Y & B Garage A

GARAGE AND OTHER SERVICE
PROJECT PROPOSAL ON
PROJECT TO BE IMPLEMENTED IN: -
ADDIS ABABA CITY ADEMINISTRATION
PROMOTER: - Y & B PLC.
JULAY, 2024
ADDIS ABABA, ETHIOPIA
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Contents
1. Executive Summary.....................................................................................3
1.1 The Customers........................................................................................3
2. Market Analysis Summary...........................................................................4
2.1 Market Segmentation.............................................................................4
2.2 Target Market Segment Strategy............................................................5
2.3 Service Business Analysis.......................................................................6
2.4 Competition and Buying Patterns...........................................................6
3. Technical analysis........................................................................................7
c. Other elements of the vehicle complex include a hazardous waste
accumulation point, a dynamometer facility (certifies vehicle emissions),
and various vehicle parking lots...................................................................8
3.1 Requirements for all vehicle washing and cleaning activities.................8
3.1.2 Reduce, reuse and recycle – resource efficiency and waste
minimization..............................................................................................8
3.1.3 Connecting and discharging to a public foul sewer..........................9
3.1.4 Using and storing cleaning chemicals...............................................9
3.1.5 Dealing with spillages of cleaning chemicals....................................9
3.2 Good practice for different washing and cleaning methods.................10
3.2.1 High pressure washers (jet washers) and steam cleaning..............10
3.2.2 Washing and valeting by hand........................................................10
3.2.3 Cleaning platforms..........................................................................10
4. Financial Summary....................................................................................11
4.1 Start-up Cash Requirements:................................................................11
4.2 Personnel Plan......................................................................................11
4.3 Financial Plan........................................................................................12
4.3.1 Break-even Analysis........................................................................12
4.3.2 Projected Profit and Loss.................................................................13
4.3.3 Projected Cash Flow........................................................................14
4.3.4 Projected Balance Sheet.................................................................15
4.3.5 Business Ratios...............................................................................15
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5. Environmental Analysis.............................................................................16
5.1 Find out about drainage systems and get a drainage plan...................16
5.2 Protecting our groundwater supplies....................................................17
6. Socio Economic Analysis............................................................................18
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1 Project type Garage, Vehicle Maintenance , Washing, Oil and Other

Service
2 Promoter Y & B Private limited Company
3 Address ADDIS ABABA
4 Nationality Ethiopian
5 Project Location Addis Ababa City
6 Own land 3000 m2
7 Production Vehicle Maintenance and washing service

Capacity
8 Startup Capital
The total of birr 160,000.000 startup capital is required.
From this 30% (birr 48,000,000.) will be covered by the
promoter, while the rest 70% (birr 112,000,000) will be
covered by bank loan.
9 Employment
Opportunity The total manpower requirement of the project will be 45
citizens (20 skilled on permanent basis and 25 Unskilled on
temporary basis
1 For the City/
0 country Safely provide customers with quality car maintained and
other related products and car washing service and other
services through convenient, efficient and exceptional
services, Satisfy high demand of Modern Motel and fuel
products distribution service, add value to the economy,
Source of revenue for the government, create employment
opportunity, benefit for the local community, stimulate the
local economy and transfer technology.
1. EXCUTIVE SUMMARY
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1. INTRODUCTIN
Y & B PLC is a prominent car maintenance serving the Addis Ababa
community. Y & B PLC will be run by Friends. Y & B PLC will be providing
customers with four services: maintenance, exterior car washing, interior
cleaning, and detailing. Y & B PLC 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. Y & B PLC' ability to provide a high quality service, both in
regards to the actual maintenance 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.
The beginning capital of the garage will be one hundred thousand birr and it
gives job opportunity for eight persons.
1.1 The Customers

Y & B PLC 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 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. Lastly, there are many different local businesses that have
company cars and that require clean appearances.
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1.1. General Back ground

