CARS Final Bus Plan 062306

Cars.anstechno.com Strategic Business Plan 5809-a t riangle drive Raleigh nc 27617 919341-4710 Ahmed Elsa yed June 2006 CONFIDENTIAL INFORMA TION The CARS.ANSTechno.com Strategic Business Plan is intended for use on a confidential basis only. The use of the plan document for purposes other than the review of the company’s proposed structure, operations and performance might involve serious legal consequences. This plan contains information that is proprietary and confidential to CARS.ANSTechno.com. This obligation of confidentiality shall apply until such time that CARS.ANSTechno.com makes the information contained in this Business Plan available to the public, if ever. With receipt of this plan, recipient acknowledges and agrees that: In the event the recipient does not wish to pursue this matter, this document will be returned to the address listed above as soon as possible. The recipient will not copy, fax, reproduce, divulge, or distribute this Plan, completely or in part, without the express written consent of CARS.ANSTechno.com. All of the information contained herein is to be treated as confidential material with no less care than that afforded to your own company’s confidential material. T ABLE OF CONTENTS Executive Summary…………………………………………………………….1 Mission Statement……………………………………………...........................3 Business Description……………………………………………………………4 Market Strategies……………………………………………………………….6 Competitive Analysis……………………………………………………….…..11 Design and Development Plan……………………………................................14 Operation and Management Plan……………………………………………….17 Pro Forma and Historical Financial Data……………………............................22 Executive summary CARS.ANSTechno.com (hereinafter referred to as CARS) is a division of ANS Technologies, Inc. located in Raleigh, North Carolina. CARS opened in August 2005 as a fullservice automobile sales and service station specializing in pre-owned, high quality import vehicles. CARS was formed by Ahmed Elsayed in response to the market’s need for a better used car buying experience, as well as growth opportunities in the foreign and domestic auto repair industry. CARS mission is to provide a selection of affordable cars to a nationwide customer base, and provide service, repair, and detailing at a competitive price while exhibiting unparalleled customer service. CARS objective is to make each new sales opportunity into a lifetime customer relationship. The company has been extremely successful thus far in generating positive customer response. CARS location is in the expanding Brier Creek area of Raleigh and it is directly off of a busy thoroughfare. For this reason, CARS customers have described it as: “The Dealership That’s Hard to Find, but Worth the Time!” CARS is a startup venture that has unlimited opportunity for expansion within its market. Innovative advertising tactics to draw the pre-owned vehicle consumer, combined with internet sales and repair contracts from market competitors who lack on-site service facilities positions CARS to increase its profits quickly while establishing brand recognition within the region. CARS has proven its ability to compete within its market. Sales have increased steadily over time and are continuing to flourish. CARS had its best month on record in May 2006, grossing over $100,000 in vehicle sales alone. Important financial features are highlighted below: Gross Vehicle Sales $180,000 $160,000 Dollar Amount $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Month-Year -1- Executive summary To implement the expansion strategies detailed within this plan, CARS is seeking loans and investments from banks and individuals in order to overcome challenges it faces such as asset liquidity, limited visibility, and efficiency issues resulting from insufficient equipment. Working capital of $200K is needed in order to surmount challenges associated with operating a start-up company using limited resources. Funding will be used to: • Purchase repair and towing equipment. • Purchase business signage to increase visibility and walk-in traffic. • Finance a billboard advertising campaign on the Hwy. 70/Glenwood Ave. thoroughfare. • Provide cash security needed to increase inventory. Under present conditions, CARS is able to turn over inventory and labor relatively quickly and costeffectively. However, increased funding would easily solve CARS existing cash flow issues and pave the way for growth explosion and a highly satisfactory rate of return for its investors. Due to its relatively low overhead and steadily increasing profit, management is confident that CARS receivables are sufficient to cover expenses resulting from any credit or business note generated on its behalf. Financial data indicating CARS present financial situation is located in the table below. 