Chapter I: Executive Summary
Fast and Reputable Auto Repair (FRAR) will be a start-up enterprise offering a full domestic repair services. FRAR will constitute a retail shop full loaded with all repair parts, serving the England market. Within England, the shop will be expected to grow into a business with an enormous sales volume within a period of 4years.
FRAR will be distinctive in availing convenient repair services guaranteed of quality as well as continuous supply to our clienteles. This will be our basic move in controlling unnecessary shortages. Customers will be served at a wide range in repair service offers or even related parts where a variety of the same will availed. FRARE will essentially run two departments, under service and also the spare parts/ or repair division which will work collaboratively in offer all-time spare parts customer services. The departments will support each other in order to maintain FRAR competitive edge amid with unfair competition within out target niche. All customer requirements on repair parts will be definitely met under our stocked and more convenient retail locations (Sclar 236). FRAR will have 3different locations, each stocked with 15bays, to serve customers who need immediate fixing of their cars. We will avail faster services to avoid keeping customers waiting, and similarly offer after-sales services to ensure customer satisfaction. Our focus will be customer-oriented in order to possibly secure new clienteles plus retain our loyal ones. We will train all our staff to ensure quality services as well as customized excellence services tour diverse clients. Through this, strong bonds between our customers and our staff will be developed, thereby securing customers' trust and honesty.
Chapter II: Mission
Fast and Reputable Auto Repair is premised on being all-time quality provider of auto repair services, with a full pack of all the auto parts. FRAR will be tailored towards personalized services to our customers by always availing fast and standardized services. Similarly, we focus at ensuring maintain highly computerized system on repair parts inventory, to effectively align them with the stock. At the same time, we will maximize turnover inventory on repair parts via maintenance of a balanced inventory level. We will also ensure FRAR has an advanced and a reliable supplier attachment that are most reliable and can perhaps undertake timely delivery.
Keys to Success
FRAR keys to accomplishment will entail standard and reliable auto repair services, developing and maintaining a strong network or bond with auto-repair components suppliers. In addition, FRAR will extensively ensure availability of auto parts with unlimited supply and no shortage as an attempt to ensure fast orders and delivery of key auto components.
Chapter III: Company Summary
Fast and Reputable Auto Repair will be a new business enterprise with four management team members, inclusive of one overall manager, a sales executive, a finance administrator and one member to the partnership. FRAR will avail standard and reliable auto services and various auto parts targeting both the upper as well as middle class market, as deliberate move in meeting all customer needs' category. FRAR will be privately owned by four partners and the startup capital will be from member /partners contributions.
Incorporation of FRAR will be at England, privately owned by four partners, operated and directed by hired management team. The business is anticipated to operate under going-concern basis in a bid to maximize sales volumes and profits.
Contributions will be made on an equal basis. Any more capital requirement will be financed from a bank loan, secured by member properties. Such a move will approved by our management team.
Chapter IV: Products and services
FRAR will be competent in its supply of all auto repair materials for all vehicles; makes and models. Strategic focus in availing 15bays for each location and competent staff availing standard and quality services will result into expected customers' unlimited flow. FRAR will be focused at accuracy and honesty to its customers while estimating costs and timely repair completion. Confidence with our anticipated customers will be won when FRAR's staff delivers their promises, thereby developing strong bonds with our clients leading to a strong customer base establishment. Technological advancement will be applied to facilitate reliable record keeping on available auto parts aiming at averting any possible limited orders on the same (Abrams 123). Inventory turnover will be maximized and strong relationship with the suppliers established to avoid auto components' shortage and ever ensure timely delivery.
Chapter V: Market Analysis Summary
FRAR will focus on meeting local services demands as well as attending cars that will be towed in from locals and or traffic freeways. We will establish contacts with the key local towing truck companies. Such companies will be essential in facilitating services of towing stalled cars to our auto repair shop. We anticipate our revenues from the local client base to be about 75% while 25% will be from freeway tow-ins plus our valuable local customers.
FRAR will be targeting both upper as well as middle income markets, where standardized and/ or high quality faster expedient services are demanded. Clients within that segmentation are normally ready to part with additional premiums just to acquire superfluous services. Such customer group, tries hard to aver the possibly of having their cars tied up within repair shops.
Local residents: FRAR regular customer base
To secure business stability, we will require a healthy, regular revenue base which will be facilitated by the large customer base that we will establish among our locality.
Emergency Towing Segment
We expect 25% of the revenue inflow to be from freeway traffic and local under our emergency towing division. We will therefore engage any viable towing truck companies to facilitate the towing-in of various vehicles. This will guaranteed our dedication in offering standard and speedy services are availed, thereby capturing better market segment.
Target Market Segment Strategy
FRAR will concentrate in our targeted market among high and middle class niche. This will help us to secure sound or reputable image from the perception of our targeted market. To achieve this, we will avail convenient repair services, ensure the service is excellent and in positive collaboration with various towing companies within the locality.