Urbanization and Urban economics naturally leads to aviation from the rural
way of settlement and living.
Urban life system entails not only a charge I the spatial aspect of settlement
but also a change in the category and quality of the service development.
As known, the City of Addis Ababa is on fast development. Considering the
incentive put in place by the government to develop the attractive City, DPA
plc intended to plan for building of car assembling plant in Addis Ababa City.
Y & B plc have also prepared and submitted detailed plan for construction of
my Garage and a maintenance site of 3000 m2 of land. I would also like to
make known that I have sufficient capacity to embark construction works,
and at the end I need more land (expansion) from municipality.
2. The project Area.
2.1. Location
 In project under consideration will be implemented in Addis Ababa City
administration. Addis Ababa is found at distance of around 20 kms a
way from Addis Ababa on the main road.
The reason of selected the location for the proposed project is:
 Its proximity to Addis Ababa city administration with good scenery and
weather condition.
 Its proximity to serve as and facility like road, transport and utilities like
electricity, water and telephone line.
 The existing conductive social and investment situational and increase
number of private investment in the area.
 Its accessibility and easy of future development are some of the reasons
behaved selecting the area for the propose project.
 Attractive policy incentives and administrative procedures of the City.
 Proximity to new dry port in Addis Ababa & around Mojo City.
 The existences of high demand for the envisaged service.
 Personal preference of the investor.
2.2. Physical Characteristics
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Most part of the Addis Ababa City is covered by manufacturing projects. The
rest part is also covered by different commercial centers, hotel & recreation,
social services residential areas and so on.
The City has elevations that range from 1,500 – 2,300 with the exception
part of Yarer Mountain (3,100m) as far. The climate is woin adega (98%) and
dega (2%)& 1800-2000m above sea level.
2.3. Soil type
Soil is the most important natural restore in the world for human beings. It
also used for construction of houses and its rocks parts is used of
reconstruction of roads.
Addis Ababa has two different kinds of soils. Red soils & black soils. The 1 st
one is the very important for constructions of houses & rods in City the black
one is also used a easily for environmental farmers in their production.
For construction big villas building & ware houses in Addis Ababa city is
simply possible because the most parts of solid in Addis Ababa is red solid.
2.4. Population
The total population of the City was estimated above 4,000,000. Out of the
total population 5,133,351 were rural and 2,680,605 were urban populations.
The economically active population (15-64) constituted 54.2% of the total
population. The average family sizes for rural and urban areas were 6.0 and
5.6 persons respectively. The crude population density was 285 persons/km2
in the mentioned year.
2.5. Economic Activity
Considering the overall developmental measures, the country is request ring
development. In addition to mitigating poverty, efforts have been enhanced
to make poverty a past history.
Considering the international market situations and the case of foreign
currency the government is taking various measures in respect these
problems.
The majority of the populations of the City are engaged in different
commercial activities including agricultural activities. There are also peoples
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who are employed in various governmental & non-governmental

organizations. Currently private investment activities are also widely
undertaken in the City.
3. Project Description
A car is a four wheeled vehicle that is common in the world. Cars are
becoming used in developing countries in both urban and rural areas (not
widely used) for transport and for the movement of goods. Consequently, in
developing countries like Ethiopia the demand in predominantly for the
traditional heavy duty car model usually fitted with rod brakes.
The establishment of a Garage activity would encourage the growth of

auxiliary industries like the manufacturing of tires tubes, carriers, crane
guards, fenders and rims.
Garage service would have two basic advantages for the development of an
economy. First it facilitates transport of people and goods cheaply. Second, it
facilitates the process of industrial development through the creation of
backward linkages for the manufacture of parts and components. This profile
envisages the Vehicle maintenance in various shapes.
3.1. Company /Owner Profile

The owner of the project is the citizen of Ethiopian with versatile business
experience and adequate educational background. He is highly encouraged
by the conducive investment atmosphere prevailing in Ethiopia as an eye-
witnessed by the suitable socio economic situation, conducive investment
policies and the adequate resources abundant in the Addis Ababa City.
The Promoter, Y & B PLC having with relevant and rich experience in mixed
spheres espial in the area of Other Project.
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4. Objectives of the project
Objectives of the project are: -
 -Provide quality maintains;
 -To Garage service and supply the local market with standard
vehicles at competitive price.
 -To satisfy the ever growing local demand for transportation service
sepals in expansion areas by low transportation cost;
 -To minimize the consumption of fuel;
 -Selection of the most appropriate technology for the envisaged

project;
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► Car Oil Service

4.1. Description of the Project
New vehicle dealers to increase market share
New light vehicle dealers held the largest share of the automotive service
market in, due to their typically large size and industry-high labor rates.
Dealers offer a unique combination of City tools, training and equipment
needed to perform many key service operations, and benefit from direct
access to the diagnostic data used to troubleshoot vehicle systems. Dealers
consider parts and service work highly valuable due to its outsized impact on
their bottom line results. Additional reasons for the expected growth of the
new light vehicle dealer’s share of the service market include the extended
vehicle and powertrain warranties offered on many newer vehicles. Since
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warranty work, which is paid for by the OEM, is typically performed at a

fraction of the rate dealers charge retail customers, the impact will be
moderated yet remain substantial.
4.2.Quick lubes, tire stores, repair chains to lead gains