2006 Sales, Expenses, & Profit $170,000 $150,000 $130,000 $110,000 $90,000 $70,000 $50,000 $30,000 $10,000 -$10,000 Dollar Amount Jan-06 Total Sales Feb-06 Mar-06 Month Apr-06 May-06 Total Expenses -2- Total Profit Mission st tement a To provide high quality, affordable luxury import vehicles and foster client loyalty by offering convenience and competitive pricing with our sales and through our reliable and expert service staff. -3- Business description Management Credentials Mr. Elsayed has an extensive sales and management background as a result of an eight-year position with Honeywell International. During his time with Honeywell, Mr. Elsayed gained experience in developing marketing plans to support growth and reach financial objectives. He succeeded in doubling sales for his division between 2002 and 2003, which generated over $34 million in high profile accounts. In addition to his results-based approach to marketing, Mr. Elsayed possesses managerial skills which motivate and empower employees to set goals and achieve them. As Product Market Manager for Honeywell, his responsibilities included coordinating and training Security Monitoring Technicians within a multi-state territory. Mr. Elsayed’s management background has honed his ability to delegate tasks and utilize time/cost efficient staffing techniques. Competitive Edge CARS will secure its position in the auto sales and service industry by catering to the pre-owned vehicle consumer who is in need of an affordable luxury import vehicle with price point $10K-$16K. We will also cater to the reliable import buyer with the same approach but slightly lower price point, $3K - $13K. By maintaining a selection of reliable vehicles to fit every budget, we attract both cash buyers and clients in need of financing. We are able to secure financing for those who have been denied credit by our competitors by sustaining existing relationships with several sub-prime lenders. This existing customer base will augment our business by providing a built-in market suitable for cross-selling service and repair products. CARS will offer preferred pricing for services to existing customers, as well as competitive pricing for new clients who require maintenance and repair for domestic and import vehicles. CARS will suit the car buyer who requires convenience, reliability, and affordable pricing, and will set itself apart from its competitors by supporting the vehicles it sells with continued service after the sale. To supplement labor income to CARS, relationships with other local luxury import dealers seeking to outsource maintenance and repair of their inventory will be aggressively pursued. This unique approach will allow us to gain rapport with our competitors, analyze market trends, and foster mutually beneficial networking opportunities. CARS will expand its market by means of the internet. We provide manufacturer direct auto parts for purchase through our website to generate revenue and labor business from local internet buyers. Our relationships with Autotrader.com, CARS.com, MSN motors, eBay Motors, Yahoo!, CARFAX, and others enables us to reach a nationwide market of potential buyers. -4- Business description CARS is seeking funding in the form of loans and investments from banks and private individuals or corporations in order to expand its foothold in the market by means of advertising campaigns and increased vehicle selection. Investment or loan capital will also be used to purchase an additional hydraulic lift for the garage to speed repair turnover, and to purchase towing apparatus for efficient transport of new inventory. Funding received will facilitate expansion while allowing flexibility regarding the cash flow needs of a growing business. CARS is able to maintain its inventory with access to over $300K in floor plan financing relationships with companies such as Manheim, AFC, and DCS. With adequate cash resources, CARS will be able to utilize its available floor plan credit fully to supply maximum inventory while satisfying its liquid asset requirements. At present, ANS is constrained by the need to cover expenses while waiting for accounts receivable to generate liquid assets. Inventory turnover is adequate to meet current sales goals, but despite the generally brisk movement of supply from the lot, any vehicle that fails to sell by the end of the floor plan term becomes a liability for ANS’s limited cash assets. Implementing the market and product development strategies outlined herein will eliminate existing limitations and increase profits generated from sales and service. Optimal development and expansion can be achieved with an investment or loan of $200K. CARS will attract the savvy financier who seeks a competitive return on their investment with minimal risk. Prospective lenders will discern the limitless growth potential due to CARS unique market presence, as well as the success it has achieved since its inception. -5- Market st ra tegies CARS geographic location defines our market within the Raleigh Metropolitan area. Nearby cities Durham and Chapel Hill supply a portion of our market, as well as smaller local towns and cities. According to