Are you about starting a car modification company? If YES, here is a complete sample car customization business plan template & feasibility report you can use for FREE.
A car customization and modification business could be a fun and profitable business for someone who is interested in the automobile industry. With the right location, top-notch services and good marketing, you can serve several customers that require the interior and exterior of their automobiles to be customized to fit into their style or the brand they represent.
Please note that starting a car customization and modification business also needs a significant investment capital, solid planning and concentration to detail in order to keep your business profitable. Below is a sample car customization and modification business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Car Customization & Modification Business Plan Template
1. Industry Overview
In the united states of America and even all over the world, the car customization and modification line of business accommodates highly skilled auto mechanics who have what it takes to give their customers far beyond what they are expecting; it is indeed a highly creative industry.
Car customization and modification garages engage in customizing and modifying cars by altering some parts or the whole car to improve its performance, often they alter or replace the engine and transmission and also they work on the body and sound system.
A customized car may be a personal “styling” statement, making the car look unlike any car delivered from the factory. A car customization and modification engineer may adopt the visual and performance characteristics of some relevant modification styles, and combine these as requested by the client.
The car customization and modification business is indeed a growing and profitable business. Statistics has it that household customers account for the largest share of car customization and modification revenue at approximately 76 percent.
Car customization and modification household customers are broadly defined as consumers that have a driver’s license, own a car, and are older than 16 years of age. This demographic is further segmented by income brackets, with households in the highest division representing the greatest demand for car customization and modification services.
Business customers contribute 22% of industry revenue. Revenue from this segment is largely derived from celebrity managers. Slower economic activity during the recession led to fewer businesses using vehicles to conduct shows, however a resumption of economic growth since 2010, has seen this segment strengthen.
Government customers comprise approximately 2% of the car customization and modification revenue. This segment includes federal, state, and local government organizations.
The car customization and modification line of business will continue to experience growth in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al. As a matter of fact, there are no companies with a leading market share in the industry.
Statistics has it that in the United States of America alone, there are about 61,332 licensed and registered car customization and modification businesses responsible for employing about 194,594 employees and the industry rakes in a whooping sum of $9bn annually with an annual growth rate projected at 2.7 percent.
Over and above, car customization and modification businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.
2. Executive Summary
Jolly Bosco® Car Customization & Modification Garage, LLC is a registered car customization and modification company that will be located in Fort Lauderdale, Florida – United States of America and we plan to also cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Miami Beach, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We chose to operate in these cities because we know that our car customization and modification services will be in high demand due to the growing number of automobile owners in these cities. Jolly Bosco® Car Customization & Modification Garage, LLC is located in a full-service automobile garage.
We will offer standard car customization and modification services that produce a pristine level of detail; it involves cleaning and restoring the surface of the car’s finish, chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a vehicle.
We are well trained and equipped to service the market segments that require car customization and modification services for their automobiles.
Although our intention of starting a Jolly Bosco® Car Customization & Modification Garage, LLC is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We will offer both in-station and off station services. Our customers will have the option of choosing from our different packages – we have the plans to serve both individual clients (households) and corporate clients (celebrities), which is why we designed various packages.
At Jolly Bosco® Car Customization & Modification Garage, LLC we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own car customization and modification business; we are in the industry to make a positive mark.
We are quite optimistic that our values and quality service offering will help us drive our car customization and modification business to enviable heights and also help us attract the number of clients that will make the business highly profitable.
We will be dedicated to establishing good business relationship with our clients while giving them value for their money and reasons for them to hire our services over and over again.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in the car customization and modification line of business.
Our excellent customer service will position us to always welcome repeated customers and handle massive deals from both branding agencies and managers of celebrities.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Jolly Bosco® Car Customization & Modification Garage, LLC is owned and managed by Jolly Bosco and his immediate family members. He is a notable figure in the automobile industry in Florida. Aside from this new car customization and modification business, the family owns an automobile dealership business and also auto repair workshop in Florida.
3. Our Products and Services
Jolly Bosco® Car Customization & Modification Garage, LLC is a standard and well – equipped car customization and modification company that offers a wide range of services that revolves around interior and exterior of cars. We intend giving our customers every reason to always hire our services which is why we have customized our services.
