Tire Shop Business Plan [Sample Template]

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Are you about starting a tire retail shop? If YES, here is a complete sample tire shop business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a tire shop. We also took it further by analyzing and drafting a sample tire shop marketing plan template backed up by actionable guerrilla marketing ideas for tire shop. So let’s proceed to the business planning section.

Why Start a Tire Shop?

Of course there are businesses that someone with little schooling and no serious business background and training can start.

One of such businesses is to open a tire retailing shop. The basic things you would need to have in place to make success from this type of business is a good location, easy access to wholesale supply of quality tires and good customer service skill.

Usually, if you shop is located in an area with good human and vehicular traffic, and you have stocked in your shop quality tires from different brands, you may not have to struggle to get people to visit your shop and make purchase.

So if you have decided to open a tire shop, 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 retail shop business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Tire Shop Business Plan Template

1. Industry Overview

Tire is a major component in the automobile industry hence the regular demand for tires from automobile owners. Establishment in the retail market for auto tires industry sell automobile tires and tubes that are used on all types of passenger vehicles and freight vehicles.

The Retail Market for Auto Tires Industry, just like most businesses in the retailing industry, depends on strong consumer spending to spur the demand for industry products. Over the last half a decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing.

Going forward, as the economy of the united states continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive. This is why rising disposable income and vehicle mileage will support demand for industry products

Research conducted by IBISWORLD shows that, the tire retail market for automobile tires has stabilized following the aftermath of the recession, with low single-digit growth in each of the past three years. The report also stated that as demand picks up across all sectors of the economy, revenue growth will continue in the five years to 2019.

In particular, shifting consumer preference towards fuel-efficient tires will present a growth market for tire retailers. Government fuel-efficiency regulation will also stimulate demand for high quality tires

The Retail Market for Auto Tires 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 $35 billion annually from more than 56,199tires retail outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 190,899 people. Experts project that the industry will grow at a 6.2 percent annual rate. The establishment in this industry that has dominant market shares in the United States of America are; Discount Tire and Sumitomo Corporation.

Available statistics shows that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the tires retail shops industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the Retail Market for Auto Tires Industry negatively which may result in the closure of some furniture retail stores.

Over and above, the Retail Market for Auto Tires Industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or you can chose to start on a large scale with several outlets in key cities through the United States of America and Canada retailing quality tires from top brands.

2. Executive Summary

Victory Express Tire Shop®, Inc. is a standard and registered tire retail shop business that will be located in one of the busiest streets in Augusta – Maine.

We have been able to lease a facility that is big enough to fit into the design of the kind of standard tire retail shop that we intend launching and the facility is located in a corner piece facility in the center of the commercial center in Augusta – Maine.

Victory Express Tire Shop®, Inc. will be involved in retailing new passenger vehicle tires, used passenger vehicle tires, new light vehicle tires, used light vehicle tires, new medium- and heavy-duty truck tires, used medium- and heavy- duty truck tires et al from different manufacturers (brands) from the United States and abroad. We are set to services a wide range of clientele in and around Augusta – Maine.

We are aware that there are several large and small chains of tire retail shop outlets all around Augusta – Maine, 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.

Victory Express Tire Shop®, Inc. 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 in the selection of tire brands that will be in our shops and also when making some business decisions.

Victory Express Tire Shop®, Inc. 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 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.

Victory Express Tire Shop®, Inc. is a family business that is owned by Victory Jacobson and his immediate family members. Victory Jacobson has a B.Sc. in Business Administration from University of Southern Maine – Portland, with well over 5 years of experience in the auto tire retailing stores industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Augusta – Maine, but there is a plan to open other outlets all around major cities in the United States and Canada.

3. Our Products and Services

Victory Express Tire Shop®, Inc. is in the Retail Market for Auto Tires 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 make available a wide range of tires from top manufacturing brands (Dunlop, Good Year, Bridgestone, Cooper, Firestone, Uniroyal and Michelin et al) 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 offerings are listed below;

Retailing new passenger vehicle tires
Retailing used passenger vehicle tires
Retailing new light vehicle tires
Retailing used light vehicle tires
Retailing new medium- and heavy-duty truck tires
Retailing used medium- and heavy- duty truck 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 auto tire retail shops industry in Maine and to establish a one stop tire retail shop in Augusta – Maine and in other key cities in the United States of America and Canada.
Our mission is to establish a world – class tire retail shop business that will make available a wide range of tires from top tire manufacturing brands at affordable prices to the residence of Augusta – Maine and other key cities in the United States of America and Canada where we intend opening of chains of tire retail shops and franchise.

Our Business Structure

Victory Express Tire Shop®, Inc. do not intend to start a tire retail shop business like the usual mom and pop business around the street corner; our intention of starting an auto tire retail shop business is to build a standard and one stop auto tire retail shop outlet in Augusta – Maine.

Although our tire retail shop business might not be as big as Discount Tire and Sumitomo Corporation 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 stakeholders (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
Merchandize Manager
Sales and Marketing Manager
Information Technologist
Accountants / Cashiers
Sales Agents / Customer Services Executive
Vulcanizer
Cleaners

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
Oversees the smooth running of the daily office activities.

