Do you want to start an auto parts export business? If YES, here is a detailed sample auto parts export business plan template & FREE feasibility report.
As long as people still use automobile on our roads, auto spare parts will continue to be in demand. Auto spare parts export business is indeed a profitable business because the replacement of damaged or worn out auto parts is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.
If you are looking for a business to start as an entrepreneur and you know you have an interest in the automobile industry, then you should consider starting your own auto spare parts export business. Although you don’t need a college degree to establish your own auto spare parts export business, but you would need some form of informal training.
A Sample Auto Parts Export Business Plan Template
Table of Content
The auto parts wholesaling industry comprises operators that export and sell automotive parts wholesale to automobile manufacturers, automotive parts retailers and auto service providers. Sales of new tires and tubes are not included.
IBISWorld projected that revenue for the Auto Parts Wholesaling industry is expected to have grown over the five years to 2019. Over the past five years, original equipment manufacturers have built and improved key partnerships with wholesalers to meet growing consumer spending and evolving consumer preferences.
Furthermore, as auto parts retailers increased sales and consumers sought auto repair services and parts replacements, wholesalers encountered rising demand for products. Overall, industry revenue is expected to have risen at an annualized rate of 1.4 percent to $195.3 billion over the five years to 2019.
This figure includes an anticipated 1.9 percent increase in 2019 alone, as demand from car and automobile manufacturers for new and innovative products continues. The Auto Parts Wholesaling industry is indeed a large industry and pretty much active in all the countries of the world.
Statistics has it that in the united states of America alone, there are about 23,275 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 238,426 people and the industry rakes in a whooping sum of $198 billion annually.
The industry is projected to grow at 0.8 percent annual growth within 2015 and 2020. It is important to state that this industry has no major players with a market share of greater than 5 percent. A close observation of the Auto Parts Wholesaling industry shows that the industry has low barriers to entry.
In the United States, the industry is subject to few restrictive regulations, and industry employees typically do not need to be trained formally to be able to carry out their duties. The truth is that, the startup capital for opening an auto parts exporting business especially when it involves establishing a standard auto parts store with products from various automobile companies is on the high side.
The tough part as it relates to start-up costs most likely are the need to establish a supply of auto parts from wholesalers or directly from auto parts manufacturing companies. This is because an auto parts exporting business cannot be started without sourcing products for sale. Regardless of low barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.
Lastly, the auto spare parts wholesaling industry is pretty much open for aspiring entrepreneurs to launch their business in the industry. One good thing about the business is that it can be opened in any part of the United States and still have customers all across Africa and South America.
Chris Moore® Auto Parts Exporting Company, LLC is a registered auto spare parts export business that will be located in in East Rutherford – New Jersey. We have been able to lease a warehouse facility that is big enough (a 5 thousand square foot facility) to fit into the kind of standard auto spare parts export business that we intend launching and the facility is located around the largest residential estate in East Rutherford – New Jersey.
Chris Moore® Auto Parts Exporting Company, LLC will be involved in exporting automotive parts and accessories, distributing automotive parts from different manufacturers (brands) from the United States and to other countries abroad.
We are aware that there are several auto spare parts export businesses all around the United States and Canada, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online – service option for our customers, and our shipping partners are highly efficient.
Chris Moore® Auto Parts Exporting Company, LLC will ensure that all our customers are given first class treatment whenever they contact us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the number of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that want us to export and also when making some business decisions.
Chris Moore® Auto Parts Exporting Company, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.
Chris Moore® Auto Parts Exporting Company, LLC is owned by Chris Moore and his immediate family members. Chris Moore has a B.Sc. in Business Administration, with well over 5 years’ experience in the Auto Parts Wholesaling industry, working for some of the leading brands in the United States.
Our Product and Services Offering
Chris Moore® Auto Parts Exporting Company, LLC is in the Auto Parts Wholesaling industry to service a wide range of clients and of course to make profits, which is why we will ensure we make available a wide range of auto parts from top manufacturing brands in the United States and other countries of the world.
