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Famous Honda Business Plan

FAMOUS HONDA BUSINESS PROPOSAL Presented by Famous Honda Directors

1.0 Executive Summary FAMOUS HONDA is a start-up organization that offers a complete domestic and foreign care repair service for all Honda motor vehicles as well as a full-featured Honda retail parts store. FAMOUS HONDA will serve the Harare market starting with the best convenient location. FAMOUS HONDA will grow into a business with outstanding sales by year three. The Concept The auto repair market has a lot of competition; however, almost all only offer service. FAMOUS HONDA will differentiate themselves by not only offering a hassle-free Honda repair service, but a fully stocked Honda parts store. Not only will this serve a wide range of customers for both service and parts, but the parts department will support the service department by allowing the service department to turnaround jobs far faster than the competition with generally all of the needed parts in stock and on location. FAMOUS HONDA will also differentiate itself by having 2 bays at the location. This offers incredible value to customers who need their cars fixed right away. Waits for service and parts are ideas not entertained by FAMOUS HONDA. Lastly, FAMOUS HONDA offers unlimited shuttle service for repair customers making the entire service experience as painless and convenient as possible. FAMOUS HONDA will attract and maintain a loyal customer base through their customer-oriented focus on business. All employees are trained and held responsible for providing superior service, developing a long lasting trust bond with customers. This is very important, especially in the auto repair industry where trust and honesty are not the image of repair facilities. 2.0 Business Description and Vision 2.1 Mission Famous Honda aims to offer high-quality Honda auto repair services and a full range of Honda parts focusing on personalized services to its customers by offering convenience and rapid service which is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. 2.2 Company Vision We will be the leading Auto –Repair Services Company for Honda vehicles, admired for our competencies, people by any measure in Zimbabwe. To be accessible in all major cities in Zimbabwe.

Growing and maintaining a referral network of local towing service companies. Honesty. 2.2.4 Brief History of the Business State hw atha businesses are functioning. A wide range of auto parts inventory that is (nearly) never out of stock. Rapid order and delivery of major auto parts items. 3. 3.0 Definition of the Market Industry Description 3. Trust. 4.3 Business Goals and Objectives 1. Expedient and convenient auto repair services.5 Company Principles Safety. Integrity.and detail th gap we found in the mkt. pushing beyond boundaries and flourishing through diversity.1 Describe the Critical Needs of the Market . 2. 2. Sustainability and Respect 2.6 Values Passion for excellence.

Many people have chosen to spend part of their increased income on their automobiles.2 Target Market Individuals with Honda cars. As a result. FAMOUS HONDA will position itself to capitalize on the growing need of the middle and upper class market for quality auto service in Harare. the need for reliable and convenient auto services has substantially risen as well. with most of the additional funding coming from loan financing.3 Profile of Targeted Clients 3. The company will be privately owned by two co-owners. 3.The economic growth of the last several years has resulted in increased disposable income.4 Market Share Overview . 3.

500 1.000 700 0 1.000 1.500 2.500 1.200 2.00 Year 2 Year 3 Year 4 Year 5 .500 0 4.200 1.64% 700 500 0 1.000 0 2.Chart: Market Analysis (Pie) Market Analysis (Pie) Competitors Famous Honda Table: Market Analysis Market Analysis Year 1 Potential Customers Local Residents Freeway Traffic Other Total Growth 15% 10% 0% 13.700 1. 200 0 3.

