A) BUSINESS PLAN SUMMARY
A. 1. Describe your products and services.
It is a service around car leasing. We offer a way for first time buyer who are able to lease a car at an affordable and approachable price that. We cater to a customer base that cares about transparency in an age of information, affordability in an age od debt and waste, and inclusion in an age that follows an exclusion due to lack of financial risk.
A. 2. How you developed your idea to start a new business?
There no such a business exists. Most lender and business focuses on customer with lending history. It is developed to cater to a growing customer who believes in “quid pro quo” through brand loyalty and brand recognition.
A. 3. Describe the legal structure of your business
It would be created as an S-Corp
A. 4. Describe your experience in this business and how it will help you succeed.
My experience is in operations, sales, and marketing. I have had numerous years of experience in negotiating contracts; follow through with delivery schedule, customer retention and experience, offloading excess dead stocks.
A. 5. Describe you reason for believing the business will succeed.
Lack of completion and willing buyer market (see research)
B. 1. MARKETING PLAN: Products or Services
It is service catering to a customer base with products that is currently considered “risky” and “depreciating” investment
B. 1. I. What customer need or want is being filled?
A need for car at an affordable price for first time buyer (16-25years old) without the challenges loan approval or financial history.
B. 1. II. What are the features and benefits of your service?
Buying made America product to support the national economy, being included in the growth of economy while at the same time having ones need met
B. 1. III. How will your product be made or how will your services be provided?
The cars are produced by already establish car manufactures, the lending is offered by already established lending banks, we are serving as the middle man with the service to facilitate purchase, maintenance, customer service, and bill collection.
B. 1. IV. Who will supply the materials?
Car manufactures and banks.
B. 1. V. What future products/services will you offer, and when?
In addition to the main service of car ownership, we offer sales of other services related car maintenance for a nominal cost compared to competitor. We hope to offer the same service when it comes to home buying.
B. 2. Distribution: How will your products or services be distributed?
It will be offered through our distribution offices and through sales during college freshman orientation, high school graduation workshop, better investment practices workshops, et.
B. 3. Industry
Car buying/leasing. Catering to the trend of FOMO(fear of missing out), and need for newest gadgets/products.
B. 3. I. What is happening in your industry (is it growing, stable or declining)?
According to Market Watch, Car Leasing Market to grew at 12.61% during the period2017-2021
B. 3. II. What do you believe the future hold for this industry?
Virtual Buying, USA Today says, “These virtual used-car sellers not only ditch the dreaded price negotiations and shorten the buying process, but also offer lower average prices than brick-and-mortar dealerships, a recent analysis shows. While car–buying experts see some potential risks, they say the future of car shopping may be buying online.”
B. 4. Customers
Core Customer 16-21, secondary customer 21-27,
B. 4. I. Who are your customers- what does your customer profile look like?
First time car buyer, purchasing after getting their license, driving is a necessity
B. 4. II. How many customers will your business have?
According to Statistic, America has “227.5 million people held valid driving licenses in 2018” with 2.51% yearly growth.
B. 4. III. What information do you have that supports your decisions about your customers?
As a first time car buyer, the credit application was a hurdle requiring numerous amounts of hours and negotiation, to a point it becomes a life choice rather a product or service ownership. If there are 5.68 millions newly licensed driver, and of that 30% buys, that is equal 1.7 million with car sales price on the lower end of $12k, there is huge potential for revenue and profit.
B. 4. IV. What is the growth potential for this business? What is your plan for growth?
If the customers are happy with service, in a society that revolves around credit, customer will seek out loans for house buying
B. 4. V. What information do you have support your decisions about growth?
Easy to validate all info on a Google search: our business model is transparency and that a buyer should buy a product, not be sold by a sales person.
B. 5. Competition
Currently there is no direct completion.
B. 5. I. Who are your main competitors?
Only indirect ones come from sellers that take advantage of buyers without financial knowledge and predatory lending practices.
B. 5. II. What are their strengths and weaknesses?
Strength: High marketing budget and selling experience in automobile sector. Weakness: not transparent about lending and falls to default.