Our product and services offerings are listed below;
- Exporting automotive parts and accessories (critical parts (new), critical parts (used), maintenance parts, accessories and performance parts)
Our Mission and Vision Statement
- Our vision is not just to become one of the leading brands in the Auto Parts Wholesaling industry in New Jersey, we want to also build a one stop auto spare part manufacturing company.
- Our mission is to establish a world – class auto parts export business that will export a wide range of auto parts from top auto parts manufacturing brands to dealers all across South America and Africa with Nigeria as a prime focus.
Our Business Structure
At Chris Moore® Auto Parts Exporting Company, LLC, our intention is to build a standard auto parts export company in East Rutherford – New Jersey. Although our auto parts export business might not be as big as Advance Auto Parts, AutoZone Inc., Genuine Parts Company, and O’Reilly Automotive Inc et al, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Warehouse Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Sales Agents/Customer Services Executive
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Responsible for managing the daily activities in the warehouse
- Ensures that proper records of auto parts are kept and warehouse does not run out of products
- Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Control auto parts distribution and supply chain inventory
- Supervise the workforce in the sales floor.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of auto parts from different manufacturers are purchased and exported in good price that will ensure we make good profit
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Liaise with shipping and logistic companies to facility seamless and prompt export of auto parts as ordered by clients .
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Manage the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- make suggestions and encourage purchase of products
- Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
Our intention of starting in East Rutherford – New Jersey and exporting auto parts to just a handful of countries is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then export to several countries all across the South America and Africa.
We are quite aware that there are several auto parts export companies all over the United States of America, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Chris Moore® Auto Parts Exporting Company, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Chris Moore® Auto Parts Exporting Company, LLC;
Our location, the business model we will be operating on both (physical and online store platform that people can order spare parts from), varieties of payment options, wide range of auto parts from different manufacturing brands both from the United States and abroad and our excellent shipping and customer service culture will definitely count as a strong strength for Chris Moore® Auto Parts Exporting Company, LLC.
A major weakness that may count against us is the fact that we are a new auto parts export company in East Rutherford – New Jersey and we don’t have the financial capacity to compete with multi – million dollars’ auto parts export companies like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co when it comes to exporting and retailing at a rock bottom prices.
The fact that we are going to be partnering with some of the leading auto parts dealers in Nigeria and Brazil provides us with unlimited opportunities to sell our auto parts to a large number of individuals, auto part stores and of course auto repair, service and maintenance garages and transport companies.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for and we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is instability in the freight forwarding / shipping industry. So also, unfavorable government policies may also pose a threat for businesses such as ours.
- Market Trends
If you are conversant with the Auto Parts Wholesaling industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever – changing trends are major growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the industry.
So also, the rising demand for parts manufactured by a third-party manufacturing company, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as auto retail stores keep prices low to attract more sales amid growing competition.
As part of marketing strategies, auto parts export companies engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old ones.
Our Target Market
Perhaps it will be safe to submit that the auto parts wholesaling industry has one of the largest range of customers; almost every automobile owner have one reason or the other to purchase automobile parts and accessories. We are in business to export a wide range of auto parts to the following groups of people and businesses;
- Auto parts dealers and stores in Africa and South America
- Car owners in Africa and South America
- Auto repair, maintenance and servicing garages in Africa and South America
- Transport companies in Africa and South America
- Haulage companies in Africa and South America
A close study of the auto parts wholesaling industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading auto parts export companies in East Rutherford – New Jersey and throughout the United States.
Chris Moore® Auto Parts Exporting Company, LLC is launching a standard auto parts export company that will indeed become the preferred choice of dealers in Africa and South America. Our auto parts export company is located close to the largest auto parts manufacturing company in East Rutherford – New Jersey.
One thing is certain; we will ensure that we have a wide range of auto parts from leading auto parts manufacturers available in our warehouse at all times. It will be difficult for customers to visit our auto parts store and not see the type of auto parts and accessories they are looking for.
