Tim the Mechanic Our Heroes Car Parts cars Tim's Story David's truck
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Tim the Mechanic Our Heroes Car Parts cars Tim's Story David's truck
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Business Financing Needed!!!
Tim the Mechanic
1211 E. 62nd Ave.
Denver, CO. 80216
Tim the Mechanic, LLC. Owners, Tim & Diane Branthoover. This business was a mobile auto repair business for 7 years with and continuingly growing business, until February, 2008, when they we able to lease a 3 bay commercially zoned repair shop in north Denver. It is presently fully operational. We are in need of financing to complete our shop. It has only a partially finished restroom that requires water supply installed, toilet, sink and water heater installed. Room is framed, toilet and sink drain is present; additional lighting needed; office supplies such as receipt books, filing cabinets, desk, computer software, office printer, computer. Need equipment for safe working conditions; adequate lift for raising cars, code approved fire extinguishers, shields for power tools, safety glasses. Shop presently has EPA approved waste oil furnace so heat source is not an issue. Further note that all labor will be done by qualified technicians contracted separate from this finance request so our only financial needs are materials.
Business Plan for Tim the Mechanic Automotive Specialist
Prepared by Tim Branthoover 1201 E. 62nd Ave. Denver, CO. 80216 Tim the Mechanic Auto Repair Table of Contents
Executive Summary 1. Legal Business Description 3 2. Mission Statement 3 3. Overview of Market 5 4. Market and Sales Strategy 8 5. Management Summary 9
Executive Summary Legal Business Description Diane and Timothy Branthoover own "Tim the Mechanic". This is a partnership whereas Diane retains 51% ownership. Tim retains the remaining 49%. The Mission Mr. and Mrs. Branthoover provide complete auto repair services for Denver metro area, . Our mission is to provide professional auto repair. Our goal is to put their vehicle back on the road safely and quickly: to save customers time and money with vehicle service and repairs. To establish a trusting relationship with the clients based on honesty, integrity and dependability. WE have one fully operational auto repair facility working with one additional mechanic a contract automatic transmission technician ready for business. It provides a service to an endless supply of automobiles and light to medium duty trucks. In 1 year, we intend to have a fully operational service facility with 4 full time mechanics. On its Internet web page it tries to promote quality service at a fair price, and most of all to put the customer first. This type of service to the customers was not learned in business school or read from a book. This company was built on customers who were sick and tired of the service, cost and treatment from other professional auto repair shops.
Present Situation Company Tim the Mechanic is a registered trade name. Tim & Diane started in January 2001, when Mr. Branthoover lost his job as a mechanic for a tree company. This led to the loss of their home, which led to living in a RV. Starting with business cards, automotive tools, a car and cell phone, the Branthoovers have gone from living in a camper to buying their own home in 3 ˝ years. They have an established clientele, though are unable to gain professional status due to the start-up cost involved. The web site, timthemechanic.com is a registered web domain. This business was not originally planned to be as successful as it has become, but the demand for their services makes becoming a full-time legitimate company necessary, with several hundred satisfied customers and more added daily. Customer referrals and business cards built this business, it sole advertisements. This company has outgrown the small backyard garage environment and has expanded to a 3 bay service facility with a contracted automatic transmission specialist on site, who also does top of the line computer diagnostics. Offering This company offers affordable auto repair, ranging from light repairs, computer diagnostics to engine and transmission replacements. They offer used engine/transmission replacements as an alternative to the cost of new. This lowers the final cost of auto repair by hundreds, even thousands of dollars. This company will do anything necessary to assure reliable and safe transportation for customers, usually cutting vehicle downtime from days down to hours. Market Environment The auto repair industry is overwhelming and well known. where Tim the Mechanic will be providing services. In 6 years, Tim the Mechanic has established a base clientele of over 500 customers, serviced and repaired well over 3,000. Pricing and Profitability Tim the Mechanic will price its services to be competitive with comparable businesses operating in the Denver/metro area. Although there is a lot competition in this field, the prices of local auto repair shops and dealerships will be used as a guide. $75.00 per hour, well below the average dealer cost of $100.00 per hour, yet high enough for a substantial profit. With 1 mechanic, the gross income would $165,000 a year; with 2 mechanics working full time, this shop would gross $330,000, that is 2 mechanics working 40 hours per week at 52 weeks a year. Customers
The market which Tim the Mechanic is tailoring itself to is anyone who owns a car in Denver/metro area of CO.; Tim the Mechanic provides diagnostic, estimate and repairs. Also provided is vehicle maintenance – oil change, lubes, etc. by trained professional mechanics. Also specializing in classic restoration. We will also pursue service work on company fleet vehicles.
