A Sample Alloy Wheel Repair Business Plan Template
Starting your own wheel repair business? Here is a complete sample alloy wheel repair business plan template you can use for FREE.
1. Industry Overview
Alloy wheels are wheels that are made from an alloy of aluminum or magnesium. Alloys are mixtures of metal and other elements. Even though they can be damaged or corroded, they usually provide greater strength over pure metals which are usually much softer and more ductile. The truth is that allow wheels give cars the outward beauty that a luxury car needs.
The alloy wheel repair business is a subset of the car customization and modification industry and this line of business accommodates highly skilled auto mechanics who have what it takes to give their customers what they expect.
Alloy wheel repair garages engage in wheel repair services that range from mobile wheel refurbishments to more comprehensive repairs consisting of full strip down, welding, straightening, painting, powder coating and diamond cutting.
The alloy wheel repair business is indeed a growing and profitable business. Statistics has it that household customers account for the largest share of the alloy wheel repair business revenue at approximately 76 percent. Alloy wheel repair household customers are broadly defined as consumers that have a driver’s license, own a car, and are older than 16 years of age.
This demographic is further segmented by income brackets, with households in the highest division representing the greatest demand for alloy wheel repair services.
Business customers contribute 22 percent of industry revenue. Revenue from this segment is largely derived from celebrity managers. Slower economic activity during the recession led to fewer businesses, however a resumption of economic growth since 2010 has seen this segment strengthen. Government customers comprise approximately 2 percent of the alloy wheel repair/car customization and modification revenue.
The car customization and modification industry that alloy wheel repair line of business is a part of will continue to experience growth in all parts of the world especially in developed countries such as the United States of America, Canada, United Kingdom, Germany, Australia, and Italy et al. As a matter of fact, there are no companies with a leading market share in the industry.
Statistics has it that in the United States of America alone, there are about 61,332 licensed and registered car customization and modification businesses (alloy wheel repair businesses inclusive) responsible for employing about 194,594 employees and the industry rakes in a whooping sum of $9bn annually with an annual growth rate projected at 2.7 percent.
Over and above, mobile alloy wheel repair businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.
2. Executive Summary
Glamour Band® Alloy Wheel Repair Services, LLC is a US-based mobile alloy wheel repair company that will operate from Los Angeles – California in a centrally positioned garage. Although we are known as a mobile alloy wheel repair company, we will also operate from a standard garage facility so our clients can freely bring in their alloy wheels for repair and refurbishment.
At Glamour Band® Alloy Wheel Repair Services, LLC, we are well trained and equipped so we always use the best materials to offer alloy wheel services that range from mobile wheel refurbishment to more comprehensive repairs consisting of full strip-down, welding, straightening, painting, powder coating, and diamond cutting.
Our mobile team is specialized in the refurbishment of curbed, chipped, scuffed, discolored, and corroded alloy wheels. Although our intention of starting a Glamour Band® Alloy Wheel Repair Services, LLC is to offer only the above-stated services, we will not close our doors to diversification as long as it does not affect our core services.
We have ten alloy wheel technicians in fully equipped mobile workshops, and our state of the art workshop containing the latest modern equipment needed for the job at hand, including a state of the art CNC LATHE for diamond cutting. Our alloy wheel repair service will bring the alloy wheels of all our clients back to new at low cost. We offer a fully mobile service which means that your wheels are repaired at a time and at a place convenient to you.
At Glamour Band® Alloy Wheel Repair Services, LLC we are passionate in the pursuit of excellence with uncompromising services which is why we have decided to start our own alloy wheel repair services business. We are quite optimistic that our values and quality of service offering will help us drive our alloy wheel repair business to enviable heights and also help us attract the number of clients that will make the business highly profitable.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from both government agencies and transport and haulage giants.
Glamour Band® Alloy Wheel Repair Services, LLC is a well-equipped company that is ready to service main dealers, private clients, body shops, insurance companies, lease and fleet companies, and auction houses. Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. Glamour Band® Alloy Wheel Repair Services, LLC is owned and managed by Teddy Brown, Ian Roberts, and Emerson Sam. They a combined experience of over 25 years in the alloy wheel repair/car customization and modification industry.
3. Our Products and Services
Glitz Band® Alloy Wheel Repair Services, LLC is a well–equipped alloy wheel repair business that offers a wide range of services that revolves around the alloy wheel repair/car customization and modification industry. We intend to give our customers every reason to always choose our services over our competitors which is why we have customized our services to fit into their taste and budget without comprising the excellence we are known for.
Glamour Band® Alloy Wheel Repair Services, LLC will offer services such as;
- Mobile alloy wheel refurbishment
- Alloy Wheel Repair (comprehensive repair services including straightening and welding.)
- Painting & Powder Coating (For light refurbishment or just if you fancy a change of color, we can completely strip the old lacquer and apply new paint or powder coating in the color of your choice.)
