Business Plan on

Garage Station
Course: MGT368
Section: 23

Submitted To
DR. S.S.M Sadrul Huda
Department of Management
North South University

Submitted By
Name ID
Tanvir Islam 1621287030
Md. Arfatul Islam 1620756030
Pranta Karmokar 1620077030
Samiha Jahin 1812023630
MD. Asaduzzaman 1620167030

Date of Submission
29 August, 2019
 Executive Summary
Over the years Bangladesh has seen a wide range of development in digital sector. This

development is taking this crowd to another whole new level. Everyone is connected through

now a day which led us to a whole new world of digitalization and a new era of development.

Garage station is an online platform to digitalize and make our life simple as possible. Garage

station is nothing but an easy solution to repair and give service to concern. This service will

make customer’s life so easy that an owner of a vehicle doesn’t need to worry about their

beloved vehicle anymore. This will be nothing but simple app base and online service where a

customer can find a garage or service center. They can easily call a mechanic middle of an empty

road by this app anywhere in Dhaka. Since we have a lot of complain regarding the workshop in

Dhaka so Garage station will tug the experience mechanic or workshop with the customer. It will

provide solution of every problem regarding the vehicle even the monthly service of vehicle

where customer can book a suitable time from customer’s valuable time to get the best service

inside Dhaka. However, a customer will get one stop service. However, concerns for future were

pointed out. The firm is growing and with time it might become large enough and serve

nationwide to reach its ultimate goal.

Contents
1.0 Introduction ...................................................................................................................................... 1
1.1 Statement of the financing needed ................................................................................................ 2
1.2 Statement of confidentiality report ................................................................................................ 2
1.4 Pricing Model................................................................................................................................. 3
2. Business Environment Analysis ............................................................................................................ 3
2.1. PESTLE Analysis ............................................................................................................................. 3
2.2Porter’s five forces .......................................................................................................................... 4
2.3. SWOT analysis............................................................................................................................... 4
2.4 Steak Holder analysis ..................................................................................................................... 4
3. Description of the Venture .................................................................................................................. 5
3.1Product and service ........................................................................................................................ 5
4.0. Production Plan ................................................................................................................................ 5
5.0. Operational plan ............................................................................................................................... 6
6. Marketing plan of Garage Station ........................................................................................................ 7
6.1. Product/service............................................................................................................................. 8
6.2. Price: ............................................................................................................................................ 8
6.3. Place ............................................................................................................................................. 9
6.4. Promotions ................................................................................................................................... 9
7. Organizational Plan............................................................................................................................ 10
7.1 Formation of Ownership .............................................................................................................. 10
7.2 Identifications of the partners ...................................................................................................... 11
7.4 Sales and Marketing Department: ................................................................................................ 12
7.5 HR Management Department: ..................................................................................................... 12
7.6 Finance and Accounts Department: ............................................................................................. 12
7.7 Operational Management Department: ....................................................................................... 12
8.0 Assessment of Risk .......................................................................................................................... 13
9.0 Financial plan................................................................................................................................... 13
9.1 Assumption.................................................................................................................................. 14
9.2 Pro-Forman income Statement .................................................................................................... 14
9.3 Pro-forma Balance sheet .............................................................................................................. 15
Reference .............................................................................................................................................. 16
1.0 INTRODUCTION
This technological advance is nothing but a blessing of internet. It was introduced nearly in
the beginning of the year 2000. However, until 2013 the band with, cost of accessing
internet, speed, service etc. was not developed. In the year, 2014 with a 3% growth meaning
a new 5 million people entered digital world. Last recorded in 2016 the total number of
internet users in Bangladesh was 21,439,070 and the total population was 162,910,864. If
compare the number of users from 2012 to 2016, the number got tripled within 4 years.

Because of this change in technological development an owner of a vehicle always while

repairing their beloved car. Some people face problem regarding authentic parts, some of them
don’t get the proper service from local workshop. Therefore, Garage Station is bringing the
service where owner of the car will get service with the touch of digitalization and development
is Bangladesh. It is a partnership company five partner came together and formed this company.
The company has the motive to go for corporation structure in future.

