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.
|Real Estate Purchase||$120,000|
|Research and Development||$1,000|
|Total Start-up Expenses||$813,450|
|Other Current Assets||$189,500|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$178,000|
|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 and Liabilities||$4,364,550|
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.