4. Our Mission and Vision Statement
- Our Vision is to become the number one car customization and modification company in the whole of Florida with active presence in major cities in the United States of America and Canada.
- Our mission as a car customization and modification company is to develop a highly successful, profitable, all – round car customization and modification business which provides quality services in our community and to become the standard for an ideal car customization and modification business not only in the State of Florida but also throughout the United States of America.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our car customization and modification company on the right business foundation.
As a matter of fact, we are set to build a car customization and modification business that will be a standard for the car customization and modification line of business in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on autopilot. The success of our car customization and modification business will be anchored on the team not on any individual.
With the wide range of our service offerings, we are expected to employ more than is required to run a conventional car customization and modification business. Jolly Bosco® Car Customization & Modification Garage, LLC will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Marketing and Sales Executive
- Client Service Executive
- Car Customization and Modification Mechanic
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- 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 and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily activities of organization
Car Customization and Modification Mechanics (6):
- Handles car customization, modification and restoration
- Responsible for giving quotation on the cost and materials needed to customize and modify a car
- Handles any other duty as assigned by the manager
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, 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 projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents Jolly Bosco® Car Customization & Modification Garage, LLC in strategic meetings
- Helps increase sales and growth for Jolly Bosco® Car Customization & Modification Garage, LLC.
- 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 for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Jolly Bosco® Car Customization & Modification Garage, LLC.
- Serves as internal auditor for Jolly Bosco® Car Customization & Modification Garage, LLC
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- 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 clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via email and phone calls for the organization
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Car customization and modification business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard car customization and modification business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.
Ordinarily we can successfully run a normal car customization and modification business without the stress of writing a business plan, but because of the nature of the kind of car customization and modification business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Mr. Levi Kastrup, a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Jolly Bosco® Car Customization & Modification Garage, LLC;
Jolly Bosco® Car Customization & Modification Garage, LLC is centrally located in a densely populated industrial and residential estate in Fort Lauderdale, Florida; our location is in fact one of our major strengths.
We have state of the art equipment and tools and we are also one of the very few car customization and modification companies in the whole of Fort Lauderdale – Florida that offers a wide range of services for both Japanese and American cars.
Another strength that counts for us is the power of our team; our workforce and management. We have a team of experts in the car customization and modification line of business, a team of hardworking, highly creative and dedicated individuals.
Jolly Bosco® Car Customization & Modification Garage, LLC is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are aware that it will take time for us to build trust with our clients.
We are centrally located in one of the busiest areas in Fort Lauderdale, Florida and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the car customization and modification line of business.
The truth is that there are no standard and well – equipped car customization and modification garage within the area where ours is going to be located; the closest car customization and modification company to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Jolly Bosco® Car Customization & Modification Garage, LLC are unfavorable government policies, seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The market for car customization and modification services is driven by the purchase of cars and the increase in consumer spending – in essence, as the general economy of a country grows, more people will buy cars and more people will patronize the services of car customization and modification businesses especially if their driving habits encourage them to do so.
In the recent past, many cars were modified by adding extra carburetors, high compression heads, and dual exhaust. Engine swaps were often done, the object of which was to put the most powerful engine in the lightest possible frame and body combination.
Car customization and modification businesses respond to the increase in household spending and also increase in the volume of cars in a particular area or city. The trend of the market can be predicted without stress.
The trend in the car customization and modification line of business is that most companies in a bid to survive the recent global economic meltdown included additional services to their core service offerings. It is much easier for car customization and modification companies to increase their revenues by diversifying as against increasing the scope of their market.
8. Our Target Market
Before choosing a location for our car customization and modification business, we conducted a feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically, those who will benefit from our service offerings are car owners, branding agencies and celebrities.
Our Competitive Advantage
Car customization and modification business is a highly creative industry. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Fort Lauderdale – Florida. Our competitive edge is that we are a well – equipped car customization and modification business that has loads of complimentary business offerings that can easily assist us in attracting car owners within the radius of our garage.
We can confidently say that the location of our car customization and modification garage will definitely count as a positive for us amongst any competitor that might start a car customization and modification business in same location where ours is located.
For the time being, Jolly Bosco® Car Customization & Modification Garage, LLC has no real competitors that can match the quality of service we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Jolly Bosco® Car Customization & Modification Garage, LLC is established with the aim of maximizing profits in the car customization and modification line of business and we are going to go all the way out to ensure that we do all it takes to attract clients on a regular basis.
Jolly Bosco® Car Customization & Modification Garage, LLC will generate income by offering the following services: car customization, modification, restoration, and finishing. We are also open to generate income from other related services as long as it falls within the scope of the industry we are operating in.
10. Sales Forecast
One thing is certain, there would always be corporate organizations and individual clients who would need the services of car customization and modification services.
We are well positioned to take on the available market in Fort Lauderdale – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from our first six months of operation and grow our car customization and modification business and our clientele base.
We have been able to critically examine the car customization and modification market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fort Lauderdale – Florida.
Below is the sales projection for Jolly Bosco® Car Customization & Modification Garage, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Year: $350,000
- Second Year: $950,000
- Third Year: $750,000
N.B: This projection is done based on what is obtainable in the car customization and modification line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the 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
The marketing strategy for Jolly Bosco® Car Customization & Modification Garage, LLC is going to be driven basically by unique finishing, excellent customer service and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referrals from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car customization and modification services.
Jolly Bosco® Car Customization & Modification Garage, LLC is a car customization and modification business that is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible to our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Jolly Bosco® Car Customization & Modification Garage, LLC.
Our goal is to grow Jolly Bosco® Car Customization & Modification Garage, LLC to become the leading car customization and modification company in Fort Lauderdale – Florida which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the car customization and modification industry.
Jolly Bosco® Car Customization & Modification Garage, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our car customization and modification business by sending introductory letters alongside our brochure to corporate organizations, branding companies, households and key stake holders in Fort Lauderdale – Florida
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like bars, night clubs, libraries, and local coffee shops et al
- Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our car customization and modification company in relevant auto magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services
11. Publicity and Advertising Strategy
Jolly Bosco® Car Customization & Modification Garage, LLC is set to create a standard for car customization and modification businesses in Fort Lauderdale – Florida and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise or promote a car customization and modification business. The challenge is that most car customization and modification companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car customization and modification business. Here are the platforms we intend leveraging on to promote and advertise Jolly Bosco® Car Customization & Modification Garage, LLC;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our car customization and modification business in relevant magazines, local newspaper, local TV and local radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards on strategic locations in and around Fort Lauderdale – Florida
- Direct coupon mailing approach
- Engage in roadshows from time to time in target communities
- Distribute our fliers and handbills in target areas
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the car customization and modification line of business, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Fort Lauderdale – Florida.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Jolly Bosco® Car Customization & Modification Garage, 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 Jolly Bosco® Car Customization & Modification Garage, 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 client make payment for our services 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 services rendered.
13. Startup Expenditure (Budget)
We have been able to pull together cash that will be enough for us to successfully launch a standard car customization and modification company in Fort Lauderdale – Florida US. These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750
- Legal expenses for obtaining licenses and permits – $1,500
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580
- Cost for hiring Business Consultant – $2,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing standard warehouse facility- $100,000
- Cost for facility remodeling – $10,000
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for startup inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost for car modification equipment – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- Cost for the purchase of utility truck – $15,000
- The cost for our grand opening party – $1,500
- Miscellaneous: $10,000
We would need an estimate of three hundred and fifty thousand US dollars ($350,000) to successfully launch our car customization and modification business in Fort Lauderdale – Florida US. Please note that this amount includes the salaries of all our staff members within 3 months of operations.
Generating Startup Capital for Jolly Bosco® Car Customization & Modification Garage, LLC
Jolly Bosco® Car Customization & Modification Garage, LLC is a business that will be owned and managed by Jolly Bosco and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number 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, then it won’t be too long before the business closes shop.
One of our major goals of starting Jolly Bosco® Car Customization & Modification Garage, 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 offer nothing short of excellent and unique car customization and modification services at pocket friendly rates.
At Jolly Bosco® Car Customization & Modification Garage, LLC, we 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 ten 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
- Acquiring facility and remodeling the 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 Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed tool box and equipment, electronic appliances, office appliances and bar accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress