Example:

Carla’s Auto Repair Business Plan

1.0 Executive Summary

Carla’s Auto Repair is focused on delivering top-quality work to individuals and businesses,
paired with superior customer experience. We are the only woman-owned auto repair shop in
Sacramento’s Midtown area, and we’re committed to delivering affordable, high-quality auto
repairs and maintenance. We pride ourselves on ensuring that every customer feels completely
satisfied with their service and enjoys clear, respectful treatment and communication during
every interaction.

Carla’s Auto Repair was founded by Carla Robinson, an ACE-certified mechanic with a
background in engineering. After earning a degree in engineering and working at a local
transportation company for over a decade, Carla decided to make a career change and return to
the two things she loved the most: helping people and working on cars. Car repair and
restoration has been her passion since she helped her father restore old classics as a child.

1.1 Description of Business

Carla’s Auto Repair is a Limited Liability Company (LLC), founded by Carla Robinson in 2017.
As the owner, Carla handles repairs, orders, customer service, billing, vendors and accounting.
She is currently supported by one part-time apprentice and a part-time office support staff
member. We have a core base of skilled contract mechanics we rely on during busy season
We lease a well-maintained garage with a small office and seating area. The value of our
machinery and equipment currently totals $35,000

1.2 Sponsorhe is the ma

Carla’s Auto Repair is a partnership owned business.joel is the founder of the business,he is the
majority owner.job,juma luiz,all holds minority stock positions as private investors.

Highlights
Carla’s Auto Repair:

- Delivers a highly personal customer experience, backed by a 5-star online rating

- Provides hassle-free service paired with fast turnaround
- Provides reliable, fast and convenient auto services for domestic and foreign cars
 - Offers highly competitive prices due to excellent relationships with vendors
- Features an owner with a degree in engineering, 10 years of experience as a leader and
engineer, decades of experience working on cars and 5 years of industry experience
- Staffs a highly skilled apprentice
- Serves the greater Sacramento area
- Is the only female-owned auto repair business in Midtown Sacramento
- Has seen an increase in revenue since it opened in 2017

Historical and projected revenue for 2017-2020

Objectives and Strategies

Carla’s Auto Repair opened in January of 2017 and has seen a steady increase in sales
revenue since that time. We will continue to increase sales revenue through outstanding
service, fast turnaround and excellent relationships with suppliers, which helps us to keep costs
low. A primary focus of growth is our business services, which has expanded from $1,800 per
month in July of 2017 to $3,750 in June of 2019.

Primary business goals include:

- Continue to increase revenue and our customer base

- Continue to provide industry-leading customer service
- Expand the number of businesses we serve from two to four by 2020
- Increase our advertising budget in Oct 2019 to expand business contracts
 - Promote our skilled apprentice to full-time in January of 2020
- Long-term goal is to purchase own shop in 10 to 15 years

Vision Statement
Carla’s Auto Repair will continue to deliver superior-quality auto repair and maintenance
services, with quick turnaround, low rates, and the most personal, highly rated customer service
experience available in the greater Sacramento area.

Mission Statement
At Carla’s Auto Repair, we take the time to listen to the concerns of every customer and to walk
them through the necessary and recommended repairs for their vehicle. We’re proud to service
the vehicles of individuals and renowned local businesses, delivering safe, affordable, superb-
quality service so they can rest assured their cars will run reliably. We’re dedicated to expanding
our business to provide excellent service to a greater range of customers, all while maintaining
the personal feel that sets this woman-owned business apart.

Company Values
Carla’s Auto Repair is dedicated to the community we serve. We operate with:

● Honesty. We’re upfront about costs, timelines and all of the repair options available.
● Respect. Our main goal is to deliver a respectful, positive experience to every customer;
this personalized approach sets us apart from other shops.
● Experience. Our business is built on years of industry experience and a lifetime of
engineering and car restoration experience.
● Commitment. We’re dedicated to ensuring 100% customer satisfaction with every job;
nothing else will do.
● Safety. We know our customers rely on their vehicles to get to work, drive their kids to
school or to cover their delivery route for the day; that’s why we use only the most skilled
mechanic and apprentice along with the highest-quality materials.
● Reliability. When customers use our service, they can expect the same superb quality
materials, service and communication every time.

Business Opportunity
Customers have a lot of auto shops to choose from in the Sacramento area, but among those,
we are one of the only woman-owned and operated businesses. We also receive the highest
online ratings of any auto shop in the Midtown area, plus we have a 99% satisfaction rate as
shown on a recent customer survey. We know that many people feel intimidated discussing
repairs with their mechanic; not at our business. Anyone can bring in their vehicle and expect
nothing but respectful, clear and personal communication before, during and after their car is
serviced.
Individual clients form a critical part of our business. Yet local businesses provide a unique
opportunity for us to grow and expand. We currently have ongoing contracts to service the
trucks of Justine’s Bakery and C & L Construction. With the financial and population growth in
the Sacramento area, more and more businesses are in search of an auto service they can
trust; we see this as a key area of opportunity for our business.

Our primary customers are:

- Middle-income individuals and families in need of ongoing maintenance and repairs

- Small- to medium-sized businesses that rely on business vehicles for deliveries or
employee transportation

Because there are a large number of auto shops in the area, demand is high for auto supplies
and suppliers can set prices high accordingly. As a result of long-standing relationships with two
of the top suppliers nearby, we’re able to access high-quality supplies more affordably, a
savings we pass on to customers.

Certifications include:
Owner is Automotive Service Excellence (ASE) certified
Automotive Service Association (ASA) member
Registration with the Bureau of Automotive Repair in California
General Sacramento County Business License
CA Brake Station/Brake Adjuster Registration
CA Automotive Repair Dealer License
CA Lamp Station/Lamp Adjuster

Hours of Operation
Monday Closed
Tuesday 8:30 AM – 5:30 PM
Wednesday 8:30 AM – 5:30 PM
Thursday 8:30 AM – 5:30 PM
Friday 8:30 AM – 5:30 PM
Saturday 9:00 AM – 4:00 PM
Sunday Closed

Location
We’re centrally located within the bustling area of Midtown Sacramento, within walking district of
countless businesses, cafes, restaurants and residences. We’re close to freeways and public
transportation, making us easily accessible to individuals and local businesses in need of
service.

Interior
Carla’s Auto Repair shop features a 700-square foot garage with two bays, plus a small office
area and a small waiting area with snacks for sale, seating and a water dispenser/coffee
machine for customers. There is one regularly maintained restroom for customers and staff.

Equipment throughout the shop is top-quality and the facilities are kept clean. The waiting area
is comfortable and up-to-date. The office space is functional, although it would be nice to make
reasonable improvements to it in the future, as we do discuss repairs and handle transactions
there and it hasn’t been updated in some time. We have landlord permission to make moderate
improvements or adjustments to the space as needed.

Products and/or Services

At Carla’s Auto Repair, we cover a range of service needs, from computer diagnostics to battery
replacement and beyond. Common services include:

- General auto repair

- Brake repair
- Electrical systems
- Engine diagnostics
- Drivelines
- Battery testing and replacement
- Drive train repairs

We use top-quality supplies from the leading auto parts suppliers in the greater Sacramento
area. Because we have established relationships with those suppliers, we are able to get
excellent prices on the best parts available. This means a safer, longer-lasting repair for
customers at a better price. We pair this quality with excellent service from a skilled and highly
trained mechanic.

Customer Service
At the core of every service provider and customer relationship is trust. We are dedicated to
earning that trust through clear communication and in-depth explanation of proposed repairs. At
the close of every job, we survey customers about their experience to consistently improve how
we do business. Many clients appreciate relying on a woman-owned and operated auto shop,
the only one of its kind in the Midtown area.

Our auto shop is friendly and inviting; it features a comfortable waiting area with magazines,
free coffee and water, a clean restroom and snacks for sale; many customers enjoy the option
to wait as we complete basic maintenance or small repairs.

Every customer and business we serve sees our dedication to running an honest, respectful,
experienced, committed, safe and reliable business first hand. As shown by our 99%
satisfaction rating via a recent customer survey, we are one of the most highly rated shops in
our area.

Suppliers
Carla’s Auto Repair utilizes environmentally sustainable materials and suppliers who rely on
sustainable practices as often as possible. We have positive, ongoing relationships with the
following auto parts suppliers:

● Greater Sacramento Auto Parts, Inc.

● O’Malley Auto Parts
● NorCal Auto Supplies

Key Management
Carla Robinson brings 35 years of auto repair experience, 10 years of engineering and
management experience, and 5 years of shop management and customer service experience to
her business. Her passion for car repair and restoration began at the age of 7 when she began
to assist her dad with his hobby of restoring classic cars. She:

- Graduated from Cal State East Bay with a BS in Engineering

- Managed the train controls team at Sacramento Transit Authority for over a decade
- Earned the ASE Blue Seal of Excellence for her ability as a mechanic
- Has worked as a service mechanic for 5 years, with several more years of experience
working on cars as a hobby
- Operates her own highly rated shop
- Maintains superb relationships with local suppliers, vendors, businesses and customers
- Has taken the business from a startup stage of operation and continues to consistently
grow its customer base and revenue
- Oversees all repairs, sales, hiring, management and transactions

Financial Management
We believe it’s critical to have a very specific picture of the money coming in and going out of
the business to ensure continued growth and financial health. For that reason, we maintain the
following financial statements and records and update them on an ongoing basis; all are
available in the Business Plan Appendix.

Business Budget
A Balance Sheet
A Profit and Loss Statement
Cash Flow Statement
Break-Even Analysis
Cash Flow Projections
Sales Forecast

Overall, reports in the most recent period show that are assets are solid at $86,581, and our
gross earnings before interest and taxes are $13,108. Past cash flow allows us to project a
continuous, upward trend in the amount of revenue we’ll be making and cash we’ll have on
hand every month. Our forecast shows a consistent increase in sales across all areas over the
next 12 months, with total forecasted sales of $171,092 by June 2020.

BUSINESS LOAN
Before opening the shop in 2017, we took out a $50,000 loan and put an additional $5,000 in
personal savings to cover equipment, insurance and rent. We are currently two years into
repaying the loan, which features a 5-year term and a 9 percent APR.

INVENTORY & PAYMENTS ACCEPTED

Carla’s Auto Repair accepts cash and all major credit cards.

We use free inventory management software to manage incoming and outgoing supplies.

Marketing
Carla’s Auto Repair has a loyal customer base, through which we get significant word-of-mouth
referrals. In the auto repair industry, this is a critical aspect of expanding business. Customers
come in with a problem and need to feel confident that others have come to us and gotten a
similar problem solved effectively. Overwhelmingly positive online reviews are another great
source of business.

Between April 1 and June 30 of 2019, we invested $525 in promotions, primarily print ads in
local publications. We plan to expand our budget and the avenues we are using to market our
business in October of 2020.

Although we want to continue reaching individual customers with auto repair and maintenance
needs, the focus of our marketing efforts in 2019 through 2021 will be local businesses in
search of repair and maintenance support for their business or delivery vehicles. We plan to
reach this audience via:

- A new website
- Online ads (banner)
- Print flyers
- Promotions and discounts just for businesses
- Advertisements in local publications

Market Analysis
There is an ongoing demand for trustworthy, high-quality auto service. Although we have many
competitors, our service stands out enough that growth has been steady even with very minimal
advertising. The number of auto shops in the area continues to increase, but so does the
number of local businesses entering the area, many in need of periodic auto service. Overall,
there is high demand for what we offer and the prospects for our growth are excellent.

Sacramento’s population and number of new businesses has been on the increase over the last
several years, signaling significant opportunities for business.

Source: www.opendatanetwork.com

Market Segmentation

Our current and target customers fall into two main categories:
● Individuals in need of auto repair or maintenance
- Many are busy professionals
- Tend to be middle- to high-income
- Most rely on their cars daily to get to work or drive their kids to school
- Often strapped for time due to traffic and increasing work/home demands
- Many bothered by the unexpected nuisance and expense of having their car repaired
- Facing rising home costs in the area
- Returning customers know they can expect great prices, turnaround and treatment
- New customers may be wary, as many have experienced poor treatment, price
gouging and other issues with competitors
 ● Local businesses in need of truck maintenance
- May include bakeries, food delivery, telecom, uniform delivery, florists,
construction companies, repair businesses, maintenance, grocery delivery and other
small- to medium-sized companies
- Companies may have a fleet of anywhere between one and hundreds of vehicles
- We want to target those with 2 to 20 vehicles, as we aren’t yet equipped to service
larger companies
- Established businesses contract with an auto shop, and may or may not be happy with
their service
- New businesses may be in search of an auto shop with which to contract

Competitive Analysis
There are roughly 250 auto repair shops in Sacramento, with about 20 in the Midtown area.
Most are small to medium in size, with some specializing in foreign or other vehicles. Although
some of our competitors are known for high-quality auto service or a good customer experience,
not many are known for both. Very few are owned by women. The closest nearby competitors
are:

Grand St. Auto

● One-man shop that’s been in business for 20 years
● Inconsistent service and staff has led to some missed business and poor reviews
● Good visibility and foot traffic due to corner location
● No waiting room

C & M Repair Shop

● Does good business; always packed
● Runs regular promotions in local publications
● Has a website and online presence
● Also has good online reviews
● Not currently focused on business contracts

Carla’s Auto Repair stands out because of our owner, a long-time Sacramento resident with
great connections and a friendly, down-to-earth demeanor. Although C & M has the benefit of a
website and invests more in advertising, the company isn’t focused on business contracts and
doesn’t have the polished waiting area we do. With the flow of customers through the door, they
aren’t likely to deliver an experience that’s as personal as the one we offer.