- Diamond Cutting (Diamond cutting involves removing a thin layer from the surface of the wheel using our CNC lathe)
4. Our Mission and Vision Statement
- Our Vision is to become the ‘go to’ alloy wheel repair company in the whole of Los Angeles – California.
- Our mission as an alloy wheel repair company is to develop a profitable business which provides quality services in our community and to become the standard for an ideal alloy wheel repair business not only in Los Angeles – California, but also throughout the United States of America.
Our Business Structure
It is a known fact that the success of any business lies in the foundation on which the business is built on which is why we have decided to build our mobile alloy wheel repair company on the right business foundation. We want to build a business of dedicated workforce that will ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot. The success of our alloy wheel repair business will be anchored on the team not on any individual.
With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional mobile alloy wheel repair business. Glamour Band® Alloy Wheel Repair Services, LLC will employ professionals to occupy the following position;
- Manager (Owner)
- Marketing and Sales Executive
- Client Service Executive
- Alloy Wheel Repair Technicians (10)
- Truck/Van Driver
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys, and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes, and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents Glamour Band® Alloy Wheel Repair Services, LLC in strategic meetings
- Helps to increase sales and growth for Glamour Band® Alloy Wheel Repair Services, LLC.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides management with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risk analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Glamour Band® Alloy Wheel Repair Services, LLC
- Serve as an internal auditor for Glamour Band® Alloy Wheel Repair Services, LLC.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
Alloy Wheel Repair Technicians (10):
- Responsible for handling mobile alloy wheel refurbishment
- Responsible for handling alloy Wheel Repair (comprehensive repair services including straightening and welding.)
- Responsible for handling painting & Powder Coating
- Responsible for handling diamond cutting
- Handle any other duty as assigned by the manager.
- Responsible for transporting equipment, supplies and workers to project site
- Runs errand for the organization
- Handles any other duty as assigned by the manager
6. SWOT Analysis
Our plan of starting our mobile alloy wheel repair business covering clients within Los Angeles – California is to test run the business for a period of three to six years to know if we will invest more money, expand the business and then open other outlets in California.
We are quite aware that there are several alloy wheel repair shops all over Los Angeles – California and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Glamour Band® Alloy Wheel Repair Services, LLC employed the services of an expert HR and Business Analyst with bias in the auto industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals. This is the summary of the SWOT analysis that was conducted for Glamour Band® Alloy Wheel Repair Services, LLC;
Glamour Band® Alloy Wheel Repair Services, LLC is centrally located in a densely populated industrial estate in Los Angeles – California; our location is in fact one of our major strengths. Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered experts in the alloy wheel repair industry, a team of hardworking and dedicated individuals.
Glamour Band® Alloy Wheel Repair Services, LLC is a new business and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also aware that it will take time for us to build trust with our clients.
We are centrally located in one of the busiest areas in Los Angeles and we are open to all the available opportunities that the city has to offer. Our business concept also positions us to be a one stop shop in the alloy wheel repair line of business.
The truth is that there are no standard alloy wheel repair businesses within the area where ours is going to be located; the closest alloy wheel repair company to our proposed location is about 4 miles away. In a nutshell, we do not have any direct competition within our target market area.
The threats that are likely going to confront Glamour Band® Alloy Wheel Repair Services, LLC are unfavorable government policies, seasonal fluctuations, demographic/social factors, the downturn in the economy which is likely going to affect consumer spending, and of course the emergence of new competitors within the same location where ours is located.
7. Market Analysis
- Market Trends
The truth is that the market for alloy wheel repair services is driven by the purchase of cars with alloy wheels and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will buy cars with alloy wheels and more people will patronize the services of mobile alloy wheel repair workshops.
Come to think of it, mobile alloy wheel repair business responds to the increase in household spending and also increase in the volume of cars with alloy wheels in a particular area or city. Another notable trend common with alloy wheel repair businesses is that most alloy wheel repair services, in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
A good number of alloy wheel repair companies includes car customization and modification, body repair services, painting services, glass replacement and repair, upholstery and interior repair, merchandise sales detailing services and body conversions. It is much easier for mobile alloy wheel repair companies to increase their revenue by diversifying as against increasing the scope of their market.
8. Our Target Market
As a business that is set to become one of the leaders in the industry, we conducted our feasibility studies and market survey and we were able to identify those that will benefit greatly from our service offerings.
Essentially those that will benefit from our service offering are households, transport companies, taxi rental companies and government agencies et al. Below is a list of the people and organizations that our mobile alloy wheel repair services are designed for;
- The public sector; government ministries, agencies and parastatals with fleet of official cars with alloy wheels.
- Corporate Executives
- Business People
- Car Dealership Shops
- Households with cars that have alloy wheels
- Taxi and car rental company
- Transport Companies
Our competitive advantage
Top on the list when it comes to the competitive advantages that we will be bringing to the table are our membership of an industry organization, provision of superior service and of course our ability to keep direct repair programs.
