Business Plan for Truspeed Performance
Business Plan for TruSpeed Performance
OWNER: John R. Beasley
TruSpeed Performance LLC
1922 E Southbridge Way
Sandy, UT 84093
801-948-0877
I. Table of Contents
I. Table of Contents 2
II. General Company Description 3
III. Use Of Loan Funds 4
IV. Products and Services 4
V. Operational Plan 4
VI. Market & Strategy 7
VII. Management and Organization 10
VIII. Financial Plan 10
IX. Appendices 11
General Company Description This section is too long and saying the same thing many times in different ways. If you want I can help you rewrite it. Sometimes bullet points may work better too.
TruSpeed Performance is an Auto Repair and Performance Company built on the basis of making our customers cars look good, run well, and perform at their maximum performance at an affordable price. My company offers a wide range of products that are produced all over the world from over 400 brands, offering the absolute best options for our customers. I also plan to produce custom products for rare cars that don’t have a huge aftermarket support, but have a large following of enthusiasts. The company is owned and operated by an automotive enthusiast. I know our industry and I know what my customers like. By having this knowledge I am able to cater to my customers and give them the best experience possible.
TruSpeed Performance was started to change the face of the aftermarket and automotive repair industry. I wanted to give my customers the feeling of security and trust when leaving their vehicles with us. TruSpeed Performance is built to be an honest, no hassle, low cost alternative for our customers' performance needs. We take pride in learning as much as we can and sharing our skills with auto enthusiasts.
Everyone at TruSpeed works on every car with the same passion we have working on our own vehicles. I'd love to see my customers' tuner looking clean, driving fast, and expressing them and their style without. We pride ourselves on being the company that says yes when others would say no. The company who will take on a custom project others would turn down.
At TruSpeed Performance we're all about making our customers dreams and ideas into reality and doing it right. We won't recommend parts we don't think our customer need or would really see a benefit from. We'll recommend options that we personally would want to try if their car was our own.
I believe the idea of starting this business with low overhead, working my way up, and building a quality reputation of a shop that started as an enthusiast modifying cars in a garage, was the smartest strategy.
What makes us different from every other speed shop out there? We have a variety of customers, those who want their everyday repairs, also those that plan to take their cars to the track or to custom car shows. Our customers want to win races, win competitions and be the envy of their car club and friends. We have the tools and know how to make their car out perform their competitors, and out shine their peers. Being able to not only repair a vehicle to factory specifications, but to also be able to add power where needed, increase responsiveness of handling and other important factors, we are able to better serve our customers.
Use of Loan Funds
Through my planning process I have determined that UMLF would be the right fit to help us make the next step in our business growth. In order to have the most up to date tools to best serve customers and to have the best looking shop to aid in our customers’ comfort, the loan from UMLF for $25,000 would be the best option. We plan to use the funds to purchase a two post lift, diagnostic and tuning tools, showcases, and display items for the show room, as well as pay for marketing to help TruSpeed to get noticed.
Products and Services
At TruSpeed we pride ourselves on doing everything right the first time. We aren’t going to take shortcuts just to get a car out of the shop. We practice the industry’s standard and original manufactures methods of repairs. We run an AllData Certified repair shop, which means we use the same information the dealers do to repair our customer’s vehicles. We keep up to date on all the recalls and technical service bulletins released around the industry.
I believe that we can do the work that most other shops can with more attention to detail, and at a lower cost. That is why I have set my rates the way I have. I strive to keep my prices less than our competitors and do a better job. I feel that too many dealerships today claim a high standard of excellence because they are the Original Equipment Manufacturer, but fail to do so. I have found that many dealerships cut corners or charge customers for services that are not needed. This is why I feel that by being honest and upfront, I will have a competitive advantage, not only in price but in quality of service.
Our company installs and recommends parts to our customers from the aftermarket performance industry. These are not just replacement parts, but parts that will make their vehicles gain horsepower, increase handling characteristics, and help them to make their cars unique. These parts include but are not limited to larger turbos, high flow exhaust, bigger fuel rails, cold air intakes, projector headlights, and custom fabricated parts that we manufacture in house with the help of some of our industry partners.
Operational Plan
TruSpeed is currently set up through appointment only. We only work on as many cars as we can handle at one time. Right now I have between one and two techs on a vehicle at one time. I have one receptionist who helps with paperwork, accounting and scheduling. I plan to keep these numbers until the customer flow increases enough to need more. Equipment used includes air tools, hand tools, lifts etc.
I plan to acquire an alignment rack with accessories to help me better fine tune and adjust the customers steering and suspension. This will help them to handle better on the roads and on the track as well as get the most out of their sport and race suspensions. With many people lowering their cars or using them for performance purposes, the conventional alignment isn’t going to be sufficient for their needs. I feel that by offering this service to customers I will be able present to them a service that no one is currently offering.
I also plan to invest in more tuning and diagnostic tools to help us diagnose and tune vehicle’s engine management systems. These will help to get more power and/or better fuel economy out of their vehicle. All of the power upgrades that we offer to our customers can benefit from tuning their computer system. Because we are dealing with high horsepower engines we need more diagnostic and engine tuning tools than the average repair shop. Our customers expect that if we build an engine for them, or tune their system, that they will be able to push it to its limits without any issues.
