Free Automotive Repair Shop 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.
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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 $100,000 for the development of an automotive repair shop while showcasing the expected financials and operations over the next three years. The Automotive Repair Shop, Inc. (“the Company”) is a New York based corporation that will provide automotive repair services and part sales in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Automotive Repair Shop will be engaged in the business of providing automobile repair and other automotive services to the general public. The Company has the ability to service almost any domestic or foreign automobile. The Company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts. Once Mr. Doe brings the business to profitability, he intends to further expand the after-market auto parts revenue center and increase the sports tuning services, which command higher premiums that standard automotive repair. The third section of the business plan will further describe the services offered by the Automotive Repair Shop.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 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 Automotive Repair Shop’s mission is to become the recognized leader in its targeted market for car and truck 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 repair 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 after-market tuning and performance enhancing services which generate a larger margin that standard automotive repair. Mr. Doe will also increase the marketing and advertising budget of the business to increase the general repair revenues of the business.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Automotive Repair Shop, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Automotive Repair Shop requires $100,000 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 Automotive Repair Shop, 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 Automotive Repair Shop. 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 Automotive Repair Shop.
3.1 Automotive Repair Services
The primary 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. Mr. Doe will maintain an extensive shop which can fix any 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.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the automotive 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-2009, at which point the economy will begin a prolonged recovery period. However, automotive repair shops operate with great economic stability as vehicles are necessity and very few people have the ability to fix their own vehicles beyond very minor repairs. As such, the Automotive Repair Shop 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 auto 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. The typical repair shop operates one location and has annual revenue between $250,000 and $1 million. Companies with higher revenue typically operate more than one location, with revenue per location close to $1 million. Revenue per location is lower for large repair chains, like Monroe, that typically provide specialized but lower-skilled services like muffler and windshield replacement. About 60 percent of industry revenue comes from mechanical repair and 40 percent from body shop work. Car repair shops usually specialize in a particular field of repair because of the specialized knowledge.
4.3 Customer Profile
For automotive service sales, 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 Automotive Repair Shop.
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 Automotive Repair Shop 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 Automotive Repair Shop.
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.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Automotive Repair Shop 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. The Automotive Repair Shop will also use an internet based strategy. This is very important as many people seeking local services, such as automotive repair businesses, now the Internet to conduct their preliminary searches. Mr. Doe will register the Automotive Repair Shop 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 repair 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
• The Automotive Repair Shop will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 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 repair services are an essential service, and many people lack the ability to fix their cars on their own. 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