Auto Finance Business Plan [Sample Template]

Do you want to start an auto finance business and need to write a plan? If YES, here is a sample auto finance business plan template & feasibility report.

When looking to start an auto finance business, there is no substitute for a well-researched and quality business plan. All the resource you input in your plan will pay off later in lender responsiveness, investor attention and strategic confidence.

An effective auto finance company business plan is expected to include a comprehensive description of the business and its finances.

Since investors and lenders rely heavily on your business plan’s financial forecasts, fake numbers and vague forecasting are a sure way to sabotage your funding efforts. It is also important to see what the competition looks like. It is important to be aware of what the competition is doing.

Take the time to visit the competition to properly assess their strengths and weaknesses. Top auto manufacturers all over the world have consumer finance subsidiaries that originate loans and manage receivable portfolios valued in billions.

Auto companies generate revenue off the loans and also finance operations by bundling loans as collateral for asset-backed securities that are sold to investors. The performance of your auto finance company will always be dependent on the efficiency and effectiveness of your plans and operations.

A Sample Auto Finance Business Plan Template

1. Industry Overview

According to reports, the world automotive finance market size was valued at USD 220.18 billion in 2019 and is projected to show a CAGR of 6.7 percent increase from 2022 to 2026. The incorporation of attractive technology-specific features in the latest automotive parts and the use of good quality materials are leading to a rise in automotive sales, due to the growing customer base.

The steady investment in autonomous vehicles have gingered financing from credit unions, dealers, and banks, which is expected to fuel the market growth. Also, the number of automotive finance customers is growing massively due emerging trend of digitalization, a growing awareness in the use of online services, superior telematics, and advancements in block chain technology.

To quickly and easily obtain financing for new or used vehicles, customers now prefer finance providers who offer data-driven consulting services. These services help determine suitable vehicle as well as a financial scheme that best suits the interests and requirements of the consumers.

Over the decade, there have been significant advancement in the automotive industry owing to the development of highly automated digital vehicles. Innovative technologies are being proficiently deployed by automotive manufacturers and OEMs for increasing their customer base.

The constant use of predictive analytics by financers help customers in better decision-making and securing the best deal available in the market. Also, predictive analytics allows financers to personalize automotive finance packages to meet the needs of consumers.

Growth in the market is further driven by the implementation of new business models and development of inventive strategies by market players. They strive to explore emerging trends, such as electric vehicles and connected vehicle technologies.

Automotive finance provides the platform for middle-class individuals to easily buy or rent a vehicle of their choice, which is otherwise difficult for them due to budget constraints. It also allows customers to cancel their previously finalized deal with no financial penalty, if they find a better deal.

Top businesses in the industry are expected to introduce automotive finance as a smarter debt collection and recovery tactic to reduce default rates. Experts believe this will create new growth opportunities for the automotive finance market.

Meanwhile, due to growing environmental issues (as a result of increased pollution levels), certain automotive eco-monitoring regulations are being enforced by the U.S. government. And stringent regulations concerning credit provision are projected to hinder the market growth to a considerable extent.

Howbeit, automotive financiers are reframing their strategies for products and services and OEMs are modifying their operations for manufacturing eco-friendly vehicles.

2. Executive Summary

Fantastic Auto Loans (FANTOL) is a used car dealership that sells used makes and models. This company was established on January 1^st 2016. At FANTOL, we purchase cars at deep discounts from our local auction house, make the necessary repairs to bring them up to commercial standards, and pass its savings directly to our consumer.

We offer an outstanding shopping experience for customers in Forth Worth, Texas and surrounding areas by incorporating superior customer service and ethical business practices.

FANTOL is conveniently on a busy road located at Sundance Square. There is ample parking and visible signage to easily locate our facility. We also specialize in helping our customers access the best financing possible for the “right car”.

Where most car dealers either reject or manipulate customers with bad credit, we at FANTOL are able to approve nearly 90 percent of loan applicants through the credit company Wellsfargo. We also truce to uphold our strong ethical practices as we do not tolerate exorbitant rates that other dealers will exploit on uninformed clients.