B. 6. Position
Hope to corner the market provide service that no one else is.
B. 6. I. What will your market position be?
Transparency and better lending practices to avoid/cut down on defaulting on loan
B. 6. II. What is your competitive advantage?
Buyers are inclined to buy from us due to ease of use and ease of payment plan (similar to T-Mobile)
B. 7. Image and Packaging
Cool and effortless image. No packaging required
B. 7. I. What will the image of your business be?
One price for better service with no hidden cost.
B. 7. II. What do your business cards and promotional material look like?
It is an app creation to avoid paper wastage and to have all information in one place to view and compare online
B. 7. IV. Where will your business be located, and why did you choose this location?
Business is predominantly online. and via phone calls. There will no brick & mortar shop at first, there is a possibility to work with banks to have sales people present, or have customer referred to us. Eventually, have services available at school, job centers, and in main cities.
B. 8. Pricing
There are several tear services. Basic $125/Month, plus our insurance $75 with nominal fee deductible, in addition few services will be offered and available as add on.
B. 8. I. How did you determine your pricing strategy?
What is the cheapest leasing service available for new car and what are hurdles stopping people from financing.
B. 8. II. How do your prices compare to the competition?
Currently there are no competitions. It would be new car with limited hurdles for lease or ownership.
B. 9. Marketing Goals: What is your dream-where do you see your business in the next 2to 5 years?
Eventually to offer services for home ownership, and loan for business venture.
B. 10. Marketing Strategy: What is your promotional plan?
Comparison, website, news, social media, school gathering & presentations
C) MANAGEMENT DESCRIPTION
1. Who will handle which functions in the business & what are the duties and qualifications?
Every person hired needs to have an experience or at least an understanding of cold calling, sales, marketing, customer service, and lending practices
2. If employees, how many will you have and what will their duties be?
Start with 5 employees
3. Who will hire, train and supervise them?
Myself
5) What will it cost your business for the first two years?
Operating budget of $750k a year
6) What will your owner draw be for the first two years?
0$, profit will be reinvested for growth
7) What will your employee salaries be for the first two years?
$215K/Year
8) Who will your lawyer, accountant, insurance agent, and other advisory team members be?
Will be advised through start-up groups
9) How will you manage your record keeping, finances, and inventory?
All online updated weekly to keep transparency
10. What licenses, permits or regulations will affect your business?
Negotiations with car manufacturer and bank lenders
11. Will you have to collect and pay sales tax, and if so, how much and for which ?
Taxes will be collected and paid directly by the intuition handing sales of product and sale of service
12. What types of insurance will you need?
Loan default & accidents
13. What types of payments will you accept?
Cash, check, credit cards, direct deposit, wage garnish
14. What contingency plans have you made for you?
I will hire and train every person to be independent and to be able to tackle every job in the case any member of the team becomes unable to function.
15. What contingency plans have you made for the business?
Always insure every product/service with the highest insurance available to minimize loss od products.
15. I. What will you do if sales are not what you expected? What will you do to increase them?
Create incentive to join and offer promotions to a level where we don’t profit at the beginning
15. II. What will you do if costs are higher then you expected?
Every cost is assed prior and have a trial service for first 6 months to minimize all issues later.
15. III. How will you make decisions to continue to increase your cash flow and profits?
Evaluate market trend, services, and cost. Offer add on that minimize insurance cost
15. IV. What will you do if a competitor lowers their prices?
Cut profit margin to hold on to customer base
D. FINACIAL PLAN
D. 1. Expense $400K/year = $79k/month
Salary: $20/hr x 40hr = $800 x 5 employees = $4000/week x 52weeks = $208,000
Rent: None
Advertisement: $10,000/month x 12 months = $120,000
App: one time cost $10,000 + maintenance $1000/month x 12 months = $12,000
Travel: $8000/month x 12 months = $60,000
Car expense: $125/month x 300 subscription = $37,500 x 12 months = $450,000
D. 2. Income $120k/month = $1.4mil / year
Car $300/month per car x 10 per day = $2000 x 30 days = $90,000
Promotion 100 x 300 = $30,000
