Are you about starting an auto spare parts shop? If YES, here is a complete sample auto spare parts shop business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting an auto spare parts shop. We also took it further by analyzing and drafting a sample auto spare parts shop marketing plan template backed up by actionable guerrilla marketing ideas for auto spare parts shops. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start an Auto Spare Parts Shop?
For as long as people still use automobile on our roads, the need for auto spare parts will continue to be in high demand. Auto spare parts business is no doubt 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 in search for a business to start as an entrepreneur and you know you have a penchant for the automobile industry, then you should consider starting your own auto spare parts sale business.
Even though you don’t need a college degree to establish your own auto spare parts store, but you would need some form of informal training, you might have to work as an apprentice with someone who owns an auto spare parts store. It makes it easier for you to learn the ropes and how to manage your own auto spare parts stores.
It is important to point out that auto spare parts business is one of the businesses that can’t go out of fashion and this is simply because of the role it plays in the auto industry. Depending on the scale you want to start, the startup capital for this type of business can be considered to be moderate.
As a matter of fact, you can start your own auto spare parts store and then grow it big within a short period of time by re – investing your profits back to the business. Here below is a sample auto spare parts stores business plan template that will help you successfully write yours with little or no stress;
A Sample Auto Spare Parts Shop Business Plan Template
1. Industry Overview
The auto parts stores industry includes stores / shops that retail new and used automotive parts and accessories, repair automobiles and install automotive accessories. Players in this industry can choose to operate a single store in just one location or chains of stores in several locations scattered all across the united states of America. As a matter of fact, auto stores can be found in all parts of the world as long as there are automobiles there.
IBIS World projected that the Auto Parts Stores industry is expected to grow slowly over the five years to 2016. They stated that per capita disposable income and corporate profit boosted the demand for auto parts. Furthermore, favorable car usage trends have led to growth in demand for industry products in the short term.
Nevertheless, advancements in motor vehicle technology have made it increasingly difficult for vehicle owners to repair and maintain vehicles without professional help. Going forward, the revenue generated by operators in the industry is expected to grow at the same pace as the previous period.
As the national level of per capita disposable income continues to rise, some consumers will increase their spending on maintaining and fixing their automobile hence the increase in demand for products and services from the Auto Stores industry
The Auto Parts Stores 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 43,136 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 376,102 people and the industry rakes in a whooping sum of $56 billion annually.
The industry is projected to grow at 1.9 percent annual growth within 2011 and 2016. It is important to state that Advance Auto Parts, AutoZone Inc., Genuine Parts Company, and O’Reilly Automotive Inc. have the largest chunk of the available market share in the industry.
A close observation of the Auto Parts Stores 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 start – up capital for opening an auto parts stores especially when it involves establishing a standard auto parts stores with products from various automobile companies. But if you choose to start a spare part store like the average mom and pop business, then you would not have to stress yourself because you will only need minimal start – up capital to launch the business.
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 so because an auto parts business cannot be started without sourcing products for sale. Regardless of low barriers to entry, the competitive nature of the industry make it very difficult for new operators to break even within a short period of time in the industry.
Lastly, the auto spare parts industry is pretty much open for aspiring entrepreneurs to launch their business in the industry. One good thing about auto spare parts stores business is that the business can be opened in any part of the United States and if proper market survey and href=”https://www.profitableventure.com/steps-write-feasibility-study-report/” target=”_blank” rel=”noopener noreferrer”>feasibility studies are conducted, then you can rule out profitability of the business.
2. Executive Summary
Freeway Auto Parts Stores is a standard and registered auto spares parts retail store business that will be located in one of the busiest streets in Charleston – South Carolina. We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard auto spare parts retail store that we intend launching and the facility is located around the largest residential estate in Charleston – South Carolina.
Freeway Auto Parts Stores will be involved in selling automotive parts and accessories, distributing automotive parts from different manufacturers (brands) from the United States and abroad and repairing automobiles. We are set to services a wide range of clientele in and around Charleston – South Carolina.
We are aware that there are several large and small chains of auto spare parts retail store outlets all around Charleston – South Carolina, 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 outlet is well secured with various payments of options.
