Are you about starting a tire retreading company? If YES, here is a complete sample tire retreading business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a tire retreading business. We also took it further by analyzing and drafting a sample tire retreading marketing plan template backed up by actionable guerrilla marketing ideas for tire retreading businesses. So let’s proceed to the business planning section.
Tire retreading business happens to be one business that is not very popular in most cities and countries hence it is an opportunity to tap in and make profits. It is a business that requires moderate startup capital and of course little technical trainings. It is a business that is open to all and sundry irrespective of your academic background and exposure.
So if you have decided to launch your own tire retreading company, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running.
Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample tires retreading company business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Tire Retreading Business Plan Template
1. Industry Overview
It is known fact that tire is a major component in the automobile industry hence the regular demand for tires from automobile owners and the urgency to retread the tires once they are worn out. Tire retread that is also called “tire recap,” or a “tire remold” is a re-manufacturing process for tires that replace the tread on worn tires.
Retreading is applied to casings of spent tires that have been inspected and repaired. Tire retreading preserves about 90 percent of the material in spent tires and the material cost is about 20 percent compared to manufacturing a brand new one from the very scratch.
Basically, tire retreading companies / shops retread tires for commercial, industrial and consumer use. The retreading process involves inspecting the existing tire casing for defects, buffing the remaining tread and retreading the tire using either the pre-cure method or the mold-cure method.
Research conducted by IBISWORLD shows that, the Tire Retreading and Recapping industry has experienced stronger demand over the five years to 2016. The report pointed to the fact that massive fluctuations in commodity prices induced significant volatility in the beginning of the period; however, revenue began to stabilize in 2013 in response to rising trade flows.
When total trade value increases, trucking companies transport goods more often, putting increased wear and tear on tires, which ultimately leads to increased industry demand. Consequently, in the five years to 2016, IBISWorld expects industry revenue to increase at an annualized rate of 1.4 percent to $2.1 billion, including a 0.9 percent rise in 2016 alone.
The Tire Retreading & Recapping Industry is indeed a thriving and profitable industry in most countries of the world. It is a major sector of the economy of the united states of America and they generates a whooping sum of well over billion annually from more than 296 tire retreading shops scattered all around the United States of America.
The industry is responsible for the direct employment of well over 6,210 people. Experts project that the industry will grow at a 1.4 percent annual rate from 2011 to 2016. The establishment in this industry that has dominant market shares in the United States of America are; Bridgestone Corporation, Michelin and The Goodyear Tire and Rubber Company.
Over and above, the Tire Retreading and Recapping industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner or you can choose to start on a large scale with several outlets in key cities through the United States of America and Canada servicing both corporate organizations, government agencies and individual clients
2. Executive Summary
Mark Bauer Tire Retreading Shop®, LLC is a standard and registered tire retreading company that will be located in one of the busiest streets in Colorado Springs – Colorado. We have been able to lease a facility that is big enough to fit into the design of the kind of standard tire retreading shop that we intend launching and the facility is located in a corner piece facility in the center of the commercial center in Colorado Springs – Colorado.
Mark Bauer Tire Retreading Shop®, LLC will be involved in retreading freight-truck tires, retreading off-road tires, retreading light-truck tires, and retreading industrial tires et al. We are set to services a wide range of clientele (corporate clients and individual clients) in and around Colorado Springs – Colorado.
We are aware that there are several large and small of tire retreading shop outlets all around Colorado Springs – Colorado, 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. We will also offer vulcanizing services as demanded by our clients.
Mark Bauer Tire Retreading Shop®, LLC will ensure that all our customers are given first class treatment whenever they visit our shop. We have in place, 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 when making some business decisions that directly affect them.
Mark Bauer Tire Retreading Shop®, LLC will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business best 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 services. 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.
Mark Bauer Tire Retreading Shop®, LLC is a family business that is owned by Mark Bauer and his immediate family members. Mark Bauer has a B.Sc. in Business Administration from University of Colorado – Boulder, with well over 10 years of experience in the tire retreading and recapping industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Colorado Springs – Colorado, but there is a plan to open other outlets all around major cities in the United States and Canada.
3. Our Products and Services
Mark Bauer Tire Retreading Shop®, LLC is in the Tire Retreading and Recapping industry to service a wide range of corporate and individual clients and of course to make profits, which is why we will ensure we go all the way to enforce best practices in our company.