At Fantastic Autos Loans, neither bankruptcy nor bad credit will prevent our customers from purchasing a quality vehicle at a fair price. All that is required is a monthly gross income of $2,100 and a valid driver’s license. In fact, since our inception in 2016, we’ve helped over 90 percent of our applicants secure excellent loans to purchase competitively priced cars.

It is precisely this ethical treatment of an otherwise open market segment in the Fort Worth community that has earned FANTOL an outstanding reputation. We plan to continue using these same tried and tested values to expand in our local market. According to reports, the market conditions in Fort Worth, Texas for used cars are projected to be extremely favourably.

The median income for a household in the city was $37,074, and for a family was $42,939. Males had a median income of $31,663 versus $25,917 for females. The per capita income for the city was $18,800. Although more traditional dealership models may shy from or exploit deep subprime and subprime credit customers, we at FANTOL plan tor embrace them.

We recognize the gap in our local market and have modelled our business to provide credit to even the riskiest credit consumer. To achieve this, we at FANTOL have partnered with Wellsfargo. The results have been outstanding as FANTOL customer’s default rate has been consistent below estimates, demonstrating a viable long term solution.

3. Our Products and Services

Fantastic Auto Loans (FANTOL) is a used car dealership that sells a breadth of used makes and models. We purchase cars at deep discounts from our local auction house, make the necessary repairs to bring them up to commercial standards, and pass its savings directly to our consumer.

We offer an outstanding shopping experience for customers in Forth Worth, Texas and help our applicants secure excellent loans to purchase competitively priced cars. Our other services include…

• Loan Origination

At FANTOL, we understand the importance of screening loan applicants as it impacts the revenue-generating potential of our company and that of our partners. If loan holders fail to make their payments and default on their debt obligations, bottom-line profit suffers.

During the application process, FICO Scores and credit histories are reviewed before loans are approved. Borrowers with poor credit histories are normally offered reasonable deals that fit their income.

• Loan Processing

Loan documentation is processed and stored according to government standards. This makes it critical for financing agreements to be carefully processed and inputted into databases efficiently. If loan documents are mixed up or inputted into computer applications incorrectly, customers may be improperly charged, and operations will suffer. Once processed, we maintain the loan account to keep cash flows steady.

4. Our Mission and Vision Statement

• Our vision at FANTOL is to establish a used auto dealership with a respectable gross margin in that meets the needs of our customers.
• At Fantastic Auto Loans, we are very dedicated to providing an unparalleled used car shopping experience.
• To offer excellent financing solutions and competitively priced vehicles to those that feel they are out of reach.
• To hold an impeccable reputation for integrity and honest business dealings in our local community.
• To become the destination for all used car purchases.

Our Business Structure

Ephraim Mismark will act as the company president for the first five years for a minimal salary of $38,000 in exchange for his commitment. He comes from a strong entrepreneurial background. He holds a bachelor’s degree in commerce and  has 6 years’ international business experience.

Ephraim started out as a manager at his father’s gas station and later became a managing partner. Soon after, John took his ambitions to Dubai, known as the business hub of the world. There he became a managing director and partner of Saddir enterprise, dealing with vehicles daily. He foresaw an opportunity to take his entrepreneur spirit to the next level.

In July of 2013, the conception of Mismark Motors became a reality. Mismark Motors specialized in purchasing cars from the US, uk and Japan. The car business venture did very well for John, and within a year, FANTOL opened its doors. After four years of owning and operating multiple successful dealerships, Ephraim set his ambitions for America, to come back home to pursue his passion here.

In October 2014, he successfully sold both of his car dealerships in Dubai and set sail for home. Since then, he hasn’t looked back. Aside Ephraim working as the company president, below are other professionals we plan to employ at FANTOL.

• President
• Garage Manager
• Human Resources and Admin Manager
• Sales and Marketing Manager
• Mechanics
• Information technologist
• Accountants/Cashiers
• Maintenance and Secretarial staff
• Cleaners

5. Job Roles and Responsibilities

President

• Boosts management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• In charge of fixing prices and signing business deals
• In charge of providing direction for the business
• Establishes, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Charged with signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• In charge of overseeing the smooth running of HR and administrative tasks for the organization
• Tasked with maintaining office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Makes sure operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• In charge of training, evaluation and assessment of employees
• In charge of arranging travel, meetings and appointments
• Oversee the smooth running of the daily office cum business activities

Garage Manager

• In charge of managing the daily activities in the car garage
• Ensures that proper records of cars are kept and the garage does not run out of cars
• Ensures that the garage facility is in tip top shape and cars are properly arranged and easy to locate
• Controls distribution and supply chain inventory
• Supervise the workforce in the car garage sales floor

Sales and Marketing Manager

• Takes care of external research and coordinates 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
• In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Mechanics

• Find out mechanical problems, often by using computerized diagnostic equipment
• Test parts and systems to ensure that they are working properly
• Repair or replace worn parts, such as brake pads and wheel bearings
• Disassemble and reassemble parts
• Use testing equipment to ensure that repairs and maintenance are effective
• Explain to clients the car problems and the repairs done on their vehicles
• Adhere to checklists to ensure that all critical parts are examined
• Do basic care and maintenance, including changing oil, giving tune-ups, checking fluid levels, and rotating tires

Information Technologist

• Manages the organization website
• Handles ecommerce aspect of the business
• In charge of 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

• In charge of preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• In charge of financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Tasked with developing and managing financial systems and policies
• Tasked with administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Maintenance and secretarial staff

• Makes sure that all contacts with clients (e-mail, walk-In centre, 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
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options

Cleaners

• Tasked with cleaning and washing all the cars in the garage at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the garage manager

6. SWOT Analysis

At FANTOL, we don’t underestimate the importance of due diligence and adequate research. For instance, when compared to other car market segments, the typical customers who purchased used cars had less income on average. The average annual income for used vehicle buyers was $48,004 compared with $72,992 for leases and $69,875 for new-vehicle buyers.

Among consumers that bought or leased a vehicle, 80.9 percent of lower wage earners are likely to purchase a used vehicle compared to 36 percent of those who lease or buy in the highest income quintile.

We also ascertained that down payments and monthly payment amounts influence whether the consumer will purchase a new or used car. With 76 percent of used-vehicle buyers paid down payments of $1,147 on average and only 30 percent of the amount that a new-vehicle buyer put for a down payment was $2,914 including new car incentives and discounts.

The maximum down payment was $8,500 for lessees, $37,000 for new-vehicle buyers, and $19,000 for used-vehicle buyers. The average monthly payment was $353 for lessees, $399 for new-vehicle buyers, and $273 for used-vehicle buyers. To further emphasize the importance of our findings, below is a summary of SWOT analysis in this industry.

• Strength

Generally, used car dealers are notorious for unethical sales practices. Customers are inherently cautious and untrusting as a result. The more we can provide a high-quality sales experience, the more successful we will be. All our salesmen will provide a friendly and personal experience for the buyer.

We will also follow up and ensure customer satisfaction. We will rely on these customers for an excellent reference to other car buyers. We at FANTOL plan to build an excellent working relationship with our suppliers and customers.

• Weakness

According to our swot analysis, our major weakness is that used cars are not yet popular due to the lack of trust in durability and state. Also since we are a new car dealership business in Fort Worth and we don’t have the financial capacity to compete with multi – million dollar dealers in the country, we might find it hard penetrating the market.

• Opportunities

The used car sales industry is continuing to grow at or above population increases. Vehicles are the second largest purchase most consumers make, and more people are buying new and used vehicles than ever. Relatively good margins have resulted in some success in the local used car industry

Used car sales in the area are still relatively average in size. Dealers have varying degrees of success based primarily on location, products, and the sales team assembled. Quality sales personnel are usually not adequately compensated for their services, and as a result they tend to move from one dealer to the next.

• Threat

Just like any other business, one of the major setbacks that we are going to face at FANTOL will be convincing people to patronize our services. But we believe that the opportunity we have in this industry far outweighs this threat. Another threat that might befall our business according to our SWOT analysis will be the arrival of a new car dealership outlet in the same location where ours is located and even online.

7. MARKET ANALYSIS

• Market Trend

At FANTOL, we’re bound to be affected by forces and trends in the market, which include…

Simple, Streamlined Online Financing Environments 

Right before the internet, customers trusted auto lenders to offer them the fairest loan structures possible. After all, it was all but impossible for customers to compare loans without going through a long application process with multiple lenders.

But in this modern era, customers can access this information online within seconds. With a little internet sleuthing, they can estimate the terms of a loan with a fairly high degree of accuracy. Customers are savvier than ever and want to feel like part of the decision-making process from the start.

The more reason modern lenders need streamlined, reliable online systems and loan origination software (LOS) for structuring loans. This has benefits for both customers and lenders.

• Customers benefit from online auto financing application systems that give them a quick answer. They want to know whether they’re eligible for a loan and don’t want to wait days or weeks for a final decision.
• Lenders benefit from faster processing and response times. Automated decisions and loan structuring enables them to approve or deny online applications within minutes.

Artificial Intelligence and Machine Learning for Auto Lending

The use of artificial intelligence (AI) and machine learning algorithms to structure loans is another trend we consider greatly at FANTOL. In the past, these features were very expensive and required a complete overhaul of the IT strategy and infrastructure.

Now, we can easily leverage this innovative technology in the cloud with help from experienced LOS vendors. Artificial intelligence and machine learning enable auto lenders to assess risk and identify ideal borrowers with incredible accuracy. This technology learns from historical data to predict the likely outcome of any given loan. Lenders can use this technology to:

• Determine whether an applicant is likely to be delinquent or fraudulent;
• Assess creditworthiness using both traditional credit data and alternative credit data;
• Calculate collateral value;
• Accurately value used vehicles based on historical data;
• Identify target audiences for certain types of auto loans (e.g. used cars or new vehicles);
• Track capture ratios and approval rates to meet key performance goals;
• Conduct customer surveys to identify hidden bottlenecks in the system; and
• Predict customer behaviour and offer vehicles that customers actually want.

Moving to Subscription and Shared-Ownership Models

Another trend is subscription and shared-ownership car loans. Years ago, the only option that customers had was to finance a single car from a lender. This structure didn’t work for every customer, especially those who rarely drive or subprime borrowers who can’t afford a traditional car loan.

People who live in large cities feel especially frustrated by a lack of diverse car loan options. As major cities in the united states grow, available parking also grows scarcer. Additionally, bumper-to-bumper traffic discourages many residents from driving at all.

For these reasons, many city residents are looking to provide rideshare services, move to a subscription lending model, or even share car ownership. A rideshare service is a way for car owners to provide rides to people who don’t own cars in exchange for payment. We are looking into providing different types of loans for customers who perform rideshare services, as these.

8. Our Target Market

Everyone needs a car, some even two or more cars. Owing to the recent success of the new car market, there is a large inventory of used cars available for re-sale. Our market will consist of four basic segments; students, retired, families, and singles. First, students will include high school and college age students who need a safe and economical car.

We believe that this group is concerned with price, flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for fewer cars. They will also buy cars more often than others, on average every two to three years.

Secondly, the retired group will focus more on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years. Thirdly, the family segment will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor.

They will shop around and educate themselves on vehicles, shopping for a specific make or model. Lastly, the singles are similar to the students in that they want flashily cool cars, but may be working professionals who can afford to pay more for a higher-quality vehicle.

Our Competitive Advantage

FANTOL will be located on a prime lot right off Sundance Square, which runs through the heart of downtown Fort Worth. We boast of a very easy to navigate website with an online credit approval form that is linked to the business email.