FRAR will ensure convenience is adhered to since it's the uttermost need of both the travelers and the upper plus middle class clients. A significant requirement of repair auto parts or even related services is on high demand among the commuting traffic or the tourism traffic clienteles within the local-England highways hence the need for expedience services (Sclar 216).
Service Business Analysis
Auto repair services are known to be fragmented, whereby most auto businesses offer either parts inventory or even repair services solely. FRAR will therefore entail a center offering both services hand-in-hand, thus facilitating convenience within a single locality. FRAR will benefit from the fact that upper and lower consumers care much about convenience and standard services, rather than on prices.
Competition and/ or Buying Patterns
Within England, there are several auto repairs as well as auto components parts outlets or convenient stores. Analysis shows that some offer only related auto services, while others meets different consumers' auto parts requirements. Only few ventures offer both services, hence FRAR will concentrate on convenience and standard services offer in order to counteract the perceived competition. We will concentrate on integrity, honesty and reliability to secure reliable customers reputation. This will thereby facilitate development of large client base from the loyal consumers. In England, competitors are engaging primarily on automotive parts sales, accessories, batteries, ignition parts, engine parts and various engines, mobile electronics, car accessories, hand tools such as wrenches, jacks, and lift equipment, oil and air lifter, chemicals, plus automotive service and or even maintenance or parts installation (Sclar 423). Automotive products will include exhaust systems, wiper blades, suspension parts, and brake parts among others. Ensuring that we face these competitors successfully, we will need to avail all those products already available within the market as well those which are underprovided. Such an action will lead to reliability on our unique services and products for all our customers. We will also ensure our services are standard, ensuring our clients are never frustrated or disappointed.
Strategy and implementation
FRAR will succeed in meeting our goals through provision of quality and / or standard services to our consumers. Our services will be fast and convenient. Similarly, we will acquire success through ensuring a wide range availability of auto parts inventory and adhere to fast supply abilities of the key auto parts.
FRAR will achieve competitive edge through focus on convenient services to our customer via frequent transport services or even after sale services, faster auto repair services and engaging or networking with the local main towing truck companies.
Primary competitors in England offers automotive parts sales on retail while larger competitors engage in supercenter kind of a business. Supercenters have large numbers of automotive inventory units of popular auto parts and related products (Abrams 376). They serve the aftermarket needs where the consumers are expected to carry the repair service themselves while others carry-out the service for their clienteles. FRAR will engage both services to ensure an all-service supply, facilitating convenience and/ or effectiveness. Competitors within England stores basically carry-out the same line of products. Variations only result from type, model or number of cars which are registered within different markets. On average, a particular supercentre can have an approximate of 20,000 repair products. Our chief competitors will include MJ Sullivan Automotive and Monro Muffler Brake (i.e. MMB) and service, among others
FRAR will strategically focus on effectively reaching-out to our targeted segments constituting of middle and high class clients. We will mainly use the direct sales staff to meet the strategy. Similarly, we will highly engage the towing truck companies who will assist in capturing highway traffic or even changing local wants among automotive users.
Chapter VI: FRAR Management Team
In a bid to ensure this ideal shop undoubtedly sails-through, we will have a competent management team. FRAR venture will have four management team members. One person, a sales expert, will be entrusted with marketing and sales administration for the business. We will also have an overall manager who will be in-charge of all the staff members. In addition, FRAR will recruit an extra person with great experience in the repair parts industry, so that such individual's inputs can be of benefits to FRAR, whose roles will be varied as well. Lastly, within the management team, we will have a qualified finance as well as an administration expert. This expert will be responsible for evaluation of FRAR performance to facilitate the business goals achievement. FRAR management will be operating in seasons, depending on the level of delivery, where incompetent member may at times be replaced.
We are targeting to recruit management staff who are highly qualified and with quality experience in the auto repairs and/ or auto parts industry. The sales executive will be an expert in marketing and sales of auto repair component parts, the finance administrator will be an individual with quality experience in that specific field as well.
In the long term, about 15years we as FRAR plan to invest heavily in staff recruitment as a result of opening up new facilities ( Refer to Appendices A: Excel Attachment).
Chapter VII: Finance plan
We as FRAR expect to gather our own capital and possibly seek extra funds from local financiers in order to facilitate FRAR operations.
In order to make accurate estimates of real risks, we will carry-out intermittent break-even analysis. FRAR will attain this aspect by basing our results on total sales volumes for each unit and related operating expenses. Presentation will be in form of unit cost, per unit revenue as well as related fixed costs (Abrams 156).
Projected profit and loss
As FRAR, we will anticipate to have a steady growth of profitability throughout the following 3year operational period (Refer to Appendices B: Excel Attachment).
Projected cash flow
Our cash flow projections will reveal that the provided funds for our daily expense are adequately catered for to meet FRAR requirements. Such an occurrence will be facilitated by a continuous cash inflow enough to support business operations. We expect to meet bank loan within the next one period in our operations, perhaps at fiscal 2011.
Abrams, Rhoda. The successful Business Plans. New York, U.S.A: McGraw-hill Publishers, 2003.
Sclar, Deanna. Auto Repair for Dummies. London, UK: For Dummies Publishers, 2008