Magic Hands Car Wash is a prominent hand car wash that will be serving all the southern rural area. Magic Hands will be run by Dewayne Russell who decided to have his very own self business. The Russell family has been serving the southern area with car repair business and property development /management for over 20 years. Dewayne will be leveraging the incredible good will and brand recognition of the Russell family name to quickly gain market penetration. Magic Hands will be providing customers with three services: exterior car washing, interior cleaning, and detailing. Magic Hands has no true competitors that are trying to offer a high quality service for a reasonable rate. Most are trying to compete on price alone. Magic Hands ability to provide a high quality service, both in regards to the actual washing as well as customer service is all based on their ability to find the best employees. Hiring the best employees is cost effective because it decreases HR costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers. Study after study proves that a happy employee is far more likely to provide the highest level of customer service compared to an employee who is not happy and feels that they are being taken advantage. Magic Hands will target three main groups of customers: individual car owner and leasers, car dealerships, and local businesses. The surrounding area is quite affluent, 40% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There are five different car dealerships within a three-mile radius which will require car washing services for the various fleets. Finally, there are many different local businesses that have company cars and that require clean appearances. The mission of Magic Hands is to provide top-quality washing and detail service for luxury car owners in the different rural southern area in TN. Magic Hands will work to keep employees satisfied in order to maintain impeccable customer service. The start-up expenses for Magic Hands will be financed by Dewayne, from the profits I make in selling part of the family car repair business. Dewayne will also be working with the family lawyer to set up incorporation and to discuss lease issues before the business is launched. He is working with a local graphic designer to develop a logo, letterhead, and company brochures. Although Dewayne has been in the car repair business, he has not been in the wash and detailing business, which is a very different service (quick turnaround per car is incredibly important). For this reason he is working with an acquaintance to set up the system that will ensure efficient service even during peak usage. Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for the business will be approximately $200 per month and will be paid by direct debit on a monthly basis. Expensed equipment includes three high-power water pumps, two industrial vacuum cleaners, two computer terminals, and one cash register. All of the equipment will be depreciated over three years. A combination of local media and event marketing will be utilized at each location. Radio is most effective, followed by local print media. As soon as a concentration of stores is established in a market, then broader media will be employed.

The location was previously used as a quick stop automobile service shop, so it is set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a car wash and detail facility. The services of a contracting company will be sought to convert the use of the facility and to improve the customer waiting room facilities. Magic Hands segments its customers by 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 detailing requirements. 1. 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 detail service. The goal with these customers is to promote regular use of the wash and detail service. The aim is to inform these customers that Soapy Rides will keep their car looking as good as it did the day they drove it off the lot. 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 occasional details. 3. Sports car owners: These people are often younger or middle-aged men and will regard the look of their car as important. They will also pride themselves on the look of their car and will have their car hand washed (at least) weekly. These drivers will have an occasional detail, but will keep their cars so clean the detail will not be necessary very often. 4. 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 car, 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. For this reason, they will not have a detail carried out on their car unless they are selling it. 5. Dealerships: There are five new and used car dealerships within three miles of the proposed location of magic Hands. These dealerships often use outside car wash services to detail their vehicles before they are put up for sale. In addition, there are fifteen other car dealerships within a seven mile radius of Magic Hands.
Local businesses: Some local businesses have fleets of cars and small vans that must be kept clean to maintain their company image. 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 Magic Hands target 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, Magic Hands will target people who will tend not to be restricted to these busy times. • Business owners (new car owners) tend to be very busy people, but are often able to make their own hours. • Retired people (older luxury car owners) are not restricted by typical work schedules so will be able to frequent the car wash during the week. • Dealerships will need cars detailed and washed regardless of the time of the day and week. This will supply a constant flow of traffic. Businesses will need their fleet cars washed during the week during regular business hours. The final plan is to outlines the financial development of Magic Hands The business will be initially financed by a personal investment by Dewayne Russell and will finance growth through cash flow. This will mean that the company will grow more slowly than it could, but it will ensure that Dewayne retains control over the direction of the company. In year three, it is hoped that the company will be able to open a second location. It is envisioned that an outside loan or equity funding will be sought at that time. •

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