BUSINESS PLAN ON AUTOMOBILE REPAIR AND ACCESORIES

WITH RESTURANT AND COFFEE CAFE

GROUP14

SUBBMITTED TO

Dr. Aryasen Gupta

SUNAND KAPILA (400902049)

PARAMBIR SINGH(400902031)

AJAYPAL SINGH

LAVISH GARG

GURPREET SINGH 400902014

Executive Summary
Car Paradise is a start up Organization which will bring a revolution in
Automobile industry by providing various services under one roof ranging from
Car wash , Car repair , Car service , Alloys ,Tyres , Wheel alignment ,
Accessories , Certified CNG Installation , Car Modification and along with that
we will be providing our customers with new range experience of a Lush green
garden ,Rest room with Facilities like AC waiting area with fully wifi
connection , magazines ,Coffee Bar , Snacks and Refreshments and playing
Facilities for Young and Adults . Car Paradise will be located on Grand Trunk
Road on Outskirts of Ludhiana.

CONCEPT
The automobile Accessories and Repair market has a lot of competition,
however, almost all only offer service. Car Paradise will differentiate
themselves by not only offering a hassle-free repair service, but a whole new
experience of getting all they wanted in car under one roof with great
experience without leaving their comfort zone and that too in highly
competitive Prices. Not only Car Paradise serve a wide range of customers for
both service and comfort, but also one department will support the other
department by allowing the each department to coordinate with each other
by referring customer other services that will be required in their vehicle .

Car Paradise also differentiates themselves by having 5bays at every station

reducing the Lead time for every next Vehicle. This offers incredible value to
customers who need their cars fixed right away. Every Service will have each
different station and so no customer will have to wait for more time and have
other facilities of entertainment and refreshment where customer will spend
time till the vehicle is getting ready . Lastly, Car Paradise offers the service in
which customer only have to book the service they need online or on
telephone and we will offer pick and drop service free of cost making the
entire service experience as painless and convenient as possible.

Car Paradise 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 and
accessories industry where trust and honesty are not the image of repair
facilities.

The Management Team

Car Paradise has a strong management team that will allow us to execute on
this exciting idea. Car Paradise has Five partners, Sunand Kapila ,Parambir
Singh ,Gurpreet Singh ,Ajaypal Singh , Lavish Garg. , Sunand Kapila ,Parambir
Singh ,Gurpreet Singh and Lavish Garg has a background of Mechanical
Engineering and Ajaypal singh with electrical engineering with managerial
Skills in Marketing with which will help us to understand and manage the
business better . All are Techno Managers and have a great Zeal of Growing the
company at Exponential rate .

Car Paradise is a new start-up incorporated business managed by Five

partners. Three of the Five partners(Parambir Singh ,Gurpreet Singh ,Ajaypal
Singh) represent sales/management, one(, Lavish Garg) focuses on the
finance/administration section of the business and one (Sunand Kapila) sees
over the marketing and promotion.

Functions OF THE TEAM

1. Act as a team leader, making sure that Car Paradise team stays on track.
2. Establish and implement company policy, performance standards, policy
and procedures.
3. Establish and implement employee controls - feedback based on
performance standards, indicators, goals, etc.
4. Financial planning and controls

 Paying invoices
 Banking
 Accounting systems
 Sales and expenses
 Assets and liabilities

5. Buying and inventory control

6. Advertising and promotion
7. Reconcile statements
 8. Planning (long and short range)
9. Answer customer complaints
10.Maintain:
 The spark to imagine
 The daring to innovate
 The discipline to plan
 The skill to do
 The will to achieve
 The commitment to be responsible
 The leadership to motivate
11.Scheduling, merchandise store, maintain paper flow, housekeeping and
equipment maintenance.
12.Parts room and warehouse organization.
13.Business development, fleet accounts and national accounts.

Mission
Car Paradise aims to offer high-quality auto repair and accessories services and
a full range of auto parts under one roof with full comfort. Car Paradise focuses
on personalized service to its customers by offering convenience and rapid
service. Additionally, Car Paradise is technologically savvy with computerized
monitoring of all Sections , to ensure that no time will be wasted.

