Business Plan For Car Service Center For Klevtangdotcom

KLEVTANGDOTCOM (PTY) LTD
BUSINESS PLAN
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LAWRENCE and Partners Business Plan
Table of Contents
ABBREVIATIONS................................................................................................................................................4
ORGANISATIONAL DETAILS..........................................................................................................................5
1.0 EXECUTIVE SUMMARY..............................................................................................................................6
1.1 Problem statement................................................................................................................................................6
1.2 The Solution.........................................................................................................................................................6
1.3 Target Market.......................................................................................................................................................6
1.4 Management Team...............................................................................................................................................7
1.5 Financial Summary...............................................................................................................................................7
1.6 Funding Required.................................................................................................................................................7
2.0 FINANCIAL PROPOSAL..............................................................................................................................8
3.0 COMPANY DESCRIPTION..........................................................................................................................9
3.1 Business Activities and Background....................................................................................................................9
3.2 Number of Years in Existence..............................................................................................................................9
3.3 Product/Services...................................................................................................................................................9
3.4 Target Market Description.................................................................................................................................10
3.5 Business Location...............................................................................................................................................11
3.6 Key Business Strengths......................................................................................................................................11
3.7 Legal Structure...................................................................................................................................................11
3.8 List of Business Owners.....................................................................................................................................11
4.0 INDUSTRIAL ANALYSIS...........................................................................................................................13
4.1 Characteristics of Industry..................................................................................................................................13
4.2. Industry Developments (growing/declining/changing/static)...........................................................................14
4.3 City of Mbombela - Nelspruit............................................................................................................................15
4.4 New Entrants and Competition..........................................................................................................................17
4.5 Barriers to entry and Considerations..................................................................................................................18
4.6 SWOT Analysis..................................................................................................................................................20
5.0 PRODUCT AND SERVICES.......................................................................................................................21
5.1 Products and Services.........................................................................................................................................21
5.2 Competitive Advantage......................................................................................................................................22
5.3 Pricing Structure.................................................................................................................................................22
6.0 MARKET ANALYSIS...................................................................................................................................23
6.1 Market Analysis Summary.................................................................................................................................23
6.2 Marketing Strategy.............................................................................................................................................23
6.3 Market Segmentation..........................................................................................................................................24
6.4 What customers will like about the company’s products...................................................................................26
6.5 Competition........................................................................................................................................................26
6.7 Customer Demand..............................................................................................................................................27
7.0 MANAGEMENT AND ORGANISATION.................................................................................................28
7.1 Management Responsibility Allocation.............................................................................................................28
7.2 Resumes of Management...................................................................................................................................28
7.3 Position Description of all Key Members and Functions...................................................................................28
7.4 Board Structure of LAWRENCE and Partners..................................................................................................30
7.5 Advisors and Any Financial Information...........................................................................................................31
8.0 OPERATIONAL PLAN................................................................................................................................32
8.1 Production/Service.............................................................................................................................................32
8.2 Credit Policies....................................................................................................................................................35
8.3 Personnel............................................................................................................................................................36
8.4 Equipment, Technology and Inventory..............................................................................................................37
8.5 Legal...................................................................................................................................................................39
8.6 Exit Strategy.......................................................................................................................................................39
9.0 FINANCIAL PLAN AND PROJECTIONS................................................................................................40
10.0 SUPPORTING DOCUMENTS...................................................................................................................41
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ABBREVIATIONS
BBBEE Broad Based Black Economic Empowerment
BEE Black Economic Empowerment
CBD Central Business District
CIPC Companies and Intellectual Property Commission
DM District Municipality
DTI Department of Trade and Industry
EPWP Extended Public Works Programme
GDP Gross Domestic Product
IDC Industrial Development Corporation
IPAP Industrial Policy Action Plan
LM Local Municipality
GDP Gross Domestic Product
PFMA Public Finance Management Act
SMME Small, Medium and Micro Enterprises
Stats SA Statistics South Africa
FIGURES
Figure 1 Summary projected financials.......................................................................................................7
Figure 2 Motor Trade Statistics in South Africa........................................................................................14
Figure 3 Types of Motor Trade and related costs in South Africa.............................................................15
Figure 4 Unemployment rates from 2001 to 2015.....................................................................................17
Figure 5 Target Market Mix of LAWRENCE & Partners.........................................................................25
Figure 6 Geographical Market Segmentation of LAWRENCE & Partners...............................................25
Figure 7 Workshop process of vehicles.....................................................................................................32
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ORGANISATIONAL DETAILS
Company Name Klevtangdotcom (Pty) Ltd
Trading Name LAWRENCE and Partners
Registration Number
Date of Registration 21/06/2016
Physical Address
Postal Address
Bankers First National Bank
Income Tax Number 325874521
Directors Lawrence Garikai
Thobile Mnguni
Website Not available
Contact person(s) Mr Lawrence Garikai
Contact details Landline None
Fax None
Cellphone 0815335980
Email Klevtangdotcom @gmail.com
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1.0 EXECUTIVE SUMMARY
1.1 Problem Statement
Motor vehicles require regular repairs and maintenance in order for the vehicles to realise their useful
lives. Neglect of scheduled maintenance and random repairs may result in need for major works such as
refurbishment and rehabilitation of these motor vehicle assets. As such, all users and / or owners of
vehicles need to engage repairs, maintenance, refurbishment or rehabilitation. When vehicles are still in
service plans, scheduled maintenance and repairs must be done at certain specific designated centres.
However, when vehicles are out of motor plan and service plan, owners, leasees and users need to get
them attended (repairs, maintenance and major works) at any capable automobile service centre. In
addition, vehicles with high mileage and old from year of manufacture generally require more service and
maintenance attention and body works. The majority of automobile service centres do not have a section
where they sell spare patrts.
1.2 The Solution

Klevtangdotcom (Pty) Ltd (herein referred to as Klevtangdotcom or the company or the business) is a
start-up organization, located in Nelspruit, that is planning to offer a complete domestic and foreign car
repair service as well as a full-featured retail parts store. Klevtangdotcom will offer services such as
mechanical and electrical repair and maintenance work for automobile equipment (mainly motor
vehicles). The company’s personnel are going to be selected from a pool of certified and highly
experienced auto repair engineers and technicians. At LAWRENCE and Partners, its clients’ best interest
will always come first and everything it does will be guided by its values and professional ethics.
Klevtangdotcom is founded by Mr Lawrence Garikai who holds Starting Business Certificate with
University of Santa Clara of California (USA).
1.3 Target Market