recent census information, Raleigh-Durham is the largest metropolitan area within North Carolina, with a population of approximately 1.1 million people. The population continues to grow as a result of an influx of professionals and skilled laborers seeking employment opportunities in the RTP area as well as with many local colleges and universities. The area is generally suburban, and travel for the majority of people is by means of private transportation. The area currently lacks adequate, safe public transportation, which requires the majority of the population to own a car or other vehicle to commute to work or school. This market trend creates ample sales potential. According to statistics, used car sales have increased recently in Central North Carolina as a result of high fuel costs pressing the auto consumer to get the most cost-effective vehicle that meets their needs. Pre-owned cars are an attractive alternative since the overall cost of the car is much lower than new cars. CARS is located within the Brier Creek area of Raleigh, which has experienced exponential growth as a result of its luxury homes and ample shopping. The average Brier Creek homeowner has a median income of $100,000/year, which provides a target market for our luxury pre-owned selection. Many residents of Raleigh/Durham area own luxury import vehicles, however, service stations that have the capability sell parts and repair them at a low cost are scant. This demographic provides ample growth prospects, and will serve as the target market for the luxury import sales and service facets of CARS. The internet provides a wealth of potential buyers. CARS strong internet presence and highly developed website increases visibility for our products and services. Parts selection available on the internet makes CARS the only local option for the online German import auto parts consumer. In addition to the public pre-owned sales market, CARS intends to capitalize on its competitors’ lack of on-site service facilities. There are approximately five pre-owned car lots within CARS general vicinity, and contracting repair business they are forced to outsource stands to profit the service portion of CARS bottom line. Total aggregate pre-owned vehicle sales among our competitors (independent dealers) are estimated to be $20 million per year. Total service, detailing, and maintenance revenue among independent facilities in the area is approximately $10 million yearly. This provides an educated estimate of CARS total potential market. As a result of CARS prime location near the Hwy 70/Glenwood Avenue corridor, it is estimated that billboard advertising coupled with highly visible business signage would increase brand recognition and market share very effectively. This area is heavily traveled and known for its array of automotive vendors, thus, CARS target market of pre-owned auto consumers and automotive repair patrons will be made aware of the products and services available to them. This business plan will attempt to project market share over a three-year period. The value of effective signage has been proven in various case studies. According to the Small Business Administration, signs have a significant and positive impact on both the annual sales revenues and number of annual customer transactions. Studies indicate the following: -6- Market st ra tegies • • On average, one additional on-premise sign resulted in an increase in annual sales revenues of 4.75%. This translates to a $23,750 increase in average sales revenues for a typical store in the study group with annual sales of $500,000. The addition of new signage to previously unsigned buildings, and the replacement of existing signage (generally, with larger signs) resulted in an average revenue increase of 5%.* Because of the heavily traveled nature of CARS nearest thoroughfare, it is expected that installation of a lighted cabinet sign will generate a spike in walk-in traffic. Appropriate and effective signage will include an LED display to advertise featured vehicles in CARS inventory. Combining totals based on industry growth and conversion of users from competitors, CARS intends to increase its market share gradually over a three-year period to garner 5% of the total pre-owned sales market during the first year of strategic implementation, 10% during the second year, and 20% its third year. Current sales for CARS first year in business show that it is well on its way to reaching the $500,000 mark in revenue from sales alone. This figure represents approximately 2.5% of the total market for pre-owned vehicle sales. Based on current market conditions, doubling CARS sales revenue each year after implementing the strategies outlined herein seems to be a goal that is well within reach. Combining totals based on industry growth and conversion of users from competitors, CARS intends to triple its market share for automotive repair and maintenance gradually over a three-year period to acquire 7% of the total automotive repair and