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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Performance Automotive 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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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
  • Loan Amortization and ROI Tools
  • 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 shop with a focus on performance enhancing services while showcasing the expected financials and operations over the next three years. Performance Automotive, Inc. (“the Company”) is a New York based corporation that will provide performance enhancing automotive services and part sales to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

Performance Automotive, Inc. will be actively engaged in the business of providing automobile tuning and performance enhancing services to the general public. Through the shop, the business will be able to install and enhance a stock vehicle’s performance and/or superficial features. From time to time, the business will also acquire stock vehicles with the intent on increasing the car’s value by adding several performance and profile enhancing features. This, coupled with the automotive tuning/upgrade services offered by the Company, will provide the business with highly predictable revenue streams on a year round basis. The third section of the business plan will further describe the services offered by Performance Automotive, 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.

1.3 Mission Statement

It is the mission of Performance Automotive, Inc. to provide outstanding after-market upgrades and tuning services to the general public. Mr. Doe is committed to developing Performance Automotive, Inc. into a premier after-market tuning shop that is recognized by the car tuning enthusiast community.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail automotive repair and tuning 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 (especially within the 18 to 34 year old demographic) within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Performance Automotive, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Performance Automotive 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 Performance Automotive, 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 Performance Automotive, Inc. 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 tuning services and products offered by Performance Automotive, Inc.

3.1 Automotive Tuning Services

The modification of stock automobiles has become extremely popular over the last ten years with the influx of after-market performance parts. Companies that specialize in after-market performance tune-ups generate significantly higher gross margins on labor and products sold as unlike automotive repair, automotive tuning is a non-essential service, and those that are interested in automotive tuning are willing to pay a premium for excellent service. Within the Company’s market, the after-marketing tuning and upgrade of stock vehicles is extremely popular, and Management sees a significant opportunity to develop a profitable business in this region.

3.2 Sales of Tuned Vehicles

From time to time, the Company intends to acquire stock vehicles with the intent to customized, tune, and upgrade the car for resale into the open market. This will generate a significant portion of the Company’s revenues, and Management anticipates that each tuned vehicle will generate profits in excess of $5,000 per vehicle sold.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the retail automotive 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.

4.2 Industry Analysis

About 130,000 companies in the US are involved primarily in automotive services with combined annual revenue of $65 billion. The industry is highly fragmented: 10,000 companies have annual revenue over $1 million, 150 have revenue over $10 million. Approximately 10% of this market is dedicated to the after-market performance and tuning of stock vehicles. The profitability of individual companies depends on primarily on volume, because many costs are fixed. However, the gross margins of performance and tuning businesses are significantly higher than automotive repair shops. This differentiation has to do with the fact that customers are willing to pay a premium for a quality performance enhancement job versus a simple repair job to get a car back to operating condition. Historically, performance and automotive enhancement businesses earn 50% more profit per dollar of revenue than their repair shop counterparts.

4.3 Customer Profile

The Company expects that the average customer of Performance Automotive, Inc. will be a male automotive enthusiast that has a specific interest in middle market sedans and sports cars that are tuned and customized according to their specifications. Management further expects that the average customer will be between the ages of 21 and 35, and will have an annual household income in excess of $45,000 per year. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

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

Performance Automotive, Inc. 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

  • • 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

Management intends to use a number of marketing strategies to promote sales of its automotive services and after-market parts. Primarily, the business intends to develop its visibility through its retail location, which will feature eye-catching signage on the exterior of the automotive shop. Management feels that having a high visibility retail location will provide a significant amount of its early revenues. Performance Automotive, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as automotive tuning shops, now the Internet to conduct their preliminary searches. Mr. Doe will register the Company with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will showcase the Company’s portfolio of customized vehicles, vehicles for sale, relevant contact information, product lines carried, and information regarding how to get to Performance Automotive, Inc.’s location. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the specialized automotive services that the Company is selling.

5.3 Pricing

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

  • • Performance Automotive, Inc. will have an annual revenue growth rate of 10% 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. During times of economic recession, Performance Automotive will advertise the fact that it can perform normal automotive repair services to the general public, which will ensure the continued profitability of the business on a monthly basis.

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