After having conducted a market survey and feasibility studies, it was noted that there is a wide range of
both corporate and households potential clients who need the services of auto repair and maintenance
garages especially courier transport companies (trucks, buses, car hire and courier). The target market is
located in and around Nelspruit, travelers to and from Mozambique and Swaziland as well as visitors to
nearby touristic areas in Mpumalanga such as Hazyview and Kruger National Park as well as local and
provincial government.
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1.4 Management Team
Klevtangdotcom has a fairly flat organogram with one Managing Director who is currently overseeing the
management of the company. The Managing Director has gained managerial experience from other
ventures; other skills obtained by the Managing Director include technical skills, clerical skills and sales
and marketing skills. The structure of the company will be fairly flat with the rest of the members
supporting operations. The Managing Director majorly plays all key roles of planning, leading,
controlling, staffing, coordinating, directing and organizing.
A strong management team will be sought by selecting certified and highly experienced personnel in the
following areas; human resources management, sales and marketing and workshop management. The
incredible breadth of skill sets and knowledge that the management team will be possessing will allow
Klevtangdotcom to accomplish their lofty sales goals.
Klevtangdotcom is an exciting business venture that addresses an opportunity of having a full-service

auto repair facility that also has a complete retail parts center. These distinct but complimentary services
will have benchmarked customer service.
1.5 Financial Summary

It is projected that the business is a profitable model which require financial support for capital injection
to enhance efficiency in operations. Funding injection into the business is believed to be able to grow the
asset base, profitability and revenue.
Below is a summary of the projected financial information:
YR1 YR2 YR3 YR4 YR5
TOTAL GROSS INCOME 1 913 565 2 104 922 2 315 414 2 546 955 2 801 651
TOTAL COSTS SALES 1 049 400 1 157 707 1 273 478 1 400 825 1 540 908
TOTAL INVESTMENT COSTS 500 000 - - - -
TOTAL COSTS 500 000 - - - -
NET CASH FLOW 73 535 36 470 132 271 178 905 231 507
ACUMMULATIVE NET CASH FLOW 73 535 110 006 242 277 421 182 652 689
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Figure 1 Summary projected financials
1.6 Funding Required

Funding is sought for the following purposes:
● Capital Expenditure – purchase of machinery and equipment; and
● Working Capital Expenditure – for operational requirements.
Details of amounts required are detailed in section 2 of this plan.
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2.0 FINANCIAL PROPOSAL
This section details the amount required to fund capital expenditure and working capital needs as
highlighted in the previous sections.
Loan Amount required R500 000
Proposed repayment 5-year facility with equal monthly repayments

terms
Utilisation of funds Capital expenditure – Purchase machinery and equipment
Working capital – fund working capital requirements
Equity Cash
Collateral None None
Owner’s contribution None None
Security provided against None None

facility
Table 1: Funding requirement
For more details regarding assets to be purchased, please refer to the projected financials.
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3.0 COMPANY DESCRIPTION
3.1 Business Activities and Background
Klevtangdotcom is a start-up business that is South African based and set to focus on the following
services general vehicle repairs and maintenance, electrical repairs & maintenance, body repairs as well
as vehicle spare part sales. The company was established and formally registered as a private limited
company in 26/06/2016. The company has a single founder and Managing Director. The company
possesses a B-BBEEE status Level 1 with Procurement Recognition of 135%.
Vision
To establish a high standard and world class auto repair garage preferred in Nelspruit and other areas in
and out of South Africa.
Mission
● Employment creation;
● Economic development; and
● Youth empowerment.
Above all, our mission is to provide professional auto repair, maintenance services and other auto repair
related services that will assist business, individuals and non-profit organizations who own automobiles in
ensuring that their automobiles are always in good shape. It is aspired to build an auto repair garage that
can favorably compete with other leading brands in the automobile maintenance and repair services
industry.
Values
● Hard working;
● Integrity; and
● Relationship management.
3.2 Number of Years in Existence

Klevtangdotcom was established and registered as a company in 2016. However, the company has not
been in operation and as such is a new venture.
3.3 Product/Services
Klevtangdotcom are planning to offer the following services to its varied clients:
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 Vehicle repairs and maintenance
 Auto electrical repair and maintenance
 Vehicle body repairs
 Vehicle retail parts store.
Klevtangdotcom plans to acquire relevant core competencies amongst its crew to work on all makes and
models of domestic and foreign vehicles with well-equipped service bays at each location. It is planned
that all employees will focus on superior customer service and quick turnaround. Klevtangdotcom strives
to be accurate and honest with customers in terms of quoting cost estimates and repair completion time
estimates. The company’s employees will focus on delivering what they promise. This focus on building
strong customer relationships based on trust and integrity will be the catalyst in establishing a strong
regular customer base.
Klevtangdotcom will be utilising the highest degree of technology in managing a full range of auto parts
inventory. The goal is to never be out of specific parts, while maximizing inventory turnover. Strong
vendor relationships will be established with most reputable vendors in terms of shipping time of major
parts.
3.4 Target Market Description

Klevtangdotcom will focus on the following target market:
 Individual vehicle owners and users
 Taxi and bus operators
 Courier companies
 Provincial and local government (provincial departments such as Department of Transport and
Local and District Municipality)
 Trucking companies
 Referrals from towing companies
 Companies.
This targeted market is located in and around Nelspruit and surrounding areas such as Hazyview,
Malelane, Whiteriver, Drumrock, Alkmaar, Tekwana, Kanyamazane, Emoyeni, Matsulu, Baberton, Sabie
as well as travelers in and out from Mozambique, Swaziland and Kruger National Park.
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Targeted will include operators of vehicles that would have gone out of the service plans which require
operators to use own funds in repairs and maintenance of these assets. Between having a high level of
commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant
significant demand for auto repair services and auto parts.
3.5 Business Location

Klevtangdotcom is situated in Nelspruit-Mpumalanga. The workshop is planned to be located in the
industrial area of Nelspruit, Mpumalanga. It is planned that an already built workshop be leased on an
average a 2 year lease. Such a location will allow clients to easily access it and also allow or
accommodate noise from the repair and maintenance processes.
3.6 Key Business Strengths

The key strengths of the business have been identified as follows;
● The founder holds a Business Certificate with University of Santa Clara of California (United
States of America) and will use this to the advantage of the company by implementing relevant
business principles.
● The business plans to be located close to reasonable labor rates and easily accessible to clients; and
● LAWRENCE and Partners’ selling prices will be market aligned, reasonable and competitive.
● The company is a BBBEE level 1 thus is able to get attention from Government agents.
● The company has a 50% black women ownership.
3.7 Legal Structure

● Klevtangdotcom is a registered Private Limited company (Registration date – 21/06/2016) with
registration number 2016/ 234443/ 07.
● Klevtangdotcom is cleared with SARS and possess a tax clearance certificate
(0700/2/2019/A002958807) valid till 26/04/2020 thereafter Klevtangdotcom will go through the
process of renewing it.
● The company has two directors who are South African citizens.
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3.8 List of Business Owners
The profiling of the director of the company is noted below;
No. Name and Surname ID number Citizenship Gender
1 Lawrence Garikai 750503 5371 088 South African Male
2 Maggie Bongwe 770730 0410 084 South African Female
Table: Directors of the company
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4.0 INDUSTRIAL ANALYSIS
4.1 Characteristics of Industry
Automotive product lines usually include tyres and batteries. New and remanufactured parts for domestic
and imported cars, including suspension parts, ignition parts, exhaust systems, engines and engine parts,
oil and air filters, belts, hoses, and air conditioning parts, lighting, wiper blades, brake parts, chemicals,
including oil, antifreeze, polishes, additives, cleansers and paints, mobile electronics, including sound
systems, alarms, and remote vehicle starters, car accessories, including seat covers, floor mats, and
exterior accessories as well as hand tools, including sockets, wrenches, ratchets, paint and body tools,
jacks and lift equipment, automotive specialty tools and test gauges.
In general, an automobile repair shop (also known regionally as a garage or a workshop) is an

establishment where automobiles are repaired by auto mechanics and technicians. Automotive garages
and repair shops can be divided into following categories:
 The auto parts stores or motor-factors that also maintain service operations.