Freeway Auto Parts Stores will ensure that all her customers are given first class treatment whenever they visit our auto parts retail store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.
We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions. Freeways Auto Parts Stores will at all-time 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. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Freeway Auto Parts Stores®, LLC is a family business that is owned by Jerry Herbert Godsons and his immediate family members.
Herbert Godsons has a B.Sc. in Business Administration, with well over 5 years of experience in the Auto Parts Stores industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Charleston – South Carolina, but there is a plan to open other outlets all around major cities in the United States and Canada.
3. Our Products and Services
Freeway Auto Parts Stores is in the auto parts stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of auto parts from top manufacturing brands in the United States and other countries of the world.
We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product and services offerings are listed below;
- Selling automotive parts and accessories (critical parts (new), critical parts (used), maintenance parts, accessories and performance parts)
- Distributing automotive parts
- Repairing automobiles and installing automotive accessories
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the auto parts stores industry in South Carolina and to establish a one stop auto parts retail store in Charleston – South Carolina and in other key cities in the United States of America and Canada.
- Our mission is to establish a world – class auto parts retail store business that will make available a wide range of auto parts from top auto parts manufacturing brands at affordable prices to the residence of Charleston – South Carolina and other key cities in the United States of America and Canada where we intend opening of chains of auto parts retail stores and franchise.
Our Business Structure
Freeway Auto Parts Stores does not intend to start an auto parts retail store business like the usual mom and pop business around the street corner; our intention of starting an auto parts retail store business is to build a standard and one stop auto parts retail store outlet in Charleston – South Carolina.
Although our auto parts retail store 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)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Sales Agents / Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Raises management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- In charge of providing direction for the busines
- Responsible for signing checks and documents on behalf of the company
- Appraises 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.
- Informs job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Explains job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- In authority of working out, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Supervises the smooth running of the daily office activities.
- In control of managing the daily activities in the store
- Guarantees that proper records of auto parts are kept and warehouse does not run out of products
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Brings about vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to guarantee consistent quality of auto parts from different manufacturers are purchased and retailed in good price that will ensure we make good profit
Sales and Marketing Manager
- Brings about 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
- Recognizes, arranges, and stretches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Accomplishes the organization website goals
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant / Cashier:
- Accountable 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
- Ensures 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.
- In control for cleaning all the goods and the store facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handle any other duty as assigned by the store manager.
6. SWOT Analysis
Our intention of starting just one outlet of our auto parts retail store in Charleston – South Carolina 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 open other outlets all over major towns in South Carolina and key cities in the United States and Canada.
We are quite aware that there are several auto parts retail stores all over Charleston and even in the same location where we intend locating ours, 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 welled equipped to confront our threats.
Freeway Auto Parts Stores®, 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 Freeway Auto Parts Stores®, LLC;
Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of auto parts from different manufacturing brands both from the United States and abroad and our excellent customer service culture will definitely count as a strong strength for Freeway Auto Parts Stores®, LLC. So also, our team of highly qualify staff members is also a plus for the business.
A major weakness that may count against us is the fact that we are a new auto parts retail store outlet in Charleston – South Carolina and we don’t have the financial capacity to compete with multi – million dollars’ auto parts retail store outlets like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co when it comes to retailing at a rock bottom prices for all their auto parts.
The fact that we are going to be operating our auto parts retail store close to one of the largest residential estates in Charleston – South Carolina provides us with unlimited opportunities to sell our auto parts to a large number of individuals, auto repair, services 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 when they visit our auto parts store outlets; 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 may face is economic downturn. It is a reality that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto parts retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the Auto Parts Stores 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 8. Our Target Market
Perhaps it will be safe to submit that the auto parts retail stores industry has one of the largest ranges of customers; almost every automobile owner would have one reason or the other to purchase automobile parts and accessories.
