Subject: Investment Opportunity in Martindale Chevrolet
Dear [Investor's Name],
I hope this message finds you well. My name is Jared Brewer, and I am the manager point of contact of Martindale Chevrolet, a dealership with a strong presence in the New Madrid area. We are seeking to raise $700,000 in funding to expand our operations and capitalize on the growing demand for sub-prime financing in the automotive market.
We have a compelling business plan and a proven track record of success, with significant growth potential in the coming years. I would love the opportunity to discuss how your investment can help us achieve our goals and provide you with a substantial return on your investment.
Please let me know a convenient time for you to discuss this further. I look forward to the possibility of working together.
Best regards,
Jared Brewer
manager martindale chevrolet
573-620-5630
1. Salaries and Wages:
• General Manager: $8,000
• Sales Team (5 members): $25,000 ($5,000 each)
• Service Department (4 members): $16,000 ($4,000 each)
• Finance & Accounting (2 members): $8,000 ($4,000 each)
• Administrative Staff (2 members): $6,000 ($3,000 each)
Total Salaries: $63,000
2. Operational Expenses:
• Rent/Mortgage/investor payback:6000.00
• Utilities (Electricity, Water, Internet): $3,000
• Insurance (Property, Liability, Employee Benefits): $4,000
• Maintenance and Repairs: $2,000
Floorplan insurance and interest: 10000.00
Total Operational Expenses: $25000.00
3. Marketing and Advertising:
• Online Advertising (Google Ads, Social Media): $5,000
• Traditional Advertising (Billboards, Radio, Print): $4,000
• Promotional Events/Community Engagement: $2,000
Total Marketing and Advertising: $11,000
4. Inventory and Supplies:
• Vehicle Inventory Management: $10,000
• Parts and Accessories: $3,000
• Office Supplies: $1,000
Total Inventory and Supplies: $14,000
5. Contingency and Miscellaneous:
• Contingency Fund: $2,000
• Miscellaneous Expenses: $1,000
Total Contingency and Miscellaneous: $3,000
Total Monthly Budget Allocation: $120,000.00
Additional Considerations:
• Sales Targets: The sales team should aim to meet specific targets to cover these costs and generate profit.
• Cash Flow Management: Regular review of cash flow to ensure all expenses are covered without overextending the budget.
• Expense Monitoring: Regular tracking of expenses to identify areas where cost savings might be achieved.
• Employee Performance: Incentivize employees through performance-based bonuses to ensure high productivity.
This plan provides a balanced allocation of resources across different departments, ensuring that Martindale Chevrolet operates efficiently within its $110,000 monthly budget. Regular reviews and adjustments are recommended to adapt to changing business conditions.
Our plan to become profitable
Revenue Projections for Martindale Chevrolet
Assumptions:
• Average car sales per month: 30 cars
• Average profit per car: $3,000
• Monthly sales profit: 30 cars * $3,000 = $90,000
Expenses:
• Service expenses: $40,000/month
• General expenses: $72,000/month
• Body shop expenses: $15,000/month
Additional Income:
• Body shop profit: $20,000/month
• Repair Orders (RO’s) average: 250-300 per month
• Average profit per RO: (assuming an average profit per RO to be calculated)
Monthly Revenue Projection
1. Car Sales Profit:
30 \text{ cars} \times \$3,000/\text{car} = \$90,000
2. Body Shop Profit:
\$20,000
3. Repair Orders Profit:
• Assuming average profit per RO is $100:
\text{Average RO{\prime}s per month} = \frac{250 + 300}{2} = 275
\text{Total RO Profit} = 275 \times \$100 = \$27,500
4. Total Monthly Revenue:
\text{Total Revenue} = \$90,000 + \$20,000 + \$27,500 = \$137,500
Monthly Expenses
1. Service Expenses:
\$40,000
2. General Expenses:
\$72,000
3. Body Shop Expenses:
\$15,000
4. Total Monthly Expenses:
\$40,000 + \$72,000 + \$15,000 = \$127,000
Net Monthly Profit
1. Net Profit:
\text{Total Revenue} - \text{Total Expenses} = \$137,500 - \$127,000 = \$10,500
Annual Projections
To project the annual revenue and profit, we will multiply the monthly figures by 12.
1. Annual Revenue:
12 \times \$137,500 = \$1,650,000
2. Annual Expenses:
12 \times \$127,000 = \$1,524,000
3. Annual Net Profit:
\$1,650,000 - \$1,524,000 = \$126,000
Summary
• Monthly Revenue: $137,500
• Monthly Expenses: $127,000
• Monthly Net Profit: $10,500
• Annual Revenue: $1,650,000
• Annual Expenses: $1,524,000
• Annual Net Profit: $126,000
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