 Automobile repair workshops that are independently owned and operated businesses. These may
also include regional. In the South Africa, these sites are commonly certified by their respective
manufacturer to perform or national chains and franchises including OEM (Original Equipment
Manufacturer) repair sites such as in car dealerships warranty and recall repairs by that
manufacturer or distributor such as oil changes and other preventative maintenance items.
Independent automobile repair shops in South Africa may also achieve certification through
manufacturer sponsored programs.
 Specialty automobile repair shops are shops specializing in certain parts such as
brakes, mufflers and exhaust systems, transmissions, body parts, automobile electrification,
automotive air conditioner repairs, automotive glass repairs and installation, and wheel alignment
or those who only work on certain brands of vehicle or vehicles from certain continents of the
world. There are also automotive repair shops that specialize in vehicle modifications and
customization. Oftentimes, various specialized auto repair shops will have varied infrastructure and
facilities (for specific jobs or vehicles), as well as technicians and mechanics with different
qualifications.
 Online automobile repair shops (mobile mechanics) providing doorstep repair services and home
delivery of new and used auto parts of different late model and classic cars whose parts are not
widely available in the market.
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 Auto body repair shops. Some repair shops offer both mechanical and bodywork repair.
Automotive repair shops that specialize in bodywork repair are known as body shops. They offer
paintwork repairs to scratches, scuffs and dents, as well as repairs to the bodies of vehicles
damaged by collisions. Many body shops now offer paint less dent repair.
 Auto glass repair. Other repair shops offer auto glass repair. Automotive repair shops that
specialize in auto glass repair are known as auto glass repair shops. They offer auto glass repairs to
chips, cracks and shattered glass. The types of glass they repair include windshields, car
windows, quarter glass and rear windows. This type of damage is often caused by hail, stones, wild
animals, fallen trees, automobile theft and vandalism.
4.2. Industry Developments (growing/declining/changing/static)

4.2.1 The Automobile Sector in South Africa
Between 2006 and 2015, the concentration ratio (five largest) ranged between 2% and 8%, suggesting that
the automobile market is not concentrated. This market structure is characterized by a large number of
sellers and none could influence prices. Below is a tabulation of the statistics:
Figure 2 Motor Trade Statistics in South Africa
Data in Table above also show that concentration ratios have declined across all motor trade sub-sectors.
This decline could suggest that the motor trade industry was opening up for new entrants, particularly for
small firms. Data by enterprise size in Figure 2 show that there was a notable change in income
contribution by enterprise size. The proportion of income generated by large enterprises has declined over
time. In 2006, large enterprises accounted for 70% of total income, which declined to 62% in 2015. In
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contrast, the contribution of both medium and small enterprises to total income has increased. The
declining income contribution by large enterprises and the increasing contribution by medium and small
enterprises suggest two possibilities – large enterprises downsizing their operations and/or the motor trade
industry opening up to more medium and small firms.
4.2.2 Income contribution of the sector

Data in Table below show that the two largest and the two smallest income contributors remained the
same between 2006 and 2015. However, what did change was the magnitude of contributions between the
two periods. Notable changes in income contributions were observed in retail sales of motor vehicles,
retail sales of automotive fuel, maintenance and repair of motor vehicles and wholesale sales of motor
vehicles. The market share of retail sales of motor vehicles declined from 58% in 2006 to 47% in 2015. In
contrast, the market share of automotive fuel increased from 18% to 29% during the same period.
Similarly, maintenance and repair of motor vehicles lost market share, from being the third largest
contributor (10%) in 2006 to one of the lowest contributors (4%) in 2015. The notable changes in income
contributions which are discussed in detail (in separate sections below) relate to observed changes in
retail sales of motor vehicles and retail sales of automotive fuel.
Figure 3 Types of Motor Trade and related costs in South Africa
4.3 City of Mbombela - Nelspruit

The City of Mbombela is one of the municipalities of South Africa, located in the Ehlanzeni District
Municipality, Mpumalanga province. The metropolitan areas of Pretoria and Johannesburg are located
320 km inland, with the border post at Komatipoort approximately 120 km to the east and the
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Mozambican coastline being around 200 km away and 55 km from the famous Kruger National Park. The
Municipality is also bordered by Swaziland, situated 167km from the CBD, and 127km from Barberton.
Urban areas in the municipality include Mbombela, White River, Hazyview and Umjindi as well as
former homelands towns such as Kabokweni, Kanyamazane and Matsulu.
4.3.1 Economic Activity

The top four economic sectors that contribute to substantial employment within the City of Mbombela
municipal area as well as their percentage contribution are listed below.
 Government services (22%)
 Finance and business services (17%)
 Trade and communication (17%)
 Community services (16%).
4.3.2 Population Size

According to Community Survey 2016 results which is based on the 2016 municipal boundaries, the
Mbombela municipal area had a total population of 695 913. This population constitutes 39.6% of the
entire population of Ehlanzeni District. Hence, the municipal area of Mbombela is the most populous
within the Ehlanzeni District (Community Survey, 2016). The Mbombela municipal area has recorded
annual population growth rate 2.3% per annum between 2001 and 2011 (Stats SA, 2011). Between 2011
and 2016, however, an annual population growth rate of 1.2% was observed within the municipal area.
These trends can be attributed to the municipality’s economic potential to attract people from other
countries, provinces and municipalities.
According to Community Survey 2016, the municipal area of Mbombela is a destination for about 35.6%
of all immigrants (both from other provinces and other countries) coming into Ehlanzeni District. The
City of Mbombela is currently in a process of developing a strategy to manage the challenges of
migration.
4.3.3 Employment profile
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Figure 4 Unemployment rates from 2001 to 2015
Although the unemployment rate for the former Umjindi municipal area has increased by 0.5% between
2001 and 2011, it has however declined to 24.1% in 2015 indicating a reduction of 2.8%. The former
Mbombela municipal area has been showing a decline in the unemployment rate, from 37.7% in 2001 to
28.1% in 2011 implying a reduction of 9.6%. By 2015, the unemployment rate for the former Mbombela
municipal area stood at 27.6%, indicating a 0.5% reduction.
Even though the unemployment rate for the two former municipal areas remain high, the implementation
of the Local Economic Development (LED) programmes, Extended Public Works Programme (EPWP)
and Community Works Programme (CWP) helped in creating job opportunities to the communities
including women, youth and people with disability. Moreover, it is anticipated that the LED strategy,
Spatial Development Framework (SDF), and the Vision 2030 Strategy will also assist in identifying key
areas that the City of Mbombela can invest in to create more job opportunities.
4.4 New Entrants and Competition