In view of that, we have positioned our auto parts retail store to service the residence of Charleston – South Carolina and every other location where franchise cum outlets of our auto parts retail stores will be located all over key cities in the United States of America and Canada.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of auto parts to the following groups of people and corporate organizations;
- Car owners
- Auto repair, maintenance and servicing garages
- Transport companies
- Haulage companies
Our competitive advantage
A close study of the auto parts retail stores 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 stiffer competition and we are well prepared to compete favorably with other leading auto parts retail stores in Charleston – South Carolina and throughout the United States and Canada.
Freeway Auto Parts Stores®, LLC is launching a standard one stop auto parts retail store that will indeed become the preferred choice of residence / automobile owners of Charleston – South Carolina and every other location where our outlets will be opened. Our auto parts retail store is located close to the largest residential estate in Charleston – South Carolina We have enough parking spaces that can accommodate well over 30 cars per time.
One thing is certain; we will ensure that we have a wide range of auto parts from leading auto parts manufacturers available in our store at all times. It will be difficult for customers to visit our auto parts retail store and not see the type of auto parts and accessories they are looking for.
One of our business goals is to make Freeway Auto Parts Stores®, LLC a one stop auto parts retail shop for automobile owners, auto repair, maintenance and servicing garages and transport companies. Our excellent customer service culture, online store, various payment options and highly secured facility 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 (startups auto parts retail stores) 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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
10. Sales Forecast
One thing is certain when it comes to auto parts retail stores, if your store is well stocked with various types of auto parts and accessories and your store is centrally positioned, 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 Charleston – South Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the auto parts retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Charleston – South Carolina.
Below are the sales projections for Freeway Auto Parts Stores®, LLC it is based on the location of our business and other factors as it relates to auto parts retail stores start – ups in the United States;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B: This projection is 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 major competitor retailing same sporting goods brands and customer care services as we do within same location. 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 Freeway Auto Parts Stores®, LLC we conduct 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 residence of Charleston – South Carolina. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the auto parts retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – South Carolina.
In other to continue to be in business and grow, we must continue to sell the auto parts and accessories that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Freeway Auto Parts Stores®, LLC will adopt the following sales and marketing approach to win customers over;
- Open our auto parts retail store in a grand style with a party for all
- Introduce our auto parts retail store by sending introductory letters alongside our brochure to organizations, households, auto repair, maintenance and servicing garages, transport companies and other key stake holders in Charleston – South Carolina
- 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 retail store
- Position our signage / flexi banners at strategic places around Charleston – South Carolina
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our auto parts retail store.
- 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
11. Publicity and Advertising Strategy
Despite the fact that our auto parts retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our auto parts retail store.
Freeway Auto Parts Stores®, LLC has a long-term plan of opening outlets in various locations all around South Carolina and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.
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 Freeway Auto Parts Stores;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Ensure that our we position our banners and billboards in strategic positions all around Charleston – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, landlord associations and auto repair, maintenance and servicing garages by calling them up and informing them of Freeway Auto Parts Stores®, LLC and the products we sell
- Advertise our auto parts retail store 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 members and management staff wears our branded shirt or cap at regular intervals.
Aside from quality, pricing is one of the key factors that gives leverage to auto parts retail stores, it is normal for consumers to go to places (auto parts retail outlets) where they can get auto parts and accessories at cheaper prices which is why big player in the auto parts stores 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 Freeway Auto Parts Store 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 Freeway Auto Parts Stores®, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- 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 client 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 to clients who may want to deposit cash or make online transfer for our products and services.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting an auto parts retail store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up 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 Freeway Auto Parts Stores®, 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 12 month at $1.76 per square feet in the total amount of $105,600.
- The cost for shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- 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) – $200,000
- 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
- The cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of five hundred thousand dollars ($500,000) to successfully set up our auto parts retail store in Charleston – South Carolina. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Freeway Auto Parts Stores®, LLC
Freeway Auto Parts Stores®, LLC is a private registered business that is solely owned and financed by Herbert Godsons and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up 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 $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Freeway Auto Parts Stores®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality auto parts and accessories a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Freeway Auto Parts Stores®, 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 re – training 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 six 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.
Check List / Milestone
- 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 shop: 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
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – manufacturers and suppliers of auto parts and accessories: In Progress