Start-up Funding | |
Start-up Expenses to Fund | $9,100 |
Start-up Assets to Fund | $22,900 |
Total Funding Required | $32,000 |
Assets | |
Non-cash Assets from Start-up | $20,000 |
Cash Requirements from Start-up | $2,900 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $2,900 |
Total Assets | $22,900 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $20,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $20,000 |
Capital | |
Planned Investment | |
John Ford | $6,000 |
Michael Ronald | $6,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $12,000 |
Loss at Start-up (Start-up Expenses) | ($9,100) |
Total Capital | $2,900 |
Total Capital and Liabilities | $22,900 |
Total Funding | $32,000 |
F & R Auto offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialize in certain areas.
The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business to customer ties.
F & R Auto will hire trained and certified mechanics who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.
F & R Auto provides a wide range of auto repair services. These include:
Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.
The auto repair industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.
Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies. These companies are more consolidated that the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to F & R’s industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible.
In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.
The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.
The technological revolution in computers has enhanced our abilities to diagnose and repair our clients vehicles. F &R will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.
The company does not have any plans to create further services at this time.
The following table and chart show the market analysis for F & R Auto Repair.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Number of cars in Seattle | 3% | 145,833 | 150,208 | 154,714 | 159,355 | 164,136 | 3.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 3.00% | 145,833 | 150,208 | 154,714 | 159,355 | 164,136 | 3.00% |
This section is covered in the Competitive Comparison section of the Plan.
While many customers looking to purchase automotive repair services are concerned with price, the primary concern is with building a relationship of trust between themselves and their service provider. A large number of people within the country have experienced or heard of bad service encounters within this market. As a person’s car is usually connected in one way or another with that individual’s livelihood, a dependable automobile is crucial. Therefore, many clients are willing to pay a little more for a mechanic they feel does a quality job and understands their needs.
An automotive repair company that can anticipate, meet, and even exceed customer’s needs can build a defensible position within the market place and acquire market share at the expense of other rivals.
As stated before, the automotive repair market is very fragmented. The chief competitors in this industry for F & R are the high quality automobile dealerships and licensed service reps. This includes Toyota, Ford, Chrysler, and other major brand names. Within F & R’s immediate service vicinity, There is Rodham’s Toyota, Lester Ford and Woodmark’s Chrysler dealerships. Each of these direct competitors have a service facility. These competitors dominate the market place, have the largest market share, and have advantages such as specially trained personnel, access to lower priced parts and tools, and deep pockets. The other competitors are mostly “mom & pop” style outfits that make up the majority of the competition. For F & R this includes Dave’s Auto Repair, The Taller Mechanico, Kirkland Auto and Body, and Vancouver Auto. The advantages of these firms is that they can seek a low cost leadership strategy due to lower personnel costs. However, they have a much more fluid customer base and higher customer turnover.
F & R will seek to compete initially in the low cost strategy. At the same time, it will seek to provide a higher level of customer satisfaction by having more rigorous quality control and seeking ways to enhance the entire service experience (not just repairing a person’s car). In this way it will lock in a loyal customer base who value the client-service provider relationship.
The auto repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. It is very difficult to create a differentiation, or niche, strategy in this environment and until F & R is able to establish a reputation for quality, on time, superior customer service, the company will seek a low cost role. Once it has achieved what management believes to be a sufficient reputation for its services along with a profitable customer base, the company plans to leverage this advantage into a differentiation strategy that will be able to charge more for its services.
The following section outlines the company’s strategic focus in growing the business.
F & R Auto’s competitive edge lies in the vision of its partners, who understand better than many of their rivals that a service visit does not just include repairing a client’s car, it includes the entire service experience from the first time a client talks to their mechanic until they decide to stop driving. The long-term profitability of a service firm of this type lies in the repeat customer that finds F & R’s services an excellent experience, DESPITE the fact that they usually have suffered a inconvenient breakdown. The company will seek to examine ALL aspects of the service experience to seek ways to improve its customer satisfaction. In addition, all employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this issue.
It is the express purpose of F & R to become the local leader in quality and service experience of all the small (non-dealerships) automotive repair firms within the Seattle area while maintaining a low cost plan. Once a reputation for quality and service experience is created, and an ongoing network of referrals is bringing in new business, the company plans to re-evaluate its strategy and positioning within the market to see if a differentiation strategy is viable. If so, this will allow the company to raise prices and increase profit margins in relation to its rivals. This in turn is expected to leverage long-term growth until F & R can reach a regional scope of operations.
The company has a modest program of marketing its services that include the following:
Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company’s long-term marketing goals are to use local radio and TV ads similar to the Les Schwab Tire Center ads.
The company is also investigating the possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and other promotional ideas.
The principal owners of F & R Auto expect that a significant number of their pre-existing clients (where Ford and Ronald currently work) will desire to switch to F & R Auto to retain the services of their personal mechanics. This will provide a sufficient income until F & R can build up a reputation and see its marketing program take effect.
This promotion strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages. F & R does not desire to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after year five.
F & R Auto exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many automobiles it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, F & R can service automobiles at total capacity without effecting the price.
Since the automotive repair industry is, operationally, a job-shop environment, it is somewhat difficult to estimate sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once an order is made. However, the sales forecast reflect the professional opinion of Mr. Ford in how much sales he will make based on the following assumptions:
For the most part, sales for an automobile repair firm are steady year round and reflect little seasonality.
The table and charts below outline the sales forecast. Three years of annual sales and costs of sales are shown. Twelve monthly tallies are included in the appendices.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Routine maintenance | $51,000 | $57,120 | $62,261 |
Small repair jobs | $60,000 | $67,200 | $71,904 |
Large repair jobs | $67,800 | $75,936 | $81,252 |
Total Sales | $178,800 | $200,256 | $215,417 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Routine maintenance | $5,100 | $5,712 | $6,226 |
Small repair jobs | $6,000 | $6,720 | $7,190 |
Large repair jobs | $6,780 | $7,594 | $8,125 |
Subtotal Direct Cost of Sales | $17,880 | $20,026 | $21,542 |
John Ford began working as an apprentice mechanic in his father’s shop in 1984. Since that time, he has worked for a variety of automotive shops and dealerships and has numerous certificates in automobile repair. During the past two years Mr. Ford has attended Bellevue Community College where he received an Associates degree in business administration in June of 2000.
Michael Ronald attended ITT Technical Institute where he received a certificate in electronics repair in 1980. In 1983 Mr. Ronald went to work for Jim Click Ford Dealership in Tucson AZ, where he worked on automotive electrical and electronic systems. Desiring to expand his skills, Mr. Ronald received a mechanic’s certificate in 1988 and since then has become certified in various automotive fields. In anticipation of F & R’s business needs, Mr. Ronald is taking night classes at Seattle University in marketing.
F & R’s initial staffing will consist of Ford and Ronald, plus Ronald’s wife who will act as a part-time office manager. The company will seek two entry level mechanics to be hired within a few months after the company is operating. Accounting, bookkeeping, and marketing services will be outsourced. The company’s intermediate goal is to have four full time, fully trained mechanics at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Mr. Ford | $36,000 | $36,000 | $36,000 |
Mr. Ronald | $36,000 | $36,000 | $36,000 |
Office manager (part time) | $14,400 | $15,000 | $15,000 |
Apprentice mechanic (part time) | $6,900 | $15,000 | $15,000 |
Apprentice mechanic (part time) | $0 | $0 | $15,000 |
Apprentice mechanic (part time) | $0 | $0 | $0 |
Total People | 4 | 4 | 5 |
Total Payroll | $93,300 | $102,000 | $117,000 |
The following sections outline the financial plan for F & R Auto Repair.
The company’s Break-even Analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc.
Break-even Analysis | |
Monthly Revenue Break-even | $14,564 |
Assumptions: | |
Average Percent Variable Cost | 10% |
Estimated Monthly Fixed Cost | $13,107 |
The following table and chart show the projected profit and loss for F & R Auto Repair.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $178,800 | $200,256 | $215,417 |
Direct Cost of Sales | $17,880 | $20,026 | $21,542 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $17,880 | $20,026 | $21,542 |
Gross Margin | $160,920 | $180,230 | $193,875 |
Gross Margin % | 90.00% | 90.00% | 90.00% |
Expenses | |||
Payroll | $93,300 | $102,000 | $117,000 |
Sales and Marketing and Other Expenses | $6,000 | $7,200 | $7,400 |
Depreciation | $1,992 | $2,000 | $2,000 |
Leased Equipment | $6,000 | $1,000 | $1,000 |
Utilities | $4,800 | $5,000 | $5,000 |
Insurance | $7,200 | $7,400 | $7,400 |
Rent | $24,000 | $24,000 | $24,000 |
Payroll Taxes | $13,995 | $15,300 | $17,550 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $157,287 | $163,900 | $181,350 |
Profit Before Interest and Taxes | $3,633 | $16,330 | $12,525 |
EBITDA | $5,625 | $18,330 | $14,525 |
Interest Expense | $1,892 | $1,700 | $1,500 |
Taxes Incurred | $522 | $4,389 | $3,308 |
Net Profit | $1,219 | $10,241 | $7,718 |
Net Profit/Sales | 0.68% | 5.11% | 3.58% |
The following table and chart are the projected cash flow figures for F & R.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $160,920 | $180,230 | $193,875 |
Cash from Receivables | $14,635 | $19,636 | $21,267 |
Subtotal Cash from Operations | $175,555 | $199,867 | $215,142 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $175,555 | $199,867 | $215,142 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $93,300 | $102,000 | $117,000 |
Bill Payments | $77,017 | $86,232 | $88,638 |
Subtotal Spent on Operations | $170,317 | $188,232 | $205,638 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $2,000 | $2,000 | $2,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $172,317 | $190,232 | $207,638 |
Net Cash Flow | $3,238 | $9,634 | $7,504 |
Cash Balance | $6,138 | $15,773 | $23,277 |
The following table shows the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $6,138 | $15,773 | $23,277 |
Accounts Receivable | $3,245 | $3,634 | $3,910 |
Inventory | $1,815 | $2,033 | $2,187 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $11,198 | $21,440 | $29,373 |
Long-term Assets | |||
Long-term Assets | $20,000 | $20,000 | $20,000 |
Accumulated Depreciation | $1,992 | $3,992 | $5,992 |
Total Long-term Assets | $18,008 | $16,008 | $14,008 |
Total Assets | $29,206 | $37,448 | $43,381 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $7,088 | $7,088 | $7,303 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $7,088 | $7,088 | $7,303 |
Long-term Liabilities | $18,000 | $16,000 | $14,000 |
Total Liabilities | $25,088 | $23,088 | $21,303 |
Paid-in Capital | $12,000 | $12,000 | $12,000 |
Retained Earnings | ($9,100) | ($7,881) | $2,360 |
Earnings | $1,219 | $10,241 | $7,718 |
Total Capital | $4,119 | $14,360 | $22,078 |
Total Liabilities and Capital | $29,206 | $37,448 | $43,381 |
Net Worth | $4,119 | $14,360 | $22,078 |
The Business ratios give an overall idea of how profitable and at what risk level F & R Auto will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. As can be seen from the comparison between industry standards and F&R’s own ratios, there is some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size.
Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher SG&A costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however this is due to the fact that the company will be operating with fewer assets than most companies in the first few years until it can build up enough cash to acquire the tools and facilities that are desired and go beyond the “adequate” level.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 12.00% | 7.57% | 7.00% |
Percent of Total Assets | ||||
Accounts Receivable | 11.11% | 9.71% | 9.01% | 8.80% |
Inventory | 6.21% | 5.43% | 5.04% | 9.60% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 23.80% |
Total Current Assets | 38.34% | 57.25% | 67.71% | 42.20% |
Long-term Assets | 61.66% | 42.75% | 32.29% | 57.80% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 24.27% | 18.93% | 16.83% | 34.80% |
Long-term Liabilities | 61.63% | 42.73% | 32.27% | 24.70% |
Total Liabilities | 85.90% | 61.65% | 49.11% | 59.50% |
Net Worth | 14.10% | 38.35% | 50.89% | 40.50% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 90.00% | 90.00% | 90.00% | n.a. |
Selling, General & Administrative Expenses | 89.32% | 84.89% | 86.42% | 75.20% |
Advertising Expenses | 1.34% | 1.50% | 1.39% | 1.30% |
Profit Before Interest and Taxes | 2.03% | 8.15% | 5.81% | 1.70% |
Main Ratios | ||||
Current | 1.58 | 3.02 | 4.02 | 1.17 |
Quick | 1.32 | 2.74 | 3.72 | 0.65 |
Total Debt to Total Assets | 85.90% | 61.65% | 49.11% | 59.50% |
Pre-tax Return on Net Worth | 42.28% | 101.88% | 49.94% | 1.80% |
Pre-tax Return on Assets | 5.96% | 39.07% | 25.41% | 4.60% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 0.68% | 5.11% | 3.58% | n.a |
Return on Equity | 29.59% | 71.32% | 34.96% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 5.51 | 5.51 | 5.51 | n.a |
Collection Days | 57 | 63 | 64 | n.a |
Inventory Turnover | 10.91 | 10.41 | 10.21 | n.a |
Accounts Payable Turnover | 11.87 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 30 | 30 | n.a |
Total Asset Turnover | 6.12 | 5.35 | 4.97 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 6.09 | 1.61 | 0.96 | n.a |
Current Liab. to Liab. | 0.28 | 0.31 | 0.34 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $4,111 | $14,352 | $22,070 | n.a |
Interest Coverage | 1.92 | 9.61 | 8.35 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.16 | 0.19 | 0.20 | n.a |
Current Debt/Total Assets | 24% | 19% | 17% | n.a |
Acid Test | 0.87 | 2.23 | 3.19 | n.a |
Sales/Net Worth | 43.41 | 13.95 | 9.76 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Routine maintenance | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 |
Small repair jobs | 0% | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $4,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 | $5,500 |
Large repair jobs | 0% | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 | $6,500 |
Total Sales | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Routine maintenance | $400 | $400 | $400 | $400 | $400 | $400 | $450 | $450 | $450 | $450 | $450 | $450 | |
Small repair jobs | $450 | $450 | $450 | $450 | $450 | $450 | $550 | $550 | $550 | $550 | $550 | $550 | |
Large repair jobs | $480 | $480 | $480 | $480 | $480 | $480 | $650 | $650 | $650 | $650 | $650 | $650 | |
Subtotal Direct Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Mr. Ford | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Mr. Ronald | 0% | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Office manager (part time) | 0% | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 | $1,200 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $1,150 | $1,150 | $1,150 | $1,150 | $1,150 | $1,150 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Apprentice mechanic (part time) | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 3 | 3 | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $13,300 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | $16,500 | |
Direct Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | $1,650 | |
Gross Margin | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | |
Gross Margin % | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | 90.00% | |
Expenses | |||||||||||||
Payroll | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | |
Sales and Marketing and Other Expenses | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Depreciation | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | $166 | |
Leased Equipment | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Utilities | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | $400 | |
Insurance | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 15% | $1,080 | $1,080 | $1,080 | $1,080 | $1,080 | $1,080 | $1,253 | $1,253 | $1,253 | $1,253 | $1,253 | $1,253 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $12,446 | $12,446 | $12,446 | $12,446 | $12,446 | $12,446 | $13,769 | $13,769 | $13,769 | $13,769 | $13,769 | $13,769 | |
Profit Before Interest and Taxes | ($476) | ($476) | ($476) | ($476) | ($476) | ($476) | $1,082 | $1,082 | $1,082 | $1,082 | $1,082 | $1,082 | |
EBITDA | ($310) | ($310) | ($310) | ($310) | ($310) | ($310) | $1,248 | $1,248 | $1,248 | $1,248 | $1,248 | $1,248 | |
Interest Expense | $165 | $164 | $162 | $161 | $160 | $158 | $157 | $156 | $154 | $153 | $151 | $150 | |
Taxes Incurred | ($192) | ($192) | ($192) | ($191) | ($191) | ($190) | $277 | $278 | $278 | $279 | $279 | $279 | |
Net Profit | ($449) | ($448) | ($447) | ($446) | ($445) | ($444) | $647 | $648 | $649 | $650 | $651 | $652 | |
Net Profit/Sales | -3.38% | -3.37% | -3.36% | -3.35% | -3.35% | -3.34% | 3.92% | 3.93% | 3.93% | 3.94% | 3.95% | 3.95% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $11,970 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | $14,850 | |
Cash from Receivables | $0 | $44 | $1,330 | $1,330 | $1,330 | $1,330 | $1,330 | $1,341 | $1,650 | $1,650 | $1,650 | $1,650 | |
Subtotal Cash from Operations | $11,970 | $12,014 | $13,300 | $13,300 | $13,300 | $13,300 | $16,180 | $16,191 | $16,500 | $16,500 | $16,500 | $16,500 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $11,970 | $12,014 | $13,300 | $13,300 | $13,300 | $13,300 | $16,180 | $16,191 | $16,500 | $16,500 | $16,500 | $16,500 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $7,200 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | $8,350 | |
Bill Payments | $262 | $7,797 | $6,382 | $6,381 | $6,380 | $6,379 | $6,422 | $7,677 | $7,336 | $7,335 | $7,334 | $7,333 | |
Subtotal Spent on Operations | $7,462 | $14,997 | $13,582 | $13,581 | $13,580 | $13,579 | $14,772 | $16,027 | $15,686 | $15,685 | $15,684 | $15,683 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | $167 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $7,628 | $15,164 | $13,749 | $13,748 | $13,747 | $13,746 | $14,938 | $16,194 | $15,852 | $15,852 | $15,851 | $15,850 | |
Net Cash Flow | $4,342 | ($3,149) | ($449) | ($448) | ($447) | ($446) | $1,242 | ($3) | $648 | $648 | $649 | $650 | |
Cash Balance | $7,242 | $4,092 | $3,644 | $3,196 | $2,750 | $2,304 | $3,546 | $3,543 | $4,190 | $4,839 | $5,488 | $6,138 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $2,900 | $7,242 | $4,092 | $3,644 | $3,196 | $2,750 | $2,304 | $3,546 | $3,543 | $4,190 | $4,839 | $5,488 | $6,138 |
Accounts Receivable | $0 | $1,330 | $2,616 | $2,616 | $2,616 | $2,616 | $2,616 | $2,936 | $3,245 | $3,245 | $3,245 | $3,245 | $3,245 |
Inventory | $0 | $1,463 | $1,463 | $1,463 | $1,463 | $1,463 | $1,463 | $1,815 | $1,815 | $1,815 | $1,815 | $1,815 | $1,815 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $2,900 | $10,035 | $8,171 | $7,722 | $7,275 | $6,828 | $6,383 | $8,296 | $8,603 | $9,250 | $9,899 | $10,548 | $11,198 |
Long-term Assets | |||||||||||||
Long-term Assets | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
Accumulated Depreciation | $0 | $166 | $332 | $498 | $664 | $830 | $996 | $1,162 | $1,328 | $1,494 | $1,660 | $1,826 | $1,992 |
Total Long-term Assets | $20,000 | $19,834 | $19,668 | $19,502 | $19,336 | $19,170 | $19,004 | $18,838 | $18,672 | $18,506 | $18,340 | $18,174 | $18,008 |
Total Assets | $22,900 | $29,869 | $27,839 | $27,224 | $26,611 | $25,998 | $25,387 | $27,134 | $27,275 | $27,756 | $28,239 | $28,722 | $29,206 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $7,584 | $6,169 | $6,168 | $6,167 | $6,166 | $6,165 | $7,433 | $7,091 | $7,090 | $7,089 | $7,088 | $7,088 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $7,584 | $6,169 | $6,168 | $6,167 | $6,166 | $6,165 | $7,433 | $7,091 | $7,090 | $7,089 | $7,088 | $7,088 |
Long-term Liabilities | $20,000 | $19,833 | $19,667 | $19,500 | $19,333 | $19,167 | $19,000 | $18,833 | $18,667 | $18,500 | $18,333 | $18,167 | $18,000 |
Total Liabilities | $20,000 | $27,418 | $25,836 | $25,668 | $25,501 | $25,333 | $25,165 | $26,266 | $25,758 | $25,590 | $25,423 | $25,255 | $25,088 |
Paid-in Capital | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 |
Retained Earnings | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) | ($9,100) |
Earnings | $0 | ($449) | ($897) | ($1,344) | ($1,790) | ($2,235) | ($2,679) | ($2,032) | ($1,383) | ($734) | ($84) | $567 | $1,219 |
Total Capital | $2,900 | $2,451 | $2,003 | $1,556 | $1,110 | $665 | $221 | $868 | $1,517 | $2,166 | $2,816 | $3,467 | $4,119 |
Total Liabilities and Capital | $22,900 | $29,869 | $27,839 | $27,224 | $26,611 | $25,998 | $25,387 | $27,134 | $27,275 | $27,756 | $28,239 | $28,722 | $29,206 |
Net Worth | $2,900 | $2,451 | $2,003 | $1,556 | $1,110 | $665 | $221 | $868 | $1,517 | $2,166 | $2,816 | $3,467 | $4,119 |
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Written by Dave Lavinsky
Over the past 20+ years, we have helped over 4,000 entrepreneurs create business plans to start and grow their car dealerships. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a car dealership business plan template step-by-step so you can create your plan today.
Download our Ultimate Car Dealership Business Plan Template here >
A business plan provides a snapshot of your car dealership as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
If you’re looking to start a car dealership or grow your existing car dealership you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your car dealership in order to improve your chances of success. Your car dealership business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for a car dealership are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a car dealership is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
Your business plan should include 10 sections as follows:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of car dealership you are operating and the status; for example, are you a startup, do you have a car dealership that you would like to grow, or are you operating a chain of car dealerships.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the car dealership industry. Discuss the type of car dealership you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of car dealership you are operating.
For example, you might operate one of the following types:
In addition to explaining the type of car dealership you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
In your industry analysis, you need to provide an overview of the car dealership business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the car dealership industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards vehicles, it would be helpful to ensure your plan calls for plenty of options.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your car dealership business plan:
The customer analysis section of your car dealership business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, soccer moms, baby boomers, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of car dealership you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than college students.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most car dealerships primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Car Dealership Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other car dealerships.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This primarily includes private sellers. You need to mention such competition to show you understand that not everyone in the market for a car shops at a dealership.
With regards to direct competition, you want to detail the other car dealerships with which you compete. Most likely, your direct competitors will be car dealerships located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car dealership business plan, your marketing plan should include the following:
Product : in the product section you should reiterate the type of car dealership that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling new cars, will you offer leasing options?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the inventory you will maintain and the price ranges.
Place : Place refers to the location of your car dealership. Document your location and mention how the location will impact your success. For example, is your car dealership located next to a high-traffic retail area, or on a main thoroughfare, etc. Discuss how your location might provide a steady stream of customers.
Promotions : the final part of your car dealership marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
Building Trust
Building trust between a car dealer and its customers is vital to a successful sales strategy. This should be clear in the business plan, where funders look to see the feasibility of the company once it’s launched. Earning customer trust is important because of the bad reputation, deserved or not, for car salespeople to try to take advantage of customers and because of the high amount of stress which the purchase of a large item like a car causes for buyers.
Below are the best ways to build trust in your customers.
Referrals and Testimonials
Running a dealership with a heavy focus on satisfied customers referring other potential customers can create positive word-of-mouth between contacts who already know and trust each other. An additional element to this is securing testimonial statements (either written or videotaped) from happy customers. This requires having those happy customers in the first place, as customers can sense if the testimonials are canned and will mistrust even further.
Transparency
If auto dealerships were extremely clear about all pricing, fees, and costs of ownership up front, customers might change their opinion of these companies. However, too often there is a great focus on a low sticker price to attract customers who later on feel they’ve been lied to when all of the add-on charges are explained. Can your dealership change this industry practice and make transparency into a competitive advantage?
Taking Your Time
By taking the sales process at a rate that the customer is comfortable with, you recognize that it is a difficult step for customers to walk into the world of the dealer and play on his home turf, so to speak. They will be feeling defensive and a bit thrown off, so tell them that you will take the time to answer any questions they have and to make sure they understand and have considered their options before moving forward.
While the earlier sections of your car sales business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your car dealership such as serving customers, completing necessary paperwork, keeping the dealership clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
To demonstrate your car dealership’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the car dealership business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in car dealerships and/or successfully running retail and small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 20 customers per week or 75? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your car dealership, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $1,000,000 fleet order, that would cost you $500,000 to fulfill. Well, in most cases, you would have to pay that $500,000 now for inventory, transportation, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets, be sure to include several of the key costs needed in starting or growing a car dealership:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.
Putting together a business plan for your car dealership is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the car dealership business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful car dealership business.
You can download our car dealership business plan PDF here or use our sample car dealership business plan to help you get started on your own business plan.
For the quickest and easiest way to complete your business plan, Growthink’s Ultimate Car Dealership Business Plan Template has numerous features not available in the free template including automated financial projections which calculate your complete five-year financial projections including income statements, balance sheets, and cash flow statements.
Don’t you wish there was a faster, easier way to finish your Car Dealership business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan advisors can give you a winning business plan.
Are you an automotive engineer with big dreams of launching your own business? We know that creating a solid business plan can be a daunting task, but fear not! ClickUp has the perfect solution for you.
Introducing our Business Plan Template for Automotive Engineers. This template is specifically designed to cater to the unique needs of the automotive industry, helping you outline your objectives, strategies, market analysis, financial projections, and implementation plans with ease.
With ClickUp's Business Plan Template, you'll be able to present a comprehensive and structured plan to potential investors or stakeholders, showcasing your expertise and vision for a successful automotive venture. Don't let the complexities of business planning hold you back - get started with our template today and drive your dreams forward!
When automotive engineers use the Business Plan Template designed specifically for their industry, they benefit from:
ClickUp's Business Plan Template for Automotive Engineers provides a structured approach to creating a comprehensive business plan for the automotive industry. Here are the main elements of this template:
Creating a business plan for automotive engineers might seem daunting, but with ClickUp's Business Plan Template and the following steps, you'll be able to outline your goals and strategies with ease:
Start by clearly defining your objectives for your automotive engineering business. What do you want to achieve? Is it launching a new product, expanding your services, or increasing market share? Identifying your objectives will help guide your business plan and set the direction for your company.
Use the Goals feature in ClickUp to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives for your automotive engineering business.
To create an effective business plan, you'll need to understand your target market. Research your potential customers, competitors, and industry trends. Identify the needs and preferences of your target audience and determine how your automotive engineering services can meet those needs better than your competitors.
Utilize the Table view in ClickUp to organize and analyze your market research data, including customer profiles, competitor analysis, and industry trends.
Outline the specific products and services your automotive engineering business will offer. Consider the unique value proposition that sets your offerings apart from competitors. Whether it's designing electric vehicles, developing autonomous driving technology, or improving engine efficiency, clearly define your expertise and how it addresses the needs of your target market.
Create tasks in ClickUp to break down the development process for each product or service, assigning responsibilities and setting deadlines.
To attract customers to your automotive engineering business, you'll need a solid marketing plan. Determine the most effective marketing channels for reaching your target audience, such as digital advertising, industry conferences, or partnerships with auto manufacturers. Develop strategies for brand positioning, lead generation, and customer acquisition.
Use the Calendar view in ClickUp to plan and schedule your marketing activities, ensuring a consistent and targeted approach.
A crucial aspect of any business plan is financial planning and projections. Estimate your startup costs, operational expenses, revenue forecasts, and profitability projections. Consider factors such as equipment costs, employee salaries, marketing expenses, and potential sources of funding.
Utilize the Dashboards feature in ClickUp to track and analyze your financial data, including cash flow, expenses, and revenue, ensuring that your business remains financially healthy.
By following these steps and using ClickUp's Business Plan Template, you can create a comprehensive and effective business plan for your automotive engineering business. Remember to regularly review and update your plan as your business evolves and market conditions change.
Automotive engineers can use this Business Plan Template for Automotive Engineers to streamline their business planning process and create a comprehensive plan for their automotive projects.
First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.
Next, invite relevant members or guests to your Workspace to start collaborating.
Now you can take advantage of the full potential of this template to create a detailed business plan:
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Auto repair shops should be present anywhere; they fix cars that have broken down or repair any issues of a vehicle to avoid further problems and complications that may escalate that could result in accidents and mishaps. Auto mechanics are skilled people who are experts in handling and fixing vehicles parts and installing them safely into the vehicle. If you’re an auto mechanic and you want to open a business where you can repair troubled cars, one of the first things you need to do is create a business plan. A business plan will serve as your roadmap on which areas your business must follow to ensure you get to the right destination, and the destination is the success of your business. Read the article to know how to write an auto repair service business plan.
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An auto repair shop, or also known garage or a workshop is an establishment where vehicles are repaired by auto mechanics and technicians. They offer various repair services for vehicles. Some common services they offer include:
Start your business plan with a cover page where you put down your information such as the name of your auto repair shop, its address, your name as the owner, and the date when the plan is completed.
The next first section of the business plan is the executive summary . This section provides an overview of each section of your business plan. Make sure this does not exceed more than one page. It should highlight your mission statement, its business structure, its scope of work, the services you offer, the requested amount of funding from investors, your total investment in the business, and your long-term goals for your business.
This section is where you describe your auto repair shop company . Include details such as the location of the shop, its entity, details of your repair shop, the services you offer and its pricing, the history of your company, and the nature of your business. Include details of your target customers, the purpose why your business exists, and your advantage compared to your competition. Attach all the permits, certifications, and licenses you acquired that let you operate your business legally.
This section is where you comprehensively describe details of your fish farm, including construction costs, ease of operation, and productivity, the equipment, vehicles, tools, fixtures, furniture, and other inventory items that are required to run your business. Include other important details such as the topography and zoning details of your business location.
Don’t forget to include details of your data management and risk management . Explain how you store and use your data without a threat of breaching confidential information and explain your procedures on how you identify risks in your business and how you address them to prevent unfortunate circumstances from happening.
This section is where you describe your organization details such as your staff and your management. List down the names of all your mechanics and include their professional background information such as employment experience, professional training, and education, certifications, or degrees held related to the auto repair services. Below the list, make a chart of your organizational structure where you describe each employee’s job position and to whom they report. Don’t forget to include information regarding your contractors (if you have one) who provide you with equipment or products that you will need for your business.
The marketing plan is where you describe how you’re going to advertise and promote your business to your customers. All you need to write is to describe your target market and the location of the business. Then describe your marketing strategies that relate to your target customers. Describe how your strategies can bring your target market to your shop and help you earn profit.
The last part of your business plan is your financial plan. This is where you include details regarding your finances and your financial projection for your business in the coming years. Here are the following details that you should include in your plan:
Yes, an auto repair shop is highly profitable since most car owners will need services from the repair shop to fix their cars. Annually, a repair shop can earn $100,000 o average.
The cost varies depending on the equipment, facilities, insurance, inventory, accounting , marketing, and administrative fees that you have. The approximate cost to open an auto repair shop is over $37,000.
After drafting your business plan, review and revise any errors or inaccurate information that you’ve spotted. Take note of how you write your business plan too. Make sure it sounds formal but it’s comprehensible and concise. If you’re head is swimming with too much information, leave your business plan for a day or two and come back to it and check if you need to add more information or if it needs more revision. To help you get started on making a business plan for your auto repair shop, download our free sample templates provided above!