The market that Klevtangdotcom will be operating in has limited significant threats of new entrants. This
is largely because the company will be offering a one stop shop with repairs, maintenance and parts sales
all under one roof.
However, Klevtangdotcom will face several auto repair and auto parts competitors in the local area. Only
a quarter of these competitors offer auto repair services, auto parts inventories, mobile electronics, car
accessories among others under one umbrella. Among these, only a few are major national chains. The
remainder are small privately-owned establishments.
Primary competitors are engaged principally in the retail sale of automotive parts, tyres and accessories,
automotive maintenance and service and the installation of parts. Larger competitors have adopted the
"supercenter" store model, a freestanding, "one-stop" shopping automotive warehouse that features state-
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of-the-art service bays. These "supercenters" carry thousands of stock-keeping units and serve the
automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and
"buy-for-resale" customer sectors.
Large competitors' stores typically carry the same basic product line, with variations based on the number
and type of cars registered in the different markets. A full complement of inventory at a typical
supercenter includes an average of approximately 25,000 items.
Klevtangdotcom will compete well by focusing on convenience and offering a high level of customer
service. Additionally, building an honest reputation will be a major factor in repeat business and building
a large base of regular, loyal customers. The company will focus on selling after-market parts that are
durable and reliable, with warranty of a specific acceptable period.
4.5 Barriers to entry and Considerations

Barriers to entry are factors that prevent a startup from entering a particular market. As a whole, they
comprise one of the five forces that determine the intensity of competition in an industry (the others
are industry rivalry, the bargaining power of buyers, the bargaining power of suppliers and the threat of
substitutes). The intensity of competition in a certain field determines the attractiveness of a market (that
is, low intensity means that the market is attractive).
Factors involved as barriers to entry may be either involuntary (for example, the dominating company’s
absolute cost advantage) or deliberate (for example, high spending on advertising by incumbents makes it
very expensive for new firms to enter the market).
Barriers to entry act as a deterrent against new competitors. They serve as a defensive mechanism that
imposes a cost element to new entrants, which incumbents do not have to bear. Startups need to
understand any barriers to entry for their business and market for two key reasons:
1. Startups might seek to enter a business with high barriers to entry. Doing so would put the start-up
at a significant disadvantage that is difficult to overcome.
2. Startups that become market leaders must understand how to protect their position by building
barriers to entry.
The following factors have been identified and are likely to affect the company;
Economies of scale:
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These are declines in the unit costs of a product as the absolute volume per period increases. These force
the entrant to either come in at a large scale (risking strong reaction from incumbents) or a small scale
(forcing a cost disadvantage). Small scale retailers will not be able to enjoy economies of scale as they are
not able to purchase in bulk and accommodate huge volumes of inventory.
Product differentiation
Incumbents have brand identification and customer loyalties. This forces entrants to spend heavily to
overcome these loyalties. Startups may bring a different product to market, but its benefits must be clearly
communicated to the target customer. Startups must find an effective positioning, which often requires
marketing resources beyond their means. Well established automobile retailers sell branded products that
are regarded original. Aftermarket parts are sometimes perceived as inferior and less durable making
them less favourable.
Capital requirements:
These are the financial resources required for infrastructure, machinery, R&D and advertising. This
nature of business requires a significant investment in machinery and equipment such as bench, towing
strap, base free lift, compressor, bench grinder and high technical equipment such as fuel compression
tester and diagnostics machines.
Access to distribution channels

This can be a barrier if logical distribution channels have been locked up by incumbents. For example,
original parts may only be supplied to specific retailers.
Cost disadvantages independent of scale:

Incumbents may have cost advantages that cannot be replicated by a potential entrant. Factors include the
learning or experience curve, proprietary product technology, access to raw materials, favourable
locations and government subsidies.
Industry policy:
Operations in the auto mobile industry currently requires that vehicles that are still in service plans must
only be serviced, repaired and maintained by certain service centres, thereby eliminating new entrants that
do not have the necessary accreditation and registration.
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4.6 SWOT Analysis
Strengths Weaknesses
● The Managing Director of the company has ● The company lacks sufficient machinery
vast knowledge and experience in business and equipment to commence with
management and is highly passionate about operations.
the concept.
● The company lacks enough skilled labour
● The business will be located in an area to be able to start operating.
easily accessible by potential clients.
● The company lacks capital to finance its
● LAWRENCE and Partners’ selling prices capital expenditure and operating
will be market aligned, reasonable and expenditure.
competitive.
● The company is not registered with RMI
● The company plans to operate on adopted body.
and standardised policies and procedures.
Opportunities Threats
● Economic growth of SMME businesses ● Compliance requirements are sometimes

being championed by Government policies burdensome and costly for a small
and agents. developing enterprise e.g. the requirements
for health and safety
● BBBEE opportunities in an industry
without many black owned companies. ● Industry specific requirements for
registrations with bodies such as RMI
● Dedicated Government based training
programmes ● Policy changes and requirements, including
for health and safety.
● Available labour at reasonable rates due to
high unemployment in area of operation ● Technological changes in the industry
requiring investment in high technology
● Job creation
equipment which may be costly
● Economic development
● Increasing inflation resulting in increased
● Registration with panel beating bodies and pressure of profits,
mechanical bodies for recognition and
● High competition from well established
support.
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players in parts retail, and auto mobile
services.
Table 3: SWOT analysis
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5.0 PRODUCT AND SERVICES
5.1 Products and Services
Klevtangdotcom will be offering the following services;
 Repairing and replacing automotive engines
 Performing general automotive repairs
 Brake repair services
 Scheduled and preventative repair and maintenance services
 Repairing trucks
 Repairing and replacing automotive exhaust systems
 Repairing and replacing mufflers
 Repairing automotive transmissions
 Repairing automotive brakes
 Performing automotive electric repairs
 Performing automotive wheel alignments
 Repairing automotive radiators
 Wheel alignment and repair services
 Selling spare parts and accessories
Additional services will include:

