Hello once again everyone, I'm almost done the rough draft of my business plan and I want to know what people think. I have not included my figures because I'm still tallying those up and those are hard numbers, what you'll be reading is from the Executive Summary to the Start-up Summary.
is were I am having trouble to finish so any help there is greatly appeciated. Thanks Executive Summary
Pro Auto Detailing is set to be a prominent auto detailing and paint re-conditioning serving the North Andover and surrounding communities. Pro Auto Detailing will be run by William Castro. __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __ The Business
Pro Auto Detailing will be providing customers with 5 different services: exterior cleaning and care, interior cleaning, key scratch repair, and headlight restoration, and motorcycle detailing. In addition to my services, I’ll also have 4 sub contracted services offered at my shop: Paintless Dent Removal, Window Tinting, and Audio Installation & Remote Starter Installation. Pro Auto Detailing has no true competitors that are trying to offer a high quality service for a reasonable rate. Most are trying to compete on price alone. Pro Auto Detailing ability to provide a high quality service, both in regards to the actual washing as well as customer service is not only based on William Castro’s workmanship and his relation to his customers, but also in his ability to find the best employees. Hiring the best employees not only guarantees continued customer gratification but also is cost effective because it decreases costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers. The Customers
Pro Auto Detailing will target three main groups of customers: individual car owner and leasers, car dealerships, and local businesses. North Andover and the 3 neighboring towns are quite affluent, In our main service area of North Andover 44% of the residents earn over $70,000 a year, but in the surrounding towns of Andover 65% of the residents earn over $70,000 a year, and in Methuen 46% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice.
There are several dealerships in the surrounding area that could benefit from Pro Auto Detailing’ services such as auto detailing, headlight restoration, and scratch repair. Management
The strength of William’s experience in detailing and marketing the detailing aspect to the community will give Pro Auto Detailing the competitive edge not offered by the surrounding detail companies. William has been involved in the auto and motorcycle detailing business for over 9 years honing the skills required to provide the utmost quality in auto detailing that customers demand. He has worked his way through the industry working for other detailers both companies and single man operations, while also trying new techniques and products/tools on not only his vehicles but those of friends and families while setting higher standards for himself to ensure the best quality of work.
Pro Auto Detailing is positioning itself as the premier auto detailer in North Andover and the Merrimac Valley. William has forecasted a 30% market share. The business will generate a very high gross margin and a modest net margin after year one and very comfortable margin after year three. By year three and four the business will have developed a respectable yearly net profit. 1.1 Objectives
The objectives for Pro Auto Detailing are:
1. To be viewed as the premier auto detailer in the Merrimac Valley.
2. Maintain a very high gross profit margin.
3. Maintain a modest, steadily growing net profit margin.
4. Open an Auto Detailing store where customers can buy the products and equipment that we use along with those of other manufacturers after year two.
5. Expand to a second possible location in Amesbury after forth year of operation.
The mission of Pro Auto Detailing is to provide top-quality washing and detail service for all types of car owners economic to luxury to super sports cars in the Merrimac Valley. Pro Auto Detailing will also work to keep employees satisfied in order to maintain impeccable customer service.
The company is solely owned by William Castro and will be funded by an initial personal investment, grants, and start up loan. Pro Auto Detailing will be a licensed Limited Liability Company. 2.1 Company Ownership
The company will be solely owned by William Castro. William has been in the car industry for most of his life, having grown up in the family car repair business and working with the people and companies to date that have showed him the ins and outs of the industry. He came across the location in North Andover purely by accident and has felt it would be a perfect location for a the detailing shop along with the attached storefront for the future Auto Detailing Store. 2.2 Start-up Summary
The start-up expenses for Pro Auto Detailing will be financed by Grants if approved by the SBA and start-up loans if approved by local banks. The property on 21 Main St will be leased in September 2012 for a minimum of three years, with the option to buy the property from Downer Brothers Landscaping Inc after the initial three year lease.
William is working with the Tresforce Group to set up incorporation and to discuss lease issues before the business is launched. He has worked for the past year developing his own logo, pricing, letterhead, and company brochures while working with a local graphic designer to design a sign that is both informative and eye catching so as to maximize street advertisement. Although William has been in the Auto Detailing industry for several years he is working with two other detailing businesses in Hookset, NH and Billerica, MA to ensure the system in place is a system that will maximize profit, growth, customer and employee satisfaction even during peak business.
Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for the business will be approximately $200 per month and will be paid by direct debit on a monthly basis which covers $1,000,000 Coverage with a $30,000 garage keeper. Expensed equipment includes one high volume air compressor, one 6,500lb low rise scissor lift, two gas powered pressure washers, two industrial vacuum cleaners, 2 hot water extractors, and 1 high powered vapor steam cleaner, two computer terminals, and one cash register. All of the equipment will be depreciated over three years.
The location was previously used as a storage facility for Downer Brothers Landscaping Inc, so it is going to have to be set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a detail facility. William will with the help of the start-up loan and the advice from the two detailing companies acquire the machinery and equipment necessary to maximize the efficiency of the space at hand.
Again any advice is greatly appreciated, thanks once again.