Entrepreneurship: Designing, Developing & Running a Business Venture - Essay Sample

Entrepreneurship involves a process of designing, developing, launching, and running a new business (Mullins, 2017). The entrepreneur must have the ability to develop, organise, and manage a business venture alongside the potential risks to make profits. An entrepreneur is also an innovator, as entrepreneurship is the act of transforming the world by solving consumer needs. A business idea must have a need, a ready market, and a positive return on investment (Mullins, 2017). The report summarizes the feasibility of Neat Car Wash Company.

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Neat Car Wash (NCW) Company provides exterior car washing, interior car washing, and detailing services to consumers within the UK. NCW focuses on providing high-quality services at a reasonable and affordable price. The company has the best employees in ensuring high-quality services. Best employees facilitate cost-effectiveness because of low turnovers and decreased HR costs. Primary target groups are individual car owners and leasers, local businesses, and car dealers. NCW also distributes environment-friendly mobile car wash services to be more reliable and convenient. The company aim at providing quality, convenience, and cost-saving services to its customers. In achieving the proposition, services are counter checked for quality.

NCW intends to solve customer issues such as high car maintenance costs, limited time to drive to car wash stations, effectiveness, and convenient car washing services (Leibling, 2020). The market is segmented into new car owners (23%), older luxury car owners, sport car owners (3%), lifetime car owners (31%), car dealers, and businesses (Mintel Portal | Log in, 2020). New car owners are the most consumer segment likely to buy our services as they take great pride in their cars and would frequently require cheaper and quality washing services (Leibling, 2020). Older luxury car owners want to feel comfortable driving and want to keep the vehicles in the best shapes and regularly visit our car wash or call for our services. Sports car owners who are young men value their cars and will always require washing services weekly (UK. Population (2020) - Worldometer, 2020). Car dealers and business would ever want to keep smart cars for good public reputations, and there are likely to be loyal customers. Total vehicles in the UK. in 2019 was 32.9 million and is expected to grow in 2020 by 2% (UK. Hand Car Wash Market - Key Fact, 2020). Thus, car wash customers are expected to increase each year. Another segment to benefit would be motorcycle owners.

More than 32 million cars in the UK., with 60% of them washed outside homes (Yurday, 2020). Total washes per year are 110 million. The Car wash industry in the UK. is worth $I billion per year (The Car Wash Association CWA - Part of the PRA | PRA, 2020). NCW targets to serve 40% of the market. For the last six years, the car washing market in the UK. has shown a steady growth of 4%. The global cash wash business is expected to grow at a compound annual rate of 3.2% up to 2025 (Car Wash Service Market Size, Share | Industry Report 2019-2025, 2020). The car washing business in the UK. is likely to be affected by economic factors and technical and government regulations. The amount spent on cars depends on the economy; when it is healthy, people will always keep their cars neat. The service is done by specialists other than themselves (Vehicle licensing statistics: January to March 2018, 2020).

NCW operates in Car Wash and Detailing industry. In the UK, entering the mobile car wash business, a firm must acquire the right documents and meet legal requirements. Business permits and insurance are needed to run a mobile car wash and meet regulations health and safety standards. Before starting the business, an entrepreneur must register the business and for self-assessment tax (Yurday, 2020). Further, liability insurance is required as a sign of goodwill, making it difficult to enter the industry. Tools and equipment for car washes suppliers are many; hence suppliers have no power. Consumers have control due to market concentration (Mullins, 2017). It is not easy for the NCW market to be stolen, considering the convenience and time-saving services. Mobile car wash services rivalry is genteel in the UK (Leibling, 2020).

Neat Car Wash has unique proprietary elements that have value, rare, hard to imitate, and exploit. The business has both a physical location car wash and provides mobile car wash services, has environment-friendly equipment, and provide high-quality services at low costs. NCW has the potential of developing superior capabilities through hiring the best workforce and using environment protecting tools for long term sustainability of the business. NCW adheres to regulations and has low employee turnover reducing operating costs and thus charging lower costs. The business model is economical as operating the car wash would require water, chemicals bought in large quantities to enjoy discounts and paying of employees. The average cost cleaning a single car in the UK is $6, with a total cost of $3.80 per car (Yurday, 2020).

NCW's mission is to provide top-quality washing services to car owners and businesses in the UK. The aspirations are becoming a premium car wash company, having high-profit margins, acquiring new customers, and maintaining long-term relations. The present business risk is investing more money for its expansion and losing control by the hiring management team. The car wash industry's critical success factors are quality service, costs, and convenience (Mullins, 2017). Neat Car Wash focuses on soliciting customers by providing superior service at lower prices and being convenient by maintaining the best team and expanding geographical location and working hours for convenience and reliability (Global Car Washing Services Industry, 2020). The team is well prepared by having the necessary skills and the availability of required resources. The CSFs pose risks of adequate resources and inconvenience.

In the UK, retailers of car washing equipment and chemicals are numerous, making quick accessibility of the cleaning tools. Some of the significant suppliers include Pearl Car and Car Cleaning-UK (Shop, 2020). Down the value chain, NCW target all the private car owners, dealers, and businesses. There several car dealers in the UK, such as Clive Sutton, Motors.co.uk, Auto park UK Car dealers, and CS Cars, which imports fleets of cars and can make big consumers of our cleaning services (Motor Trade Insider, 2020). Key competitors include Waves, Autoglyn, and Autosmart companies. The team aims at entering partnerships with car dealers and businesses in the UK to provide a car cleaning service to increase sales.

Most car wash businesses in the UK operate from a physical location with mobile car washes currently emerging. Operating a mobile car wash in a great opportunity as it is more convenient for clients and the entrepreneur. It is well paying and easy to start and is consumer-oriented by saving the time client spends visiting a physical car wash. The opportunity is sustainable as suppliers have no power to set terms and conditions. However, the business face risks of economic, government regulations, competition, and changing consumer behaviours.

References

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