Business Venture
I would like to venture into the wash and auto detailing industry as an entrepreneur. The industry has been growing, with an overall market size of $30.85 billion globally. Further, the industry is expected to grow and reach $38.61 billion by 2030 (Ghaly et al., 2021). One reason the industry will keep growing is that most of the population are youths who will grow into adults and purchase cars. Therefore, opening a car wash business in a busy city’s suburbs will draw many customers’ attention. The car wash business will target people with personal cars. However, this does not mean the company will not serve commercial vehicles. The car wash and auto detailing industries are competitive by nature, and many competitors exist. However, the growth rate in the number of personal cars is high compared to the growth rate in the number of car wash businesses, making the business viable.
The car wash business caught my interest in the recent past when I realized I had to wait in long queues to get the services. Besides, all car wash businesses I visited on weekends were full of customers seeking their services. As an upcoming entrepreneur, I spotted an opportunity in this sector. In addition, undertaking a car wash business will entail purchasing new equipment that will be crucial to running the business. The major equipment that will be required is the high-pressure water pump. Notably, the pump forms one of the vital capital expenses in undertaking the business. Despite the expenses, I believe the company will be a success because, as indicated earlier, the industry is expected to grow. Further, the number of people owning personal cars will also grow in the future.
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References
Ghaly, A. E., Mahmoud, N. S., Ibrahim, M. M., Mostafa, E. A., Abdelrahman, E. N., Emam, R.H., & Hatem, M. H. (2021). Water use, wastewater characteristics, best management practices and reclaimed water criteria in the carwash industry: a review. Int. J. Biopro Biotechnol. Adv, 7(1), 240-261.
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Question 
Overview: (Please see attached previous assignments for reference)
Using the same business you started in the first assignment, Your Business Venture, you will continue to build a financial plan for the business.
Instructions
Write a 4–5 page paper in which you:
Prepare a pro forma balance sheet for the first 12 months of your business. Include the assumptions on which it is based. Justify your balance sheet.
Business Venture
Prepare a pro forma income statement for the first 12 months of your business. Include the assumptions on which it is based. Justify your income statement.
Prepare a pro forma cash budget for the first 12 months of your business. Include the assumptions that you have made when creating the budget. Justify your budget.
Scrutinize tangible and intangible costs of obtaining financial capital for your business start-up to determine whether the costs justify the implementation of the funding source.
Assume your business is five years old and running profitably and consider how you would grow your business over the next five years.
Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Assess whether the costs of obtaining capital for a business justify the use of the funding source and whether the equity-based valuation of the business is appropriate.