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 service offerings are listed below;
- Retreading freight-truck tires
- Retreading off-road tires
- Retreading light-truck tires
- Retreading industrial tires
- Pre-cure tires
- Mold cure tires
- Retailing of tubes
- Retailing of tire rims (alloy and non – alloy)
- Vulcanizing services (replacing tires, wheel alignment, wheel balancing and tire repairs et al)
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the tire retreading and recapping industry in Colorado.
- Our mission is to establish a world – class tire retreading and recapping company that will make available tire retreading and recapping services at affordable prices to the residence of Colorado Springs – Colorado and other key cities in the United States of America and Canada where we intend opening of shops and franchise.
Our Business Structure
Mark Bauer Tire Retreading Shop®, LLC do not intend to start a tire retreading and recapping business like the usual mom and pop business around the street corner; our intention of starting a tire retreading and recapping business is to build a standard and one stop tire retreading company in Colorado Springs – Colorado.
Although our tire retreading and recapping company might not be as big as Bridgestone Corporation, Michelin and The Goodyear Tire and Rubber Company 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)
- Shop Manager
- Human Resources and Admin Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Customer Services Executive
- Tire Retreading and Recapping Machine Operators
5. Job 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; developing a climate for offering information and opinions; providing educational opportunities.
- 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
- 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.
- 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.
- Updates 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.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff 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 tire retreading and recapping shop
- Ensures that proper records of tires and rims are kept and warehouse does not run out of products
- Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls tires distribution and supply inventory
- Supervises the workforce in the tire retreading shop.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches 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
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Manages the organization website
- 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:
- 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
- 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.
- make suggestions and encourage purchase of products
- Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
Tire Retreading and Recapping Machine Operators:
- Responsible for retreading and recapping freight-truck tires
- Responsible for retreading and recapping off-road tires
- Responsible for retreading and recapping light-truck tires
- Responsible for retreading and recapping industrial tires
- Operate machines use for pre-cure tires
- Operate machines use for mold cure tires
6. SWOT Analysis
Our plan of starting with just one outlet of our tire retreading and recapping shop in Colorado Springs – Colorado 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 cities in Colorado and key cities in the United States and Canada.
We are quite aware that there are several tire retreading and recapping shops all over Colorado Springs 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.
Mark Bauer Tire Retreading Shop®, 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 Mark Bauer Tire Retreading Shop®, LLC;
The location of our shop, the business model we will be operating on, varieties of payment options and our excellent customer service culture will definitely count as a strong strength for Mark Bauer Tire Retreading Shop®, LLC. So also, the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
A major weakness that may count against us is the fact that we are a new tire retreading and recapping shop outlet in Colorado Springs – Colorado and we don’t have the financial capacity to compete with multi – million dollars tire retreading and recapping companies like Bridgestone Corporation, Michelin, The Goodyear Tire and Rubber Company and co when it comes to retailing at a rock bottom prices for all their tires.
The fact that we are going to be operating our tire retreading and recapping shop in one of the busiest streets in Colorado Springs – Colorado, couple with the rising number of car automobile owners provide us with unlimited opportunities to offer our services to a large number of individuals and corporate organizations.
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 tire retreading and recapping 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 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 the arrival of a new tire retreading and recapping 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
The United States Federal Executive Order 13149 is in full support of the use of retread tires for economic and environmental efficiency by requiring federal vehicles to use retread tires after original factory equipped tires become non serviceable, but only when “such products are reasonably available and meet applicable performance standards”.
So also, in the bid to 8. Our Target Market
Possibly, it will be safe to submit that the auto tire retreading and recapping industry has a wide range of customers; every individual and corporate organization who owns automobile would at one point or the other change the tires that came with their vehicle and the chances of going for a retreaded and recapped tire as against a brand new tire manufactured from the scratch can’t be ruled out.
In view of that, we have positioned our tire retreading and recapping company to service the residence of Colorado Springs – Colorado and every other location where franchise cum outlets of our tire retreading and recapping shops 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 retreaded and recapped tires to the following groups of people and corporate organizations;
- Car owners
- Transport and haulage companies
- Car dealership shop
- Corporate organization
- Taxi and car hire companies
- Tire Dealers and Merchant
Our competitive advantage
A close study of the tire retreading and recapping 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 tire retreading and recapping companies in Colorado Springs – Colorado and throughout the United States and Canada.
Mark Bauer Tire Retreading Shop®, LLC is launching a standard one stop tire retreading and recapping company that will indeed become the preferred choice of residence of Colorado Springs – Colorado and every other location where our outlets will be opened.
Our tire retreading and recapping company is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Colorado Springs – Colorado. We have enough parking spaces that can accommodate well over 20 cars per time.
