Table of Content

Page
11. Annex
11. Annex
Reference
Addis Ababa Municipality
Addis Ababa Transport Authority

Gas Station Internet

 10.4 Projected Cash Flow

ADD'S CAR WASH

POROJRCTED CASH FLOW
CASH FLOW Y3
Cash from o rations
435
Cash sales O 572.00
h 3 500.00 42 968.0
042.00
Sub total cash from o
erati 494 .00
Ex enditure m_pperption
fro 737 800.00 782 580.00 859
Cash s endin 338.00
Lab. a 48,633.60 202,739.45 202739.45
ca al n 4 5 566.40 4 80.5 4 4 .55
Lease 20% aid 243 168.00 0.00 0.00
Tax 32 025.00 44 199
Pai 871.00 550.11
Net cash 150 373.40 269 409.55 232 912.44
10.3.2 Projected Balance Sheet

ADD'S CAR WASH

PROJECTED BALANCE SHEET
Assets

Cash 150 373.40 269 409.55 232 912.44

10 23 058.00 37
500.00 800.00
Su lies 50.000. 30,000.00 20,000.00
oo
T.CA 327 693.40 515 790.55 603 096.03
Lon -term Asset
Buildin 825.750.00 825,750.00 825.750.00
Acc.De 30 61 700.00 92 550.00
850.00
2.500.ooo.o
Machineries o
Acc-De 250 000 500 000.00 750 000.00
Office ui ment 25 600 25 600.00 25 600.00
Acc. De 7 533 15 066.00 22 599.00
1.215.840.0 1.215.840.0
Land leased
4.278.807.0
T.L.T Asset
4,606.500.0
Total Assets 4 5 3
Liab& Ca ital
48 633.00 202 739.45 202 739.45
Lon •term liab.
Bank loan 866,005.26 692,804.21 519,603.16
Lease a able 924 038.40 875 404.80 526 771.20
1.838.676.6 1,249,113.8
6 6 1
Total Liab.
 2.693.097.8 2.630.567.0
3
Paid in Ca 1
Retained Earnin 74 725.00 104,699.00 199
550.11
Total Ca ital
Total Liab. and

10.3 ProJected Financial Statement

103.1 Projected Income Statement
ADDIS CAR WASH
PRO ECTED INCOME STATEMENT
Descri tion
REVENUE

Income from sales servi e O 260 000

Income from sho Rent 36 000.00 39E600.oo 45 540.00
Total revenu
EXPENSE
Payroll 131 400.00 144,540.00 158 994.00
Deprecation ex ense 280 850.00 280,850.00 280 850.00
Utilities 41 400.00 45 540.00 50 094.00
Insurance 15,000.00 15,000.00 15 000.00
Su lies 550 000.00 577 500.00 635 250,00

Total o ration ex nse

Gross Income 193 350.00 236 170.00 354 352.00
Interest ex ense 86 600000 86 600.00 69 280.42
Income before I 106 750,00 149 570.00 285 071.58
Incom ax 30% 2 025.00 44 871.00 85 521.47
Net rofits 7 5.00 104 699.00 199 550.11
Net rofi Sal 6%
10. Financial Plan
10.1 Investment Cost of the project
The total invested cost of the proposed project is estimated to be Birr
of Local currency.

10.2 Source of fund

The project source of finance is based on owner's equity, 40% of the total
investment, and loan, 60% of the total investment.

The amount of funding is given below

Source Amount
O Owner equity 60 3,122, 768.0

O Loan 40
2
Tota

List of share per owner

N Amount
Name
o share
343 504.48 11
2 Abe e H/Mariam 530 870.56 17
3 Almaz Balcha 437 187.52 14
4 Edilu Dere•e 499 642.8B 16
5 Hussien Abdu 374r732.16 12
6 Kelemework delachew 405 959.84 13
7 Kidist Be ene 343 504.4B
8 Samuel Kassa 187 366.08 6
Total owner equity
3, 122,768.00
share
positioning it self as the premier car wash serving the Addis Ababa
automobiles especially Saris area. We have forecasted a 20% market
share. The business will generate a very high margin and a modest net
margin after year one and comfortable margin after year three, By year
three the business will have developed a respectable yearly net profit. The
revenue source of the project will be from sales of the car wash and
cleaning service and rent of additional rooms.

8. Organizational Plan
The planned project is going to have a partnership form Of ownership. All
the legal requirements starting fro registration will be conducted before
the business starts to run, All the eight partners have our background Of
being Accountants, Purchasers, Business men, Soccer Players, and so on,
According to our experience side by side to the Management stuff we all
will take part of the job to be done like paper works, Accounting works and
customer attractions.

9. Assessment of Risk
As we have tried to mention earlier the automotive industry is growing
than before in our country, Many people are having cars and following the
increase in number of residents of Addis Ababa city from time to time,
there is a need to increase transportation vehicles like minibuses, When
we watch Out the number Of tourists attracted to Ethiopia is also growing
which may cause an increase in need Of Land cruisers. As long as there are
a number Of vehicles in the town, there will be a high demand of car
washing and cleaning service in line with having a need to keep their cars
clean,
Since the switching costs in the car washing industry is low r we will be
aware and work hard to develop and keep repeat customers, In order to
avoid the loss Of customers to Other competitors we would put a great
deal Of emphasis on creating a system that is both fast and efficient which
will keep costs in terms Of time spent per car to a minimum,
Addis Car Wash Service will be owned by eight co-owners who are from diverse
back grounds and experiences. Currently all of us are taking Management
courses in a Degree Program which will enable us to run our business effectively.
We have planned to enter in to this business because the Car washing service is
not yet given in full capacity which left a big gap to be satisfied and even didn't
be counted as a separate business in our city at all, While more has to be done in
the area it is going to be a good profit making business, It will be legally
registered as a "Partner Ship" business which generate revenue for the
government in the form Of income tax despite the fact that it creates
employment opportunity.

6. Service Plan
The major machineries and equipments for a washing business are those
machines which lift up the car with its all accessories, High-power water pumps,
Generator which is used in times when the power is Off, washing towels and
powder soaps, The machine which is used for lifting up the cars (Large Crick) to
make them ready to be washed and the high-power water pumps will be
imported from abroad.

7. Marketing Plan
The existing supply of the service in the town is not satisfactory, The situation
has called for participation Of the partners to establish the above mentioned
project. The target markets are the potential users Of the service who are
categorized in the middle and high class society groups. Presently, the average
price charged to wash a personal automobile, Minibus and Land Cruiser is Br
45.00, 55.00 and 65.00 correspondingly. It is our plan to serve with a maximum
potential and efficiency and to reduce the time for washing a car to one hour &
Will charge tö wash a personal automobile, Minibus and Land Cruiser Br60.00,
70.00 and 80.00 respectively.
Since it is a new venture, we will be using price reduction for a month in addition
to word-of-mouth advertising and using brochures and posters, Our business is
Capital expenditure of the project
No. Description Local Costs Fore ign
Costs
 Land 1 215 840.00 1 215
840.00
Buildin 825 750.00 825 750.00
Machine 2 500 000.00 2 500 000.00
Office furn' r 3 100.00 100.0
Com uter 12 ooo_oo 12 000.00
Cash ister 8 000.00 B 000.00
Safe box 2 500.00 2 500.00
sub Total 2 067 190.00 2 500 000.00 4 567 190.00
2 Initial workin ca 637 423.00 637 423.00
ita
Total

5.4 Employees
For the high quality and timely efficient service well experienced workers will be
employed with a fair salary as compared to the expected job they will be doing, A
Manager, a total of fifteen workers for washing & cleaning cars, one employee
who act as a cashier & receptionist, a janitor and two security guards are needed
as professionals & supporting staffs.

