Business Plan

Southeast Auto Care

Your Address Will Appear Here Tel: 555-555-1212

AGREEMENT O CON !"ENT!A#!TY

I agree that reading of this Business Plan is strictly limited to me as authorized by Name Removed (the Owner and !outheast "uto #are (the #om$any % I agree that I shall not divulge or re$roduce the content of this Business Plan without the written consent of the #om$any% I understand that any information $rovided in this Business Plan is in all res$ects confidential in nature& other than information which is in the $ublic domain through other means% I agree not to disclose any information without the e'$ress written $ermission of the Owner and !outheast "uto #are ($on re)uest& I will return this document to the Owner and !outheast "uto #are% *his Business Plan includes forward+loo,ing statements and $ro-ections% "ll such statements and $ro-ections within this Business Plan& other than statements of historical fact& regarding !outheast "uto #are or its strategies& $lans& ob-ectives and e'$ectations& are all forward+loo,ing statements% "lthough !outheast "uto #are believes that the $ro-ections reflected in this $lan are reasonable at this time& it can give no assurance that these $ro-ections will $rove to have been correct% This $usi%ess &la% is %ot a 'i%a%(i%) o''er* A 'i%a%(i%) o''er is o%l+ ,alid -ith a% appro,ed &ri,ate &la(e.e%t Me.ora%du. %

................... Signature /////////////////// Name (ty$ed or $rinted

................... Date

TA$#E O CONTENTS
E0EC1T!2E S1MMARY
*he Business #once$t *he O$$ortunity 1ear O$erations of the Business Product and !ervice Offerings

5
/ 0 2 34 35

The Co.pa%+
6ission of the #om$any #om$any !tructure
3% 7egal !tatus 4% Physical 7ocation 5% Intellectual Pro$erty

13
35 35
35 35 35

#om$any 8istory

39

Gro-th Strate)+
Business Ob-ectives *argeted #ustomers :ey Initiatives #om$etition and #om$etitive "dvantages !ize of the 6ar,et 6ar,eting "ctivities !ales !trategy

14
39 3/ 3/ 3/ 30 3; 4<

Corporate Ma%a)e.e%t
6anagement

25
4<

6e+ i%a%(ial &ro7e(tio%s

=inancial Needs and (se of =unds "ssum$tions
Revenues #O>! ?'$enses #ash =low

25
4< 43
43 43 44 44

Pro-ected Profit and 7oss Pro-ected Balance !heets Pro-ected #ash =low Brea, ?ven #alculation !ummary of 7ender Return and Ris,

44 49 4/ 40 40

Re'ere%(es Appe%di(es
34 6onth Pro-ected P @ 7 Remove !econd 7oan Interest from all three charts 34 6onth Pro-ected Balance !heet 34 6onth Pro-ected #ash =low / 1ear Pro-ected P @ 7 / 1ear Pro-ected Balance !heet /+ 1ear Balance !heet

28 29
4A 4; 4; 5< 53 54 54

/ 1ear Pro-ected #ash =low

55

Southeast Auto Care

E0EC1T!2E S1MMARY
The $usi%ess Co%(ept
!outheast "uto #are (!outheast !outheast "uto #are or the #om$any is an auto re$air sho$ $roviding old+fashioned& reliable service% *he #om$any will be built u$on a solid foundation of honesty& reliability and )uality% It is located in 8untsville& "labama% *he =ounder& Name Removed& has built a re$utation in the area as an honest and trustworthy mechanicB he ta,es time to e'$lain what is wrong and shows the customer what needs to be fi'ed as well as which $arts are wearing and may fail% *hirty+five years in the auto motive business& he has s$ent 3/ years building and racing cars& 34 years of fleet maintenance& including fabrication and redesign% *he #om$any will $rovideC Routine 6aintenance *em$erature #ontrol Bra,es and ?'haust ?ngine and *ransmission

It will service all ma,es of cars& both domestic and foreign% E:(elle%t Mar;et Opportu%it+ !outheast "uto #are will ta,e advantage of its =ounderDs e'isting re$utation to attract customers% *he =ounder started out hel$ing with the car ministry at his church% *hrough this ministry he has identified the need for an honest and trustworthy mechanic sho$% Eillowbroo, is one of the largest churches in the area and single moms and widows from the church bring their cars to Farrin after wor, at his home% Eord of mouth has hel$ed him build a clientele base too large to handle at his home% 6any $eo$le are traveling over 4< miles to bring their vehicles to Farrin to re$air%
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Southeast Auto Care

&ro'ita<le Gro-th !outheast "uto #are e'$ects to gain a $rofitable mar,et share within a very short $eriod of time% Feterminations have been made for the size of the mar,et& amounts of budgeted advertising and $romotional dollars& the number and ,inds of distribution channels and the com$etitive landsca$e% Pro-ections call for the #om$any to generate revenues of G000&<<< in its first twelve months% !outheast "uto #are will achieve strong growth over the ne't several years& reaching G3%5 million in revenues and more than G530&<<< of net income by the fifth year%

The Opportu%it+
1* S* Auto !%dustr+ "ccording to R% 7% Pol,& The average length of ownership of both new and used vehicles has increased from 37.2 months in 2002 to 46.3 months in 200 ! a 24" increase. "s our economy continues to deal with current issues& drivers are e'$ected to ,ee$ vehicle longer which is good news for auto re$air businesses% =ewer new cars and truc,s are being $urchased% " recent Pol, study showed 64" of consumers were #ver$ or e%tremel$ li&el$' to &eep their current vehicle longer than the$ normall$ would due to current economic conditions. (dditionall$! )" of the 7)3 interviewed vehicle owners in this same stud$ also said the$ planned to ta&e better care of their vehicle to &eep it running longer! which could translate to additional aftermar&et revenue % 4 A'ter.ar;et Auto.oti,e Tre%ds Eithin the aftermar,et automobile segment there are several categories& includingC Routine maintenance *em$erature control Bra,es and e'haust ?ngine and transmission

*he current (% !% automotive aftermar,et is valued at over G39< million% Ehere in the $ast the mar,et was once dominated by small& often family+owned inde$endent service stations& there are four business ty$es in the (% !% automotive re$air industry todayC

&a)e =

Southeast Auto Care

Inde$endent garages =ull service gasoline stations "utomotive dealershi$s #hain automotive centers

"ccording to the "utomobile !ervice "ssociation ("!" & this mar,et sector is high fragmented& em$loying nearly 55;&32< $eo$le and repairing more than 23) million motor vehicles* " of independent mechanical repair businesses are famil$+owned., Research shows there are an estimated A3&/55 (% !% inde$endent general mechanical re$air businesses in o$eration% *he "!" $ro-ects total sales for general mechanical repair facilities in 200- was .36 billion* .4/ billion if specialt$ repair facilities! oil change facilities and transmission shops are included. 0t is important to note that these figures do not include the .30 billion earned b$ appro%imatel$ 2)!640 auto dealerships with service facilities., "mericans love their automobilesH !tatistics reflect the median age of vehicles in the (% !% is increasing which will encourage the growth of auto re$air sho$s% "ccording to research& the median car age from 3;;< to 4<</ increased from 0%/ years to ;%< years% " recent =orbes article stated& in 4<<9& 35/&<22&<<< cars were registered in the (nited !tates% In a 4<</ survey by "!"& 23I of mechanical businesses $olled said they felt $ositive about future growth and e'$ected sales to increase% Integra Information made the following forecast on growth ratesC 3 General Auto Repair Shops Industry Revenues Year
4<</ 4<<0 4<<2 4<<A 4<<;

ore(asted Gro-th Rate

4%9<I 5%;<I 5%5<I 5%A<I 5%;<I

A,)* 3*4=> !ourceC Integra Information

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Southeast Auto Care

*he automotive aftermar,et services sector is affected by many contributing factors& such as median vehicle age& driven mileage& and the total number of vehicles on the road% *he following charts by R% 7% Pol,& automotive intelligence and mar,eting solutions firm& shows com$ound annual growth rate in this mar,et and age of vehicles from 3;;; to 4<35C 4

Source: IMR (AutomotiveResearch.com) and R. L. Polk & Co.

