This is an auto parts store sample business plan for racing parts retailer SouthEast Racing Parts. This is a small business based in North Carolina, which aims to give high quality, personalized service to all its customers. By always striving to meet the customer's needs, SouthEast Racing Parts hopes to build a loyal customer base who will provide repeat business and word of mouth referrals. The company will also market itself through print advertising, press releases and race car sponsorship. The mission statement of SouthEast Racing Parts, as outlined in this auto parts store business plan, is to provide quality racing parts at an affordable price. The company hopes to achieve slow and steady growth, financed mostly through cash flow.
Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.
The Market Southeast Racing Parts will be participating in an exciting, growing market. Motorsports has seen explosive growth in the USA in the last decade. It is now the fastest-growing sport in the USA. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have "souped" up their cars but have yet to compete in organized events. Additionally, TV coverage for motorsports has increased dramatically helping fuel growth. Lastly, the Carolinas has experienced record population growth, 25% within the last decade making SRP's chosen location attractive.
The Organization Southeast Racing Parts is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, SRP will be working hard to ensure that all of their customer's expectations are exceeded in all transactions. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship.
Products, Services, and Delivery SRP will be both a brick and mortar company serving the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format. SRP will offer engine and chassis parts for a wide variety of cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer coil rating services as well as scaling services for race cars.
Financials Southeast Racing Parts will be profitable from month one. Margins are forecasted to be respectable. Year one sales will be exceptional with a steady growth rate for the first five years.
Southeast Racing Parts is an exciting opportunity that combines a customer-centric organization with an explosive industry. Motorsports is becoming increasingly popular in the United States with more and more people becoming active participants. Even for those who are not true participants, it is now "cool" to have your car "tweaked out" even just for aesthetics. An investment in Southeast Racing Parts is a high growth, reasonable risk opportunity.
To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.
To achieve a modest initial gross profit margin, increasing that by at least 1% per year until reaching our final target.
To sell a substantial amount of product the first year.
To maintain a solid growth rate per year for the first five years.
Southeast Racing Parts is dedicated to providing racing products that combine quality performance with value pricing. We wish to establish a successful partnership with our customers, our employees, and our suppliers that respects the interests and goals of each party.
Constantly striving to supply what the consumer is asking for, we will continually review what is available in the marketplace, and what isn't. Improving on what is available and providing new products and services to the areas of need will help ensure our success in a market driven by consumer demand.
Success will ultimately be measured by our customers choosing us because of their belief in our ability to meet or exceed their expectations of price, service, and selection.
1.3 Keys to Success
To succeed in this business, we must:
Be an active member of the racing community; i.e., attend functions at local race tracks, attend regional and national trade shows.
Deliver our products promptly.
Work with our customers on a personal level, as opposed to the "What's your customer number?" mentality of large mail order firms.
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