Get real P&L data for your plan!

We have complete profit and loss financial data from companies like Southeast Racing.

SIC 5531 Automotive Dealers and Gasoline Service Stations - Auto and home supply stores

*Reports start as low as $89

 

Auto Parts Store Business Plan

Southeast Racing

This sample business plan can be edited directly in Business Plan Pro software.

Page 1   2   3   4   5   6   7   8  

Financial Plan

• Salaries and rent are the two major expenses, while depreciation is another significant cost that will increase as the company develops.
• We want to finance growth mainly through cash flow. We recognize that this means we will have to grow slowly.
• It should be noted that the owners of Southeast Racing Parts do not intend to take any profits out of the business until the long-term debt has been satisfied. Whatever profits remain after the debt payments will be used to finance growth, mainly through the acquisition of additional inventory.

7.1 Important Assumptions

Key assumptions for Southeast Racing Parts are:

• We do not sell anything on credit.
• We assume the continued popularity of auto racing in America.
• Monthly sales are the largest indicator for this business. There are some seasonal variations, with the months January through June being the highest sales months.
• We assume access to capital and financing sufficient to maintain our financial plan as shown in the tables.

7.2 Key Financial Indicators

The key indicators in our plan illustrate increasing sales, control of costs, and increasing profit margins.

7.3 Break-even Analysis

For our break-even analysis, we assume per month running costs which includes payroll, rent, utilities, and an estimation of other running costs.

Based on our anticipated margin, what we need to sell per month to break even is shown in the chart and table below.

Our sales forecast indicates that monthly sales are expected to be much greater than the break-even point mentioned in the table.

7.4 Projected Profit and Loss

The detailed monthly pro-forma income statement is included in the appendix. The annual estimates are included on the following page. We expect a modest by acceptable profit at the end of the first year of business. It should almost double by the third year as the reputation of our business, employees, and services become apparent to the local racers. Second year revenues anticipate the addition of one part-time employee, along with one full-time employee in the third year.

The credit card surcharge expense was based upon 50% of sales being paid for with plastic, and assuming a 2% service fee. The inbound freight charges were based upon 2% of cost of goods for year one, 1.75% for year two, and 1.5% for year three. Depreciation was figured upon $29,000 in expensed equipment at the rate of seven years.

7.5 Projected Cash Flow

Cash flow projections are critical to our success. The following table shows cash flow for the first three years, and the chart illustrates monthly cash flow in the first year. Monthly cash flow projections are included in the appendix.

7.6 Projected Balance Sheet

The table shows the annual balance sheet results, with a healthy projected increase in net worth. Detailed monthly projections are in the appendix.

7.7 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5531, Auto and Home Supply Stores, are shown for comparison.