COMPANY PHILOSOPHY

1. To provide an atmosphere where the consumer feels confident about

his/her purchase(s) and relationships with Car Paradise service
employees.
2. Being honest and sincere with the clientele.
3. Being community oriented.
 4. To create a place where customers feel good about recommending Car
Paradise to friends or relatives for their auto concerns.
5. To provide a comfortable living for ourselves and our employees.
6. To provide a healthy work environment where our employees enjoy
coming to work each day.
7. To provide benefits for ourselves, our employees and families (i.e. 401K
plans, health and dental plans).
8. Our goal is to keep our employees long term by treating them as we
would wish to be treated ourselves.

BUSINESS MODEL
Car Paradise works under Collective business model in which Business
organization or association typically composed of relatively large numbers
of businesses, tradespersons or professionals in the same or related fields of
endeavour, which pools resources, shares information or provides other
benefits for their members. he process of business model design is part
of business strategy. The implementation of a company's business model into
organisational structures (e.g. organigrams, workflows, human resources) and
systems (e.g. information technology architecture, production lines) is part of a
company's business operations.

SCALING UP POSSIBILITIES (GROWTH PROSPECTS)

The economic growth of the last several years has resulted in increased
disposable income. Many people have chosen to spend part of their increased
income on their automobiles. As a result, the need for reliable and convenient
auto services has substantially risen as well. Car Paradise will position itself to
capitalize on the growing need of the middle and upper class market for
quality auto service in the Ludhiana ,Phagwara , Sahnewal and the psaaerby on
Delhi-Amritsar Highway. The company estimates that about 80% of revenues
will come from the established local clientele and 20% from the local and
freeway traffic
. The company will be privately owned by four co-owners, with most of the
additional funding coming from a ten year loan.Land will be taken on Lease for
10 years which will be renewed every 5 years.Additional income coming from
rent of Cafe ,Coffee Bar and Entertainment area . To attract additional
financing, the owners may consider taking Car Paradise public several years
down the road .

Products and Services

Car Paradise has the core competencies amongst its large crew to work on
following services Under One roof

• Washing

• Denting painting

• Service

• Alloys tyres allignment

• Accecories

• Change into cng

• Modification

• Suspension parts.
• Ignition parts.
• Exhaust systems.
• Engines and engine parts.
• Oil and air filters, belts, hoses, and air conditioning parts.
• Lighting.
• Wiper blades.
• brake parts.

 Chemicals, including oil, antifreeze, polishes, additives, cleansers and paints.

 Mobile electronics, including sound systems, alarms, and remote vehicle
starters.
 Car accessories, including seat covers, floor mats, and exterior accessories.
 Hand tools, including sockets, wrenches, ratchets, paint and body tools,
jacks and lift equipment, automotive specialty tools and test gauges.
 A selection of truck, van, and sport utility vehicle accessories.

Along with that what is on offer is

AC waiting area with fully wifi connection ,

Magazines ,

Coffee Bar , Snacks and Refreshments

playing Facilities for Young and Adults

Service and Warranty

DIY Wash N' Fix will not give any warranty of the repair operations made by
individuals. When checking in, the customer fills out a form with a disclaimer
relinquishing DIY Wash N' Fix from any liability resulting in the customer's
inability to perform the repair, as well as any lost or stolen property if the
customer leaves the bay unattended. However, DIY Wash N' Fix provides
advice and information to its customers in terms of which tools to use, and
repair guides are available for consultation.

MARKET DETAILS and MARKETING PLAN

Market Segmentation

Local residents regular customer base

Car Paradise wants to establish a significantly large regular customer base. This
will establish a healthy, consistent revenue base to ensure stability of the
business.
Emergency towing local and freeway traffic
Emergency towing of local and freeway traffic comprises approximately 20% of
revenues. Convenience, regular referrals from tow truck companies ,on the
site service, and high quality, rapid service are critical to capture this segment
of the market
1. New car owners
2. Older luxury car owners
3. Sports car owners
4. Lifetime owners
5. Buyers

Market Needs
Between having a high level of commuting traffic, and an equally high level of
tourism traffic on local highways, there is a constant significant demand for
auto repair services and auto parts. Convenience is a must for most middle and
upper class consumers and travelers

Marketing
Our primary brand communications are delivered to our target business
community and clients
through a simple, time-tested method of touching the right consumer at the
right moment. A
blend of simple, effective messages are delivered through the following:
• Word-of-mouth
• At-location roadside signage
• Highly targeted community messaging (community and regional newspapers,
etc.)
• 4p
• Service physical,people,promotione,discounted or free service or
goods.tele marketing,data base,poster,local tv
Marketing Strategy
The company has a modest program of marketing its services that include the
following:
1. Flyers.
2. Direct mailers.
3. Discounts.
4. Newspaper ads.
5. Yellow pages.
6. Referrals through other local businesses.
•

Online Marketing

One of these is to have a social media strategy. These days, Internet marketing
is inextricably linked with social media, and any company that neglects this
area of marketing is to lose an important way. If you are going to build your
brand and a suite, a strategic plan that focuses on social networking sites like
Facebook and Twitter will get better results than going elsewhere. Since the
trust and relationships is an important aspect of any plan, social media is an
essential element for any start-up internet today

You Can Offer Your Customers Free Or Discounted Car Washes.

Marketing Objectives

 • Develop an online presence by developing a website and placing the

Company’s name and contact information with online directories.
 • Implement a local campaign with the Company’s targeted market via
the use of flyers, local newspaper advertisements, and word of mouth.
  

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the
Automotive Repair Shop to easily target men and women within the target
market. These strategies include traditional print advertisements and ads
placed on search engines on the Internet. Below is a description of how the
business intends to market its services to the general public. The Automotive
Repair Shop will also use an internet based strategy. This is very important as
many people seeking local services, such as automotive repair businesses, now
the Internet to conduct their preliminary searches. Mr. Doe will register the
Automotive Repair Shop with online portals so that potential customers can
easily reach the business. The Company will also develop its own online
website. The Company will maintain a sizable amount of print and traditional
advertising methods within local markets to promote the automotive repair
services that the Company is selling
SETUP REQUIREMENTS

The nature of this type of business requires the acquisition of various permits,
licences and bonds. These include an automotive dealership bond, an
automotive dealership license, and liability insurance in the amount of one
million dollars. These will be obtained as soon as the premises are secured.
The shop has a compressor and lines. Other tools will be supplied by myself
and the journeyman mechanic hired. The office equipment, including a
computer and accounting software, has already been obtained.
RETURN ON INVESTMENT
For the investment of $75,000, Dream Cars is offering an interest rate of 12%
amortized over the next 15 years payable bi-weekly.
Expenses are approximately 57% of revenues.

Expenses include

Wages:- include staff of mechanics and clerk on full time basis which will
available during the business hour 7 AM to 11 pm

Utilities:-estimated to be 15% of revenues.

Maintenance:- for all equipment, including the hydraulic lifts and painting
equipment, are estimated to be 2.5% of revenues

Maintenance for the tools is 1% of revenues

Other building maintenance is estimated at 0.5% of revenues.

marketing :- Other building maintenance is estimated at 0.5% of revenues.

There are also expences like depreciation of machines and replace or lost tool.

Sales Forecast Year 1 Year 2 Year 3

Unit Sales
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Interior Clean 770 1,001 1,301
Total Unit Sales 4580 5954 7740
Unit Prices Year 1 Year 2 Year 3
Full Wash 600.00 600.00 600.00
Exterior Wash 360.00 400.00 480.00
Interior Clean 320.00 360.00 360.00

Sales
Full Wash 1056000 1372800
1674400 Exterior Wash 738000 1066000
1663200 Interior Clean 246400 360360
468360

total sale 2040400 2799160 3805960

Direct Cost of Sales
Full Wash 49280 73200
107080 Exterior Wash 32800 47960
69280 Interior Clean 9240 14000
20840
sub total 90320 135160 197200

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00%
10.00% Long-term Interest Rate 10.00% 10.00%
10.00% Tax Rate 25.42% 25.00%
25.42% Other 0 0
0

Break-even Analysis Monthly

Units Break-even 423
Monthly Revenue Break-even 318960
Assumptions:
Average Per-Unit Revenue 76
Average Per-Unit Variable Cost 32
Estimated Monthly Fixed Cost 305640
SWOT ANALYSIS AND RISK COMPENSATING FACTORS
Strengths
 High-quality work.
 Constant contact with clients so as to keep them informed about the state of
their automobile and the repair job progress.
 Knowledgeable mechanics that are friendly, customer oriented, and will take
the time to explain to customer the intricate nature of our business and our
work.
 Quality of service.
 Good business practice.
 Skilled workforce.
 Marketing efforts/information provided to customers.
 Technologically advanced equipment.
Environmental issues awareness.

repairing a client's car, it includes the entire service experience from the first
time a client talks to their mechanic until they decide to stop driving. The long-
term profitability of a service firm of this type lies in the repeat customer that
finds F & R's services an excellent experience, DESPITE the fact that they
usually have suffered a inconvenient breakdown. The company will seek to
examine ALL aspects of the service experience to seek ways to improve its
customer satisfaction. In addition, all employees will be rigorously trained and
retrained to think about customer satisfaction in order to create a self-
sustaining company culture that revolves around this issue.
 Outstanding customer service.

 Quality wash.
 High-quality equipment (investment in long-term tangible assets).
 Easy access to facilities and good location.
 Relevant and quality other car services.

Oppurtunity
F & R will seek to compete initially in the low cost strategy. At the same time, it
will seek to provide a higher level of customer satisfaction by having more
rigorous quality control and seeking ways to enhance the entire service
experience (not just repairing a person's car). In this way it will lock in a loyal
customer base who value the client-service provider relationship.
First, the increase in the technologically advanced vehicle electronics may
prevent people from repairing their car on their own. Second, many states
have laws requiring regular emission and safety inspections, which will require
people to go to a traditional garage, even if they are regular customers to our
facility.

Threats
As stated before, the automotive repair market is very fragmented. The chief
competitors in this industry for F & R are the high quality automobile
dealerships and licensed service reps. This includes Toyota, Ford, Chrysler, and
other major brand names. Within F & R's immediate service vicinity, There is
Rodham's Toyota, Lester Ford and Woodmark's Chrysler dealerships. Each of
these direct competitors have a service facility. These competitors dominate
the market place, have the largest market share, and have advantages such as
specially trained personnel, access to lower priced parts and tools, and deep
pockets
In fact, there are so many small providers that any company in this industry is
facing a purely competitive environment. It is very difficult to create a
differentiation, or niche, strategy in this environment and until F & R is able to
establish a reputation for quality, on time, superior customer service, the
company will seek a low cost role
 Tire dealers/service centers: The major ones are, Firestone, Goodyear, and
Michelin, which have recently expanded their services to include car diagnostic
work.
 Quick lubes: They are mainly small independent stores, but the trend
is consolidation, franchises (like Jiffy Lube) and trademark licenses (like
Texaco). They are facing increasing competition from other types of outlets
whose offerings include the services they provide.  Finally, their main
competitive advantage lies in their convenience and competence, not
necessarily in low prices.
 Gas stations with service bays: They generally have fewer service bays and
lower average tickets. They are competing against quick lube stores, big chains,
general garages, and tire dealers. Their competitive advantage lies in their
better-trained technicians, customer service and fast delivery.
 Independent repair stores: These are typically a small facility run by one
owner. They face a declining market share in the favor of big chains and
franchises, primarily because they cannot retain a skilled workforce.
Commitment is their competitive advantage.
Exit Strategy

10 years

If the business is very successful, Mr. Doe may seek to sell the business to a
third party for a significant earnings multiple. Most likely, the Company will
hire a qualified business broker to sell the business on behalf of the
Automotive Repair Shop. Based on historical numbers, the business could fetch
a sales premium of up to 4 times earnings