BUSINESS PLAN

Prepared by Raphael Tanaka Trish Robert

Company name: SUB~ZERO MOTORS
Type of business:MOTOR VIHECLE REPAIRS
,PANEL BEATING,SPRAY
PAINTING,AUTO ELECTRICS
,SPARES CAR SALES AND SALES.
MANAGEMENT TEAM AND CONTACT DETAILS
Rapheal 0782656691
Robert

0776405105

Tanaka

0775326476

Trish

0774515320

SUB~ZERO MOTORS

CONTENTS TABLE
1. EXECUTIVE SUMMARY
1.1 Main aim and objectives
1.2 Brief description of the business
1.3 Brief description of the business
1.4 Overview of the market
1.5 Financial requirements
2. COMPANY DESCRIPITON
2.1.
Ownership
2.2.
Start of plan
2.3.
Services
2.4.
Reasons
2.5.
Assets currently owned
2.6.
Benefits to the owner
2.7.
Benefits to the society
3. SERVICES ANALYSIS
3.1.
Service facilities
3.2.
Equipment
3.3.
Office location
3.4.
Wage structure
4. MARKET ANALYSIS
4.1.
Market forecast
4.2.
Main competitions
4.3.
Industry analysis
4.4.
Keys to success
4.5.
Distrubution pattern
5. SALES AND MARKETING STRATEGY
5.1.
Market strategy
5.2.
Pricing strategy
5.3.
Customer distrubution network
5.4.
Sales strategy
5.5.
Sales forecast
5.6.
Services

6. ORGANISATION
6.1.
Organisational structure
6.2.
Management team and responsibility
6.3.
Social and environmental impact assessment
6.4.
Sales
SUB~ZERO MOTORS

7. FINANCIAL
7.1.
Budget assumption
7.2.
Proforma operating statements
7.3.
Expenditure
7.4.
Break even analysis
8. RISK EVALUATION
8.1.
Various elements of risk
8.2.
Mitigation of the elements
9. CONCLUSION
9.1.
Strength and strategies
9.2.
Weakness and strageties
9.3.
Opportunities and strategies
9.4.
Threats and strategies

SUB~ZERO MOTORS

1 EXECUTIVE SUMMARY
1.1.

MAIN AIM
The Major aim of this business is to generate income for the members giving people`s
vehicles a new lease of life.This venture aims to give hope to the hopeless by fixing their
vehicles,be it accident damaged or with faults and purchasing second hand cars.it also aims
providing vehicles to the to the low income persons at very affordable prices and favourable
terms as well as to back up spares of vehicles,tractors etc
1.2.
COMPANY DETAILS
Address

:SUB~ZERO MOTORS
:10 GLASSGLOW
:MUTARE

Contact Numbers

:cell-0773889209

Tel

:(020)689251

E-mail

subzero@gmail.com

SUB~ZERO MOTORS

1.3.

BRIEF DESCRIPITION OF THE BUSINESS

SUB~ZERO MOTORS is a garage that was founded on 01 january 2016 by five members in
Mutare. The purpose of the enterprise is to generate income by serving the community by
providing by providing brand new and purchasing second cars at affordable prices,spares,panel
beating and mechanical repairs on cars. The venture needs $20 000 to run but only $10 000 has
been rasised through contributions from members.The organization therefore applies for $10 000
cash loan facility.
1.3.1. LOCALITY
To be locally available providing the best
Services even vehicle delivery service
after services will have been provided.
1.3.2. GROWTH
To flourish the business in an alarming rate that is manageable and being outstanding in the
market with innovative ideas.
1.3.3. PROFIT
To produce sufficient and reliable profit to plough back to the business for its survival,plough
back to the community support owner`s objectives.
1.3.4. OBJECTIVES
To purchase accident damaged cars,fix and resale.
To purchase cars with mechanical or electrical faults, fix ,and resale at affordable prices.
To rent out cars for special occasions like weddings etc.
To repair accident damaged cars and broken down vehicles for individuals and
companies.
SUB~ZERO MOTORS

 To create jobs for unemployed youths and women empowerment in the local
community this will subsequently reduce loitering,drug & alcohol abuse and other antisocial activities.
To research and disseminate the latest information on automobiles to other garages and
service centers.
To sell cars to low income earners at reasonable and manageable terms of payment.
1.3.5 SHORT TERM OBJECTIVE
To start business with at least 2 accident damaged cars,3 cars with mechanical faults
then repair them for resale with minimum debt.
1.3.6LONG TERM OBJECTIVES
To grow into a bigger recognized organization,expand abroad and manage to penetrate
into the foreign market.
1.4 OVERVIEW OF THE MARKET FOR MY SERVICES
A number of market research surveys have been undertaken indicating that a greater
percentage of people commute to work and from point A to point B because they cannot
afford to buy cars because most car sales offer cash and carry and no payment terms.
Most people can no longer afford to take their cars to garages after being involved in an
accident or if a vehicle has developed mechanical faults because of the high rates charged
these garages do not have back up spares of vehicles on the market.Research has also
proved that most of the garages do not have car hire services for functions like
weddings,funerals,parties,etc.
1.5 FINANCIAL REQUIREMENTS
The company needs at least $15 000 to start running.
1.6. USES OF MONEY
Rentals for premises
Stationery for receipts,posters,flyers for adverts,business,quotation books,checklist
books,delivery notes,order books,etc.
equipment like diagnostic machines,compressors,porto power,car-o-liner bodyline up
systems,tool boxes,grinders,spray guns,aero-cure spray booth,car lift posts,etc.
SUB~ZERO MOTORS

 Purchases cars with mechanical faults and accident damaged cars for a start.
Wages and salaries.
2.0 COMPANY DESCRIPITION
2.1 OWNERSHIP
Robert Maumba AS DIRECTOR
Trish Waretsa

AS THE CEO

NehmiaMapandaAS THE OPERATIONS MANAGER

Tanaka AS THE TREASURER
RaphealMavhulele AS THE SUPERVISOR

SUB~ZERO MOTORS

2.2 START UP PLAN

To start up a business with $20 000 where 50% of this will be from the owners own savings.
DATE
JAN 7 2016

TIME
0800hrs

ACTIVITY
Acquiring a loan from
CBZ

BY
Manager

JAN 15 2016

0900hrs

Searching around for

equipment,cars and
spares for resale

Treasurer and
Manager

JAN 16 2016

0800hrs

Purchasing of
equipment,cars and
spares

Treasurer

JAN 17 2016

0745hrs

Cleaning up of a new
site and installation

Staff (maintenance)

JAN 18 2016

0745hrs

Staff

Staff

JAN 19 2016

0745hrs

Business commences

Staff members

SUB~ZERO MOTORS

2.3 SERVICE
Service will be conducted in a friendly manner to clients with provision of care and trust from
a business lasting band.Most civil servants and many formally employed people would aquire
cars at a debt payable at a specified and agreed period.People`s vehicles would be repaired at 0%
deposit on labour and would pay at a given period.Customers will only pay cash on spares.
2.4 ASSETS CURRENTLY OWNED
Pool trucks.
1 Computer.
5 Mobile phones.
1 arc welding machine
Tools box.
breakdown recovery truck.
2.5 REASONS FOR BUSINESS PLAN
To be used by revenue authorities in the application of a license.
To outline goals of the business.
For security loans from banks.
To acquire a shop license from responsible authorities.
A guideline of full operation of the business.

SUB~ZERO MOTORS

2.6 REASONS FOR THE INTREST IN THE BUSINESS

We are doi business studies at Mutare Teachers College Practising High School now have
knowledge in the business of procurement and supplying and we have realized that sourcing of
vehicles at low prices because cars are a necessity in peoples lifes.Most car sales are not being
able to meet the terms and conditions which are affordable to the people.To supply all kinds cars
but which are easy to repair and maintain.To create employment for the youth in the community
of Mutare.

2.6 BENEFITS OF THE OWNERS

Profit
Status in the society
Loss shared

2.7 BENEFITS TO THE SOCIETY

Reduced unemployment rate.
Reduces the country`s dependency syndrome since most people now depend on buying cars on
the internet because of cheap prices.
Creates balance in trade.Donations to the less privileged to improve their lives.
Lessened transport problems.
3 SERVICE ANALYSIS
3.1 SERVICE FACILITIES
A reception will be available,two private offices and one pool office will be available.Most of the
space will be covered with a workshop and parking area for vehicles displayed for sale.At the
reception that is where most of the payments will be done and enquries.All office work will be
done in the pool office and all negotiations, big and special orders will be done in either of the
two private offices where the active directors will be found.

SUB~ZERO MOTORS

3.2 WORKSHOP AND OFFICE LOCATION

The workshop and offices will be located in the industrial area of Mutare where there is more
space for the workshop and the noise does not affect many.Some mobile offices will be in town
for people who would like to like hire,book some vehicles and purchase cars and spares.
3.3 WAGES STRUCTURE
Minimum wages will be set by the National Employment Council and the company will add its
incentive to motivate its workers and monthly wages will like:
Manger

$1 247

Secretary

$568

Treasurer

$895

Supervisor

$745

Workshop foreman

$500

General workers

$420

4 MARKET ANALYSIS
4.1 INDUSTRY ANALYSIS
Most organizations have gone miles in providing substandard and expensive services beyond the
reach of the majority.However there is great room for SUB~ZERO MOTORS to go beyond all
existing motor garages be outstanding due to its unique style of services conducted.
4.2 DISTRIBUTION PATTERNS
Our targeted clients are working class people including all the people in the community who
constitute about three quarters of our buyers.To other individuals all transactions will be cash
upfront but the rates will also be reasonably low. The distribution of cars will change with time
since the company will have purchased many faulty cars fixed them and put them on
market.Some cars will be supplied to small entrepreneurs outside Mutare to other parts of
Manicaland.

SUB~ZERO MOTORS

4.3 MAIN COMPETITORS,THEIR STRENGTH AND WEAKNESS

Competitor
Supreme panel Beaters

Strength
They have been in the field for
so long and they also own
their own premises so less
rentals for them.

Weakness
Reduced pace of growth since
they see themselves the giants
in the market.

Quest Motors

Have dominated a large

fraction of the market.

Expensive products and

services.

4.4 KEYS TO SUCCESS

4.4.1 LOCATION
Our target market is Mutare province and other provinces surrounding Mutare.
Our main premises will be located in the industrial sites of Mutare targeting cars from all
surrounding Mutare and across the border from Mozambique.
4.4.2 GOOD PUBLIC RELATIONS
Create a good name for the organization.
Allows us to get views and ideas from customers from all sectors and even our competitors
since in business you are not enemies but you work together.
Commitment,self confidence and creativity leads to the success of SUB~ZERO MOTORS.
4.5 MARKET FORECAST

SUB~ZERO MOTORS

5 SALES AND MARKETING STRATEGY

5.1 MARKETING STRATEGY
Advertising through all found media.
Offering free services like;free quotations,free breakdown recovery services in town with a
radius of 40km provided job is brought to workshop,20 000km guarantee on all engine overhauls
provided all service all intervals are done at the garage in the time,one month free carwash once
a day on all cars sold or repaired by the product support team,24hr breakdown recovery services.
5.2 PRICING STRATEGY
The business will adopt market skimming as the initial pricing method.
Pricing will be finalized after after calculating all expenses, time taken to complete the job
nature of customer and terms of payment.
Prices will be lower than those found on the local market.
5.3 PROMOTIONS
10% discount on all cash payments.
Vehicles purchased 2 days before any public holiday will be sold with tank of fuel.
5.4 SALES STRATEGY
Will be based on demand .
Demand will be activated by promotional activities and marketing.
5.5 SALES FORECAST
Sales will increase by using the method of penetrating into the market.We are confident enough
that during the first 3 months we will offer the best services and solutions in town.The graphs
will be shown as follows:

SUB~ZERO MOTORS

14
12
10
8
6

4
2
0
march

april

may

5.6 SERVICES
Our mandate will be to create goodwill for the company which will facilitate the growth of the
organization.Customers should should be allowed to give their views and comments concerning
our services.Will try to handle our customers with care and pay more attention to their needs.
6 ORGANIZATION
SUB~ZERO MOTORS is a top to down company with all seniors having direct link in all
seniors having direct link in all operations as in research and development.
THE ORGANIZATIONAL STRUCTURE
All members are equal shareholders but duties are hierarcal according to seniority.

SUB~ZERO MOTORS

MANAGER

SECRETARY

TREASURER

SUPERVISOR

WORKSHOP FORMEN

GENERAL WORKERS

SUB~ZERO MOTORS

MANGEMENT TEAM AND RESPONSIBILITIES

MANAGER
Oversees the overall function of the project with assistance from the secretary and treasurer.
SECRETARY
Keeps upon all corresponding ,records and stores important information ,documents ,statistics
and minutes.
TREASURER
Records all financial records, deposits and withdraws money from the bank.
SUPERVISOR
Attend to daily chores of the general workers or hired labor.
WORKSHOP FORMEN
Attends to all responsibilities in the work shop.
SOCIAL AND ENVIROMENTAL IMPACT ASSESMENT
The project does not pose a threat to humans, animals and all living creatures workshop will be
located away from the CBD and residential area to avoid noise and air pollution that affect
people.Recent machinery will be purchased that produce less pollutants will be disposed in waste
bins not in rivers for it will kill fish and all water living organisms.This pollution will be
minimized.The social and environment assessments were led by the EMA Enviromental
Management Agency and NSSA for security of employees and the public.
SALES
The organization expects to get an average of $25 000 per month from sales of at least 10 cars
,repairs of at least 40 cars and at least 5 car hires.If the loan is acquired the project exepects to
earn a total of approximately $300 000 per year.

SUB~ZERO MOTORS

7 FINANCIAL
7.1 BUDGET ASSUMPTION
EXPENSES
Puchasing of Equipment Premise

COST ($us)
$8 000

Working capital
Purchasing of damaged cars and broken down
cars
Advertising and marketing promotions
Miscellaneous

$ 500
$ 5000
$3 000
$ 2000
$ 500
$ 900

Sub total

$19 900

7.2 PROFORM A OPERATING STATEMENT

Monthly Proforma invoices will be provided.
7.3 EXPENDITURE
The total estimated expenditure for the first year is $206 000.This amount is arrived at after
adding monthly expenses ,hired labor ,allowances ,sundry expenses ,insurance ,loan repayment
,interest ,rentals ,stationery ,purchasing of cars and fixing for resale ,spares and other stock.
7.3.1. HIRED LABOR
A total estimated sum of $36 000 a year at $3 000 per month on hired labor such as drivers
,mobile sales reps.\
7.3.2 SUNDRY EXPENSES
Petty cash of $60 000 is allocated for sundry expenses for the year.

SUB~ZERO MOTORS

7.3.3 INSURANCE
A total amount of $24 000 has been budgeted for insurance for the to cover for most common
risks like fire in workshop ,theft ,all cars in the garage ,accidents and other risks.
7.3.4 SPARES AND OTHER MATERIAL
A total amount of $26 000 has been budgeted for the purchase of spares ,other material like
paints to fix cars for resale.
7.3.5 RENTALS
The organization estimates to use about $6 000 on rentals per year then about $8 000 on water
bills and telephone bills per year.
7.3.6 LOAN REPAYMENT
The organization expects to pay back the loan completely in 12months of business.
7.3.8 NET CASH FLOW
A grand total $300 000 income cash flow is expected during the first.
7.4 BREAK EVEN ANALYSIS
It allows the organization to foresee into the future if some variables are changed.Its
disadvantages are assumed variable and constant throughout and all services are done at a
standard price.
8 RISK EVALUATION
VARIOUS ELEMENTS OF RISKS
Resistance from customers due to quality of services offered as compared to others already in
business.
Very stiff competition from the company`s rivals who are already established and have a
substantial portion of the market.
Most customers already go for other names ;they do business with other organizations that are
already established.

SUB~ZERO MOTORS

Management problems can also be considered as an element of risk since three quarters of the
management team will new to this line of business.
8.2 MITIGAITON MEASURES TO OVERRIDE THE RISKS
Some measures have been employed to do away with possible elements of risk.these include;
Intense advertising through pamphlets ,news papers,television ,radios and social networks such
as face book.
Producing quality products that are next to non.
Employing qualified personnel from other well established organizations to employ skills they
have attained from those recognized companies.
9 CONCLUSION
9.1.1 STRENGTH
Provision of quality service.
Recruitment of skilled personnel.
Good relations with customers.
Good communication skills with customers and the provision of exceptionally good customer
care services.
STRATEGIES
Always treat customers with respect and integrity as well as to exceed their expetions.
Ability to utilize knowledge gained from short business management courses.
9.1.2 WEAKNESS
Stiff competition from those already in business.
Reliance on limited number of clients.
Challenges in meeting demands because of less capital.

SUB~ZERO MOTORS

STRATEGIES
Prepare detailed roasters to visit customers around the country marketing our products.
Website displays to promote the products and services available for customers.
9.1.3 OPPORTUNITIES
Due to our geographical location of close proximity to CBD ,great potential to success is high.
Due to diversity in our range of services,it will be possible to explore new branches in
previously seen as preffered target markets.
STRATEGIES
Contact buyers of large companies in and outside Mutare to capture giant customers.
Secure a place in the market and solidify business position before competition comes along.
9.1.4 THREATS
Other organizations may copy or even improve our style of competition thereby stiffening the
competition.
Our venture may fail in the beginning.
STRATEGIES
Build a strong and stable relationship with both suppliers and customers to ensure that they
prefer our services.
Flexibility ,credibility ,reliability and consistency.

SUB~ZERO MOTORS