One of our business goals is to make Chris Moore® Auto Parts Exporting Company, LLC a one stop auto parts export company for auto parts dealers, automobile owners, auto repair, maintenance and servicing garages and transport companies in South America and Africa. Our excellent customer service culture, online store, various payment options and highly reliable shipping platform will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY
- Sources of Income
Chris Moore® Auto Parts Exporting Company, LLC is in business to export a wide range of auto parts to South America and Africa. We are in the industry to maximize profits and we are going to go ensure that we achieve our business goals and objectives.
In essence, Chris Moore® Auto Parts Exporting Company, LLC will generate income by offering the following products and services;
- Exporting automotive parts and accessories (critical parts (new), critical parts (used), maintenance parts, accessories and performance parts)
One thing is certain when it comes to auto parts export companies, if your warehouse is stocked with various types of auto parts and accessories and you have affordable and reliable shipping arrangement, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in South America and Africa and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the auto parts export market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Chris Moore® Auto Parts Exporting Company, LLC it is based on the location of our business and other factors as it relates to auto parts export companies startups in the United States;
- First Fiscal Year (FY1): $950,000
- Second Fiscal Year (FY2): $1.8 million
- Third Fiscal Year (FY3): $3.5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any sudden changes in the United States’ exporting policies as it relates to countries in South America and Africa. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Chris Moore® Auto Parts Exporting Company, LLC to start exporting auto parts, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for auto part dealers. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want.
We hired experts who have good understanding of the auto parts export markets to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Africa and South America.
In summary, Chris Moore® Auto Parts Exporting Company, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our auto parts export company by sending introductory letters alongside our brochure to organizations, auto parts dealers, households, auto repair, maintenance and servicing garages, transport companies and other key stake holders all across South America and Africa
- Ensure that we have a wide range of auto parts and accessories from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our auto parts export company
- Position our signage / flexi banners at strategic places around East Rutherford – New Jersey
- Create a loyalty plan that will enable us reward our regular customers
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
- Join local chambers of commerce and industries to network and market our products
Publicity and Advertising Strategy
Despite the fact that our auto parts export company is well located, we will still go ahead to intensify publicity for the business. Chris Moore® Auto Parts Exporting Company, LLC has a long-term plan of exporting auto parts all across the world which is why we will deliberately build our brand.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Chris Moore® Auto Parts Exporting Company, LLC;
- Place adverts on community – based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around East Rutherford – New Jersey
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our auto parts export business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff wear our branded shirt or cap at regular intervals.
Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to auto parts export companies, it is normal for consumers to go to places where they can get auto parts and accessories at cheaper prices which is why big players in the industry like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co but we will ensure that the prices and quality of all the auto parts and accessories that are available in our store are competitive with what is obtainable amongst auto parts stores within our level.
- Payment Options
The payment policy adopted by Chris Moore® Auto Parts Exporting Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Chris Moore® Auto Parts Exporting Company, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of auto parts and accessories without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Chris Moore® Auto Parts Exporting Company, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for a warehouse for 12 months at $1.76 per square feet in the total amount of $205,600.
- The cost for warehouse remodeling (construction of racks and shelves) – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($12,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (stocking with a wide range of auto parts and accessories from different manufacturing brands) – $500,000
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Miscellaneous: $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our auto parts export company in East Rutherford – New Jersey.
Generating Funds/Startup Capital for Chris Moore® Auto Parts Exporting Company, LLC
Chris Moore® Auto Parts Exporting Company, LLC is a private registered business that is solely owned and financed by Chris Moore and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Chris Moore® Auto Parts Exporting Company, LLC is to ensure that we continue to make available a wide range of auto parts, deliver quality services, improvise on how to do things faster and cheaper when it comes to shipping and logistics. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Chris Moore® Auto Parts Exporting Company, LLC adopt the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.
Chris Moore® Auto Parts Exporting Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the warehouse facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of products that will be available in our warehouse and online store: Completed
- Establishing business relationship with vendors – manufacturers and suppliers of auto parts and accessories: In Progress