General repair garages and service stations are expected to experience
below average growth as an increasing number of these providers install
convenience stores in the place of service bays. Independent garages are
also hampered by the inability to access OEM diagnostic and service data at
cost-effective rates, and often have difficulty attracting and retaining skilled
technicians. Quick lubes will continue to experience strong growth as they
expand beyond oil changes and increasingly offer services that are possible
while the vehicle is in position for an oil change. These can include radiator
flush and refill, transmission oil and filter change, diagnostic system scans,
cabin air filter changes, tire rotation and vehicle inspections. Body shops will
continue to perform the majority of vehicle body repair work, although
dealers are attempting to capture more of this business. esipalists will
experience moderate growth as a group, caused by the improved quality of
stainless steel exhaust systems and extended OEM powertrain warranties.
Tire stores and repair chains will experience strong growth as they expand
into more service categories, and to an extent replace general repair
garages as local service providers.
5.Market Analysis Summary

The car wash will be based in City. This area has a number of benefits in
terms of the market that it will provide for the business. Over 40% of the
households founds in the immediate neighborhood. Many people in the
neighborhood own and/or lease new cars and place great value on their cars
and how they look. There are a large number of car dealerships in the area--
five within three miles of the proposed location for Y & B PLC.
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5.1.Market Segmentation
Y & B PLC 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.
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
Y & B PLC will keep their car looking as good as it did the day they drove it
off the lot.
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.
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.
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.
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5. 2.Dealerships: There are five new and used car dealerships within three
miles of the proposed location of Y & B PLC. 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 Y & B PLC.
6. 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.
► Car Wash Service
5.3. Target Market Segment Strategy

The strategy behind Y & B PLC target segmentation is to attract customers
who will be repeat users and will frequent the business in the typically quiet
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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,
sepals in the winter, people will not think about having their cars washed. For
this reason, Y & B PLC 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.
5.4. Service Business Analysis

The hand car washing business in Ebinat consists of many small competitors.
Everything from local children raising money for their youth group on a
Saturday by cleaning cars, to the automatic car wash machines, are
competition for Y & B PLC. However, these two alternatives aim to meet the
needs of the price-conscious individuals who are choosing the service simply
so they do not have to clean the car themselves. Y & B PLC on the other
hand, targets the quality-conscious individuals who value their car enough to
spend birr 120-140 per week to make it look good.
5.4 Competition and Buying Patterns

There is no other garage in Benita. It is quite new and is trying to offering
with low prices. However, it is not targeting the customers who seek quality
cleaning. The customers who Y & B PLC is targeting have their cars based on
the quality of the job. They do not mind spending a little more each week to
have their car and waxed in order to keep the paint work in excellent shape.
The businesses that Y & B PLC targets will be more cost conscious, so prices
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will be approximately 30% less for these customers to promote volume

usage.
6. Technical analysis
Vehicle operations and vehicle maintenance facilities are an essential
element of aircraft support. Appropriate facilities are needed to support
operations management, preventive maintenance, and unscheduled repair
work on all vehicles on base (including vehicles belonging to tenant
organizations). The types of vehicles requiring maintenance support will
range from general fleet to City purpose, such as cargo loaders, construction
equipment, aircraft tugs, snow removal equipment, along with refueling and
emergency vehicles (e.g., fire trucks).
Fully functional and properly configured facilities will ensure that a higher
percentage of the fleet is kept in operation. Quality facilities will improve the
maintenance espialists’ efficiency and ability to make repairs, and encourage
pride of ownership in their workplace. This guide evaluates the distinct
requirements of a vehicle operations facility and a vehicle maintenance
facility separately.
6.1. Vehicle Operations Facilities
Provide an area to accommodate the following: administrative offices,
vehicle washing/cleaning, heated parking (required in severe cold climate
areas), fleet vehicle parking, dispatch, drivers’ lounge, and fleet
management. Unique mission requirements may require additional functions
to support the overall vehicle operations/maintenance effort.
6.2. Vehicle Maintenance Facilities
a. Provide shops to maintain all vehicles assigned to the base. These shops
should provide space and facilities for scheduled and unscheduled
maintenance. This includes, but is not limited to, inspection, general repair
and replacement of major assemblies, lubrication, fluid changes, tune-ups,
tire rotation, painting, welding, upholstery repair, testing, cleaning, storage
and retrieval of parts, and fabrication of minor parts.
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b. Provide support functions for maintenance control and analysis, tool room,
parts room, locker rooms, and offices. Shop operations are usually supported
by a contractor operated parts store (COPARS).
c. Other elements of the vehicle complex include a hazardous waste

accumulation point, a dynamometer facility (certifies vehicle emissions), and
various vehicle parking lots.
6.3.1 Requirements for all vehicle washing and cleaning activities

Activities that produce run-off from the vehicle onto the ground and use
cleaning and valeting products should be carried out in areas that are clearly
marked and isolated from surface water drainage systems, unmade ground
and porous surfaces. These areas are called designated washing bays.
A designated washing bay is designed so that run-off is:
 isolated using channels, gullies, gradient (fall on the surface) and kerbs
 directed to a silt trap or settlement tank to remove larger particles of
silt and sediment
 either collected in a sealed system for reuse, discharged to the public
foul sewer with prior permission of the local sewer provider or collected
in a sealed system for authorized disposal
The company also:
 have procedures for everyone, including contractors, that cover where
and how vehicle washing and cleaning should be carried out and what
to do in a spillage emergency
 provide notices for designated washing bays saying what they’re for
and that washing and cleaning should only be carried out in the bay
 consider whether a fence or barrier is required to prevent spray or
wind drift out of the designated area
 have procedures and equipment which minimizes water use and solid
waste production
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6.3.1.2 Reduce, reuse and recycle – resource efficiency and waste

minimization
The company considers ways to reduce the volume of water that use for
washing and cleaning, and the amount of liquid and solid waste produced.
Recycling effluent and reusing the water is the best environmental option for
dealing with vehicle washing and cleaning effluent. Use washing equipment
that has a collection and re-use or recirculation process. These systems
usually require regular, off-site removal of some water, silt or sludge so
waste management licensing legislation will apply.
A waste minimization review will help you save money on raw materials and
waste disposal costs. Free, independent and practical advice on how to
minimize waste is available from Environ wise; this includes free
publications, events, site visits and waste reviews.
6.3.1.3 Connecting and discharging to a public foul sewer

If recycling and reuse isn’t possible, discharging all the vehicle washing and
cleaning effluent to a public foul sewer is generally the next best
environmental option as the effluent is carried to a purpose-built and closely
monitored sewage treatment plant. You need permission from your local
sewer provider to discharge vehicle washing and cleaning effluent to a public
foul sewer. Permission (a consent or agreement) isn’t given automatically so
we must talk to our sewer provider before we make any connection or
discharge.
6.3.1.4 Using and storing cleaning chemicals

 Only use biodegradable washing and cleaning products. This will help
treatment processes when effluent is discharged to the foul sewer
 Follow the manufacturer’s environmental and health & safety
information, such as for the COSHH (Control of Substances Hazardous
to Health) Regulations
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 Use non-corrosive products. Corrosive products, such as traffic film

remover, can damage paintwork, metal surfaces, ground coverings and
drains
 Store all detergents, emulsifiers and other cleaning agents in suitable
bounded or containment facilities, within a locked storage area or
building away from any surface water drains
 Only use the minimum amount needed for a job diluted to the
appropriate working strength. Never use undiluted concentrates
 Prepare working strength solutions in the storage area, never in areas
that drain to the surface water system
6.3.1.5 Dealing with spillages of cleaning chemicals

 Produce a spillage response plan; test and use it
 Deal with all spillages immediately; follow the manufacturer’s health
and safety advice
 Keep suitable spill kits where cleaning chemicals are stored and used,
and make sure everyone knows how to use them. Make sure kits are
replenished after use
 Stop spillages from entering drains, channels, gullies, watercourses
and unmade ground. Use proprietary sorbent materials, sand or drain
mats
 Make sure our spillage response plan includes information about how
to recover, handle and correctly dispose of all waste produced from a
spillage. Make sure you deal with all waste safely and legally.
6.3.2 Good practice for different washing and cleaning methods
6.3.2.1 High pressure washers (jet washers) and steam cleaning

High pressure washers (including jet washers) and steam cleaners are
effective at removing dirt, grease and coatings from vehicles, machinery and
surfaces. But they use large volumes of water (500 – 7,200 liters an hour),
often at high temperatures and containing cleaning chemicals. If we are
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cleaning vehicles and plant with a high pressure washer (jet wash) or steam
cleaner, we use a designated washing bay. We use a pressure washer to
clean roads, yard surfaces, other equipment or in areas where the drainage
isn’t collected or connected to the foul sewer, you must stop run-off from
entering surface water drains. Never allow run-off containing cleaning
chemicals, detergents or emulsifiers to enter surface water drains as this will
cause pollution and prevent oil separators from working properly.
6.3.2.2 Washing and valeting by hand

We wash, clean or valet vehicles by hand, or are responsible for a site where
this service is offered, we have good site management procedures and
practices in place to avoid pollution. We use designated wash bays as
detailed in section 3, or make sure that you have other satisfactory
arrangements in place. However, it may be acceptable to clean or valet
private cars by hand in areas such as car parks, without designated wash
bays (roving activities), if:
 only clean water is used and no detergents or cleaning chemicals
 or our working method doesn’t produce any runoff from the vehicle
 or the runoff from the vehicle is contained, collected or treated in some
way and dealt with or disposed of legally
 and we can show us that the proposed activity will not adversely affect
separators and SUDS, or damage the environment at any time
7 Cleaning platforms
In this system, a vehicle is driven onto a mobile or static cleaning platform,
which has an integral containment sump for holding wash water. Cleaning
chemicals are sprayed or applied by hand onto the vehicle, which is then
sponged and wiped dry. The wash water is either discharged to a foul drain
or settled and passed through a series of filters and tanks where it’s cleaned
and then circulated for re-use. When using this system, contain wash water
and cleaning chemicals to prevent them entering surface water drains.
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Waste management legislation applies to the disposal of solid trade waste,

silt and sump sludge.
► Car General Service
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8.ORGANIZATION AND MANAGEMENT
8.1. Organization Structure
The project will be managed by a qualified and experienced manpower to

make it successfully perform its purpose. The general manager is responsible
for the overall activates of the venture. The Project will be organized having
three main units responsible for service division head, administration and
finance division and commercial division that are accountable to the general
manager.
Having assisted by three division heads with relevant experience and

educational background the general manger will lead the project smoothly.
The organizational setup of the project will be as follows.
 Typical organizational structure of Motel and Fuel station project
Project Owner
G/Manager
Service and technical unit Marketing Unit

Finance &Admin Unit
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8.2 Manpower Requirement
The total manpower requirement of the project will be 245 citizens (55
skilled on permanent basis and 190 Unskilled on temporary basis.
Composition of manpower with qualification is presented in the financial part.
No Item Quantity Qualification
1 Manager 1 BA in mgt.
2 Cashier 2 Dip. Accounting
3 Purchaser 5 Purchasing mgt.
4 Waiters 10 Grade 8
5 Bar man 5 Grade 6
6 Driver 5 3rd level license
7 Guards 10 Grade 6
8 Haters 10 Grade 10
9 Washers 5 Basic
10 Daily 2
Totallaborer 55
9. Land
The crucial factor, which determines the implementation and overall success
of the project believed to be acquisition of land, its location, and suitability to
the project, its relative size and prices of acquisition.
Indetermination of the required size of the project plot area, the following
basic decision parameters taken in to consideration.
a) The total plant buildings built up area requirement
b) Aggregate current open space needed (for parking loading and

un loading, Green area, front, rear and sides of the blocks) and
also reserve area.
c) Specific features of site required.
d) Building regulations (Building by-low)
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e) Land price and means of acquisition.
According to the desired envisaged plant capacity, functional and structural

requirements, the total space area required to accommodate all plant
buildings is estimated to be 3000 m 2.Land use plan of the project is indicated
in Table 3 below
9. Land requirement and land use plan
The area of land required for the proposed project is estimated to be 3,000
m2.
Table 1. Land use plan:
S/No Description Area in m2
1 Building Garage area 1000

