Business Plan {(ROUGH DRAFT)}

ProDetail

ProDetail

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Hello once again everyone, I'm almost done the rough draft of my business plan and I want to know what people think. I have not included my figures because I'm still tallying those up and those are hard numbers, what you'll be reading is from the Executive Summary to the Start-up Summary. Feed back please

The ______ is were I am having trouble to finish so any help there is greatly appeciated. Thanks

Executive Summary
Pro Auto Detailing is set to be a prominent auto detailing and paint re-conditioning serving the North Andover and surrounding communities. Pro Auto Detailing will be run by William Castro.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

The Business
Pro Auto Detailing will be providing customers with 5 different services: exterior cleaning and care, interior cleaning, key scratch repair, and headlight restoration, and motorcycle detailing. In addition to my services, I’ll also have 4 sub contracted services offered at my shop: Paintless Dent Removal, Window Tinting, and Audio Installation & Remote Starter Installation. Pro Auto Detailing has no true competitors that are trying to offer a high quality service for a reasonable rate. Most are trying to compete on price alone. Pro Auto Detailing ability to provide a high quality service, both in regards to the actual washing as well as customer service is not only based on William Castro’s workmanship and his relation to his customers, but also in his ability to find the best employees. Hiring the best employees not only guarantees continued customer gratification but also is cost effective because it decreases costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers.

The Customers
Pro Auto Detailing will target three main groups of customers: individual car owner and leasers, car dealerships, and local businesses. North Andover and the 3 neighboring towns are quite affluent, In our main service area of North Andover 44% of the residents earn over $70,000 a year, but in the surrounding towns of Andover 65% of the residents earn over $70,000 a year, and in Methuen 46% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice.
There are several dealerships in the surrounding area that could benefit from Pro Auto Detailing’ services such as auto detailing, headlight restoration, and scratch repair.

Management
The strength of William’s experience in detailing and marketing the detailing aspect to the community will give Pro Auto Detailing the competitive edge not offered by the surrounding detail companies. William has been involved in the auto and motorcycle detailing business for over 9 years honing the skills required to provide the utmost quality in auto detailing that customers demand. He has worked his way through the industry working for other detailers both companies and single man operations, while also trying new techniques and products/tools on not only his vehicles but those of friends and families while setting higher standards for himself to ensure the best quality of work.
Pro Auto Detailing is positioning itself as the premier auto detailer in North Andover and the Merrimac Valley. William has forecasted a 30% market share. The business will generate a very high gross margin and a modest net margin after year one and very comfortable margin after year three. By year three and four the business will have developed a respectable yearly net profit.

1.1 Objectives
The objectives for Pro Auto Detailing are:
1. To be viewed as the premier auto detailer in the Merrimac Valley.
2. Maintain a very high gross profit margin.
3. Maintain a modest, steadily growing net profit margin.
4. Open an Auto Detailing store where customers can buy the products and equipment that we use along with those of other manufacturers after year two.
5. Expand to a second possible location in Amesbury after forth year of operation.
1.2 Mission
The mission of Pro Auto Detailing is to provide top-quality washing and detail service for all types of car owners economic to luxury to super sports cars in the Merrimac Valley. Pro Auto Detailing will also work to keep employees satisfied in order to maintain impeccable customer service.
Company Summary
The company is solely owned by William Castro and will be funded by an initial personal investment, grants, and start up loan. Pro Auto Detailing will be a licensed Limited Liability Company.

2.1 Company Ownership
The company will be solely owned by William Castro. William has been in the car industry for most of his life, having grown up in the family car repair business and working with the people and companies to date that have showed him the ins and outs of the industry. He came across the location in North Andover purely by accident and has felt it would be a perfect location for a the detailing shop along with the attached storefront for the future Auto Detailing Store.

2.2 Start-up Summary
The start-up expenses for Pro Auto Detailing will be financed by Grants if approved by the SBA and start-up loans if approved by local banks. The property on 21 Main St will be leased in September 2012 for a minimum of three years, with the option to buy the property from Downer Brothers Landscaping Inc after the initial three year lease.
William is working with the Tresforce Group to set up incorporation and to discuss lease issues before the business is launched. He has worked for the past year developing his own logo, pricing, letterhead, and company brochures while working with a local graphic designer to design a sign that is both informative and eye catching so as to maximize street advertisement. Although William has been in the Auto Detailing industry for several years he is working with two other detailing businesses in Hookset, NH and Billerica, MA to ensure the system in place is a system that will maximize profit, growth, customer and employee satisfaction even during peak business.

Rent on the location has been negotiated and will be $1,200 per month. In addition, insurance for the business will be approximately $200 per month and will be paid by direct debit on a monthly basis which covers $1,000,000 Coverage with a $30,000 garage keeper. Expensed equipment includes one high volume air compressor, one 6,500lb low rise scissor lift, two gas powered pressure washers, two industrial vacuum cleaners, 2 hot water extractors, and 1 high powered vapor steam cleaner, two computer terminals, and one cash register. All of the equipment will be depreciated over three years.
The location was previously used as a storage facility for Downer Brothers Landscaping Inc, so it is going to have to be set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a detail facility. William will with the help of the start-up loan and the advice from the two detailing companies acquire the machinery and equipment necessary to maximize the efficiency of the space at hand.

Again any advice is greatly appreciated, thanks once again.
 
Finish off the ___ section as if you were talking to an investor.

For "the business" section, talk about the market opportunities relative to the detailing profession.

Add a section that talks about how you will develop your client base and generate revenue.

Excellent start thus far!!!!
 
Thank you mwoolfso... I was hoping to have more feedback on this, guess not.
 
Might be a little off topic but what is the scissor lift going to be used for?
 
Pro Auto Detailing will be providing customers with 5 different services: exterior cleaning and care, interior cleaning, key scratch repair, and headlight restoration, and motorcycle detailing.

should read Pro Auto Detailing will provide customers with 5 different services: exterior cleaning and care, interior cleaning, key scratch repair, headlight restoration, and motorcycle detailing.

there are some other grammatical errors as well. Not that I'm some grammar freak, but if you are going to present this to someone (an investor), I would fix the errors.

For all I know this is a rough draft so I'm not going to list the other mistakes. not trying to come off as a douche.. :)
 
@ A.P.A.D. - right on the money! I'm going to assume you have one?

@ jhallhall - it's a big time saver, it can take up to 20/30 min to jack up a car and properly put it up on jack sometimes longer. In the last shop i worked in my buddy had one and it took no more than a minute. Same amount taking it down totals almost an hour.

@ DEXTERITY - thank you I'll change that as soon as I get home. Any constructive criticism is only to help I won't think you're being anything but helpful.
 
Instead of doing the items in sentences. Try using bullets. The plan will be professional looking. Areas were bullets can be used is the services that you offer, the subcontracted service. The use of "and" can cause the reader to stop reading. If you want you can pm and I will give you an email address to send the plan in a word document so I can assist in editing it for you.

Ed
 
Ive been working on my business and marketing plan for months...It sucks getting stuck on one sentence. Have you thought of adding a "Values Statement" outlining the core values of the company?
 
I would consider reducing your lease terms, just to protect yourself. You may want to do a two year lease with an option for the third year.

How many competitors do you have in your area? What is their pricing? How does it compare to yours?? Also, what kind of promotions will you do to kick start the customer based? Maybe a percentage off a service to start?

Good luck, it looks like you are off to a decent start.
 
Finished Business Plan Without Figures/Projections

Executive Summary
Pro Auto Detailing is set to be a prominent auto detailing and paint re-conditioning serving the North Andover and surrounding communities. Pro Auto Detailing will be run by William Castro.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

The Business
Pro Auto Detailing will provide customers with 5 different services: exterior cleaning and care, interior cleaning, key scratch repair, and headlight restoration, and motorcycle detailing. In addition to my services, I’ll also have 4 sub contracted services offered at my shop: Paintless Dent Removal, Window Tinting, and Audio Installation & Remote Starter Installation. Pro Auto Detailing has no true competitors that are trying to offer a high quality service for a reasonable rate. Most are trying to compete on price alone. Pro Auto Detailing ability to provide a high quality service, both in regards to the actual washing as well as customer service is not only based on William Castro’s workmanship and his relation to his customers, but also in his ability to find the best employees. Hiring the best employees not only guarantees continued customer gratification but also is cost effective because it decreases costs associated with turnover and other employee costs. Hiring the best employees and making sure that they are well taken care of ensures that they in turn take care of the customers.

The Customers
Pro Auto Detailing will target three main groups of customers: individual car owner and leasers, car dealerships, and local businesses. North Andover and the 3 neighboring towns are quite affluent, In our main service area of North Andover 44% of the residents earn over $70,000 a year, but in the surrounding towns of Andover 65% of the residents earn over $70,000 a year, and in Methuen 46% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice.
There are several dealerships in the surrounding area that could benefit from Pro Auto Detailing’ services such as auto detailing, headlight restoration, and scratch repair.

Management
The strength of William’s experience in detailing and marketing the detailing aspect to the community will give Pro Auto Detailing the competitive edge not offered by the surrounding detail companies. William has been involved in the auto and motorcycle detailing business for over 9 years honing the skills required to provide the utmost quality in auto detailing that customer’s demand. He has worked his way through the industry working for other detailers both companies and single man operations, while also trying new techniques and products/tools on not only his vehicles but those of friends and families while setting higher standards for himself to ensure the best quality of work.
Pro Auto Detailing is positioning itself as the premier auto detailer in North Andover and the Merrimac Valley. William has forecasted a 30% market share. The business will generate a very high gross margin and a modest net margin after year one and very comfortable margin after year three. By year three and four the business will have developed a respectable yearly net profit.

1.1 Objectives
The objectives for Pro Auto Detailing are:
1. To be viewed as the premier auto detailer in the Merrimac Valley.
2. Maintain a very high gross profit margin.
3. Maintain a modest, steadily growing net profit margin.
4. Open an Auto Detailing store where customers can buy the products and equipment that we use along with those of other manufacturers after year two.
5. Expand to a second possible location in Amesbury after fourth year of operation.

1.2 Mission
The mission of Pro Auto Detailing is to provide top-quality washing and detail service for all types of car owners economic to luxury to super sports cars in the Merrimac Valley. Pro Auto Detailing will also work to keep employees satisfied in order to maintain impeccable customer service.
Company Summary
The company is solely owned by William Castro and will be funded by an initial personal investment, grants, and start up loan. Pro Auto Detailing will be a licensed Limited Liability Company.

2.1 Company Ownership
The company will be solely owned by William Castro. William has been in the car industry for most of his life, having grown up in the family car repair business and working with the people and companies to date that have showed him the ins and outs of the industry. He came across the location in North Andover purely by accident and has felt it would be a perfect location for the detailing shop along with the attached storefront for the future Auto Detailing Store.

2.2 Start-up Summary
The start-up expenses for Pro Auto Detailing will be financed by Grants if approved by the SBA and start-up loans if approved by local banks. The property on 21 Main St will be leased in September 2012 for a minimum of three years, with the option to buy the property from Downer Brothers Landscaping Inc after the initial three year lease.
William is working with the Tresforce Group to set up incorporation and to discuss lease issues before the business is launched. He has worked for the past year developing his own logo, pricing, letterhead, and company brochures while working with a local graphic designer to design a sign that is both informative and eye catching so as to maximize street advertisement. Although William has been in the Auto Detailing industry for several years he is working with two other detailing businesses in other service areas to ensure the system in place is a system that will maximize profit, growth, customer and employee satisfaction even during peak business.