Firstly, Garage Station will provide one stop solution to every customer. There will all types of
service to connect an owner of the vehicle and the workshop. When a problem arises of a
vehicle; anyone who can use a smart phone he/she can look for the nearest local shop will then
best local shop will get the notification and location as well. There will be an option to rate every
local shop and recommendation as well. Secondly, Garage Station will have their personal
service. Therefore, Garage Station will have their own cleaning service. A user will set
appointment to clean their vehicle. Every user can use the monthly service which will remind the
user to service his/her vehicle. Last but not the least, Garage Station will try to serve across the

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nation so that everyone can use this technology with the blessing of the internet. This service will
can help a vehicle owner so much that that they can do other important work instead of vehicle
servicing.

1.1 Statement of the financing needed

Garage Station will need around 60 lakhs to start this business operation. There will be some
personal loan and there will be some bank loan as well. Initially the partners will invest equal
amount of money for equal amount of share. From the total investment 35 lac will invested by
partners and then 10 will take from the bank and rest of the amount which 10 lacs will open for
out sider investor how like to invest the money to Garage Station.

1.2 Statement of confidentiality report

The unsigned reader of Garage Station business plan is closed and this plan is confidential and
reader to advise that not so disclose the plan to any other person with the permission of the
business. Upon request, this business plan will be returned the partners. This is a business plan; it
does not imply an offer of any security.

Business Plan:

key Partners Key Activities Value Positioning Customer Segments

> Car Manufacturing >Understanding >Flexible economical We create this value for
company Customers demand Environmental all classes of people
and services services. who has faced cars
> Machine Suppliers repairing and
>A large scale >Trainer labors forces maintenance.
> Investors
development for Servicing Income-70k-1lck
>Local Car Companies. services
>Reasonable Price Class- Middle class
Key Channels Key Resources
>Maintenance Cost Structure
>Office >Human expansive view
Service:
>Facebook Page >Financial >Company will
>Fixed Cost,
>Website provide guaranty we >Technological system
>Date >Collation
will provide warranty cost
>Gmail Id& Mobile >Computers in services
numbers >Advertisement Cost
Revenue Steam
>Machinery cost
Credit / Debit cards, > Equipment Cost
Cash payments
>Labors cost

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1.4 Pricing Model
‘’Garage Station’’ will be following the competitive pricing strategy as below

 Garage Station will charge 10% of the total bill from the local workshop.
 100 taka will charge while tugging with the local workshop.

1.6 Ethical

1. Customer safety is more important for us so we are trying to providing them safe cars by
repairing. Products and technology are bringing our trust from the customers.
2. High technological knowledge about car repairing service: Our employees are highly
skills about cars repairing so this is our ethical manners that we give our customers best.
3. Performing car repairing service with reasonable price not inflated.

1.7 Eco-Friendly
Values & Environmentally Friendly service will be maintained by us. We will be recycling waste
like burn engine oil and other waste. We will be taking this action since we can reduce the waste
of oils or others things only by reclining or reusing.

2. BUSINESS ENVIRONMENT ANALYSIS

2.1. PESTLE Analysis
The “PESTLE” framework is very important to know about external environment factors in term
of a business. It gives insight of bigger picture of a business in a country.

Political Factor: Bangladesh government is always very flexible and supportive in the terms of
their rules and regulations so no major political threat if something unpleasant like hartal strike.

Economic Factors: Bangladesh has steady economic GDP of 6-7%. Since, the supply and
demand relationship of the raw materials within our factory can be friendly for this steady
growth

Social Factors: As the target consumers are mostly from medium and high-income households it
has the opportunity to grow a great industry of our country.

Technological Factors: As technological market is still a baby stage, Garage station has land of
opportunity here.

Environmental Factor: Environmental factor is very important so take into account we will not
make any waste which may hamper the society or violate the environment.

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Legal Factor: The existing Bangladeshi legal legislation in force is as follows: 1. Patent &
Design Act of 1911 2. Copyright Act of 1999 3. Trademark Act of 1940 4.Patent & Design Rule
of 1933.

2.2Porter ’s five forces

By Porter’s five forces we will be able to understand the competitiveness and it will help us to
implement proper strategies and take necessary precautions accordingly.

Bargaining power of buyers: The bargaining power of buyers is high in this business.

Bargaining power of suppliers: Due to availability of similar repair service So, the bargaining
power of suppliers is low.

Competitive revelry among competitors: less regarding door to door service.

The threat of substitutes: There are some companies who are providing similar kind of
services. So, the threat of substitute is high.

Threat of new entrants: Accessing distribution channel is easy, consumer switching cost is low
so, the threat of new entrants is high in this business.

2.3. SWOT analysis

Strength Weakness
 Quickest service  Not highly differentiated
 Easy to access  Easy to copy
 Cheap rate  Entry barrier is low
 Experienced workers  Traffic

Opportunity Threat
 Opportunity of going global  Threat of new entrance
 Expanding market  Competitors
 Few competitors  Jay customer

2.4 Steak Holder analysis

Consumer: our consumers are with car or bike who want to repair service at their home.

Suppliers: As our services will be city wide we will have suppliers in every important area of
Dhaka city.

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Distributor: No distributors are required for our business.

Competitors: We have some direct competitors, like – Jantrik, Sheba.

3. DESCRIPTION OF THE VENTURE

3.1Product and service
Car ownership growing rapidly in our country, with the development of infrastructure, access to
capital and economic growth, there is a huge growth potentiality in this space. At the same time
the service space for car owners remains a highly unstructured market which offers a big
opportunity to build a great business. We are actually a services based company. We want to
become a one stop automotive service platform for vehicle maintenance, Trouble shooting and
want to give 24/7 emergency roadside service all over Bangladesh. Nowadays people travel
more, So sometimes it is possible that our vehicle go malfunction on the middle of the journey.
Garage station can be a life saver on that time, just download the app from the paly store and
call a mechanic through the app.

Size of the business: Firstly, we will give services all over the Dhaka city and highways. So our
business will be not small neither large, it will be a fair size business. We eventually will try to
catch important area of Bangladesh.

Office equipment and Personnel: We are giving app based service so we will not have any
office.

4.0. PRODUCTION PLAN

Manufacturing Process

As this business is an online based application so we don’t manufacture. Basically, it is a service

provider based on applications. We work as intermediaries between the service requester and the
service provider.

 How the service will take place?

Need to have connections with a lot of different Garage. the main dealer of ‘Garage station’ is
Car Manufacturing company, Machine suppliers, local car companies, mechanical support center,
etc.

 What are services ‘Garage station’ provides?

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‘Garage station’ provides car service, repairs in progress and repairs for dental and painting, Car
decoration works, Vehicle tracking, Cleaning, Spare parts etc.

 How will the service flow to the customer?

As we take order from online, so we keep track of the car or vehicle via online and then we call
them to confirm the request.

 How will the inventory control system operate?

We will control our stock framework by frequently checking information and assets. We will
attempt to use our stock at minimum cost and there will be a ERP to inventory system.

 Sequentially what are the steps involved in a business transaction?

Assessment of the record and entry. Make the necessary documents for the transaction.

 What are the requirements to use technology to serve customers?

‘Garage station’ provide people necessary support they need regarding their vehicle without
facing the trouble to go to some mechanic shop. We appoints best people so that we can deliver
the promise that our tagline gives. Our company gives them the facility to have the work done in
their desired place.

5.0. OPERATIONAL PLAN

As we have an office, we will manage different types of department for operation and customer
happiness.

Management operations:
We will manage our operation with Operational management, Human resources, Accounting,
Financing, Financial resources, and also will give them a taring program for employees.

Individual Amounts: Our individual amount will not be going to be enough for business so
we will try to contracts will bank for loans.

Quality control: We will ensure customers with loyalty that they can trust us. We have a
quality control team for researching our products.

Customers services: There will be a in house customer care service 24/7.

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Promotion Activities: We will promote using newspapers, website, Facebook or through
online newspapers.

Flow of orders for goods and services:

Our company is committed to fulfill their requirements. We will take their order and then we will
analysis their products problems and make it status. Depending on the product problems we will
make the price.

Technology Utilization:
We are using technology as our collaboration part, access data, and others things we will use
technology as our plan.

Online platform: The business will be doing through online to reach customers. As we have
websites, social networking system, apps to order services to home its will be easy process to go
online for a big customer platform.

Payment system: As we will use our service through online so our customer will pay their
payment by E-payment systems or Bkash system also. So they can easily give payment at home.

Advertisement system: We will use our advertising process through online base.

6. MARKETING PLAN OF GARAGE STATION

The first and foremost thing that we did first was, we analyzed the industry and we got to see that
this type of service is still unique in the Bangladesh market. As it’s not too common yet so we

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don’t really have that much of competitors. For the overall plan we are following 7p’s of the
marketing mix. However here we are going to talk about product, price, place and promotion.

6.1. Product/service
The kind of service we basically provide is that we help people to solve their problems related to
vehicles without going to any me mechanic shop. They can have the service at their desired
place. And we provide this sort of service through an app.

The services that we will be providing –

 Car Services :

 Car mechanical works

 Car decoration works
 Basic car servicing
 Spare parts
 Vehicle tracking
 Car electrical works
 Cleaning
 Roadside help
 Membership
 Hotline help

 Motorbike Services :

 Membership
 Hotline
 Spare parts
 Roadside help.

6.2. Price: According to our service we decided to go for two pricing strategies –
 Cost based pricing: We will set our price based on the costs such as labor costs, spare part
costs and our other costs that we incur running the service. Which helps us to determine
the price with a profit.
 Bundle pricing: In this sort of pricing we will be making a bundle of services for our
customers at a comparatively lower price than they will have to spend at buying them
separately. It will also help us to hold customers as they won’t go to some other place for
other services.

Price of our services

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 Prices
Services
 Car services –
 Car decoration works 50,000-1,00,000 BDT
 Car mechanical works 2,000-5,000 BDT
 Basic car servicing 200-500 BDT
 Spare parts 2,000-10,000 BDT
 Vehicle tracking  500-2,000 BDT
 Car electrical works 10,000-20,000 BDT
 Cleaning 200-300 BDT
 Roadside help 500-700 BDT
 Membership 2,000 BDT per month
 Hotline help 100-200 BDT
 Hotline help 100-200 BDT
 Motorbike Services –
 Membership 1,000 BDT per month
 Hotline 100-200 BDT
 Spare parts 2,000-5,000 BDT
 Roadside help. 500-600 BDT

6.3. Place
Placement is very important for our business as we don’t have any outlets or offices. But we
need to however keep connection with some of the other garages and clients. As we need to give
fast services to our clients so we at least need to few connections in every area of the city.

For our customers we want our service to be –

 Easy access
 Affordable
 Basic and necessary services are available
 Best at quality
 Convenient
 Fast service

6.4. Promotions
Promotion is the most important factor in our business because through this we can reach out to
our customers. People will get to know about our exsistence.

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 For promotion we will use –

 Television
 Newspaper
 Posters
 Leaflets
 Posters
 Banners
 Facebook
 Instagram
 Ads in different webpages
 Other internet based ads

We also have our own LOGO –

That would help to draw people’s attention and attract them towards our service.

Along that we have got an interesting TAGLINE too –

“Our service will simply make your life as fast as your car”

7. ORGANIZATIONAL PLAN
7.1 Formation of Ownership
 It’s going to be a partnership. So first and most important factor here is the partnership
agreement. The company will be operated by the agreement.
 ‘Garage Station’ will be consist of five partners. By having this many members we will
be able to run our business more smoothly and nicely. Responsibilities can be divided
among the partners that would increase the efficiency of the company.
 By having more partners we will be able to gather more capital for the business which is
good for the company. The liabilities can also be divided among all the partners that

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 would help to reduce the risk for each partner. The revenue will be evenly distributed
among the partners according the agreement.