2 Washing station 500
3 Torno house 500
4 Office ,clinic toil
100
5 Café 200
6 Green area and Parking 200
7 Reservation 500
Total 0 m2
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10.FINANCIAL ANALYSIS
The financial analysis of the project is based on data provided in the previous
chapters and on the following assumptions:
Construction period - 2 years
Financing - 30% equity & 70% loan
Tax holidays - 2 years
Bank interest - 10%
18.1 Repair & maintenance
Spare parts - 1% of fixed investment
Depreciation of:
Machinery and equipment - 20%
Vehicles - 20%
Office furniture & equipment - 20%
Buildings - 5%
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10.1. Project capital & financing sources
The table below shows the source of finance & its schedule of payment
are listed below.
Table 7.source of finance
No Source of Amount in birr Share (%)

finance
1 Own equity 48,000,000 30%
2 Bank loan 112,000,000 70%
Total 160,000.000 100%
9.3.FINANCIAL ANALYSIS
The financial resource is a prime resource for undertaking any activities.

Therefore, for implementing this mixed use with a total capital 160,000,000
Million birr is need from this 30% will be covered by the promoter of the
project while the rest 70% will be covered by financial institutions. Therefore,
the said amount of finance is needed for undertaking the following activities
Total Initial Investment Cost
The total amount of money that is required to establish the envisaged plant
is estimated to be birr 160,000,000
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Table 5.1:- Total Initial Investment Capital
No
Description Total cost ( birr)
.
1 Building & Construction 500,000
2 Machines &Equipment’s 500,000
3 Vehicles 300,000
4 Office Equipment 35,000
Sub total 1335000
6 Pre investment cost 52,000
7 Salary 170,000
8 Raw Material 420,000
9 Other operating Expenses 10000
Sub total 160,000,000
Grand total 160,000,000
10.4 Personnel Plan

Esitily car washing is a seasonal business, with business increasing in the
warm summer months, and being busier on the weekends than during the
week, Y & B PLC will rely on both temporary and part-time help. The
company will hire one full-time car wash/detail espials and one full-time car
wash espials when it opens for business. Although it will rely on temporary
and part-time help, quality will not be compromised, since all washers and
detailers will receive thorough training. The company will also hire an
administrative assistant who will assist with paper work and act as a
receptionist.
Personnel Plan
No of Staffs Year 1 Year 2 Year
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3
Manager 1 60,000 100,000 133,333
Mechanics 4 100,080 143,437 170,058
Others 3 43,480 50,000 73,333
Total 8 203,560 293,437 376,72
5
10.5. Financial Plan

The following plan outlines the financial development of Y & B PLC garage.
The business will be initially financed by a personal investment by the
owners 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 owner
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.
Important Assumptions
The financial projections for Y & B PLC garage are based on the following
assumptions. These assumptions are thought to be quite conservative, as
are the financial forecasts.
10,3.1 Break-even Analysis

The table and chart below show the monthly break-even analysis
calculations for Y & B PLC.
Break-even Analysis
Page 27
Monthly Units Break-even 141

Monthly Revenue Break-even 26,580
Assumptions:
Average Per-Unit Revenue 62.90
Average Per-Unit Variable Cost 2.63
Estimated Monthly Fixed Cost 25,470
10.3.2 Projected Profit and Loss

The following Profit and Loss table illustrates income and expenses monthly
for the first year, and annually for the next two years.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales 366
,000 517,797 774,013
Cost of Sales 152
,257 203,780 250,050
Gross Margin 213
,743 314,017 523,963
Gross Margin % 58.40% 60.60% 67.70%
Expenses
Payroll 131
,000 187,500 258,333
Sales and 5,16
Marketing 8,667 7 5,667
Depreciation 6,90
6,900 0 6,900
Utilities 11
,083 11,667 12,500
Insurance 60
600 0 600
Rent 1,83
1,600 3 2,000
Total Expenses 186
,650 242,567 316,400
Net Profit 27
,093 207,563 71,450
Page 28
10.3.3 Projected Cash Flow

The following Cash Flow table illustrates that if Y & B PLC meets projected
sales, it will have positive cash flow after half a year of operations.
Projected Cash Flow
Cash Payments Year 1 Yea Year 3
r2
Cash Sales 366,0
00 517,797 774,013
Payroll 257,0
00 367,967 471,560
Other cash 9,4
expenses 97 6,553 20,063
Sales and 8,6
Marketing 67 5,167 5,667
Utilities 11,0
83 11,667 12,500
Insurance 6
00 600 600
Rent 1,6
00 1,833 2,000
Total Cash 332,0
Payments 07 439,447 559,550
Net Cash Flow 33,9
93 78,350 214,463
Cash Balance 46,3
27 124,677 339,140
10.3.4 Projected Balance Sheet

Y & B PLC's balance sheet illustrates a healthy financial position for this new
company.
Page 29
Projected Balance Sheet

Year 1 Year 2 Year 3
Assets
Cash 46,327 124,677 339,140
Accounts Receivable 11,243 15,907 23,777
Inventory 2,227 3,397 5,363
Total Current Assets 59,797 143,980 368,280
Fixed Assets 71,000 71,000 71,000
Accumulated
depreciation (6,900) (13,800) (20,700)
Net Fixed Assets 64,100 57,200 50,300
Total Assets 123,897 201,180 418,580
Liabilities and Equity
Total Liabilities
Owner's Equity 123,897 201,180 418,580
Total Liabilities and
Equity 123,897 201,180 418,580
10.3.5 Business Ratios

The following table contains important ratios for the Y & B PLC car wash.
Ratio Analysis
Year 1 Year 2 Year 3 Standar
d
Sales Growth 0.0% 41.5% 49.5% 3.0%
Current Ratio 5.8 11.0 19.3 1.5
Page 30
Quick Ratio 5.6 10.8 19.1 0.9

AR Collection Days 57 64 62 55
AP Payment Days 27 27 25 29
Debt to Net Worth 2.7 0.5 0.1 0.1
Debt Service Coverage 2.43 4.30 10.03 2.15
Ratio
11. Environmental Analysis

Effluent and run-off from vehicle washing and cleaning activities can damage
the environment and pollute rivers, streams, burns and groundwater. Dirt,
brake dust, traffic film residue and oil that are washed off are all pollutants.
The cleaning agents you use (including those Y & B PLC biodegradable or
traffic film removers) are very poisonous to river life. If you cause pollution,
you are breaking the law and spoiling your environment.
Dirty water or run-off from vehicle washing and cleaning carried out as a
business or industrial activity is called trade effluent. Whether you’re
cleaning just one vehicle or responsible for a large lorry fleet, you must
arrange for collection and disposal of effluent to prevent pollution. It’s illegal
to discharge trade effluent to the environment or into drains without
permission.
11.1 Find out about drainage systems and get a drainage plan
Understanding the drainage system is the key to preventing pollution. Most
areas have what is known as a separate drainage system where there are
two types of drain:
 Surface water or clean water drains should only carry
uncontaminated rainwater; they lead directly to ditches, streams,
Page 31
burns, rivers and soak away. Roof water, car park, road and some yard
drainage is usually connected to the surface water drainage system.
 Foul water drains carry contaminated water (sewage and/or trade
effluent) safely to a sewage treatment facility, which is either owned
privately or by the local sewage treatment provider. Any system
designed to carry foul water is called a foul water drainage system.
Drains (surface water and foul) are also known as sewers. The local sewer
provider is the organization with the legal responsibility to provide public
sewerage and sewage treatment facilities in your area. Drains owned by the
local sewer provider are known as mains drainage, main sewers or public
sewerage systems. Older, urban areas might have a combined drainage
system that has one drain, carrying both foul and surface water to a sewage
treatment facility.
Techniques called “sustainable drainage systems” (SUDS) are now used as a
better way of dealing with surface water run-off, rather than using piped
outfalls to rivers, streams or burns. In Scotland, the use of SUDS is a legal
requirement for surface water disposal. These systems must be protected
from contamination in the same way as piped surface water drainage
systems.
To prevent pollution, don’t allow washing or cleaning effluent, runoff or
cleaning chemicals to enter oil separators, drains or gullies connected to the
surface water drainage system. You need to have a good, up-to-date
drainage plan of your whole site, including areas where vehicle washing and
cleaning will take place. If you don’t have a plan, you can’t be sure that
drainage is connected to the right system. If there is no in-house expertise to
do this, use a reputable drainage consultant or consulting engineering
company.
Page 32
11.2 Protecting our groundwater supplies

