Free Auto Inspection Company 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
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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 automotive inspection business while showcasing the expected financials and operations over the next three years. Auto Inspection Company, Inc. (“the Company”) is a New York based corporation that will provide automotive inspection, minor repair, and part sales in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue center for the business will come from the ongoing inspection of vehicles in regards to their general usage and for emissions testing purposes. The Company will maintain licensure with the State to ensure that it can provide emissions testing on any vehicle. Auto Inspection Company, Inc. will charge a flat fee for this service. The Company will also engage in the business of providing minor automobile repair and other automotive services to the general public. The Company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts. The third section of the business plan will further describe the services offered by the Auto Inspection Company.
1.2 The Financing
Mr. Doe is seeking to raise $160,000 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.
1.3 Mission Statement
The Auto Inspection Company’s mission is to become the recognized leader in its targeted market for car and truck inspection and minor repair services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the automotive service 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
As time progresses, Management will continually increase the scope of the business by developing additional services that will increase the profitability of the business. This includes greater development of automotive repair services.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Auto Inspection Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Auto Inspection Company 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 the Auto Inspection Company, 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 the Auto Inspection Company. 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 automotive services offered by the Auto Inspection Company.
3.1 Automotive Inspection Services
The primary revenue center for the business will come from multi-point and emission inspections for vehicles. The Company, through its facility, will maintain several state of the art pieces of diagnostic equipment for detecting problems with a vehicle or measuring emissions. Many states have now allowed the outsourcing to this service to shops that maintain proper state issued certifications. Mr. Doe is currently in the process of receiving the state certification requirements to act as an emissions and inspection agent. The Company will charge a flat fee for this service.
3.2 Minor Automotive Repair Services
The secondary service offered by the Company is the general repair of automobiles for the general public. The Company will have the ability to service most domestic and foreign automobiles. The facility will maintain a moderate shop which can fix any minor automotive issue. The business generates income from both the sale of the mechanic’s labor and the sale of after-market parts which may be needed for the repairs. These services will be closely tied into the Company’s inspection services for vehicles that do not pass safety, emission, or general use standards.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the automotive inspection and 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 until mid-2010, at which point the economy will begin a prolonged recovery period. However, automotive inspection shops operate with great economic stability as vehicles are necessity. Additionally, automotive inspections (especially related to emissions) are mandated as law. As such, the Auto Inspection Company will be able to maintain profitability despite the current economic climate.
4.2 Industry Analysis
About 130,000 companies in the US are involved primarily in automotive inspection and repair, with combined annual revenue of $65 billion. Only ten companies have revenue over $100 million, including Midas, Monroe Muffler Brake, and Diamond Triumph Auto Glass. Some car repair work is also provided by 45,000 gas stations; 24,000 new car dealerships; and branches of chain stores, like Sears and Kmart. The industry is highly fragmented: 10,000 companies have annual revenue over $1 million, 150 have revenue over $10 million. Demand depends on the number of cars, how much they're driven, and how complicated they are to fix. The profitability of individual companies depends on volume, because many costs are fixed. Large companies are more likely to use expensive diagnostic equipment efficiently and benefit from advertising, but the economies of scale aren't large.
4.3 Customer Profile
For automotive inspection services, Management anticipates that the market will be locally based. Management anticipates that its expected service clientele will be a local, middle to upper middle income earning male and females between the ages of 25 and 75. As a vast majority of adults in this country own a vehicle, it is difficult to discern the “average” customer of the Auto Inspection Company.
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 Auto Inspection Company 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 Auto Inspection Company.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• 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 Auto Inspection Company to easily target men and women 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. Auto Inspection Company will also use an internet based strategy. This is very important as many people seeking local services, such as automotive inspection businesses, now the Internet to conduct their preliminary searches. Mr. Doe will register the business with online portals so that potential customers can easily reach the business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the automotive inspection services that the Company is selling.
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
• Auto Inspection Company, Inc. will have an annual revenue growth rate of 16% 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 business’s revenues are only moderately sensitive to changes in the general economy. Automotive inspection services are an essential service, and states have laws requiring that cars be inspected and certified on a regular basis regardless of the overall economic climate. As such, Management does not anticipate that negative changes in the overall economic climate will impact the Company’s ability to generate revenues and maintain profitability.
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