Agents of each other. No member can withdraw or Transfer his/her share without the consent of other Members. No Partner can start the same business for three years.

Managing Director (Ruzina Akhter): Due to his good leadership skills and academic abilities, all the members have chosen him as the MD of the firm. He is good in Management and handling of all business operations. Operational Manager (Fahima Akhter) He is a skillful Person and will check the operation of the car wash. He will be responsible for the Repair & Maintenance of the Machinery & all other Assets. He knows much about cars and other Machinery and also knows how to look after these.

Marketing Manager (Sohana Tanzim) He has good Communication skills and hence hell be the Marketing Manager of the firm so we believe that he will be sincere enough to deal with Customer and Position the firm in consumers mind in a good way. Finance Manager (Ayesha Siddika) He is a finance expert and will be handling the finance section of the firm. He always has shown good result in his Academic career. He is master of numbers.

In addition there will be permanent two cleaner and two watchmen and also some temporary worker who will work on daily basis. 7.3 Management Team

17 | P a g e

The four founders of the Auto Shine Express car washing Company will be the main authority of the company. All of them are the member of board of directors and Ms. Ruzina Akhter will be the Managing Director of the company.

7.3.1 Executive Team There are three partners who control the overall operation of the business. Each one of the owners has their own functions in the operations of the business. The managers have divided the duties to maintain the business, which will include employee hiring, building, property and equipment maintenance, marketing activities, advertising and other promotion activities. 7.3.2 Title and Responsibilities:

The agreement of our company will indicate the employees title, responsibilities, and line of report. If these could change, the agreement should say how this would be implemented, and what the outer limits are: or such other work suitable for a senior executive as the board of directors may request. Understandings regarding Board of Director participation should also be spelled out. 7.3.3 Compensation and Incentives:

We will accurately state the initial compensation package. It will be adjusted with the base salary. If the employee is eligible for one or more bonuses then we will provide that with the salary. 7.3.4 Benefits and Fringes:

Our agreement will little more than state the amount of annual vacation, and assure provision of health, disability, life insurance coverage in an employer-sponsored program, as well as participation in its retirement benefits. However, particularly for the senior executive, more detail is required. Executive benefits may include enhanced life and disability insurance coverage, defense and indemnification coverage, participation in non-qualified retirement plans, change of control protection and so forth.

7.3.5 Employee Agreement: Not long ago, key personnel could be hired with a handshake; the unwritten compact between employer and employee included mutual expectations of loyalty, trust and long-term commitment. Now, as companies find they must depend on increasingly transient executives, managers and technical employees, all parties are asking for protection in the business
18 | P a g e

equivalent of the prenuptial the employment agreement. Employment agreements take many forms from sign and return offer letters to fully comprehensive contracts. What these agreements should accomplish to one extent or another is to allow the parties to begin and end the employment with a clear understanding of their rights and responsibilities. Set forth below are three types of terms employment agreements might include: Those setting forth the expectations of the parties regarding the employment, e.g., job duties and compensation; those intended to protect the companys interests; and those dealing with terminations, with and without cause. Getting It Right at the Outset An employment agreement should reflect accurately the understandings of the parties upon which the employment relationship is based. Clarification of open or uncertain issues is in the early stages. 7.4 Legal Structure: The Auto Shine Express car washing company will establish under the company law (1994) which will fully owned by the four members of the board of directors. They are the only shareholder and beneficiary of the company. No share will offer to the share market as it will be a private limited company. No full time legal advisor will be appointed. They will hire when it is necessary. Like, in the beginning a legal firm will be hired to complete the formalities to establish the company. All employees are hired on a permanent basis. All employees have an agreement with the company about their service. Some workers will be hired on daily basis when the company will need. While good feelings prevail is much easier than sorting out vagueness during a difficult exit. Note that the offer letter is often only a shorthand statement of the terms. Additional thinking, and writing, is often required to produce a satisfactory definitive agreement. Key areas to consider include:

7.5 IMPLEMENTATION The entire aforesaid marketing plan has to be implemented in a very organized way. The three partners have a good business as well as personal connections. Therefore one to one marketing can be implemented in business level. The quality of service will create loyal and repeated customer. This also gives rise to word of mouth marketing in immediate environment. Emphasis is given on creating a system that is both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum. In sales care is given to each vehicle to value the customer as a friend of Auto shine. Continuous sales forecast is done on targeting the segments who want to keep their car clean and looking good year round.
19 | P a g e

Implementation plan: Completion of business plan Fulfilling legal and deposit formalities Set up infrastructure Hire car wash staffs Hire administration staff Open business Promotional works Follow up

7.6 Evaluation and Control Continuous evaluation is necessary for sustaining and developing the business. There must be evaluation and control system for all major functions of business like: Revenue and unit sales, Expenses, Customer feedback and other major self and competitive activities. The market is ever changing, since there is a large market to capture a lot of competition may arise in the market. A continuous evaluation of competitors must be conducted. As technologies develop day by day the business must be updated accordingly. The future of the business mainly depends on evaluation and control.

8. Financial Plan
The financial plan is the most important plan in the whole business plan. It tells us about how to use the funds and how to allocate them systematically. It also tells that how to attract the investors and lenders to generate funds.

Startup Cost A startup cost pro-forma tells about the foremost main costs that are incurred in starting the venture. So, the main costs that our business will require are as follows.

20 | P a g e

Description Machinery Installation Charges Office Supplies Operating Supplies Prepaid Insurance Advertising Land (Security) Furniture Computer Legal Fee (Registration) Offices Building Cash Required Total Cost

Amount TK. 4,000,000 400,000 5,000 60,000 45,600 120,000 1,000,000 25,000 35,000 5,000 700,000 604,400 7,000,000

21 | P a g e

8.1 Source of Capital

Equity Financing The Startup costs for the venture is Tk. 7,000,000 out of this amount each partner will pay Tk. 1050,000 (4,200,000)

Debt Financing The Remaining Tk. 2,800,000 will be borrowed from bank with following rules: Total Maturity date is 8 years. The interest rate is 13%
22 | P a g e

As well be making losses for the first few years of our operations, so the bank has cushioned us that well start to pay the debt after 3 years.

8.2 Break-even Analysis

Its a point where a firm or a venture neither incurs a loss nor a profit. We calculated the amount of cars that well be washing in order to break even as follows: We calculate the fixed cost which amounted to 207000. Our average selling price per car wash is 300 (average sales price) and the variable cost per car is 165. By using the formula of B.E, we got the number of cars (at break-even) as follows:

TFC B.E (Q) = Selling Price - Variable Cost 207000 B.E (Q) = 300-165 207000 B.E (Q) = B.E (Q) = 135 1534 Units

23 | P a g e

So, in order to break even, we should wash 1534 cars in a month. Any one additional car wash will result in a profit. If we multiply these units (cars) with our average selling price per car wash (i.e.300), well get sales volume at break-even that amounts 613,200. In other words we can define our break-even point as when this much (613200) worth of sales are done, our venture will be in break-even point.

24 | P a g e

8.3 Income Statement This statement will tell us about the profit and losses that our venture will incur during its operations.
Jan Sales Cars Per Day Sales Per Month 25 300,000 52,000 5,000 60,000 150,000 120,000 56,250 48,000 16,667 3,800 511,717 (211,717) Feb 30 360,000 52,000 5,000 72,000 150,000 120,000 67,500 57,600 16,667 3,800 544,567 (184,567) Mar 35 420,000 52,000 5,000 84,000 150,000 100,000 78,750 67,200 16,667 3,800 557,417 (137,417) Apr 40 480,000 52,000 5,000 96,000 150,000 90,000 90,000 76,800 16,667 3,800 580,267 (100,267) May 42 504,000 52,000 5,000 100,800 150,000 90,000 94,500 80,640 16,667 3,800 593,407 (89,407) Jun 45 540,000 52,000 5,000 108,000 150,000 75,000 101,250 86,400 16,667 3,800 598,117 (58,117) Jul 50 600,000 52,000 5,000 120,000 150,000 60,000 112,500 96,000 16,667 3,800 615,967 (15,967)

Aug 55 660,00 0 52,000 5,000 132,00 0 150,00 0 60,000 123,75 0 105,60 0 16,667 3,800 648,81 7 11,183 11,183
0.0169 1.6944 4.3556

Sep 60 720,000 52,000 5,000 144,000 150,000 50,000 135,000 115,200 16,667 3,800 671,667 48,333

Oct 65 780,000 52,000 5,000 156,000 150,000 40,000 146,250 124,800 16,667 3,800 694,517 85,483

Nov 70 840,000 52,000 5,000 168,000 150,000 35,000 157,500 134,400 16,667 3,800 722,367 117,633

Dec 75 900,000 52,000 5,000 180,000 150,000 35,000 168,750 144,000 16,667 3,800 755,217 144,783 = = = = = = = = = = = = =

Year 1 17760 7,104,000 624,000 60,000 1,420,800 1,800,000 875,000 1,332,000 1,136,640 200,004 45,600 7,494,044 -390,044

Year 2 21600 14,400,000 708,000 72,000 1,620,000 1,800,000 700,000 1,620,000 2,304,000 200,004 45,600 9,024,004 5,375,996 1,128,959

Year 3 24000 17,280,000 708,000 90,000 1,680,000 1,800,000 650,000 1,800,000 2,764,800 200,004 45,600 9,692,804 7,587,196 1,593,311 5,993,885 0.3469 35% 5.19%

