M2M Customs is a start-up auto restoration shop. The company is engaged in the restoration of old American cars, and the designing and building of hot rods, and street rods. Body work and rust repair is the majority of our work. Phaethon's Chariot has recently bought a new state-of-the-art restoration shop, located at 6632 Reese Road, Memphis TN. The company is dedicated to providing the highest quality workmanship. M2M Customs keeps up on all the latest tools and techniques of the trade to perform the highest quality work possible today. Phaethon's Chariot is located in Memphis, TN. Our company and employees are dedicated to doing each job right the first time, and retaining each car owner as a lifetime customer of our shop. The company is a state chartered corporation in Memphis, owned by Jovon Campbell. The owner has worked on car independently in the Memphis area for the past 10 years, and is committed to excellence every day. This new space allows the company to retain more work. The office area is comprised of 500 square feet and the shop area where the day-to-day work on the cars is performed is 5,000 sq.ft. The population of the seven communities in close proximity to M2M Customs is estimated at 918,279. Roughly, this would mean that this area comprises a total restoration market in excess of $2.0 million annually. The company's goal is to acquire a comfortable minority share of this nearby market. The marketing research and tailored marketing strategy described in this business plan will result in modest after-tax profits of in year 1, quadrupling after-tax profits within three years. It is estimated that by year 3, revenue will reflect a healthy market share of the local restoration market. Within the next twelve months it is the objective of the company to market to the local area to promote our business in Shelby County and surrounding areas. Our market segment will be 25- to 65-year old owners of old American cars. After year three we plan to expand our business to the Little Rock Ark, area. Our studies indicate that the Little Rock area does not have a lot of competition for our business.
2.0 Situation Analysis
M2M Customs is an auto restoration shop located in Memphis, TN. The company is engaged in the restoration of 1970 and earlier American cars, and the building of custom hot rods. Body work and rust repair is the majority of our work. The total market for auto restoration in the communities which the company target is approximately $2.7 million. The share of this market channeled through auto restoration shops and word of mouth is directly proportional to disposable income. M2M Customs is best suited to serving the high-end customer share of the auto restoration market because clients of auto restoration can afford expensive materials and custom solutions. The company is unable to compete with large shops geared to mass production runs, nor can the pricing compete with the many "insurance job" body repair shops. The company is dedicated to providing the highest quality workmanship, meeting the agreed delivery dates, and executing the custom work exactly in accordance with the customers concept.
2.1 Marketing Summary
The type of customer who will be interested in the services of M2M Customs are predominantly male, and in the age range from 25 to 65 years. The majority will have an income in the $60,000 and up range. Some customers in the lower income ranges are interested in specific services, interior restoration, or paint work and parts sales rather than full restorations. The customers who M2M Customs plans to target want :
1.Quality full restoration or custom services, including engine, custom body work and paint. 2.Timely completion of the work on their cars.
4.Close attention to detail, and commitment to quality.
5.Ability to offer ideas for alternatives and close customer services. This is a...