Auto repair shop business plan module

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Chapter I: Executive Summary

Fast and Reputable Auto Repair (FRAR) will be a start-up enterprise offering a full domestic repair services. FRAR will constitute a retail shop full loaded with all repair parts, serving the England market. Within England, the shop will be expected to grow into a business with an enormous sales volume within a period of 4years.

The Concept

FRAR will be distinctive in availing convenient repair services guaranteed of quality as well as continuous supply to our clienteles. This will be our basic move in controlling unnecessary shortages. Customers will be served at a wide range in repair service offers or even related parts where a variety of the same will availed. FRARE will essentially run two departments, under service and also the spare parts/ or repair division which will work collaboratively in offer all-time spare parts customer services. The departments will support each other in order to maintain FRAR competitive edge amid with unfair competition within out target niche. All customer requirements on repair parts will be definitely met under our stocked and more convenient retail locations (Sclar 236). FRAR will have 3different locations, each stocked with 15bays, to serve customers who need immediate fixing of their cars. We will avail faster services to avoid keeping customers waiting, and similarly offer after-sales services to ensure customer satisfaction. Our focus will be customer-oriented in order to possibly secure new clienteles plus retain our loyal ones. We will train all our staff to ensure quality services as well as customized excellence services tour diverse clients. Through this, strong bonds between our customers and our staff will be developed, thereby securing customers' trust and honesty.

Positioning Statement

FRAR have expressed intent in becoming a renowned local leader in offering high-standard services as well as quality automotive repair within England under low cost plan. After creating a reputation for excellence service experience and quality products, FRAR will re-evaluate the business strategy or even positioning within our niche in order to verify whether a differentiation strategy will be more viable. If the strategy proves viable, FRAR may opt to raise prices thus increasing profits margins as compared to other players (Abrams 227).

Chapter II: Mission

Fast and Reputable Auto Repair is premised on being all-time quality provider of auto repair services, with a full pack of all the auto parts. FRAR will be tailored towards personalized services to our customers by always availing fast and standardized services. Similarly, we focus at ensuring maintain highly computerized system on repair parts inventory, to effectively align them with the stock. At the same time, we will maximize turnover inventory on repair parts via maintenance of a balanced inventory level. We will also ensure FRAR has an advanced and a reliable supplier attachment that are most reliable and can perhaps undertake timely delivery.

Keys to Success

FRAR keys to accomplishment will entail standard and reliable auto repair services, developing and maintaining a strong network or bond with auto-repair components suppliers. In addition, FRAR will extensively ensure availability of auto parts with unlimited supply and no shortage as an attempt to ensure fast orders and delivery of key auto components.

Important Assumptions

We at FRAR have based our key assumptions on the following ideas. First, no auto-repair services or even spare components will be primarily offered on credit. Offering auto repair services decelerate projected growth in sales-volume (Sclar 324). Secondly, FRAR is assuming a continued as well a growing need for auto repair services among England customers. Even though there may be some variations depending on our business seasonality, FRAR is presuming some excellent performance during high-season. Finally, FRAR assumes promising as well as continued financial base. We assume clear accessibility to needed capital inline with our financial plans. Such a key assumption will drive the venture's growth as adequate capital is essential when initiating any business development.

Chapter III: Company Summary

Fast and Reputable Auto Repair will be a new business enterprise with four management team members, inclusive of one overall manager, a sales executive, a finance administrator and one member to the partnership. FRAR will avail standard and reliable auto services and various auto parts targeting both the upper as well as middle class market, as deliberate move in meeting all customer needs' category. FRAR will be privately owned by four partners and the startup capital will be from member /partners contributions.

Company ownership

Incorporation of FRAR will be at England, privately owned by four partners, operated and directed by hired management team. The business is anticipated to operate under going-concern basis in a bid to maximize sales volumes and profits.

Start-up summary

Contributions will be made on an equal basis. Any more capital requirement will be financed from a bank loan, secured by member properties. Such a move will be approved by our management team. We aim at kicking-off our operations after acquiring a solid four-month's inventory to support our bid in attracting loyal clienteles. Main costs will be incurred when acquiring assets such as telephone systems, furniture and equipments, pick-up truck and vital warehouse equipments.

FRAR Locations and Facilities

Our Location

FRAR will be based at London city center zone. Such a location will assist us in accessing quick motor services orders as well as good visibility on various convenient towing trucks. Similarly, various clients will be able to access our facility in issuing orders or perhaps placing various requests on auto parts that possibly need to be supplied prior to their servicing day. In addition, this location will be advantageous to us since FRAR marketing team will be able to conformably elevate billboards along key streets in the city as an attempt to advertise FRAR quality services among the existing as well as potential clienteles.

