Business Plan

Self-Start, Sonepat

self
start

By :-

Priya

Mahek Jain

Priya Balyan
 Executive summary
Self start auto parts stores is a standard auto spares parts retail store
business that will be located in one of the busiest streets in Sonepat.
Self start auto parts stores will be involved in selling automotive parts
and accessories, distributing automotive parts from different
manufacturers (brands) from the India and repairing automobiles. We
are set to service a wide range of clientele in and around Sonepat.
 Table of Contents
1. Business Objectives
1.1 Mission and vision statement
2.Company Description
2.1 Ownership
2.2 Startup summary
2.3 Location and facilities
3.Products and Offerings
3.1 Daily Operations
3.2 Competitive Comparison
3.3 Suppliers
3.4 Management Controls
3.5 Administrative Systems
3.6 Future services
4.Market Analysis
4.1 Market Trends
4.2 Target Market
4.3 Competitive Advantage
5.Market Strategy and Implementation
5.1 Strengths
5.2 Weaknesses
5.3 Opportunities
5.4 Threats
5.5 Sales forecast
5.6 Marketing Strategy and Sales Strategy
5.7 Pricing Strategy
 5.8 Promotion strategy

6. Organization and Management

6.1 Business structure
6.2 Roles and Responsibilities
7.Financial Plan
7.1 Start – Up Expenditure (Budget)
7.2 Fixed Asset/ Start-up Expense List
7.3 Unit Selling Price And Cost Analysis
7.4 Sources of Income
7.5 Generating Funds / Startup Capital
7.6 Breakeven analysis
7.7 Payment Options
8. Check List
 Business Objectives
Self start Auto Parts Stores will at all-time demonstrate her commitment
to sustainability, both individually and as a firm, by actively
participating in our communities and integrating sustainable business
practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our customers ‘needs
precisely and completely whenever they patronize our products.
We will cultivate a working environment that provides a human,
sustainable approach to earning a living, and living in our world, for our
employees and for our customers.
 Mission statement
Our mission is to establish a world – class auto parts retail store business
that will make available a wide range of auto parts from top auto parts
manufacturing brands at affordable prices to the residence of Sonepat
and other key cities in the Haryana where we intend opening of chains of
auto parts retail stores and franchise.

Our Vision Statement

Our vision is to become one of the leading brands in the auto parts stores
industry in Sonepat and to establish a one stop auto parts retail store in
Sonepat and in other key cities in the Haryana.
 Company Description
Self Start is a new company, which upon
commencement of operations will provide all auto parts
with affordable price and quality service. We distribute
the auto electrical parts, filters, breaks, wipers, control
cables etc. of selected companies. These companies are
Indotto Genuine parts, MINDA, Panalfa and Lucas TVS
Ltd.

