Auto Paradise is a dynamic start-up company requiring $934,100 to establish a two-bay automatic and four-bay self-serve car wash that will provide exceptional car care services to the members of the San Angelo community. Quality services that will exceed expectations will establish Auto Paradise as the premiere car wash service in San Angelo, Texas. Bobby and Vicki Lewallen are pledging $45,000 and are looking for investors to raise an additional $150,000, which represents 20% of the company stock, to establish the company and to secure a Small Business Administration (SBA) loan of $740,400. Auto Paradise will be dedicated to offering the highest quality laser car wash, self-serve car wash and vacuum/shampoo services. Auto Paradise will also offer ATM services and will sell reverse osmosis (RO) water on site.
Auto Paradise has a strong management team. Mr. Lewallen, who will be the President and Chief Executive Officer of the Auto Paradise Texas Corporation (C), has extensive leadership, management and organizational experience. He has served our country for the last 10 years as an officer in the United States Army. During those 10 years, he served one year as a Brigade Logistics Officer and two years as a Company Commander. As such, he helped plan, coordinate and execute several complex deployments and missions.
Extensive research indicates that the mild winter climate in San Angelo will support steady year-round sales. Further, Auto Paradise's Avenue N location and marketing campaign will attract the local residents, Angelo State University community and Goodfellow Air Force Base customers. Auto Paradise will be near the intersection of two major roads in San Angelo. Direct competition is limited to outdated "tunnel" or friction car washes, lube & washes and convenience stores. Auto Paradise will boast the Laserwash 4000 "touchless, spot-free" system. Washing Equipment of Texas (WET) is located in San Angelo and will provide all equipment and maintenance support.
Auto Paradise will open approximately 90 days after securing financing. Mr. Lewallen is offering several ways to invest in Auto Paradise:
- Company stock: Mr. Lewallen is offering 20% of company stock to investors: offering 1% of company stock for $7,500. This capital will help establish the first Auto Paradise location. Auto Paradise plans to distribute $2,500 per 1% share each of the first three years.
- Secured Investment: Mr. Lewallen is offering a guaranteed 10% annual return for a three year investment. Mr. Lewallen is willing to secure these investments with personal assets/investments.
The SBA loan that Mr. Lewallen will secure from Compass Bank in San Antonio is structured to ensure Auto Paradise's success during the early months of operation. The $740,400 loan includes two elements designed to help build operating capital. First, the loan includes a 10% ($69,000) construction contingency that will convert to operating capital if the construction costs are consistent with the estimate. It also includes nine months of interim interest which will defer the long-term mortgage payment.
Mr. Lewallen's ability and willingness to invest substantial cash in launching this business is furthered by the lack of personal dependence on business profits during the first 6-12 months of business. These factors will enable Mr. Lewallen to expand to a second location within the first two years of operation.
1.1 Mission
Auto Paradise is dedicated to providing its customers the ultimate car care experience. Focusing all of its energy and resources on customer satisfaction and value, while providing owners and employees an excellent reward.
1.2 Objectives
1. Average monthly sales of $28,000.
2. Establish second site 12 months after first Auto Paradise opens.
3. Provide initial investors a 33% ($2,500/share) distribution each of the first three years to recover initial investment.
1.3 Keys to Success
Auto Paradise will be near the intersection of two major roads in San Angelo. Direct competition is limited to outdated "tunnel" or friction car washes, lube & washes and convenience stores.
Auto Paradise will boast the Laserwash 4000 "touchless, spot-free" system. Washing Equipment of Texas (WET) is located in San Angelo and will provide all equipment and maintenance support.
