auto parts business plan sample

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Auto Parts Store Business Plan Sample

SEPT.23, 2013

Do you want to start Auto Parts Store business plan?

Are you looking to learn how to open auto part store? The business can be a great investment if you have a basic understanding of different kinds of automobiles and their part requirements. Starting an auto parts business is relatively simpler as it doesn’t require abundant resources.

The business management side is also relatively easy as you can start it on a small scale. There isn’t a need to have a huge team or a large shop to start up the business initially. This can significantly benefit you if you are new to management and business.

You can also easily draft up an ecommerce startup business plan for your business. As a guide you can look at related plans such as convenience store business plan . For a better reference, you can take help from this automobile parts business plan.

Executive Summary

2.1 the business.

Best Rev will be an auto parts store owned by Sheldon Cooper in Manhattan. The primary aim of the business will be to reduce the hassle of vehicle owners by providing them best condition spare parts for their automobiles. The business will offer a wide range of services and products for the ease of its customers.

2.2 Management of Auto Parts Store

If you are just learning how to start an auto parts business , the best advice you will find is to establish strong management. You can have good management through adequate planning. And there is no better way to plan out every aspect of your store than through an auto parts store business plan pdf like the one presented here.

You can also take aid from relevant business plans like used auto parts business plan or an auto dealership business plan .

In this business plan motor parts shop example, we will guide you about all the components of a strong business plan. Of course, you can alternatively also hire business plan experts to do this work for you.

2.3 Customers of Auto Parts Store

The customers of Best Rev will belong to all classes, and work domains as vehicles have become a fundamental part of life for a majority of the world’s population. The recurring customers of the business will be:

• Personal Vehicle Owners
• Private Dealerships
• Professional Racers
• Cargo Vehicle Businesses

2.4 Business Target

The main aim of Best Rev is to become a reliable and trustworthy source of good auto parts and maintenance services among its customers.

The financial targets that the business wants to achieve within the first five years are mentioned below:

Company Summary

3.1 company owner.

Best Rev will be owned and operated by Sheldon Cooper. Sheldon completed his Bachelors in Mechanical Engineering two years ago, after which he pursued an engineering position in a noteworthy motor company. However, six months ago, he left the post to fulfill his lifelong passion of starting his own automobile parts and maintenance store.

3.2 Why the Auto Parts Store is being started

Sheldon noticed that Manhattan experiences a lot of traffic, but there are no auto shops or parts stores located in the area or anywhere in the 15-mile radius. Here, he saw the opportunity to cater to vehicle owners of Manhattan and the nearby regions. The result was Best Rev, an auto parts store that deals with the maintenance and repair of vehicles and the provision of spare parts.

3.3 How the Auto Parts Store will be started

Step1: Plan Everything

Good planning is the most crucial step when learning how to start a car parts business. The best aid in planning and managing a business is its business plan. To write your vehicle spare parts business plan, you can take help from this automobile spare parts business plan. Best Rev is an automobile spare parts shop, for which the business plan is detailed here. You can take help from this example or go through other examples like used car dealership business plan to get an idea of what to include when planning for a start-up.

Step2: Define the Brand

What comes next is to highlight your business and its unique propositions. This can be achieved by creating a brand around your business idea. This will include everything from the principles it follows to its unique value above its competitors. This will introduce a good image of your business to your customers and also help you create a space for yourself in the market.

Step3: Establish Your Corporate Office

The next step is to manage the physical aspect of the business. Sheldon decided to rent out two back-to-back small shops in the main Manhattan commercial area. He decided that one of these shops would be the face of the business where all dealing will customers will take place. All the spare parts will also be stored in this area. In contrast, the other shop will be used to maintain and repair vehicles.

Step4: Establish a Web Presence

Establishing a web presence is integral in today’s market. Therefore, Sheldon decided to develop a website for the business and social media presences for marketing.

Step5: Promote and Market

The final step is to develop a good marketing plan and stick to it.

Before you start an auto part business, you need to decide on your business’s services to your customers. You may have many auto parts business ideas, but you can’t implement everything in the business initially. Therefore, you have to pick and choose what you will start with.

You can follow this guide on how to start an auto parts business to figure out what the market for the business looks like and what services are ideal to be included in your start-up.

The series of steps to follow can be confusing when learning how to become an auto parts distributor. Therefore, we have described everything here in detail. Since Sheldon started with a variety of services, this format can be used to develop even a flower shop business plan .

• Spare Parts Distribution

Best Rev will sell spare parts for all kinds of automobiles as its base service. As a result, most of the auto parts in demand will be readily available, while there will also be an option for customers to order the parts custom to their vehicle.

• Maintenance

In addition to providing spare parts, Best Rev will also offer maintenance services to its customers. This will include

• Engine Check
• Break and Battery Fluid change
• Thorough cleaning of the engine
• Repair Services

The customers of Best Rev can also bring their vehicles to the store to get any part fixed. In addition, the business will have mechanics available at all times who will deal with any problems a vehicle might have.

• Cleaning Service

Our last service will be the cleaning service. Our customers can bring their vehicles and get them serviced and cleaned in just 20-40 minutes, depending on vehicle type.

Marketing Analysis of Auto Parts Store

When starting an auto parts business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your automobile spare parts business plan pdf. This analysis should look into the past, present, and future market trends for you to make the best choices.

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Your automobile parts business plan should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for your own products and services.

If you don’t know what to include in your motor vehicle spare parts business plan, then you can take help from the document here. Also, if you are having difficulty conducting a marketing analysis, you can look at the marketing plan of this business plan motor parts shop.

5.1 Market Trends

According to IBISWorld, the auto parts industry holds a market size of $66 Billion in the United States, employing almost 400 thousand people. The industry is continuously in demand as more and more people adopt automotive vehicles in their life. So, opening a business in this industry is a very smart move as the demand will only get bigger.

5.2 Marketing Segmentation

The potential customers of Best Rev will be as follows:

5.2.1 Personal Vehicle Owners

The primary customers of Best Rev will be people who own cars for personal use. As a majority of the population of Manhattan owns cars, our business will expect these customers to be quite regular. They are expected to avail maintenance and cleaning services most often.

5.2.2 Private Dealerships

Our second target customer will be private dealerships looking to fix up cars and sell them. We will provide them with the spare parts and maintenance services required.

5.2.3 Cargo Vehicle Businesses

Due to the vast amounts of construction being carried out in Manhattan and surrounding areas, we expect our third most frequent customers to be cargo vehicle businesses looking for spare parts, maintenance, and cleaning services.

5.2.4 Professional Racers

Our final customer group will be professional racers. They are expected to avail our spare parts and maintenance services, although not that often.

5.3 Business Target

• To become the most reliable distributor of spare parts across Manhattan
• To provide quick services to our clients
• To earn a net profit of $40k/month at the end of three years
• To keep itself in the good graces of customers.

5.4 Product Pricing

Our prices will be economical compared to our competitors since they won’t pay extra shipping fees for spare parts.

Marketing Strategy

To gain attention in the market among your competitors, you need to highlight your competitive advantages. This is crucial in developing a business, especially an online auto parts business.

You can market what makes you unique in the industry through a solid marketing plan. A market plan will not only allow you to bring light to your strongest features, but it will also help you in learning how to become an auto parts distributor in a saturated market.

So, if you want to develop a strong marketing strategy for your business, you can take help from this motor parts business plan pdf. You can also look at other business plans such as skateboard store business plan to understand how to build a marketing strategy.

6.1 Competitive Analysis

• We have quick customer care services. We respond to customer queries efficiently.
• We have a fast turnaround time as we take customer orders and requests and fulfill them as soon as possible.
• We have excellent customer support staff that guides our customers in choosing the best parts for their vehicle and their budget.
• Through our 24/7 online services, customers can peruse the parts available at the shop or order them on request.

6.2 Sales Strategy

• We will advertise our services through social media platforms like Instagram and Facebook.
• We will offer a 25% discount on our first 25 purchases.
• We will offer significant discounts to our regulars.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

There are a lot of auto parts stores in the world. But only those are popular that make customers happy and satisfied. The success of a business, especially in the automobile industry, depends not only on the quality of parts but also on the customer support staff.

Understanding this importance, Sheldon included some essential features as a part of employee hiring criteria in the automobile spare parts business plan. He also formed a list of employees necessary for running his business. This list can be seen in this auto parts store business plan sample.

7.1 Company Staff

• 1 Receptionist
• 3 Cleaners/Servicers
• 4 Mechanics
• 1 Social Media Strategist and Manager
• 1 Web Developer

7.2 Average Salary of Employees

Financial plan.

You can’t ensure the success of an automobile parts business through just sales. You need to ensure that all the resources are efficiently managed so that your business doesn’t go into a loss.

You can prevent your business from losing resources by developing a financial plan as a part of your motor spare parts business plan. This will include the costs associated with your business’s essential aspects, such as an auto parts franchise cost. In addition, it will analyze where you are spending your money and how you are earning to keep everything in balance.

Here, we are describing the details of the financial plan of Best Rev.

You can also look at a business plan for e-commerce to get a good idea of managing business finances.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

1. How to start an auto parts store?

You can start an auto parts store by developing a good auto parts store business plan.

2. How to open an auto parts store?

For starting an auto parts store, you will need to rent or buy a physical space and create management plans.

3. How to start an online auto parts business?

To start an online auto parts business, you will need to manage your business finances and develop a strong marketing plan. Furthermore, you will need to establish social media presence as well.

Download Auto Parts Store Business Plan Sample in pdf

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How To Write a Business Plan for Auto Parts in 9 Steps: Checklist

By henry sheykin, resources on auto parts.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Welcome to our blog post on How To Write a Business Plan for Auto Parts in 9 Steps: Checklist. The auto parts industry in the US is thriving, with a revenue of over $60 billion in 2020 and an expected annual growth rate of 3.8% from 2021 to 2026. This lucrative market presents a great opportunity for aspiring entrepreneurs looking to establish their own auto parts business.

To ensure success in this competitive industry, it is crucial to have a well-structured business plan. Let's dive into the 9 key steps involved in creating a comprehensive plan for your auto parts business.

Step 1: Conduct market research

Step 2: Identify target customers

Step 3: Analyze competition

Step 4: Determine start-up costs and funding sources

Step 5: Develop a pricing strategy

Step 6: Create a marketing and advertising plan

Step 7: Create a supplier network

Step 8: Secure necessary licenses and permits

Step 9: Outline operational logistics

Each of these steps is crucial for creating a solid foundation for your auto parts business. By following this checklist, you'll be well-prepared to enter the market and establish a successful venture that meets the needs of customers while generating a profitable revenue stream.

Conduct Market Research

Market research is an essential step in writing a business plan for auto parts. It helps you gain a deep understanding of the industry, identify market trends, and assess the demand for auto parts in your target market. Conducting thorough market research will provide you with valuable insights that will guide your business decisions and help you stay ahead of your competitors.

1. Identify your target market: Determine who your potential customers are and what their needs and preferences are when it comes to auto parts. This will help you tailor your products and services to meet their specific requirements.

2. Analyze market size: Evaluate the overall size of the auto parts market in your area. This includes assessing the demand for different types of auto parts and identifying potential growth areas.

3. Study the competition: Research and analyze your competitors to understand their strengths, weaknesses, and market positioning. This will help you identify gaps in the market that you can exploit to differentiate your business.

Tips for conducting market research:

• Utilize online resources such as industry reports, market analysis websites, and trade publications to gather information about the auto parts industry.
• Conduct surveys or interviews with potential customers to gain insights into their purchasing habits, preferences, and pain points.
• Join industry trade associations and attend relevant conferences or events to network with experts, suppliers, and potential customers.
• Stay updated with the latest industry trends and news to identify opportunities and challenges that may impact your business.

By conducting comprehensive market research, you will gather the necessary data and knowledge to make informed decisions about your business strategy, product offering, and target audience.

Identify Target Customers

Identifying your target customers is a crucial step in developing a successful business plan for your auto parts venture. Understanding who your ideal customers are will help you tailor your products, marketing strategies, and customer service to meet their specific needs and preferences. Here are some key steps to help you identify your target customers:

• Define your niche: Start by identifying the specific segment of the auto parts market that you want to target. Are you focusing on a particular vehicle type, such as passenger cars, trucks, or motorcycles? Are you specializing in specific parts, such as engine components, electrical systems, or body parts? Clearly defining your niche will enable you to narrow down your target audience.
• Conduct market research: Use market research techniques to gather information about your potential customers. Look for data on their demographics, purchasing habits, and preferences. This could include factors such as age, gender, income level, location, and the types of vehicles they own. Understanding these key characteristics will help you create customer profiles and identify trends that can inform your marketing and product development strategies.
• Identify pain points: Determine the challenges and pain points your target customers encounter when it comes to purchasing auto parts. Are they looking for affordable options? Are they seeking high-performance parts for their vehicles? By understanding their pain points, you can tailor your products and services to provide solutions that meet their specific needs.
• Segment your audience: Once you have gathered information about your potential customers, segment them into groups based on shared characteristics. This segmentation will allow you to create targeted marketing campaigns and develop products that resonate with each specific group.
• Consider customer feedback and testimonials: Seek feedback from existing customers and study testimonials to gain insights into their preferences and experiences. This feedback can help you further refine your target customer profiles and fine-tune your business strategies.
• Regularly review and update your target customer profiles as market trends and preferences can change over time.
• Consider offering personalized services or tailored product bundles to attract and retain loyal customers.
• Look for opportunities to collaborate with complementary businesses, such as auto repair shops or vehicle dealerships, to expand your customer reach.

Analyze Competition

When starting a business in the auto parts industry, it is crucial to analyze the competition in order to understand the market landscape and identify opportunities for differentiation and competitive advantage. Here are the key steps to analyze the competition:

• Identify key competitors: Begin by researching and identifying the main competitors in your target market. This can include both local and national auto parts retailers, online marketplaces, and even specialty shops.
• Study their offerings: Analyze the products and services offered by your competitors. Pay close attention to their product range, quality, pricing, and any unique value propositions they may have.
• Evaluate their pricing strategy: Examine how your competitors price their auto parts. This will help you determine if there is room for you to offer more competitive pricing or if you need to differentiate based on other factors such as quality or customer service.
• Assess their marketing efforts: Analyze how your competitors market and advertise their products. This can provide valuable insights into which marketing channels are most effective in reaching your target customers and can help guide your own marketing strategy.
• Understand their customer base: Research the customer demographics and preferences of your competitors' customer base. This can help you identify any underserved segments or niche markets that you can target with your own offerings.
• Identify strengths and weaknesses: Assess your competitors' strengths and weaknesses to determine how you can differentiate your business. Look for gaps in their product offerings, areas where their customer service may be lacking, or any other weaknesses that you can capitalize on.
• Monitor industry trends: Stay updated on the latest trends and developments in the auto parts industry. This will help you identify emerging competitors, new product offerings, and potential shifts in consumer demand.
• Regularly track and monitor your competitors' pricing and promotions to ensure you stay competitive.
• Consider conducting mystery shopping exercises to gain firsthand knowledge of your competitors' customer service and overall shopping experience.
• Utilize online tools and resources, such as social media listening platforms, to gather insights on your competitors' customer feedback and sentiments.
• Network and attend industry events to establish relationships with industry insiders and stay informed about the latest developments in the auto parts market.

Determine Start-Up Costs And Funding Sources

Before launching your auto parts business, it is crucial to determine the start-up costs and identify potential funding sources. Proper planning and estimation of needed capital will ensure a smooth and successful start to your venture. Here are some essential steps to help you determine your start-up costs and find the right funding sources:

• Research and List All Costs: Begin by researching and listing all the necessary costs involved in launching your auto parts business. This includes expenses such as inventory, rental space, equipment, licenses and permits, website development, marketing, employee salaries, utilities, and any other related expenses. Conduct thorough research to ensure you have as accurate a picture as possible.
• Estimate Start-Up Costs: Once you have listed all the costs, carefully estimate each expenditure and create a comprehensive budget. Consider obtaining multiple quotes from different suppliers or service providers to get a clear idea of the costs involved.
• Identify Potential Funding Sources: Explore various funding options available to you. This may include personal savings, loans from financial institutions, investment from partners or family members, or even grants or sponsorships. Research each option and determine which best aligns with your financial goals and the requirements of your business.
• Consider Bootstrapping: If you have limited funds available or wish to reduce reliance on external funding, consider bootstrapping. This involves cutting unnecessary expenses, using existing resources wisely, and reinvesting any profits back into the business. Bootstrapping can help you maintain control and ownership while gradually growing your business.
• Seek Professional Advice: If you are uncertain about the financial aspects of starting your auto parts business, seek advice from a financial advisor or an accountant. They can provide valuable insights and help you navigate through the complexities of funding and budgeting.
• Be realistic in estimating your start-up costs to avoid any potential financial setbacks.
• Consider incorporating a contingency fund in your budget to account for unforeseen expenses.
• Research and compare different loan options from various financial institutions to find the most favorable terms and interest rates.
• Explore local business grants or sponsorships that may be available in your area.

Develop A Pricing Strategy

Developing a pricing strategy is crucial for the success of your auto parts business. It involves analyzing various factors such as your production costs, market demand, competition, and desired profit margins. Here are the key steps to developing an effective pricing strategy:

• Calculate your production costs: Start by determining the cost of acquiring or manufacturing your auto parts. This includes materials, labor, packaging, and shipping expenses. Accurate cost calculations will help ensure that your pricing strategy covers all your expenses and generates a profit.
• Research the market: Analyze the existing pricing trends within the auto parts industry. Look at the prices charged by your competitors for similar products. Additionally, consider the demands of your target customers and the perceived value they associate with your products.
• Evaluate your profit margins: Set realistic profit margins based on your business goals and market conditions. Consider both short-term and long-term profit objectives. You may need to adjust your pricing strategy to balance profitability and customer affordability.
• Consider pricing strategies: There are several pricing strategies you can adopt, such as cost-based pricing, market-based pricing, value-based pricing, or a combination of these. Choose the strategy that aligns with your business objectives and target market.
• Regularly review and adjust: Pricing should not be set in stone. Monitor the market dynamics and periodically reassess your pricing strategy. Keep track of changes in production costs, competitor pricing, and customer preferences to stay competitive.

Tips for Developing Your Pricing Strategy:

• Consider offering different pricing tiers or bundles to cater to different customer segments.
• Implement a dynamic pricing strategy, especially for products with fluctuating demand or limited availability.
• Offer incentives like discounts, promotions, or loyalty programs to attract and retain customers.
• Regularly monitor and analyze customer feedback to gauge their perception of your pricing.

Create A Marketing And Advertising Plan

Once you have conducted market research and identified your target customers, it is crucial to develop a comprehensive marketing and advertising plan to promote your auto parts business. This plan will help you reach your target audience effectively and drive sales. Here are some key steps to create an impactful marketing and advertising plan:

• Clearly define your marketing objectives and goals. Determine what you want to achieve through your marketing efforts, such as increasing brand awareness, attracting new customers, or driving repeat business.
• Evaluate various marketing channels and select the ones that are most effective for reaching your target customers. This could include online advertising, social media marketing, email marketing, search engine optimization (SEO), or traditional methods like print ads and direct mail.
• Develop a robust online presence by creating a user-friendly website that showcases your products and services. Optimize your website with relevant keywords and ensure it is mobile-responsive.
• Utilize social media platforms to build brand awareness and engage with your target audience. Regularly share engaging content related to auto parts, offer promotions or discounts, and respond to customer inquiries promptly.
• Implement an email marketing strategy to nurture relationships with your existing customers and encourage repeat business. Send newsletters, product updates, and exclusive offers to keep your customers informed and engaged.
• Consider partnering with local automotive repair shops or mechanics to offer joint promotions or referrals. This can help expand your customer base and build credibility within the industry.
• Monitor your competitors' marketing strategies and learn from their successes or failures. Stay updated on industry trends and consumer preferences to stay ahead of the curve.
• Allocate a budget for your marketing efforts and regularly track their effectiveness. Analyze data and metrics to identify which strategies are generating the most return on investment and adjust your plan accordingly.
• Encourage customer reviews and testimonials, as positive online feedback can significantly influence potential customers' purchasing decisions.

Create A Supplier Network

Creating a strong and reliable supplier network is crucial for the success of your auto parts business. It is essential to find suppliers who can consistently provide high-quality products at competitive prices. Here are some important steps to help you build a strong supplier network:

• Research suppliers: Conduct thorough research to identify potential suppliers who specialize in manufacturing or distributing auto parts. Look for suppliers that have a good reputation, reliable delivery times, and a diverse range of products.
• Establish relationships: Reach out to potential suppliers to establish relationships with them. Attend trade shows, industry events, and conferences to meet suppliers face-to-face and discuss potential partnerships. Building strong relationships with suppliers is key to ensuring a steady supply of products.
• Set quality standards: Clearly define your quality standards and discuss them with potential suppliers. Make sure they understand your requirements for product quality, packaging, and labeling.
• Negotiate favorable terms: Engage in negotiations with your suppliers to secure favorable terms such as pricing, payment terms, and delivery schedules. Building mutually beneficial relationships with suppliers can lead to better pricing and terms in the long run.
• Diversify your supplier base: It is important to have multiple suppliers for each category of auto parts to minimize the risk of disruptions in the supply chain. Having backups in place can help ensure that you have access to products even if one supplier is unable to fulfill orders.
• Implement a robust order management system: Use an efficient order management system to streamline the process of placing orders, tracking deliveries, and managing inventory. This will help you stay organized and ensure that products are delivered on time.
• Monitor supplier performance: Regularly evaluate the performance of your suppliers based on factors such as product quality, on-time deliveries, and responsiveness to inquiries. Open and transparent communication with suppliers is essential for addressing any issues that may arise.
• Consider attending industry-specific tradeshows to connect with suppliers and stay updated on the latest trends and products.
• Develop a long-term partnership with your suppliers by building trust and maintaining open lines of communication.
• Regularly review your supplier network to identify any potential gaps or opportunities for improvement.

Secure Necessary Licenses And Permits

Securing the necessary licenses and permits is a crucial step in starting your auto parts business. These documents ensure that you comply with legal requirements and operate your business smoothly. Here are the important factors to consider:

• Research: Begin by researching the specific licenses and permits required for operating an auto parts business in your area. Contact your local government or regulatory agencies to obtain a comprehensive list of the permits and licenses needed.
• Business License: Apply for a business license, which is a general requirement for any business. Obtain the necessary forms and submit them along with any required fees to the appropriate local government department.
• Sales Tax Permit: If you plan on selling auto parts, you will likely need a sales tax permit. This allows you to collect and remit sales tax to the appropriate government agency. Contact your state's department of revenue or taxation to apply for this permit.
• Special Permits: Some auto parts businesses require specific permits due to the nature of their operations. For example, if you plan on offering repair or installation services, you may need a separate permit for that. Research any additional permits required for your particular business activities.
• Zoning and Land Use Permits: Ensure that your chosen location for your auto parts business is zoned for commercial purposes. Contact your local zoning or planning department to obtain the necessary permits or waivers.
• Environmental Permits: Depending on the type of auto parts you plan to sell, you may need environmental permits to comply with regulations for hazardous materials or waste disposal. Consult with the appropriate environmental agencies to ensure compliance.
• Insurance: Don't forget to secure proper insurance coverage for your auto parts business. Liability insurance, property insurance, and workers' compensation insurance are some of the key types of coverage to consider.
• Research licensing requirements early on in your business planning process to avoid any delays or setbacks.
• Keep track of renewal dates for permits and licenses to ensure ongoing compliance with regulations.
• Consider consulting with a legal professional or an expert in business regulations to ensure you haven't overlooked any critical licenses or permits.

Outline Operational Logistics

Once you have conducted market research, identified your target customers, analyzed the competition, determined start-up costs and funding sources, developed a pricing strategy, created a marketing and advertising plan, created a supplier network, and secured necessary licenses and permits, it’s time to outline the operational logistics of your auto parts business.

Effective operational logistics are crucial to ensure the smooth functioning of your business and to provide exceptional customer service. Here are some key aspects to consider:

• Inventory Management: Determine the storage space and systems you need to efficiently manage your auto parts inventory. Implement inventory management software to track stock levels, replenish inventory on time, and avoid stockouts.
• Order Fulfillment: Establish a streamlined process for receiving and processing customer orders. Decide whether you will install the parts yourself or outsource the installation to professional mechanics. Ensure prompt and accurate order fulfillment to enhance customer satisfaction.
• Shipping and Delivery: Partner with reliable shipping carriers or establish your own delivery network to efficiently deliver products to customers’ doorsteps. Consider offering multiple shipping options, such as express delivery for urgent orders.
• Customer Service: Develop customer service protocols to promptly address inquiries, provide technical support, and resolve any issues or complaints. Train your staff to deliver exceptional customer service and maintain a positive brand image.
• Return and Exchange Policy: Create a clear and fair return and exchange policy to build trust with customers. Establish procedures for processing returns and exchanges and communicate them effectively to customers.
• Regularly evaluate your inventory to identify slow-moving or obsolete parts and make necessary adjustments to your product offerings.
• Consider implementing a robust quality control process to ensure the parts you offer meet industry standards and customer expectations.
• Create efficient communication channels with your suppliers to stay updated on product availability, new releases, and any changes that may impact your business.
• Continuously seek feedback from customers to improve your operational logistics and enhance the overall customer experience.

By outlining the operational logistics of your auto parts business, you are laying a strong foundation for success. Ensure that your inventory management, order fulfillment, shipping and delivery, customer service, and return and exchange policies align with your overall business goals and provide an excellent customer experience.

In conclusion, writing a business plan for an auto parts business requires careful research and planning. By following the nine steps outlined in this checklist, entrepreneurs can map out their market, target customers, competition, and operations to ensure a successful venture. Building a strong supplier network, securing necessary licenses and permits, and developing a marketing and advertising plan are also crucial for long-term success. With the right strategies in place, an auto parts business can thrive in the competitive industry while providing high-quality products and excellent customer service.

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How to Start a Profitable Auto Parts Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a auto parts business plan., 3. develop a auto parts brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for auto parts., 6. open a business bank account and secure funding as needed., 7. set pricing for auto parts services., 8. acquire auto parts equipment and supplies., 9. obtain business insurance for auto parts, if required., 10. begin marketing your auto parts services., 11. expand your auto parts business..

Embarking on an auto parts business venture requires a thorough understanding of the market landscape. This vital step helps in identifying the current trends, customer needs, and competition. Here's how to perform a detailed market analysis:

• Analyze the demand for auto parts in your targeted location by researching the number and types of vehicles in use, frequency of parts replacement, and common issues faced by vehicle owners.
• Identify your potential customer base, including private car owners, local mechanics, auto repair shops, and fleet operators, to understand their specific needs and preferences.
• Study your competition by examining other auto parts businesses in the area. Evaluate their product range, pricing strategies, customer service, and market share to identify gaps and opportunities.
• Examine industry trends, such as the rise of electric vehicles, aftermarket modifications, and e-commerce platforms, to anticipate future market shifts and technological advancements.
• Assess the availability of suppliers and manufacturers, considering factors such as quality of parts, cost, reliability, and delivery times to ensure a consistent supply chain.
• Gather data on pricing strategies to establish competitive yet profitable pricing for your inventory.

Are auto parts businesses profitable?

Auto parts businesses can be profitable depending on a variety of factors, including the size of the business, the type of products and services offered, the local market conditions and competition, and the marketing strategies used. Additionally, efficient management practices, such as cost-control measures, inventory optimization and pricing strategies, are essential to ensure profitability.

Creating a business plan is a crucial step in establishing a successful auto parts business. It serves as a roadmap, outlining your business goals, strategies, and the methods you'll employ to overcome challenges and achieve success. Below is a step-by-step guide to help you draft a comprehensive business plan.

• Executive Summary: Begin with a concise overview of your business, its mission, and the products you'll offer. Include your business objectives and a brief description of your target market.
• Market Analysis: Research the auto parts industry to identify current trends, customer needs, and the competitive landscape. Define your target market's demographics and buying habits.
• Organization and Management: Describe the structure of your business, including ownership, management team, and employee roles. Outline your recruitment and training strategies.
• Products and Services: Detail the auto parts and services you plan to offer, their benefits, and how they stand out from competitors.
• Marketing and Sales Strategy: Explain how you intend to attract and retain customers. Discuss your pricing, advertising, sales tactics, and distribution channels.
• Financial Projections: Provide an estimate of startup costs, projected income, cash flow, and a break-even analysis. Include any funding requirements and potential sources of capital.
• Appendix: Attach any additional documents that support your business plan, such as resumes, legal agreements, or detailed market studies.

How does a auto parts business make money?

An auto parts business makes money by selling a variety of car accessories and tools necessary for vehicle repair or improvement. The target audience for this type of business can be any person who is in possession of a vehicle or anyone that may need assistance with auto repairs. Customers can range from individuals who like to tinker on cars to auto mechanics in need of certain parts for jobs. In addition, customers may also include garages and body shops that need to keep up with trends in the automotive industry. For example, a target audience for an air duct cleaning business could be car owners who live in areas prone to dust and other airborne particles that quickly collect in air ducts.

Creating a strong auto parts brand involves distinct positioning and a clear value proposition that resonates with your target market. It's essential to differentiate your brand from competitors and establish a reputation for quality, reliability, and service. Here are some key steps to guide you in developing a robust auto parts brand:

• Define your brand identity: Choose a brand name, logo, and slogan that clearly communicate what you stand for and appeal to your target audience.
• Understand your customers: Conduct market research to identify the needs and preferences of your potential customers and tailor your branding to meet those expectations.
• Highlight your USP: Determine your unique selling proposition (USP) and ensure that it is central to your branding and marketing efforts.
• Build a strong online presence: Develop a professional website and engage on social media platforms to connect with customers and build brand recognition.
• Quality and consistency: Ensure that every product you offer is of high quality and your branding is consistent across all channels and packaging.
• Customer service: Offer exceptional customer service to create a positive brand experience that encourages loyalty and word-of-mouth referrals.

How to come up with a name for your auto parts business?

Brainstorming is a great way to come up with a name for your auto parts business. Start by creating a list of words that represent the type of goods you plan to offer, and then consider combining certain words in creative ways to form your business name. Think of names that are catchy and memorable, which can help people recall it easily and make your business stand out. Additionally, be sure to research potential names to ensure they aren't already in use by another business. With a little bit of thought and creativity, you can come up with an original and memorable name perfect for your auto parts business.

Formalizing your business registration is a critical step in establishing a legitimate auto parts business. It involves legalizing your company with the relevant authorities, which can vary depending on your location. Below, you'll find the key steps you should follow to ensure your business is properly registered and compliant with all necessary regulations.

• Choose a business structure (e.g., sole proprietorship, partnership, LLC, corporation) that best suits your needs and obtain the necessary forms from your state's business filing office.
• Register your business name with your state government, ensuring it is unique and not already in use. If you plan to operate under a trade name or "Doing Business As" (DBA), file for that as well.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, which is necessary even if you don't have employees.
• Apply for any specific licenses and permits required for an auto parts business, which might include a resale permit, a business operation license, and environmental permits.
• File your business registration documents with your state's secretary of state or business agency along with the appropriate filing fee.
• Keep records of your registration confirmations and any identification numbers as these will be crucial for future business activities, including banking and taxation.

Resources to help get you started:

Starting an auto parts business involves various legal considerations, including obtaining the right licenses and permits. These ensure your business operates within the law and meets industry standards. Here’s a guide to help you navigate through this critical step:

• Research Local Requirements: Check with your city or county clerk's office for local business license requirements, as they vary by location and the type of products you'll be selling.
• Obtain a Business License: Apply for a general business license, which is necessary to legally operate your business in most municipalities.
• Specialty Permits: Depending on what auto parts you sell, you may need specific permits, such as those for selling hazardous materials (e.g., batteries, chemicals).
• Sales Tax License: Register for a sales tax license to legally collect sales tax on transactions in states where it applies.
• Zoning and Land Use Permits: Ensure your business location complies with local zoning laws, which may require additional permits if you're also performing installations or repairs.
• Environmental Licenses: You may need environmental licenses or permits if your business involves recycling parts or disposing of automotive fluids.
• Employer Identification Number (EIN): Although not a permit or license, obtaining an EIN from the IRS is essential for tax purposes, especially if you plan to hire employees.

What licenses and permits are needed to run a auto parts business?

The exact licenses and permits required to run an auto parts business depend on the location, as requirements vary from state to state. Generally, businesses are required to register with the Secretary of State, obtain an Employer Identification Number (EIN) through the Internal Revenue Service (IRS), obtain a local business license, and for certain types of businesses, obtain a Federal Tax ID. Additionally, many states and cities require additional permits or licenses. For example, some states require companies that work with hazardous materials to obtain specific permits.

Starting an auto parts business requires careful financial management, which begins with opening a business bank account and securing the necessary funding. A dedicated business account will help you manage cash flow, expenses, and revenues effectively. Here's how to proceed:

• Choose the right bank: Research banks to find one that offers favorable terms for business accounts, including low fees, convenient services, and good customer support.
• Prepare your documents: You'll need your business registration details, EIN (Employer Identification Number), ownership agreements, and possibly a business plan when opening an account.
• Explore funding options: Determine how much capital you need and consider various sources such as business loans, lines of credit, investors, or crowdfunding platforms.
• Understand the terms: Carefully review the terms and conditions of any funding you pursue, paying close attention to interest rates, repayment schedules, and any potential equity loss.
• Build relationships: Establish connections with financial advisors and lenders early on to help navigate financial challenges and opportunities as your business grows.

When setting pricing for auto parts services, it's crucial to strike a balance between being competitive and maintaining a profitable margin. Consider the value you provide, market rates, and your business costs. Here are some guidelines to help you establish your pricing strategy:

• Analyze the competition to understand the going rates for similar auto parts and services in your area.
• Factor in your costs, including procurement, labor, overhead, and desired profit margin, to ensure sustainability.
• Consider offering tiered pricing for different levels of service or product quality to cater to a wider range of customers.
• Be transparent with your pricing to build trust with customers; hidden fees can damage your reputation.
• Regularly review and adjust your prices based on market changes, supplier costs, and your business performance.
• Don't undervalue your services; be confident in the quality you provide and set prices that reflect that value.
• Implement strategic discounts or promotions to attract new customers and retain existing ones without undermining your pricing integrity.

What does it cost to start a auto parts business?

Initiating a auto parts business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $95000 for launching such an business. Please note, not all of these costs may be necessary to start up your auto parts business.

Starting an auto parts business requires careful selection of high-quality equipment and supplies to meet the needs of your customers. It's essential to source durable and reliable products that provide value for money. Here are some key steps to consider when acquiring the necessary equipment and supplies:

• Research suppliers: Look for reputable manufacturers and wholesalers who offer competitive prices and good customer service. Check reviews and ask for recommendations from other auto parts businesses.
• Inventory Management: Invest in a robust inventory management system that can track stock levels, reorder parts, and manage suppliers.
• Quality Assurance: Prioritize quality over cost-saving when it comes to parts that are critical for safety or performance. Consider offering warranties or guarantees to instill customer trust.
• Bulk Purchasing: Consider buying in bulk to save money, but balance this with the need to manage inventory and cash flow effectively.
• Tools and Equipment: Acquire the necessary tools for handling and testing auto parts, such as diagnostic machines, part cleaners, and storage systems.
• Shipping and Handling: Set up accounts with reliable shipping companies and invest in materials for safe packaging and dispatching of auto parts.
• Legal Compliance: Ensure that all the equipment and supplies meet industry standards and legal regulations to avoid penalties or liability issues.

List of software, tools and supplies needed to start a auto parts business:

• Automotive Parts Counter Software: $799 - $3,000
• Computer/Laptop: $200 - $1,000
• Barcode Scanner: $50 - $250
• Point-of-Sale System: $800 - $1,500
• Inventory Management System: $600 - $2,200
• Retail Accounting Software: $99 - $600
• Telephone System: $100 - $500
• Safe for Cash/Credit Cards: $100 – 300
• Office Supplies & Manuscripts Linked to Transactions (Receipt Paper & Printer): $50 - $300 < li >< b >Workstation/Desk and Chair Setup : $150 – 500

Securing the right insurance is an essential step in protecting your auto parts business from potential risks and liabilities. It provides financial coverage for various unforeseen circumstances that could otherwise have a significant impact on your business operations. Below is a guideline to help you obtain the necessary business insurance:

• Assess your risks: Identify the types of risks your business may face, such as property damage, theft, or liability for customer injuries.
• Research insurance providers: Look for reputable insurance companies or brokers that specialize in commercial insurance, particularly those with experience in the automotive industry.
• Understand policy options: Familiarize yourself with different types of insurance policies, including general liability, property insurance, workers' compensation, and product liability insurance.
• Compare quotes: Obtain quotes from multiple insurers to compare coverage options and premiums. Make sure to understand what is and isn't covered under each policy.
• Consider additional coverage: Depending on your specific business needs, you may require additional coverage such as business interruption insurance or commercial auto insurance.
• Review and purchase: Carefully review policy details and choose the insurance that best suits your business needs. Keep all documentation for future reference.
• Stay compliant: Ensure your insurance meets any legal requirements in your area and renew policies as needed to maintain continuous coverage.

Marketing your auto parts services is crucial for attracting customers and establishing a foothold in the competitive automotive market. A well-rounded marketing strategy involves both online and offline methods to reach a broad audience. Here are some effective ways to begin marketing your auto parts business:

• Develop a Strong Online Presence: Create a professional website and engage with customers on social media platforms. Use search engine optimization (SEO) to improve your website's visibility in search results.
• Offer Promotions: Launch promotions, discounts, and loyalty programs to encourage first-time buyers and reward repeat customers.
• Networking: Attend automotive industry events, trade shows, and local car meets to network with potential clients and business partners.
• Partnerships: Collaborate with auto repair shops, dealerships, and car clubs to offer exclusive deals and increase referral traffic.
• Local Advertising: Utilize local newspapers, radio stations, and billboards to reach potential customers in your area.
• Email Marketing: Collect emails from interested visitors and send them newsletters, product updates, and personalized offers.

Once you've established a solid foundation for your auto parts business, it's time to consider expansion to meet the growing needs of your customer base and stay ahead of the competition. Expanding your business requires strategic planning and execution. Here are some key steps to guide you through this exciting phase:

• Diversify Your Inventory: Broaden your range of auto parts to cater to a wider variety of vehicles, including both common and niche markets.
• Explore Online Sales: Set up an e-commerce platform to reach a larger audience and offer convenience to your customers.
• Open Additional Locations: If demand justifies it, consider opening new stores in strategic locations to tap into new markets.
• Offer Franchising Opportunities: Franchising can be an effective way to grow your business with reduced direct management responsibilities.
• Strengthen B2B Relationships: Forge partnerships with repair shops, dealerships, and fleet operators to secure bulk sales and recurring business.
• Enhance Customer Service: Invest in staff training and technology to provide exceptional service, encouraging repeat business and referrals.
• Participate in Trade Shows: Attend or exhibit at automotive trade shows to network, learn about industry trends, and promote your business.

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How to Write an Auto Repair Business Plan: Complete Guide

• January 24, 2023

👇 Check all our resources on auto repair businesses 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your auto repair shop, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your auto repair business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it’s the summary of the different sections included in your business plan.

Why do you need a business plan for your auto repair shop?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or private grant

How to write an executive summary for your auto repair shop?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the 5 major sub-sections that include:

• Business overview : introduce your auto repair shop and its type or concept. For instance, you may offer a body repair shop, auto glass repair shop, auto systems expert shop, etc. Also, provide a brief of your shop’s size and a list of services offered
• Market analysis : introduce the market and mention the service radius, average income of the target audience , and their demographic distribution. Also, mention the problem that your auto repair shop will solve alongside the total competitor count within your service radius
• People : introduce the management team and their industry experience. Mention your business partner(s), if any. Give an overview of the staffing requirements and the reporting hierarchy
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits ? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Auto Repair Financial Model Template

Download an expert-built 5-year Excel financial model for your business plan

2. Business Overview

The Business Overview segment of your auto repair shop’s business plan will introduce your company and try to answer some important questions that potential investors and lenders may have . Here is a sample list of questions that you must try to address in the company overview section:

• Why are you opening an auto repair shop?
• Where is your shop located? Why did you choose that location?
• What type of auto repair shop will you open?
• What services will you offer? At what prices?
• What will be your operating days / hours?
• Who is your target audience?
• How many customers can you serve per week / per month?
• What will be the legal structure of your company?

a) History of the Project

Any business must have three components:

• Passion & experience of the business owner
• The rationale behind you starting this business today

Passion & Experience

You must be passionate about the business and demonstrate the same to the potential lenders and/or investors through the business plan.

Also, you must have some experience or training in this type of business. Maybe, you worked as a repair technician somewhere, or maybe, you have the necessary training & education.

The business must try to resolve some issues in its current area of operation. For instance, there may not be any dedicated auto paint repair shop in the area and residents there need to travel far to get the job done. Thus, an auto paint repair shop there will solve the problem that auto owners face.

b) Business Model

Describe the business model that you will adopt in this sub-section. Here you must answer the 2 following questions:

• Will you acquire an existing auto repair shop and remodel it, or will you start your shop from scratch?

What are the different types of auto repair shops?

For example, you may open any of the following types of auto repair shops:

• Auto System Expert : In this model, you will specialize in the survey of a vehicle’s key systems such as breaks, gears, engine, etc. This model has a high revenue potential
• Auto Repair Service Technicians : This is the most standard model where you will perform basic checks like electricals, oil fluid levels, etc. This model thrives on regular repeat customers since vehicle manufacturers recommend servicing every 10k to 12k miles or every 12 months. So, those who drive a lot will be more likely to pay regular visits
• Auto Body Repair Service : In this business model, you will be dealing with vehicles involved in accidents and crashes. Though it is highly unlikely that you will get regular (or high volume) customers, the revenue earned per sale is very high. The model involves fixing broken parts, scratches, replacing damaged parts, etc.
• Diagnostic Technicians : In this model, you will perform skilled checks for underlying vehicle issues. Such issues cannot be seen from the surface and hence, require a higher level of skill compared to regular service technicians
• Auto Glass Repair : In this model, you will focus on repairing glass-related auto parts such as windows, windshields, etc. This model also has high-income potential for each order, but there will be times when you get customers who don’t want a complete replacement and require fixing only small cracks, scratches, etc.
• Auto Repair Painters : In this model, you will engage in vehicle repainting and stylizing & visual customizations as per customer requirements. The revenue potential of this model is often tied to pollution levels. Thus, places with high environmental pollution will offer more customers looking for a fresh coat of paint

c) Products & Services

It is needless to say that the products and services you will offer will depend on the auto repair shop model you are selecting. It is very important to outline the products & services that you will offer so that the investors know exactly which offerings will attract more revenue for your business.

Here is a sample list of products & services that you may offer (but remember to list only those that are relevant to your business model):

• Brake repair services
• Tire rotation services
• Tire change
• Transmission services
• Oil & filter change
• Scheduled maintenance

Make sure that you are listing all services because generally auto repair services will not offer hundreds of products & services. They are quite limited and hence, listing them all is possible.

d) Pricing Strategy

In addition with the list of services you offer, provide an estimated price range for specific services. There should not be extreme differences between you and your competitors.

For example, you cannot charge twice as much as your competitors charge for a simple oil & filter change. If you try to do that, you will fail to attract customers.

Include a pricing list for the products and services that you will offer. You don’t need to provide precise numbers. Average pricing will do.

For example, you can provide an average price range for tire replacement because tire prices will vary depending on the manufacturer, model, type, country of origin, etc.

Offering a pricing list, or at least average prices, is important as it will allow investors to tie your pricing strategy with your financial projections later on (more on that below).

e) Legal Structure

Finally, your business overview section should specify the legal structure of your business.

Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Auto Repair Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if you want to open an auto glass repair shop in an area where most of the vehicle owners usually come for regular servicing, it might not be a viable business model for the area.

Similarly, if your auto repair shop is located in a low-income neighborhood where only a small percentage of the residents own private vehicles, your business may not succeed.

Break this section into three sub-sections that will include:

a) Market Trends

Understanding market trends will not be easy. It may require a lot of research, unless you already have strong experience (as a car mechanic for example) in the area.

The best way to perform your research will be to talk with your potential customers. Also, you can study competing auto repair shops to get an idea of the type of customers they receive, the services they provide, etc.

Some common questions you may ask the target audience include:

• What type of vehicles do they drive or prefer to drive?
• How many vehicles do they have in a family?
• What type of auto repair services do they usually require?
• How often do they go to a repair shop?

b) Competition analysis

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their products and services, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

c) SWOT Analysis

Try to provide a SWOT analysis . It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

• Strengths : 20 years of experience in car body repair and customization service, a team of highly specialized diagnostic technicians, etc.
• Weaknesses : Startup cost, zero reputation, little marketing experience
• Opportunities : High accident-prone zone, no car body repair shop within a 15-mile radius
• Threats : Low-cost service providers

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy . It also helps potential investors to assess the risk and reward profile of your business.

d) Customers

This is the sub-section where you will provide a detailed analysis of your target audience. You will expand the data points your provided earlier in the Business Overview segment.

Some important points that you must include in your customer analysis include:

• Age and gender distribution (you can get local demographic data from census.gov )
• Driver gender ratio
• Number of vehicles per family
• Average monthly income and disposable income
• Average bill size per visit
• Average yearly spending on auto repair services
• Vehicle type & brand preferences

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and the needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

4. Sales & Marketing

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

• What are your Unique Selling Points (USPs)?
• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do auto repair shops use?

A few marketing channels that auto repair shops typically use are:

• Signage, billboards
• PPC ads, Facebook ads, etc.
• Print media
• Loyalty programs
• Online local listing (Google Business)
• Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
• Word of mouth

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• High quality service
• Location : you store is closer to a busy road and/or to where your customers live
• Partnerships with car manufacturer brands that refer you to their customers
• Loyalty reward programs : X number of free tune-ups, alignments, and brake services per year

Your USPs will depend on your business model, competitor analysis , and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

• The management team and their experience/track record
• The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your auto repair shop business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the auto repair shop you are proposing. If they have specialized training and education (such as automotive technician training, collision & auto body repair training, etc.), add that information.

Organization Structure

Even if you haven’t already hired a service manager, mechanics, helpers, and other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your auto repair shop is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to purchase new repair equipment, renovate your facilities, etc.)
• The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For an auto repair business, startup costs are all the expenses you incur before you open your auto repair shop and starting making sales. These expenses typically are:

• The lease deposit for the commercial space you rent (if you don’t buy it)
• The design and renovation of the existing facilities
• The auto repair equipment

Assuming you do not buy the land and the building but decide to rent instead, typically startup costs are anywhere from $67,200 to $225,500 for a typical small (5,000 sq. ft.) auto repair shop.

c) Financial Projections

In addition to startup costs, you will now need to build a solid financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements , financial metrics, Key Performance Indicators , key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement ). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

7. Funding Ask

This is the last section of your auto repair shop business plan . Now that we have explained what your auto repair business model is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any auto repair business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the machines and equipment?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our financial plan template for auto repair shops , you won’t have any issues answering these questions.

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Starting Auto Spare Parts Store Business Plan (PDF)

Starting an auto spare parts store business presents an exciting and profitable venture in today’s dynamic market. As the automotive industry continues to flourish, the demand for quality spare parts has skyrocketed, creating a lucrative opportunity for entrepreneurs. This business not only promises substantial profit margins but also offers a steady stream of revenue, thanks to the ever-growing number of vehicles on the road. With cars becoming a necessity for many, the need for maintenance and replacement parts becomes inevitable, positioning auto spare parts stores as a pivotal component of the automotive ecosystem. The allure of this business lies in its resilience and the constant demand. Unlike other industries that might experience seasonal fluctuations, the auto spare parts sector remains relatively stable, driven by the continuous need for vehicle repairs and maintenance. This stability is a significant draw for business owners looking for a dependable and profitable venture.

At least 18 percent of the global population own at least one vehicle. That translates to over 1.4 billion vehicles in the world. That is a staggering number of vehicles and the figure keeps growing. Vehicles constitute several electrical and mechanical aspects. That is why they are always likely to malfunction or get worn out over time. The average vehicle has approximately 30 000 parts. If we are to look at substantially big parts or components, that is roughly 1800 parts. Vehicle ownership has been on the rise and will continue to be; even multiple vehicle ownership. The other notable dynamic is that vehicle owners are generally now keeping their vehicles for longer. As such that increases the likelihood of them needing auto spare parts at some point. That clearly shows you there is money to be made in starting an auto spare parts store business. Despite whatever the state of the economy might be in, the demand for auto spare parts will always be high. This article will outline how to start the auto spare parts store business, and the auto spare parts business plan – PDF, Word and Excel.

Market Research

The need to gather comprehensive up-to-date data.

Market research for auto spare parts business is basically 3-tier i.e. market identification, product research, and consumer research. You can conduct market research by conducting surveys, observations, interviews, and desk research. Desk research involves gathering and analysing information from print and electronic media. The reason why you must conduct market research for motor spares business is to figure out whether or not a market exists. Then if it does you would want to comprehensively know all its characteristics.

Several Variables To Consider

There are numerous different types of vehicles, brands, and makes. The most populated segment is light motor vehicles. However, that might not hold true everywhere. Thus you have to zone in on your intended target market and know its characteristics. All these are examples of variables that call upon you to conduct market research. What are the most sought after auto spare parts and for which types of vehicles?

Figuring Out The Roll Out Plan

You also have to gather enough information to know how to roll out your auto spare parts store business. Do you have to operate from a physical outlet? Should that physical outlet exclusively just focus on auto spare parts? Do you have to marry the auto spare parts element with an already existing business e.g. a fuel station, a garage, or workshop?

Maybe it could be best to consider franchising. How about rolling out the motor spares business exclusively using an online store approach? You have to know where you will score as many customers as possible. Making a decision out of all those options can only be accurate if your market research is thorough.

Make sure you have a comprehensive auto spare parts business plan

The failure to plan is the beginning of business failure. The auto parts business plan must be clear and succinct enough to give your potential partners, clients and investors an overview of what your objectives are. At the same time, it must be detailed enough to explain your business well. Your motor spares business plan should have financial statements which show that your business is viable and profitable.

Location And Premises for an Auto Parts Store

Your choice of location is of critical importance with respect to customer inflows. An appropriate location must take into account places where there are good road networks and high vehicle traffic. Your choice must also be done after being absolutely sure that your target area has people with substantial income levels. It would also be wise to scout your intended location and see whether or not there are other players active in the same trade. Once you get comprehensive details on that it’ll help you setup shop in a way that wards off competition.

As can be noticed from some central business districts, such stores can be located in streets lined up with auto spare parts shops. That can be strategic in that you get easily located due to people’s knowledge of the street. However, considering that you’ll be close to your competitors you’ll have to be very competitive. Deciding to locate yourself as a standalone shop can be expedient but do your homework to ensure customer inflows will be easy to mobilize. In general, the best location is in a central business district, shopping centres, or near places or residential areas that have high vehicle populations. The store must be sufficiently spacious with spare parts stacked neatly on clearly labelled rakes or sections. There must also be ample and secure parking space with even a loading bay where applicable. The auto spare parts store business plan should cater for the costs of purchasing or leasing the premises.

Competitive Analysis

Your auto spare parts store business cannot operate in a vacuum. There are competitors and you must study them closely. What are their business offerings? What is the nature of their customers and where are they from? Generally how are they running their auto spare parts store businesses? You are looking at all these and more to find out loopholes or gaps. The auto spare parts store business is extremely competitive. Your success can only be borne out of having superior differentiators. It will take conducting an in-depth competitive analysis to figure them out. The auto spare parts store business is highly segmented. Most players are not diligent enough in studying and finding out the finer details of their intended target markets. Take time to dig into that and you will discover how to set apart your auto spare parts store business.

Permits/Licenses, Insurance & Business Bank Account

Your business entity i.e. your auto spare parts business must be registered first and foremost. If you are going to be operating using a physical auto spares store, a store license will be needed. The requirements vary depending on your specific location. Mostly you can seek guidance on that from the local authorities of your respective location. There may be special permits or licenses that may be required depending on the nature of your services. It is possible that you might be dealing with auto spare parts, substances, machinery, or processes that require special licensing.

It could also be that some of your personnel may be required to be licensed for their respective trades. You have to see to it that you are not found wanting by operating without proper permits or licensing. Insurance is a no-brainer in running an auto spare parts business. There is an array of possible risks which need to be covered by insurance. As always it is smart to separate yourself from your business in terms of financial management. That is why you must open a business bank account solely for your auto spare parts store business. The costs of insurances and licenses must be included in your motor spares business plan.

Auto Spare Parts Products

Your product range will be hugely based on your targeted market. There auto spare parts market is huge and there several niches which your auto parts business can target. Your motor spares parts can specialize with selling auto parts for only one vehicle make eg Mercedes-Benz, Audi etc. Specialisation can also be according to product lines, eg gearboxes, suspension parts, engines, cooling systems, braking system, tyres etc. Focus can also be made to sell quick replacement auto spare parts eg brake pads, brake shoes, high pressure pumps, filters etc.  Other auto spare parts stores act like one-stop stores which sell a variety of products without specialising in anything.

The types of auto spare parts products you can sell are many and diverse. Some of them are bumpers, radiators, filters, batteries, plugs, fenders, ball joints, shock absorbers, body parts, bearings, plugs, lamps and lights (i.e. headlamps, corner lamps, tail lights and so on), sensors, rims, grills, lubricants, amongst others. It’s important to source your stock from reputable suppliers and at favourable prices so as to subsequently price them competitively at a profit. Your auto parts store business plan should obviously cater for the costs of purchasing the products which your store will be selling. You can source your auto spare parts from local and international suppliers.

Inventory Management

Effective inventory management is pivotal for the success of an auto spare parts store, as it ensures the right parts are available when needed without overstocking or facing shortages. First and foremost, understanding market demand is crucial; you should analyze which auto parts are most needed based on local vehicle types and seasonal trends. Implementing a reliable inventory system, such as real-time tracking software, is essential for monitoring stock levels, forecasting future demands, and identifying sales trends. This system should be complemented by regular inventory audits to verify physical stock against system records, thereby preventing discrepancies and theft. Organizing inventory into easily accessible categories based on part type, vehicle make, or sale frequency is also vital for efficient operation and customer satisfaction. It’s equally important to establish strong supplier relationships for a consistent supply chain, which can also aid in negotiating better prices and terms.

Adopting advanced inventory practices like Just-in-Time (JIT) inventory can further optimize stock levels, minimizing the cost of holding large quantities of inventory. This approach, coupled with offering special orders for less common parts, helps in managing space efficiently and reducing the risk of unsellable stock. Investment in employee training is essential, ensuring that staff members are proficient in using inventory systems and understand the importance of accurate stock keeping. Embracing technological advancements, such as barcode scanners, RFID tags, and cloud-based inventory systems, can significantly streamline inventory processes and improve overall efficiency. Constant monitoring and adjustment of inventory management strategies are imperative to align with evolving market trends, customer needs, and business growth.

Budgeting and Financial Planning

Budgeting and financial planning are integral components when embarking on the journey of starting an auto spare parts store business. To ensure the long-term success of your venture, it is imperative to carefully consider various financial aspects. First and foremost, assess your initial investment requirements, encompassing expenses like leasing or purchasing a suitable retail space, store setup, inventory acquisition, and legal fees. Crafting a comprehensive budget that delineates your startup costs is essential in understanding your financial footing from the outset.

Once your business is up and running, meticulous management of ongoing operating expenses is paramount. This includes accounting for monthly expenditures like rent or mortgage payments, utilities, employee salaries, and marketing costs. Simultaneously, managing your inventory efficiently is critical in this line of business. Implementing robust inventory tracking systems and setting reorder points will help you strike the right balance between having enough stock to meet customer demands without overstocking or risking shortages of essential parts. A well-thought-out pricing strategy, based on factors such as cost of goods, competition, and perceived value, should be developed and regularly reviewed to maintain competitiveness and profit margins.

Moreover, financial forecasting plays a pivotal role in your business’s success. Begin by creating a sales forecast, supported by market research and historical data, enabling you to set realistic revenue goals. To complement this, financial projections spanning the initial years of operation, including income statements, cash flow statements, and balance sheets, should be developed. These projections not only provide insights into your business’s financial health but also facilitate the identification of potential cash flow issues. Additionally, incorporating contingency planning and exploring various financing options, while remaining cautious about overburdening the business with debt, are essential steps. Collaborate with a tax advisor to ensure you are compliant with tax obligations and make the most of industry-specific deductions or credits. Regular financial reviews, comparing performance against your budget and projections, will help refine your strategies and ensure the continued prosperity of your auto spare parts store business.

Staff And Management

This will be depend on the size or scale of your auto parts business operations. At the minimum you need cashiers and store attendants. I can’t overemphasise the importance of having staff that’s well acquainted with auto spare parts and the technical details thereof. Hiring either qualified personnel with the necessary expertise or employees wielding a comprehensive background regarding vehicle repairs and maintenance will be strategic. The staff must also be passionate about engaging with customers, and be good at offering quality customer service and care. Size of management also depends on the size of the business, for small auto spare store businesses, this can just be the business owner. The salaries of all the staff should be budgeted for in the auto spare parts business plan.

Market for Auto Spare Parts Store Business

In the world of auto spare parts retail, recognizing and comprehending your potential customers is an essential aspect of building a thriving business. Consider automotive enthusiasts and do-it-yourself mechanics. These individuals are on the lookout for high-quality parts, accessories, and tools to maintain or enhance their vehicles. Your store’s success can hinge on providing a comprehensive range of products and expert advice tailored to their needs. Professional mechanics and auto repair shops represent another lucrative customer segment. They require a consistent and dependable source of spare parts for their daily operations. By offering competitive pricing, timely delivery, and exceptional customer service, you can establish lasting relationships with this critical demographic. Fleet managers, overseeing businesses with vehicle fleets like delivery services or taxi companies, present an opportunity for bulk purchasing options and tailored service agreements.

Additionally, don’t overlook the potential of car dealerships in need of spare parts for vehicle maintenance and repair. Forge partnerships with local dealerships by offering attractive pricing and efficient order processing. In the digital age, a significant portion of customers prefer online shopping. To capture this market segment, it’s crucial to create a user-friendly e-commerce website with easy navigation, secure payment processing, and efficient shipping options. Vintage car enthusiasts are another specialized group, often seeking rare and hard-to-find parts for their beloved classics. Providing expertise in sourcing and stocking unique components can win the loyalty of this passionate customer base.