 Shuttle service for clients to their destinations within a 40km radius.
The market of auto repair services and parts sales is very fragmented. Most auto shops usually offer either
repair services or parts inventory. The niche where Klevtangdotcom positions itself represents auto
centers that offer both auto services and parts at one convenient location.
Klevtangdotcom will have the core competencies amongst its crew to work on all makes and models of
South African manufactured and imported vehicles. With well-equipped bays, all employees will focus on
offering superior customer service and quick turnaround times. The company will strive to be accurate
and honest with customers in terms of quoting cost estimates and repair completion time estimates. The
focus will be building strong customer relationships based on trust and integrity and it is believed that this
will be the catalyst in establishing a strong regular customer base.
23 | Page
Klevtangdotcom will utilise a high degree of technology in managing a full range of auto parts inventory.
The goal is to never be out of a specific part, while maximizing inventory turnover. Strong vendor
relationships will be established and will always be improved and expanded with the most reputable
vendors in terms of shipping time of major parts.
5.2 Competitive Advantage

Klevtangdotcom has the following factors creating a competitive advantage for the company:
 Planned heavy focus on customer convenience by offering shuttle service
 Planned rapid turnaround on auto repair jobs
 Planned use of referral network of a few local major tow truck companies
 Locality – being located close to customers
 Empowerment – The Company’s B-BBEE status of level 1is favorable to suppliers and
customers and other stakeholders such as funders.
 The Managing Director has descent understanding of the industry and an adopted approach to
growth strategy of the company.
5.3 Pricing Structure

The company will be offering its products and services at prices relatively lower than the average market
prices so as to offer products and services which have competitive and preferable. Descent margins will
be levied on all imported parts as well as locally procured commodities.
Costing on mechanical and electrical auto repair works will be based on the parts to be purchased, labour
input (per hour rate) and a reasonable margin to realise profitability. The company employ and utilize
permanent staff to avoid inflated consultant or outsourcing costs thus allowing reasonable pricing on its
products and services.
24 | Page
6.0 MARKET ANALYSIS
6.1 Market Analysis Summary
Klevtangdotcom has a focus on meeting the demand of a regular local resident customer base, as well as
towed vehicle drop-ins from local and freeway traffic traveling on nearby freeways. Klevtangdotcom will
establish relationships with a few major local tow truck companies for referral business of stalled vehicles
requiring a tow to an auto repair facility.
The company estimates that about 80% of revenues will come from the established local clientele and
20% from the visitor and freeway traffic tow-ins. Clients will comprise households and companies.
6.2 Marketing Strategy

6.2.1 Pricing policy
A competitive pricing policy has been adopted where prices below the average market related prices will
be levied for Klevtangdotcom products, as previously discussed. The company will try to maintain
operation costs low to enable the company to yield a healthier profit.
6.2.2 Promotion, advertising and selling

A number of marketing activities have been identified to penetrate the markets that are planned with the
planned passage of time. These activities include:
a) Word of mouth,
b) Flyers
c) Business cards
d) Website
e) Radio advertisements
f) Tenders and requests for quotations
(a) Word of mouth

Word of mouth is a key strategy of creating awareness of Klevtangdotcom products and services that the
company will utilise. The company will implement this strategy by making personal calls to the managers
responsible for the service of vehicles within various organisations.
(b) Flyers
25 | Page
A fairly reasonable number of flyers will be printed and distributed to potential clients. These flyers will
be containing details of the company name, address, contact details and products. The brochures are
aimed at creating awareness of the brand as well as creating an image for potential consideration on future
contracts. The flyers will be distributed to owners of taxis, buses, vehicles, towing companies and other
related companies in and round Nelspruit. Brochures will be distributed at malls as well.
(c) Business cards

Business cards will be developed and printed for the Managing Director. These business cards will
contain details of LAWRENCE and Partners, contact details and products the company offer. These
business cards will be distributed at all key meetings as well as to all current and potential clients. This
strategy will serve as a key marketing tool to communicate the ‘message’ of LAWRENCE and Partners.
(d) Website
A website will be developed to communicate the services and products, location, mission and vision, as
well as any other critical information regarding the business. This is believed to be a tool to access clients
local and in other provinces of South Africa as well as potential clients from Mozambique and Swaziland.
(e) Radio advertisements

Regular advertisements on the local popular radio station will be done to convey the message of the
company as well as to increase publicity.
(f) Tenders and requests for quotations

The company will register on Central Supplier Database (CSD) and respond to Government tenders and
Request of Quotation for related services. The company will regularly check the websites of these
Government institutions and submit proposals such as etender website.
6.3 Market Segmentation

Klevtangdotcom will be focusing on companies and individual clients. This market, including transport
operating companies, look for high quality, rapid service with as much convenience as possible. The
market that the company is targeting can be segmented as below:
 Taxi and bus companies
 Courier companies
 Households
 Government Institutions
26 | Page
 Trucking companies
 Other companies (which have vehicles central to their operations such as wholesalers, retailers
and hardwares).
It is believed that the target market mix will be as follows:
Target Market Mix: LAWRENCE & Partners
20% Taxi and bus companies

30% Courier companies
Households
Trucking companies
20% Government institutions
10%
20%
Figure 5 Target Market Mix of LAWRENCE & Partners
With respect to geographical market segmentation, the following is anticipated:
LAWRENCE & Partners: Geographical

Market Segmentation
10% Nelspruit
Surrounding towns and
5% villages
Mozambique
10% Swaziland
Passerbys
55%
20%
Figure 6 Geographical Market Segmentation of LAWRENCE & Partners
27 | Page
6.4 What customers will like about the company’s products
It is anticipated that customers will like the following conveniences emanating from engaging with
LAWRENCE and Partners:
● Location of business – as discussed, the company is located close to potential clients;
● Reasonable pricing of the company products – LAWRENCE and Partners’ pricing strategy aligns
to being preferred by potential clients;
● Economic empowerment intervention – companies engaging the products of the company will
contribute towards B-BBEE empowerment and contribute to better B-BBEE scoring which comes
through working with local suppliers and service providers; and
6.5 Competition
6.5.1 List of major Competitors
There are a few competitors offering automotive services as this sector involves expert knowledge and
specialized equipment for the operations of this business. However, the automotive services industry the
business wishes to explore has the following competitors;
● Established brand service centres – such as Toyota, Nissan, Hyndai, Mercedes Benz, Honda,
Chevrolet, BMW, VW and others,
● Hi-Q,
● Tiger wheels,
● Midas., and
● Small scale local auto mobile service providers and part suppliers.
Other competitors in automobile service space include:

Henry Motors Steves Auto Clinic Nelspruit Ford
Car service city Autoway JC Auto Services
Silver Arrows Service Cenmtre Nelspruit Car Radio Carfix Service Centre
Union Motors Commercial ACD Auto Care and Diagnostics Bosch Car Service Brayshaw
Vehiucle service centre HMD Performance Exhaust and Disesl Service Centre
Hudson Autobody Speed Shop Service Nelspruit Break and Clutch
The well-established brand service centres are competitors who are well established and have sufficient
machinery for the automotive services process. They also have enough labour to make the automotive
28 | Page
services effective and efficient in a reasonable space of time. However, these are generally pricy in their
services as their parts are original.
6.5.2 Major advantages of Klevtangdotcom

A range of the advantages of the company are noted below:
● Klevtangdotcom is fairly small and is able to pay attention to key processes to ensure that there are
essential for retention of clients.
● Governance and processes are better managed when a business is relatively small.
● The BBBEE status of the company will enable the company to be funded as there are opportunities
to empower black owned small businesses.
● Employment creation by Klevtangdotcom will directly contribute towards reducing poverty,
enhancing the economic environment as well as social status of Nelspruit and surrounding areas.
● The company has managed to build customer relationships with some towing companies. This
creates an opportunity of an automotive services contract being granted to the company.
6.5.3 What value Klevtangdotcom brings to customers that competitors do not.

