Auto Parts and Service Company Business Plan

Auto Parts and Service Company Business Planfirst principle leave alone be participating in a gro make itg merchandise. After chinaware join in the WTO, the price of cars relieve going down. Since 2005, the price of cars has declined 10%-50% in China. It has effect one of the largest-growing markets in China.A recent survey indicates that over 20% detailories and customers have suffered the problems that the lack of political machine repair services. If we consider the whole motorcar market as a giant whose left leg is new cars or used cars market and right leg is auto- split and auto repair services market. The left leg of the giant has stepped in China. However his right leg is still out of the country. Because the auto market is increasing in such high speed, it result help the auto-parts supplies and auto repair services market grow.The OrganizationGaining the unsatisfied customers is the first mission of the organization. With this in mind, first rudiment depart be w orking dangerous and produce the impressive services that ar exceeded in customers expectations. To gain and maintain those customers, to build up close and stable relationships to customers, and to expand the market, alphabet is going to turn supplies to auto factories, including body shops, to offer auto repair services to individual customers through participation and .inviting 3-5 topical anesthetic auto supply business partners to fund a corporation by offering advanced applied science from the U.S.1.1 MissionFirstly, ABC will offer high-quality auto repair services with all kinds of auto parts. ABC will proffer its convenient and rapid service. Secondly, ABC will set up a computer system to make sure that parts be available. Lastly, ABC will build strong relationships with the local towing companies and body shops.Keys to SuccessRelitionships with local towing service companies, body shops and workshops.A wide range of auto parts inventory.Proffering website which answe r customers questions whenever they have a problem with their cars and make them be able to order auto parts on line.Rapid delivery of major auto parts.Uperior customer service, and systematic operationMore advanced technology and much technical employeesThe idea of fixing customers cars in their own gagrages is one of our main operational cencept.2.0 Company epitomeThe Chinese economic have been growing and it had resulted in the Chinese peoples increased income, since 2000. Nowadays, many Chinese have chosen to spend their funds on their automobiles in order to declare they have become the members of core class. As a result, the need for reliable and convenient auto services will increase with the help from the booming economy and the strong ideas of having own cars. ABC is going to enter Chinese market to fill up the need of the middle and upper class market for quality auto service in Qingdao.2.1 Company HistoryABC was found by several local 4S shops in Seattle 2008. Beside s the ABC has combined the successful experience of marketing, sales, management and operation, ABC also has developed its technical advantage. In 2008, due to ABC had seen the blight prox of the application of composite materials in auto repair market and the corporation in the technical communication between Boeing Company and the local community colleges and universities, the participation hired 30 employees from University of Washington and North Seattle Community College to put this technology in use for auto repair in order to improve the companys agonistical advantage. These made ABC successful and generate the net profits which have exceeded $50000 in Seattle area in this year. However, ABC realized the advanced position in the competition will not last for long. Also, considering extending its size and influence and exploring a more valuable market, ABC is going to enter Chinese market.Past feat2010gross revenue$600000Gross Margin$500000Operating Expenses$50000Balance S heet2010Current AssetsCash$200000Inventory$100000Other Current Assets$50000Total Current Assets$350000 long AssetsLong-term Assets$290000Accumulated Depreciation$10000Total Long-term Assets$300000Total Assets$650000Current LiabilitiesAccounts Payable$50000Total Current Liabilities$50000Long-term Liabilities$1300000Total Liabilities$1350000Paid-in Capital$500000 maintained Earnings$50000Total Capital$5500003.0 Services3.1 Auto servicesABC will offer superior customer services with systematic operation.3.2 Online servicesABC has a complete website where our employees will answer the questions and try to help our customers online. If the customers think they tolerate fix the problems of their cars in their own garage with the help of our employees or psyche else, these customers will be welcome to order our parts through our website. Also, ABC allows their customers make appointment online. Lastly, our customers will be able to check out the reputation of their automobiles online.3 .3 Door to door services, fix your cars in your own garagesABC will have a door to door services for rough VIP customers to slove some problems which are not necessary to come to our shops, such as oil change.4.0 Market Analysis SummaryABC highly focuses on the demand of local customers. At the kindred time, ABC also is going to establish relationships with the major local towing companies, and body shops.4.1 Market Segmentation and StategyTowing companiesAfter traffic accidents, the towing companies usually are called to take their damaged cars away. However, the companies in China dont usually give the repair service. In this way ABC can make approximate 20% revenue, if we can successfully build up the relationships with the major towing companies.The Body shopsThe young people like to go to body shops to race their cars for vary reasons. They are more believably focus on the look of their cars and usually require very quick services as well. After we establish and strengthen t he relationships with the body shops, we can create that target market segment so that we can offer the body shops the rapid delivery services and make it available to ship the designed auto parts for each individual since we have an online booking service.Local regular customersThe local regular customer base is the largest market of ABC. Based on the fact that not too many repair issues happens daily among the local customers and some owners of new cars prefer to take their cars to the dealers if there are really serious problems with their cars, ABC will also focus on the other services of automobile, such car wash, oil change, and so on.4.2 Competition and Buying PatternsThe exsiting market in China already have had 10 major auto repair and auto parts companies in the local area, so ABC will have 10 major competitiors. Nevertheless, ABC get the advantages that they dont have or not as competitive as ours. Firstly, these companies usually are not large enough, or do not have upe rior customer service and systematic operation. Secondly, none of these competitors a computerlized systerm and online service. Thirdly, none of these competitiors have the technical superiority as ours. ABCs key to win the game is gaining and remaining customers by using the technical advantage, focusing on the convenienct high level customer service, and establishing and strengtening the relationships with lacal major body shops and towing companies.5.0 Strategy and Implementation SummaryABC will be successful by offering its systematic operation by adapt the technology from the U.S.5.1 Sales StrategyABC will focus upper and middle class customers. To reach the target market and promote the customers, the company will employ direct sales staff. At the same time, the company will further strengthen its relationships with the towing companies, and body shops.5.2 PromotionMarketing StrategyDirect sale employees, online helping, door to door services, coupons will be our promotion. On the ABCs free website, our employees will answer questions and try to help our customers online. On asking question section, we will put the quick link to the booking page. These researchers will be more liable(predicate) to order our parts through our website so that they can make it in their own garage. ABC also can send our employees to help them. fuddle your car in your own garage will be one of our marketing strategies. Additionally, ABC will give coupons to customers for 10% off.5.3 Sales ForecastSales Forecast201120122013Sales$50000$150000$250000Direct Costs$10000$10000$100006.0 Management SummaryABC will be successful by trust the 3-5 local auto supply business partners experience of sales, marketing, orperation and management. In order to keep organization stable and keep all of the partners, the ABC will keep the core of the technology.6.1 Personnel PlanThank to the low average salaries in China, ABC will be able to hire more employees in the technology department in t he U.S.Personnel Plan (Not in including investiture from partners)Year 1Year 2Year 3Owners$10000$50000$90000Managers$5000$15000$25000Mechanics$4000$12000$20000 applied science improment$20000$60000$100000Sales Administrative$1000$3000$5000Total People25751257.0 Financial PlanABC will be a corporation. The funding is from 3-5 local auto supply business partners by offering advanced technology from the U.S. Each partner will invest an equal amount.7.1 Partners investment SummaryABC is looking for four local partners which meet the requrements to corporate.Each of the four partners which means to join ABC have to invest an equal amount.Table coronation from partners (Requriements)RequirementsStart-up ExpensesLegal$1000Other$5000Total Start-up Expenses$6000Start-up AssetsCash Assets$3000Other Current Assets$15000Long-term Assets$100000Total Assets$130000Total Requirements$130000(ABC will be more likely to accept partners which are able to meet those requirements.)7.3 Break-even Analy sisBreak-even AnalysisMonthly Revenue Break-even$25000