Auto Paradise (a dynamic startup company) requires $934,000. This is to establish a self-serve and automatic two-bay car wash. The carwash will provide exceptional services for San Angelo residents. Auto Paradise, a premier car washing service in San Angelo Texas, will provide services that are beyond expectations. Bobby and Vicki have pledged $45,000. Now they are looking for investors who will raise an additional $150,000 to fund the establishment of the business and to obtain a Small Business Administration (SBA), loan of $740,000. Auto Paradise is committed to providing the best quality laser car wash, self service 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. The President and Chief Executive Officer at Auto Paradise Texas Corporation will be Mr. Lewallen. He has extensive experience in leadership, management and organization. As an Army officer, he has been serving our country for 10 years. He was a Company Commander for two years and a Brigade Logistics officer for one year over the course of those 10 years. As such, he helped plan, coordinate and execute several complex deployments and missions.

The mild winter climate in San Angelo is expected to support year-round sales. This has been confirmed by extensive research. Auto Paradise’s Avenue N location will draw local residents, Angelo State University students, and Goodfellow Air Force Base customers. Auto Paradise will be located at the intersection of two major roads, San Angelo. Only the ‘#8220’tunnel, or friction car wash, lube and washes, are eligible for direct competition. Auto Paradise will feature the Laserwash 4000, a ‘#8220;touchless and spot-free&#8221 system. Washing Equipment of Texas is located in San Angelo. It will provide all equipment, maintenance support, and more.

Auto Paradise is expected to open within 90 days of securing financing. Mr. Lewallen offers several investment options in Auto Paradise.

1. Company stock. Mr. Lewallen has offered 20% of his company stock as an offer to investors. 1% of the company stock is available for $7500. This capital will help establish the first Auto Paradise location. Auto Paradise will distribute $2,500 each 1% share for the first three years.
2. Secured Investment: Mr. Lewallen will guarantee a 10% annual yield for a three-year investment. Mr. Lewallen can secure these investments using his personal assets/investments.

Mr. Lewallen will get an SBA loan from Compass Bank San Antonio. This is designed to ensure Auto Paradise’s success over the initial months. The $740,400 loan includes two elements designed to help build operating capital. The loan also includes a 10% (69,000) construction contingency. This will convert the loan to operating capital if construction costs are in line with the estimate. It also includes nine months of interim interest which will defer the long-term mortgage payment.

This is due to Mr. Lewallen’s willingness and ability to invest substantial money in this business. He also doesn’t have to depend on the profits of the business during the first six-12 month. These factors will allow Mr. Lewallen the opportunity to expand to a new location within the first 2 years.

1.1 Objectives

1. Average monthly sales of $28,000

2. After opening Auto Paradise, establish second site within 12 months.

3. In order to recover initial investment, distribute 33% ($2,500/share), each year to initial investors.

1.2 Mission

Auto Paradise believes in providing the best car service experience to its customers. It is a company that puts all its efforts and resources into customer satisfaction and value. Owners and employees get a great reward.

1.3 Keys to Success

Auto Paradise will be near the intersection of two major roads in San Angelo. Direct competition is limited to a #8220tunnelâ#8221 or friction-car washes.

Auto Paradise’s Laserwash 4000 will be a « touchless, spot-free » laserwashing system. Washing Equipment of Texas (WET) is located in San Angelo and will provide all equipment and maintenance support.