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Strategic Analysis with current research! The Automotive Repair Shop, Inc. The Company was founded in by John Doe. The Company has the ability to service almost any domestic or foreign automobile. The Company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts.
Doe brings the business to profitability, he intends to further expand the after-market auto parts revenue center and increase the sports tuning services, which command higher premiums that standard automotive repair. The third section of the business plan will further describe the services offered by the Automotive Repair Shop.
The interest rate and loan agreement are to be further discussed during negotiation. Doe has more than 10 years of experience in the automotive repair industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. This includes greater development of after-market tuning and performance enhancing services which generate a larger margin that standard automotive repair. Doe will also increase the marketing and advertising budget of the business to increase the general repair revenues of the business.
The Company is registered business writing workshop nyc doe a corporation in the State of New York. Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time.
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 Automotive Repair Shop.
Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. The Company will have the ability to service most domestic and foreign automobiles. Doe will maintain an extensive shop which can fix any automotive issue.
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, at which point the economy will begin a prolonged recovery period.
However, automotive repair shops operate with great economic stability as vehicles are necessity and very few people have the ability to fix their own vehicles beyond very minor repairs.
As such, the Automotive Repair Shop will be able to maintain profitability despite the current economic climate. Some car repair work is also provided by 45, gas stations; 24, new car dealerships; and branches of chain stores, like Sears and Kmart.
The industry is highly fragmented: Demand depends on the number of cars, how much they're driven, and how complicated they are to fix. The profitability of individual companies depends on volume, because many costs are fixed. Large companies are more likely to use expensive diagnostic equipment efficiently and benefit from advertising, but the economies of scale aren't large.
Revenue per location is lower for large repair chains, like Monroe, that typically provide specialized but lower-skilled services like muffler and windshield replacement. About 60 percent of industry revenue comes from mechanical repair and 40 percent from body shop work. Car repair shops usually specialize in a particular field of repair because of the specialized knowledge.
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Below is an overview of the marketing strategies and objectives of the Automotive Repair Shop. Doe intends on using a number of marketing strategies that will allow the Automotive Repair Shop to easily target men and women within the target market.
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