Local car owners seeking parts for routine maintenance or minor repairs represent a valuable demographic within your community. Building a strong local presence through advertising and word-of-mouth can effectively reach and engage this group. Off-road and specialty vehicle owners, including motorcycle enthusiasts, require specialized parts and accessories. Tailor your offerings and knowledge base to cater to the distinct needs of these niche areas. For a consistent stream of business, consider pursuing contracts or partnerships with government agencies, municipalities, and public transportation services, as they frequently require spare parts for their vehicle fleets. Businesses in the agricultural and industrial sectors rely on vehicles and machinery that demand spare parts. Targeting these sectors with relevant products and specialized services can unlock additional revenue streams.

Marketing Plan

First things first – press release & official launch.

When starting an auto spare parts store you must do a proper press release. A press release is one of the most tried and tested means to market your business. Marry that with doing a notable official launch of the store.

Digital Marketing Must Be Central

The core of your marketing initiatives, moving on, should be premised on digital marketing. Put up active social media accounts for the auto spare parts store business. One of the trending ways nowadays is to conduct online contests on social media. Your contests must incorporate the use of hashtags and rewarding the highest engagements.

Involving social media influencers can enhance the efficacy of your digital marketing efforts. Though of course you can and must still place ads in print and other electronic media. For example, you can place ads to be aired on radio or TV. Hand out fliers or put up banners, posters, or billboards.

Participation In Strategic Events & Initiatives

Additionally, you must always be on the lookout for strategic events to attend. These can be trade shows, car shows, racing events, expos, and the like. Participate in community development programs to increase visibility of your auto spare parts store business.

Keys To Profitability

Unlocking profitability for your auto spare parts store demands a multifaceted approach. Efficient inventory management takes the top spot. Striking the right balance between having enough high-demand parts to meet customer needs and avoiding overstocking is crucial. Implementing an inventory tracking system will optimize stock levels, ensuring you neither tie up excessive capital nor risk stockouts. Competitive pricing is another pivotal factor. Study your competitors’ pricing strategies and find the equilibrium that allows you to remain competitive while preserving healthy profit margins. Regularly reviewing and adjusting your pricing according to market fluctuations is essential for sustained profitability. Exceptional customer service can make or break your business. Establish strong customer relationships by offering expert advice, timely assistance, and a seamless shopping experience. Happy customers are more likely to return, bolstering your profitability over time.

Nurturing solid supplier relationships can enhance profitability by leading to favorable terms, discounts, and credit arrangements. Maintaining strong connections with your suppliers can result in better pricing and preferential treatment. Effective marketing efforts, encompassing both online and offline channels, should not be overlooked, as they can significantly increase your store’s visibility and drive sales. Managing operating costs effectively is paramount, with regular reviews to identify areas for cost reduction while maintaining quality and service standards. Expanding your product range beyond spare parts, offering related products or services, can diversify revenue streams. Continuous improvement is a constant endeavor, with feedback from customers and employees serving as valuable inputs. Stay abreast of industry trends and leverage technology to remain competitive and profitable. Monitoring your financial performance closely through regular reviews of financial statements, cash flow, and profit margins is essential to identify trends and proactively address any issues. Investing in employee training and motivation is crucial, ensuring knowledgeable staff who provide excellent customer service and remain motivated and productive.

Pre-Written Auto Spare Parts Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the auto spare parts store business, we encourage you to purchase our well-researched and comprehensive auto spare parts store business plan. We introduced the business plans after discovering that many were venturing into the auto parts business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global auto spare parts business plan will make it easier for you to launch and run your auto spares business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the auto parts business.

Uses of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto spares store business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your auto parts store business
• As an auto spare parts store business proposal
• Assessing profitability of the motor spares business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Auto Spare Parts Business Plan (PDF, Word And Excel)

The auto parts business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the auto spare parts store business fail, so that you can avoid their mistakes
• Ways to raise capital to start your auto spare parts store business

The auto spare parts business plan package consists of 4 files

• Auto Spare Parts Store Business Plan – PDF file (Comprehensive Version – 68 Pages)
• Auto Spare Parts Store Business Plan – Editable Word File (Comprehensive Version – 68 Pages)
• Auto Spare Parts Store Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
• Auto Spares Parts Store Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Auto Spare Parts Business Plan (PDF)

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

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StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

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Get the Auto Spare Parts Store Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your auto spare parts store business! Check out our collection of business plans  , and more business ideas .

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Auto Repair Shop Business Plan

Things to Consider Before Writing an Auto Repair Business Plan

Select what area of repairs you’ll work on.

Auto repairs shops take up a variety of jobs like repairing and painting car bodies, transforming old vehicles, or doing tire and mechanical repairs.

So, it is necessary to decide what you want to do before getting started. Specialization helps you get more expertise in the area and makes you more reliable for the job to customers.

Pick a suitable location

An accessible location is a must for an auto repair business. Your location would also rely on the niche you’ll be working on. Tire repair services are usually on the road to make them accessible for emergencies.

While transformation services are mostly opened inside the city for easier pickup and drop.

Hire an efficient team

An auto repair business’s success relies heavily on the quality of services you provide. That helps you retain customers and get more. Hence, it is important to have a team that can provide quality services to your customers.

Apart from that, it is also important to have a team with good technical and soft skills to understand your customer’s problems better.

Formulate marketing strategies

Marketing your business is essential to attract customers and building your brand’s identity. Hence, it is important to have a marketing strategy for all the platforms your target audience uses to find repair services.

Chalking out Your Business Plan

A business plan helps you leverage the best of your resources, and get the maximum out of your efforts.

A business plan also comes in handy if you need funding or loans for your business, as investors and banks prefer to see a business plan before they give the money.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample auto repair shop business plan template for you to get a good idea about how a perfect auto repair shop business plan should look like and what details you will need to include in your stunning business plan.

Auto Repair Shop Business Plan Outline

This is the standard auto repair shop business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• Mission Statement
• Vision Statement
• 3 Year profit forecast
• Business Structure
• Startup cost
• Products and Services
• Market Trends
• Target Market
• Market Segmentation
• SWOT Analysis
• Sales Strategy
• Local Publications
• Community Events/Organizations
• Commuter Advertising
• Customer Loyalty Programs
• Direct Mail
• Pricing Strategy
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample auto repair shop business plan

Need help writing your business plan from scratch? Here you go;  download our free auto repair shop business plan pdf  to start.

It’s a modern business plan template specifically designed for your auto repair shop business. Use the example business plan as a guide for writing your own.

After  getting started with Upmetrics , you can copy this sample auto repair shop business plan template into your business plan and modify the required information and download your auto repair shop business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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As an experienced specialist facade contractor, Mimsa and their group companies today has its headquarters and factory in Istanbul, office and a second factory in Moscow, office and a workshop in London (since 2016) and have expanded with an office in New York (in 2018).

This year share of exports accounts for more than 80% of the total work done. Our ability to adopt ourselves to International Standards & Building Regulations and working together with our clients to satisfy their highest requirements, have given us this opportunity. An example of this was our recently achieved “Secured by Design” Accreditation for the UK Market.

We undertake in house; the detailed design, engineering, fabrication and installation of aluminium windows, doors and curtain walls. As a group today, we have a total of more than 100 technical staff and over 550 workers working in collaboration with the high-end software and machinery. Since 2016, our BIM trained group (consisting of 15 designers and managers) are working for our BIM required projects in different levels worldwide.

Our team is working side by side with our main systems suppliers such as; Schueco, Reynaers, Sapa Group and able to work with most systems companies in Europe, UK and Russia. We also work with the major glass suppliers such as Guardian, Saint Gobain, Pilkington and their processors worldwide to provide a high quality, quick and affordable service to our customers. We as a group company, together with our extensive supply chain, have managed to achieve various levels of BREEAM and LEED Certificates in our international projects.

Our vision is to set up robust relations, through high quality works with the existing Clients and approach to the main players in the glazing market over the next years.

Auto Parts Export Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Parts Store

Do you want to start an auto parts export business? If YES, here is a detailed sample auto parts export business plan template & FREE feasibility report.

As long as people still use automobile on our roads, auto spare parts will continue to be in demand. Auto spare parts export business is indeed a profitable business because the replacement of damaged or worn out auto parts is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.

If you are looking for a business to start as an entrepreneur and you know you have an interest in the automobile industry, then you should consider starting your own auto spare parts export business.

Although you don’t need a college degree to establish your own auto spare parts export business, but you would need some form of informal training.

A Sample Auto Parts Export Business Plan Template

1. industry overview.

The auto parts wholesaling industry comprises operators that export and sell automotive parts wholesale to automobile manufacturers, automotive parts retailers and auto service providers. Sales of new tires and tubes are not included.

IBISWorld projected that revenue for the Auto Parts Wholesaling industry is expected to have grown over the five years to 2019. Over the past five years, original equipment manufacturers have built and improved key partnerships with wholesalers to meet growing consumer spending and evolving consumer preferences.

Furthermore, as auto parts retailers increased sales and consumers sought auto repair services and parts replacements, wholesalers encountered rising demand for products. Overall, industry revenue is expected to have risen at an annualized rate of 1.4 percent to $195.3 billion over the five years to 2019.

This figure includes an anticipated 1.9 percent increase in 2019 alone, as demand from car and automobile manufacturers for new and innovative products continues. The Auto Parts Wholesaling industry is indeed a large industry and pretty much active in all the countries of the world.

Statistics has it that in the united states of America alone, there are about 23,275 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 238,426 people and the industry rakes in a whooping sum of $198 billion annually.

The industry is projected to grow at 0.8 percent annual growth within 2015 and 2022. It is important to state that this industry has no major players with a market share of greater than 5 percent. A close observation of the Auto Parts Wholesaling industry shows that the industry has low barriers to entry.