maintenance market during the first year of strategic implementation,15% during the second year, and 25% its third year. Revenue generated by CARS repair and maintenance facilities show that within its first year in business, it stands to bring in approximately $250,000. This figure represents approximately 2.5% of the total market for vehicle repair and maintenance. Industry conditions indicate that rapid growth in the repair market is possible, and tripling the current years’ repair and maintenance revenue is achievable within these time constraints, given the aggressive advertising CARS seeks to implement to the general automotive consumer and tactics it will employ to gain vendor contracts from other independent dealers. CARS positioning strategy is based on the motivations and requirements of its target market and the strengths and weaknesses of its competitors. In general, the local pre-owned vehicle industry is saturated with independent lots which cater to a specific type of auto consumer. On one extreme, lots such as Olde Raleigh Motors and Ultimate Imports target the more affluent buyer, and their pricing strategy shows their inventory at price points ranging from $20K-$50K. Research indicates that their typical customer is motivated by the image that a luxury or exotic car projects, and they will purchase the vehicle as long as it is available with the specifics they are looking for and that it is within their price range. *The California Electric Sign Association (CESA), the International Sign Association (ISA), the Sign User Council of California, and the Business Identity Council of America sponsored the study. A summary of the findings appears in The Economic Value of On-Premise Signage, a compendium of signage-related research results and articles (e.g., sign amortization; copyright and trademark protection.) The booklet was published jointly in 1997 by CESA and ISA. -7- Market st ra tegies Both Olde Raleigh Motors and Ultimate Imports are highly visible from Hwy. 70/Glenwood Avenue, and their location is beneficial to the turnover of their inventory. On the other extreme, dealers such as Driven Automotive and Victoria Auto Sales target the pre-owned buyer who seeks a vehicle at a price point of $5K$7K. This attracts cash buyers and consumers who may not have been able to receive financing from other car lots. The average customer of these lots is looking for affordability and financing options and may be willing to sacrifice quality and service to own transportation. Driven Automotive is less visible from major thoroughfares, which decreases walk-in sales. Victoria Auto Sales is visible from Hwy. 70, but its appearance does little to attract customers. CARS intends to position itself to gain its market share by representing the middle ground between these two extremes. CARS will secure its position in the auto sales and service industry by catering to the client who is in need of an affordable luxury import vehicle with price point $8K-$16K. We will also cater to the reliable import buyer with the same approach but slightly lower price point, $4K - $13K. By maintaining a selection of reliable vehicles to fit every budget, we attract both cash buyers and clients in need of financing. We are able to secure financing for those who have been denied credit by our competitors by sustaining existing relationships with several sub-prime lenders. This existing customer base will augment our business by providing a built-in market suitable for cross-selling our service and repair products. We will offer preferred pricing of our services to existing customers, as well as competitive pricing for new clients who require maintenance and repair for domestic and import vehicles. This strategy fulfills the auto consumers need for selection, affordability, convenience, and excellent customer service. Because of its low overhead, CARS will be prepared to offer a luxury vehicle comparable to the selection found at more upscale independent lots at a price that will be difficult for competitors to match. In addition to this, CARS provides the convenience of “one-stop shopping” for all automotive needs. This benefit makes CARS unparalleled in its level of convenience and cost-effectiveness. CARS will price its products and services competitively while covering costs. By attending many statewide dealer auctions on a weekly basis, CARS is able to acquire its inventory at wholesale to allow for maximum profit. Service and repair prices for the general public will reflect a small discount margin as compared to industry standards while covering costs, and preferred pricing for returning customers will cover costs while ensuring their loyalty. By taking advantage of our competitors’ lack of service facilities, CARS positions itself to create downstream revenue generated from their labor needs. Our internet presence distinguishes us from other preowned dealers, provides a broad market for our products, and offers potential buyers convenience of aroundthe-clock access to our inventory. High quality merchandise, convenience, and dedication to service after the sale are the competitive edge CARS has that will enable it to satisfy customers and profit investors. -8- Market St ra tegies Promotion Plan CARS will support itself by means of focused advertising. We reserve advertising space with local magazines such as Auto Mart and Auto Trader on a monthly basis. . Our relationships with internet advertisers such as Autotrader.com, CARS.com, MSN motors, eBay Motors, Yahoo!, CARFAX, and others enables us to reach a nationwide market of potential buyers. By advertising in college publications such as The Daily Tarheel and the Technician, we will keep our advertising costs low while reaching our target market. Once sufficient working capital has been secured, CARS will take advantage of its prime location in the busy Hwy. 70/Glenwood Avenue thoroughfare by means of a billboard campaign. This will increase foot traffic to our lot and establish our brand within the market. While generating new business with effectively placed advertising, we intend to nurture existing client business by means of direct mail promotion. A follow-up letter will thank the client for their business and encourage them to return by offering valuable coupons with discounts on services. First-class customer service by our knowledgeable sales staff ensures positive exposure through word-of-mouth referrals, which has proven invaluable in establishing a foothold within our market. CARS will budget $36,000 per year for advertising costs. Official Company Logo Official Company Service Mark CARS.ANSTECHNO.COM Brand recognition will be supplemented by placing vanity plates including CARS official company logo on each car sold. This policy will be implemented upon receipt of additional capital. -9- Market St ra tegies Proposed Sign Prototype -10- Competitive anal ysis CARS will implement and develop its business strategy in accordance with the strengths and weaknesses of its market competitors. Competitors are identified as used car vendors within the Raleigh area, especially those located on or near the Hwy. 70/Glenwood Avenue corridor. Primary competitors are identified as: • Olde Raleigh Motors • Ultimate Imports • Driven Automotive • Victoria Auto Sales • CarMax Olde Raleigh Motors STRENGTHS • Location---spacious corner lot allows maximum visibility • Selection---wide array of inventory attracts consumers • Reputation---established and recognized by a large number of people WEAKNESSES • Overhead---rent and utilities are high because of size and location • Pricing---inventory is sold near retail value, inflexible because of high overhead and lack of financing alternatives • Convenience---no service facilities means they can’t stand behind their product • Management---General Manager is not in the best health, can’t fulfill job duties Ultimate Imports STRENGTHS • Location---highly visible from the highway • Selection---many vehicles at varying price points • Customer Service---small operation allows for hands-on client experience WEAKNESSES • Reputation---relatively new in the industry, not established • Financing---lack resources to supply financing to most consumers • Convenience---no service facilities means the customer has to go somewhere else if the vehicle they purchased needs service -11- Competitive Anal ysis Driven Automotive STRENGTHS • Financing---“Guaranteed Financing” attracts the sub-prime consumer • Customer Service---consultative approach puts the consumer at ease • Pricing---most of their inventory is priced to move and they can afford to be flexible with prices WEAKNESSES • Visibility---out of the way location decreases the amount of potential buyers • Selection---minimal inventory of below average cars • Customer Service---shorthanded on staffing increases likelihood that customers will not be assisted in a timely manner • Convenience---no on-site service facilities Victoria Auto Sales STRENGTHS • Visibility---high-traffic area increases potential buyers • Pricing---vehicle selection is priced below market value • Selection---have a lot of inventory on their lot • Overhead---rent below market value WEAKNESSES • • • • • Appearance---looks run-down, may turn some potential buyers off Quality---vehicles are mostly older models domestic, possibly salvage vehicles Reputation---relatively new to the area and not established Convenience---do not have on-site service facilities Promotion---no advertising or internet presence -12- Competitive anal ysis CarMax STRENGTHS • • • Selection---every imaginable make, model, and color is in one location Reputation---they inspect their cars thoroughly and offer only the best cars, trusted by consumers Promotion---large corporations can afford to advertise on television and radio WEAKNESSES • Pricing---inventory sold at retail value, very inflexible • Customer Service---customer experience is not as intimate and consultative as with a smaller dealership CARS business strategy is based on capitalizing on the weaknesses of its competitors. As its prime selling point, CARS offers the convenience of sales, service, and maintenance in one location. Secondly, CARS can be flexible in its pricing because its low overhead makes it difficult for other vendors to beat its prices. Although its location reduces visibility, this can be counteracted by signs and billboards which inform and direct potential clients to the lot. CARS also will be successful because of the outstanding customer service and dedication it provides, and relationships with many sub-prime finance companies ensures that most interested buyers will qualify for credit to purchase their vehicle of choice. CARS will be able to compete in the market because of the quality and selection of its inventory. Finally, CARS will be a leader in its market because of the broad array of services it will provide to a nationwide customer base that is reached by means of the internet. CARS will be successful within its market because it has a product or service for everyone ---even its competitors! -13- Design and development plan Product Development The product development goal of CARS is to maintain an inventory of high quality vehicles that are offered at a competitive price. To complete this objective, the Director of Sales and Marketing will attend statewide dealer auctions to locate suitable products. Vehicles are selected based on criteria such as CARFAX history, reliability based on historical data, resale value, and sales trends of specific makes and models. In general, CARS will select vehicles with actual miles under 100K to remain in compliance with the lending requirements of its financiers. Prior to attending an auction, research is compiled using the auction’s run list to determine which cars meet customer demand and CARS standards for vehicle selection. This information will be reviewed weekly in a meeting between the Director of Sales and Marketing and the Service Manager prior to selecting the vehicle for purchase to evaluate historical data regarding sales trends and customer demand. Based on market conditions, Manheim Market Reports, floor plan balance, and the company’s cash flow at that particular time, the Service Manager and Director of Sales and Marketing will arrive at a maximum bid for the vehicle to achieve optimal profit margin. The profit generated by each vehicle is directly tied to its overall condition. Cars considered for purchase at auction must require minimal investment in parts and labor to achieve maximum retail value. Market analysis and sales trends indicate that optimal profit for CARS is achieved with historically reliable import vehicles (i.e., BMW, Audi, Volkswagen, Honda, Toyota, Nissan) that have minor cosmetic flaws or slight mechanical issues that are easily and inexpensively repaired. Vehicles with these characteristics generally sell for a lower auction price, allowing maximum use of floor plan resources. Once the vehicle is inspected thoroughly for major mechanical issues and found to be in good condition, the purchase is made using dealer floor plan. End stage of product development involves repair and reconditioning of newly acquired inventory. The vehicle is inspected by the Senior Mechanic who determines the services required to bring the car to its prime condition by following a 100-point checklist. Maintenance and any minor to moderate necessary repairs are made by the Junior Mechanic who then performs a state inspection for the vehicle. The vehicle is then re-inspected by the Senior Mechanic who certifies the vehicle. In cases that we cannot service the vehicle in-house, labor is outsourced to independent vendors with whom we have established relationships. Independent vendors provide services such as painting, body repair, and interior reconditioning. -14- Design and development plan Organizational Development Organizational development goals for CARS will primarily consist of gaining expertise within the industry in order to reach product and market development goals. The Director of Sales and Marketing, Service Manager, and Senior Automotive Technician will hold weekly business meetings on Wednesday evenings to discuss, compile, and analyze sales trends and vehicle popularity. Information will be gathered from customers to determine which advertising is reaching the intended target market. Information will be compiled and analyzed to determine which vehicles have been successful in the marketplace to produce optimal profit margin so these specific vehicles may be restocked at the following weeks’ auction. The Senior Automotive Technician will provide input regarding efficiency standards and set an estimated time frame for the completion of the week’s service and repair labor. It will be the Senior Automotive Technician’s duty to provide information to the Director of Sales and Marketing regarding availability and usage of supplies needed to execute labor and maintenance functions so that inventory can be recorded and budgeted properly. -15- Design and development plan Opportunity and Risk Assessment The management staff of CARS wishes to identify and minimize risks related to the design and development of the company, as well as demonstrate its ability to overcome these potential threats with effective and proactive administration. CARS is a young company with many opportunities to succeed and expand. However, one of its threats is the vast amount of competition it faces to obtain and keep its portion of the market share. Its proximity to used car superstores such as CarMax increase the level of competition since their widely recognized brand name attracts many consumers strictly because of the reputation and selection they are able to maintain. Even though these competitors may divert some potential buyers, careful marketing strategies will help to capitalize on the weaknesses that used car superstores display, especially in regards to pricing. Since CarMax strictly maintains its “no haggle” policy, they frequently sell inventory at or above market value, CARS feels confident that as long as consumers are made aware of the availability of a comparable car at a lower price, they will continue to choose to buy with CARS. Another risk for CARS is its lack of visibility from major highways and thoroughfares. Many of its competitors are highly visible and able to attract more business to their lots. Relocation is not currently a viable option. However, marketing strategies are in place to increase visibility by placing some of CARS more desirable inventory nearer to thoroughfares and implementing a billboard and signage campaign to direct consumers to the business. Also as a result of its problematic location, the small size of the lot means that CARS could potentially outgrow its facilities before relocation can take place. This could constrain the expansion of inventory and the efficiency of the repair and maintenance division. To counteract the size of the lot, inventory can be placed on display lifts to maximize space and showcase the vehicles. There is also storage space in the building that could potentially be used to store excess inventory. Historically, CARS has been able to move inventory quickly, and this should prevent any overcrowding of vehicles. As regards the repair facilities, CARS currently has only one mechanic’s lift in its garage. Upon receipt of sufficient capital, management has plans to purchase another lift to accommodate the influx of repair business it expects to receive. Effective staffing techniques can be implemented to schedule automotive technicians in staggered shifts to achieve maximum efficiency. Another potential threat to CARS is the rising popularity of hybrid and alternative fuel vehicles. These types of vehicles are generally only available at new car dealers. In preparation for customer demand for these types of vehicles, CARS management attends many statewide auctions and would most likely be able to obtain this type of car for its inventory. Hybrid cars are indeed available to used car dealers, and in fact, CARS has obtained a hybrid car and was able to sell it quickly because of the competitive price it was able to offer the customer in comparison to the price of a new hybrid model. -16- Opera tions and Management plan Organizational Structure Director of Sales and Marketing This position entails the following responsibilities: • Supervise customer relations and service. • Research products and determine which vehicles will be selected for inventory. • Oversee operating expenses and ensure adherence to budget constraints. • Administer compensation to employees and vendors. • Implement time and cost effective scheduling techniques to ensure completion of tasks in a timely manner. • Work closely with the Service Manager and Senior Automotive Technician to maximize time and resources and expedite the completion of repair and maintenance tasks. • Compile and analyze sales data. • Work closely with the Service Manager to ensure all of the customers’ needs have been met. • Facilitate business meetings on a weekly basis. • Manage staffing and human resources. • Oversee advertising and promotion. Ahmed Elsayed is the current Director of Sales and Marketing. Yearly compensation is $75,000, not including sales commission. Service Manager This position entails the following responsibilities: • Field customer phone calls and emails. • Answer customers’ questions regarding vehicles’ specifications and prices. • Maintain accurate financial records and invoices and make deposits into company accounts. • Supervise Sales and Service Representatives daily tasks. • Facilitate communication between staff and management. • Maintain the lead board showing appointments with customers and which Sales and Service Representative they are assigned to, ensuring proper distribution of sales commissions. • Receive incoming parts and equipment shipments. • File title information and other related paperwork for each vehicle in inventory. • Accurately