Are you writing a car salesman business plan? If YES, here is a sample car salesman financial projection, sales cost, profit & loss statement. Our goal at Green Generation Cars is to grow a business that will serve the needs of our customers and also ensure a balanced positive cash flow.
With our diverse workforce and experienced board of directors, we plan to build a classic business that will invest residual profits into company expansion. We went through a great deal of hurdles to estimate our startup costs and overheads for the next three years.
Table of Content
Startup Budget and Expenditure
It is believed that all new entrants in the industry operate with negative profits through the first two years. We at Green Generation Cars plan to avoid that kind of operating loss by understanding our markets, our competitors, industry direction, and the products we sell. Outlined below are the ways we plan spending our start-up cost;
- The Total Fee for Registering the Business in Cincinnati: $900.
- The budget for insurance, permits and license: $10,000
- The Amount needed to acquire a suitable Facility for 6 months in Oklahoma (face lifting of the facility inclusive): $75,000.
- The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $20,000.
- The Cost for Equipment: $15,000
- The Cost for inventory : $3,000,000
- The Cost of Launching a Website: $700
- Our marketing and publicity budget – $150,000
- The cost for our opening party: $6,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $7,000
TOTAL EXPENSES: $3,284,600
From our detailed analysis above, we will need $3,500,000 to start Green Generation Cars. We have also put plans in place to raise the funds.
Generating Funding / Start up for Green Generation Cars
Green Generation Cars was founded by five friends led by Mr. Sebastian Crooks. These experienced men, Adam Kendell, Pete Lennon, Otis Craig and Martins Mist are all from different walks of life and they are ready to invest their years of experience in Green Generation Cars. Thus, we have restricted the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from friends and other extended family members
- Generate part of the capital from the bank (loan facility).
Note: This group of friends has been able to raise $2,000,000, and they are at the final stages of obtaining a loan facility of $1,500,000.
Payroll alone in our early business stages to be about $51,000 for one mechanic and one accountant, while all sales staff operate on commission. Indeed margins are very hard to put together as the average per unit costs do not include marketing costs, promotions, or salesman commissions. But our overall average per unit revenue over per unit costs is based on past sales from other dealerships.
We hope to attain a margin that high in the future. We also anticipate a heady monthly increase in sales starting small (selling 8 cars in the first month). The gross margin within the first year will be modest, rising in the second and third year. Our major budget items will include salary, rent, sales and marketing expenses, utilities (including costs of photovoltaic cell maintenance), insurance, taxes and licensing.
Green Generation Cars net profit is also expected to reach outstanding levels in the first year, rising in the second and the third year. All of these profits can then be fed back into research and development opening the doorway to a secondary market role for Green Generation Cars to become a patent holding company.
SOURCES OF INCOME FOR YEAR ONE
- Sales of cars (Toyota, mercedes-benz, jeep, honda et al )
Toyota Camry will cost $24,000
- Selling 100 Toyota Camry will cost $2,400,000
Toyota Corolla will cost $20,000
- Selling 100 Toyota Corolla will cost $2,000,000
Mercedes-Benz A-Class will cost $34,000
- Selling 100 Mercedes-Benz A-Class will cost $3,400,000
Mercedes-Benz C-Class will cost $49,200
- Selling 100 Mercedes-Benz C-Class will cost $4,920,000
Jeep Compass will cost $24,000
- Selling 100 jeep compass will cost $2,400,000
Jeep Grand Cherokee will cost $32,500
- Selling 100 Jeep grand cherokee will cost $3,250,000
Honda Accord will cost $24,300
- Selling 100 Honda accord will cost $2,430,000
Honda Accord Hybrid will cost $26,000
- Selling 100 Honda accord hybrid will cost $2,600,000
TOTAL INCOME : $23,400,000
ON-GOING OPERATIONAL EXPENSES:
- The Amount needed to acquire a suitable Facility for the remaining 6 months in Oklahoma (face lifting of the facility inclusive): $75,000.
- Operational cost for first quarter of the year (salaries of employees, payments of bills et al) – $200,000
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $200,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $300,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $300,000
- Equipment rental, repairs and maintenance – $34,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $55,000
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 natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
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