FRAR management has considered such a location in order to attract business partners or organizations' market types in case they request for our repair services on regular basis. For example, in the recent past there has been various motor-racing games organized and conducted within the city vicinity, and such an event could earn FRAR an opportunity to interact with group customers from the sponsors. By centrally locating FRAR services and auto components repair shop, key customers will be able to enjoy our high standard services on 24/7 basis. Strategic location is crucial for clients appeal (Sclar 96).This has been the goal of our venture as an attempt to secure greater share within the first few years of operation. The identified location zones will possibly facility other crucial logistics such as components supplies and Towering activities. FRAR will also enjoy quicker financial transactions that may involve borrowing from financial institutions that are perhaps located near our locality or even during money transit procedures.

FRAR Facilities

We project to acquire our business premises on rent arrangement prior top considering viable lease undertaking or even purchase of our own building. This may happen in our third fiscal period in operation. Essentially FRAR will operate under 3,200 sq. ft shop, in anticipation for an expansion to about 10,200 sq. ft in year three. By considering that we may share our business facility with other venture, related or even diverse from our undertakings, FRAR have considered such a move an advantage since our business neighbors may act as our first customer targets. Similarly, we may use them to convey our idea offer to various clients who may be visiting either our [premises directly or even through induced approach by our business neighbors. The move will also facilitate our ability to meet, retain or even secure potential client who may require auto repair services.

Our facility will be sub-divided under three sections in order to facilitate quicker service provision. First, FRAR will operate a well stocked Showroom, to possibly showcase our repair components to various customers. The showroom will prove useful during open-day or even during the normal business operations where various customers can familiarize with our auto components. Also, different clients may use this opportunity to let us know exactly what to stock in order to identify with the ever changing auto repair needs with in England. For example, the showroom may help the marketing division to clearly understand various repair parts considerations placed on SUVs (i.e. Sport Utility Vehicle), cars or even other type of racing cars. Secondly, FRAR will have the pleasure to run and probably manage authentic office space under the same facility.

The office will seek to manage and appropriately respond to our diverse customers' requests. Our staff will occupy distinctive spaces under designed open office arrangement. Within in our offices, various customers may present their opinions on issues affecting our business performance levels or prevailing market trends for necessary considerations. Finally, FRAR will utilize the premises back-space as an extension to our planned Warehouse. All activities involving repair components transits or even towering may find this facility vital in facilitating the logistics procedures. Similarly, our warehouse may be used as an extension to our small-car garage in situations where the servicing delays owing to high number of clienteles.

Chapter IV: Products and services

FRAR will be competent in its supply of all auto repair materials for all vehicles; makes and models. Strategic focus in availing 15bays for each location and competent staff availing standard and quality services will result into expected customers' unlimited flow. FRAR will be focused at accuracy and honesty to its customers while estimating costs and timely repair completion. Confidence with our anticipated customers will be won when FRAR's staff delivers their promises, thereby developing strong bonds with our clients leading to a strong customer base establishment. Technological advancement will be applied to facilitate reliable record keeping on available auto parts aiming at averting any possible limited orders on the same (Abrams 123). Inventory turnover will be maximized and strong relationship with the suppliers established to avoid auto components' shortage and ever ensure timely delivery.

FRAR will also consider having a variety of repair components placed under selection parlor. This move will help our client to enjoy customized services when selecting or even viewing the components variety from our rich collection. In event of any problem demanding our courteous attention, FRAR marketing team or even the mechanics will always be there to advice and give wise counsel to our clients. This will be a boost to our aims in meeting special needs (Sclar 83). FRAR is focused at having quick access to nearly all vehicle parts under two key divisions. In division one, FRAR will cater and offer “plain Label” generic components to cater for middle class requirements. Our “plain label” will be wider in coverage in order to accommodate all automobile users, and perhaps surpass their expectations during normal servicing. This private labeling will assist FRAR in serving wider niche, strengthening on customer appeal and increase in our projected profit margin (refer to Appendices B: Excel Attachment).

Our second division will cater for the “normal label” components from various automobile manufacturers. As such, various manufacturers will be considered by the management in becoming our close-suppliers depending on their components rpo0visdions. FRAR will only consider product provisions that match with our customers needs and gives them a chance to enjoy excellent services from FRAR's desk. FRAR will effectively use its product mix in meeting different needs presented by the clients under two levels. First, FRAR will offer ostensible repair services as well as spare parts requirements to all consumers. This will be under the above two labels; either “normal label” or even “plain label” generic. Secondly, FRAR may indeed offer premium services levels where various customers who may consider leave-taking services. Here FRAR as the custody, charges premium price on the overall services offered.