One thing is certain; we will ensure that we have a wide range sizes of tires retreaded and recapped tires are available in our shop at all times. It will be difficult for customers to visit our shop and not see the type and size of tire they are looking for.
One of our business goals is to make Mark Bauer Tire Retreading Shop®, LLC a one stop tire shop for both individual and corporate organizations. 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 tire retreading and recapping companies) 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
Mark Bauer Tire Retreading Shop®, LLC is in business to retread, recapped and retail a wide range of tire to the residence of Colorado Springs – Colorado. We are in the tire retreading and recapping industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of retreaded and recapped tires at affordable prices. Mark Bauer Tire Retreading Shop®, LLC will generate income by offering the following products and services;
- Retreading freight-truck tires
- Retreading off-road tires
- Retreading light-truck tires
- Retreading industrial tires
- Pre-cure tires
- Mold cure tires
- Retailing of tubes
- Retailing of tire rims (alloy and non – alloy)
- Vulcanizing services (replacing tires, wheel alignment, wheel balancing and tire repairs et al)
10. Sales Forecast
One thing is certain when it comes to tire retreading and recapping business, if your shop is well stocked with various types of retreaded and recapped tires from different brands, your services are affordable and 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 Colorado Spring – Colorado 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 tire retreading and recapping 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 startups in Colorado Springs – Colorado.
Below is the sales projection for Mark Bauer Tire Retreading Shop®, LLC it is based on the location of our business and other factors as it relates to tire retreading and recapping 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 tire 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 Mark Bauer Tire Retreading Shop®, 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 Colorado Springs – Colorado. 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 tire retreading and recapping industry to help us develop
In other to continue to be in business and grow, we must continue to retread and recap tires for clients and also to sell the tires 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, Mark Bauer Tire Retreading Shop®, LLC will adopt the following sales and marketing approach to win customers over;
- Open our tire retreading and recapping company in a grand style with a party for all
- Introduce our auto tire retreading and recapping company by sending introductory letters alongside our brochure to organizations, households and key stake holders in Colorado Springs – Colorado
- Ensure that we have a wide range of retreaded and recapped tires from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our tire store
- Position our signage / flexi banners at strategic places around Colorado Springs – Colorado
- 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 tire shop
- 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)
11. Publicity and Advertising Strategy
Despite the fact that our tire retreading and recapping company 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 shoe store.
Mark Bauer Tire Retreading Shop®, LLC has a long term plan of opening outlets in various locations all around Colorado and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Colorado Springs 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 Mark Bauer Tire Retreading Shop®, LLC;
- Place adverts on community based newspapers, radio stations 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, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Colorado Springs – Colorado
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Mark Bauer Tire Retreading Shop®, LCC and the services and products we sell
- Advertise our tire retreading and recapping 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.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to retailing business such as tire retailing business, it is normal for consumers to go to places (tire retail outlets) where they can get tire retreaded and recapped at cheaper price which is why big player in the auto tire retail shops industry like Bridgestone Corporation, Michelin and The Goodyear Tire and Rubber Company will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with Bridgestone Corporation, Michelin, The Goodyear Tire and Rubber Company and the likes, but we will ensure that the prices of our services and quality of all the tire products that are available in our shop are competitive with what is obtainable amongst tire retreading and recapping shops within our level.
- Payment Options
The payment policy adopted by Mark Bauer Tire Retreading Shop®, LCC 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 Mark Bauer Tire Retreading Shop®, 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 farm produces purchase 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 tire retreading and recapping services, tires and other products.
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 tools 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 tire retreading and recapping business; it might differ in other countries due to the value of their money.
This is the key areas where we will spend our start – up capital;
- 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 Mark Bauer Tire Retreading Shop®, 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.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for Shop remodeling (construction of racks and shelves and installation of machines) – $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 (Tire buffing blades, rasps, carbide tools and accessories, stocking with a wide range of tires tubes, rims and other tire accessories from different brands) – $250,000
- The cost for counter area equipment – $9,500
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- 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 $750,000 to successfully set up our tire retreading and recapping company in Colorado Springs – Colorado. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Mark Bauer Tire Retreading Shop®, LLC
Mark Bauer Tire Retreading Shop®, LLC is a private registered business that is solely owned and financed by Mark Bauer 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 $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 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 Mark Bauer Tire Retreading Shop®, 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 tires and accessories and also to offer our tire retreading and recapping services 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.
Mark Bauer Tire Retreading Shop®, 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 tire treading and recapping machines, 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 tires: In Progress