Are you about starting a car accessories store? If YES, here’s a complete sample car parts & accessories business plan template & FREE feasibility report.
Okay, so we have considered all the requirements for starting a car accessories store business. We also took it further by analyzing and drafting a sample car accessories store marketing plan template backed up by actionable guerrilla marketing ideas for car accessories stores. So let’s proceed to the business planning section.
In as much as people still use automobiles, car accessories and auto spare parts will continue to be in demand. The car accessories and auto spare parts store business is indeed a profitable business because the replacement of damaged or worn – out auto parts and car accessories is compulsory if you want your vehicle to continue to be on the road and serve the purpose you bought it for.
If you are looking for a business to start as an entrepreneur and you know you have got an interest in the automobile industry, then you should consider starting your own car accessories store business.
Although you don’t need a college degree to establish your own car accessories and auto spare parts store, but you would need some form of informal training, you may have to work as an apprentice with someone who owns a car accessories and auto spare parts store. It makes it easier for you to learn the ropes on how to manage your own car accessories and auto spare parts store.
It is important to point out that the car accessories and auto spare parts store business is one business that can’t go out of fashion- this is because of the role it plays in the auto industry.
Depending on the scale you are looking to start, the startup capital for this type of business can be considered to be moderate. As a matter of fact, you can start your own car accessories and auto spare parts store and then grow it big within a short period of time by re–investing your profits back to the business.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan. Below is a sample car accessories store business plan template that will help you successfully write yours without much stress.
A Sample Car Parts & Accessories Store Business Plan Template
1. Industry Overview
The auto parts stores industry includes stores/shops that retail new and used automotive parts and car accessories, repair automobiles and install automotive accessories.
Players in this industry can choose to operate a single store in just one location or chains of stores in several locations scattered all across the united states of America. As a matter of fact, auto stores can be found in all parts of the world as long as there are automobiles there.
IBISWorld projected that the Auto Parts Stores industry is expected to grow slowly over the five years to 2016. It stated that per capita disposable income and corporate profit boosted the demand for auto parts. Furthermore, favorable car usage trends have led to growth in demand for industry products in the short term.
Nevertheless, advancements in motor vehicle technology have made it increasingly difficult for vehicle owners to repair and maintain vehicles without professional help. Going forward, the revenue generated by operators in the industry is expected to grow at the same pace as the previous period.
As the national level of per capita disposable income continues to rise, some consumers will increase their spending on maintaining and fixing their automobiles hence the increase in demand for products and services from the Auto Stores industry.
The Auto Parts Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics has it that in the United States of America alone, there are about 43,136 registered and licensed auto spare parts stores scattered all across the United States responsible for directly employing about 376,102 people and the industry rakes in a whooping sum of $56 billion annually.
The industry is projected to grow at 1.9 percent annual growth within 2011 and 2016. It is important to state that Advance Auto Parts, AutoZone Inc., Genuine Parts Company and O’Reilly Automotive Inc have the largest chunk of the available market share in the industry.
A close observation of the Auto Parts Stores industry shows that the industry has low barrier to entry. In the United States, the industry is subject to few restrictive regulations, and industry employees typically do not need to be trained formally to be able to carry out their duties.
The truth is that the startup capital for opening an auto parts store especially when it involves establishing a standard auto parts store with products from various automobile companies is intensive. But if you choose to start a spare parts store like the average mom and pop business, then you would not have to stress yourself because you will only need minimal startup capital to launch the business.
The tough part as it relates to start-up costs is the need to establish a supply of auto parts from wholesalers or directly from auto parts manufacturing companies. This is so because an auto parts business cannot be started without sourcing products for sale.
Regardless of low barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.
Lastly, the auto spare parts industry is pretty much open for aspiring entrepreneurs to launch their business in the industry.
One good thing about car accessories and auto spare parts stores business is that the business can be opened in any part of the United States and if proper market survey and feasibility studies are conducted, then you can be rest assured of the profitability of the business.
2. Executive Summary
Ken Garland® Car Accessories Stores, Inc. is a standard and registered car accessories and auto spare part store that will be located in one of the busiest streets in Charleston – South Carolina.
We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard car accessories and auto spare part store that we intend launching and the facility is located in a corner piece along a major road close to one of the largest residential estates in Charleston – South Carolina.
Ken Garland® Car Accessories Stores, Inc. will retail bumpers and parts, airbags, HVAC, interiors and seatbelts, brake systems, gear boxes, clutches and parts, drive axles and differentials, steering systems and wheels, mufflers, exhausts and radiators, and electrical systems et al from different manufacturers (brands) from the United States and abroad. We are set to service a wide range of clientele in and around Charleston – South Carolina.
We are aware that there are several large and small chains of car accessories and auto spare parts store outlets all around Charleston – South Carolina, which is why we spent time and resources to conduct thorough feasibility studies and market survey so as to be well positioned to favorably compete with our competitors. We have an online – service option for our customers, and our outlet is well secured with various payment options.
Ken Garland® Car Accessories Stores, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions that directly affect them.
Ken Garland® Car Accessories Stores, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our community and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs completely whenever they patronize our products. We will cultivate a working environment that provides a sustainable approach to earning a living.
Ken Garland® Car Accessories Stores, Inc. is a family business that is owned by Kennedy Garland and his immediate family members. Kennedy Garland has a Diploma in Automotive Technology, with over 5 years’ experience in the retail stores industry, working for some of the leading brands in the United States.
Although the business is launching out with just one outlet in Charleston – South Carolina, but there is a plan to open other outlets all around major cities in the United States and Canada.
3. Our Products and Services
Ken Garland® Car Accessories Stores, Inc. is in the car accessories and auto spare parts stores industry to service a wide range of clients and of course to make profit, which is why we will ensure that we go all the way to make available a wide range of car accessories and auto spare parts from top manufacturing brands 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;
- Bumpers and parts
- Airbags, HVAC, interiors and seatbelts
- Brake systems
- Gear boxes, clutches and parts
- Drive axles and differentials
- Steering systems and wheels
- Mufflers, exhausts and radiators
- Electrical systems, car stereos
- Engines parts, batteries and tires
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the car accessories and auto spare parts stores industry in South Carolina and to establish a one stop car accessories and auto spare parts store in Charleston – South Carolina and in other key cities in the United States of America and Canada.
- Our mission is to establish a world – class car accessories and auto spare parts retail store business that will make available a wide range of car accessories and auto spare parts from top manufacturing brands at affordable prices to the residents of Charleston – South Carolina and other key cities in the United States of America and Canada where we intend opening chains of car accessories and auto spare parts retail stores and franchise.
Our Business Structure
Ken Garland® Car Accessories Stores, Inc. do not intend to start a car accessories and auto spare parts retail store business like the usual mom and pop business around the street corner; our intention of starting a car accessories and auto spare parts retail store business is to build a standard and one stop car accessories and auto spare parts retail store outlet in Charleston – South Carolina.
Although our car accessories and auto spare parts retail store business might not be as big as Advance Auto Parts, AutoZone Inc., Genuine Parts Company and O’Reilly Automotive Inc et al, but we will ensure that we put the right structures in place that will support the kind of growth 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)
- Store Manager
- Human Resources and Amin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountant /Cashiers
- Sales Agents/Customer Services Executive
- 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 opinion; 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
- 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 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
- Defining job positions for recruitment and managing interviewing process
- Carrying 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 cum business activities
Store Manager:
- Responsible for managing the daily activities in the store
- Ensures that proper records of car accessories and auto spare parts are kept and the 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 car accessories and auto spare parts distribution and supply chain inventory
- Supervises the workforce in the car accessories and auto spare parts sales floor
Merchandize Manager
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of bumpers and parts, airbags, HVAC, interiors and seatbelts, brake systems, gear boxes, clutches and parts, drive axles and differentials, steering systems and wheels, mufflers, exhausts and radiators, and electrical systems et al 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, writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyzes the volume of transactional data generated by customer purchases
- Identify, prioritize and reach out to new partners and business opportunities
- 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 communicates with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represent the company in strategic meetings
- Help 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 management 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
- Ensuring 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
- makes suggestions and encourages purchase of products
- Provide information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
- Bag or package purchases and gift wrap merchandise
Cleaners:
- Responsible for cleaning all the car accessories and auto spare parts 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 intention of starting just one outlet of our car accessories and auto spare parts retail store in Charleston – South Carolina 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 South Carolina and key cities in the United States and Canada.
We are quite aware that there are several car accessories and auto spare parts retail stores all over Charleston 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 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.
Ken Garland® Car Accessories Stores, 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 goals and objectives.
This is the summary of the SWOT analysis that was conducted for Ken Garland® Car Accessories Stores, Inc.;
- Strength:
Our location (our business will operate both physical and online store), varieties of payment options, wide range of car accessories and auto spare parts from different manufacturing brands and for different vehicles and our excellent customer service culture will definitely count as a strong strength for Ken Garland® Car Accessories Stores, Inc. Our team of highly qualified staff is also a plus for us.
- Weakness:
A major weakness that may count against us is the fact that we are a new car accessories and spare parts retail store outlet in Charleston – South Carolina and we don’t have the financial capacity to compete with multi – million dollars car accessories and auto spare parts retail store outlets like Advanced Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co when it comes to retailing all their car accessories and auto spare parts at rock bottom prices.
- Opportunities:
The fact that we are going to be operating our car accessories and auto spare parts retail store in a corner piece property along a major road close to one of the largest residential estate in Charleston – South Carolina provides us with unlimited opportunities to sell our car accessories and auto spare parts to a large number of individuals and corporate organizations that own automobiles and also automotive repair garages.
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 car accessories and auto spare parts store outlets; we are well positioned to take on the opportunities that will come our way.
- Threats:
Just like any other business, one of the major threats that we are likely 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 car accessories and auto spare part outlet in the same location where ours is located. unfavorable government policies may also pose a threat to businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
Experts projected that in 2017, the car accessories and auto spare parts stores industry is expected to profit from growing global economic conditions. Per capita income levels have scaled across the globe and the growing middle class in emerging economies have looked to purchase their own cars. As the demand for new automobiles increase, original equipment manufacturers supply more components to industry operators.
Resurgence in demand for new automobiles has stimulated industry profit, as operators were able to increase sales. Steady growth in economic conditions will create avenues for consumers to release pent-up demand for cars, hence the increase in demand for upstream supplies
If you are conversant with the car accessories and auto spare parts stores Industry, you will quite agree that the original equipment refers to motor vehicle parts and accessories that are manufactured to the specification of motor vehicle manufacturers. These standards are global and motor vehicle manufacturers typically source the same parts from different suppliers.
Even though these parts and accessories are manufactured by companies in the industry, original equipment carries the name of the final vehicle assembler. For example, electronic systems manufactured by Delphi and used in GM vehicles would carry the GM brand name.
Lastly, in recent time, the car accessories and auto spare parts retail stores landscape has seen tremendous changes in the last 20 years; it has grown from smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a car accessories and auto spare parts retailer to reach out to a larger market far beyond the areas where his physical store is located.
8. Our Target Market
Those who patronize car accessories stores cut across all genders; male and female above 18 years with the financial means and who own automobiles, hence the target market for the car accessories and auto spare parts store business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who own automobiles.
In view of that, we have positioned our car accessories and auto spare parts retail store to service the residents of Charleston – South Carolina and every other location where franchise cum outlets of our car accessories and auto spare parts retail stores 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 car accessories and auto spare parts to the following groups of people and corporate organizations;
- car owners
- Auto repair, maintenance and servicing garages
- Car garages/shops
- Transport companies
- Haulage companies
Our competitive advantage
A close study of the car accessories and auto spare parts stores 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 stiff competition and we are well prepared to compete favorably with other leading car accessories and auto spare parts retail stores in Charleston – South Carolina and throughout the United States and Canada.
Ken Garland® Car Accessories Stores, Inc. is launching a standard one stop car accessories and auto retail store that will indeed become the preferred choice of residents of Charleston – South Carolina and every other location where our outlets will be opened.
Our car accessories and auto spare parts retail store is located in a corner piece along a major road close to one of the largest residential estates in Charleston – South Carolina. We have enough parking space that can accommodate well over 10 cars per time.
One thing is certain; we will ensure that we have a wide range of car accessories and auto spare parts from leading manufacturers available in our store at all time. It will be difficult for customers to visit our store and not see the type of car accessory or auto spare parts they are looking for. One of our business goals is to make Ken Garland® Car Accessories Stores, Inc. a one stop car accessories and auto spare part retail shop. 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 (startup car accessories and auto spare parts 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
Ken Garland® Car Accessories Stores, Inc. is in business to retail a wide range of car accessories and auto spare parts to the residents of Charleston – South Carolina. We are in the car accessories and auto spare parts retail stores industry to maximize profit and we are going to go all the way out to ensure that we achieve our business goals and objectives.
Our source of income will be the retailing of a wide range of car accessories and auto spare parts at affordable prices.
Ken Garland® Car Accessories Stores, Inc. will generate income by selling the following products;
- Bumpers and parts
- Airbags, HVAC, interiors and seatbelts
- Brake systems
- Gear boxes, clutches and parts
- Drive axles and differentials
- Steering systems and wheels
- Mufflers, exhausts and radiators
- Electrical systems, car stereos
- Engines parts, batteries, and tires
10. Sales Forecast
One thing is certain when it comes to car accessories and auto spare parts retail stores, if your store is well stocked with various types of car accessories and auto spare parts 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 Charleston – South Carolina and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow the business and our clientele base.
We have been able to critically examine the car accessories and auto spare parts retail stores 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 Charleston – South Carolina.
Below are the sales projections for Ken Garland® Car Accessories Stores, Inc. it is based on the location of our business and other factors as it relates to startup car accessories and auto spare parts retail stores 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 within our market space. 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 Ken Garland® Car Accessories Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of Charleston – South Carolina. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the car accessories and auto spare parts retail stores 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 Charleston – South Carolina.
In other to continue to be in business and grow, we must continue to sell the car accessories and auto spare parts that are available in our store which is why we will go all out to empower our sales and marketing team to deliver. In summary, Ken Garland® Car Accessories Stores, Inc. will adopt the following sales and marketing approach to win customers over;
- Position our signage/flexi banners at strategic places around Charleston – South Carolina
- Make use of attractive hand bills to create awareness and also to give direction to our store
- Ensure that we have a wide range of car accessories and auto spare parts from different brands at all times.
- Introduce our car accessories and auto spare parts store by sending introductory letters alongside our brochure to car owners, auto repair, maintenance and servicing garages, transport companies and haulage companies and other key stakeholders in Charleston – South Carolina
- Open our store in a grand style with a party for all
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our car accessories and auto spare parts retail store
- 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)
- Join local chambers of commerce and industries to network and market our products
11. Publicity and Advertising Strategy
Despite the fact that our car accessories and auto spare parts retail 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 sporting goods retail store.
Ken Garland® Car Accessories Stores, Inc. has a long-term plan of opening outlets in various locations all around South Carolina and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston 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 Ken Garland® Car Accessories Stores, Inc.;
- Place adverts on community based newspapers, radio 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 we position our banners and billboards in strategic positions all around Charleston – South Carolina
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact car owners, auto repair, maintenance and servicing garages, transport companies and haulage companies by calling them up and informing them of Ken Garland® Car Accessories Stores, Inc. and the products we sell
- Advertise our car accessories and auto spare parts retail 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 car accessories and auto spare part retail stores, it is normal for consumers to go to places (car accessories and auto spare parts retail outlets) where they can get car accessories and auto spare parts at cheaper price which is why big player in the car accessories and auto spare parts stores industry like Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with Advance Auto Parts, AutoZone Inc., Genuine Parts Company, O’Reilly Automotive Inc and co but we will ensure that the prices and quality of all the car accessories and auto spare parts that are available in our store are competitive with what is obtainable amongst car accessories and auto spare parts stores within our level.
- Payment Options
The payment policy adopted by Ken Garland® Car Accessories Stores, 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 Ken Garland® Car Accessories Stores, Inc. will make available to her clients;
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for our car accessories and auto spare parts 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 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 materials 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 car accessories and auto spare parts retail store business; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our start–up capital on;
- The total fee for registering the business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Ken Garland® Car Accessories Stores, 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.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The 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 car accessories and auto spare parts from different manufacturing brands) – $350,000.
- The cost for counter area equipment – $9,500.
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750.
- The 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 standard car accessories and auto spare parts retail store in Charleston – South Carolina. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Generating Funds/Startup Capital for Ken Garland® Car Accessories Stores, Inc.
Ken Garland® Car Accessories Stores, Inc. is a private registered business that is solely owned and financed by Kennedy Garland 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 documents 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 number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Ken Garland® Car Accessories Stores, 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 car accessories and auto spare parts 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.
Ken Garland® Car Accessories Stores, 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 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 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 car accessories and auto spare parts: In Progress