2 Income Statement 7.1 Channel of Distribution 6.1 Products and Services in Detail 4.4.2 Competitiveness of Products and Services 5.0 Organisation and Management Organisation Chart 5.2 Bio-Description of Key Managers 6.2 Sales Strategy For 4p’s 7.0 Products and Services 4.0 Marketing and Sales Strategy Market Identification 6.3 Cashflow Statement .1Projected Balance Sheet 7.0 Financial Management Start Up Costs 7.1 Legal structure 5.

all of whom have extensive industry experience. Both of the partners represent sales/management. address. . The incredible breadth of skill sets and knowledge that the management team possesses will allow FAMOUS HONDA to accomplish their lofty sales goals. and one focuses on the operations section of the business. specifically the auto repair and parts sales industry. FAMOUS HONDA will be led by a seasoned management team of two. At both organizations Tendai had multiple roles within the organization allowing him to bring to FAMOUS HONDA a broad skill set.0 Company name. Tendai spent two years at Honda Twenty Ten the largest Honda independent auto repair facility and 4 years with Honda Mart Trading.8. city The Management Team FAMOUS HONDA has a strong management team that will allow them to execute on this exciting idea. These distinct but complimentary services will have benchmarked customer service.0 Company Summary Famous Honda Auto Repair is a new start-up incorporated business managed by two partners. FAMOUS HONDA is an exciting business opportunity that addresses the unmet need of having a full Honda service auto repair facility that also has a complete retail parts center. He will be overseeing the sales and marketing for the organization and the accounting and administration and will cover as the Director. something that the industry is not known for having. Tendai is also a product of the auto industry. FAMOUS HONDA has two partners Benson Nyahokwe & Tendai Muzenda. 2. Benson has a background of sales. an undergraduate of a bachelor’s degree in Marketing has worked with an Auto repair company on his vacations.

1 Company Ownership FAMOUS HONDA is incorporated in the companies act. the owners may consider taking FAMOUS HONDA public several years down the road. printer. To attract additional financing.2 Start-up Summary Each of the co-owners will invest an equal amount in terms of equipment.500 $4.2. 1 pce tool box) Start-up Inventory (renovations and inventory) Other Current Assets Total Assets Total Requirements $300 $2.000 $1.000 $500 $2. The remainder of the required financing will come from a loan from the Youth fund loan. In order to be fully equipped to start operating Famous Honda will only require a 150-pce Tool set however with the increase in number of jobs and mechanics hired there will be need to purchase more tools.300 $1.800 . printer and phoning for the use by administration and ease of communication with clients Table: Start-up Start-up Requirements Start-up Expenses Legal Rent Total Start-up Expenses Start-up Assets Cash Required (Computer. It is privately owned by Benson Nyahokwe & Tendai Muzenda. 2.000 $2. it will also require buying a computer. Famous Honda will also need to renovate the location they will lease for the commissioning of the Auto repair shop.

Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $2.000 $0 $0 $5.800 $0 $200 $4.300 $2.000 $0 $0 $5.800 $500 $4.000 .000 $5.000 ($4.800 Liabilities and Capital Liabilities Long-term Liabilities (Loan) Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Nyahokwe Benson Muzenda Tendai Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $5.800) $5.500 $4.

Msasa or Adbennie) these locations highly suite the business. Strong vendor relationships have been established with the most reputable vendors in terms of shipping time of major parts. The company estimates that about 80% of revenues will come from the established local clientele and 20% from the local and freeway traffic tow-ins. while maximizing inventory turnover. City center. .0 Products and Services FAMOUS HONDA has the core competencies amongst its large crew to work on all Honda makes and models vehicles. FAMOUS HONDA employees focus on delivering what they promise.0 Market Analysis Summary FAMOUS HONDA has a focus on meeting the demand of a regular local resident customer base. and all employees focused on superior customer service. Consideration have been made on other cities and rural locations however the number of traffic flow in other locations have led to the decision to have the first branch in Harare. The goal is to never be out of a specific part. FAMOUS HONDA utilizes the highest degree of technology in managing a full range of auto parts inventory.000 3. With two service bays at the location. 4. Southerton. This focus on building strong customer relationships based on trust and integrity will be the catalyst in establishing a strong regular customer base. FAMOUS HONDA strives to be accurate and honest with customers in terms of quoting cost estimates and repair completion time estimates. FAMOUS HONDA has established relationships with a few major local tow truck companies for referral business of stalled vehicles requiring a tow to an auto repair facility. The table below further estimates the total market potential of type of services rendered by FAMOUS HONDA in Harare.1 Company Location & Justification Famous Honda seeks to locate in Harare (Graniteside. 4. as well as towed vehicle drop-ins from local and freeway traffic traveling on nearby freeways. quick turnaround is always the standard at FAMOUS HONDA.Total Funding $5.