7.2 Identifications of the partners

There are five partners in ‘Garage Station’. The names of the partners are given below:

Partners

Tanvir Islam
Md.Asaduzzaman
Samiha Jahin
Pranto Karmokar
Arfatul Islam

7.3 Authority of principles

‘Garage Station’ has above mentioned five partners. We are not interested to take any outsider as
partner until any of us leaves the partnership. We will have one CEO, one leader and three
directors. By voting we will be able to change our board after every three years.

The members of the board of directors are

Names Designations

Tanvir Islam Chief Executive Officer (CEO)

Md.Asaduzzaman Chief Financial Officer (CFO)

Samiha Jahin Managing Director (MD)

Pranto Karmokar Marketing Manager

Arfatul Islam HR Manager

CEO will have the main responsibility to sign most of the checks. But the other department
heads will sign their department’s checks but that needs to be approved by the CEO later.

Partnership Withdrawal: The partnership can get withdrawal at two conditions –

 Voluntary: A partner can leave the partnership at his/her will.
 Non-voluntary: A partner has to leave the partnership against his/her will.

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Partnership Dissolution: There are some ways through those the partnership of ‘Garage
Station’ will be dissolute.

 On a death of any partner

 If all the partners agree to end the partnership
 If one or more partners get bankrupted
 If one of the partners leave the partnership.

The responsibilities and roles of each Department:

Every department has got some responsibilities to fulfil. If those roles and responsibilities are
well known to all the members, they can work according that and it will help the business to gain
prosperity.

7 .4 Sales and Marketing Department:

 Research and analysis the market for service development and promotions.
 Observing the competitors and take strategies to overtake the competitors.
 Working to increase the sell.
 Taking feedbacks from the customers.
 Deal with the internal and external marketing agencies.

7.5 HR Management Department:

 Dividing the jobs into necessary roles according the goals.
 Recruiting and selecting employees for the selected roles.
 Motivating the employees so that they can work with a happy mind and can achieve
the goals.
 Deciding salaries, incentives and benefits for the employees.
 Arranging training programs for the employees.
 Peer apprising and taking and giving feedbacks to the employees.

7.6 Finance and Accounts Department:

 Preparing sale reports
 Analyzing the risks
 Taking decisions regarding the investments
 Preparing income statement and balance sheet
 Analyzing profit and loss
 Creating a performance chart of the company.

7.7 Operational Management Department:

 Making sure that the service is maintain it’s quality
 Buying necessary tools and equipment.

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  Managing the inventory.

8.0 ASSESSMENT OF RISK

8.1 Evaluation of weaknesses of business
All business have its own weakness also we believe that, we have some weakness in our
business. It’s not a fault of a business. A business with its weakness is a natural behavior. But we
need to fixed those weakness and prepare themselves as a strong organization. We need to
identify those weakness and what are those behind the risk, this need to analyze first. If we
manage to do perfect analysis we can able to reduce or element those weaknesses. This will help
us to get strong strategic position in the market.

 The first weakness of our business is market awareness. Though we are new in the
market people may not know about the service that we are offering. This weakness can be
reduce by doing proper marketing of our service.
 People trust is most important thing. As we are dealing with their property, firstly we
need to gain their trust. This can be managed by giving appropriate services and need to
create some trust worthy commitment to customer.
 As we are new in this business, we have to aware of any threat that can hamper our
business.
New Technologies

 As our business in based on technology. We have to ensure proper technological support

and proper network system. Also we have to ensure proper customized software so that it
can operate smoothly without any difficulty.
 Apart from that we will take update technology so that we can give better service to our
customer.
Contingency plan

 All business can grow if it flows the right direction. We believe that our business will
grow with time. A growing business need finance to expand. If the business started to
grow we will reinvest the revenue and will take new partner if needed.
 Customer satisfaction is one of the main thing in business. We will do all necessary steps
to satisfy our customer.
 Finally, we will make some offer for customer so that customer always have interest to
use our service. And we will always try to offer affordable price for our service. This will
help us to maintain good relation with customer and also it will help us to gain
competitive advantage.

9.0 FINANCIAL PLAN

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9.1 Assumption
 The major finance for the business will come from the individual partner. Every partner has
individual investment in business. This money will determine the portion of ownership in
business.
 We will take bank to loan. So that we can face financial crisis. If we need immediate or extra
money for an unexpected situation, this loan will help us to manage any unexpected
situation.
 Also we have some investors who are willing to invest in our business. And the partnership
will be based on share or the amount the amount they invested in business.
 It’s an app based operation sponsor amount will invest in business. Sponsor will have the
permission to advertise their product or service.

Garage Station
Personal fund 3,500,000
Personal credit 500,000
Equity 1,000,000
Debt finance 1,000,000
Total 6,000,000
We calculated pro-forma income statement and balance sheet, so that the business could flow a
model. Though all the values are based on assumption in year 2019. Based on year 2019 we
calculate pro-forma income statement and balance sheet.

9.2 Pro-Forman income Statement

Note for income statement 2020 2021 2022

Revenue 25% increase 0.25 0.25 0.25
Indrediance (for
25% increase
service) 0.25 0.25 0.25
Electricity 20000/month 0.02 0.03 0.04
Rent 20000/month
Marketing 15% increase 0.15 0.15 0.15
Discounts 16% increase 0.16 0.16 0.16
tax 15% 0.15 0.15 0.15

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 Garage Station
Pro-Forma Income Statement for the year of 2020, 21 and 22.
Description 2019 2020 2021 2022
Revenue 3500000 4375000 5468750 6835937.5
Cost of sales
Application cost 250000 250000 250000 250000
Indrediance (for service) 400000 500000 625000 781250
Total cost of sales 650000 750000 875000 1031250
Gross profit 2850000 3625000 4593750 5804687.5
Operating Expense
Wages and salaries 1300000 1300000 1300000 1300000
Electricity 240000 244800 252144 262229.76
Rent 180000 180000 180000 180000
Marketing 100000 115000 132250 152087.5
Interest 60000 60000 60000 60000
Depreciation of asset 12000 12000 12000 12000
Discounts 21000 24360 28257.6 32778.816
Total expense 1913000 1936160 1964651.6 1999096.08
Income before Tax 937000 1688840 2629098.4 3805591.42
Tax 140550 253326 394364.76 570838.714
Net income 796450 1435514 2234733.64 3234752.71

9.3 Pro-forma Balance sheet

Notes For Balance sheet

Servicing
10% increase
Equipment
Inventory 5% increase
Cash 3% increase
less Drawing 8% increase
5 % decrease in year 21 and
Payments
22

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 Garage Station
Pro-Forma Balance Sheet for the year of 2020,21 and 22
Description 2019 2020 2021 2022
Non current asset
Servicing Equipment 420000 462000 508200 559020
Computer/tab 150000 150014 167229 150000
Total non current cash 570000 612014 675429 709020
Current Asset
Inventory 1050000 1102500 1157625 1215506.25
Bank 1505000 1505000 1522229 1454606
Cash 1000000 1100000 1133000 1166990
Total current asset 3555000 3707500 3812854 3837102.25
Total Asset 4125000 4319514 4488283 4546122
Capital 3500000 3500000 3500000 3500000
add Net income 796450 1435514 2234734 3234753
less Drawing 832123 1248185 1872276.8 2808415.125
Total capital 3464327 3687330 3862457.3 3926337.875
Current liability
portion of long term debt 5000 5000 5000 5000
Payments 155673 127185 120825.6 114784.319
Total curent Laibilities 160673 132185 125825.6 119784.319
Long term loan 500000 500000 500000 500000
Total liability and OE 4125000 4319514 4488283 4546122

REFERENCE
Entrepreneurship (tenth Edition) written by Robert D.Hisrich

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