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SIC 7538 Automotive Repair, Services and Parking - General automotive repair shops

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Auto Repair Service Business Plan

Quick and Dirty Auto Repair

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Company Summary

Quick and Dirty Auto Repair is a new start-up incorporated business managed by four partners. Three of the four partners represent sales/management, and one focuses on the finance/administration section of the business.

The economic growth of the last several years has resulted in increased disposable income. Many people have chosen to spend part of their increased income on their automobiles. As a result, the need for reliable and convenient auto services has substantially risen as well. QDAR will position itself to capitalize on the growing need of the middle and upper class market for quality auto service in the Portland metropolitan area. The company will be privately owned by four co-owners, with most of the additional funding coming from a ten year SBA loan.

2.1 Company Ownership

QDAR is incorporated in the state of Oregon. It is privately owned by Jake Braques, Blair Horne, Hyugo Ford and Gaz Môder. To attract additional financing, the owners may consider taking QDAR public several years down the road.

2.2 Start-up Summary

Each of the four co-owners will invest an equal amount. The remainder of the required financing will come from a ten year Small Business Administration (SBA) loan and a short-term loan. The following chart and tables show projected initial start-up costs for QDAR.

Start-up
Requirements
Start-up Expenses
Legal $3,000
Other $2,000
Total Start-up Expenses $5,000
Start-up Assets
Cash Required $100,000
Start-up Inventory $50,000
Other Current Assets $50,000
Long-term Assets $350,000
Total Assets $550,000
Total Requirements $555,000
Start-up Funding
Start-up Expenses to Fund $5,000
Start-up Assets to Fund $550,000
Total Funding Required $555,000
Assets
Non-cash Assets from Start-up $450,000
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $550,000
Liabilities and Capital
Liabilities
Current Borrowing $55,000
Long-term Liabilities $250,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $305,000
Capital
Planned Investment
Jake Brakes $62,500
Blair Horn $62,500
Yugo Ford $62,500
Gaz Motor $62,500
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($5,000)
Total Capital $245,000
Total Capital and Liabilities $550,000
Total Funding $555,000
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Start-up
Requirements
Start-up Expenses
Legal $3,000
Other $2,000
Total Start-up Expenses $5,000
Start-up Assets
Cash Required $100,000
Start-up Inventory $50,000
Other Current Assets $50,000
Long-term Assets $350,000
Total Assets $550,000
Total Requirements $555,000
Start-up Funding
Start-up Expenses to Fund $5,000
Start-up Assets to Fund $550,000
Total Funding Required $555,000
Assets
Non-cash Assets from Start-up $450,000
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $550,000
Liabilities and Capital
Liabilities
Current Borrowing $55,000
Long-term Liabilities $250,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $305,000
Capital
Planned Investment
Jake Brakes $62,500
Blair Horn $62,500
Yugo Ford $62,500
Gaz Motor $62,500
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($5,000)
Total Capital $245,000
Total Capital and Liabilities $550,000
Total Funding $555,000