In some parts of the Addis Ababa, over 70% of the drinking water is supplied
from natural underground reservoirs in porous rocks, called aquifers.
Cleaning up groundwater is difficult and very expensive so the company
must protect it from pollution. Never carry out washing or cleaning on
unmade ground or other porous surfaces where run-off could soak down
through the soil and pollute valuable groundwater resources, always check
with our local office for advice.
In some very sensitive groundwater areas, we might ask for more stringent
pollution prevention measures than those detailed in this guidance note. In
some cases, this might mean we won’t allow this activity to take place at all.
Waste management and our legal duty of care

Waste produced from vehicle washing and cleaning businesses can include,
for example, water contaminated with oil, detergents or silt; silt, sludge,
empty containers, product packaging, washing and polishing materials such
as cloths. There are strict legal requirements for the storage, movement and
disposal of business waste. We have a duty of care to make sure that any
waste we produce:
 does not escape from our control
 is transferred only to a registered waste carrier for recycling or
disposal at a suitably licensed facility
 is accompanied by a transfer note with a full description of what it is
 is disposed of lawfully
12. Socio Economic Analysis

Y & B PLC garage service delivering cooperative have the socioeconomic
benefits on the generating income tax for the government, on the creating
job opportunity. The socioeconomic benefits are;
Page 33
 Y & B PLC generated income for the Revenue and Customs Authority
birr 54,900 (fifty four thousand nine hundred) from the collection of
value added tax.
 It creates the job opportunity for the five members and for others eight
youngsters.
Page 34

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GARAGE AND OTHER SERVICE

PROJECT TO BE IMPLEMENTED IN: -

ADDIS ABABA CITY ADEMINISTRATION

PROMOTER: - Y & B PLC.

1 Project type Garage, Vehicle Maintenance , Washing, Oil and Other

2 Promoter Y & B Private limited Company

3 Address ADDIS ABABA

5 Project Location Addis Ababa City

6 Own land 3000 m2

7 Production Vehicle Maintenance and washing service

1.1 The Customers

1.1. General Back ground

who are employed in various governmental & non-governmental

The establishment of a Garage activity would encourage the growth of

3.1. Company /Owner Profile

4. Objectives of the project

Objectives of the project are: -

 -Provide quality maintains;

 -To minimize the consumption of fuel;

 -Selection of the most appropriate technology for the envisaged

► Car Oil Service

warranty work, which is paid for by the OEM, is typically performed at a

4.2.Quick lubes, tire stores, repair chains to lead gains

5.Market Analysis Summary

► Car Wash Service

5.3. Target Market Segment Strategy

5.4. Service Business Analysis

5.4 Competition and Buying Patterns

will be approximately 30% less for these customers to promote volume

c. Other elements of the vehicle complex include a hazardous waste

6.3.1 Requirements for all vehicle washing and cleaning activities

6.3.1.2 Reduce, reuse and recycle – resource efficiency and waste

6.3.1.3 Connecting and discharging to a public foul sewer

6.3.1.4 Using and storing cleaning chemicals

 Use non-corrosive products. Corrosive products, such as traffic film

6.3.1.5 Dealing with spillages of cleaning chemicals

6.3.2 Good practice for different washing and cleaning methods

6.3.2.1 High pressure washers (jet washers) and steam cleaning

6.3.2.2 Washing and valeting by hand

Waste management legislation applies to the disposal of solid trade waste,

► Car General Service

8.ORGANIZATION AND MANAGEMENT

8.1. Organization Structure

The project will be managed by a qualified and experienced manpower to

Having assisted by three division heads with relevant experience and

 Typical organizational structure of Motel and Fuel station project

Service and technical unit Marketing Unit

8.2 Manpower Requirement

No Item Quantity Qualification

a) The total plant buildings built up area requirement

b) Aggregate current open space needed (for parking loading and

c) Specific features of site required.

d) Building regulations (Building by-low)

e) Land price and means of acquisition.

According to the desired envisaged plant capacity, functional and structural

9. Land requirement and land use plan

Table 1. Land use plan:

S/No Description Area in m2

1 Building Garage area 1000