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Not accustomed to writing business plans? Business plan template for an auto repair shop will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of an auto repair shop in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
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This template includes a complete business plan, with a financial forecast and the following sections:
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Louvigny Auto will be a generalist car garage offering both the maintenance and repair of new and used cars.
The garage seeks to welcome all vehicles, regardless of the make or age of the car.
We will offer a courteous and personalized service, making sure to carry out any necessary service needed to maintain the car in question, and will also offer professional advice to our customers.
The company will be located at 25 Route de Louvigny in the town of Louvigny, which is considered as one of the main "commuter towns" of Caen.
The Route de Louvigny is one of the most popular roads among employees travelling regularly between Caen and Louvigny. It's also located near the historical Prairie Racetrack, the Exhibition Centre, the Malherbe Stadium, and The Zénith concert hall.
The garage is, therefore, very visible to those moving in and out of Caen and close to major events such as concerts and soccer matches, which is ideal if someone's car breaks down, as it can provide assistance quickly and efficiently.
The company's legal structure is as a limited company. It will have two partners, Valentine D and Loïc C., who both hold 50% of the shares.
Having worked in the same garage together for almost five years, the two managers know each other very well and their individual skills complement one another's perfectly.
Valentine D. worked as an executive assistant in a local garage for 10 years. She will be in charge of the administrative and commercial management of the company.
Loïc C. has 7 years of experience in mechanics. He will be in charge of the auto-repair workshop, and more broadly the operational part of the company.
It is estimated that 83% of the 67 million people living in France own a car - making it a country filled with motorists. For many, the car is an everyday necessity.
The steep increase in how frequently and how far people travel, coupled with the longer lifespan of cars on the road means there's a higher demand for car garages than ever before.
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With the average lifespan of a car being around 8.5 years, regular maintenance and inspection is required to ensure it continues to function smoothly.
At 32.7 million, privately owned vehicles make up the majority of all cars registered within France. They're followed by commercial cars, estimated at 6.1 million, and 1 million light-duty vehicles (including pick-up trucks and vans), which also require the services of a car garage.
Since the 2000s, the French have favoured the purchase of brand new cars over used vehicles - with 2.11 million new cars sold in 2017.
This is due, in particular, to the scrappage bonuses introduced by the government, as well as a tightening of rules to bring car owners in line with changes regarding technical inspections and environmental regulations.
As for the budget each car owner must set aside for maintenance, the average annual cost was said to vary from €872 to €1,801 in 2018, depending on the type of car.
Garage visits have also become more frequent due to the increasing presence of electric cars, which explains why individuals can no longer afford to forgo specialised labour.
According to INSEE figures, there are 41,600 maintenance and auto repair businesses throughout France - with about 1 garage for every 1,600 inhabitants.
The French car repair market is not very cyclical. However, we have noted a slight decrease in overall revenues between 2010 and 2015, due to fewer road accidents.
From 2016, the overall turnover of the auto repair market increased by 4% - from 21.2 billion euros in 2016, to 22.1 billion euros in 2017.
In terms of purchasing habits, a car owner is most likely to seek out a car garage they already know and trust when they need work done on their car - so it's very important to provide a quality service that builds customer loyalty.
On the other hand, for incidents such as emergency breakdowns, proximity is an essential consideration because the need is immediate.
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The Caen agglomeration alone has more than twenty garages. There is, however, only one other garage in Louvigny - with five more located in the neighbouring towns.
According to Statista.fr, there were 145,934 new passenger car registrations in Normandy in 2017, with the local market representing about 7.2% of the French market.
As Normandy is a rural region, having a vast number of car garages is essential.
We have identified two customer segments for our garage:
We have identified only one other garage in Louvigny, and 3 other competitors on the outskirts of the town:
The services offered by our competitors are similar to ours, and, apart from the quality of service and the customer reception area, there are no real areas of differentiation between our car garage and theirs.
As a result, we expect very strong competition with the other garages located around Louvigny.
We do believe, however, that the location of our garage means we'll be readily visible to motorists travelling from Caen to Louvigny, and that the market is large enough to support the arrival of a new entrant.
We expect our company to be profitable at the operating level from the first year, and fully profitable from year 2.
We believe we can achieve a total turnover of 429,850 € for year 1. We plan to develop our business over the following years, by building customer loyalty and implementing the actions indicated in our marketing plan. This should allow us to reach revenues of 454,900€ in year 2 (with 5.83% of growth) and 461,600€ in year 3 (with 1.47% of growth).
We expect to achieve an EBITDA of 22,499€ (with a 5.23% margin) in year 1, 39,989€ in year 2 (with a 8.79% margin) and 44,077€ (with a 9.55% margin) in year 3.
Net operating cash flow should be positive throughout the plan, enabling us to meet our loan repayments while providing leeway for us to renew our equipment and deal with any contingencies.
The creation of our car garage will require an initial investment of €240,000. The partners will contribute €70,000 (29%) and we would like to obtain the below bank financing to fund the remaining €170,000:
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