Bottom line up front:
- We are working with a lender to secure a $360k loan for the property purchase and have negotiated with the seller to carry $100k. We are requesting an additional $200k loan for the purchase of the business, its assets and for some initial working capital.
- $450k - property
- $150k - business
- $15k - third party reports / closing costs
- $45k - working capital
If we find an investor to provide the whole $560k, we would be willing to discuss that as well.
Super Lube Plus BUSINESS PLAN
Prepared by:
Talon M Palmer, James H Palmer
1040 W 4th St
Benson, Arizona 85602
520.586.4645
superlubeplusaz.com
I. EXECUTIVE SUMMARY
Super Lube Plus (referred to from hereon in as the "Company") at 1040 W 4th St, Benson, Arizona 85602, is currently owned by the Masseys. We have established Hometown-520, LLC, as a Limited Liability Company with the expectation of purchasing The Company, the property where it does business and all associated assets to build the Super Lube Plus name through rapid expansion in the automotive service industry. The Company solicits financial backing in order to be able to purchase the business, property and assets.
Business Description
The Company was formed in 2016 as a Limited Liability Company under Arizona state laws. It has established itself as the go to place in Benson for oil changes. The Company also provides tire sales and service as well as light mechanic work (e.g. fluid exchanges and brakes). We will be purchasing The Company and accelerating growth in the tire sales and service area. The Company will be headed by Talon M Palmer and James H Palmer (Hometown-520, LLC)
The Company currently employs 3 full-time employees and 0 part-time employees.
Management Team
The Company has assembled an experienced management team:
Chief Operating Officer - Talon M Palmer,
- 1.5 years experience as the Manager of Super Lube Plus
- 3 years experience as service technician at Super Lube Plus
Chief Executive Officer - James H Palmer,
- 20 years as a Software Engineering Manager
- 3 years as owner / operator of pool service company
- 2 years as owner of a retail arbitrage business
Business Mission
To offer a clean, safe and friendly environment where all customers receive expert advice, efficient service and quality products at a competitive price.
Expanded Service
The Company, under new ownership, is prepared to introduce expanded tire sales and service (e.g. tire repair, replacement, mount, balance and rotation of tires). This is in addition to the main service of quick and efficient oil changes and light mechanic services.
Funding Request
The Company requests total financing of $540,000.00 over the course of 25 years, to be used for the following purposes:
The funds will be used to acquire the Super Lube Plus business, including some working capital to handle payroll for the first month after taking over the company.
Purpose Loan Amount
- $500,000 - Amount toward purchase
- $15,000 - Third Party Reports
- $25,000 - Working capital
- $1,000 - Marketing
- $10,000 - Staffing
- $14,000 - Add a lift and enclose an exterior pad for additional tire service space
Long-term debt payment is a key feature of the Company's financial plan. By adding advertising and an additional employee by the end of year 1, we expect to increase sales to fully replace the revenue being applied to the loan before the end of year 2.
II. BUSINESS SUMMARY
Industry Overview
The United States Automotive Service Market size is estimated at USD 177.51 billion in 2023, and is expected to reach USD 237.33 billion by 2028, growing at a CAGR of 5.98% during the forecast period (2023-2028)
Research shows that consumers in this industry primarily focus on the following factors when making purchasing decisions: - Ease of access
- Convenience
- Pricing
Business Goals and Objectives
Short Term:
Increase sales by 20% within the first 6 months, and 40% by the end of year 1.
Long Term:
Expand to open/purchase another Lube and light mechanic shop in Southern Arizona within the next 5 years.
Legal Issues
The Company affirms that its promoters have acquired all legally required trademarks and patents.
III. MARKETING SUMMARY
Target Markets
The Company's major target markets are as follows:
Southern Arizona locals as well as Seasonal visitors.
The estimated number of households within the Company's geographic scope is 5,400.
Promotional Strategy
There has been no marketing at all in the past. The Company will be adding Facebook campaigns as well as local paper advertising. We also plan on purchasing advertising with the local schools.
SWOT Analysis
Strengths
- Local name recognition
- Location on the main street
Weaknesses
- Lack of advertising
- No enclosed space for tire servicing
Opportunities
- Local automotive service company (Shannon's Auto Shop) recently closed down, owner retiring.
- More fleet servicing
Threats
- Economic downturns
- Other service centers moving into the area
Competition
In the automotive service industry, customers make choices based upon
- ease of access
- convenience
- pricing.
There is moderate competition within the Benson area. No other lube shops, but 6-7 mechanic shops and 2 tire shops.
The primary competitors for the business are the following:
- Del's Tire Shop
- George's Auto
- Oakley's Garage.
However, we believe that the Company has the following competitive advantages:
By focusing on oil changes and light mechanic work, we are able to provide a quick turn around for our customers. Since there is little to no diagnostics, customers get their vehicles back quickly and don’t require storage space. This optimizes the space and the competency of the employees.
Services
First-rate service is intended to be the focus of the Company and a cornerstone of the brand's success. All clients will receive conscientious, one-on-one, timely service in all capacities, be they transactions, conflicts or complaints. This is expected to create a loyal brand following and return business.