Operating Expenses: Salaries Office Supplies Operating Supplies Rent Advertising Utilities Interest Depreciation Insurance Premium Total Expenses Gross Profit Less: Income Tax Net Profit Net Profit Margin NPM in % Average Increase (211,717) (0.7057) (70.5723) (184,567) (0.5127) (51.2686) 19.3037 (137,417) (0.3272) (32.7183) 18.5503 (100,267) (0.2089) (20.8890) 11.8294 (89,407) (0.1774) (17.7395) 3.1495 (58,117) (0.1076) (10.7624) 6.9771 (15,967) (0.0266) (2.6612) 8.1012 48,333 0.0671 6.7129 5.0185 85,483 0.1096 10.9594 4.2464 117,633 0.1400 14.0039 3.0446 144,783 0.1609 16.0870 2.0831 = =

(390,044) -1.571536962

4,247,037 0.2949 29% 29.49%

* The Machinery has an estimated Useful life of 20 years and the venture depreciates it by Straight Line Method. ** The Company will be paying General Sales Taxes according to Govt. Rules and Regulation which is 16% *** The Company will pay No Tax until it is in Profit 25 | P a g e

As in the breakeven analysis we determined that when we will serve 1534 cars and our sales will be tk. 613, 600 monthly so we will be at Breakeven and from income statement it is clear that our break-even will be in August.

8.4 Cash Flow Statement

A statement of cash flow tells about the cash receipts and disbursements (cash inflows and outflows). The statement of cash flow of our venture is as follows. Every 2% of our sales will be comprised of receivables, so well not be recording them in this statement as mentioned that it only deals in cash inflow and outflows.
Receipts: Sales Disbursements: Machinery Salaries Office Supplies Operating Supplies Rent Advertising Utilities GST Insurance Premium Installation Charge Land (Security) Furniture Computers Legal Fee Office Building Total Disbursements: Cash Flow Beginning Balance Ending Balance Jan 294,000 4,000,000 52,000 5,000 60,000 150,000 120,000 56,250 48,000 3,800 400,000 1,000,000 25,000 35,000 5,000 700,000 6,660,050 (6,366,050 ) 7,000,000 633,950 Feb 352,800 0 52,000 5,000 72,000 150,000 120,000 67,500 57,600 3,800 0 0 0 0 0 0 527,900 (175,100 ) 633,950 458,850 Mar 411,600 0 52,000 5,000 84,000 150,000 100,000 78,750 67,200 3,800 0 0 0 0 0 0 540,750 (129,150 ) 458,850 329,700 Apr 470,400 0 52,000 5,000 96,000 150,000 90,000 90,000 76,800 3,800 0 0 0 0 0 0 563,600 (93,200 ) 329,700 236,500 May 493,920 0 52,000 5,000 100,800 150,000 90,000 94,500 80,640 3,800 0 0 0 0 0 0 576,740 (82,820 ) 236,500 153,680 Jun 529,200 0 52,000 5,000 108,000 150,000 75,000 101,250 86,400 3,800 0 0 0 0 0 0 581,450 (52,250 ) 153,680 101,430 Jul 588,000 0 52,000 5,000 120,000 150,000 60,000 112,500 96,000 3,800 0 0 0 0 0 0 599,300 (11,300 ) 101,430 90,130 Aug 646,800 0 52,000 5,000 132,000 150,000 60,000 123,750 105,600 3,800 0 0 0 0 0 0 632,150 14,650 90,130 104,780 Sep 705,600 0 52,000 5,000 144,000 150,000 50,000 135,000 115,200 3,800 0 0 0 0 0 0 655,000 50,600 104,780 155,380 Oct 764,400 0 52,000 5,000 156,000 150,000 40,000 146,250 124,800 3,800 0 0 0 0 0 0 677,850 86,550 155,380 241,930 Nov 823,200 0 52,000 5,000 168,000 150,000 35,000 157,500 134,400 3,800 0 0 0 0 0 0 705,700 117,500 241,930 359,430 Dec 882,000 0 52,000 5,000 180,000 150,000 35,000 168,750 144,000 3,800 0 0 0 0 0 0 738,550 143,450 359,430 502,880 = = = = = = = = = = = = = = = = = = Year 1 7,104,000 4,000,000 624,000 60,000 1,420,800 1,800,000 875,000 1,332,000 1,136,640 45,600 400,000 1,000,000 25,000 35,000 5,000 700,000 13,459,040 (6,355,040 ) 7,000,000 644,960 Year 2 14,400,000 0 708,000 72,000 1,620,000 1,800,000 700,000 1,620,000 2,304,000 45,600 0 0 0 0 0 0 8,869,600 5,530,400 644,960 6,175,360 Year 3 17,280,00 0 0 708,00 0 90,00 0 1,680,00 0 1,800,00 0 650,00 0 1,800,00 0 2,764,80 0 45,60 0 0 0 0 0 0 0 9,538,40 0 7,741,60 0 6,175,36 0 13,916,96 0

26 | P a g e

As our breakeven is in august so we will be having positive cash flows in August as well.

27 | P a g e