Rent on the location has been negotiated and will be $1,500 per month. In addition, insurance for the business will be approximately $200 per month and will be paid by direct debit on a monthly basis which covers $1,000,000 Coverage with a $30,000 garage keeper. Expensed equipment includes one high volume air compressor, one 6,500lb low rise scissor lift, two gas powered pressure washers, two industrial vacuum cleaners, 2 hot water extractors, and 1 high powered vapor steam cleaner, two computer terminals, and one cash register. All of the equipment will be depreciated over three years.
The location was previously used as a storage facility for Downer Brothers Landscaping Inc, so it is going to have to be set up to move vehicles quickly through the premises, but does not have all the necessary systems in place to host a detail facility. William will with the help of the start-up loan and the advice from the two detailing companies acquire the machinery and equipment necessary to maximize the efficiency of the space at hand.

Market Analysis Summary
Pro Auto Detailing will be based in North Andover, Massachusetts. This area has a number of benefits in terms of the market that it will provide for the business. Over 40% of households in the immediate area earn over $60,000 annually. Many people in the town own and/or lease new cars and place great value on their cars and how they look. There are a number of car dealerships in the area--five within three miles of the proposed location for Pro Auto Detailing.

4.1 Market Segmentation
Pro Auto Detailing segments its customers by type of car ownership. We believe that the type of car that a person owns says volumes about their driving, and, therefore their car washing and detailing requirements.

1. New car owners: Owners of newer cars are most likely to use a hand car washing service. These owners take great pride in their cars and will bring them often to the wash and detail service. The goal with these customers is to promote regular use of the wash and detail service. The aim is to inform these customers that Pro Auto Detailing will keep their car looking as good as it did the day they drove it off the lot.

2. Older luxury car owners: These people have either owned their high-end luxury cars for several years or are unable to afford the expense of a new luxury car but want the feel of relaxed driving. Both of these groups want to keep their cars in the best shape possible. Those who have bought second-hand cars will often spend many hours in their cars and will place high importance on keeping their cars looking good. These owners will bring their cars in for regular washes along with details to keep the pristine condition of their cars.

3. Sports car owners: These people are often younger or middle-aged men and will regard the look of their car as important. They will also pride themselves on the look of their car and will have their car hand washed (at least) weekly. Along with the weekly washes sports car owners bring their vehicles to have them waxed and polished, but will keep their cars so clean the detail will not be necessary very often. These people also fall into the PDR and window tinting services that will be offered on location.

4. Lifetime owners: Many of these people have owned their cars for more than five or six years, and are more likely to be women. They are attached to their cars as friends and though it may be more sensible for them to purchase a new car, they will bring their car in for a wash occasionally, just when the car is dirty. They like their cars to look presentable, and want to keep it in good shape but are not tied up in the look of their car. For this reason, they will not have a detail carried out on their car unless they are selling it.

5. Dealerships: There are fifteen new and used car dealerships within three miles of the proposed location of Pro Auto Detailing. Several of these dealerships do have their own washing and detailing facilities on site, but 8 of them do not and rely on local quick detailers to clean their vehicle. These small dealerships often are forced to sell their vehicles at lower prices due to fogged headlights, scratches, and small dents on their vehicle, if there is a large enough profit margin to be had, these same dealerships may be willing to use Pro Auto Detailing to repair these blemishes in “all in one” drop-offs providing a steady flow of work contributing to Pro Auto Detailing profit margin.

6. Local businesses: Some local businesses have fleets of cars and small vans that must be kept clean to maintain their company image. These businesses will be looking for a cost effective, efficient car washing service to perform this service, and will prefer to use a car wash service during the week rather than during weekends, like the general public.

4.2 Target Market Segment Strategy
The strategy behind Pro Auto Detailing target segmentation is to attract customers who will be repeat users and will frequent the business in the typically quiet times for a car wash business. It will not be difficult to attract customers during the summer months and on the weekends, the weekdays however, especially in the winter, people will be more reserved about having their cars detailed. For this reason, Pro Auto Detailing will target people who are afraid that prolonged exposure to the volatile environment conditions and subsequent road salt will damage the finish on the outside as well as inside of their vehicles.
• Business owners (new car owners) tend to be very busy people, but are often able to make their own hours.
• Retired people (older luxury car owners) are not restricted by typical work schedules so will be able to frequent the car wash during the week.
• Dealerships will need cars detailed and washed regardless of the time of the day and week. This will supply a constant flow of traffic especially in the winter were there vehicles will need to look good regardless of the current weather conditions.
• Businesses will also need their fleet cars washed during the week during regular business hours.

