famous honda business

7/27/2019 Famous Honda Business

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Famous Honda Business Plan

FAMOUS HONDA BUSINESS

PROPOSAL

Presented by

Famous Honda Directors


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1.0 Executive Summary

FAMOUS HONDA is a start-up organization that offers a complete domestic and foreign care repair service for all Honda motor vehicles as well

as a full-featured Honda retail parts store. FAMOUS HONDA will serve the Harare market starting with the best convenient location. FAMOUS

HONDA will grow into a business with outstanding sales by year three.

The Concept

The auto repair market has a lot of competition; however, almost all only offer service. FAMOUS HONDA will differentiate themselves by not

only offering a hassle-free Honda repair service, but a fully stocked Honda parts store. Not only will this serve a wide range of customers for

both service and parts, but the parts department will support the service department by allowing the service department to turnaround jobs far

faster than the competition with generally all of the needed parts in stock and on location.

FAMOUS HONDA will also differentiate itself by having 2 bays at the location. This offers incredible value to customers who need their cars

fixed right away. Waits for service and parts are ideas not entertained by FAMOUS HONDA. Lastly, FAMOUS HONDA offers unlimited shuttle

service for repair customers making the entire service experience as painless and convenient as possible.

FAMOUS HONDA will attract and maintain a loyal customer base through their customer-oriented focus on business. All employees are trained

and held responsible for providing superior service, developing a long lasting trust bond with customers. This is very important, especially in the

auto repair industry where trust and honesty are not the image of repair facilities.

2.0 Business Description and Vision

2.1 Mission

Famous Honda aims to offer high-quality Honda auto repair services and a full range of Honda parts focusing on personalized services to itscustomers by offering convenience and rapid service which is technologically savvy with computerized monitoring of all parts inventory, to

ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover.

2.2 Company Vision

We will be the leading AutoRepair Services Company for Honda vehicles, admired for our competencies, people by any measure in Zimbabwe.

To be accessible in all major cities in Zimbabwe.


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2.3 Business Goals and Objectives

1. Expedient and convenient auto repair services.

2. Growing and maintaining a referral network of local towing service companies.

3. A wide range of auto parts inventory that is (nearly) never out of stock.

4. Rapid order and delivery of major auto parts items.

2.4 Brief History of the Business

State hw atha businesses are functioning,and detail th gap we found in the mkt.

2.5 Company Principles

Safety, Integrity, Trust, Honesty, Sustainability and Respect

2.6 Values

Passion for excellence, pushing beyond boundaries and flourishing through diversity.

3.0 Definition of the Market

Industry Description

3.1 Describe the Critical Needs of the Market


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The economic growth of the last several years has resulted in increased disposable income. Many people have chosen to spend part of their

increased income on their automobiles. As a result, the need for reliable and convenient auto services has substantial ly risen as well. FAMOUS

HONDA will position itself to capitalize on the growing need of the middle and upper class market for quality auto service in Harare. The

company will be privately owned by two co-owners, with most of the additional funding coming from loan financing.

3.2 Target Market

Individuals with Honda cars.

3.3 Profile of Targeted Clients

3.4 Market Share Overview


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Chart: Market Analysis (Pie)

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5Potential

Customers

Growth

Local Residents 15% 700 1,000 1,500 2,000 2,500

Freeway Traffic 10% 500 700 1,000 1, 200 1,500

Other 0% 0 0 0 0 0

Total 13.64% 1,200 1,700 2,500 3,200 4,00

CompetitorsFamous Honda

Market Analysis (Pie)


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4.0 Products and Services

4.1 Products and Services in Detail

4.2 Competitiveness of Products and Services

5.0 Organisation and Management

Organisation Chart

5.1 Legal structure

5.2 Bio-Description of Key Managers

6.0 Marketing and Sales Strategy

Market Identification

6.1 Channel of Distribution

6.2 Sales Strategy

For 4ps

7.0 Financial Management

Start Up Costs

7.1Projected Balance Sheet

7.2 Income Statement

7.3 Cashflow Statement


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8.0 Company name, address, city

The Management Team

FAMOUS HONDA has a strong management team that will allow them to execute on this exciting idea. FAMOUS HONDA has two partners

Benson Nyahokwe & Tendai Muzenda. Benson has a background of sales; an undergraduate of a bachelors degree in Marketing has worked

with an Auto repair company on his vacations. He will be overseeing the sales and marketing for the organization and the accounting andadministration and will cover as the Director. Tendai is also a product of the auto industry, specifically the auto repair and parts sales industry.

