Car Detailing Business Plan Template
If you want to start a Car Detailing business or expand your current Car Detailing business, you need a business plan.
The following car detailing business plan template gives you the key elements to include in a winning business plan. It will help you if you need a traditional auto detailing business plan or a mobile detailing business plan. That’s because a mobile car detailing business plan is very similar to the traditional car detailing business plan except for the location. You will specify which one you operate in a few sections of your business plan.
Car Detailing Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is the leading car detailing company in [Location]. [Company Name] provides an exceptional experience and unparalleled service. The Company offers various detailing packages for your vehicle’s interior and exterior. We use quality cleaners and polishes to bring out the beauty in automobiles of all shapes and sizes.
Services Offered
The Company provides the following car detailing services:
Exterior Car and Truck Detailing Services
- Exterior wash and dry
- Paint Touch-ups
- Polishing
- Sealing and Waxing
Interior Car Detailing Services
- Vacuuming
- Carpet Cleaning
- Steam Cleaning
- Glass Cleaning
- Leather Trim Cleaning and Conditioning
Customer Focus
[Company Name] will primarily serve the residents within a 10-mile radius of our headquarters. [Company Name] will also provide mobile car detailing services to customers seeking car detailing at their homes. The demographics of the customers is as given below:
- 42,450 residents
- Average income of $85,000
- 51% in Management/Professional occupations
- 79% of residents are car owners
- Median age: 38 years
Management Team
[Company Name] is led by [Founder’s name], who has been in the car detailing industry for [x] years. During his extensive experience in the car detailing industry, he acquired an in-depth knowledge of using specialized tools and products required to maintain an automobile for a longer duration of time. Furthermore, before starting [Company name], he had experience managing and running an automobile-related business.
[Founder] also holds a degree in business management and is a licensed mechanic.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community it is entering. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the various services, supporting the business after launch.
- A majority of the location’s residents (professionals and workers) own automobiles and can afford car detailing services.
- The car detailing business has proven to be a successful industry in the United States.
- Mobile car detailing services add extra convenience for the customers.
Financial Highlights
[Company Name] is currently seeking $370,000 to launch its car detailing shop. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Avg customers/day | 20 | 30 | 40 | 50 | 60 |
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here], is a new, upscale car detailing business that provides car detailing services to the local community. It is the only car detailing business in the area that provides a full array of detailing services, including car maintenance, washing and detailing. [Company Name] also sells high-quality and eco-friendly cleaning and maintenance products for customers to purchase.
[Company Name]’s employees are skilled and trained to provide the utmost care to its customers and their vehicles. They are known for their attention to detail and speedy work.
[Company Name] also uses non-toxic, eco-friendly, fragrance-free cleaning solutions with minimal water consumption for the services provided.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for automobiles. [Company Name] is dedicated to becoming the premier car detailing company in [Location]. [Founder’s Name] moved to [Location] and noticed that although a majority of the residents have cars, there seems to be a lack of car detailing providers in the area. Upon surveying the local customer base and finding the potential of the business, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Deployed marketing strategies
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the car detailing industry
[Company Name]’s Services
The Company provides the following car detailing services:
Exterior Car and Truck Detailing Services
- Exterior wash and dry
- Paint Touch-ups
- Polishing
- Sealing and Waxing
Interior Car Detailing Services
- Vacuuming
- Carpet Cleaning
- Steam Cleaning
- Glass Cleaning
- Leather Trim Cleaning and Conditioning
III. Industry Analysis
The Car Wash & Auto Detailing industry’s revenue is estimated to be $13.1 billion. The industry saw profit increase in companies diversifying their offerings to build a stronger customer base, implementing value-added services such as interior cleaning, waxing, and rim shining, etc., in addition to their basic packages. Additionally, a rise in per capita disposable income will increase consumers’ propensity to spend on discretionary services such as car detailing, boosting revenue growth. Per capita disposable income is expected to rise, presenting an opportunity for the industry.
Furthermore, eco-friendly or waterless detailing services are popular because customers are aware of the negative effects of wasting too much water and using chemicals, and 35% of consumers are willing to pay significantly more for eco-friendly services.
The automotive industry as a whole is going through digitalization and a significant increase in technology adoption. On-demand mobile detailing apps for consumers are also on the rise. The broader economic landscape boded well for industry growth, with not only more vehicles joining the road but also individuals driving personal vehicles more frequently, leading to further growth in the car detailing industry.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediate surrounding areas in a 10-mile radius. The area residents it will serve are affluent and expected to spend more on car detailing services per capita than the national average.
The precise demographics of this market are as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Local Car Owners: The area in which the company will operate has a significant population of car owners. Most of them need an efficient way to keep their cars well-maintained. The car detailing services can cater to their needs and schedules and even offer them mobile car detailing services if required.
- Businesses: Since [Company Name] is located near businesses with company cars and delivery cars, the company aims to be their go-to car detailing shop.
V. Competitive Analysis
Direct & Indirect Competitors
A+ Detail
A+ Detail is an automotive studio that specializes in paint refinement, finishing treatments, detail services, and paint protection film. The company is a state and international award-winning auto detailer.