Shop Manager:

Responsible for managing the daily activities in the shop
Ensures that proper records of tires and rims 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)
Controls shoes distribution and supply inventory
Supervises the workforce in the tire sales floor.

Merchandize Manager

Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
Help to ensure consistent quality of tires from different manufacturers are purchased and retailed in good price that will ensure we make good profit
Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Ensures that the organization operates within stipulated budget.

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

Information Technologist

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)
Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
makes suggestions and encourage purchase of products
Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options

Cleaners:

Responsible for cleaning all the tires, rims and the store facility at all times
Ensures that toiletries and supplies don’t run out of stock
Cleans both the interior and exterior of the store facility
Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our plan of starting with just one outlet of our tire retail shop in Augusta – Maine 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 Maine and key cities in the United States and Canada.

We are quite aware that there are several tire retail shops all over Augusta – Maine 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 well equipped to confront our threats.

Victory Express Tire Shop®, Inc. 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 Victory Express Tire Shop®, Inc.;

Strength:

The location of our shop, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of tires from different manufacturers and our excellent customer service culture will definitely count as a strong strength for Victory Express Tire Shop®, Inc. So also our team of highly qualify staff members is also a plus for us.

Weakness:

A major weakness that may count against us is the fact that we are a new tire retail shop outlet in Augusta – Maine and we don’t have the financial capacity to compete with multi – million dollars tire retail shop outlets like Discount Tire, Sumitomo Corporation and co when it comes to retailing at a rock bottom prices for all their tires.

Opportunities:

The fact that we are going to be operating our tire retail shop in one of the busiest streets in Augusta – Maine couple with the rising number of car automobile owners provide us with unlimited opportunities to sell our tires 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 retail shop outlets; we are well positioned to take on the opportunities that will come our way.

Threat:

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 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

Lastly, in recent time, the tire retail shops landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for tire retailers to reach out to a larger market far beyond the areas where his physical tire retail store is located.

8. Our Target Market

Possibly it will be safe to submit that the auto tire retail shops 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 can with their vehicle.

In view of that, we have positioned our tire retail shop to service the residence of Augusta – Maine and every other location where franchise cum outlets of our tire retail 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 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

Our competitive advantage

A close study of the tire retail shops 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 retail shops in Augusta – Maine and throughout the United States and Canada.

Victory Express Tire Shop®, Inc. is launching a standard one stop tire retail shop that will indeed become the preferred choice of residence of Augusta – Maine and every other location where our outlets will be opened. Our tire retail shop is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Augusta – Maine.

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 from leading manufacturers 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 Victory Express Tire Shop®, Inc. 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 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

Victory Express Tire Shop®, Inc. is in business to retail a wide range of tire to the residence of Augusta – Maine. We are in the tire retail shops 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 tires at affordable prices. Victory Express Tire Shop®, Inc. will generate income by selling the following products;

Retailing new passenger vehicle tires
Retailing used passenger vehicle tires
Retailing new light vehicle tires
Retailing used light vehicle tires
Retailing new medium- and heavy-duty truck tires
Retailing used medium- and heavy- duty truck 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 retail shop business, if your shop is well stocked with various types of tires from different brands 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 Augusta – Maine 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 Retail Market for Auto Tires 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 Augusta – Maine.

Below is the sales projection for Victory Express Tire Shop®, Inc. it is based on the location of our business and other factors as it relates to tire retail shops startups 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 Victory Express Tire Shop®, Inc. 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 Augusta – Maine.

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 retail shop 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 Augusta – Maine.

In other to continue to be in business and grow, we must continue 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, Victory Express Tire Shop®, Inc. will adopt the following sales and marketing approach to win customers over;

Open our tire store in a grand style with a party for all
Introduce our auto tire store by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Augusta – Maine
Ensure that we have a wide range of tires from different brands at all times.
Make use of attractive handbills to create awareness and also to give direction to our tire store
Position our signage / flexi banners at strategic places around Augusta – Maine
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 shoe 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 shoe store.

Victory Express Tire Shop®, Inc. has a long term plan of opening outlets in various locations all around Maine and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Augusta 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 Victory Express Tire Shop®, Inc.;

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 Augusta – Maine
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 Victory Express Tire Shop®, Inc. and the products we sell
Advertise our shoe 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.

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 at cheaper price which is why big player in the auto tire retail shops industry like Discount Tire, Sumitomo Corporation and co will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with Discount Tire, Sumitomo Corporation and co but we will ensure that the prices and quality of all the tire products that are available in our shop are competitive with what is obtainable amongst tire retail stores within our level.

Payment Options

The payment policy adopted by Victory Express Tire Shop®, Inc. 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 Victory Express Tire Shop®, Inc. 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 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 retail store 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 Victory Express Tire Shop®, Inc. 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) – $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 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 shoe retail store in Charleston – West Virginia. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Victory Express Tire Shop®, Inc.

Victory Express Tire Shop®, Inc. is a private registered business that is solely owned and financed by Victory Jacobson 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 Victory Express Tire Shop®, Inc. 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 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.

Victory Express Tire Shop®, Inc. 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 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 tires: In Progress