Simplified Model

Business Plan
 TM
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Marketing Plan

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 Marketing Plan, p.1 TM
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1. Description of the Product

- Auto repair services
2. Product Comparison with Competitor
- We use modern tools and equipment
- Our mechanics are certified master mechanics
- Our service guarantee is maximum 24 hours
3. Location
- 255 Naranja St., Tabaco City, Albay, behind the
Public Market
4. Market Area
- The whole of Tabaco City, Albay and
surrounding districts
5. Main Customers
- Private car owners
- Public utility owners and operators

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 Marketing Plan, p.2 TM
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6. Total Demand
- According to research, 150 cars and vehicles need
autorepair every day.
7. Market Share
- There are ten active auto repair shops in my target
market area.
- I expect to capture 10% of the market share in my
first year
- This is equal to 15 cars / vehicles per day.
8. Selling Price
- According to survey, most competitors charge P300
per day
for labor.
- Turing’s Motorshop (TM) will charge only P250
per day.
9. Sales Forecast
- TM will be open for 24 days per month.
- TM expects to generate sales of about P3,750
per day or P90,000per month.

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 Marketing Plan, p.3 TM
10. Promotional Measures Motors
- TM will have a big signboard in front of the shop.
- Five other signboards will be placed in strategic
spots inTabaco City.
- Professionally designed brochures will be printed
and distributedto all public utility enterprises and
agencies.
11. Marketing Strategy
- TM services will be fast, low-priced and
professional.
- TM will charge P50 less than competitors.
- TM will provide “home services” to key accounts.
- TM will use personal and professional networking.
12. Marketing Budget
- TM expects to incur the following marketing
expenses:
- Signboards P25,000 (Life: 5 years. DC = 417/mo.)
- Materials P1,000 / month

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 TM
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Technical Plan
Technical Plan
(Production Plan)
(Production Plan)

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 TM
Technical Plan, p.1 Motors

1. Characteristics of my Service
- Auto repair services using modern tools and
equipment done
by certified master mechanics.
- Service is maximum 24 hours.

2. Number of Customers to Serve

- 15 cars / vehicles per day

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Technical Plan, p.2 TM
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3. Service Process
Step 1: Customer comes and makes contact.
Step 2: Receptionist interviews customer for specific complaint.
Step 3: Mechanic checks, inspects and diagnoses.
Step 4: Mechanic makes a report.
Step 5: TM makes a written proposal to customer with charges.
Step 6: Customer signs / approves proposal.
Step 7: TM fixes vehicle.
Step 8: Supervisor does quality control and verification.
Step 9: Customer checks and confirms vehicle’s repair.
Step 10: Customer pays.
Step 11: Customer takes vehicle.
Step 12: TM gives monitoring and control check with customer.

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Technical Plan, p.3 TM
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4. Fixed Capital
- Building (100 sq.m.) - P100,000
- 2 crocodile jack - P50,000
- Welder equipment - P25,000
- Various tools / equipment - P25,000
Total Fixed Capital - P200,000
5. Life of Fixed Capital
Purchase Price Life Depreciation Cost
P200,000 10 years P20,000 per year
P1,667 per month
6. Maintenance
- Part of job description of my 3 licensed mechanics is regular
preventive maintenance every month of all equipment and tools.
7. Sources of Equipment
- All equipment and tools are available in Bosch Co., Manila.
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 TM
Technical Plan, p.4 Motors
8. Planned Capacity
- TM can service 20 vehicles a day.
- For year 1, TM will service only 15 vehicles a day or
75%of capacity.
9. Future Capacity
- In year two, TM will service 20 vehicles a day or full capacity.
10. Terms and Conditions for Purchase of Equipment
- TM will pay for all tools and equipment on cash basis.
11. Shop Location and Layout
- The shop is built on a 500 sq.m. lot that Turing owns. It is a
corner lot, just behind the public market.
See map:
Naranja St.
TM
Public Market
Main Avenue
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 TM
Technical Plan, p.5 Motors
12. Supplies Needed
- Oxygen - 50 kg. / month
- Metal sheets - 5 sheets / month
- Welding rods - 100 pieces / month
- Various paints - 5 gallons / month
- Other supplies - P2,000 / month

13. Cost of Supplies

- Oxygen - P1,000 / month
- Metal sheets - P1,000 / month
- Welding rods - P1,000 / month
- Various paints - P1,000 / month
- Other supplies - P2,000 / month
Total - P6,000 / month
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 TM
Technical Plan, p.6 Motors
14. Supplies Availability
- All supplies are readily available in Tabaco City,
Albay.
- All supplies can be delivered to my shop on a
monthly basis by
Tabaco Auto Supplies Ltd. Delivery is free of
charge.
15. Labor
- Owner is master mechanic and office general
manager.
- 3 licensed mechanics
- 3 laborers
16. Cost of Labor
- 3 licensed mechanic- P8,000/m P24,000/m
- 3 laborers - P4,000/m P16,000/m
Total P40,000/m

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Technical Plan, p.7 TM
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17. Labor Availability
- The owner is a licensed trainer mechanic accredited
by TESDA.
- He himself trained his 3 mechanics. He can train
and accredit new mechanics in 6 months time.
- The laborers are readily available in Tabaco City.
18. Labor Productivity
- Owner will use human relations techniques to
motivate staff.
- Owner allots P1,000 a month to be given to
employees on basis of performance and customer
satisfaction.
19. Shop Cash Overhead Expenses
- Electricity - P 500/m
- Water - P 500 /m
- Refreshments - P1,200/m
- Bonus - P1,000/m
Total - P3,200/m

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 TM
Technical Plan, p.8 Motors

20. Technical Cost of Service

- Labor Cost - 40,000
- Supplies Cost - 6,000
- Cash Overhead Cost - 3,200
- Depreciation Cost - 1,667
________
Total 50,867

Technical Plan
Technical Plan

The End
The End
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 TM
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Organization and Management Plan

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 Organization and Management Plan, p.1
TM
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1. Name of Business
Turing Motorship

2. Name of Owner
Arturo (“Turing”) Bajaro

3. Address of Business
255 Naranja St., Tabaco City, Albay

4. Form of Business
Single Proprietorship owned
by Turing Bajaro.

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 Organization and Management Plan, p.2
TM
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5. Organizational Structure

GeneralManager
General Manager
(TuringBajaro)
(Turing Bajaro)

Assistant
Assistant
(tobe
(to behired)
hired)
33Mechanics
Mechanics
(tobe
(to behired)
hired)

33Helpers
Helpers
(tobe
(to behired)
hired)

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 Organization and Management Plan, p.3 TM
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Plantilla
Job
Name Position Description Salary

Turing Bajaro President 1. Policy making P12,000/mon.

2. Direction setting
3. General management
4. Train mechanics

Ann Santos Assistant 1. Act as receptionist P4,000/mon

2. Keep records
3. Do computer work

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Organization and Management Plan, p.4
TM
6. Business Experience and Qualifications of the Entrepreneur Motors
• Mr. Turing B is a licensed trainer-master mechanic, accredited by TESDA (Technical
Education and Skills Development Authority).
• He worked as mechanic of Makati Auto Repair Corp. for 5 years.
• He worked as Operations Manager of Bosch Co., Manila for 10 years.
• He is a graduate of CEFE Training in 2004.
7. Pre-operating Activities
- Business registration - 1 day
- Apply for loan and approval - 2 months
- Contact equipment suppliers - 1 week
- Build shop - 1 month
- Hire employees - 2 days
- Install equipment - 2 days
- Purchase supplies - 2 days
- Trial operation - 1 week

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 Organization and Management Plan, p.5
TM
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Gantt Chart (Pre-Operating Activities)

Pre-Operating Timetable (in weeks)

Activities 1 2 3 4 5 6 7 8 9
- Business registration
- Apply for loan and approval
- Contact equipment suppliers
- Build shop
- Hire employees
- Install equipment
- Purchase supplies
- Trial operation

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Organization and Management Plan, p.6
TM
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8. Pre-Operating Expenses
- Business registration 500
- Entertainment cost 1000
- Transportation cost 1000
- Trial Operation Electricity / Water 200
2,700
9. Office Equipment
Price Life Depreciation Cost
P2,000 10 years P200 per year or
P17 per month
10. Administrative Expenses
- Owner salary P12,000/m
- Office assistant salary P 4,000/m
- Office Supplies & communicationP 500/m
- Electricity P 500/m
Cash Admin Expenses P17,000/m
- Depreciation cost P 17/m
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P17,017/m
 TM
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Financial Plan

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Financial Plan, p.1
Total Project Cost (TPC)
TM
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Fixed Assets
Production 200,000
Marketing 25,000
Administrative 2,000
Total 227,000
Working Capital (1 month)
Supplies 6,000
Labor 40,000
Technical Cash Overhead 3,200
Marketing Expenses 1,000
Administrative Expenses 17,000
Total 67,200
Pre-Operating Expenses 2,700
Total Project Cost 296,900

Equity 152,900
Loan
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Debt-Equity Ratio 1 : 1.06
Financial Plan, p.3 TM
Profit and Loss Statement Motors
Month 1
Sales 90,000
Less: Cost of Service
Supplies 6,000
Labor 40,000
Technical Overhead 3,200
Depreciation cost 1,667
Total Cost of Service 50,867
Gross Profit 39,133
Less: Operating & Pre-Op Cost
Administrative Expenses 17,017
Marketing Expenses 1,417
Pre-Operating Expenses 2,700
Total Operating Cost 21,134
Operating Profit 17,999
Less: Interest 7,200
Profit before Tax 10,799
Less: Tax (30%) 3,240
Net Profit 7,559
 Executive Summary TM
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1. Brief Description of the Project

Turing’s Motorshop is a single proprietorship business engaged
in the servicing of vehicles. It is located at 255 Naranja, Tabaco
City, Albay. It will target all private and public utility vehicle
owners within the vicinity of Tabaco City. According to survey,
the target market is seeking more professional repair service and
maintenance of their vehicles.

The business is targeting 10% market share, and expects an

ROI of 30.6% and an ROE of 59.3% in the first year of operation.
It can service 20 cars a day, but it will only operate at 75%
capacity in the first year.

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 TM
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2. Brief Profile of the Entrepreneurs
Turing Bajaro, the owner of Turing’s Motorshop,
is a master mechanic who has been in the occupation
of auto and heavy equipment servicing for the past
fifteen years. He is a graduate of APEX Training in 2005
3. Project’s Contribution to the
Local Economy
Turing’s Motorshop will provide employment
to at least 7 persons. It will pay taxes to the city
government. It will make available modern auto
repair services using the latest technology in vehicle
Maintenanc.

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