The values that Klevtangdotcom brings to the customers that competitors do not have include:
● Managing Director will be directly involved in the processes to oversee the implementation of
automotive activities;
● A better automotive service will be offered by the company; and
● Locality advantage – taking advantage of its strategic location.
6.7 Customer Demand

It is projected that there will be a sustainable customer demand for the products and services offered by
LAWRENCE and Partners. Once the capital assets have been procured, the company will be able to
penetrate other automotive service markets.
29 | Page
7.0 MANAGEMENT AND ORGANISATION
7.1 Management Responsibility Allocation
The management role is played by the Managing Director. Operations, finance, administration and
marketing units have been established to address the respective functions. Mr Lawrence Garikai is the
Managing Director. The company’s functional structure is as follows:
7.2 Resumes of Management

7.2.1 Managing Director – Mr. Lawrence Garikai
Mr. Ndlovu has extensive experience in process and financial management sector that he has gained
while engaged with Old Mutual SA and Sanlan Core Solutions. He has also worked as an Immigration
officer, a Passenger admin officer and a Customs border control officer for the Government of South
Africa.
Mr Ndlovu has qualifications which include Diploma in Human Resources Management (Allenby in
Home Study), Diploma in Cost and Management Accounting (Institute of Commerce and Administration
of South Africa), Diploma in Metropolitan Traffic Science, Boiler Making Certificate, and is currently
studying towards a LLB law degree with UNISA.
*See attached CV for more details on qualifications and employment history of the Managing Director
7.3 Position Description of all Key Members and Functions

a) Managing Director
The Managing Director is responsible for the following:
● Define and implement the strategy for the company
● Assume accountability for all company operations
● Financial performance management
● Support corporate initiatives such as asset optimization to ensure achievement of objectives
● Provide strategic direction and leadership for overall internal technical services
● Direct the development of and provide oversight and assurance for policies, procedures and
standards to ensure compliance
● Lead the management of legal appointments relevant to the various sub-disciplines where
applicable to ensure compliance
● Provide support, advice and oversight for operational excellence to ensure customer satisfaction
30 | Page
● Manage the business’ expenditure within the approved budget to ensure effective cost control and
savings
● Ensure work ethics is of such a nature that workers continuously strive towards improving their
own performance
● Manage a safe and healthy work environment where workers can deliver their outputs within a
controlled risk environment
● Keep environmental impact within statutory requirements to ensure compliance with statutory
requirements
● Develops and ensure implementation of the company policy.
b) Workshop manager
Roles and responsibilities include:
 Directly managing the workshop staff
● Coaching other employees on how the operations of their duties is supposed to be executed
● Mentoring employees
● Managing workshop outputs, quality and time
● Advocate for organization and employees
● Develops strategic plan by studying new automobile technological, and financial opportunities,
presenting assumptions and recommending objectives
● Accomplishes subsidiary objectives by establishing plans, budgets and results measurements;
allocating resources; reviewing progress; making mid-course corrections
● Maintains professional and technical knowledge by attending educational workshops; reviewing
professional publications and establishing personal networks, benchmarking state-of-the-art practices
● Makes certain the auto repair and maintenance department perform effectively, coordinate employee
efforts, and facilitate communications between management and employees.
c) Human Resources and Administration Management

● Responsible for overseeing the smooth running of HR and administrative tasks for the organization
● Defining job positions for the recruitment and managing interviewing processes
● Carrying out stuff induction for new team members
● Responsible for training, evaluation and assessment of employees
● Responsible for arranging travel, meetings and appointments.
31 | Page
d) Sales and Marketing Management
 Manage external research and coordinate all the internal sources of information to retain the
organisation’s best customers and attract new ones.
 Model demographic information and analyse the volumes of transactional data generated by
customer.
 Identifies development opportunities, follows up on development leads and contracts. Participates
in the structuring and financing of projects and assuring completion of development plan.
 Writing proposal documents, negotiate fees and rates in line with organisations’ policy.
 Develop, execute and evaluate new plans for increasing sales.
 Create new market cum business for the organization.
 Empower and motivate the sales team to meet and surpass agreed targets.
e) Auto Repair and Maintenance Engineers and Technicians

● Repairing and replacing automotive engines.
● Performing general automotive repairs.
● Scheduled and preventative repair and maintenance services.
f) Finance Function
● Responsible for preparing financial reports, budgets, and financial statements for the organization
● Provides managements with the financial analyses, development budgets and accounting reports
● Analyses financial feasibility for the most complex proposed projects; contacts market research to
forecast trends and business conditions
● Responsible for financial forecasting and risks analysis
● Performs cash management, general ledger accounting, and financial reporting for one or more
properties
● Responsible for developing and managing financial systems and policies
● Responsible for administering payrolls
● Ensuring compliance with taxation legislation
● Handles all financial transactions for the company.
7.4 Board Structure of Klevtangdotcom

Klevtangdotcom does not a have a board of directors in place. The company is run by the Managing
Director who is the executive head of the company.
32 | Page
7.5 Advisors and Any Financial Information
Advisory services will be sourced to assist with auditing of annual financial statements and other
technical solutions. This strategy will be adopted to ensure that the annual financial statements will be
signed off by an Accounting Officer. Technical assistance will be sought for any technical fault processes.
33 | Page
8.0 OPERATIONAL PLAN
8.1 Production/Service
8.1.1 Methods of service delivery, product or service development, quality control,
inventory control.
The generic process of repairs and maintenance is as follows:
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Figure 7 Workshop process of vehicles
Maintenance tasks commonly carried out during a motor vehicle service include:
 Change the engine oil
 Replace the oil filter
 Replace the air filter
 Replace the fuel filter
 Replace the cabin or a/c filter
 Replace the spark plugs
 Check level and refill brake fluid/clutch fluid
 Check Brake Pads/Liners, Brake Discs/Drums, and replace if worn out.
 Check Coolant Hoses
 Check the charging systems
34 | Page
 Check the battery
 Check level and refill power steering fluid
 Check level and refill Automatic/Manual Transmission Fluid
 Grease and lubricate components
 Inspect and replace the timing belt or timing chain if needed
 Check condition of the tires
 Check for proper operation of all lights, wipers etc.
 Check for any Error codes in the ECU and take corrective action
 Use a scan tool to read trouble code.
Mechanical parts that may cause the car to cease transmission or prove unsafe for the road are also noted
and advised upon.
8.1.2 Additional operational processes

a) Meeting Management
To enhance efficiency, various meetings will be conducted. One formal meeting will be conducted
weekly and this will be for Managing Director with operational staff. Other key issues will be discussed
informally.
b) Policies and Procedures

Policies and procedures will be developed to guide and standardise various activities of the company.
These policies have been developed by the Managing Director in consultation with the staff and
management. Some of the policies and procedures to be developed and utilised include:
● Financial Management policy;
● Human resources Management policy;
● Marketing and Administration Management policy; and
● Operations Management policy.
c) Financial Management
Klevtangdotcom plans to adopt a Financial Management policy. Some of the key internal controls to be
included in the policy include:
● Recording all expenses as and when they are incurred on the day on which they are incurred into
the financial system;
35 | Page
● Recording all receipts on the day when funds are received by Klevtangdotcom into the financial
system;
● Issuing out receipts or acknowledgement of receipt for all funds received;
● Closing the books of the company at the end of the period;
● Recording all cash transactions in a cash book;
● Recording all credit transactions in the respective ledgers;
● Generating reports to account for financial transactions;
● Preparing management accounts aimed at informing management of financial positioning;
● Conducting bank reconciliations regularly – monthly reconciliations of cash book and bank
statements and ensuring that all resistant transactions are cleared; and
● Preparing annual financial statements.
(d) Performance Management

Performance will be managed according to a simple performance model. Targets of expected
performance for all employees as well as for the company will be set at the start of each financial year.
These targets will then be broken down per project. The key performance areas include client
management, complaints management, new business, sales, financial management, amongst others.
Key performance indicators will be also identified based on set targets. Some of the key performance
indicators could be the number of new clearing contracts awarded, revenue generated, client retention
rate, and others. Reviews of performance will be done every quarter of the business’s financial year. This
process will be done by the Managing Director and the employees individually.
(e) Risk Management

An integrated risk management system will be adopted where key risk activities such as development of
risk registers, risk assessments, risk identification, risk analysis, risk responses, risk training and
workshops, as well as the adoption of a risk management policy. This strategy will be aimed at
proactively identifying risks and introducing mechanisms to manage these risks to acceptable levels
within the company’s appetite levels. Key risks being managed will include theft, injuries, absence of
market, loss of clients, failure to complete jobs on time and substandard work.
(f) Operational Tools

In order to enhance operational efficiency and effectiveness, there are various tools which will be
developed to be utilised in managing the business. These include:
36 | Page
● Log sheets and attendance registers – to monitor operational staff and align to remuneration;
● Checklists – to ensure that all that planned activities have been done;
● Strategic plans – to map strategy, identify opportunities and leverage on strengths;
● Operational plans – to simplify and break down operations for all staff to operate;
● Contracts of employment – to help manage staff issues and detail their specific duties;
● Procedures documents – to guide all staff members (operational staff) on all related procedures;
● Minutes of meetings – to serve as reference for company direction on future dealings and to track
previous decisions;
● Report templates – to standardise formats of reports for everyone in the company to understand;
and
● Codes of conduct – to guide and formalise the expected behaviour amongst all staff.
8.2 Credit Policies

8.2.1 Credit policy description
In case of client negotiating to purchase on credit, a credit investigation is done on the client before credit
granted. In negotiated instances, clients will be requested to settle debtor accounts within a period of 30
days. This period will be to allow for Klevtangdotcom to have a fairly short debtor’s collection period and
this increases liquidity and an ability to fund operational processes smoothly. This is believed to minimise
cash shortages thus reducing operational inefficiencies.
A credit control and debt collection policy / guidelines will be developed to guide activities in respect of
debtor management, billing and collection. This policy will be signed off be the Managing Director. The
policy will cover debtors from the sale of timber products.
8.2.2 Selling on credit

As indicated in the section above, negotiations will be done to ensure that transactions are on a cash basis.
However, in negotiated situations, debt settlement within 30 days will be required to allow for liquidity
and operational efficiency.
8.2.3 Terms when selling on credit

The following terms will apply:
● An invoice will be issued and the finance and administration unit will pursue the settlement of the
invoice immediately or if negotiated within 30 days.
37 | Page
8.2.4 Process of performing a credit check.
The nature of credit checks will be in the form of the following:
● Klevtangdotcom will ensure that, where necessary, credit is extended to reputable institutions such
as well-established companies that uses timber products and have been dealt with before. This
process will be guaranteed by the intermediary seller.
8.2.5 Collection policies description

Collections will form a part of the credit control and debt collection policy. Collections will be for the
designated time frames. No interest will be levied on outstanding amounts unless the accounts are in
arrears for over 60 days. Should interest be levied, a rate equal to the coupon rate of a treasury bill or
equivalent will be levied. Penalties on late payment will not be levied unless the customer fails to pay the
account after 60 days. Penalties to be levied will be equal to 5% of the amount owed.
8.3 Personnel
8.3.1 Number of employees required
A total of 10 people including the Managing Director will be required to run the company as well as its
short, medium and long-term growth strategy. These will be split to cover the following key functions;
● Management
● Administration and Finance
● Workshop
● Logistics.
8.3.2 Necessary Skills Required

Key skills required include;
Management
● People management;
● Planning;
● Organising;
● Leading; and
● Controlling.
Administration and Finance

● Bookkeeping;
● Reporting;
38 | Page
● Computer skills;
● Ensuring that all administrative issues are managed effectively and efficiently;
● Managing orders;
● Ensuring that contracts and service level agreements are administered precisely; and
● Managing all paper activities with regards to payments.
Automobile Repair and Maintenance Engineers and Technicians

● Diagnostic skills
● Automobile technical skills
● Work ethic, problem solving skills, technical aptitude
8.3.3 Pay and personnel policy

A human resources management policy will be developed and adopted by management. This policy will
guide how employees and management are managed. The policy will seek to clarify matters in relation to
basic conditions of employment, labour relations, performance and discipline.
Highlights from the policy are that performance will be monitored to ensure that all staff members
perform to the required standard. Poor performance will call for developmental interventions such as
induction, training, coaching, as well as mentorship. Punitive mechanisms following failure to cope after
developmental interventions will include demotion, reduction of salary or dismissal. Log sheets,
attendance registers and checklists will be used to monitor attendance and performance.
8.3.4 Position descriptions and training programmes

Training
Klevtangdotcom is in the process of adopting a training policy. The policy will include an intense
induction programme covering occupational risk and safety management. Plans are in place to train the
technical and administration staff in relevant automobile services processes as well as other operational
and maintenance processes. The Managing Director will make a direct effort to pass the skill to other
members for continuity and sustainability of the business.
8.4 Equipment, Technology and Inventory

8.4.1 Inventory/Assets Held by LAWRENCE and Partners
● The company is a start-up and as such has not purchased any capital assets.
39 | Page
8.4.2 Value of inventory/assets held
No inventory is currently being held or has been purchased by the company as it is a start-up.
8.4.3 Equipment and technology necessary to operate the business

In order to execute on the company strategy, the below assets (capital assets and minor assets) are to be
procured by the business:
Description CODE QTY PRICE Nett Price
3D Wheel Aligner 3D 1 R 145 000,00 R 145 000,00
4 Post wheel aligner lift, 5 ton SG4 1 75 500,00 R 75 500,00
Fully Automatic Tyre Changer tf311 1 26 000,00 R 26 000,00
Technoroller - Help arm HA 1 12 500,00 R 12 500,00
Wheel Balancer ba201 1 26 000,00 R 26 000,00
2 Post Hoist 4 ton IMW2910 1 31 000,00 R 31 000,00
4 post hoist 3.6 ton SS7000 1 43 000,00 R 43 000,00
Low level hoists LR 45 1 33 000,00 R 33 000,00
AIR COMPRESSOR 5.5HP 200L 8BAR 480LPM V-0.48/8 1 15 000,00 R 15 000,00
3 Ton Trolley Jack - Short autotj 1 2 700,00 R 2 700,00
3 Ton Axle Stands MOB 2030 4 555,00 R 2 220,00
½” Impact Wrench air7430 1 1 450,00 R 1 450,00
Impact Sockets SET OF 11 1 3 000,00 R 3 000,00
Starter Pack wheel Weights - SP 1 3 500,00 R 3 500,00
Raco Tool Box & tools RSA1000 1 3 990,00 R 3 990,00
Std work bench 1800 x 750 x 850 REI 2 1 6 550,00 R 6 550,00
Way Wheel Spanner Cars Ged622761 1 355,00 R 355,00
Tyre Lever 38/500 Ged633283 1 320,00 R 320,00
Tyre Gauge MK 4 1 1 200,00 R 1 200,00
TOTAL R 432 285,00
Table: Assets to be procured by LAWRENCE and Partners
8.4.6 Asset Management

Capital assets are resources of value owned or controlled by an entity, resulting from past events, from
which future economic benefits or service potential is expected to flow to the entity and have a useful life
of more than a year. Effective capital asset management preserves the value and utility of an
organization’s fixed assets and deploys those assets in a manner that creates future economic benefits
and / or service potential. A vibrant asset management strategy ensures that fixed asset data will be more
complete, accurate and up-to-date so that the information necessary for accounting, financial, tax
40 | Page
reporting and management decision making is available when needed. Klevtangdotcom will embark on
adopting the key strategies to ensure effective management of its assets.
A condition assessment of the capital assets (majorly plant equipment) owned or controlled by the
Klevtangdotcom will be checked once a quarter by the delegated person and a report of what needs to be
done on the equipment in a form of maintenance plan will be generated by the Managing Director.
Useful lives for the equipment have been identified as follows:

● Machinery and equipment 6 years
● Vehicles 6 years
Upon reaching the useful life, an assessment including an assessment of asset condition, utilization,
financial performance and efficiency will be conducted to determine an appropriate decision which may
include disposal and replacement.
8.5 Legal
8.5.1 Legal issues
● Klevtangdotcom is a registered private company with CIPC (Companies and Intellectual Property
Commission);
● The company possesses a BBBEE certificate with a Level 1 status;
● Klevtangdotcom has a formal business bank account;
● The company is cleared with SARS with a tax clearance certificate expiring in April 2020
renewable;
● The two directors (also the founding members) are South African citizens.
8.6 Exit Strategy

8.6.1 Exit strategies should the firm perform lower than expectations
The best option of exit when the business is not performing well is as follows:
In the event that the company is performing below the expected standards or it is declared insolvent the
vehicles and machinery & equipment will be auctioned. The proceeds will be used to pay up any debt the
company has and also to invest in other business opportunities and projects the company realize as
fruitful.
41 | Page
8.6.2 Liquidation of assets
The following strategies are feasible to dispose the inventory:
● All the assets the company possess will be disposed of at market value less any wear and tear of the
particular asset.
42 | Page
9.0 FINANCIAL PLAN AND PROJECTIONS
43 | Page
10.0 SUPPORTING DOCUMENTS
44 | Page

Business Plan For Car Service Center For Klevtangdotcom

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KLEVTANGDOTCOM (PTY) LTD

Trading Name LAWRENCE and Partners

Date of Registration 21/06/2016

Bankers First National Bank

Income Tax Number 325874521

Directors Lawrence Garikai

Website Not available

Contact person(s) Mr Lawrence Garikai

Contact details Landline None

Email Klevtangdotcom @gmail.com

1.2 The Solution

1.3 Target Market

Klevtangdotcom is an exciting business venture that addresses an opportunity of having a full-service

1.5 Financial Summary

1.6 Funding Required

Proposed repayment 5-year facility with equal monthly repayments

Utilisation of funds Capital expenditure – Purchase machinery and equipment

Working capital – fund working capital requirements

Collateral None None

Owner’s contribution None None

Security provided against None None

Table 1: Funding requirement

3.2 Number of Years in Existence

3.4 Target Market Description

3.5 Business Location

3.6 Key Business Strengths

3.7 Legal Structure

1 Lawrence Garikai 750503 5371 088 South African Male

2 Maggie Bongwe 770730 0410 084 South African Female

Table: Directors of the company

In general, an automobile repair shop (also known regionally as a garage or a workshop) is an

 The auto parts stores or motor-factors that also maintain service operations.

4.2. Industry Developments (growing/declining/changing/static)

Figure 2 Motor Trade Statistics in South Africa

4.2.2 Income contribution of the sector

Figure 3 Types of Motor Trade and related costs in South Africa

4.3 City of Mbombela - Nelspruit

4.3.1 Economic Activity

4.3.2 Population Size

4.3.3 Employment profile

4.4 New Entrants and Competition

4.5 Barriers to entry and Considerations

Access to distribution channels

Cost disadvantages independent of scale:

● Economic growth of SMME businesses ● Compliance requirements are sometimes

Table 3: SWOT analysis

Additional services will include:

5.2 Competitive Advantage

5.3 Pricing Structure

6.2 Marketing Strategy

6.2.2 Promotion, advertising and selling

(a) Word of mouth

(c) Business cards

(e) Radio advertisements

(f) Tenders and requests for quotations

6.3 Market Segmentation

It is believed that the target market mix will be as follows:

Target Market Mix: LAWRENCE & Partners

20% Taxi and bus companies

Figure 5 Target Market Mix of LAWRENCE & Partners

With respect to geographical market segmentation, the following is anticipated:

LAWRENCE & Partners: Geographical

Figure 6 Geographical Market Segmentation of LAWRENCE & Partners