Auto Parts Store Business Plan
Executive Summary
The Auto Parts Store is a small business that would sell car auto parts to customers within the North Carolina State. In order to ensure maximal customer attention, the Auto Parts Store will maintain a small size. The Store will become the first destination for the entry of new racing spare parts.
Market
The market is expected to be a growing market. The Motor sports industry has experienced a tremendous growth in the United States over the last ten years. Currently, it is among the fastest growing industry sport nationally. The annual worth of the market is approximately $ 1.5 billion. According to a survey carried out recently more than 380,000 people have taken part in organized motor sports competition events. Moreover, the media coverage for such competition events has rises and reinforced further growth of the motor sport industry. The other point that is worth noting is that the state of Carolina has recorded continual population increase and this implies that the market share for the racing auto parts would be large within this location.
Company Overview
The Auto Parts Store was founded with the view that maintaining customer satisfaction is the key to achieving financial success sin an organization. With this view in mind, the Auto Parts Stores would put great effort in making sure that all the needs and expectations of customers are fully met. In order to maintain a strong presence, the Auto Parts Store would develop strong rapport with its customers and the company would actively participate in the local racing events as well as take part in different sponsorship programs.
Products and Services
The Auto Parts Store would be a mortar and brick company which will efficiently serve the local residents and provide catalog in cases of mail order services. The outlook of the catalog would be in form of four colors and many other editions. An analysis on the additional editions will be carried out in order to determine the cost effectiveness associated with publishing in a given format (Ford, et al. 2007). The products that would be provided by the company include chassis and engine parts for a large number and variety of vehicles. The other products that will be provided include set up equipment as well as safety equipment. The services that will be offered are scaling services as well as rating services for race cars.
Financials
The Auto Parts Store is expected to make profits from the first month. Predictions indicate that the margins would be respectable. The first year would witness exceptional sales and a subsequent stable growth rate for the initial five years. The Auto Parts Store would present a perfect opportunity that incorporates a customer-centered organization within a highly competitive industry. Motor sports industry is experiencing a steady growth as more people are actively taking part in racing events.
Even the people not taking part in the events are now opting to have racing parts for beauty purposes. It is therefore clear that an investment in the Auto Parts Store in this location is an opportunity that is worth trying.The start up-costs would include setup support, computer software, hardware, office equipment, furniture, telephone systems and warehouse equipment. An approximate amount of three-month inventory will be utilized in starting up the company. This is an implication that many of the assets would be inventory and there will be an insignificant starting cash balance. There is need for more funding and hence, the role of this business plan would be to help in securing of funds for financing the business (Ford, Bornstein and Pruitt, 2007).
The total start up expenses would amount to $ 2,700, the start up inventory would amount to $ 50,000 while the total start up requirements would amount to $ 82,000. The total start-up funding on the other hand is expected to be $ 82,000.The target market for the products is the entry-level racers. Even though this is the target market, the company would ensure that its product mix is enough to meet all the needs of racers including the hard-core racers. By having the required products in-stock, the company would ensure that its customers save both their money and time.
The operation days will be from Monday to Saturday from eight in the morning to six in the evening. The company will provide products at the most reasonable prices without compromising the product safety and performance (Ford, et al. 2007).There is only one competitor as at now. Our company is however at an advantage due to the fact that it offers carry engine parts which are not offered by the competitor. The marketing strategy that would be employed is the use of advertisement in local media, newspapers and poster.
Company cataloged will also be used to provide information about the company and the various products and services provided. Flyers will also be distributed to inform people about novel products as well as various promotion events that are up-coming.There would be a grand opening of the company since it is well known that is one of the most effective ways of promoting the various products and services offered. With the support of the manufacturers, the company will give ways many prizes and gifts to the customers. There will also be subsidized prices for the company’s services and products.
Celebrity appearances would also attract many people and expose the company’s potential suppliers and customers (Ford, et al. 2007).The company has a previous experience in purchasing and hence the founders have numerous supplier contacts. There is a close and long-term relationship with majority of the supplies and this means that sourcing will not be a key issue or problem. The good relationship with supplies will enable the company to get supply of goods at low costs. The inventories will be bought from both the manufacturers and regional wholesalers.
When the volume of sales increase, the company will have a more direct purchase of inventory compared to purchasing from wholesalers.The company will always be updated on novel trends and products. Future products will be developed in accordance to customer expectations and needs. The company will develop its own private brand or label as this will assist in creating awareness about the Auto Parts Store. The other area that the company hopes to expand in the future is developing a company website. This would initiate online-marketing and commerce which is gradually becoming more popular.
References
Ford, B. R., Bornstein, J., & Pruitt, P. T. (2007). Ernst and Young business plan guide (3rdEd). John Wiley and Sons
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