Free Appliance Repair Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of an appliance repair service while showcasing the expected financials and operations over the next three years. Appliance Repair Service, Inc. (“the Company”) is a New York based corporation that will provide repairs of appliances and sales of appliances to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The primary revenue center for the business will come from the sale of appliance repairs that will be rendered onsite by both trained customer service employees and independent contractors that will go to the customers’ locations. This is an extremely important revenue center for the business as the contribution margins generated from providing these services is extremely high. The secondary revenue center for the business will come from the sales of appliances to the general public. The business will carry a diverse inventory of appliances and parts that will be sold to customers that have irreparable appliances. The business will generate moderate streams of revenue through this segment of the Company’s operations. The third section of the business plan will further describe the services offered by the Appliance Repair Service, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s location. • Financing for the first six months of operation. • Capital to purchase the Company’s initial inventory of appliances. Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
The Appliance Repair Service’s mission is to become the recognized leader in its targeted market for sales for appliance repair services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Appliance Repair Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Appliance Repair Service requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Appliance Repair Service, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Appliance Repair Service. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products and services offered by the Appliance Repair Service.
3.1 Appliance Repair Services
The Company will generate substantial streams of secondary revenue through the sale of appliance repair services. The business will use both in-house staff (that are properly trained to provide repairs) as well as third party independent contractors that go directly to customers homes to repair appliances. Management anticipates that the per hour fee for these services will range from $20 to $30 depending on the nature of the appliance.
3.2 Sales of Appliances
The secondary source of revenue for the business will come from the sale of appliances. As stated in the executive summary, the business will carry a diverse line of appliances including, but not limited to: • Dryers • Washers • Small Appliances • Parts Mr. Doe anticipates that for each dollar of revenue generated through the sale of appliances, the business will earn 60 cents of operating income.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the appliance repair industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue for a significant period of time, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
Within the United States, there are approximately 9,000 businesses that provide sales of appliances as well as appliance repair services. Each year, these businesses aggregately generate more than $2.2 billion dollars of revenue while providing jobs for more than 61,000 people. In each of the last five years, total payrolls have exceeded $750 million dollars. The yearly revenue growth of the industry has remained on par with that of the United States’ population growth. This trend is expected to continue in the foreseeable future.
4.3 Customer Profile
The Appliance Repair Service average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $35,000 • Lives or works no more than 20 miles from the Company’s location. • Will spend $100 to $300 to repair an appliance.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Appliance Repair Service intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with local appliance stores that will outsource repair needs to the Company.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Appliance Repair Service to easily target individuals within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Appliance Repair Service will also use an internet based strategy. This is very important as many people seeking local services, such as appliance repair services, now the Internet to conduct their preliminary searches. Mr. Doe will register the Appliance Repair Service with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the company, its inventories, its ability to provide appliance repairs, and relevant contact information. Finally, Mr. Doe intends to maintain strong connections with local appliance stores that will use the Company, on a contracted basis, to render repair services to their customers. This will ensure that the business is able to receive a substantial and highly predictable stream of revenues.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Appliance Repair Service will have an annual revenue growth rate of 9% per year.
• The Owner will acquire $150,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are moderately sensitive to changes in the general economy. However, the demand for ongoing appliance repair remains static despite economic conditions. Only a more severe economic pullback could result in a substantial decrease in the Company’s revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis