Sales Auto Repair Shop: Detailed Business and Competitive Analysis

This assignment presents a detailed business plan for Sales Auto Repair Shop, a proposed auto repair business in Seattle. The plan includes a competitive analysis of existing businesses, such as Pacific Rim Automotive, Matt’s Greenwood Auto Care, and Foreign Car Workshop, evaluating their strengths and weaknesses. It outlines target customers, pricing strategies, and marketing approaches. The plan also incorporates a competitive matrix to differentiate Sales Auto Shop through personnel training, technological systems, and pricing. A comprehensive risk analysis identifies market, technical, and team risks, proposing mitigation strategies. Furthermore, the plan provides a financial plan, including startup capital, revenue projections, and expense management. The document also includes a discussion of the importance of strong customer relationships and technological integration. References from various sources are used to support the business plan.

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Sales Auto Shop
Name
Course
Instructor

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Sales Auto is a desire that I have had for a very long time since I began my career as an auto
mechanic. With this company, it will be easier to offer better services to all clients exceeding
what my competitors will have to offer. The company will be located in Seattle and will contain
a three- bay garage, storage for tools, parts and an office space. With the company, clients will
be able to meet their auto servicing needs such as wheel alignment and transmission (Drucker,
2014).
According to Schaper, (2014), starting up an auto repair shop is very challenging in the current
world. Any company that does not offer quality services, overcharges the customer, or does not
seem to care about the customers is doomed to fail. With technological advancements, small
companies face a big problem of incorporating IT in their auto repair shops. The cost of setting
up an IT system is very high especially for small startups like Sales Auto Repair. It is also
difficult to look for well-trained technicians as they seek high salaries. The existence of
substitutes such as do it yourself work makes this industry very competitive. To solve these
problems, it is important to ensure that a strong bond with the customers is developed. This will
increase the level of trust while also attracting new customers. With the technological
advancements, it is important to invest the necessary capital that will make it easy to incorporate
the necessary IT tools. A Good investment is also necessary in getting qualified personnel that
will work effectively (Crawford, 2014).
Having a qualified team of professionals makes it easy to run the company without facing any
problems. The company will hire one expert in the IT field and two supporting workers before
the shop develops into a bigger company. With an increase in the services offered, more team
members that will ease the operation will be hired.

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SALES AUTO REPAIR SHOP COMPETITIVE ANALYSIS
Pacific Rim Automotive
Matt’s Greenwood Auto
Care.
Foreign Car Workshop
SUMMARY
This is an import
locomotive repair company
located in Seattle. They
mainly deal with the repair
of Japanese and European
car models and are a big
threat in the industry.
This company mainly deals
with the retail sale of
automotive parts,
automobile maintenance,
and installing parts in the
vehicles.
It is located in Seattle but
does not pose a great
threat as it was started
recently.
This is the main threat to
the market base as they are
a multinational company
operating on a large scale
basis.
Has an electronic work
order system that provides
the history of each vehicle
that is serviced and issue
customers with a well-
explained document.
TARGET
CUSTOMERS
Japanese and European car
owners.
Owners of all car models Owners of all car models
PRODUCT
OR SERVICE
Loan cars- $105
Wheel alignment- $25
Vehicle Electrical Repair-
Loan cars- N/A
Wheel alignment-$20
Vehicle Electrical Repair-
Loan cars- $105
Wheel alignment-$35
Vehicle Electrical Repair-

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PRICING
$40
Engine re-builds-$150
Suspensions-$60
$35
Engine re-builds-$120
Suspensions-$40
$50
Engine re-builds-$160
Suspensions-$75
GENERAL
MARKETING
STRATEGY
Makes use of direct sales
staff to attract more
customers.
Link with a few tor trucks
company makes it easy for
them to connect with the
customers.
Offer unlimited shuttle
services to all the
customers.
ONLINE
MARKETING
STRATEGY
Facebook ads and twitter
handle pages.
Facebook ads
Facebook ads and the
company’s website.
STRENGTHS Have over 20 cars that they
loan out to their customers
as they finish the repairs.
They also offer free car
hand wash and vacuum
making them a force to
reckon with.
well trained staff Has a large bay area that
makes it easier for them to
work on a number of cars
at a go.
Use electronic parts
catalogs and electronic
commercials invoicing
systems to offer
commercial parts delivery.
Offer both auto repair
services and auto parts

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inventories.
WEAKNESSES
Loan out the cars at a very
high price ($105).
The staff is not
permanently employed by
the company.
Generally high prices for
spare parts. Tires cost $75
COMPETITIVE
ADVANTAGE
Sales Auto Repair shop will
loan the cars for free.
Long term contracts to
members of staff to
prevent vacancies.
Low prices for products of
the same quality. Tires cost
$55.
To compete with the smaller and larger companies, Sale Auto Shop needs to come up with a
better strategy that will enable it to stand out from the rest of the shops.
Competitive Matrix
In order to compete at the same level with other companies, both small or large, Sales Auto
Company has put a number of strategies that will enable us differentiate from our competitors.
The company has also incorporated some strategies that have made companies in the industry to
blossom.
Factor Sales Auto Shop Pacific Rim
Automotive
Matt’s
Greenwood
Auto Care
Foreign Car
Workshop
Personnel Will only hire
specially trained
personnel who
can effectively
Have well trained
personnel who have
experience in the
field.
Source the staff
from local
colleges and
universities.
Have staff from
overseas and
offer the best
services.

