Auto Accessories and Detailing

BUSINESS PLAN

J.E.M. VENTURES, INC.

342 Eastwind
Newport, MI 48299

The purpose of this business plan is to secure funding for opening an automobile accessories franchise. The franchise will offer a wide range of products and services for the care and protection of automobiles and for the convenience of their owners. The franchiser provides full training and support to franchisees in order to ensure a successful business venture.

• executive summary
• initial costs
• the principals
• management plan
• marketing plan
• history
• the product
• financials
• supporting information

EXECUTIVE SUMMARY

J.E.M. Ventures, Inc., is seeking a loan and investment of $50,000,00 to be used toward the purchase of an Auto Extras franchise. This would include the franchise fee, inventory, equipment, and working capital. This money, in addition to the $30,000 to be invested by J.E.M. Ventures, will be sufficient financing through the growing phase so that the business can operate as an ongoing profitable enterprise.

The goal of an Auto Extras franchise is to take advantage of the concept that almost everyone has a vehicle and most people like to keep their vehicles clean and neat. Auto Extras is among the leading auto accessory and detailing franchisers in two states, with a very strong track record of supporting franchisees.

INITIAL COSTS

INITIAL COSTS

THE PRINCIPALS

Ely Masters is presently employed as a warehouse manager for a large produce wholesaler in Newport. He oversees the shipping and receiving department, as well as doing the computerized inventory and billing for all production of the company.

Ely has also attended classes at Newport Business College. Course studies include Business Communications, Small Business Management, and Marketing.

Jeff Masters is presently employed at Cel-Phone, where he has been the Senior Maintenance Technician for the past three years. Jeff has attended Newport Institute of Technology and is certified in the field of H.V.A.C.

Both Ely's and Jeff's work ethic and past experience in the managing of personnel, scheduling, and budgeting will prove beneficial to this endeavor.

MANAGEMENT PLAN

In order to manage the business as an owner-operator, Ely Masters is going to resign from his position with Homefresh Foods. He will attend the 15-day training class held by Auto Extras before the opening of the store.

Jeff Masters will be an owner-operator also, but will only work at the store on a part-time basis. He will keep his employment at Cel-Phone in order to support his family and also to assist Ely with his personal financial needs.

One full-time employee will be hired prior to the opening of the store so that said employee may also attend the training class. Additional employees will be added as needed.

MARKETING PLAN

The location of the store and its visibility to the general public is a very important consideration in planning a marketing strategy. Therefore, site selection must be apriority. Additionally, traffic flow and traffic mix is also an important consideration in developing a plan.

Auto Extras franchisees share an established name and an aggressive advertising plan that includes radio and television advertisement, as well as advertising at many major sporting events. Ads are also placed in a number of major and community newspapers.

Franchisees also take advantage of the use of window and building signs. Many also send out direct mailings that include self-promotional materials to households in the community.

HISTORY

Auto Extras is in the business of automobile aftermarket, accessories, electronics, and glass replacement.

Auto Extras started in 1974 with 6 stores; currently, there are 33 franchises in Michigan and 2 franchises in Ohio. The company is projecting a total of 60 stores by Fall, 1996.

Auto Extras is a franchise system designed to put entrepreneurs in business with a moderate amount of up-front capital.

Franchisees have been successful in starting with basics and expanding as their sales and knowledge of their particular markets have increased. This reduced overhead has translated into a shorter, more direct route to profit.

The franchiser has also found it helpful to provide the following types of assistance:

• Site location and store layout assistance;
• fifteen days of training before store opening, and one or more weeks of training after store opening;
• ongoing technical support;
• marketing assistance;
• advertising support;
• equipment and inventory vendors.

THE PRODUCT

Auto Extras presents a diversified and well-balanced product mix to effectively respond to automotive customers' "wants and needs." Five products and services are the backbone of the business:

Glass Replacement: Auto glass is a product that customers always need, from a replacement windshield to a quick chip repair.

Security Systems: In today's world, car prices average around $20,000.00, and a car is stolen approximately every 28 seconds. Therefore, an auto security system is a necessary and in-demand product.

Cellular Phones: With just over 5% subscriber penetration, the cellular market is expected to triple by the end of the 1990s. Also, with phones and cellular service becoming more affordable, these are no longer only for the upscale customer.

Detailing: Auto Extras offers interior and exterior cleaning and protection products. These products and services are aimed at increasing a vehicle's value and protecting the vehicle's finish.

Accessories: Auto Extras offers a number of auto accessories, from running boards, tonneau covers, and sunroofs to a wide range of electronics, including remote car starters, car stereo systems, and personal pagers.

FINANCIALS

Personal Financials

Sample Operations Budgets

SUPPORTING INFORMATION

Technical & Financial Training Schedule