Business Plan
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TERRANOVAS CHEVEROLET
Business Plan
1.0 Executive Summary
Terranovas Chevrolet is a start-up organization that offers a complete domestic care repair service and sales as well as a full-featured retail parts store. Terranovas will serve the New Rochelle, NY market with one convenient location and possibly more. Terranovas will grow into a business with $13.3 million in sales by year three. We will sell cars for general motors so we will not be purchasing them and GM will pay the sales team
The Concept
The auto repair market has a lot of competition; however, almost all only offer service. Terranovas will differentiate themselves by not only offering a hassle-free repair service, but a fully stocked parts department. Not only will this serve a wide range of customers for both service and parts, but the parts department will support the service department by allowing the service department to turnaround jobs far faster than the competition with generally all of the needed parts in stock and on location.
Terranovas also differentiates themselves by having 10 bays at the location. This offers incredible value to customers who need their cars fixed right away. Waits for service and parts are ideas not entertained by Terranovas. Lastly, Terranovas offers unlimited shuttle service for repair customers making the entire service experience as painless and convenient as possible.
Terranovas will attract and maintain a loyal customer base through their customer-oriented focus on business. All employees are trained and held responsible for providing superior service, developing a long lasting trust bond with customers. This is very important, especially in the auto repair industry where trust and honesty are not the image of repair facilities.
The Management Team
Terranovas has a strong management team that will allow them to execute on this exciting idea. Terranovas has four partners, John Terranova, Giovanna Terranova, Ciro Terranova, and John Leone. John Terranova has a background of sales, 5 years at the nations second largest GM dealership. He will be overseeing the sales and marketing for the organization. Giovannas background is in management from Johnnys automobile where she was a Vice President overseeing a department of 200 people. Ciro is also a product of the auto industry, specifically the auto repair and parts sales industry. Ciro spent five years at Beaver Auto Parts and then seven years at Midas, New Yorks largest independent auto repair facility. At both organizations Ciro had multiple roles within the organization allowing him to bring to Terranovas a broad skill set. Lastly, John Leone brings 10 years of finance and administration experience. John Leone was trained at GM and later in his career took a position at Delco Parts. The incredible breadth of skill sets and knowledge that the management team possesses will allow Terranovas to accomplish their lofty goals of over $11 million in sales.
Terranovas is an exciting business opportunity that addresses the need of having a full service auto repair facility that also has a complete retail parts center. These distinct but complimentary services will have benchmarked customer service, something that the industry is not known for having. Terranovas will be led by a seasoned management team of four, all of whom have extensive industry experience. Terranovas has forecasted sales of $9.1 million for year one, $11.3 million for year two, and $13.3 million for year three.
Highlights
1.1 Mission
Terranovas Chevrolet aims to offer high-quality auto repair services and a full range of auto parts. Terranovas focuses on personalized service to its customers by offering convenience and rapid service. Additionally, Terranovas is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, Terranovas has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).
1.2 Keys To Success
Terranovas keys to success will include:
Expedient and convenient auto repair services.
Growing and maintaining a referral network of local towing service companies.
A wide range of auto parts inventory that is (nearly) never out of stock.
Rapid order and delivery of major auto parts items.
3.0 Start-up Summary
Each of the four co-owners will invest $62,500. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan from HSBC in the amount of $250,000 and a short-term loan in the amount of $55,000. Total loss at start-up is $5,000. The following chart and table show projected initial start-up costs for Terranovas Chevrolet.
Start-up
Requirements
Start-up Expenses
Legal
$3,000
Other
$2,000
Total Start-up Expenses
$5,000
Start-up Assets Needed
Cash Balance on Starting Date
$100,000
Start-up Inventory
$50,000
Other Current Assets
$50,000
Total Current Assets
$200,000
Long-term Assets
$350,000
Total Assets
$550,000
Total Requirements
$555,000
Funding
Investment
John Terranova
$62,500
Giovanna Terranova
$62,500
Ciro Terranova
$62,500