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run the shop. The
personnel will
treat all the
customers with
respect and
ensure that all
their needs are
properly met.
With a trained
staff, it will be
easier to figure
out all the
problems facing
the clients
visiting the shop.
Training of
Operators
Yes No No Yes
Technologica
l systems
Sales Auto will
make use of
point-of sale
systems in our
stores just like
our competitors.
Just installed the
point of sales
system and are still
experimenting with
it.
Does not have a
point of sale
system.
Has a well set
up point of sale
system in place.

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With these
systems, it will
be easy to gather
all the sales and
gross profit data.
To achieve this
we will keep a
unit of stock
from every store
on a daily basis.
Shuttle
Services
Yes Yes No Yes
Prices The shop will
offer services and
spare parts at a
very pocket
friendly price.
They offer quite
cheap services.
Ranked second
in prices.
Charge high
prices that are
way beyond
what normal
citizen can pay.
.

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Risk Analysis
High
Market Risk
The insurance companies cover all the damages to the property and premises but the vehicles of
the customers are not included. When a customers’ car is under our car, it is the responsibility of
the shop to protect it from any damage or vandalism. This very big risk will face the company. A
garage keeper’s liabilities insurance is the best way to go. This insurance policy will take care of
any damage or loss of the customer’s car. By having the best insurance that protects the company
from risks, it will be easier to focus on other important things (Hvide, 2014).
The market is a very important part for the continuous growth of Sales Auto Company. All risks
that may lead to the loss of a market base should be strictly avoided. Supplying customers with
fake spare parts is a very big risk that discourages them from visiting the shop. This will also
lead to court cases that may prove to be very expensive for the shop to handle. All suppliers
settled on will have to undergo vetting so that they provide products that are of good quality.
This will make sure that they only supply the best products to the shop on a regular basis. With
good products sold to the customers, the reputation of the shop is not tarnished, as the customers
will be fully satisfied with what we have to offer (Amit, 2012).
Financial Plan
Sales Auto Repair Shop will raise 80% of its capital and the remaining 20% will be from a bank
loan. A starting capital of $22,900 will be enough to fully operate the shop until it starts getting
profits.

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The revenue projection for the 3 year plan will comprise of an increase of 5% in each year. Sales
Auto cost of sales is 56% of the gross revenue in the first year and dropping to 53% in the second
and third year. The expenses incurred in the marketing strategies such as advertising and sales of
the shop will make up 11% of our net income. Our net income has been projected to increase
from $15,900 to $ 20,330 in the first year and from $20,330 to $ 35,000 in the second year.
Sales Auto assumes that the growth that is planned in the first year will require more capital to
employ additional staff who will support the growth of the sales. In the second year, the cash
requirements will be reduced since the startup will have greatly benefited from the profits in the
first year. In order for smooth operation, Sales Auto will support all the cash needs through
credits from the bank.
Medium
Technical Risk
An auto repair shop uses many chemicals that may end up burning the mechanics or causing
health problems to them. To avoid incurring compensation costs, all workers requirements are in
place and the appropriate working tools given to them. The working tools and equipment are
supposed to protect the workers from battery acids, coatings, and antifreeze. All the employees
that will be working around chemicals will be given long sleeves, gloves, masks, and eyewear
that protect the eye. The shop will also be well ventilated to prevent any congestion of fumes that
may end up harming the employees or customers that visit the shop (Herves, 2014).The shop will
also ensure that there is a chemical safety policy that all workers in the shop are required to
follow.

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Low
Team Risk
All workers in the shop should be protected from objects that fall. The objects, equipment, or
materials that fall make up nearly half of injuries that may occur to a worker or a customer. This
injuries can either be very fatal or a minor injury. Regardless of the effect, it is important to
ensure the safety of everyone. This risk is however ranked as a low since the necessary
precautions have been put in place. To prevent this risk, no customer will be allowed to access
the working area of the shop. All employees will also be given enough training on how to use the
tools and equipment.

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References
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Sloan Management Review, 53(3), 41.
Abrams, R. M. (2017). Entrepreneurship: A Real-World Approach. Planning Shop.
Crawford, M. (2014). The garage sale as informal economy and transformative
urbanism. The informal American city: Beyond taco trucks and day labor,
21-37.
Chang, S., & Zhang, X. (2015). Mating competition and entrepreneurship. Journal of
Economic Behavior & Organization, 116, 292-309.
Davidsson, P. (2015). Entrepreneurial opportunities and the entrepreneurship nexus: A
re-conceptualization. Journal of Business Venturing, 30(5), 674-695.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Hvide, H. K., & Panos, G. A. (2014). Risk tolerance and entrepreneurship. Journal of
Financial Economics, 111(1), 200-223.
Herres, D. (2014). Setting up shop. Electrical Connection, (Summer 2014), 32.
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Sandri, D. (2014). Growth and capital flows with risky entrepreneurship. American
Economic Journal: Macroeconomics, 6(3), 102-23.

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Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and
small business.
Scott, M. (2012). Cultural entrepreneurs, cultural entrepreneurship: Music producers
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