Auto Parts and Service Company Business Plan

Auto Parts and emolument ac conjunction Business Planfirst principle depart be move in a growing market. After chinaware join in the WTO, the price of railroad cars keep leaving down. Since 2005, the price of cars has declined 10%-50% in China. It has give way one of the greatheartedst-growing markets in China.A recent survey indicates that over 20% factories and clients arrest suffered the problems that the lack of auto lay out operate. If we consider the whole auto market as a giant whose left leg is sensitive cars or used cars market and remedy leg is auto-separate and auto darn operate market. The left leg of the giant has stepped in China. However his right leg is still out of the coun subdue. Because the auto market is increasing in such high speed, it allow help the auto-parts supplies and auto right serve market grow.The OrganizationGaining the unsatisfied customers is the first mission of the organization. With this in mind, rudiment volition be workin g hard and produce the impressive services that argon exceeded in customers expectations. To gain and maintain those customers, to build up block and perpetual relationships to customers, and to expand the market, first rudiment is going to offer supplies to auto factories, including consistence shops, to offer auto mending services to item-by-item customers through federation and .inviting 3-5 topical anesthetic auto leave business partners to fund a flock by offering advanced technology from the U.S.1.1 MissionFirstly, ABC lead offer high-quality auto repair services with all kinds of auto parts. ABC provide proffer its convenient and rapid service. Secondly, ABC go out set up a computer system to find sure that parts atomic number 18 avail equal to(p). Lastly, ABC will build strong relationships with the local towing companies and organic structure shops.Keys to SuccessRelitionships with local towing service companies, body shops and workshops.A wide throw up o f auto parts inventory.Proffering website which answer customers psyches whenever they have a problem with their cars and begin them be able to vow auto parts on line. quick delivery of major auto parts.Uperior customer service, and authoritative operation more advanced technology and more technical employeesThe idea of geting customers cars in their own gagrages is one of our main operational cencept.2.0 Company SummaryThe Chinese economic have been growing and it had resulted in the Chinese peoples emergenced income, since 2000. Nowadays, umpteen Chinese have chosen to spend their money on their automobiles in order to declare they have become the members of warmness 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 pep pill class market for quality auto service in Qingdao.2.1 Company HistoryABC was found by several local 4S shops in Seattle 2008. Besides the ABC has combined the thriving experience of marketing, sales agreements, steering and operation, ABC also has developed its technical advantage. In 2008, due to ABC had seen the blight future 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 come with hired 30 employees from University of Washington and northerly Seattle Community College to put this technology in use for auto repair in order to improve the companys competitive 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 non last for long. Also, considering extending its size and influence and exploring a more invaluable market, ABC is going to enter Chinese market. Past Performance2010 sales$600000Gross Margin$500000Operating Expenses$50000Balance Sheet2010Current Assets specie$200000Inventory$100000Other Current Assets$50000 hit Current Assets$350000semipermanent AssetsLong-term Assets$290000Accumulated Depreciation$10000 quantity Long-term Assets$300000 jibe Assets$650000Current LiabilitiesAccounts Payable$50000Total Current Liabilities$50000Long-term Liabilities$1300000Total Liabilities$1350000Paid-in uppercase$500000Retained Earnings$50000Total Capital$5500003.0 Services3.1 Auto servicesABC will offer superior customer services with taxonomic operation.3.2 Online servicesABC has a giving website where our employees will answer the questions and try to help our customers online. If the customers think they loafer fix the problems of their cars in their own garage with the help of our employees or somebody else, these customers will be welcome to order our parts through our website. Also, ABC allows their customers make appointment onlin e. Lastly, our customers will be able to check out the record of their automobiles online.3.3 Door to doorstep services, fix your cars in your own garagesABC will have a door to door services for some VIP customers to slove some problems which are non necessary to come to our shops, such as oil change.4.0 Market compend SummaryABC highly focuses on the demand of local customers. At the same 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 schoolboyish people like to go to body shops to race their cars for vary reasons. They are more likely focus on the look of t heir cars and usually contain very quick services as well. After we establish and settle the relationships with the body shops, we can reach 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 in like manner many repair issues happens daily among the local customers and some owners of new cars pick 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 uperior 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 utilise 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 set 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 likely to order our parts through our website so that they can make it in their own garage. ABC also can dismount our employees to help them. Fix 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 be$10000$10000$100006.0 Management SummaryABC will be successful by combining 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 military group PlanThank to the low a verage salaries in China, ABC will be able to hire more employees in the technology department in the U.S.Personnel Plan (Not in including consecratement from partners)Year 1Year 2Year 3Owners$10000$50000$90000Managers$5000$15000$25000Mechanics$4000$12000$20000 engineering 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 institutionalise 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 Investment from partners (Requriements)RequirementsStart-up ExpensesLegal$1000Other$5000Total Start-up Expenses$6000Start-up AssetsCash Assets$3000Other Current Assets$15000Long-term Assets$100000Total Assets$130000Total Requireme nts$130000(ABC will be more likely to accept partners which are able to meet those requirements.)7.3 Break-even AnalysisBreak-even AnalysisMonthly Revenue Break-even$25000