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Environmental Engines

Company Summary

Environmental Engines Toyota Honda GM is an automobile dealership based in the Ann Arbor area. It is founded as a consumer-oriented and environmentally-friendly dealership, and is emphasizing consumer education to differentiate itself from less environmentally-concerned dealerships.

2.1 Start-up Summary

Environmental Engines Toyota Honda GM’s start-up costs will include dealership construction, all equipment needed for the office, legal costs, consulting costs, website creation, and advertising.

The inventory will be the largest chunk of start-up expenses. Start-up assets will include a mixed floor inventory of 10 hybrid and zero-emissions automobiles from Honda, Toyota, and GM. Construction costs will be second and will include a show room, three offices, fully-stocked mechanic’s garage, photovoltaic cells (charged by solar panels on the roof of the dealership), car wash, and automobile lot. The office equipment includes three computers, a fax machine, copier, four cellular phones, office supplies, additional land line, a DSL connection, and office furniture.

Start-up expenses will also include advertising. Four methods will be used: an interactive B-2-B website, the Yellow Pages, local newspapers, and direct marketing to local government, consumer-protection and environmental organizations.

Sbp, environmental car dealership business plan, company summary chart image

Start-up Expenses
Construction $320,000
Mechanic’s Equipment $1,500
Photovoltaic Cells $125,000
Legal $500
Stationery etc. $100
Brochures $1,000
Consultants $1,000
Insurance $1,200
Real Estate Purchase $120,000
Research and Development $1,000
Website creation $1,500
Office Equipment $500
DSL Installation $150
Advertising $180,000
Franchise Royalties $60,000
Total Start-up Expenses $813,450
Start-up Assets
Cash Required $3,610,050
Start-up Inventory $125,000
Other Current Assets $189,500
Long-term Assets $440,000
Total Assets $4,364,550
Total Requirements $5,178,000
Start-up Funding
Start-up Expenses to Fund $813,450
Start-up Assets to Fund $4,364,550
Total Funding Required $5,178,000
Non-cash Assets from Start-up $754,500
Cash Requirements from Start-up $3,610,050
Additional Cash Raised $0
Cash Balance on Starting Date $3,610,050
Total Assets $4,364,550
Liabilities and Capital
Current Borrowing $2,000,000
Long-term Liabilities $1,500,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $178,000
Total Liabilities $3,678,000
Planned Investment
Jack Anderson $1,000,000
Jim Handy $150,000
Frank Lee Good $350,000
Additional Investment Requirement $0
Total Planned Investment $1,500,000
Loss at Start-up (Start-up Expenses) ($813,450)
Total Capital $686,550
Total Capital and Liabilities $4,364,550
Total Funding $5,178,000

2.2 Company Ownership

Environmental Engines Toyota Honda GM is a privately-held Michigan corporation. Jack Anderson, Environmental Engines Toyota Honda GM’s founder, is the majority owner. Several members of the board of directors also hold minority stock positions.

Two of these are also vendors of outside services:

  • Jim Handy, public relations consultant.
  • Frank Lee Good, environmental and corporate attorney.