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Learn how to start a profitable auto repair shop with this sample business plan. Download a free pdf template and get tips on industry overview, location, team, marketing, and financials.
Our auto repair business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the garage's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your auto repair business's concept, market analysis ...
August 27, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful car dealership. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your car dealership's identity, navigate the competitive market, and secure funding for ...
Download a free auto repair shop business plan template with pre-filled examples and instructions. Customize it to your needs and format it for lenders or investors.
Last year, according to IBISworld.com, American new car dealerships brought in revenues of $579 billion and employed 936,000 people. There were 18,526 businesses in this market, for an average of $31.25 million per business. This represents approximately one dealer company for every 16 thousand Americans.
The financial plan overview should succinctly summarize your financial goals and projections, including revenue targets and profit margins, to provide a clear picture of your store's financial trajectory. Example: Precision Auto Parts aims for $4.5 million in annual revenue by 2028, targeting a 10% EBITDA margin.
12/1/2022 - Begin build-out of the shop and purchase equipment and supplies. 12/15/2022 - Begin networking at industry events and implement the marketing plan. 1/15/2023 - Finalize contracts for auto repair technicians. 2/15/2023 - Tim's Timely Auto Repair officially opens for business.
Learn how to write an auto repair shop business plan with a free downloadable template. Find out the key elements, market analysis, financial projections, and tips for success.
For streamlined customization, we provide an "sample business plan for auto repair shop pdf" for download. This document is vital for entrepreneurs committed to developing a robust and effective strategy for starting or growing their auto repair shop. The 'AI Business Plan Generator' serves as a comprehensive guide, offering profound insights ...
create a detailed Auto Garage business plan. It will guide you in the initial phases of your startup and help you later on. To unlock help try Upmetrics! Maxwell Auto Garage, LLC is a U.S based and licensed auto repair garage. We have been able to secure a standard and well-positioned garage facility in a central and busy district in Detroit -
Secure $122,750 through the Canada Small Business Financing Program. Secure a location for the shop in Saskatoon, Saskatchewan. Purchase all equipment and inventory outlined in "6.0 Financial Plan". Recruit one Sales Rep and Tire Technician from the Regina location, as agreed upon. Open for business on July 1, 2021.
Learn how to create a business plan for your auto repair business with this step-by-step guide. Download a free template and get tips on market research, funding, and strategy.
Learn how to start your own auto repair shop with this sample business plan. Find out the start-up costs, services, market analysis, and financial projections for F & R Auto Repair.
Bring together all your enquiries, estimates, quotes, jobs, staff, invoices, and more — all in one place, across every device. Save time and eliminate stress with Tradify! Try Free for 14 Days! Every auto repair business, new or established, needs a solid business plan. Download your free auto repair business plan template today!
Car Dealership Business Plan. Over the past 20+ years, we have helped over 4,000 entrepreneurs create business plans to start and grow their car dealerships. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a car dealership business plan template step ...
PDF | Create a business plan for a leading automotive manufacturer including SWOT analysis, competition analysis | Find, read and cite all the research you need on ResearchGate ... Preparation of ...
Creating a business plan for automotive engineers might seem daunting, but with ClickUp's Business Plan Template and the following steps, you'll be able to outline your goals and strategies with ease: 1. Define your objectives. Start by clearly defining your objectives for your automotive engineering business.
21531374-auto-repair-sample-business-plan.pdf - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Scribd is the world's largest social reading and publishing site.
1. Executive Summary. Start your business plan with a cover page where you put down your information such as the name of your auto repair shop, its address, your name as the owner, and the date when the plan is completed. The next first section of the business plan is the executive summary. This section provides an overview of each section of ...
Edit the auto repair shop business plan template online, or download it. There are 3 ways to use this template: Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software. Download in PDF: if you're just after a little inspiration, you can download ...
Automotive Repair Shop Business Plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. This business plan seeks financing to start an automotive repair shop in Dar es Salaam, Tanzania. It will provide automotive repair and part sales services. The owners will be Nelly and Vance. If funded, the shop aims to become a leader in its market for ...
Business_Plan_Auto_Repairs_And_Maintenance - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or view presentation slides online. This is a business plan for a company providing unspecified products and services. The plan outlines the company's mission, objectives, keys to success, market analysis, and strategy for its website and sales.
This business plan is for an automotive engineering training institute in Kenya. The summary outlines plans to provide automotive engineering training courses and obtain certification. Key aspects include starting with 2 employees, offering competitive tuition rates, targeting both individual students and partner automotive companies, and projecting break-even within one year of operations ...