Tendai spent two years at Honda Twenty Ten the largest Honda independent auto repair facility and 4 years with Honda Mart Trading. At both

organizations Tendai had multiple roles within the organization allowing him to bring to FAMOUS HONDA a broad skill set. The incredible

breadth of skill sets and knowledge that the management team possesses will allow FAMOUS HONDA to accomplish their lofty sales goals.

FAMOUS HONDA is an exciting business opportunity that addresses the unmet need of having a full Honda service auto repair facility that also

has a complete retail parts center. These distinct but complimentary services will have benchmarked customer service, something that the

industry is not known for having. FAMOUS HONDA will be led by a seasoned management team of two, all of whom have extensive industry

experience.

2.0 Company Summary

Famous Honda Auto Repair is a new start-up incorporated business managed by two partners. Both of the partners represent

sales/management, and one focuses on the operations section of the business.


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2.1 Company Ownership

FAMOUS HONDA is incorporated in the companies act. It is privately owned by Benson Nyahokwe & Tendai Muzenda. To attract additional

financing, the owners may consider taking FAMOUS HONDA public several years down the road.

2.2 Start-up Summary

Each of the co-owners will invest an equal amount in terms of equipment. The remainder of the required financing will come from a loan from

the Youth fund loan. In order to be fully equipped to start operating Famous Honda will only require a 150-pce Tool set however with the

increase in number of jobs and mechanics hired there will be need to purchase more tools. Famous Honda will also need to reno vate the

location they will lease for the commissioning of the Auto repair shop; it will also require buying a computer, printer and phoning for the use by

administration and ease of communication with clients

Table: Start-up

Start-up

Requirements

Start-up Expenses

Legal $300

Rent $2,000

Total Start-up Expenses $2,300

Start-up Assets

Cash Required (Computer, printer, 1 pce tool box) $1,000Start-up Inventory (renovations and inventory) $1,000

Other Current Assets $500

Total Assets $2,500

Total Requirements $4,800


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Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $2,300

Start-up Assets to Fund $2,500

Total Funding Required $4,800

Assets

Non-cash Assets from Start-up $500

Cash Requirements from Start-up $4,800

Additional Cash Raised $0

Cash Balance on Starting Date $200

Total Assets $4,800

Liabilities and Capital

Liabilities

Long-term Liabilities (Loan) $5,000

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $5,000

Capital

Planned Investment

Nyahokwe Benson $0

Muzenda Tendai $0

Additional Investment Requirement $5,000

Total Planned Investment $5,000

Loss at Start-up (Start-up Expenses) ($4,800)

Total Capital $5,000


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Total Funding $5,000

3.0 Products and Services

FAMOUS HONDA has the core competencies amongst its large crew to work on all Honda makes and models vehicles. With two service bays at

the location, and all employees focused on superior customer service, quick turnaround is always the standard at FAMOUS HONDA. FAMOUS

HONDA strives to be accurate and honest with customers in terms of quoting cost estimates and repair completion time estimates. FAMOUS

HONDA employees 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.

FAMOUS HONDA utilizes the highest 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 have been established with the most reputable vendors in terms

of shipping time of major parts.

4.0 Market Analysis Summary

FAMOUS HONDA 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. FAMOUS HONDA has established relationships with a few major local tow truck companies for

referral business of stalled vehicles requiring a tow to an auto repair facility.

The company estimates that about 80% of revenues will come from the established local clientele and 20% from the local and freeway traffic

tow-ins. The table below further estimates the total market potential of type of services rendered by FAMOUS HONDA in Harare.

4.1 Company Location & Justification

Famous Honda seeks to locate in Harare (Graniteside, Southerton, City center, Msasa or Adbennie) these locations highly suite the business.

Consideration have been made on other cities and rural locations however the number of traffic flow in other locations have led to the decision to

have the first branch in Harare.


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4.2 Target Market Segment Strategy

FAMOUS HONDA will focus on its target market, the middle and upper class market, and establish a reputable image from that target market's

perspective, by offering convenience, expedient Honda repair services, customer service excellence, and by working with local towing

companies.

4.2.1 Market Needs

Between having a high level of Honda 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. Convenience is a must for most middle and upper class consumers and travelers.

4.3 Service Business Analysis

The market of auto repair services and parts sales is very fragmented. The majority of auto shops usually offer either repair services or parts

inventory. The niche where FAMOUS HONDA positions itself represents a Honda center that offer both Honda services and parts at one

convenient location. Middle and upper class customers to whom FAMOUS HONDA will cater its services are less price sensitive as they value

the convenience of quick turnaround and high quality of services.

4.3.1 Competition and Buying Patterns

FAMOUS HONDA faces over 20 auto parts competitors in Harare. Only one of these competitors offer both auto repair services and auto parts

inventories i.e. Honda Twenty Ten. The remainder is small privately-owned establishments which have their shelves full of fake Chinese parts.

FAMOUS HONDA will compete well by focusing on convenience and offering a high level of customer service and originality of their parts.

Additionally, its honest reputation will be a major factor in repeat business and building a large base of regular, loyal customers.

Large competitors' stores typically carry the same basic product line, with variations based on the number and type of Honda cars registered in

the different markets. Famous Honda is going to operate the service division for the first three months before opening up its auto parts store.

Automotive product lines usually include:

Tires.

Batteries.

Honda parts, including:

Suspension parts.


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Ignition parts.

Engines and engine parts.

Service 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.

Hand tools, including sockets, wrenches, ratchets, paint and body tools, jacks and lift equipment, automotive specialty tools and test

gauges.

Many competitors have adopted point-of-sale systems in their stores, which gather sales and gross profit data by a stock-keeping unit from

each store on a daily basis. This information is then used to help formulate pricing, marketing and merchandising strategies. Electronic parts

catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts de livery.

5.0 Strategy and Implementation Summary

FAMOUS HONDA will succeed by offering its customers high-quality, rapid and convenient Honda repair service. Additionally, FAMOUS HONDA

will succeed by ensuring a full range of auto parts inventory and rapid shipping capability of major auto parts.

5.1 Competitive Edge

FAMOUS HONDA's competitive edge is the heavy focus on customer convenience by offering unlimited shuttle service, rapid turnaround on

Honda repair jobs, and a referral network of a few local major tow truck companies.

5.2 Sales Strategy

FAMOUS HONDA will focus its sales strategy on effectively reaching the target customer segment of upper and middle class customers. For this

purposes, the company will employ direct sales staff. At the same time, the company will further strengthen its relationships with the tow truck

companies to capture auto repair needs of the local and highway traffic.


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6.0 Management Summary

Benson has experience in sales, marketing, and management within the auto repair and auto parts industries. Tendai has four y ears of

experience in Honda auto repair and auto parts industries.

7.0 Financial Plan

FAMOUS HONDA expects to raise much of its own capital, and to borrow a loan from the Youth Fund policy. This provides the bulk of the

current financing required.

7.1 Break-even Analysis

FAMOUS HONDA's break-even analysis is based on the averages of the first-year figures for total sales by units, and for operating expenses.

These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of

real risk.

Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 6,969

Monthly Revenue Break-even $724,208

Assumptions:

Average Per-Unit Revenue $103.92

Average Per-Unit Variable Cost $42.81

Estimated Monthly Fixed Cost $425,871


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Table: Sales Forecast

Sales

Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month

10

Month

11

Month

12Unit Sales

Honda

Repair Jobs

10 10 10 15 12 20 20 20 20 20 25 25

Auto Parts 100 100 100 100 100 150 150 150 150 150 200 200

Other 0 0 0 0 0 0 0 0 0 0 0 0

Total Unit

Sales

610 610 610 615 615 820 820 820 820 820 825 825

Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month

10

Month

11

Month

12Auto Repair

Jobs

$300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Auto Parts $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00

Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10.00 $0.00 $0.00 $0.00 $0.00 $0.00

Sales

Auto Repair

Jobs

$3000 $3000 $3000 $3000 $3600 $6000 $6000 $6,000 $6,000 $6,000 $7,500 $7,500


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Auto Parts $5,000 $5,000 $5,000 $5,000 $5,000 $7,500 $7,500 $7,500 $7,500 $7,500 $10,000 $10,000

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales $8,000 $8,000 $8,000 $8,000 $8,600 $13,500 $13,500 $13,500 $13,500 $13,500 $17,500 $17,500

Direct Unit

Costs

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month

10

Month

11

Month

12

Auto RepairJobs

$70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00

Auto Parts $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Direct Cost

of Sales

Auto Repair

Jobs

$40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00

Auto Parts $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Direct Cost

of Sales

$140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00 $140.00


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6.1 Personnel Plan

As the personnel plan shows, FAMOUS HONDA expects to make gradual investments in staffing as several new facilities are opened over the

next five years.

Table: Personnel

Personnel

Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month

9

Month

10

Month

11

Month

12

Mechanics $500 $500 $500 $500 $750 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Total People 2 2 2 2 3 4 4 4 4 4 4 4

Total Payroll $500 $500 $500 $500 $750 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

7.2 Projected Profit and Loss

As the profit and loss table shows, FAMOUS HONDA expects to continue its steady growth in profitability over the next three years of

operations.

Table: Profit and Loss overleaf

Pro Forma Profit and Loss

Month

1

Month 2 Month 3 Month 4 Month

5

Month

6

Month 7 Month 8 Month

9

Month

10

Month

11

Month

12


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Sales $8,000 $8,000 $8,000 $8,000 $8,000 $13,500 $13,500 $13,500 $13,500 $13,500 $17,500 $17,500

Direct Cost of

Sales

$140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140 $140

Gross Margin $7,860 $7,860 $7,860 $7,860 $7,860 $13,360 $13,360 $13,360 $13,360 $13,360 $17,360 $17,360

ExpensesPayroll $500 $500 $500 $500 $750 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Sales and

Marketing and

Other

Expenses

$500 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200

Utilities $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Total

Operating

Expenses

$3,100 $2,800 $2,800 $2,800 $3,050 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300

Net Profit $4,760 $5060 $5060 $5060 $4,810 $10,060 $10,060 $10,060 $10,060 $10,060 $14,060 $14,060

7.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet FAMOUS HONDA's needs as the business generates

cash flow sufficient to support operations.

The short-term loan is expected to be paid out within one year, while an SBA loan will be repaid in three years.


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Pro Forma

Cash Flow

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month 12

Cash

Received

Loan $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash from

Operations

Cash Sales $8,000 $8,000 $8,000 $8,000 $8,000 $13,500 $13,500 $13,500 $13,500 $13,500 $17,500 $17,500

Subtotal

Cash fromOperations

$8,000 $8,000 $8,000 $8,000 $8,000 $13,500 $13,500 $13,500 $13,500 $13,500 $17,500 $17,500

Additional

Cash

Received

New

Investment

Received

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Cash

Received

$13,000 $8,000 $8,000 $8,000 $8,000 $13,500 $13,500 $13,500 $13,500 $13,500 $17,500 $17,500

Expenditure

s

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month 12

Expenditure

s from

Operations

Other $200 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

BillPayments

$3,100 $2,800 $2,800 $2,800 $3,050 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300 $3,300

Subtotal

Spent on

$3,300 $2,900 $2,900 $2,900 $3,150 $3,400 $3,400 $3,400 $3,400 $3,400 $3,400 $3,400


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Operations

Additional

Cash Spent

Sales Tax,

VAT,

HST/GSTPaid Out

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other

Liabilities

Principal

Repayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Loan

Principal

Repayment

$00 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415 $415

Purchase

Other

Current

Assets

$1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase

Long-term

Assets

$1,500 $0 $00 $00 $00 $1,000 $00 $00 $00 $00 $00 $00

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

Cash Spent

$5,800 $3,315 $3,315 $3,315 $3,565 $4,815 $3,565 $3,565 $3,565 $3,565 $3,565 $3,565

Cash

Balance

$7,200 $4,685 $4,685 $4,685 $4,435 $8,685 $9,935 $9,565 $9,565 $9,565 $13,935 $13,935


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Loan Application

Famous Honda is seeking a loan funding of Five Thousand Dollars US $ 5000 to start its operations. The loan will be used to pay

commissioning expenses, advertising expenses and first month rentals for its premises.

Contact Details

Famous Honda Director

Nyahokwe BensonRegina Coeli Mission HospitalBag 4Juliasdale+263774 119 692 or +263733 401 390

famous honda business

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