FANTOL will cater heavily to potential customers with bad credit that have been rejected for car loans everywhere else due to lack of credit or significant down payment. The approval success rate is over 90 percent and adding to a large customer referral base. We plan to leverage the following advantages:

• Little or no down payment required to purchase
• Ease of credit access
• Ability to service the Deep-Subprime and Subprime used cars consumers market
• Liabilities are held with Wellsfargo
• Large inventory of cars on our website for easy viewing, with inventory updated every few days.
• Located in prime busy location on a main street in Fort Worth, Texas.

9. SALES AND MARKETING STRATEGY

• Source of income

Most of our inventory will be bought in advance to stock the showroom floor and to outfit company worker. FANTOL is expected to grow in sales at a rate of 14 percent per month, starting from the conservative estimate of twelve cars sold.

We will generate revenue by originating loans and managing receivable portfolios. We will generate revenue off the loans and also finance operations by bundling loans as collateral for asset-backed securities that are sold to clients.

10. Sales Forecast

We at FANTOL expect our normal monthly running costs per month, which include our full payroll, lease, marketing, utilities, and an estimation of other running expenses to remain consistent. We expect sales to rise at a slow rate per month for each product in the first year.

From June through September we expect minimal growth during our start-up period. October through December we expect decreased sales due to historical trends, and depreciation in value based on less demand. February through August we expect increased sales growth again.

in 2023 and 2022, we expect solid steady sales growth as industry experts claim a larger market share. We expect increased sales in lower-priced vehicles, and this will be our primary product that yields the highest margin. At FANTOL, we feel this sales forecast is realistic based on the market analysis of similar businesses performance.

The opportunities for used car sales have increased with the high sales of new vehicles, increasing the number of quality late model used vehicles in the market. More new car buyers directly affect the number of used cars available. The current low interest rates also have a positive impact on the high-end vehicle purchases.

The population growth in the area creates a need for more vehicles as well. Meanwhile, the risks involved with this forecast include technology and the need for low impact environment friendly transportation.

Older used cars tend to be less efficient, and will become less popular. Current hybrid vehicles are priced extremely high, and car makers have not found an economical answer for consumers. We estimate conservative earnings from selling extended warranties and from selling loans.

• Marketing Strategy and Sales Strategy

At FANTOL, we will implement a strategy that treats customers as a community. This means our marketing resources will be centered on advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

• Budget and Direction

Our marketing budget will not exceed ,000 per year and all marketing strategies will be consistent with the Mission Statement and support the following objectives:

• 100 percent customer satisfaction, measured through repeat customers, referrals and surveys.
• To achieve a respectable profit margin within the first three-years.
• To achieve a healthy net profit by year two.

Networking

As with any service oriented business, FANTOL will benefit from developing business relationships by participating actively in community events. We will also attend a variety of events to gauge prospective clients, including fairs and trade shows.

• Word of mouth

Referral marketing will be an integral part in maintaining long lasting relationships and increasing brand awareness. Current clients will increase leads by word of mouth advertising, which is considered the most effective and trustworthy form of advertising.

• Internet

Independent sites drive roughly half (45 percent) of all dealer walk-in traffic by the internet, followed by dealer sites (32 percent), search sites (14 percent), manufacturer sites (6 percent) and other sites (3 percent). FANTOL will be heavily advertising on well-known internet sites that potential buyers frequent including Craigslist, Facebook and Yelp.

11. Publicity and Advertising Strategy

Promotion strategies will differ depending on the target market segment. Due to the importance of word-of-mouth/referrals among all market segments when choosing a used auto dealership, we have put together plans to create awareness, stimulate trial, and build referrals.

A cost effective campaign, focused on direct marketing, publicity, Internet web page, and advertising is being proposed. Our publicity and advertising strategy was effectively and carefully designed to communicate our brand. Below is how we plan to promote FANTOL;

• Put adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Make use of the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Make sure we position our banners and billboards in strategic positions all around Fort Worth
• Share our fliers and handbills in target areas in and around Fort Worth
• Advertise our used cars dealership 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 wear our branded shirt or cap at regular intervals

12. Our Pricing Strategy

At FANTOL, our pricing strategy will be based on competitive values (wholesale and retail) plus vehicle handling fees. We will not exceed competitive retail prices, and will attempt to sell at wholesale plus a fair profit, generally 15-25 percent.