Ownership
Self Start which is a auto part retail store, owned by
Priya, Priya Balyan and Mehak Jain.
 Start up Summary
We are aware that there are several large and small chains of auto spare
parts retail store outlets all around, which is why we spent time and
resources to conduct a thorough feasibility studies and market survey so
as to be well positioned to favorably compete with all our competitors.
Self start Auto Parts Stores will ensure that all her customers are given
first class treatment whenever they visit our auto parts retail store. We
will ensure that we get our customers involved in the selection of brands
that will be in our store and also when making some business decisions.
 Products and Offerings
Self start Auto Parts Stores is in the auto parts stores industry to service
a wide range of clients and of course to make profits, which is why we
will ensure we go all the way to make available a wide range of auto
parts from top manufacturing brands in India.
We will ensure that we do all that is permitted by the law of our country
to achieve our aim and ambition of starting the business. Our product
and services offerings are listed below;
• Selling automotive parts and accessories (critical parts (new),
critical parts (used), maintenance parts, accessories and
performance parts)
• Distributing automotive parts
• Repairing automobiles and installing automotive accessories
 Competitive Comparison
A close study of the auto parts retail stores industry reveals that the
market has become much more intensely competitive over the last
decade. As a matter of fact, we have to be highly creative, customer
centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to
compete favorably with other leading auto parts retail stores in Sonepat
and throughout the area around.
 Market Analysis
Market Trends
If we are conversant with the Auto Parts Stores Industry, we will quite
agree that the changes in disposable income, consumer sentiment, and
ever changing trends are major growth drivers for sales in this industry.
No doubt, a massive rise in consumer confidence has also contributed in
helping the industry experience remarkable growth, but uneven
performance in these drivers has led to slightly constrained revenue
growth for the industry.
So also, the rising demand for parts manufactured by a third-party
manufacturing company, as a result of increasing disposable income and
consumer sentiment, will result in revenue growth, but profit margins
will stagnate as auto retail stores keep prices low to attract more sales
amid growing competition.
As part of marketing strategies, auto parts retail stores engage in massive
clearance sales and discount sales to attract customers. It is a strategy
that helps them welcome new customers and also reinforce the loyalty of
old customers.
Lastly, in recent time, the auto parts retail stores landscape has seen
tremendous changes in the last 20 years; it has grown from the smaller
outlets to a more organized and far reaching venture. The introduction of
franchise and online store makes it easier for a retailer to reach out to a
larger market far beyond the areas where his physical auto parts retail
store is located.
 Our Target Market
Perhaps it will be safe to submit that the auto parts retail stores industry
has one of the largest ranges of customers; almost every automobile
owner would have one reason or the other to purchase automobile parts
and accessories.
In view of that, we have positioned our auto parts retail store to service
the residence of Sonepat and every other location where franchise cum
outlets of our auto parts retail stores will be located all over key cities in
the state.
We will conduct our market research and feasibility studies and we have
ideas of what our target market would be expecting from us. We are in
business to retail a wide range of auto parts to the following groups of
people and corporate organizations;
• Car owners
• Auto repair, maintenance and servicing garages
• Transport companies
• Haulage companies
 Our Competitive Advantage
A close study of the auto parts retail stores industry reveals that the
market has become much more intensely competitive over the last
decade. As a matter of fact, you have to be highly creative, customer
centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to
compete favorably with other leading auto parts retail stores in Sonepat
and throughout Haryana.
Self start Auto Parts Stores would be launching a standard one stop auto
parts retail store that will indeed become the preferred choice of
residence / automobile owners of Sonepat and every other location
where our outlets will be opened. Our auto parts retail store is located
close to the largest residential estate in Sonepat. We are going to have
enough parking spaces that can accommodate well over 30 cars per time.
One thing is certain; we will ensure that we are going to have a wide
range of auto parts from leading auto parts manufacturers available in
our store at all times. It will be difficult for customers to visit our auto
parts retail store and not see the type of auto parts and accessories they
are looking for.
One of our business goals is to make Selfstart Auto Parts Stores a one
stop auto parts retail shop for automobile owners, auto repair,
maintenance and servicing garages and transport companies. Our
excellent customer service culture, online store, various payment options
and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare
package will be among the best within our category (startups auto parts
retail stores) in the industry meaning that they will be more than willing
to build the business with us and help deliver our set goals and achieve
all our aims and objectives. We will also give good working conditions
and commissions to freelance sales agents that we will recruit from time
to time.
 Market Strategy and Implementation
Before choosing a location for Selfstart Auto Parts Stores we are going
to conduct a thorough market survey and feasibility studies in order for
us to be able to be able to penetrate the available market and become the
preferred choice for residence of Sonepat. We will have detailed
information and data so that we were able to utilize to structure our
business to attract the numbers of customers we want to attract per time.
We will hire experts who have good understanding of the auto parts
retail stores industry to help us develop marketing strategies that will
help us achieve our business goal of winning a larger percentage of the
available market in Sonepat.

