Car Wash Financial Model (5 Year Financial Forecasts)

Featuring specific Car Wash metrics you can track (Self Service Car Wash Revenue, Self Service Car Wash Utilization %, Average Self Service Car Wash Revenue Per Unit, Automated Car Wash Revenue, Automated Car Wash Utilization %, Average Automated Car Wash Revenue Per Unit, Full-Service Detailing Revenue and more), users will easily be able to navigate the model with all input fields highlighted in Blue font. These models are designed to be the perfect financial tool for business owners to use to make decisions for their company and also to provide to investors to give a snapshot of how the business is currently performing and what the forecasts look like.

General Assumptions

It starts with basic model questions about the start date of the model, the tax rate assumption, working capital assumptions, and funding assumptions, including owners/partners’ capital or investment in the business.

Revenue and COGS Assumptions

Revenue assumptions are the anticipated factors that drive a company’s income generation over a specific period. These assumptions form the basis for financial projections and are crucial for planning and decision-making. In our model, we have included detailed inputs on No. of Hours of Operation Per Day at the Car Wash, Hours Capacity Available Per Month Per Bay (hours), Self Service Car Wash Cycle duration (minutes), Automated Car Wash Cycle duration (minutes), Self Service Car Wash Cycle Capacity Per Month Per Bay (# of cycles) and Automated Car Wash Cycle Capacity Per Month Per Bay (# of cycles). We have also included 4 Self Service Car Wash Bays (you have the ability to add or remove Bays based on the makeup of your car wash business) where you can input individual Bay metrics for the # of cycles sold, the price per cycle, see what the Bay’s revenue Is, what its utilization rate % is; and included 2 Automated Car Wash Bays (you have the ability to add more or remove these based on your car wash) metrics for 12 machines (you have the ability to add or remove Bays based on the makeup of your car wash business) where you can input individual Bay metrics for the # of cycles sold, the price per cycle, see what the machine’s revenue is and what its utilization rate % is. We have also included inputs for a Revenue Full-Service Detailing offering (Mini-Detailing and Full-Detailing), with inputs to track the number of customers, growth percentage, and the price charged for each Detailing service, as well as Other Income, with inputs on Other Items sold (Car wash Accessories, Vending Machine sales). Direct Costs or Cost Of Goods Sold assumptions are costs incurred in providing Car washing services (Self-Service Car Wash, Automated Car Wash, and Detailing Services). These include costs of Chemicals (Detergents, Waxes), Water, Electricity, Maintenance of Equipment, Retailers’ Wages, and Cleaning Supplies.

Operating Expenses Assumptions

Operating expense assumptions are typically based on historical data, industry benchmarks, market trends, and management’s judgment. They are crucial for estimating the total cost of running the business and for determining profitability. Like revenue assumptions, it’s important to regularly review and adjust operating expense assumptions to reflect changes in the business environment and ensure the accuracy of financial forecasts. In our model, we have included detailed inputs on Car Wash Staff Costs (General Manager, Cashier/Customer Service, Maintenance Manager, Technicians, Others), Typical Car-related Operational Expenditure items (Rent, Cleaning, Credit Card Fees, Machine Maintenance Costs, Insurance, Council Rates, Advertising, Administrative, however, you can add any other expenses you think may be relevant to your business in this sheet.

Capex Assumptions

Capital expenditure (Capex) assumptions refer to the anticipated investments a company plans to make in long-term assets, such as property, plant, equipment, and technology, over a specific period. These assumptions are crucial for financial planning, budgeting, and forecasting, as they impact the company’s cash flow, profitability, and growth prospects. We have included a Fixed asset cost assumption schedule here for the main items likely to be on a company’s capex sheet and also a Capex % spend per Fixed Asset Type pie chart. We have included Capex costs for Automatic Car Wash Systems, High-Pressure Washers, Foaming Brushes, Vacuum Systems, Water Treatment, and Recycling Systems, the Quantity of each of the items purchased, and the average useful life of each of the assets.

Monthly Projections

We have broken down projections on a Month by Month basis when projecting Income Statement, Balance Sheet and Cash Flow Statement items. The monthly projections are provided over a 5-year time frame. This is particularly useful for businesses looking at month-on-month trends and insights in the business, which leads to better decision-making and also better budgeting should there be a need to either raise more capital, pursue growth opportunities from excess capital or pay down interest-bearing debt. Monthly projections also help a business ascertain what performance may be seasonal in nature when looking at growth projections on a month-over-previous-years-month basis.

Annual Projections

The model has Annualized Financial Projections of the Income Statement, Balance Sheet, and Cash Flow Statement over a 5-year time frame. Annual projections provide an excellent overview of expected revenues, expenses, profits, cash flow, and other key financial metrics for the upcoming year. Annual projections are essential for strategic planning, budgeting, fundraising, and performance evaluation for any company at any stage of its business cycle.

Car Wash Metrics & Other Metrics

Car Wash specific metrics (Self-Service Car Wash Revenue, Self-Service Car Wash Utilization percentage, Average Self-Service Car Wash Revenue Per Unit, Automated Car Wash Revenue, Automated Car Wash Utilization percentage, Average Automated Car Wash Revenue Per Unit, Full-Service Detailing Revenue), Profitability Ratios, Liquidity Ratios, and Asset Turnover Ratios were provided.

Summary of Financial Statements

Summarized Financial Statements over a 5-year time frame help provide better snapshots of financial performance. The Income Statement, Balance Sheet, and Cash Flow Statement are all provided.

Charts

The available charts include a cash Flow Summary, Profitability Analysis, Self-Service Car Wash Revenue vs. Utilization percentage, and Automated Car Wash Revenue vs. Utilization percentage.

DCF Valuation

We have included a Discounted Cash Flow (DCF) Valuation model showing the Net Present Value (NPV) of the Business based on a series of growth rates and assumptions. Weighted Average Cost of Capital Assumptions is also provided, including Risk-Free rate, Beta, Risk Premium, and Equity Risk Premium. A DCF valuation is a method used to estimate the value of an investment, business, or asset by discounting its expected future cash flows to present value. It is based on the principle that the value of an investment is determined by the present value of its future cash flows. The DCF valuation technique is widely used in finance, investment analysis, and corporate finance for making investment decisions, determining the fair value of securities, and evaluating the worth of businesses.

Depreciation Schedule

The Detailed Depreciation Schedule shows additions/disposals to the business’s Fixed Asset Register. Sections are included for Computer Equipment, Furniture and fittings, and Others.

Debt Schedule

Debt schedule provided with interest rate assumptions and payback period assumptions included.

Equity Schedule

Equity schedule provided with assumptions on all investments into the business by investors or owners.