Are you about starting a mobile mechanic company? If YES, here is a complete sample mobile mechanic business plan template & feasibility report you can use for FREE.
Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the mobile auto mechanic repair business is one of them. All over the world, car repair is one business that never goes into extinction.
This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.
As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop or hire the services of mobile mechanics if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.
People call auto mechanics for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; mobile auto mechanic business will always translate to money for the owner of the repair garage.
In some climes, you would be required to own a license to start this type of business; if it applies to you, be sure to get all the trainings and documentation needed. This is so that getting issued an operating license from the licensing office would be a lot easier.
If indeed you want to operate a corporate mobile auto mechanic repair business, you must go all the way to get it registered with the corporate affairs department of your state or country.
Although you can operate an unregistered mobile auto mechanic business in some countries, operating a registered one is the best way to go because it would position you to do business with corporate entities and it will enable your clients to trust you to come to their homes.
Now that you have decided to start your own mobile auto mechanic repair business, it is important that you sit back to create plans on how to raise startup capital, how to attract clients, how to generate profits and how to run the business.
Below is a sample mobile auto mechanic repair business plan template that will help you successfully write yours with little or no stress;
A Sample Mobile Auto Mechanic Business Plan Template
1. Industry Overview
The Auto Mechanics industry (mobile mechanic repair services inclusive) is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur who is a trained mechanic can successfully start.
All over the world, car repair is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car repair would become inevitable.
The Auto Mechanics industry of which mobile auto mechanic repair services is a part of provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.
It is important to state that the auto repair industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair
The mobile auto mechanic repair business is an open line of business hence a low level of market share concentration. Even though large automobile companies operate in the industry, revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.
As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops cum mobile auto mechanic services accounts for a large percent of the players in the auto repair services industry.
The Auto Mechanics industry of which mobile auto mechanic repair services is a part of is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Sweden, Switzerland, Australia and Canada et al.
Statistics has it that in the united states of America alone, there are about 254,970registered and licensed (accredited) Auto Mechanics garages (mobile inclusive) scattered all across the United States responsible for employing about 562,530 people and the industry rakes in a whooping sum of $64 billion annually.
The industry is projected to grow at 3.2 percent annual growth within 2011 and 2016. It is important to state that there is no establishment in this industry that has a lion market share. The Auto Mechanics industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth.
Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.
Over and above, the mobile auto mechanic repair business is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business and of course make good money from the industry.
2. Executive Summary
Thomas Gusto Mobile Mechanic Services®, LLC is a U.S based and licensed mobile mechanic repair garage. We have been able to secure all the necessary permits to operate in Miami Beach, Florida – United States of America and we will have active presence in other cities all across Florida such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We are a mobile mechanic repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Miami Beach – Florida, but also throughout the United States market because we intend expanding our services across key cities in the United States of America.
Thomas Gusto Mobile Mechanic Services®, LLC will offers mobile auto mechanic repair services such as repairing and replacing automotive engines, performing general automotive repairs, repairing trucks, repairing and replacing automotive exhaust systems, repairing and replacing mufflers, repairing automotive transmissions, repairing automotive brakes, performing automotive electric repairs, performing automotive wheel alignments, and repairing automotive radiators for cars, trucks, vans and trailers et al.
Our business goal is to become one of the leading mobile auto mechanic services company in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.
We have some of the latest auto mechanic tools and equipment that can easily be moved from one point to another. Our workers are going to be selected from a pool of certified and highly experienced auto repair mechanics and technicians in and around Miami Beach – Florida and also from any part of the United States of America as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading mobile mechanic repair companies, auto repair garages and services centers in the United States and throughout the globe.
At Thomas Gusto Mobile Mechanic Services®, LLC, 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.
We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.
Thomas Gusto Mobile Mechanic Services®, LLC is private registered business that is owned by Engr. Thomas Gusto an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his immediate family members.
Thomas Gusto has well over 15 years of hands on experience working for some of the leading brands in the Auto repair industry in the United States of America.
3. Our Products and Services
Thomas Gusto Mobile Mechanic Services®, LLC is established with the aim of maximizing profits in the mobile auto mechanic repair line of business.
We want to compete favorably with the leading auto repair companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance jobs carried out by us or related services rendered meet and even surpass our customers’ expectations.
We will work hard to ensure that Thomas Gusto Mobile Mechanic Services®, LLC is not just accepted in Miami Beach – Florida but also in other cities Florida and in the United States of America where we intend opening our garages.
We are in the mobile mechanic repairs line of business to make profits and we will ensure that we do all that is permitted by the law in the United States of America to achieve our aims and ambitions of setting up the business Our products and services are listed below;
- Repairing and replacing automotive engines
- Performing general automotive repairs
- Powertrain repair services
- Brake repair services
- Scheduled and preventive repair and maintenance services
- Repairing trucks
- Repairing and replacing automotive exhaust systems
- Repairing and replacing mufflers
- Repairing automotive transmissions
- Repairing automotive brakes
- Performing automotive electric repairs
- Performing automotive wheel alignments
- Repairing automotive radiators
- Wheel alignment and repair services
- Other repair and maintenance services
N.B: Please note that all the services listed above will be carried out in any location (home or offices premises et al) as requested by our clients
4. Our Mission and Vision Statement
- Our vision is to establish a standard and world class one stop mobile auto mechanic services business whose services and brand will not only be accepted in Miami Beach – Florida but also in other cities in the United States of America.
- Our mission is to provide professional mobile auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
- We want to build a mobile auto mechanic business that can favorably compete with other leading brands in the automobile maintenance and repair services industry.
Our Business Structure
Thomas Gusto Mobile Mechanic Services®, LLC is a mobile auto mechanic repair and maintenance business that intend starting small in Miami Beach – Florida, but hope to grow big in order to compete favorably with leading mobile mechanic repair business, automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Human Resources and Admin Manager
- Mechanic Supervisor
- Sales and Marketing Executive
- Accountant
- Mobile Auto Mechanics
- Client Service Executive
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.
- 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 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
Mechanic Supervisor:
- Serves as project manager of the organization; works directly with employees
- Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Makes certain that the mobile auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
- Ensures that the organization work in line with international best practices
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- 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.
- Defining 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
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
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
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development 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
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
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 for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Thomas Gusto Mobile Mechanic Services®, LLC
- Serves as internal auditor for Thomas Gusto Mobile Mechanic Services®, LLC.
Mobile Auto Mechanics
- Repairs and replaces automotive engines
- Performs general automotive repairs
- Handles Powertrain repair services
- Handles Brake repair services
- Scheduled and preventive repair and maintenance services
- Repairs trucks
- Repairs and replacing automotive exhaust systems
- Repairs and replacing mufflers
- Repairs automotive transmissions
- Repairs automotive brakes
- Performs automotive electric repairs
- Performs automotive wheel alignments
- Repairs automotive radiators
- Handles wheel alignment and repair services
- Handles other repair and maintenance services
Client Service Executive
- Welcomes clients and potential clients 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 creative director 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 clients when they make enquiries
- Receives parcels / documents for the organization
- Distributes mails in the organization
- Handles any other duties as assigned the line manager
6. SWOT Analysis
Thomas Gusto Mobile Mechanic Services®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mobile auto mechanic business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.
Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Thomas Gusto Mobile Mechanic Services®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Thomas Gusto Mobile Mechanic Services®, LLC;
- Strength:
Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair mechanics, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.
Aside from the synergy that exist in our carefully selected workforce, our services will be guided by best practices in the industry and we are well equipped with the right tools to carry auto repair, services and maintenance jobs in any location within our perimeter of operations.
- Weakness:
As a new mobile mechanic repair and maintenance business in Miami Beach – Florida, it might take some time for our mobile mechanic repair and maintenance business to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness.
Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
- Opportunities:
No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States and who would really appreciate home services.
As a mobile mechanic repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.
- 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 auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
One good thing about the Auto Repair industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry, revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.
As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why mobile mechanic businesses and smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.
It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Services Industry, as a matter of fact, the Auto Repair Services industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.
Individuals and businesses have increased demand for mobile auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.
Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.
Lastly, it is now becoming trendy to find mechanics, automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.
8. Our Target Market
Before starting our mobile mechanic repair and maintenance garage in Miami Beach – Florida, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of a mobile mechanic repair and maintenance garages especially haulage companies and transport companies.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Transport Companies
- Haulage Companies
- Individuals and households
- School with transportation system for students
Our competitive advantage
Surviving in the business world as a mobile mechanic repair and maintenance company requires more than, your expertise, knowing how to deliver standard auto repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.
Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big automobile repair, servicing and maintenance garages and the small ones as well and even a mobile mechanic company.
What smaller mobile mechanic maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations (franchise from automobile manufacturing companies to run their service centers) and government agencies (Public Works Department et al).
We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets.
No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in the power of our team; our workforce.
We have a team of certified and highly trained and experience automobile maintenance and repair mechanics, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.
Aside from the synergy that exist in our carefully selected workforce, our services will be guided by best practices in the industry and we are well equipped with the right tools to carry auto repair, services and maintenance jobs in any location within our perimeter of operations.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups mobile mechanic companies, automobile maintenance, servicing and repair businesses in the United States) 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
Thomas Gusto Mobile Mechanic Services®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Thomas Gusto Mobile Mechanic Services®, LLC will generate income by going to any locations within our areas of operations as requested by our clients by offering the following auto maintenance, servicing and repair related services;
- Repairing and replacing automotive engines
- Performing general automotive repairs
- Power train repair services
- Brake repair services
- Scheduled and preventive repair and maintenance services
- Repairing trucks
- Repairing and replacing automotive exhaust systems
- Repairing and replacing mufflers
- Repairing automotive transmissions
- Repairing automotive brakes
- Performing automotive electric repairs
- Performing automotive wheel alignments
- Repairing automotive radiators
- Wheel alignment and repair services
- Other repair and maintenance services
10. Sales Forecast
One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to hire the services of mobile auto mechanic repair services providers to fix to fix their cars, vans, and trucks et al.
We are well positioned to take on the available market in the mobile mechanic maintenance, servicing and repair services line of business 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 our company to enviable heights.
We have been able to critically examine the mobile auto maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami Beach – Florida.
Below is the sales projection for Thomas Gusto Mobile Mechanic Services®, LLC. It is based on the location of our business and of course the wide range of mobile auto repair, servicing and maintenance services and target market;
- 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 offering same auto maintenance, servicing and repair 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
We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Thomas Gusto Mobile Mechanic Services®, LLC.
Our corporate goal is to grow Thomas Gusto Mobile Mechanic Services®, LLC to become one of the top 10 mobile mechanic maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Miami Beach – Florida but also in other cities in the United States of America where we intend marketing our services.
Thomas Gusto Mobile Mechanic Services®, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our mobile mechanic maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
- Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
- Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industries with the aim of networking and marketing our business
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate clients and individual clients in the whole of Miami Beach – Florida and other cities in the United States of America where we intend opening marketing our services which is why we have made provisions for effective publicity and advertisement of our company.
Below are the platforms we intend to leverage on to promote and advertise Thomas Gusto Mobile Mechanic Services®, LLC;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
- Install our Bill Boards on strategic locations all around Miami Beach – Florida
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of Thomas Gusto Mobile Mechanic Services®, LLC and the services we offer
- List our auto repair, servicing and maintenance business in local directories / yellow pages
- Advertise our mobile mechanic repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
12. Our Pricing Strategy
At Thomas Gusto Mobile Mechanic Services®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily hire our services for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Thomas Gusto Mobile Mechanic Services®, 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 Thomas Gusto Mobile Mechanic Services®, 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 all 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 our services.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, 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 a mobile mechanic repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Thomas Gusto Mobile Mechanic Services®, LLC in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- The amount required to purchase the needed trucks, mobile tool box and repair equipment – $50,000
- The amount required to purchase the needed software applications to run our business – $3,500
- Launching an official Website will cost – $500
- The amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (150,000) U.S. dollars to successfully set – up a medium scale but standard mobile mechanic repair, maintenance and servicing garage in the United States of America. Please note that the salary of workers for one month is part of the budget.
Generating Funds / Startup Capital for Thomas Gusto Mobile Mechanic Services®, LLC
Thomas Gusto Mobile Mechanic Services®, LLC is a business that will be owned and managed by Engr. Thomas Gusto and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has 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 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 Thomas Gusto Mobile Mechanic Services®, 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 our mobile auto maintenance, servicing and repair 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.
Thomas Gusto Mobile Mechanic Services®, 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 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 three 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 Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of repair and servicing tools and equipment: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed tool box, truck, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress