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Transportation / Automotive Business Plan Example

Business Plan Example

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Executive Summary

(“the Company”) is a growing tire repair and service company based in Gatineau, Québec. The company is specialized in mobile tire changes and repairs where it has excelled and received high ratings of customer satisfaction attributable to quick repair turnarounds and outstanding workmanship.

To respond to the demands of some 265,000 regional consumers, the management team decided to enter the local consumer and commercial tire retail market, establishing the first retail location in March of 2012. Due to a shift from a service to a retail-oriented business model the company incurred a non-recurring restructuring loss from 2010 to 2011. Retail sales have since been on the increase matching mobile service sales in revenue by mid-2012.

In light of this successful entry into tire retail the company is determined to acquire additional space to help in servicing ever-growing consumer demand. The company is continues to provide rapid, high-quality mobile tire change and repair services and is will use a certain percentage of funds to purchase and equip two additional mobile service vehicles, in an attempt to compete for bids in municipal and corporate fleet maintenance projects.

Capitalizing on the company’s existing user base by rewarding referrals and establishing some a customer relationship management program by way of which previously satisfied customers are offered timely promotions and seasonal sales discounts is another revenue generating stream the company is interested in pursuing once additional retail and service space is established. Another opportunity for expansion the management team is considering is the potential franchising of the business model out to 3rd parties. Several direct competitors and franchise operators have expressed interest in the partial acquisition of the business or an alliance with it due to the reputable and reliable service approach taken by ———— in dealings with its customers and clients.

Currently 60% of revenues are generated from the mobile service of commercial vehicles on the road. The company currently outperforms competition by offering faster, more cost effective service to commercial vehicle operators. Aside from driving more traffic to the retail location, the company must attempt to close contracts with local municipalities (police, fire, ambulance, waste disposal, bus depots and city-service vehicles etc.) as well as large fleet operators (delivery companies, sales and service agencies) to even out cashflow by retaining large customers with many vehicles. This would not only let them better predict their inventory acquisitions but also enable them to better plan the expansion of store and service operations. The company is seeking a $424,000 operating loan to pay for upcoming inventory acquisitions, additional service vehicles and equipment as well as lease and leasehold improvements associated with expansion of its retail location. At present, the company is fully capable of servicing the debt.

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