Goals and Objectives The goal of Tim the Mechanic is provide low cost immediate professional repairs to all foreign and domestic cars and trucks. To provide replacement parts "at cost", meaning without traditional 50 to 100% markup as every auto repair shop is known to do as common practice. Within one year, this business plans to have 2 full time mechanics and a separate transmission service and rebuilding shop.
The Offering This company offers the following service to motorists in the Denver/metro area: 1. Classic restoration2. Computer diagnostics3. Fleet services for companies4. All major repairs – engine and transmission replacement.5. Flat repair, tire changes6. Phone estimates7. Electrical diagnostics and repairs8. Provide replacement part at cost, without markups9. tune-ups, brake repair and replacement10. Referrals to specialty shops Overview of Market
Target Market Tim the Mechanic is designed to meet the needs of motorists in the Denver metro area Population by County, 2002 Denver 564,324 Jefferson 539,115 Arapahoe 502,814 Adams 383,108 (Commerce City and Westminster) Boulder 302,211 Douglas 196,754 Denver Metro 2,488,326
Clientele will be business men and women, middle to low income families who cannot afford high cost dealership and auto repair shops; senior discounts welcome. This company will also target commercial businesses with small cars to medium duty trucks; To provide vehicle service (oil-changes, lubes, tune-ups), engine and transmission remove and replace
Total Market Auto Census data shows that there are over 5.5 million vehicles in target area and more added daily. As of 2000, Denver metro area census shows that 1,000,000 people commute to work daily. There are also 509 used car dealers this area Industry Analysis There are 869 General auto repair shops, 278 specialty auto repair businesses in the Denver metro area. US National Industry Profitability Averages show a net income of 13.2% of total revenue in a partnership in a general repair shop. Competitive Analysis Within Denver metro, All dealerships have $100.00 per hour rates, whereas ours is $75.00 per hour, plus parts. It is established that we do not mark up parts which further saves the customer. We guarantee all our work and our customers come first. Operations Location The present location of Tim the Mechanic is 1201 E. 62nd Av, Denver, CO. 80216. Facility
Tim the Mechanic is a 3 bay shop zoned for auto repair. 2 bays have large 12' remote control doors. Has 120 & 220 electrical outlet, Clean Burn waste oil furnace which burns waste oil from engines & transmissions. EPA approved. Has separate 15'x15' room used for servicing and rebuilding transmissions. Capitol Equipment Tim the Mechanic mobile auto repair will require additional equipment, tools and suitable service trucks. The Branthoovers have accumulated a variety of tools in their years of service: 1. All hand & basic automotive related air tools. 2. Basic computer diagnostics scan tools. 3. Auto electric & engine diagnostic. 4. Business cell phones. 5. Company vehicle. 6. 60 gallon commercial air compressor
Sources of Supply Denver, Colorado and surrounding communities make a population of 2.5 million people in this major metropolitan area. As such, the sources of supply for the business are plentiful and no problems are anticipated in securing the necessary tools and equipment, facility improvement building material. Tim the Mechanics needs. His present auto parts suppliers are: 1.Advance Auto Parts 4. Freedom Auto Recycling 2. Auto Zone. 5. Crusher Auto Parts 3. Napa Auto Parts 6. Commerce City Auto Parts,
These are just a few of the suppliers this company does business with. To list them all would take several pages. Availability of Labor As noted, Denver metro is large, well populated area. The Branthoovers have been in the automotive industry for several years and are acquainted with a number of professional mechanics. Further, presently contracting Joshua Martinez, a skilled technician and Fred West rebuilds transmission per contract in shop. . Marketing and Sales Strategy Tim the Mechanic has an established clientele of over 500 people, with service to well over 3,000 people in the last 7 years. Over10,000 business cards have been given out in over 7 years of business providing the same service. Each time Tim the Mechanic went on a service call, their work was displayed for all to see. Therefore, word of mouth has created a lot of business. Advertisement displayed inventively on shop ould also be a marketing tool, as well as having an ad in the local newspapers and yellow page directories. Tim the Mechanic has and will always strive to provide service based on honesty and integrity. Their web page, www.timthemechanic is another point of advertisement. It shows their insistence of quality work at affordable prices. It explains and shows how to avoid costly repairs and reports improper conduct of related businesses. More business is brought through referrals. The marketing objectives are: 1. Increase public awareness of the business 2. Use the leverage of existing professional contacts to establish new ones in order to gain the greatest number of referrals 3. Establish competitive pricing policies to attract clients 4. Utilize current, past and new clients as source of referrals Price Strategy As a new business, it is important that Tim the Mechanic keep their rates low by flat rate estimate to assure customer that they won’t be surprised by high bills: 1. Advertise the fact that they don’t add 50 to 100% markup on replacement parts – "they pay what we pay," though they will pay retail cost, not wholesale. 