Services include:
- Complete Detail: Includes a foam bath pre-soak; hand wash with a premium microfiber wash mitt; wheel face, barrel, wheel well, exhaust tip and door jamb cleaning; hand dry; tire dressing; sealant application; interior floor and headliner vacuum and steam clean; hand scrubbing and disinfecting of the dashboard, vents, instrument clusters, cupholders and consoles; and streak-free cleaning of windows, screens, and mirrors.
- Exterior Detail: Hand wash and detail of wheel faces, barrels, wheel wells, exhaust tips, and door jambs; hand dry; sealant application to all exterior paint, glass, and wheels; windows and mirrors left with a streak-free shine.
Wash & Detail
Wash & Detail is a full-service car wash and detail center. It strives to provide excellence in customer service and trains each team member to do the detailing of each vehicle that comes through thoroughly. Further, competitor 2 takes environmental stewardship seriously, using a decontamination and filtering process to ensure that soap and chemicals do not enter the water system. Wash & Detail offers a wide variety of treatment options, from one-time treatments to club memberships.
Packages include:
- Full-Service Treatment Packages: vacuum, inside windows, dashboard, cupholders, wash and hand dry
- Deluxe Service Treatment Packages: Full Service + undercarriage flush, wax and rust inhibitor
- Ultimate Service Treatment Packages: Deluxe Service + 30-day wax and scent option
- Specialty Services: Boat Interior and Exterior, Motorcycles
Auto Pros
Auto Pros is a car detailing company and offers various packages at affordable prices. These packages are available for Cars, SUVs, RVs, Semi-trucks, boats and more.
Packages include:
- Wash and Polish: Hand wash & dry with microfiber towels, polish with orbital buffer & liquid wax
- Interior Only: Deep clean, interior & trunk vacuum, leather, vinyl & plastics wiped clean, shampoo interior carpet & floor mats, interior windows & mirrors cleaned, heavy stains, pet hair removal, high-quality wax applied, leather surfaces conditioned, all hard surfaces conditioned & UV protected, leather, vinyl & plastics wiped clean, interior windows cleaned
- Exterior Only: Complete outside wash, hand dry with clean microfiber towels to protect their paint, clean exterior windows, clean and degrease wheels and tires & add protection and shine, clean all door jambs and trunk seals, clay bar all painted surfaces to remove harmful contaminants, apply high-quality paste wax by hand to all painted surfaces, exterior dressing of plastics
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented Service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their questions.
- Clean and Detail Oriented: The Company’s staff are well-trained, clean, and detail-oriented. They work hard to satisfy their customer’s needs.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows many of the local leaders, newspapers, and other car businesses. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Management: The Company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Sustainability: [Company Name] will maintain its eco-friendly status while scaling up to meet demand. The Company will use the products which are non-toxic, eco-friendly cleaning products with minimal usage of water.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Convenient location
- Offering a wide collection of packages that provide multiple services
- Client-focused car detailing services that treat each client individually and get the job done right at the first time
- Well-trained staff that prioritizes customer satisfaction
- Service built on long-term relationships
- Moderate prices
- Eco-friendly products used for car detailing
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 10-mile radius of its location. The Company’s promotions strategy to reach the audience includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets. Community newspapers, car publications, sports programs, and similar channels will be a major promotional effort.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run. [Company name] will create a customer loyalty program to retain its best clients. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or other promotions to people to avail of the services.
Pricing Strategy
[Company Name] pricing will be moderate, so customers feel they receive great value while purchasing the services. Pricing will be higher than their top competitor, but one par with the vast majority of competitors in the area.
VII. Operations Plan
Functional Roles
[Company name] will be open Monday-Saturday. To support the operation, the company intends to employ [X] working staff and [A] cashiers/customer attendants. [Company name] anticipates having [Z] customers on a weekly basis.
To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing suppliers and managing supplier relations
- Inventory Management
- Hiring and training staff
Service Functions
- Maintenance personnel
- Car detailing and maintenance staff
- Customer service/cash register functions
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the car detailing business for xx years. While [Founder] has never run a store himself, he was the director of operations at a car detailing store. As such, [Founder] has an in-depth knowledge of the car detailing business, including operations, retail marketing and personnel management.
[Founder] has personal relationships with salespeople at a variety of high-end car detailing product suppliers.
[Founder] also holds a degree in business management and is a licensed mechanic.
Hiring Plan
[Founder] will serve as the store manager. To launch the store, the company needs to hire the following personnel:
- Sales and customer service: 2 full-time employees to manage the day-to-day sales and customer service
- Car detailing and maintenance staff: 4 full-time employees and 3 part-time employees who are willing to learn and are detail-oriented
- Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from its car detailing services to customers. The major costs for the company will be the cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high to establish itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $370,000 to launch its car detailing shop.
Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| Year 1 | 20 |
| Year 2 | 25 |
| Year 3 | 30 |
| Year 4 | 40 |
| Year 5 | 50 |
| Average transaction | $50 |
| Annual Lease (per location) | 50000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