Pricing
At Carla’s Auto Repair, we use cost-plus pricing, meaning we add a fee to the wholesale cost.
So far, this has worked effectively in increasing our sales and our ability to make a profit. We
believe in charging customers fairly, which is why we don’t offer different customers different
prices for the same service.

By engaging in a contract with our shop, local businesses do enjoy cost savings on common
repairs. For us, the repeat, predictable business is more valuable than the discount we’re
providing.

When we have a surplus of a certain supply or during slower periods, we may offer a discount in
order to move that inventory or increase business. We also employ the use of service bundles
(e.g., oil change plus tire rotation) as a way to increase business during slower periods.

Advertising and Promotion

We plan to increase our budget for advertising in October of 2020 as a means of securing at
least two new contracts with local businesses. The first step in boosting our advertising is to
create an online presence. By creating our own custom site using a free online program, we can
create a simple but effective online presence that reflects our mission, vision and values at the
cost of web hosting alone. Once that is in place, we can use online ads to drive to our site. Our
overall advertising, once the budget increases, will include:

- Online ads (banner) driving to our new website

- Print flyers to hand out at the Sacramento Auto Auction and related venues
- Large banners for the front of the store to advertise promotions

We’ll track performance of these efforts using our sales numbers and the online metrics
associated with the ad service we use. The results will enable us to continually refine our
marketing.

Strategy and Next Steps

Carla’s Auto Repair has seen a steady growth of revenue and continues to see an uptick in
customers. We will continue to work toward our business goals in the upcoming few years, with
the overall goal of repaying our business loan and becoming increasingly profitable.

- Continue to provide industry-leading customer service

- Expand the number of businesses we serve from 2 to 4 by 2020
- Increase our advertising budget in Oct 2019 to expand business contracts
- Promote our skilled apprentice to full-time in January of 2020
- Long-term goal is to purchase own shop in 10 to 15 years
Strategy for reaching goals
Continue to provide outstanding customer service
- Survey customers upon the completion of every job to pinpoint areas in need of improvement
- Monitor and respond quickly to online reviews, whether positive or negative
- Keep an eye on competitors’ customer service to see where we do better or can improve
- Train all incoming support staff on strategies for serving customers effectively

Expand the number of businesses we serve from 2 to 4 by 2020

- Use advertising and promotions that speak to the specific needs of businesses
- Target new local businesses via strategically placed online & print ads
- Speak to our current business partners about the possibility of reviews/recommendations

Increase our advertising budget in Oct 2019 to expand business contracts

- Increased revenue will account for additional budget
- Utilize new budget to launch DIY website and pay for print/online advertising

Promote our skilled apprentice to full-time in January of 2020

- Continue to increase revenue to budget for the expense
- Check in to ensure he is satisfied with his work and the support he receives
- Communicate openly about the plan and the anticipated timeline for bringing him on full-time

Work toward long-term goal of purchasing own shop in 10 to 15 years

- Continue to increase revenue and customer base
- Begin to create mental “wish list” for space
- Revisit this as a primary goal in 2028

Appendix
The following financial documents support the business goals and projections outlined above.

Business Budget
View this snapshot of our business budget. Budget Worksheet

Sales Forecast
Access a clear picture of the sales we expect to make over the next 12-month period. Sales
Forecast Spreadsheet
Cash Flow Projection
See our projection for cash flow during the upcoming period. Cash Flow Projection Spreadsheet

Profit and Loss Statement (and Projection)

View this three-month snapshot of our performance and growth over time. Profit and Loss
Statement Spreadsheet

Balance Sheet
Open this document for a top-level view of business finances. Balance Sheet Spreadsheet

Milestones
Increase advertising budget October 2019
Launch website October 2019
Hire apprentice full-time January 2020
Double number of businesses served January 2020
Pay off business loan January 2023

Break-Even Analysis
See this analysis, which pinpoints when we will begin to make a profit from a specific supply or
service. Break-Even Analysis Spreadsheet