compile sales trend data to be presented in weekly meetings. • Submit information to state agencies such as DMV to receive tags, plates, etc. • Supervise schedule adherence by Sales and Service Representatives. David Knox holds the title of Service Manager at CARS. Yearly compensation is $55,000, not including sales commission. -17- Opera tions and Management plan Senior Automotive Technician This position requires ASE Certification. Job responsibilities include: • Diagnose and repair any issues pertaining to vehicle operation. • Delegate labor-intensive tasks to Junior Automotive Technician. • Ensure completion of general inventory maintenance. • Order auto parts necessary to complete repair tasks. • Communicate effectively with customers and vendors to ensure their satisfaction with repair and maintenance service. • Identify cross-sell opportunities and additional services while repairing or maintaining customer vehicles. • Supervise activity within the facilities area to ensure compliance with safety regulations. • Maintain the order and cleanliness of garage facilities. • Oversee and assist Junior Automotive Technician. • Properly log repairs in the schedule for each day. • Determine the services necessary to recondition new inventory. • Outsource labor of inventory that cannot be repaired in-house. Charles Walton is the current Senior Automotive Technician at CARS. Compensation is $35/hour per car. Junior Automotive Technician This position requires ASE Certification. Job responsibilities include: • Diagnose and repair any issues pertaining to vehicle operation. • Ensure inventory is state inspected and in compliance with all regulations. • Work closely with Senior Automotive Technician to complete services efficiently. • Communicate effectively with customers and vendors to ensure their satisfaction with repair and maintenance services. • Remain in compliance with all safety regulations. • Travel to auctions as necessary to provide consultation to the Director of Sales and Marketing. • Identify cross-sell opportunities for additional services while repairing or maintaining customer vehicles. • Work closely with vendors who service CARS inventory. Eric Cotten is the current Junior Automotive Technician. Compensation is $15/hour per car. -18- Opera tions and management plan Sales and Service Representative This position entails the following responsibilities: • Answer incoming telephone calls and capture the customer’s interest with your description of the vehicle. • Reply to email inquiries regarding vehicle availability. • Schedule appointments with customers to view and test drive vehicles. • Collect customer Driver License and Insurance information prior to test drive. • Respond to questions the customer may have about the products. • Work closely with Director of Sales and Marketing to develop effective sales techniques. • Maintain paperwork for each vehicle in inventory. • Assist as needed with general vehicle maintenance. • Make sure vehicles are locked and windows are up before leaving at night. • Make sure common areas are clean and orderly before leaving at night. Melisa Lemmons and Hasan Roomi are the Sales and Service Representatives at CARS. Yearly compensation is $15,000, not including sales commission. Detailing Manager This position entails the following responsibilities: • Recondition new inventory to prepare it for customer viewing. • Study the latest techniques in detailing to keep up with customer demand. • Thoroughly clean the interior of the vehicle to remove any odors or stains that may exist. • Wash, compound, and buff vehicles to a “like-new” appearance. • Buff headlight covers to eliminate “foggy” appearance. • Photograph each inventory vehicle upon completion of detailing so it can be included in advertising. • Place disposable floor mats in vehicles after shampooing and vacuuming upholstery. • Work closely with outside vendors to make repairs to interior leather or exterior paint. • Place pricing stickers on inventory for customer viewing. • Work closely with the Senior Automotive Technician to schedule use of garage facilities. • Maintain careful records of customer detailing appointments and log them in the schedule book. • Oversee quality assurance of inventory concerning vehicle appearance. Omar Hijab is the Detailing Manager at CARS. Compensation is $75 per car. At present, these personnel satisfy the labor requirements for CARS. Total labor expenses budget yearly totals approximately $300,000. -19- Opera tions and management plan Capital Requirements Table The following table illustrates the amount of money needed to purchase equipment used to carry out daily operations. Alocation of Funds Street Sign, $15,000, 7% Tire Machine, $10,000, 5% Tire Balancer, $15,000, 8% 2nd Auto Lift, $3,500, 2% Heavy Duty Truck, $15,000, 8% 4 Car Trailer, $20,000, 9% Lathe Machine, $5,000, 3% Bearing Press, $1,000, 1% Working Capital, $115,500, 57% -20- -21- -23- CARS.ANSTECHNO.COM RALEIGH’S PREMIER PRE-OWNED DEALERSHIP