Chapter V: Market Analysis Summary

FRAR will focus on meeting local services demands as well as attending cars that will be towed in from locals and or traffic freeways. We will establish contacts with the key local towing truck companies. Such companies will be essential in facilitating services of towing stalled cars to our auto repair shop. We anticipate our revenues from the local client base to be about 75% while 25% will be from freeway tow-ins plus our valuable local customers.

Market Segmentation

FRAR will be targeting both upper as well as middle income markets, where standardized and/ or high quality faster expedient services are demanded. Clients within that segmentation are normally ready to part with additional premiums just to acquire superfluous services. Such customer group, tries hard to aver the possibly of having their cars tied up within repair shops.

Local residents: FRAR regular customer base

To secure business stability, we will require a healthy, regular revenue base which will be facilitated by the large customer base that we will establish among our locality.

Emergency Towing Segment

We expect 25% of the revenue inflow to be from freeway traffic and local under our emergency towing division. We will therefore engage any viable towing truck companies to facilitate the towing-in of various vehicles. This will guaranteed our dedication in offering standard and speedy services are availed, thereby capturing better market segment.

Target Market Segment Strategy

FRAR will concentrate in our targeted market among high and middle class niche. This will help us to secure sound or reputable image from the perception of our targeted market. To achieve this, we will avail convenient repair services, ensure the service is excellent and in positive collaboration with various towing companies within the locality.

Market Needs

FRAR will ensure convenience is adhered to since it's the uttermost need of both the travelers and the upper plus middle class clients. A significant requirement of repair auto parts or even related services is on high demand among the commuting traffic or the tourism traffic clienteles within the local-England highways hence the need for expedience services (Sclar 216).

Service Business Analysis

Auto repair services are known to be fragmented, whereby most auto businesses offer either parts inventory or even repair services solely. FRAR will therefore entail a center offering both services hand-in-hand, thus facilitating convenience within a single locality. FRAR will benefit from the fact that upper and lower consumers care much about convenience and standard services, rather than on prices.

Competition and/ or Buying Patterns

Within England, there are several auto repairs as well as auto components parts outlets or convenient stores. Analysis shows that some offer only related auto services, while others meets different consumers' auto parts requirements. Only few ventures offer both services, hence FRAR will concentrate on convenience and standard services offer in order to counteract the perceived competition. We will concentrate on integrity, honesty and reliability to secure reliable customers reputation. This will thereby facilitate development of large client base from the loyal consumers. In England, competitors are engaging primarily on automotive parts sales, accessories, batteries, ignition parts, engine parts and various engines, mobile electronics, car accessories, hand tools such as wrenches, jacks, and lift equipment, oil and air lifter, chemicals, plus automotive service and or even maintenance or parts installation (Sclar 423). Automotive products will include exhaust systems, wiper blades, suspension parts, and brake parts among others. Ensuring that we face these competitors successfully, we will need to avail all those products already available within the market as well those which are underprovided. Such an action will lead to reliability on our unique services and products for all our customers. We will also ensure our services are standard, ensuring our clients are never frustrated or disappointed.

Market Trends

Automobile repair needs have reported tremendous change as well as explosive growth in the pats few decades. Automobile repair experts have attributed this perceived growth sustainability environmental issues that have seen the auto manufacturers consider safe vehicles over the old models (Abrams 189). Similarly, the publicity associated automobile repair shops have boosted the trend a great deal. By focusing on marketed oriented strategy, FRAR will have a niche to fill as the need for safer automobiles gains a boost from key manufacturers.

Also witnessed has been the issue of ever increasing SUVs that has necessitated the need to strategically locate modern auto-repair shops possibly near the racing streets or fields. Among the local populace, automobiles have been considered as a modest transport mode, hence the growing need to various auto-repair as well as services shops in key areas in England. Finally, with the perceived change in generations, parents (considered as Baby Boomers) have delegated some responsibility to their children giving such kids the opportunity to own or even hire automobile services. As a result, children have been streaming in different repair shops to either buy components for their wrecked cars or learn more about best car parts.

Industry Participants

FRAR is venturing in an industry characterized by various businesses that differ in service provision as well as in competing strategies. Speed Shops are well known local industry participants' providing repair services among the local clienteles at a minimum value. These businesses operate under this industry, and thus they pose greater threat to specialty operators like FRAR, since they may kick-off upon minimum inventory requirements. Even though they tend to be short on marketing skills and business units, Speedy Shops may threaten FRAR ability to secure local-niche. Secondly, Chassis and Engine Builders are main players in this business as well. These well-respected organizations are accorded the responsibility in offering supplies to various markets on diverse automobile requirements ranging from servicing needs to engine parts. The basic limitation that may prove useful to FRAR is based on the idea of specialization that these business have on spare-Parts provision. Finally, some manufacturers opt to provide repair services under their distinctive outlets in an attempt to monitor their provision in diverse geographic or even regional markets.

Strategy and implementation

FRAR will succeed in meeting our goals through provision of quality and / or standard services to our consumers. Our services will be fast and convenient. Similarly, we will acquire success through ensuring a wide range availability of auto parts inventory and adhere to fast supply abilities of the key auto parts.

Competitive edge

FRAR will achieve competitive edge through focus on convenient services to our customer via frequent transport services or even after sale services, faster auto repair services and engaging or networking with the local main towing truck companies.

Primary competitors in England offers automotive parts sales on retail while larger competitors engage in supercenter kind of a business. Supercenters have large numbers of automotive inventory units of popular auto parts and related products (Abrams 376). They serve the aftermarket needs where the consumers are expected to carry the repair service themselves while others carry-out the service for their clienteles. FRAR will engage both services to ensure an all-service supply, facilitating convenience and/ or effectiveness. Competitors within England stores basically carry-out the same line of products. Variations only result from type, model or number of cars which are registered within different markets. On average, a particular supercentre can have an approximate of 20,000 repair products. Our chief competitors will include MJ Sullivan Automotive and Monro Muffler Brake (i.e. MMB) and service, among others.

Pricing strategy

FRAR is focused at establishing and giving a competitive pricing in order to retain its customer-base. Auto-repair clienteles are known to be very sensitive to value; hence FRAR will make sure that pricing categories are perceived as good value to various customers. The locals, who may prefer premium option, will enjoy FRAR considerable terms for the same under the “plain label”. FRAR will thrive as a renowned price taker, seeking to remain ahead amid competition. We will always ensure that our Marginal Revenue (i.e. MR) is presumed to equal our set prices as an attempt to remain relevant in our pricing. For instance, FRAR will consider charging all services offered based on market prices or even on lower ends. According to findings, automobile projects ROA (i.e. Return on Assets) at nearly 4.5% based on the normal pricing of $400 per car (Sclar 134).

Sales Strategy

FRAR will strategically focus on effectively reaching-out to our targeted segments constituting of middle and high class clients. We will mainly use the direct sales staff to meet the strategy. Similarly, we will highly engage the towing truck companies who will assist in capturing highway traffic or even changing local wants among automotive users.

Sales Literature

In order to effectively drive sales, FRAR will make use of an accessible supply catalog. This existing catalog is a specialty designed card bearing vital deals that our customer may use to possibly get in touch with our departments during bookings or even order requests placements. It's vital note that FRAR five-color catalog will bear different cover depending on the pressing advertising needs. For example, during racing events our hardworking marketing executive will redesign the catalog to bear the sponsors logo, our change address (just in case) or even any necessary print-on details; that may assist in communicating FRAR image to our consumers. In order to clearly identify with the clients, we intend to essentially conduct a preliminary survey geared towards establishing the perceived changes in our customer-base preferences. This approach will assist FRAR in building sales by deliberately focusing on our consumer niche requirements. Having our specialty designed catalog precludes any need to outsource Catalog production services (Abrams 214).

In order to facilitate quicker sales, we intend to use catalogs enclosed with repair parts details as well as services pricing for our “normal label” auto components. In addition, FRAR will produce highly designed flyers on in-house basis. These flayers will essentially be useful during our major event such as open-day or during normal showcase activities. Our Flyers distribution procedures will adopt the same approach as our designed catalog. Both flyers will be distributed under various means. For example, we plan to give-out some catalog to our customers on in-store basis while others can be enclosed in mails when comminuting various details to our clients. In addition, FRAR may opt to personally hand-out or issue special bulletin to any automobile event organizers in order to seek business partnerships in a view to drive sales.