Only one of these competitors offer both auto repair services and auto parts inventories i. 4. Convenience is a must for most middle and upper class consumers and travelers. customer service excellence. FAMOUS HONDA will compete well by focusing on convenience and offering a high level of customer service and originality of their parts. . with variations based on the number and type of Honda cars registered in the different markets. Famous Honda is going to operate the service division for the first three months before opening up its auto parts store. and by working with local towing companies. Automotive product lines usually include: Tires.1 Competition and Buying Patterns FAMOUS HONDA faces over 20 auto parts competitors in Harare.4. The majority of auto shops usually offer either repair services or parts inventory. Honda parts.2 Target Market Segment Strategy FAMOUS HONDA will focus on its target market. there is a constant significant demand for auto repair services and auto parts. by offering convenience. 4.e. and an equally high level of tourism traffic on local highways.1 Market Needs Between having a high level of Honda commuting traffic. Honda Twenty Ten.3. the middle and upper class market. expedient Honda repair services. Batteries.3 Service Business Analysis The market of auto repair services and parts sales is very fragmented. its honest reputation will be a major factor in repeat business and building a large base of regular. Large competitors' stores typically carry the same basic product line. Middle and upper class customers to whom FAMOUS HONDA will cater its services are less price sensitive as they value the convenience of quick turnaround and high quality of services. Additionally. 4. and establish a reputable image from that target market's perspective. loyal customers. including:  Suspension parts. The remainder is small privately-owned establishments which have their shelves full of fake Chinese parts.2. The niche where FAMOUS HONDA positions itself represents a Honda center that offer both Honda services and parts at one convenient location.

the company will employ direct sales staff. automotive specialty tools and test gauges. including sound systems. 5. Additionally. FAMOUS HONDA will succeed by ensuring a full range of auto parts inventory and rapid shipping capability of major auto parts. polishes. . jacks and lift equipment. marketing and merchandising strategies. This information is then used to help formulate pricing.  Wiper blades. Car accessories. paint and body tools.  brake parts. 5. rapid turnaround on Honda repair jobs. floor mats.  Lighting. alarms. rapid and convenient Honda repair service. Hand tools.  Engines and engine parts. ratchets. Ignition parts. including sockets. and exterior accessories.1 Competitive Edge FAMOUS HONDA's competitive edge is the heavy focus on customer convenience by offering unlimited shuttle service. Electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery. and remote vehicle starters. 5. wrenches. including oil. cleansers and paints. antifreeze. Many competitors have adopted point-of-sale systems in their stores. additives.0 Strategy and Implementation Summary FAMOUS HONDA will succeed by offering its customers high-quality.  Service parts. At the same time. Chemicals.2 Sales Strategy FAMOUS HONDA will focus its sales strategy on effectively reaching the target customer segment of upper and middle class customers. Mobile electronics. the company will further strengthen its relationships with the tow truck companies to capture auto repair needs of the local and highway traffic. including seat covers. which gather sales and gross profit data by a stock-keeping unit from each store on a daily basis. and a referral network of a few local major tow truck companies. For this purposes.

Table: Break-even Analysis Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 6. Tendai has four years of experience in Honda auto repair and auto parts industries. 7. 7.208 $103. These conservative assumptions make for a more accurate estimate of real risk. and fixed costs.0 Management Summary Benson has experience in sales.0 Financial Plan FAMOUS HONDA expects to raise much of its own capital. and to borrow a loan from the Youth Fund policy.969 $724. marketing. per-unit cost. and for operating expenses.1 Break-even Analysis FAMOUS HONDA's break-even analysis is based on the averages of the first-year figures for total sales by units.92 $42.81 $425.6. and management within the auto repair and auto parts industries. These are presented as per-unit revenue. This provides the bulk of the current financing required.871 .

00 Month 5 $300.00 Month 9 $300.00 Month 10 $300.Table: Sales Forecast Sales Forecast Month 1 Unit Sales Honda Repair Jobs Auto Parts Other Total Unit Sales Unit Prices Auto Repair Jobs Auto Parts Other Sales Auto Repair Jobs Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 20 150 0 820 Month 11 25 200 0 825 Month 12 25 200 0 825 10 100 0 610 10 100 0 610 10 100 0 610 15 100 0 615 12 100 0 615 20 150 0 820 20 150 0 820 20 150 0 820 20 150 0 820 Month 1 $300.00 $50.000 $7.00 Month 8 $300.00 $0.00 $50.00 $0.00 $50.00 Month 12 $300.00 Month 4 $300.00 $3000 $3000 $3000 $3000 $3600 $6000 $6000 $6.000 $6.00 $50.00 $50.00 Month 11 $300.00 $0.00 $0.500 $7.00 $50.00 Month 7 $300.00 $50.00 $10.00 $50.00 $0.00 $0.00 $50.00 Month 3 $300.000 $6.00 $0.500 .00 $0.00 Month 2 $300.00 $50.00 $0.00 $50.00 Month 6 $300.00 $0.00 $0.00 $50.

000 $0 $17.00 $10.00 $0 $140.500 Month 12 $70.00 $20.00 $5.600 Month 5 $70.00 $0.00 $20.500 Month 7 $70.00 $40.500 Month 8 $70.00 $10.00 $0.00 .00 $10.00 $20.00 $7.00 $0.00 $40.00 $0 $140.00 $40.500 $0 $13.00 $40.00 $20.00 $5.00 $0 $140.500 $0 $13.00 $40.00 $0 $140.00 $10.00 $40.Auto Parts Other Total Sales Direct Unit Costs Auto Repair Jobs Auto Parts Other Direct Cost of Sales Auto Repair Jobs Auto Parts Other Subtotal Direct Cost of Sales $5.000 Month 4 $70.000 Month 1 $70.500 $0 $13.00 $0.00 $0 $140.00 $20.00 $0.00 $0.000 Month 2 $70.00 $7.00 $20.00 $0 $140.00 $0.00 $0 $140.000 Month 3 $70.00 $20.00 $5.00 $40.00 $40.500 $0 $13.00 $10.00 $10.000 $0 $8.00 $0.00 $7.000 $0 $8.00 $0.500 $0 $13.00 $0.000 $0 $8.00 $0 $140.000 $0 $8.00 $10.500 Month 11 $70.00 $10.00 $20.00 $40.000 $0 $8.00 $10.00 $10.00 $20.00 $7.500 Month 9 $70.00 $5.00 $20.00 $0.00 $0.00 $0 $140.00 $20.00 $0 $140.00 $40.00 $0 $140.00 $0 $140.00 $10.00 $10.000 $0 $17.00 $10.00 $40.500 Month 6 $70.00 $40.00 $20.500 Month 10 $70.00 $7.00 $10.

000 4 $1.000 4 $1.000 4 $1. FAMOUS HONDA expects to continue its steady growth in profitability over the next three years of operations.000 Month 8 $1. Table: Profit and Loss overleaf Pro Forma Profit Month 1 and Loss Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 .6.000 4 $1.000 Month 12 $1.000 Month 7 $1.000 4 $1.000 Month 10 $1. Table: Personnel Personnel Plan Month 1 Mechanics Total People Total Payroll $500 2 $500 Month 2 $500 2 $500 Month 3 $500 2 $500 Month 4 $500 2 $500 Month 5 $750 3 $750 Month 6 $1.1 Personnel Plan As the personnel plan shows.000 Month 9 $1.000 Month 11 $1.000 7.2 Projected Profit and Loss As the profit and loss table shows.000 4 $1.000 4 $1. FAMOUS HONDA expects to make gradual investments in staffing as several new facilities are opened over the next five years.

000 $3.060 $14.000 $200 $1.000 $3.760 $5060 $5060 $5060 $4.500 $140 $13.810 $10.3 Projected Cash Flow The cash flow projection shows that provisions for ongoing expenses are adequate to meet FAMOUS HONDA's needs as the business generates cash flow sufficient to support operations.360 $13.000 $200 $1.000 $200 $1.300 $100 $2. The short-term loan is expected to be paid out within one year.300 $100 $2.060 7.100 $100 $2.000 $200 $1.060 $14.360 $13.000 $200 $1.060 $10.500 $140 $17.060 $10.500 $140 $7.000 $140 $8.360 $13.300 $100 $2.060 $10.360 $13.360 $17.500 $140 $13.000 $3. while an SBA loan will be repaid in three years.000 $3.500 $140 $13.500 $140 $17.000 $2.000 $200 $100 $2.500 $140 $13.800 $100 $2.300 $100 $2.000 $140 $8.860 $13.300 $100 $2.060 $10.300 $4.050 $100 $2.Sales Direct Cost of Sales Gross Margin Expenses Payroll Sales and Marketing and Other Expenses Utilities Rent Total Operating Expenses Net Profit $8.300 $100 $2.860 $7.860 $7. .000 $3.800 $100 $2.000 $140 $13.000 $2.000 $140 $8.000 $3.800 $100 $2.860 $7.000 $2.000 $200 $1.360 $17.000 $140 $8.360 $500 $500 $500 $200 $500 $200 $500 $200 $750 $200 $1.000 $3.000 $3.860 $7.000 $3.

500 $13.800 $2.400 $100 $3.500 $13.300 $3.800 $2.000 $8.500 $17.500 $13.400 $100 $3.000 $8.500 $13.300 $3.400 $100 $3.500 $13.500 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $200 $3.900 $100 $2.500 $13.500 $13.400 $100 $3.000 $8.000 $8.000 $8.050 $3.000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8.000 $8.Pro Forma Cash Flow Month 1 Cash Received Loan Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received New Investment Received Subtotal Cash Received Expenditure s Expenditure s from Operations Other Bill Payments Subtotal Spent on Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $5.300 $3.400 $100 $3.300 $3.000 $13.500 $13.300 $3.150 $100 $3.500 $17.500 $17.000 $8.900 $100 $3.000 $8.500 $13.000 $8.000 $8.000 $13.000 $8.000 $8.300 $3.400 $100 $3.800 $2.500 $17.900 $100 $2.500 $13.300 $3.300 $100 $2.100 $3.500 $17.000 $8.400 .500 $13.500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13.500 $13.500 $17.500 $13.

565 $0 $3.315 $0 $3. VAT.565 $0 $3.Operations Additional Cash Spent Sales Tax.435 $8.565 $0 $3.685 $4.315 $0 $3. HST/GST Paid Out Other Liabilities Principal Repayment Loan Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Cash Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $00 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415 $1.685 $4.000 $00 $00 $00 $00 $00 $00 $0 $5.815 $0 $3.685 $9.800 $0 $3.565 $9.500 $0 $00 $00 $00 $1.565 $7.935 $13.565 $13.935 $9.000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1.685 $4.935 .315 $0 $3.200 $4.565 $0 $3.565 $0 $3.565 $0 $4.565 $9.

advertising expenses and first month rentals for its premises. Contact Details Famous Honda Director Nyahokwe Benson Regina Coeli Mission Hospital Bag 4 Juliasdale +263774 119 692 or +263733 401 390 .Loan Application Famous Honda is seeking a loan funding of Five Thousand Dollars US $ 5000 to start its operations. The loan will be used to pay commissioning expenses.