SWOT Analysis
Our intention of starting just one outlet of our auto parts retail store in
Sonepat is to test run the business for a period of 2 to 5 years to know if
we will invest more money, expand the business and then open other
outlets all over major towns near Sonepat and key cities in the Haryana
state.
We are quite aware that there are several auto parts retail stores all over
Sonepat 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 welled equipped to confront our threats.
Self start Auto Parts Stores employed the services of an expert HR and
Business Analyst with bias in retailing to help us conduct a thorough
SWOT analysis and to help us create a business model that will help us
achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Self
start Auto Parts Stores;
• Strength:
Our location, the business model we will be operating on both (physical
store and online store), varieties of payment options, wide range of auto
parts from different manufacturing brands both from the country and our
excellent customer service culture will definitely count as a strong
strength for Self start Auto Parts Stores. So also, our team of highly
qualify staff members is also a plus for the business.
• Weakness:
A major weakness that may count against us is the fact that we are a new
auto parts retail store outlet in Sonepat and we don’t have the financial
capacity to compete with huge amount auto parts retail store outlets
when it comes to retailing at a rock bottom prices for all their auto parts.
• Opportunities:
The fact that we are going to be operating our auto parts retail store
close to one of the largest residential estates in Sonepat provides us with
unlimited opportunities to sell our auto parts to a large number of
individuals, auto repair, services and maintenance garages and transport
companies. We have been able to conduct thorough feasibility studies
and market survey and we know what our potential clients will be
looking for when they visit our auto parts store outlets; we are well
positioned to take on the opportunities that will come our way.
 • Threat:
Just like any other business, one of the major threats that we may face is
economic downturn. It is a reality that economic downturn affects
purchasing / spending power. Another threat that may likely confront us
is the arrival of a new auto parts retail outlet in same location where ours
is located. So also, unfavorable government policies may also pose a
threat for businesses such as ours.

Sales Forecast
One thing is certain when it comes to auto parts retail stores, if the store
is well stocked with various types of auto parts and accessories and your
store is centrally positioned, it will always attract customers cum sales
and that will sure translate to increase in revenue generation for the
business.
We are well positioned to take on the available market in Sonepat and
we are quite optimistic that we will meet our set target of generating
enough income / profits from the first six month of operations and grow
the business and our clientele base.
We are going to critically examine the auto parts retail stores industry
and 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 Sonepat.
Below are the sales projections for Selfstart Auto Parts Stores it is based
on the location of our business and other factors as it relates to auto parts
retail stores start – ups in the country;
 • First Fiscal Year-: Rs. 1550000
• Second Fiscal Year-: Rs. 3550000
• Third Fiscal Year-: Rs. 6550000
Note : This projection is done based on what is obtainable in the
industry and with the assumption that there won’t be any major
economic meltdown and there won’t be any major competitor retailing
same sporting goods brands and customer care 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.

Sales Strategy
In order to continue to be in business and grow, we must continue to sell
the auto parts and accessories that are available in our store which is
why we will go all out to empower or sales and marketing team to
deliver. In summary, Selfstart Auto Parts Stores will adopt the following
sales and marketing approach to win customers over;
• Open our auto parts retail store in a grand style with a party for all
• Introduce our auto parts retail store by sending introductory letters
alongside our brochure to organizations, households, auto repair,
maintenance and servicing garages, transport companies and other
key stake holders in Sonepat
• Ensure that we have a wide range of auto parts and accessories
from different brands at all times.
• Make use of attractive hand bills to create awareness and also to
give direction to our auto parts retail store
• Position our signage / flexi banners at strategic places around
Sonepat
 • Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular
customers
• Engage on road shows within our neighborhood to create
awareness for our auto parts retail store.
• List our business and products on yellow pages ads (local
directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)
Join local chambers of commerce and industries to network and market
our products

Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage
to auto parts retail stores, it is normal for consumers to go to places (auto
parts retail outlets) where they can get auto parts and accessories at
cheaper prices which is why big player in the auto parts stores industry
will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with bigger companies
in the industry but we will ensure that the prices and quality of all the
auto parts and accessories that are available in our store are competitive
with what is obtainable amongst auto parts stores within our level.
 Promotion Strategy
Despite the fact that our auto parts retail store is well located, we will
still go ahead to intensify publicity for the business. We are going to
explore all available means to promote our auto parts retail store.
Self start Auto Parts Stores has a long-term plan of opening outlets in
various locations all around Sonepat and key cities in the country which
is why we will deliberately build our brand to be well accepted in
Sonepat before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely
for winning customers over but to effectively communicate our brand.
Here are the platforms we intend leveraging on to promote and advertise
Self start Auto Parts Stores;
• Place adverts on community based newspapers, radio stations and
TV stations.
• Encourage the use of word of mouth publicity from our loyal
customers
• Ensure that our we position our banners and billboards in strategic
positions all around Sonepat
• Distribute our fliers and handbills in target areas in and around our
neighborhood
• Contact corporate organizations, households, landlord associations
and auto repair, maintenance and servicing garages by calling them
up and informing them of Self start Auto Parts Stores and the
products we sell
• Advertise our auto parts retail store business in our official website
and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff
members and management staff wears our branded shirt or cap at
regular intervals.
 Organization and Management
Our Business Structure
Self start Auto Parts Stores does not intend to start an auto parts retail
store business like the usual mom and pop business around the street
corner; our intention of starting an auto parts retail store business is to
build a standard and one stop auto parts retail store outlet in Sonepat.
Although our auto parts retail store business might not be as big as
bigger companies in the industry but will ensure that we put the right
structure in place that will support the kind of growth that we have in
mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer
centric and are ready to work to help us build a prosperous business that
will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to
all our senior management staff and it will be based on their
performance for a period of ten years or more.
In view of that, we have decided to hire qualified and competent hands
to occupy the following positions;
• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager
• Merchandize Manager
• Sales and Marketing Manager
• Information Technologist
• Accountants / Cashiers
 • Sales Agents / Customer Services Executive
• Cleaners

Roles and Responsibilities

Chief Executive Officer – CEO:
• Raises management’s effectiveness by recruiting, selecting,
orienting, training, coaching, counseling, and disciplining
managers; communicating values, strategies, and objectives.
• 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
• In charge of providing direction for the busines
• Responsible for signing checks and documents on behalf of the
company
• Appraises the success of the organization
• Reports to the board
Admin and HR Manager
• Responsible for overseeing the smooth running of HR and
administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and
expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive
maintenance requirements; calling for repairs.
 • Informs job knowledge by participating in educational
opportunities; reading professional publications; maintaining
personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting
ownership for accomplishing new and different requests; exploring
opportunities to add value to job accomplishments.
• Explains job positions for recruitment and managing interviewing
process
• Carrying out staff induction for new team members
• In authority of working out, evaluation and assessment of
employees
• Responsible for arranging travel, meetings and appointments
• Supervises the smooth running of the daily office activities.
Store Manager:
• In control of managing the daily activities in the store
• Guarantees that proper records of auto parts are kept and
warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are
properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
Merchandize Manager
• Brings about vendor relations, market visits, and the ongoing
education and development of the organizations’ buying teams
• Helps to guarantee consistent quality of auto parts from different
manufacturers are purchased and retailed in good price that will
ensure we make good profit
Sales and Marketing Manager
• Brings about external research and coordinate all the internal
sources of information to retain the organizations’ best customers
and attract new ones
• Model demographic information and analyze the volumes of
transactional data generated by customer purchases
• Recognizes, arranges, and stretches out to new partners, and
business opportunities et al
• Identifies development opportunities; follows up on development
leads and contacts; participates in the structuring and financing of
projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the
customer’s needs, and communicate with clients
Information Technologist
• Accomplishes the organization website goals
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software
and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-
commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.
Accountant / Cashier:
• Accountable for preparing financial reports, budgets, and financial
statements for the organization
 • Provides managements with financial analyses, development
budgets, and accounting reports; analyzes financial feasibility for
the most complex proposed projects; conducts market research to
forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and
financial reporting
• Responsible for developing and managing financial systems and
policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization
Client Service Executive
• 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 customers on the phone, uses every
opportunity to build client’s interest in the company’s products and
services
• Manages administrative duties assigned by the human resources
and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the
organizations’ products, promotional campaigns etc. to ensure
accurate and helpful information is supplied to customers when
they make enquiries (answer customer queries regarding the store
and the merchandise)
 • Find out the customer’s needs, recommend, select and help locate
the right merchandise, describe a product’s features and benefits.
Cleaners:
• In control for cleaning all the goods and the store facility at all
times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handle any other duty as assigned by the store manager.
 Financial Plan
Start – Up Expenditure (Budget)
In setting up any business, the amount or cost will depend on the
approach and scale you want to undertake. If you intend to go big by
renting / leasing a big facility, then you would need a good amount of
capital as you would need to ensure that your employees are well taken
care of, and that your facility is conducive enough for workers to be
creative and productive.
This means that the start-up can either be low or high depending on your
goals, vision and aspirations for your business.
The materials and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be
overlooked. As for the detailed cost analysis for starting an auto parts
retail store business; it might differ in other countries due to the value of
their money.
These are the key areas where we will spend our start – up capital on;
• The total fee for registering the business.
• Legal expenses for obtaining licenses and permits as well as the
accounting services (software, P.O.S machines and other
software).
• Marketing promotion expenses for the grand opening of Self start
Auto Parts Stores.
• The cost for hiring business consultant.
• Insurance (general liability, workers’ compensation and property
casualty) coverage at a total premium.
 • The cost for payment of rent.
• The cost for shop remodeling (construction of racks and shelves).
• Other start-up expenses including stationery and phone and utility
deposits
• Operational cost for the first 3 months (salaries of employees,
payments of bills
• The cost for start-up inventory (stocking with a wide range of auto
parts and accessories from different manufacturing brands)
• The cost for counter area equipment
• The cost for store equipment (cash register, security, ventilation,
signage)
• The cost of purchase and installation of CCTVs
• The cost for the purchase of office furniture and gadgets
(Computers, Printers, Telephone, TVs, Sound System, tables and
chairs )
• The cost for our opening party
• Miscellaneous
We would need an estimate of Rs. 7,85,000 to successfully set up our
auto parts retail store in Sonepat. Please note that this amount includes
the salaries of all the staff for the first month of operation.
Fixed asset/Start-Up Expense List