We strongly believe that quality and price say a lot about our vehicles. The vehicles that are rare or not readily available to meet demand will be priced accordingly. The average industry mark-up for similar vehicles is 20-30 percent.

• Payment Options

For both business and consumer clients, FANTOL will be well positioned as a used car sales and financing company. But unlike products which are produced, then distributed and sold, car sales are produced and consumed simultaneously in a real-time environment.

This is why we plan making the services available in a convenient manner to the most number of potential clients. FANTOL will maintain extended hours and meet with clients in their home or office, whichever is more convenient. This flexibility is especially attractive to elderly customers. Car buyers can contact FANTOL by telephone, fax, and e-mail.

We also anticipate a 20 percent markup over car obtained from dealer auctions and fleet companies. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

13. Startup Expenditure (Budget)

At FANTOL, with a diverse workforce and well experienced board members, we hope to create a classic business that will invest residual profits into the company expansion. We went through a great deal of hurdles to estimate our startup costs and overheads for the next three years.

It is believed that all new entrants in the industry operate with negative profits through the first two years. We at FANTOL plan to avoid that kind of operating loss by understanding our markets, our competitors, industry direction, and the products we sell. Outlined below are the ways we plan spending our start-up cost;

• The Total Fee for Registering the Business in Cincinnati: $900.
• The budget for insurance, permits and license: $10,000
• The Amount needed to acquire a suitable Facility for 6 months in Oklahoma (face lifting of the facility inclusive): $75,000.
• The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $20,000.
• The Cost for Equipment: $15,000
• The Cost for inventory : $3,000,000
• The Cost of Launching a Website: $900
• Our marketing and publicity budget – $250,000
• The cost for our opening party: $6,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $7,000

From our detailed analysis above, we will need $3,384,800 to start FANTOL. We have also put plans in place to be able to raise the funds and capital.

Generating Funding/Start up for FANTOL 

FANTOL is owned by Ephraim Mismark and he will be the sole financial of the business which is why sourcing of the startup capital for the business have been restricted to just three major sources.

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate part of the capital from the bank (loan facility).

Note: Ephraim Mismark have been able to raise $2,000,000 ($1,600,000 from the sale of his two car dealership businesses and $400,000 from his friends and family as soft loan), and we are at the final stages of obtaining a loan facility of $1,000,000. We have verified all the necessary procedures to actualize or get our startup cost.

14. Sustainability and Expansion Strategy

Our strategy to build customer sales includes telemarketing, encouraging and rewarding present clients to refer future clients. Sales programs will include sales awards for the highest sales, bonuses, and customer service awards for those employees who best exemplify Integrity’s commitment to customers.

At FANTOL, we will provide quarterly training and educational opportunities by sending employees to professional development training for their respective areas. We also depend on our alliance with local new car dealers and auction houses to maintain our inventory. This relationship is crucial to our success and will be placed ahead of petty differences.

We plan to make sure that all financial relations with these groups will be handled in a timely and accurate manner. We need to make sure that the personnel, and especially the ownership, of our allies are aware of our support and reciprocation. We will also depend on outside sources for professional development of our sales staff.

We focus on providing for the average car buyer first. Our focus will be on those most likely to purchase low-end, low-cost vehicles (highest profit margin). The students, families, retired, and singles have very different needs and wants. We will focus on each group separately, and prioritize our efforts.

We will look at every customer as a potential repeat customer, reference, or spokesperson for other car buyers. Also objectives have been set for FANTOL so that actual performance can be measured against them. Each subsequent year, new objectives will be set for these benchmarks, and actual performance will be measured against them.

If actual performance falls short of objectives, investigation will be made into the cause, and plans will be adjusted accordingly. We at FANTOL will keep track of the source of all new clients so as to measure the effectiveness of each type of promotion. Each subsequent year’s budget should adjust spending accordingly.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank 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
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the startup capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress