F and R Auto Repair
F & R Auto (F & R) is the desire of John Ford and Michael Ronald who together have 30 years experience as auto mechanics. Both have a dream of starting up their own company and offering better service to their clients than competitors.
The objectives over the next three years for F & R Auto Repair are the following:
• Sales revenues increase steadily through year three.
• Institute a program of superior customer service through rigorous evaluation of service experience. • Hire three more mechanics.
1.2 Keys to Success
In the auto repair industry a company builds its client base one customer at a time and mostly through word of mouth marketing. With this in mind, the keys to success for F & R Auto Repair are:
• High-quality work.
• Constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress. • Knowledgeable mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.
The mission of F & R Auto Repair is to provide high quality, convenient and comprehensive auto repair at low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.
The company will be a partnership with John Ford and Michael Ronald each owning 50% of the company. The company will be a limited liability company registered in the state of Washington. The firm will have facilities on 1312 1st Ave NW in Ballard, a neighborhood of Seattle. The facilities will contain a two-bay garage, office space and storage space for tools, parts, etc.
The company is seeking a loan in order to finance the start of operations for the company. Each of the owners will be putting up some of their own capital as equity.
2.1 Start-up Summary
The data obtained for the start-up comes from research done in the Seattle area with other small mechanic shops who have started their own business. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items.
Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.
| | |
|Requirements | |
| | |
|Start-up Expenses | |
|Legal |$500 |
|Stationery etc. |$200 |
|Advertising |$600 |
|Phone |$200 |
|Insurance |$800 |
|Rent |$4,000 |
|Utilities |$200 |
|Computer |$2,000 |
|Other |$600 |
|Total Start-up Expenses |$9,100 |
| | |
|Start-up Assets | |
|Cash Required |$2,900 |
|Start-up Inventory |$0 |
|Other Current Assets |$0 |
|Long-term Assets |$20,000 |
|Total Assets |$22,900 |
| | |
|Total Requirements |$32,000 |
|Start-up Funding | | | | |Start-up Expenses to Fund |$9,100 | |Start-up Assets to Fund |$22,900 | |Total Funding Required |$32,000 | | | | |Assets...