2. All labor performed is guaranteed, and that all parts purchased "new" come with factory warranty; offer such as the option of quality used replacement parts at a fraction of the price of new: 3. Show examples, such as new engine cost $5000.00: Quality tested, low mileage used engine from collision damaged car $950; used comes with most major components (carburetor, water pump, fuel injectors), new comes without any accessories, noting that one of the components could have been the cause of the original engine failure: that to replace these accessories separately would cost $1000’s, not to mention the hours spent in labor exchanging these components: 4. This strategy also helps business profits because Tim the Mechanic can install a used engine in 1 day, in driveways and parking lot, whereas downtime on new engine is 3-5 days: Offer free "check engine light" diagnosis – it only takes 5 minutes, the repairs are the actual labor costs. Promotional Strategy A variety of promotional strategies will be implemented to grow clientele. As a mechanic, Tim the Mechanic gets replacement parts from most parts stores in the Commerce City, Denver metro area, and used parts from most auto salvage yards. People buy parts, a good portion of them need someone to install them. These companies have and offer Tim the Mechanic business cards to their customers. www.timthemechanic.com, though in its infancy, presently lists referrals to local auto related companies and they provide referrals to Tim the Mechanic. Flyers are already posted in several communities. Tim the Mechanic’s mission is to instill a trust with the customer. The client needs to know that their car is fixed right the first time and at the best possible price. Years of experience in the auto field has shown that most people fear auto repair shops, because rarely do they avoid paying hundreds, even thousands, on what they feel is a relatively minor problem. Most shops use estimate computer software that incorrectly calculates the job hours, and automatically raises the replacement part price by 50-100%. By not over charging the customer, this company plans to keep present customer and also gain referrals. Management and Ownership Ownership Diane Branthoover owns 51%, the present company car & business. Tim Branthoover 49%, all business related tools. Management Responsibilities At present, Diane has office, marketing and business responsibilities; Tim has all shop, tools, equipment, and repair responsibilities. As the business grows, however, Mrs. Branthoover may employ an office manager and accountant. Compensation As owners, Mr. and Mrs. Branthoover’s income will come from the revenues of Tim the Mechanic, and will on a large degree depend on how profitable the business is. When the time comes to hire additional employees, the Branthoovers hope to hire 2 additional mechanics. The average gross income of an auto tech is $32,000 at time of hire. They also plan to hire accountant services. Management Backgrounds Mr. Branthoover has been in the auto industry his entire life, has started and managed auto shops for 3 owners, has been self-employed as a mobile mechanic for the last 7 years, . He has experience at records keeping, purchase orders. In the last 3 years he has learned the use of computers and has a full working knowledge of all office programs. He knows the auto repair industry well. They will purchase auto shop related software to help billing and records stay accurate. Also has experience in customer relations. Diane Branthoover also has experience in records keeping and shipping/receiving, as well as filing and administrative experience. She has over 20+ years in customer service, and is computer literate. She also has extensive experience in customer relations. Outside Support Team Diane and Tim will hire reputable accountant, Jeannie Lobb, and seek additional professional guidance when necessary. Products and Services Description Tim the Mechanic provides quality auto repair service at an affordable price. Their job is to repair vehicles quickly, where the breakdown or "no start" occurs: To provide the public with an alternative to high towing costs and eliminate long waiting periods: Immediate estimates of repair cost. On major repairs, they offer options such as the use of quality used engines & transmissions as an alternative. They will provide businesses with fleet vehicles services and repairs.
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