Retail Dealership Proposal

Capital, Investment, Strategy and Organization

Steve Wolf
 Project Name: Dealer Proposal

Description

1. Purpose
What will we be doing?

 Outline the capital raising and allocation of funds.

 Layout business proposal and strategy.
 Find a physical location for a place of business, which includes a show room / lot.
 Identify the sources of information for business strategy.
 Identify the supply chain model for wholesale and retail inventory.
 Enable identification of activities to produce, review and execute the proposal.
 Define the people or skills required to produce and accomplish our plan.

2. Capital and Start-Up Costs

 We estimate that we will need to raise $200,000 to start this venture. Below is a breakdown
 The Initial Fund allocation is based off of a six-month start-up Period.

Marketing, $8,000 Cost Bond, $2,500

Employees, $7,500 Insurance, $3,500

Company Startup
Costs, $5,000
Utilities, $2,500
Lot /
Office, $46,000
Inventory, $125k

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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 Project Name: Dealer Proposal

3. Monthly Operational Costs

Below is an allocation schedule of the monthly operational costs

Cost
Debt, $2,000

Bond, $210
Insurance, $300

Marketing, $1,400
Lot /
Office, $7,650

Employees, $1,250

Misc, $300
Utilities, $450

Monthly Total Costs - $14,560

4. Profit Allocation
Here is how this distribution of income will work

Monthly Profit Allocation

Loans
against
business
Income 15%
10% Inventory
50%
Operating / Taxes
10%

Reserve
5%
Advertising Employees
5% 5%

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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 Project Name: Dealer Proposal

5. Cash Projections
 The initial cash injection should bring in about 15-25 Cars worth of inventory.
 We estimate that each car bought and sold will generate an average of $800 - $3000 per
unit. This is not including money that can be made from brokered financing and seller carry-
back financing which could prove to be a very low-risk and substantial return on investment.
 Based on an estimate of 12 cars sold per month, this should bring in about $9,500 - $16,000
per month net profit or $115,000 – $192,000 in the first year and more each year after.
 Based on this model @ an extremely low estimate of selling and average of about 12 cars
per month, we will be able to pay-off all loans against the business about 7.4 years (using
15% of net profit towards loan re-payment).
 NOTE**** The money allocated to pay off the debt is based on 15% total company income,
meaning that if we double or even triple our numbers, all loans to the business can be
satisfied in as little as 2 years.
 A more aggressive loan re-payment model can and will be arranged at the end of each fiscal
year.

6. Strategy
Our model is based to start and work in a down economy. With that being said, we understand that
there is a lot of competition in our industry. Our competitive edge that makes us unique from any
other dealer is the automotive sales industry is our ties to our wholesale buyers.

Our partners have been in the wholesale car business for over 30 + years. This allows us to operate
with the least amount of risk because we have the closest thing to a guaranteed “saleable” inventory
that any start-up or even 90% of our existing competition will not have access too.

This allows us to operate using a formula that has been proven to work time and time again
delivering a sizable return on investment and longevity of the business.

Acquiring vehicles, and doing the “re-con” work on them is where you make or lose money. The skill
set in becoming an expert on this and the relationships that need to be built in order to keep your
bottom line low is what makes or breaks dealerships and will take any person or dealership trying to
break in to the industry years to build.

“Re-con” work is defined as the work that any vehicle needs before it ready fro retail sale. This is
included but not limited to mechanical work, preparing cars for smog tests, replacing equipment like
tires, brakes, lights etc. and any necessary body work that the vehicle needs.

Our industry contacts allow us to continuously have a profitable flow of inventory, the most
important part of making this a successful venture.

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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 Project Name: Dealer Proposal

7. Timeline / Timing
This proposal is financially based for the first initial 6 months of operating expenses.
2011/12 Timeline

November 11 – January 2012

 Finalize Proposal
 Finalize investors, partners and active board members.
 Acquire all pre-licensing
 Collect initial round of capital funding.
 Design Website, Company Logo, File Articles of Incorporation, and Open Bank accounts.
 Complete all licensing requirements.

January 2012 – March 2012

 Collect first round or total capital funding
 Sign Lease on property / Storefront
 Acquire inventory
 Hire Employees
 Upgrade ascetics of the property.
 Open For Business MARCH 1st or APRIL 1st

March 2012 – January 2013

 File tax returns
 Re-Assess business costs, profits etc.
 Re-Allocate Money accordingly.

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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 Project Name: Dealer Proposal

8. Department Layout

Auto Body /
Car Buying
Repair

Invantory Wholesale Buying

Managment and Selling

Lot Attendant
Loan Officer
Financing Managment
Processor
Sales
Managment
Sales Team
Sales Men
Book Keeping
Dealerhip

Accounting Budgeting

Pay Roll

Website

Internet
Marketing

Marketing
Social Media
Department

Design

Events

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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 Project Name: Dealer Proposal

10. Document Distribution

Name Role

Steve Wolf Partner, Operations

Cody Mullenaux Partner, Advertising

Mark Irvine Consultant & Industry expert

Frances Johnson Partner, Investor

11. Approvals
Prepared By __________________________________

Steve Wolf

This document requires the following approvals

Approved By __________________________________

__________________________________

Approval Date __________________________________

Dealer Business Proposal 11/12/2011

Author: Steve Wolf Document Status: Pending / Proposal
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