1. Car Solver - Business Plan
Hi Everyone, I am Denson. Last time, we talked about the operation plan and hr plan for C
Presented by:
Denson Liu

2. What we want to deliver?

3. Location

4. Products & Services
Tires
Auto Repairs
Auto Body Repairs

5. Organizational Structure
Store Manager
Assistant Manager
Salesperson A
Salesperson B
Salesperson C
Back Shop Manager
Tire Manager
Tire Technician A
Tire Technician B
Auto Body Manager
Auto Body Technician A
Auto Body Technician B
Mechanical manager
Automotive Diagnostic Technician A
Automotive Diagnostic Technician B

6. Target Market
Nearby Residents
White collars
Senior Drivers

7. Competitors

8. Positioning Map Price (High) Car Solver Value of Products/Services
Car Dealer
Car Solver
Fountain Tire
KalTire
Costco
Value of Products/Services
(Low)
Value of Products/Services
(high)
OK Tire
Canadian Tire
Price (Low)

9. Promotions

10. Car Solver Financial Budget
Items
Cost (in Canadian Dollars)
Bank Loan
1,860,000
Owner’s Equity
450,000
Other Shareholders’ Equity
Total
2,760,000
D/E ratio = 2.07

11. Break-even Analysis

12. Sensitivity Analysis By number of customers per day: Number Cust/day
Average 5 year Profit
Net Payback
IRR
Year 5 Owner Comp 24
(112,289)
(1,341,083)
N/A
54,122 27
2,137
1,545,930
8.5%
30 (base case)
179,522
5,965,572
24.7%
188,194 33
202,916
6,291,781
26.6%
193,822 36
301,403
8,656,423
34.5%
248,695

13. Avg purchase/customer
Sensitivity Analysis
By avg$ per customer:
Avg purchase/customer
Average 5 year Profit
Net Payback
IRR
Year 5 Owner Comp
200
11,263
1,689,466
9.2%
54,122
210
56,895
2,594,299
13.3%
100,797
220 (base case)
179,522
5,965,572
24.7%
188,194
230
148,158
4,905,225
21.9%
163,891
240
193,790
6,060,688
25.8%
188,834

14. Other Financials 2017 2018 2019 2020 2021 Sales 2,059,200 2,625,480
2,945,789
3,154,940
3,378,940
Net Income
(73,699)
4,380
131,619
185,701
264,631
Dividends -
41,662
84,827
Owner’s Compensation
50,000
51,000
52,020
94,723
138,949

15. Questions?