We sincerely feel that our great opportunity to source for various auto components and other related parts through various manufacture relationship with boost our competitive edge. Under effective relationship, FRAR will always access and negotiate for fair deals when considering the need to stock the warehouse with various repair components. Negotiation in auto repairs is based on affordability as well as the market trend for the after-sought services (Sclar 416). FRAR will seek to benefit from this solid relationship in enhancing our move in enjoying reduced costs during components sourcing. For example, FRAR we seek to establish special business deals as an attempt to benefit from price waive on various buy-in requirements. FRAR will essentially purchase an assortment of inventory from either manufacturers or even regional wholesalers operating in England. As FRAR's sales volume increases, the management will shift the venture's buying patterns, by deliberately abandoning wholesalers and considering a direct supply from our defined suppliers or manufacturers. FRAR has planned this move in order to increase profits in future.


Our computer software and hardware systems to be used by FRAR will be carefully examined and evaluated prior to using them for business operations purposes. FRAR will opt to settle for off-the-shelf, computer based software for all our accounting needs. Also the software will be used for other transactions or business operations such as sales, monitoring, purchasing, and inventory management purposes. We anticipate to different manufacturers whose system need are diverse as well. As a result, during our initial period in operation FRAR will settle for their old as well as outdated software which will go along with the projected computer system's costs reduction. Similarly, by settling fro this software, FRAR training costs may be significantly reduced to affordable levels. By adopting this system, all FRAR's recruits will comprehend the entire system within one day. As a result, the system will primarily speed our customer order entry procedures thus facilitating our sales while still laying our focus on offering high-standard auto services.

FRAR Marketing strategy

FRAR is planning to place ads on different press releases. Considerations will be made for front-gage appeal. For example, FRAR will feature an ad on “London Gazette”, or possibly the “evening Standard”, as deliberate moves to market our services among consumers who may at times prefer print Medias. Our print ads which may take a form billboard will facilitate our marketing as well. In order to capture clients appeal, we may feature celebrity advertising at a negotiable cost perhaps during FRAR's grand opening (Abrams 146). FRAR will use this grand opening opportunity in order to facilitate our efforts in enhancing in-store promotions.

As such we may seek some support from our identified manufacturers whom we seek to establish formidable relationship with, to offer door prizes as a move in marketing the particular manufacturers spare components. Nevertheless, trade shows will prove useful to FRAR efforts in exhibiting various auto repair services or even spare components and related expertise. Finally, word-of-mouth approach will assist FRAR in relaying customized information to various clienteles. For example, this approach will be valuable when communicating FRAR's intent to expand or even relocate.

Chapter VI: FRAR Management Team

In a bid to ensure this ideal shop undoubtedly sails-through, we will have a competent management team. FRAR venture will have four management team members. One person, a sales expert, will be entrusted with marketing and sales administration for the business. We will also have an overall manager who will be in-charge of all the staff members. All FRAR remunerations will be adhered to as per the schedule (Refer to Appendices A: Excel attachment). In addition, FRAR will recruit an extra person with great experience in the repair parts industry, so that such individual's inputs can be of benefits to FRAR, whose roles will be varied as well. Lastly, within the management team, we will have a qualified finance as well as an administration expert. This expert will be responsible for evaluation of FRAR performance to facilitate the business goals achievement. FRAR management will be operating in seasons, depending on the level of delivery, where incompetent member may at times be replaced. Effective management team drives any organization to greater heights in goal attainment by initiating viable changes, orienting the staff in adapting to the same and enhancing similar culture among the workforce (Sclar 354). Premised on this philosophy, FRAR will include effective leadership team in order to assist the venture in achieving its mission.

Management summary

We are targeting to recruit management staff who are highly qualified and with quality experience in the auto repairs and/ or auto parts industry. The sales executive will be an expert in marketing and sales of auto repair component parts, the finance administrator will be an individual with quality experience in that specific field as well.

Personnel plan

In the long term, about 15years we as FRAR plan to invest heavily in staff recruitment as a result of opening up new facilities (Refer to Appendices A: Excel Attachment).

Chapter VII: Finance plan

We as FRAR expect to gather our own capital and possibly seek extra funds from local financiers in order to facilitate FRAR operations.

Break-even Analysis

In order to make accurate estimates of real risks, we will carry-out intermittent break-even analysis. FRAR will attain this aspect by basing our results on total sales volumes for each unit and related operating expenses. Presentation will be in form of unit cost, per unit revenue as well as related fixed costs (Abrams 156).

Projected profit and loss

As FRAR, we will anticipate to have a steady growth of profitability throughout the following 3year operational period (Refer to Appendices B: Excel Attachment).

Projected cash flow

Our cash flow projections will reveal that the provided funds for our daily expense are adequately catered for to meet FRAR requirements. Such an occurrence will be facilitated by a continuous cash inflow enough to support business operations. We expect to meet bank loan within the next one period in our operations, perhaps at fiscal 2011.