4.3 Service Business Analysis
The hand car washing business in the Merrimac Valley consists of many small competitors. Everything from the bigger local dealerships drawing in customers to have their vehicle detailed just to get them to buy a new car to the local Haffners gas stations automatic car wash and express detailing in the neighboring towns to the 3 automatic car washes in North Andover, are competition for Pro Auto Detailing. However, these two alternatives aim to meet the needs of the price-conscious individuals who are choosing the service simply so they do not have to clean the car themselves. Pro Auto Detailing on the other hand, targets the quality-conscious individuals who value their car enough to spend $25-30 per week to make it look good.

4.3.1 Competition and Buying Patterns
There are no other full service detail shops in North Andover but there are three other express detail shops, two are quite new and are mainly trying to compete with each other by offering lower prices. However, it is not targeting the customers who seek quality, undamaging cleaning.
The customers who Pro Auto Detailing is targeting have their cars washed based on the quality of the job. They do not mind spending a little more each week to have their car washed and waxed in order to keep the paint work in excellent shape. The businesses that Pro Auto Detailing targets will be more cost conscious, so prices will be approximately 20% less for these customers to promote volume usage.

Strategy and Implementation Summary
The key differentiator for Pro Auto Detailing is William Castro and his business and personal connections with other local businesses and successful detailers in different service areas who are offering advice and mentoring how to keep a business successful in a and thriving during a recession . For this reason, the sales and marketing focus will be hit on several fronts. For the grand opening ads will be taken out in the two local newspapers followed by several mailings through the United States Postal Services new program called “Every Door Direct Mail” with the goal of spreading the word through the area as fast as possible to maximize the potential of getting the customers the will benefit from what Pro Auto Detail, once customers are in, William will meet with each customer on a one to one basis with the emphasis on gaining loyal and repeat customers as "friends" of the business. Pro Auto Detailing, therefore, will also come to depend on word-of-mouth advertising from the immediate community.

5.1 Competitive Edge
Pro Auto Detailing competitive edge will be William and the quality of the work he strives for on a daily basis. As mentioned, William has been involved in the auto and motorcycle detailing business for over 9 years honing the skills required to provide the utmost quality in auto detailing that customers demand and has an excellent reputation with a myriad of both businesses and personal contacts. In addition, William has put a great deal of emphasis on creating a system that is both fast and efficient while keeping quality of work to as near a perfect level as possible, which will keep costs, in terms of time spent per car, to a minimum and customer retention to a maximum.

5.2 Sales Strategy
Sales strategy will be as mentioned before through the newspaper, US Postal Service, but a one-to-one basis with each customer will make them feel they are a valued friend of Pro Auto Detailing, and that all employees care about the care and upkeep of each vehicle. We must be aware that there are low switching costs in the car detailing industry, so we have to work hard to develop and keep repeat customers.

5.2.1 Sales Forecast
The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in the winter. However, we will aim to flatten sales across the sales cycle by targeting segments that will want to keep their cars clean and looking good year round.

Feed back please
 
Updated Executive Summary:


Executive Summary[B/]
Pro Auto Detailing is set to be a prominent auto detailing and paint re-conditioning serving the North Andover and surrounding communities. Pro Auto Detailing will be run by William Castro. William is building the business to be the one stop shop for all auto cosmetic needs. From the basic maintenance details to ensure that customers vehicles are at their best to Paintless dent removal and headlight restoration to attract dealerships and long term car owners to window tinting and audio installation for those that want to stand out from the crowd. Regardless of what it is Pro Auto Detailing will be the number one choice for those hot ticket items.
 
ProDetail said:
@ A.P.A.D. - right on the money! I'm going to assume you have one?
Click to expand...


i do not, but i was looking into getting a low rise "portable" one. dont think clientele around here will make it worth the investment. mostly for my own personal use in removing and cleaning the wheels on my vehicles. if i did eventually spend the $1100+ on one i would really push for this service though.

good luck with the business. remember: quality work and word of mouth is the best business booster out there! :dblthumb2:
 
@arack - there is only one other business in the area like mine but he's "old school" doesn't do much work that even some of the "rookies" lol do here. Thanks to guys like Mike that show us in detail new techniques new tools and new products. For the other detailers in the area, they are all what I like to call express detailers. They want there guys to get there customers in and out as fast as possible often times hurting quality. Then there's the automatics that just do so much damage.

@A.P.A.D- I have actually been doing well with the scissor lift do to our weather conditions. The salt alone will eat out the undercarriage so by simply offering them this option and telling and showing them the consequences of what neglect can do most get it done in the spring time when they have the full details done. But your in NC so you don't really witness too much snow.
It's also a back saver on low clearance cars like Ferrari, Lambos, etc... brings the car up to your level and I find that I work alot faster when things are my level lol.
 
ProDetail said:
@A.P.A.D- I have actually been doing well with the scissor lift do to our weather conditions. The salt alone will eat out the undercarriage so by simply offering them this option and telling and showing them the consequences of what neglect can do most get it done in the spring time when they have the full details done. But your in NC so you don't really witness too much snow.
It's also a back saver on low clearance cars like Ferrari, Lambos, etc... brings the car up to your level and I find that I work alot faster when things are my level lol.
Click to expand...

true...we dont get much snow, but if they breathe a word of it, they dump so much salt on the roads it pisses me off lol

good point about bringing lower cars up to your level as well :props:
 
Great start, but would suggest you stick with the same tense. For example, would say Pro Auto Detailing provides.... instead of Pro Auto Detailing will provide....
and, personalize it with "I will be working with.... instead of William will be working with....

Eliminate any information that is not pertinent to your goal which is to get someone to loan you money. The lender may not care about some information such as the previous tenants of your location, etc. The shorter and more to the point your plan is, the more likely to be read completely.
Just sayin-
ray6
 
Are you guys applying for business loans or something? Because I started my business over a year ago with no official business plan. Just an excel sheet with a break down and assumptions of profits and business. Just curious.
 
Unfortunately the information in the business plan is relevant, sure you want to keep it short and sweet but they want to know 110% that you know what your talking about,

I've already been before one bank and when I tell you the lender read everything I mean I say there for almost twenty minutes then he grilled me on just about everything from the products I will be using, to how I will guarantee repeat customers, to how I plan to grow in the next 5 years. They don't play around.

Thankfully we have great forum members who helped me put this together the right way, specially Eandras:dblthumb2: who read my entire business plan and got it to were it needed to be TWICE lol. I'd still be scratching my head as to what's next lol.

@ Jr, yes I'm going for business loans.
 
JLC said:
Ive been working on my business and marketing plan for months...It sucks getting stuck on one sentence. Have you thought of adding a "Values Statement" outlining the core values of the company?
Click to expand...

ProDetail said:
Unfortunately the information in the business plan is relevant, sure you want to keep it short and sweet but they want to know 110% that you know what your talking about,

I've already been before one bank and when I tell you the lender read everything I mean I say there for almost twenty minutes then he grilled me on just about everything from the products I will be using, to how I will guarantee repeat customers, to how I plan to grow in the next 5 years. They don't play around.

Thankfully we have great forum members who helped me put this together the right way, specially Eandras:dblthumb2: who read my entire business plan and got it to were it needed to be TWICE lol. I'd still be scratching my head as to what's next lol.

@ Jr, yes I'm going for business loans.
Click to expand...

I have done numerous business plans. If you are applying for loan and grants you need a very detailed one. Grants can come from the SBA, The Federal Government, and Private Foundations.

The people that will be backing younwant to make sure that you are not a high risk on paper. You also need to be able to back up your statements. I saw one comment we're the person mentioned why tell them the previous tenant. It is pertinent as you need to let the backers know you did your research and to also make sure that the a EPA cleanup is not required.

William did a Great job in the basic. Cleaning up will make a difference. William you are most welcome. Did you look at my comments and changes?

Ed
 
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