In the United States, the industry is subject to few restrictive regulations, and industry employees typically do not need to be trained formally to be able to carry out their duties.

The truth is that, the startup capital for opening an auto parts exporting business especially when it involves establishing a standard auto parts store with products from various automobile companies is on the high side.

The tough part as it relates to start-up costs most likely are the need to establish a supply of auto parts from wholesalers or directly from auto parts manufacturing companies. This is because an auto parts exporting business cannot be started without sourcing products for sale.

Regardless of low barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.

Lastly, the auto spare parts wholesaling industry is pretty much open for aspiring entrepreneurs to launch their business in the industry. One good thing about the business is that it can be opened in any part of the United States and still have customers all across Africa and South America.

2. Executive Summary

Chris Moore® Auto Parts Exporting Company, LLC is a registered auto spare parts export business that will be located in in East Rutherford – New Jersey.

We have been able to lease a warehouse facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard auto spare parts export business that we intend launching and the facility is located around the largest residential estate in East Rutherford – New Jersey.

Chris Moore® Auto Parts Exporting Company, LLC will be involved in exporting automotive parts and accessories, distributing automotive parts from different manufacturers (brands) from the United States and to other countries abroad.

We are aware that there are several auto spare parts export businesses all around the United States and Canada, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our shipping partners are highly efficient. Chris Moore® Auto Parts Exporting Company, LLC will ensure that all our customers are given first class treatment whenever they contact us.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the number of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that want us to export and also when making some business decisions.

Chris Moore® Auto Parts Exporting Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

Chris Moore® Auto Parts Exporting Company, LLC is owned by Chris Moore and his immediate family members. Chris Moore has a B.Sc. in Business Administration, with well over 5 years’ experience in the Auto Parts Wholesaling industry, working for some of the leading brands in the United States.

3. Our Products and Services

Chris Moore® Auto Parts Exporting Company, LLC is in the Auto Parts Wholesaling industry to service a wide range of clients and of course to make profits, which is why we will ensure we make available a wide range of auto parts from top manufacturing brands in the United States and other countries of the world.

Our product and services offerings are listed below;

• Exporting automotive parts and accessories (critical parts (new), critical parts (used), maintenance parts, accessories and performance parts)

4. Our Mission and Vision Statement

• Our vision is not just to become one of the leading brands in the Auto Parts Wholesaling industry in New Jersey, we want to also build a one stop auto spare part manufacturing company.
• Our mission is to establish a world – class auto parts export business that will export a wide range of auto parts from top auto parts manufacturing brands to dealers all across South America and Africa with Nigeria as a prime focus .

Our Business Structure

At Chris Moore® Auto Parts Exporting Company, LLC, our intention is to build a standard auto parts export company in East Rutherford – New Jersey.

Although our auto parts export business might not be as big as Advance Auto Parts, AutoZone Inc., Genuine Parts Company, and O’Reilly Automotive Inc et al, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Warehouse Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants/Cashiers
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Warehouse Manager:

• Responsible for managing the daily activities in the warehouse
• Ensures that proper records of auto parts are kept and warehouse does not run out of products
• Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Control auto parts distribution and supply chain inventory
• Supervise the workforce in the sales floor.
• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help to ensure consistent quality of auto parts from different manufacturers are purchased and exported in good price that will ensure we make good profit
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Liaise with shipping and logistic companies to facility seamless and prompt export of auto parts as ordered by clients .
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Manage the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
• Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• make suggestions and encourage purchase of products
• Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options

6. SWOT Analysis

Our intention of starting in East Rutherford – New Jersey and exporting auto parts to just a handful of countries is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then export to several countries all across the South America and Africa.

We are quite aware that there are several auto parts export companies all over the United States of America, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Chris Moore® Auto Parts Exporting Company, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Chris Moore® Auto Parts Exporting Company, LLC;

Our location, the business model we will be operating on both (physical and online store platform that people can order spare parts from), varieties of payment options, wide range of auto parts from different manufacturing brands both from the United States and abroad and our excellent shipping and customer service culture will definitely count as a strong strength for Chris Moore® Auto Parts Exporting Company, LLC.

A major weakness that may count against us is the fact that we are a new auto parts export company in East Rutherford – New Jersey and we don’t have the financial capacity to compete with multi – million dollars’ auto parts export companies like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co when it comes to exporting and retailing at a rock bottom prices.

• Opportunities:

The fact that we are going to be partnering with some of the leading auto parts dealers in Nigeria and Brazil provides us with unlimited opportunities to sell our auto parts to a large number of individuals, auto part stores and of course auto repair, service and maintenance garages and transport companies.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for and we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is instability in the freight forwarding / shipping industry. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Auto Parts Wholesaling industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever – changing trends are major growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the industry.

So also, the rising demand for parts manufactured by a third-party manufacturing company, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as auto retail stores keep prices low to attract more sales amid growing competition.

As part of marketing strategies, auto parts export companies engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old ones.

8. Our Target Market

Perhaps it will be safe to submit that the auto parts wholesaling industry has one of the largest range of customers; almost every automobile owner have one reason or the other to purchase automobile parts and accessories. We are in business to export a wide range of auto parts to the following groups of people and businesses;

• Auto parts dealers and stores in Africa and South America
• Car owners in Africa and South America
• Auto repair, maintenance and servicing garages in Africa and South America
• Transport companies in Africa and South America
• Haulage companies in Africa and South America

Our competitive advantage

A close study of the auto parts wholesaling industry reveals that the market has become much more intensely competitive over the last decade.

As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading auto parts export companies in East Rutherford – New Jersey and throughout the United States.

Chris Moore® Auto Parts Exporting Company, LLC is launching a standard auto parts export company that will indeed become the preferred choice of dealers in Africa and South America. Our auto parts export company is located close to the largest auto parts manufacturing company in East Rutherford – New Jersey.

One thing is certain; we will ensure that we have a wide range of auto parts from leading auto parts manufacturers available in our warehouse at all times. It will be difficult for customers to visit our auto parts store and not see the type of auto parts and accessories they are looking for.

One of our business goals is to make Chris Moore® Auto Parts Exporting Company, LLC a one stop auto parts export company for auto parts dealers, automobile owners, auto repair, maintenance and servicing garages and transport companies in South America and Africa.

Our excellent customer service culture, online store, various payment options and highly reliable shipping platform will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Chris Moore® Auto Parts Exporting Company, LLC is in business to export a wide range of auto parts to South America and Africa. We are in the industry to maximize profits and we are going to go ensure that we achieve our business goals and objectives.

In essence, Chris Moore® Auto Parts Exporting Company, LLC will generate income by offering the following products and services;

10. Sales Forecast

One thing is certain when it comes to auto parts export companies, if your warehouse is stocked with various types of auto parts and accessories and you have affordable and reliable shipping arrangement, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in South America and Africa and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the auto parts export market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Chris Moore® Auto Parts Exporting Company, LLC it is based on the location of our business and other factors as it relates to auto parts export companies startups in the United States;

• First Fiscal Year (FY1): $950,000
• Second Fiscal Year (FY2): $1.8 million
• Third Fiscal Year (FY3): $3.5 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any sudden changes in the United States’ exporting policies as it relates to countries in South America and Africa. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Chris Moore® Auto Parts Exporting Company, LLC to start exporting auto parts, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for auto part dealers.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.

We hired experts who have good understanding of the auto parts export markets to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Africa and South America.

In summary, Chris Moore® Auto Parts Exporting Company, LLC will adopt the following sales and marketing approach to win customers over;

• Introduce our auto parts export company by sending introductory letters alongside our brochure to organizations, auto parts dealers, households, auto repair, maintenance and servicing garages, transport companies and other key stake holders all across South America and Africa
• Ensure that we have a wide range of auto parts and accessories from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our auto parts export company
• Position our signage / flexi banners at strategic places around East Rutherford – New Jersey
• Create a loyalty plan that will enable us reward our regular customers
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)
• Join local chambers of commerce and industries to network and market our products

11. Publicity and Advertising Strategy

Despite the fact that our auto parts export company is well located, we will still go ahead to intensify publicity for the business. Chris Moore® Auto Parts Exporting Company, LLC has a long-term plan of exporting auto parts all across the world which is why we will deliberately build our brand.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Chris Moore® Auto Parts Exporting Company, LLC;

• Place adverts on community – based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around East Rutherford – New Jersey
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our auto parts export business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to auto parts export companies, it is normal for consumers to go to places where they can get auto parts and accessories at cheaper prices which is why big players in the industry like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co but we will ensure that the prices and quality of all the auto parts and accessories that are available in our store are competitive with what is obtainable amongst auto parts stores within our level.

• Payment Options

The payment policy adopted by Chris Moore® Auto Parts Exporting Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Chris Moore® Auto Parts Exporting Company, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of auto parts and accessories without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

These are the key areas where we will spend our startup capital on;

• The total fee for registering the business in the Unites States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Chris Moore® Auto Parts Exporting Company, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for a warehouse for 12 months at $1.76 per square feet in the total amount of $205,600.
• The cost for warehouse remodeling (construction of racks and shelves) – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($12,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory (stocking with a wide range of auto parts and accessories from different manufacturing brands) – $500,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600
• Miscellaneous: $10,000

We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our auto parts export company in East Rutherford – New Jersey.

Generating Funds/Startup Capital for Chris Moore® Auto Parts Exporting Company, LLC

Chris Moore® Auto Parts Exporting Company, LLC is a private registered business that is solely owned and financed by Chris Moore and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Chris Moore® Auto Parts Exporting Company, LLC is to ensure that we continue to make available a wide range of auto parts, deliver quality services, improvise on how to do things faster and cheaper when it comes to shipping and logistics.

We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Chris Moore® Auto Parts Exporting Company, LLC adopt the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.

Chris Moore® Auto Parts Exporting Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the warehouse facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Compilation of our list of products that will be available in our warehouse and online store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of auto parts and accessories: In Progress

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