Summary of Employees Salary

No. Description Monthly Total annual
salary r sala
erson
Manager 2,500.00 30,000.00
1 81 000.00
2 Car washers 15 450.00
9,600.00
3 Cashier & Rece tionist 800.00
4 an itor 200.00 2 400.00
5 Securi Guar s 2 350.00 8 400.00
Total 131 400.00
5. Description of the venture
5.1 service Type
Addis Car Wash Sewice will be providing custome's with exterior car wash
service and interior cleaning. it has a mission of providing top-quality
washing service and will work to keep employees satisfied in order to mai
ntain impeccable (faultless) customer service With the emphasis gaining
loyal and repeat customers as •friends" Of the business. Our venture Will
be working for twelve hours per day and the whole week, Monday to
Sunday, With its full capacity,

5.2 Location

Our Business will be located at Akaki Kaliti Sub City, Kebele Il, and
customarily called "'Saris" area. The reason why the proposed cite is
chosen for the investment is that there are many private and
governmental organizations around. it is a way to other regional states and
it is also a living area in which a number Of automobiles, minibuses,
company cars, and employee services are moving in and out, There is high
demand but Very few Car washing service is given in that area. That is a
good opportunity to launch our business around there, Moreover, the
lease price to acquire land for building our site is cheaper than other areas.
we planned to lease 800 m2 land and construct the building which
encompasses five washing holes (will be laid on the area of land 131,25
m2), an office and customers waiting room, plus two rooms for rent having
a purpose of cafe and oil & lubricant sales(will be laid on the area of land
144

5.3 Equipments
For office use purpose the expensed equipments include office chairs &
tables, guest chairs, computer, cash register and safe box.
These businesses will be looking for a cost effective, efficient car washing service
to perform this service, and will prefer to use a car wash service during the week
rather than during weekends, like the general public.
The strategy behind the company's target market segmentation is to attract
customers who will be repeat users and will frequent the business in the
typically quiet times for a car wash business. It will not be difficult to attract
customers during the summer months and on the weekends, the weekdays
however, especially in the winter, people will not think about having their cars
washed, For this reason, Addis Car Wash will target people who will tend not to
be restricted to these busy times,
The main targets of our projected business plan are personal Automobiles,
Minibuses, and Land cruisers, As previously mentioned car washing service
in Addis Ababa city is given as a dependent one to gas stations despite the
fact that all stations don't constitute the service. Because of that reason a
station can only serve a maximum Of six cars a day per a washing hole and
almost all Of the stations have not more than two washing holes which
doesn't fulfill the demand, Our business aims to fill the gap by giving the
car wash service as an independent (Specialized) Service which will have
five washing holes serving fifty cars per day.
Since the required job in the car wash service business is not yet done
thoroughly, we decided to invest our capital into the car wash service business
and then generate revenue from the services given by the project, As the
number Of service stations and automobiles is not comparable, it opens a good
opportunity for us to enter in to the sector to be successful as we planned since
we will be involving in a valuable business which creates unique and quality
services in meeting customers' satisfaction to bring real benefit to the
surrounding community,
4.2.i New Car Owners owners of newer cars are most likely to use a hand
car washing service. These owners take great pride in their cars and will
bring them often to the wash and clean service. The goal with these
customers is to promote regular use of the wash and clean service. The
aim is to inform these customers that Addis Car Wash Service will keep
their car looking as good as it did the day they drove it off the lot.

4.2.2 Older luxury car owners

These people have either owned their high-end luxury cars for several
years or are unable to afford the expense Of a new luxury car but want the
feel Of relaxed driving, Both of these groups want to keep their cars in the
best shape possible, Those who have bought second-hand cars will Often
spend many hours in their cars and will place high importance on keeping
their cars looking good. These owners will bring their cars in for regular
washes and to be cleaned,

4.2.3 Lifetime owners

Many Of these people have owned their cars for more than five or six years, and
are more likely to be women. They are attached to their cars as friends and
though it may be more sensible for them to purchase a new can they will bring
their car in for a wash occasionally, just when the car is dirty, They like their cars
to look presentable, and want to keep it in good shape but are not tied up in the
look of their car.

4.2.4 Dealerships
Currently the number of car dealers who import new cars from abroad and those
who used to sell used second hand cars is rising. These dealerships often use
outside car wash services to clean their vehicles before they are put up for sale

4,2.5 Local businesses

Local businesses have company cars and small vans that must be kept
clean to maintain their company image.

4. Industry Analysis
Analyzing the industry of car washing business is a little bit difficult in the
case of our country since there is no specialized car washing service. When
current situations of the country are observed, there is a rapid growth in
emergence of car assemblies, no of imported automobiles, no of investors,
road construction, and as a whole there is a change in the no of higher
class and middle class society groups to whom an automobile becomes a
necessity rather than luxury as former times. Since the number of
residents and business areas owning an automobile are increasing from
time to time, the business will have a bright future as the no of one or
more new car wash business is determined there will be more specialized
car wash businesses in the city

4.1 Competitors
The major competitors of our projected business are those who give the
car wash service in the gas stations as an auxiliary to the main business
which is selling of petroleum and related products and those youngsters
who raise money for their living by cleaning cars around running waters,
However, those competitors are not in a good standard and take much
time, one & half to two hours per car wash, and aim to meet the needs of
the price-conscious individuals who are choosing the service simply so
they do not have to clean their car themselves. Addis Car Wash Service on
the other hand targets the quality-conscious individuals Who value their
car to make it 100k good and the time-conscious individuals who have
given value to their time.

4.2 Market Segmentation

Addis Car Wash Service segments its customers by the type of car
ownership. We believe that the type of car that a person owns says
volumes about their driving, and, therefore their car washing and cleaning
requirements.

3. Company History
As stated in the executive summary the business will give quality car wash
service to the consumers located at the targeted area, This idea is generated
from one of our members; actually we have several business ideas which can be
undertaken easily but the reason why we select this idea is because it is unusual
to our country. In fact this business plan is common in western countries.
Accordingly, our company vision, Mission, long term goals and objectives
are stated below.

3.1 Visions:-
The vision of the venture to expand its acbvities through our country in order to
achieve the following vital goals:

I) Create job opportunities for the working group

Il) Make vital contrib utions to our country by paying tax.
3.2 Mission:-
The mission of the enterprise in the business environment is to give better
satisfaction to our customers by providing a standard service and by giving the
service to targeted customer in an efficient way.
3.3 Goals:-
The major goal of our business in the long term is to improve the quality of
service providing in order to satisfy the demands of our customers & attract new
customers to be users of our service.

3.4 Objective:-
The primary objective of this business plan is to successfully provide quality
service with reasonable price to pay.
use purpose the expensed equipments include office chairs & tables, guest
chairs, computer, cash register and safe box, For the high quality and
timely effective service well experienced workers will be employed with a
fair salary as compared to the expected job they will be doing. A Manager,
a total of fifteen workers for washing & cleaning cars, one employee who
act as a cashier & receptionist, a janitor and two security guards are
needed as professionals supporting staffs.
Our projected business will be differentiated from others in a way that the
car washing service will be given as a specialized business to give quality
service to customers, As one or two workers are assigned to wash a car in
other businesses it will lead customers to wait for long period to get the
service and pay more money which is not fair with the service rendered.
When we start our business there will be five washing holes in which three
employees are assigned to each hole to wash and clean a car within one
hour in addition to the spotless and quality service given to customers, so
any customer who comes to our station will get the service required with
out waiting for long so that they can consume their time effectively.
It has a mission of providing top-quality washing service with the emphasis on
gaining loyal and repeat customers as 'friends" of the business. Our venture will
be working for twelve hours per day and the whole week, Monday to Sunday,
with its full capacity,

The major competitors of our projected business are those who give the car
wash service in the gas stations and those youngsters who raise money for their
living by cleaning cars around running waters. However, those competitors are
not in a good standard and take much time, one & half to two hours per car
wash, and aim to meet the needs of the price-conscious individuals who are
choosing the service simply so they do not have to clean their Car themselves.
Addis Car Wash Service on the other hand targets the quality.conscious
individuals who value their car to make it look good and the time-conscious
individuals who have given value to their time,

When We look at the car wash service in Addis Ababa city, they are given
as an auxiliary to their main business to gas stations despite the fact that
all stations don't constitute the service. Because Of that reason a station
can only serve a maximum Of six cars a day per a washing hole and almost
all Of the stations have not more than two washing hales which doesn't
fulfill the demand, Our business aims to fill the gap by giving the car wash
service as an independent (Specialized) Service which will have five
washing holes serving fifty cars per day with a fair price,
Addis Car Wash Service segments its market customers by the type of car
ownership believing that the type Of car that a person owns says volumes about
the driving, and, therefore the car washing and cleaning requirements. We
segment our customers as new car owners, Older luxury car owners', lifetime
owners, Dealerships and local businesses in addition to Minibuses and Land
cruisers.
We planned to lease 800 m2 lands and construct the building which
encompasses five washing holes, an Office and customers waiting room, plus
two rooms for rent having a purpose of Cafe and oil & lubricant sales, For office

2. Executive Summary
Addis Car Wash Service is a company which is going to be commenced for giving
a car wash service for home cars, Minibuses and Land cruisers, The Main types
of services to be given are exterior car wash and interior cleaning services. For
the time being the project is designed to give the service for Addis Ababa city
residents only. Our projected venture will be located around Akaki Kaliti subcity
customarily called "Saris" area. The reason why the proposed cite is chosen for
the investment is that there are many private and governmental organizations
around, it is a way to other regional states and it is also a living area in which a
number of automobiles, minibuses, company cars, and employee services are
moving in and out,

To launch the business the initial total investment requirement to undertake the
business is a total of Birr 5,204,613.00(five million two hundred four thousand
six hundred thirteen) local currency, of this 2,081 ,845.00 or 40% is obtained
through debt financing which will be paid off over 20 years and the remaining
amount of Birr 3,122, 768,00 or 60% obtained from contribution from co-owners
capital. The debt will cover machinery, office equipment & supplies costs. Our
business is positioning it self as the premier car wash serving the Addis Ababa
automobiles especially around Saris area and we have forecasted a 20% market
share. Following the increasing number of automobiles launching a car wash
Service with efficiency and good service will be a promising business which
results in a good profit. The business will generate a very high margin and a
modest net margin after year one and comfortable margin after year three. By
year three the business will have developed a respectable yearly net profit. The
revenue source of the project will be from sales of the car wash and cleaning
service and rent of additional rooms,

This project is designed to fill the gap created by the unequal demand and supply
of the car wash service in the city. Even though there exlsts many numbers of
automobiles in the hands of individuals, business men & organizations there is
no enough and quality service given by car wash stations,
I. Introduction
Addis Car Wash Service
House No- New
Akaki kaliti Sub-city. kebele 11
Addis Car Wash Service will be providing car wash service for Auto
mobiles, Minibuses, and land cruisers of Addis Ababa City only. This
business will include exterior car wash and interior cleaning services.

The business is a partnership type which is established by eight partners, All are
contributed different amount of capital for investment.

Detail of the Co-owners

No Name of Partner Address
Abi Bekele 0911020515
1
2 Abe•e H Mariam 0911103879
3 Almaz Balcha 0911506882
4 Edilu De -e 0911642328
5 Hussien Abdu 091 1641298
6 Kelemework Belachew 0911749074
7 Kidist Be ene 0911983928
8 Samuel Kassa 0911932282
The initial total investment required to launch the business is a total of Birr
5,204,613.00(five million two hundred four thousand six hundred thirteen)
local currency of this 2,081,845.00 or 40% will be obtained through debt
financing which is going to be paid off over 20 years and the remaining Birr
3,122,768.00 or 60% will be obtained from contribution of the co-owners.
The debt will cover machinery, office equipment & supplies costs.
This report is confidential and is the property of the co-owners listed above. It is
intended only for use by the person to whom it is transmitted and any
reproduction or divulgence of any of its contents without the prior written
consent of the company is prohibited.