Sample Business Plan on Transmission Repair Shop Business Plan

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EXECUTIVE SUMMARY                                                             


The Business Concept


ABC Transmissions, LLC (ABC Transmissions or the Company) is an existing general auto repair business that specializes in the rebuilding, repair and installation of transmissions. The Company also rebuilds and repairs auto/truck rears. It is located in City, State.


ABC Transmissions provides honest work with clear transparency on its services. The Company offers its customers a choice in repairing their vehicles versus replacing them. Clients trust the Company’s repairs and service. ABC Transmissions has many satisfied and repeat customers who refer their friends and families to the business


Excellent Market Opportunity

ABC Transmissions will take advantage of several factors to drive its growth. The Company will leverage its existing excellent reputation and brand name to acquire additional customers. In today’s economic climate, more people are seeking to extend the life of their vehicles and so are more willing to spend the money for transmission repairs instead of simply trading the vehicle in.

Also, today’s automotive customer is leery of dealer repair shops because of their reputation for high prices and poor quality service. These factors play well into ABC Transmissions’s growth opportunities. With its long history of satisfied clients, expert repair knowledge and fair pricing policy, The Company should be able to easily achieved its goals.


Profitable Growth

ABC Transmissions expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars and the competitive landscape.





Projections call for the Company to generate revenues of $150,000 in its next twelve months. ABC Transmissions will achieve strong growth over the next several years, reaching $170,000 in revenues and more than $51,000 of operating income by the fifth year.


The Opportunity

Automobile Repair Market Trends


Today’s research reflects attitudes toward how the public views transportation is changing, especially currently owned older vehicles; instead of purchasing new automobiles and trucks, people are repairing what they already have, attempting to stretch precious dollars.


However, some in the market feel the world’s economic crisis looks more like “the perfect storm”. Conditions of rising employment, falling home prices, sky-high fuel prices, and unemployment at near record levels, leaves the automobile industry in a weakened state as new car and truck sales shrink, but the repair business booming.


Maaco President David Lapps, told the press, "It can make more financial sense to restore an older vehicle instead of having to worry about expensive monthly car payments. Many people have felt the effects of the economic downturn and are making changes in their buying habits so they can hold on to more of their money. When they compare the costs of buying a new car and restoring an old one, they see a big difference."


According to recent studies, American automobile shopping habits have shifted. One article released by the Associated Press claimed "the new behavior – fueled by higher gas and food prices, tightening credit and a slumping housing market – is the most dramatic and widespread that they have seen since the mid-1970s."






In another report, conducted by The Nielsen Company, a market research firm, two-thirds of Americans state, as a result of rising gas prices, they have cut spending, an 18 point increase since 2007.


Lapps added, "Vehicles are built much better and are lasting longer these days. Older vehicles are mechanically sound and just need a little body and paint work to restore the 'new car' feeling.” 1


Numerous auto repair specialists are reporting an increase in older vehicle repair, “rather than buying new wheels,” says Tony Natale, staff writer at East Valley Tribune in Phoenix, AZ. Executive director of Neighborhood Auto Repair Professionals Network, Alan Tarr, reported the 23 independently owned repair shops he currently represents in the Valley, “are all steadily increasing business”. Tarr said, "People are paying to keep their cars up and running rather than spending a lot of money on a new car.”


Gas consuming vehicle sales, especially larger engine pick-ups, and SUV’s, have steadily dropped across the country. Some dealership locations have experienced new vehicle sales declines of 25% or more.


Repairing Older Vehicles


According to Alan Tarr, “Cars being repaired at NARPRO shops are between four and 12 years old on average and have between 70,000 and 200,000 miles.


Repair instead of replace’ appears to be the new “mantra”. Many cars with higher mileage are being driven into repair shops for diagnostics and cosmetic upgrades. One 1990 Honda owner and customer of Maaco Collision Repair and Auto Painting garage said “It not only gets good gas mileage, but it's an emotional and economic issue. I've driven Shilo, that's my Honda's name, for 18 years and I don't want to spend a lot of money to replace her.”


Rather than spending “big bucks” on new cars with payments, consumers are touching up, detailing, and repairing what they currently own, it’s today’s market. Lapp agrees, "It's making more financial sense for consumers to repair older vehicles instead of purchasing new ones where they would have to worry about expensive monthly car payments.”

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