Fixed Asset Description: Cost:

Land/Building 25,000
Equipment and/or Vehicles 1,00,000

Start-Up Expense Description:

Legal/Organization cost 50,000
Initial Marketing & Promotion 50,000
Licenses and Permits 60,000
Beginning Inventory 5,00,000

• Total Fixed Asset And Start-Up Expenses: 7,85,000

Unit Selling Price And Cost Analysis
Product or Service 1: Starter Motor
A. Selling Price: 7,000
Direct Costs:
Labor 200
B. Total Cost per Unit 3,600
C. Unit Gross Profit 3,600
D. Gross profit % 50%

Product or Service 2: Armature

A. Selling Price 2,100
Direct Cost:
Labor 100
B. Total Cost per Unit 1,400
C. Unit Gross Profit 800
D. Gross profit % 57%
 Sources of Income
Self start Auto Parts Stores is in business to retail a wide range of auto
parts to the residence of Sonepat. We are in the auto parts retail stores
industry to maximize profits and we are going to go all the way out to
ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of
auto parts from different manufacturing companies at affordable prices.
Self start Auto Parts Stores will generate income by offering the
following products and services;
• Selling automotive parts and accessories (critical parts (new),
critical parts (used), maintenance parts, accessories and
performance parts)
• Distributing automotive parts
• Repairing automobiles and installing automotive accessories

Generating Funds / Startup Capital for

Self start Auto Parts Stores

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank
 Breakeven and sustainability
The future of a business lies in the numbers of loyal customers that they
have, the capacity and competence of the employees, their investment
strategy and the business structure. If all of these factors are missing
from a business (company), then it won’t be too long before the business
close shop.
One of our major goals of starting Self start Auto Parts Stores is to build
a business that will survive off its own cash flow without the need for
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 retail our wide range of quality auto parts and
accessories a little bit cheaper than what is obtainable in the market and
we are well prepared to survive on lower profit margin for a while.
Self start Auto Parts Stores 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 company’s corporate culture is designed to drive
our business to greater heights and training and re – training 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 six months 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.