Production
The products we offer our customers come from all the industry leading aftermarket manufactures. We are authorized dealers for some of the industry leaders including, K&N, AEM, and Magnaflow. We import some products from different countries including Japan, Australia, and some European countries. I also use distributors, wholesalers and local parts stores to get parts for our customers. All of the products we sell come with manufactures warrantees and we guarantee our services. Of the products I am currently working on manufacturing to sell with the TruSpeed name, go through many tests and are manufactured with top quality materials.
Location
The next step is to take my shop from the residential garage to a new commercial location that will help support the growth of the company. By moving to a commercial location, we are increasing our exposure, and improving our overall professional image as a company. Also, with a larger location I can hire an assistant to accommodate my expected growth.
In order to run efficiently I need space to pull in vehicles, pull them apart and stay organized. I need a building that will allow automotive service and repair and the hazardous materials that are involved. I need an area that is easy for a tow truck to drop off a non running vehicle or a large vehicle to bring in engines or other large heavy parts in as well as space for our customers cars I feel that by having walk-in access and a nice looking show room not only will we increase our sales but we will also increase the trust and impression we make on our customers. I need to be in an area that my suppliers can find easily and near auto parts suppliers and dealers. We deal with a lot of lowered cars so I need a driveway that is easily accessible.
In order to make the building look like it should, I’ll need to do very minimal signage. I will add a few machines and lifts to make an effective work environment. I will need adequate seating for our customers if they choose to wait. I would also need display cases and racks in the show room in order to hold some display items.
I need to get a new alignment rack in order to perform the proper tuning of the steering and suspension parts on performance vehicles. With our alignments and suspension tuning of lowered cars I would like to be able to have an alignment rack that is easy to drive onto without chancing damaging the customer’s vehicle. The alignment rack I am looking into purchasing will cost $58,462.27. I plan to lease it from Hunter Engineering Company. We have a strategy set up with hunter to work into this alignment system and scissor rack, however it is a progressive plan that includes starting with a cheaper four post rack and upgrading in the future. I will also need to purchase other miscellaneous machines and tools to help me to run the shop. Total cost for other shop machines be approximately $2,700.
I plan to operate Monday through Friday 9am-5pm and Saturdays 10am-4pm. The average utilities for the building run between $150 and $300 per month. I also need a few services to make the business run efficiently including AllData information services which costs $150 per month. The other services I need are internet and phones which I have had quoted through Comcast for $114 per month. I need to be able to process credit cards; these services range from $20- $40 per month depending on the services and amount of transactions. Payroll services will cost $23 per month.
I am proposing to move into a shop on 3762 W 5400 S. With the shop being in a central location with easy access to all major freeway systems in the Salt Lake Valley and TRAX, our potential customer base increases significantly and with the location being in the heart of the valley, we are in the heart of our target customer base. The shop has two 12’ x12’ doors and a large shop. There is also a good size show room to display product and accommodate our customers. It also has a back warehouse area that is great for stocking product, doing fabrication and other work, and space to train employees, overall plenty of space to effectively do my job. There are also plenty of spaces for my customers to park.
The shop will have a nice, well lit and professional show room that will work perfectly to keep with our professional image and help my customers to feel comfortable and accommodated. The exposure of being in a prime location with 39,300 annual average daily traffic, this will be very beneficial. Having a well advertised grand opening will be a great opportunity for new customers to find me, as well as reach out to previous customers. For all these reasons, as well as the close vicinity of manufacturers and dealers, makes this shop a clear choice to efficiently and effectively target our customer base.
Legal Environment
We are currently licensed and have insurance set up to start when we move into the new shop in order to cover all of the tools, machines and a few customers’ cars if they stay overnight. My shop will be equipped with fire extinguishers and flame resistant cabinets for flammable substances. I will be submitting for Trademark rights to TruSpeed Performance, and the logo. The cost for filing has been included in the startup budget. I will also have to apply for a new license under Taylorsville City. I am also required to have unemployment insurance, workers compensation, and plan to offer my employees health insurance after their probationary period.
Personnel
I have two techs on my payroll, one part time tech that has many years of experience and is planning to take his ASE certification tests soon, and the other who is new to the industry but has the skills and motivation to be a great asset to the company. The owner is ASE Certified and All Data Certified as well as has over 5 years experience in the automotive industry. All techs I employ will be required to have at least two years experience and be in pursuit of certifications or be certified. I will be encouraging all my employees to continue their education outside of their work with TruSpeed. I will continue to work as a technician, parts manager, webmaster, and account manager.
All new employees will go through background checks and drivers’ license checks. Pay structure will be based on experience and certifications. Bonuses for certifications will be given to employees who obtain them after they begin working for TruSpeed. I will require all of my employees to become AllData Information Specialists.
Inventory & Suppliers
We currently stock oils and recharge kits. We obtain products needed through wholesale distributors with whom we have accounts. Some items are also ordered directly from manufacturers. In the new location we will stock more commonly needed items. We also will maintain an inventory of parts in the showroom to showcase some of the available options for our customers.
Our Market
Based on my research I have found that the number of small cars and light trucks in the state of Utah, both new and used, being purchased during the last few months of the fourth quarter of 2010 has gone up 6.27%. We have also found that not only have more vehicles of this type been purchased, but also more have been registered since last year. I have also found that shops are beginning to only perform the most basic maintenance or repairs; and not working on the custom tuners. Most of the race shops will only build the very expensive track only cars that they build from the ground up.