In the category of maintenance& vehicles ages 0+to+3< years are 3%5 times more li,ely to need maintenance than their younger counter$arts of less than 0 years of age or with older vehicles over 3< years old% Interestingly& vehicles in this category are $redicted to increase from 4<<A to 4<3< by 3%4I (com$ound annual basis % Pol, states& During the same time period! vehicles in the ))1 age group are pro2ected to grow 4.6"., 2

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Southeast Auto Care

Routi%e Mai%te%a%(e R% 7% Pol, re$orts& The routine maintenance categor$ encompasses oil changes! tune ups! tire replacements! wiper blade replacements and other smaller repairs that are necessar$ to &eep a vehicle running smoothl$. 0n 2007! there were nearl$ 3 billion 2obs and parts attributed to routine maintenance! 4" of the total number in the aftermar&et sector., 2 $ra;es a%d E:haust Mai%te%a%(e In 4<<2 service related to the bra,es and e'haust sector re$orted an annual growth rate of /%;I& from 3;;; to 4<<2& ma,ing this category the highest com$ound annual growth rate& mainly due to an increase in light vehicle o$eration and miles driven% =rom 4<<A to 4<3<& due to aging vehicle $o$ulation& growth rate in this mar,et sector is e'$ected to dro$ to 3%2I& as vehicle $o$ulation ages% R% 7% Pol, states& 3rowth in bra&es and e%haust parts and service will come primaril$ from increases in the 64)0 and ))1 vehicle age groups! which are e%pected to grow at ).2" and 4.6"! respectivel$! between 200 and 20)0. 5eplacement events for these two groups of older vehicles are twice as prevalent as for vehicles under 6 $ears old% 4 E%)i%e a%d Tra%s.issio% Repair 6ore and more $eo$le are ,ee$ing their cars and truc,s longer% =rom 4<<A to 4<3<& the $ro-ected increased rate of older vehicles (33J years is $redicted to grow by 9%0I% *hese vehicles are 9 times more li,ely to need engine and transmission re$air than vehicles less than 0 years old% *he charts below reflect these different categoriesC 4

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Southeast Auto Care

$rea;do-% o' Routi%e Mai%te%a%(e Cate)or+ <+ Sales Cha%%el

$rea;do-% o' Te.perature Co%trol Cate)or+ <+ Sales Cha%%el

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Southeast Auto Care

$rea;do-% o' $ra;es a%d E:haust Cate)or+ <+ Sales Cha%%el

$rea;do-% o' E%)i%e a%d Tra%s.issio% Cate)or+ <+ Sales Cha%%el

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Southeast Auto Care

Repair Shop "e.a%d Gro-th In a new survey by =rost @ !ullivan& mar,et analysis firm& vehicle owners are saying they $lan on maintaining and re$airing their cars and truc,s longer in the wa&e of financial uncertainties! 2ob loss fears! and uncertain fuel prices triggered b$ the economic slump., #onse)uently& there is a higher demand for maintenance+related -obs% 5 &arts Mar;et In the =rost @ !ullivan re$ort& it is re$orted that in 4<<2 there were nearly 493 million light vehicles in the (nited !tatesB the re$air industry re$resented G2< billion in $arts sold that su$$ort this mar,et% *he re$ort said& 5epair shop owners are the front line of that industr$ and the first place where vehicle owner behavioral changes become evident., *here is a constant& evolving vehicle $o$ulation that re$air sho$ owners must consider when monitoring their business& original e)ui$ment (O? $arts versus $rivate label brands% Irres$ective of the $arts used& they must reflect )uality& function& and reasonable cost that allow $rofitability% Program 6anager at =rost @ !ullivan >lobal& 6ary+Beth :ellenberger said& 3aining access to 6ualit$ aftermar&et import brand parts is e%tremel$ important as independents position themselves as a value alternative to dealers. 7inning the 2ob at a price that supports each enterprise8s financial structure is as crucial to the survival of the industr$ as smart management to prevent cost cutting that undermines repair 6ualit$ and industr$ profitabilit$ % 5 *here is a large o$$ortunity to build a dominant and res$ected business in this mar,et s$ace%

Operatio%s o' the $usi%ess

!outheast "uto #are will target $ros$ective clients within the 8untsville& 6adison& 8arvest and *oney areas% *he #om$any will generate revenues from its auto re$air services& $arts and labor% *he #om$any will offer convenient hours& o$ening 6+= 2C<< "6 to 0C<< P6 and on !aturdays from AC<< "6 to 34C<< P6% *his allows busy individuals to select a convenient time% 6ar,eting efforts of the #om$any will focus on several activities% *hese include $rint advertising& radio& signage& referrals& and its web site%

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Southeast Auto Care &rodu(t a%d Ser,i(e O''eri%)s

!outheast "uto #are will $rovide a wide range of services% *hese includeC Routine 6aintenance *em$erature #ontrol Bra,es and ?'haust ?ngine and *ransmission

THE COM&ANY
Missio% o' the Co.pa%+
!outheast "uto #are will become a leading auto re$air center in the 8untsville area% Ee will continually $rovide )uality re$air in a timely manor at an affordable $rice% Our $roducts services will be sought after for their reliability and e'cellence% Ee will treat each customer with res$ect and we will be ,nown for our outstanding customer service%

Co.pa%+ Stru(ture
3% 7egal !tatus !outheast "uto #are is a !ole Pro$rietorshi$ organized in the state of "labama in 4<3<% *he #om$any is owned by Name Removed% 4% Physical 7ocation *he #om$any will lease suitable business s$ace to su$$ort its o$erations% *his s$ace will include a rece$tion area& office& and wor,Kre$air areas% It will $rovide easy access to customersKem$loyees with am$le free $ar,ing% *he site will be in an attractive area of town% #ustomers will be able to access the site easily% " $ros$ect site has been located and is available% 5% Intellectual Pro$erty !outheast "uto #are intends on building a website at www%southeastautocare%com to mar,et its services% *here is

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Southeast Auto Care

no other $ro$rietary intellectual $ro$erty owned by the #om$any%

Co.pa%+ Histor+
!outheast "uto #are is a start+u$ new venture% 8owever& the founder has $erformed e'tensive research to determine the mar,et viability and o$erational challenges of this ty$e of business% Luestions that were addressed includeC Ehat is the mar,et o$$ortunity (Is there a need for the business M Ehat ty$e of com$etition is thereM #an the targeted mar,et su$$ort the businessM Ehat ty$es of customers will the business attractM "re there suitable facilities in the areaM 8ow much funding is neededM 8ow much monthly revenue is needed to achieve brea, evenM

GROWTH STRATEGY
$usi%ess O<7e(ti,es
*he #om$any is $lanning on strong growth in the ne't twelve months% It $lans on achieving the following ob-ectivesC Obtain new customers 8ire reliable and trained staff >row twelve month revenue in e'cess of G00/&<<< In succeeding years& !outheast "uto #are will continue to grow its business and will achieve these ob-ectivesC >row the annual number of new customers each year Fevelo$ a re$utation that will e'ceed com$etitors in every area

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Southeast Auto Care

"chieve e'cellent customer loyalty by $lacing strong em$hasis in the areas of outstanding service and su$$ort 6aintain an e'$erienced and $rofessionally trained staff "ttain G3%5 million in annual sales in 1ear /

Tar)eted Custo.ers
!outheast "uto #are has identified a clear and substantial target mar,et% *argeted customers will includeC Previous #ustomers =riends and =amily of =ormer #ustomers Eal,+in #ustomers from advertising *he #om$any will target these ty$es of customers within the 8untsville& 6adison& 8arvest and *oney& "labama areas%

6e+ !%itiati,es
!outheast "uto #are has develo$ed the following ,ey initiatives to achieve its growth goalsC 7aunch its mar,eting efforts to reach its target audience ?stablish an aggressive sales $rogram to identify and secure customers Provide the best services at the most com$etitive $ricing Provide a satisfying e'$erience for every customer Eith the $ro$er financing and adherence to this business $lanDs ob-ectives& the #om$any believes it can com$lete these initiatives and achieve success%

Co.petitio% a%d Co.petiti,e Ad,a%ta)es

!outheast "uto #are has realizes that it will com$ete with other local auto re$air com$anies% *he #om$any believes that it can com$ete effectively in this mar,et% !everal factors driving its com$etitive advantage includeC ?'$erienced technician Priority service Best customer service #om$etitive $ricing

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Southeast Auto Care Si@e o' the Mar;et

!outheast "uto #are is focused on obtaining customers in the greater 8untsville and 6adison& "labama area% *his area is large enough to su$$ort the #om$anyDs business ob-ectives% (!ee charts on ne't $ages

1S Ce%sus $ureau E(o%o.i( Ce%sus

Madiso% Cit+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates Household !%(o.e > Households A Households 14B=24 7ess than G3<&<<< 4%AI 9<; G3<&<<< to G39&;;; 4%2I 5;/ G3/&<<< to G49&;;; 0%3I A;4 G4/&<<< to G59&;;; 0%3I A;4 G5/&<<< to G9;&;;; 3<%9I 3&/43 G/<&<<< to G29&;;; 3A%0I 4&24< G2/&<<< to G;;&;;; 3/%5I 4&452 G3<<&<<< to G39;&;;; 43%;I 5&4<5 G3/<&<<< to G3;;&;;; 3<%/I 3&/50 G4<<&<<< or more /%0I A3;

1S Ce%sus $ureau &opulatio% Ce%sus

Madiso% Cit+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates A)e > &opulatio% &opulatio% 39B453 (nder / years 0%4I 4&5A9 / to ; years 2%9I 4&A90 3< to 39 years A%AI 5&5A9 3/ to 3; years A%9I 5&45< 4< to 49 years 0%<I 4&5<2 4/ to 4; years /%9I 4&<20 5< to 59 years 9%/I 3&25< 5/ to 5; years 0%<I 4&5<2 9< to 99 years 3<%/I 9&<5A 9/ to 9; years 3<%9I 5&;;; /< to /9 years 2%5I 4&A<2 // to /; years 0%<I 4&5<2 0< to 09 years /%AI 4&45< 0/ to 0; years 4%;I 3&33/ 2< to 29 years 3%;I 253 2/ to 2; years 3%9I /5A A< to A9 years <%2I 40; A/ years and over <%/I 3;4 &a)e 1=

Southeast Auto Care

1S Ce%sus $ureau E(o%o.i( Ce%sus

Hu%ts,ille Cit+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates Household !%(o.e > Households A Households =?B8?? 7ess than G3<&<<< A%2I 0&<25 G3<&<<< to G39&;;; 0%9I 9&902 G3/&<<< to G49&;;; 34%2I A&A09 G4/&<<< to G59&;;; 33%/I A&<42 G5/&<<< to G9;&;;; 35%AI ;&054 G/<&<<< to G29&;;; 32%3I 33&;50 G2/&<<< to G;;&;;; 3<%<I 0&;A< G3<<&<<< to G39;&;;; 33%9I 2&;/2 G3/<&<<< to G3;;&;;; 9%;I 5&94< G4<<&<<< or more 5%2I 4&/A5

1S Ce%sus $ureau &opulatio% Ce%sus

Hu%ts,ille Cit+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates A)e > &opulatio% &opulatio% 1=9B9=5 (nder / years 0%4I 3<&92< / to ; years 0%4I 3<&92< 3< to 39 years 0%5I 3<&05A 3/ to 3; years 2%4I 34&3/A 4< to 49 years A%9I 39&3A/ 4/ to 4; years 2%3I 33&;A; 5< to 59 years /%0I ;&9/0 5/ to 5; years 0%5I 3<&05A 9< to 99 years 0%AI 33&9A5 9/ to 9; years 2%5I 34&542 /< to /9 years 0%;I 33&0/4 // to /; years 0%5I 3<&05A 0< to 09 years 9%2I 2&;52 0/ to 0; years 9%5I 2&403 2< to 29 years 5%2I 0&49A 2/ to 2; years 5%3I /&45/ &a)e 18 3%;I A< to A9 years 5&4<A A/ years and over 3%AI 5&<9<

Southeast Auto Care

1S Ce%sus $ureau E(o%o.i( Ce%sus

Madiso% Cou%t+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates Household !%(o.e > Households A Households 123B?58 7ess than G3<&<<< 0%2I A&5</ G3<&<<< to G39&;;; 9%;I 0&<29 G3/&<<< to G49&;;; 3<%4I 34&099 G4/&<<< to G59&;;; 3<%0I 35&35; G5/&<<< to G9;&;;; 35%5I 30&9A0 G/<&<<< to G29&;;; 3A%4I 44&/0< G2/&<<< to G;;&;;; 34%4I 3/&345 G3<<&<<< to G39;&;;; 39%AI 3A&590 G3/<&<<< to G3;;&;;; /%0I 0&;94 G4<<&<<< or more 5%/I 9&55A

1S Ce%sus $ureau &opulatio% Ce%sus

Madiso% Cou%t+B Ala<a.a
255=-2559 A.eri(a% Co..u%it+ Sur,e+ 3-Year Esti.ates A)e > &opulatio% &opulatio% 312B=59 (nder / years 0%9I 4<&<3< / to ; years 0%AI 43&403 3< to 39 years 0%AI 43&403 3/ to 3; years 2%9I 45&352 4< to 49 years 2%<I 43&AA0 4/ to 4; years 0%2I 4<&;9A 5< to 59 years /%2I 32&A44 5/ to 5; years 0%2I 4<&;9A 9< to 99 years 2%;I 49&2<< 9/ to 9; years A%5I 4/&;/3 /< to /9 years 2%<I 43&AA0 // to /; years 0%<I 3A&2/; 0< to 09 years /%<I 3/&055 0/ to 0; years 5%;I 34&3;9 2< to 29 years 5%5I 3<&53A 2/ to 2; years 4%9I 2&/<9 A< to A9 years 3%9I 9&522 A/ years and over 3%5I 9&<0/ &a)e 19

Southeast Auto Care

Mar;eti%) A(ti,ities
!outheast "uto #are will im$lement various mar,eting efforts to attract customers includingC Custo.er lo+alt+ pro)ra.s *he #om$any will develo$ strong customer loyalty $rograms% !outheast "uto #are will im$lement and manage $rograms that reward a customer for re$eat business with the #om$any% $uild a%d opti.i@e its -e< site to des(ri<e a%d pro.ote the <usi%ess *he #om$any will build and o$timize its web site to attract $ros$ective customers% *he web site will be attractive and easy to navigate% It will also $rovide testimonials of satisfied customers% &ri%t ad,ertisi%) *he #om$any will ta,e out ads in local $ublications that are matched to its targeted audiences% T2 a%d Radio Ads *he #om$any will $urchase *N ads on local cable channels and radio ads on local stations% Si)%a)e a%d posters !outheast "uto #are will utilize signage and $osters that will be dis$layed at local sites to $romote the #om$any and establish name recognition% Sear(h e%)i%e opti.i@atio% CSEOD

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Southeast Auto Care

*he #om$any will o$timize its web site so that it will in im$rove its yield in search engine results% !outheast "uto #are will continually im$rove its !?O scores by o$timizing the search words and by establishing lin, $rograms whereby the number of sites lin,ing to it increase%

Re'errals !outheast "uto #are will develo$ referral $rograms whereby e'isting customers receive incentives to refer friends or associates as customers%

Sales Strate)+
*he #om$any will sell directly through its retail s$ace%

COR&ORATE MANAGEMENT
Ma%a)e.e%t
ou%der a%d O-%er: Na.e Re.o,ed Name Removed has 5/ years in the "utomotive Business% 8e has s$ent 3/ years building and racing cars% Farrin also has 34 years of fleet maintenance including fabrication and redesign%

6EY !NANC!A# &ROEECT!ONS

i%a%(ial Needs a%d 1se o' u%ds
*he #om$any is see,ing a G/<&<<< loan to e'ecute this business $lan% 6anagement of the #om$any will contribute G3<&<<< of their own funds in e)uity% "dditionally& they will also contribute G3/<&<<< worth of tools and e)ui$ment includingC ""6#O Bra,e lathe 6iller 6ig Eelder Plasma #utter

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Southeast Auto Care

Robinair "K# Recovery 6achine Branic, !trut #om$ressor !na$ On !olus Fiagnostic #om$uter Ingersol Rand #om$ressor

!outheast "uto #are intends to use these funds $rimarily for start+u$ e'$enses such as e)ui$ment& furniture and leasehold im$rovements% Remaining funds will be used for general wor,ing ca$ital needs%

Sour(es a%d 1ses o' &ro(eeds

Sour(es =irst 7oan ?)uity Total Sour(es 1ses ?)ui$ment =urnitureKe)ui$ment 7easehold Im$rovements 7egal !tartu$ Eor,ing #a$ital Total 1ses G3<&<<< G/<< G4&<<< G4<< G92&5<< F=5B555 G/<&<<< G3<&<<< F=5B555

Assu.ptio%s
Revenues
Re,e%ue Assu.ptio%s
Year 1
#a<or Sales &arts Sales G5/5&0<< G534&<<<

Year 2
G994&<<< G5;<&<<<

Year 3
G/5<&9<< G90A&<<<

Year 4
G03A&A<< G/90&<<<

Year 5
G2<2&4<< G049&<<<

#O>!
COGS Assu.ptio%s
Year 1
#a<or Cost &arts Cost G35<&<<< G43A&9<<

Year 2
G3/<&A<< G425&<<<

Year 3
G323&0<< G542&0<<

Year 4
G3;4&9<< G5A4&4<<

Year 5
G435&4<< G950&A<<

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Southeast Auto Care

?'$enses

#ash =low Receivables average 3/ days Payables average 5< days

&ro7e(ted &ro'it a%d #oss

!outheast "uto #areDs revenues are $ro-ected to grow significantly in the ne't twelve months% 6onthly revenue will increase to G00&<<<% =or the 34+month $eriod& revenues will total G000&<<< and this will yield an o$erating $rofit of G323&<<< and a net income of G3<<&<<<% *he monthly $ro-ections are illustrated in the following gra$hC

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Southeast Auto Care

*he ne't two gra$hs show !outheast "uto #areDs $ro-ected annual revenues and annual net $rofit over a five year $eriod%

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Southeast Auto Care

Fetailed $rofit and loss $ro-ections are $resented in the "$$endi'%

&ro7e(ted $ala%(e Sheets

Based on $ro-ected revenues and e'$enses& the #om$any antici$ates maintaining a strong balance sheet%

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Southeast Auto Care

#om$lete $ro-ected balance sheet details are shown in the "$$endi'%

&ro7e(ted Cash lo*he #om$anyDs cash flow $ro-ections show that !outheast "uto #are will have sufficient cash to su$$ort the business% *he following gra$hs $resent a view of $ro-ected cash flow of the business%

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Southeast Auto Care

$rea; E,e% Cal(ulatio%

!outheast "uto #are achieves brea, even with about G40&0<< in monthly revenues% *his is shown in the following gra$h%

Su..ar+ o' #e%der Retur% a%d Ris;

!outheast "uto #are is re)uesting a G/<&<<< loan to e'ecute this business $lan% 6anagement will contribute G3<&<<< in e)uity% *hese funds are sufficient to allow the #om$any to achieve its business goals and they $rovide a satisfactory cash safety cushion for the #om$any% *he #om$any will ma,e both interest and $rinci$le $ayments monthly to the lender% Pro-ections in this $lan assume a 2%<I interest rate on the loan with a five year amortization $eriod% #ash flow $ro-ections su$$ort the #om$anyDs ability to meet monthly $ayments% 6anagement believes the business $lan and $ro-ections $resented in this $lan show that the lender has minimal ris, with this loan%

&a)e 2=

Southeast Auto Care

RE ERENCES
1

2006 The Automotive Repair Industry, (Integra Information, For es, Apri! 2006" Arti#!e Found at$ %http$&&'''(integrainformation(#om&for es&overvie'(htm) 2 200* The +hanging ,( -( Auto Industry$ The Impa#t of .e#!ining /e' 0ehi#!e -a!es on the Aftermar1et 2usiness, (R( 3( 4o!1 Automotive Information, Apri! 200*" Arti#!e Found at$ %http$&&'''(po!1(#om&T3&5-6200*076+hangingAutoIndustry6Aftermar1et (pdf) 7 200* +hanging +onsumer 2ehavior to'ard Automotive Repairs and 5aintenan#e 8eeps Repair shops on Tenterhoo1s, (Frost 9 -u!!ivan Report, Frost 9 -u!!ivan -pea1s +andid!y 'ith ,(-( Automotive -hop :'ners, ;u!y 70, 200*", Arti#!e Found at$ %http$&&'''(prne's'ire(#om&ne's<re!eases&frost<<su!!ivan<finds<#hanging< #onsumer< ehavior<to'ard<automotive<repairs<and<maintenan#e<1eeps< repair<shops<on<tenterhoo1s<622=>6?2(htm!)

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Southeast Auto Care

A&&EN"!CES
12 Mo%th &ro7e(ted & G #

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Southeast Auto Care Re.o,e Se(o%d #oa% !%terest 'ro. all three (harts 12 Mo%th &ro7e(ted $ala%(e Sheet

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Southeast Auto Care

12 Mo%th &ro7e(ted Cash lo-

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Southeast Auto Care

5 Year &ro7e(ted & G #

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5- Year $ala%(e Sheet

A&&EN"!CES

Southeast Auto Care

5 Year &ro7e(ted $ala%(e Sheet

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Southeast Auto Care

5 Year &ro7e(ted Cash lo-

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