Mobile alloy wheel repair business is an easy to set up business that does not require formal training to achieve. It means that the possibility of mobile alloy wheel shops springing up in the location where ours is located is high. We aware of this which is why we decided to come up with a business concept that will position us to become the market leader in Los Angeles – California.
We can confidently say that the location of our mobile alloy wheel repair business will definitely count as a positive for us amongst any competitor. For the time being, Glamour Band® Alloy Wheel Repair Services, LLC has no real competitors that can compete with the quality of services we offer.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy that we are going to adopt at Glamour Band® Alloy Wheel Repair Services, LLC is going to be driven basically by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like mobile alloy wheel repair services.
Glamour Band® Alloy Wheel Repair Services, LLC is a business that is strategically located and we are going to maximize the opportunities that is available which is why we spent more to site the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of Glamour Band® Alloy Wheel Repair Services, LLC.
Our goal is to grow Glamour Band® Alloy Wheel Repair Services, LLC to become the leading mobile alloy wheel repair company in Los Angeles – California which is why we have mapped out a strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the industry.
Glamour Band® Alloy Wheel Repair Services, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our mobile alloy wheel repair business by sending introductory letters alongside our brochure to corporate organizations, car dealership shops, taxi and car rental companies, transport and logistics companies, households and key stake holders in and around Los Angeles – California
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our mobile alloy wheel repair services company in relevant automobile magazines, newspapers, TV and radio stations.
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
Sources of Income
Glamour Band® Alloy Wheel Repair Services, LLC is established with the aim of maximizing profits in the alloy wheel repair/car customization and modification industry and we are going to go all the way out to ensure that we do all it takes to attract clients on a regular basis.
Glamour Band® Alloy Wheel Repair Services, LLC will generate income by offering the following services:
- Mobile alloy wheel refurbishment
- Alloy Wheel Repair (comprehensive repair services including straightening and welding.)
- Painting & Powder Coating
- Diamond Cutting
We are also open to generate income from other related services as long as it falls within the scope of the industry we are operating in.
10. Sales Forecast
One thing is certain, there would always be corporate organizations and individual clients who own cars with alloy wheels who would need the services of mobile alloy wheel repair.
We are well positioned to take on the available market in Los Angeles – California and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow our business and our clientele base.
We have been able to examine the alloy wheel repair market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – California.
- First Fiscal Year: 225,000
- Second Fiscal Year: $480,000
- Third Fiscal Year: $740,000
N.B: This projection was done based on what is obtainable in the alloy wheel repair / car customization and modification industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Glitz Band® Alloy Wheel Repair Services, LLC is set to create a standard for the alloy wheel repair business in Los Angeles – California and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise or promote a mobile alloy wheel repair business. The only challenge is that most mobile alloy wheel repair companies do not have the required money to pump into publicity and advertising.
Here are the platforms we intend leveraging on to promote and advertise Glamour Band® Alloy Wheel Repair Services, LLC;
- Encourage our loyal customers to help us use word of mouth mode of advertisement (referrals)
- Advertise our mobile alloy wheel repair business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations in and around Los Angeles – California
- Direct coupon mailing approach
- Engage in roadshows from time to time in target communities
- Distribute our fliers and handbills in target areas
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the alloy wheel repair industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Los Angeles – California.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our services will be the same as what is obtainable in the open market throughout the United States.
- Payment Options
The payment policy adopted by Glamour Band® Alloy Wheel Repair Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Glamour Band® Alloy Wheel Repair Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients to make payments for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
We have been able to pull cash that will be enough for us to successfully launch a standard mobile alloy wheel repair company in Los Angeles – California, US. These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software, and Payroll Software – $3,000
- Cost for leasing standard warehouse facility- $80,000.
- Cost for facility remodeling – $10,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost for mobile alloy wheel repair equipment and toolbox- $15,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephones, TVs, Credit card machines, POS, tables, and chairs et al) – $4,000.
- The cost of launching a website – $600
- Cost for the purchase of utility truck – $15,000
- The cost for our grand opening part – $1,500
- Miscellaneous – $10,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (180,000) U.S. dollars to successfully set up a medium scale but standard mobile alloy wheel repair company with over 10 employees in the United States of America.
Generating Startup For Glamour Band® Alloy Wheel Repair Services, LLC
Glamour Band® Alloy Wheel Repair Services, LLC is a partnership business that will be owned and managed by Teddy Brown, Ian Roberts and Emerson Sam. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank
N.B: We have been able to generate about $80,000 (Personal savings $70,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Glamour Band® Alloy Wheel Repair Services, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are prepared to survive on a lower profit margin for a while.
Glamour Band® Alloy Wheel Repair Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed mobile alloy wheel repair equipment and toolbox, electronic appliances, office appliances: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress