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Business Plan For:: Auto Body, Mechanical and Electrical Repairs and Servicing

This business plan proposes opening an auto repair shop in Dire Dawa, Ethiopia that offers body work, mechanical, electrical repairs, and welding services for vehicles and machinery. An investment of 1.5 million birr is requested to purchase land, equipment, and cover startup costs. The business expects to earn 700,000 birr in revenue and 500,000 birr in profit in the first year, increasing to 1.2 million birr in revenue and profit in subsequent years. Services will be offered at lower prices than competitors while maintaining quality work. The goal is to train local technicians and create jobs.

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Eyob
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763 views

Business Plan For:: Auto Body, Mechanical and Electrical Repairs and Servicing

This business plan proposes opening an auto repair shop in Dire Dawa, Ethiopia that offers body work, mechanical, electrical repairs, and welding services for vehicles and machinery. An investment of 1.5 million birr is requested to purchase land, equipment, and cover startup costs. The business expects to earn 700,000 birr in revenue and 500,000 birr in profit in the first year, increasing to 1.2 million birr in revenue and profit in subsequent years. Services will be offered at lower prices than competitors while maintaining quality work. The goal is to train local technicians and create jobs.

Uploaded by

Eyob
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS PLAN FOR:


AUTO BODY, MECHANICAL AND
ELECTRICAL REPAIRS AND SERVICING
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CONTENTS PAGE
1. EXECUTIVE SUMMARY ………………………………………………01
2. PRODUCTS AND SERVICES…………………………………………..02
3. VISION…………………………………………………………………….02
4. MISSION…………………………………………………………………..02
5. OBJECTIVES……………………………………………………………..03
5.1 Pre-launch……………………………………………………………...03
5.2 Launch…………………………………………………………………03
6. MARKETING…………………………………………………………….03
6.1 Payment term………………………………………………………….03
6.2 Competitive environment……………………………………………..03
6.3 Promotion……………………………………………………………...03
7. PERSONNEL……………………………………………………………..04
8. PREMISES AND OPERATIONS……………………………………….04
8.1 Location and premises………………………………………………...04
8.2 Hours and capacity……………………………………………………04
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1. EXCUTIVE SUMMARY:

 Purpose:
This document sets out eyob hailemariam’s proposal to open an integrated
auto body, mechanical and electrical including welding center in dire dawa. The principle
purpose is to provide information to the dire dawa government to enable them to provide
guidance and consider eyob hailemariam’s request for land to build onto bring the business to
fruition.
 Land requirements:
If approved, it is anticipated land of 400 square meters will be allocated in kebele 03

 Investment:
Funds in the region of 1.5 million birr will be invested in buildings,
equipment, other start-up costs, and working capital.
 Benefits:

 Shareholders’ investment in center will benefit the local economy utilizing state of the
art technology to deliver effective services to local people and organization.
 Provide a platform to create employment for local people.
 Apprenticeship/trainee scheme administrated by well-trained engineers and
experienced technicians to train local people as engineers.
 Our technicians and mechanics already well-trained and experienced, possesses the
knowledge, skills and experience to ensure the business in dire dawa is sustainable
and profitable.
 To provide reliable, cost-effective maintenance.
 To increase customer satisfaction by work quality.
 Taxes on profits generated will benefit government investment.

 Financial forecasts:
In the first year of trading the business anticipated in the region of 700
thousand birr and net profit of 500 thousand birr increasing to 1.2 million birr and 1.2 million
birr net profit in year.
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THE BUSINESS:
The business, headed by eyob hailemariam supported by a team of 10 staff,
will provide auto-body, electrical and mechanical repairs, servicing and ‘modern test’
inspection for all makes and models of vehicles, dump trucks and machineries and also
welding. Other services include ‘fast tire’ change, control customers vehicles PMS.
The centre proposes to offer generally lower prices than comparable local
garages. The center underlying approach to marketing is developing relationship with
customers particularly those in preferential-customer segments (government, companies,
public sector).
This approach will ensure the center benefits from repeat business and
recommendation arising from an excellent reputation.

2. PRODUCTS AND SERVICES:


The business will provide auto-body, electrical, and mechanical repairs,
servicing and ‘modern test’ inspections for all makes and models of vehicles, dump trucks
and machineries.
The work is concerned with the mechanical, electrical and body components
of vehicles, dump trucks and machineries and also welding.
For all business activities the center will utilize the latest equipment meeting
European standards. Example
 Roller brake tester
 Emission analyzers
 Wheel-alignment equipment
 Computer diagnostic tools
 Fuel injection pump tester
 Wheel balancer
The center will also provide other services including ‘fast-tires’ change, wheel balance,
well-scheduled control of customers vehicles PMS with overhaul inspection.

3. VISION:
The centre’s vision is to expand the business.
4. MISSION:
Providing fast, cost-effective, reliable services locally.
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5. OBJECTIVES:

5.1 Pre-launch:
 Consult with the regional government
 Prepared detailed project plan
 Construct premises
 Install equipment
5.2 Launch:
 Implement marketing plan
 Deliver customer services
 Implement the apprenticeship scheme

6. MARKETING:
The center will follow a rational approach to marketing thus developing relationship with
and repeat business from, customers. The underlying approach (rational marketing) to ensure
integrated vehicle service and repair center benefits from repeat business and
recommendation arising from an excellent reputation.
Customers include the dire dawa community and companies around dire dawa.
6.1 Payment terms:
Credit may be given to companies.
6.2 Competitive environment:
The vehicle repairs and servicing market in dire dawa fragmented and relatively mature
thus there are many garages and individuals competing in the marketplace.
However, competitors not providing integrated services for auto-body, electrical and
mechanical repairs, and also not provide to all types of vehicles and machineries.
And also all garages not maintain with guidance of manuals and not give guarantees for
the customers. And thus local competitors are not utilizing special tools and test machines.
Our center provides customers with reliable estimates and cost saving and accurately
pinpoint faults. So in our center business’s ability to pinpoint faults the center will boast a
unique selling proposition: DON’T PAY IF WE CANNOT SOLVE THE PROBLEM.

6.3 Promotion:
Repeat business and recommendation will be important source of new sales.
 Advertising on radio
 Distribute leaflets and posters
 Opening to the public the center will host an open day
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7. PERSONNEL:
No JOB TITLE NUMBER OF STAFF
1 Auto-mechanical repair staff
2 Auto-electrician staff
3 Auto-body repair staff
4 Welder
5 Tyre man
6 Receptionist

8. PREMISES AND OPERATIONS:

8.1 Location and premises:


The business is likely to be situated in dire dawa kebele 03.
The premises, to be purpose-built, will consist of four main areas reception; body shop;
garage and storage. Each of those maintenance areas will be able to work on 3-5 cars,
respectively. Design of the premises will allow for expansion in the future.
8.2 Hours and capacity:
The center will operate 6 days per week for 9 hours/day and Sunday for 5 hours. Hours
can be extended when necessary.

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