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"4 Wheels" - Automobile Repair & Maintenance
"4 Wheels" - Automobile Repair & Maintenance
"4 Wheels" - Automobile Repair & Maintenance
Maintenance
Business Plan
American University of Science and Technology
Spring 2018/2019
Prepared by: Ali Tahtah Date: May 29, 2019
Introduction
Environmental Analysis
Financial Plan
Introduction
Mission Statement
• Build CRM
• Product Positioning
Tactical Goals
Strategic
• Expand Geographically
• Stretch Service-line
Objectives
1 2 3 4
To create brand To maintain To analyze data Staff Training and
awareness through service positioning and to improve Development in
intensive in the minds of the performance to
marketing efforts, customers in the live up with the yearly basis
and intensive ads. first year. customers’
expectations.
The Specific
Audience
Key Key
Business Business
Partners Resources
The Value
Proposition
Environmental Analysis - Internal
One of a kind services. Automobile service sector provides opportunities for growth.
Highly Qualified Mechanics. Yearly increase of the number of cars imported to Lebanon.
Large geographical distribution of the service. Decrease the cost for the customer in case his car was broke in a far
Weaknesses Threats
Lack of trust from our target audience, because they didn’t try
I would like to
I would like to know
know; 20.00%
I do not know;
I do not know
18.33%
Not Expensive;
Not Expensive
28.33%
Expensive;
Expensive
33.33%
Land $467,797.00
Positioning Marketing
Mix
• BMW friends, BMW club, and FaF techno Psychographic
group,
• Regular/Occasional
Behavioral
• Beirut city to Tyre City
Geographic
• Age: Above 18 Years
Demographic
Segmentation
Positioning
In the case of “4 Wheels”, different competitive
Additional
Services
Benefits
Target Market Size
According to (BankMed), despite political uncertainty and economic
slowdown,
the automobile sector in Lebanon experienced a remarkable growth in 2015.
Furthermore, as a latest study, the number of road motor vehicles per 1000
inhabitants in Lebanon resulted in a ratio of 58.2%. As a conclusion, the
target
market size is acceptable, and is experiencing a growth (BankMed).
Target Market Size
Number of
Number of Cars Ratio
Citizens
different repairs that will be shown in the following table in term of sales
and
proportion.
Financial Study - Sales
Sales
Year % 2019 C 2020 F 2021 F 2022 F 2023 F
Growth Rate N/A E 1.05 1.05 1.05 1.05
Type of Repair N/A AP AP AP AP AP
Repairs Using Hand Tools Only 62% $912,001 $957,601 $1,005,481 $1,055,755 $1,108,542
Maintenance and Light Repair 32% $1,638,071 $1,719,974 $1,805,973 $1,896,271 $1,991,085
Automobile Service Technology 4% $588,387 $617,807 $648,697 $681,132 $715,189
Gross
$2,176,833 $2,285,675 $2,399,959 $2,519,957 $2,645,955 $2,778,252 $2,917,165
Profit
Net
$524,224 $594,140 $660,202 $724,379 $785,761 $850,337 $918,273
Earnings
Liquidity Ratio
In the case of “4 Wheels”, the cost of debt is equal to the annual interest of
the loan which is 5.9%, and the cost of equity is equal to the cost of debt and
the Lebanese country risk premium which equal to 13.51%. The weight of
debt
is equal to the amount of debt over the start-up cost equaling 65% and the
weight of equity equal to 35%. Thus, the WACC equal to 10%.
Free Cash Flow to Firm
Year 2019 C 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F
Net Income $524,224 $594,140 $660,202 $724,379 $785,761 $850,337 $918,273
Dep. Expense $247,556 $247,556 $247,556 $247,556 $247,556 $247,556 $247,556
Fin Cost AT $80,931.83 $73,206.63 $62,808.75 $51,780.53 $40,083.76 $27,677.91 $14,519.99
CAPEX - 0 0 0 0 0 0
NWC Change - ($16,399) ($95,132) $67,258 $41,633 ($8,043) $194,887
FCF $852,712 $898,504 $875,435 $1,090,974 $1,115,034 $1,117,528 $1,375,236
NPV is positive for the first six IRR is greater than the WACC
years.
organizational values and philosophies first agreed upon and implement them
in their daily routine business days. This will imprint an ongoing positive image