CAR DEALERSHIP BUSINESS PLAN

CAR DEALERSHIP BUSINESS PLAN

A car dealership business plan is a document demonstrating the feasibility of a prospective new business and providing a roadmap for its first several years of operation. Almost everyone needs a car to get from point A to B. Many families have two or more cars. The needs of every customer is different

Different customers

Students will include high school and college age students who need a safe and economical car. This group is concerned with price, flashy looks, and being cool. These drivers tend to be less educated and will buy on impulse paying more for less car. They will also buy cars more often than others. The retired group will focus on practicality. Cost may be less important than quality and features. This group wants comfortable, nicely equipped vehicles at a reasonable price. They will want a vehicle that will last for years. Families will focus on safe, practical vehicles. Something that will last for years, can fetch groceries, carry the kids, and perform long trips. Many will be on a budget, and price may be a big factor. They will shop around and educate themselves on vehicles, shopping for a specific make or model. The last group is the singles. They are similar to the students in that they want flashly cool cars, but may be a working professional who can afford to pay more for a higher-quality vehicle.

MARKET TRENDS-CAR DEALERSHIP BUSINESS PLAN

There is a real need for a highly professional used car dealer who can provide quality vehicles at competitive prices, in a pleasant purchasing environment.

There is also a practical need for new car dealers to move a large used car inventory that takes up valuable space on their lots.

A sample car dealership business plan is as follows;

The essential components of a car dealership business plan are

1. The executive summary is a nutshell version of the entire plan, briefly covering the essentials.
2. The business description describes the proposed new endeavor, explains its purpose and its target market.
3. The plan’s market analysis section describes the industry and the market environment of the proposed business, including a profile of the competition
4. The organizational and managerial section explains how you envision the structure of your business, what types of positions and departments it will encompass.
5. The products (or services) section details what you’re offering. This section should include a full description of  the products you’ll sell and your plan for product lifecycle management
6. The marketing and sales section explains your strategies for branding, marketing and selling your product or service
7. The funding request will differ according to what type of information is required by the funding party.

1. The financial projection covers the expected performance and milestones over the first years of operation, usually five years. For an existing business, historical financial data should be included.
2. An appendix can include useful information that doesn’t belong in any of the other sections.

For a business to succeed, an effective business plan is required.  Once you develop your auto detailing business plan you need to review it periodically and make adjustments as your business changes and matures.

BENEFITS OF A  CAR DEALERSHIP BUSINESS PLAN

Having a car dealership business plan helps you to stay on track.

Helps in keeping your business objectives clear

It helps in identifying potential market, sales, costs of sales, sales drivers, lead processing and business processes.

Aside from the strategy, there are also priorities for other factors of your business like growth, management and financial health

Use a car dealership plan to keep track of what needs to happen and in what order. For example, if you have to time a product release to match a testing schedule or marketing to match a release, your business plan can be invaluable in keeping you organized and on track.

Use a car dealership  business plan to keep track of dates and deadlines in one place. This is valuable even for the one-person business and vital for teams.

The car dealership business plan is an ideal place to clarify who is responsible for what. Every important task should have one person in charge. Your plan keeps track.

So many people acknowledge the need for regular team member reviews and just as many admit they hate the reviews. The plan is a great format for getting things in writing and following up on the difference between expectations and results with course corrections.

No business can afford to mismanage cash. And simple profits are rarely the same as cash. A cash flow plan is a great way to tie together educated guesses on sales, costs, expenses, assets you need to buy and debts you have to pay.

CONCLUSION

Having a CAR DEALERSHIP business plan gives you a way to be proactive — not reactive — about business. Don’t wait for things to happen. Plan them.