2. Confidentiality Agreement
The undersigned reader acknowledges that the information provided by Fire Pit Auto Performance
in this business plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of Fire Pit Auto Performance.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to Fire Pit
Auto Performance.
Upon request, this document is to be immediately returned to Nicholas Fire.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
4. Fire Pit Auto Performance
1.0 Executive Summary
Fire Pit Auto Performance is a small retail organization that will provide quality performance
auto parts to any auto enthusiast. We will remain small in order to offer unprecedented
customer attention.
The Market
The classic car industry continues to grow, with more than 6 million classic car collectors and 25
million classic car enthusiasts in the United States. The Outer Banks of North Carolina is home
to many car clubs, hobbyist, and vintage auto owners with ongoing needs for specialty and
performance parts for repairs, restoration and/or upgrades. Also, there is the racing side of our
community, with drag racers and those of dirt track and off road. Then, we have our
vacationers and those who travel here strictly for the car shows and bike weeks.
The Organization
Fire Pit Auto Performance is founded on the idea that maintaining satisfied customers with
quality product is essential to the financial health of the organization. With this in mind, we will
be working hard to ensure that all of their customer's expectations are exceeded in all
transactions. To maintain a presence within the auto community and close relationships to
customers, Fire Pit Auto Performance will be an active participant with the local car clubs,
racing events, and community events through participation and sponsorship.
Products, Services, and Delivery
Fire Pit Auto Performance will be both a brick and mortar company serving the Outer Banks of
North Carolina as well as offering online sales and shopping at our website. We will offer
engine and chassis and body parts for a wide variety of cars as well as a variety of accessories,
apparel and souvenirs. Safety equipment and set up equipment will also be offered. All of the
popular name brands will be offered.
Fire Pit Auto Performance is an exciting opportunity that combines a customer-centric
organization with an energetic passion for the art and mechanics of these cars. Even for those
who are not true enthusiast, it is now "cool" to have your car "tweaked out" even just for
aesthetics, and an Outer Banks vacationer always wants to take home a cool t-shirt.
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5. Fire Pit Auto Performance
1.1 Company Summary
Fire Pit Auto Performance is a start up auto performance store. Upon start up of operations
we will provide affordable new and used quality products with stand up customer service. As it
stands, it will be the only auto store of its kind on the Outer Banks of North Carolina.
2.0 Products
Fire Pit Auto Performance will sell performance auto parts to all auto enthusiasts, but will be
mostly catering to Classic, Muscle and Race cars/trucks. Products will range from engine,
chassis and body parts to accessories, apparel and souvenirs. Products will include new
parts from quality named distributers to used parts we will purchase from anyone with a quality
used part. Anyone with a reasonable used part can bring it in to receive cash (price to be
determined by condition and demand of product) or store credit. Future plans include adding
installation and repair services. We will rely on our customer's feedback and suggestions to
introduce or eliminate products.
3.0 Market Analysis Summary
Fire Pit Auto Performance will focus on the following markets:
The Local Car Enthusiast - The Outer Banks of North Carolina is home to many car clubs,
hobbyist, and vintage auto owners with ongoing needs for specialty and performance parts for
repairs, restoration and/or upgrades.
The Tourist - Dare County, North Carolina alone was visited by approximately 354,464,649
vacationers in 2010 with the peak months of May through October with as many passing through
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6. Fire Pit Auto Performance
and shopping from the Currituck side of the Outer Banks. We will offer store apparel, stickers and
souvenirs and the Tourist can continue to be patrons via ecommerce.
The Local Racer - Eastern North Carolina has several drag, stock car, modified, and off-road race
tracks.
The Internet Shopper - Our web-based store will allow purchases and inquiries to be made
from any locale within the United States.
- Bike Week, Bike Fest and Bike Rally, Shamrock Car Show, Outer
Hosted Events
Banks Car Show and many others.
4.0 Strategy and Implementation Summary
Our strategy is based on serving the classic auto enthusiast, racer or performance junkie. Our
area is full of owners that can't get specialty products or services locally. The Outer Banks does
not yet have a store of this kind. Auto Enthusiast here have only your everyday Advance Auto
(1), Napa (3), and Carquest (1). As many classic, muscle and race car enthusiast as the Outer
banks has living here and visiting here especially, it's a fail proof market if it's done and done
right.
4.1 Marketing Strategy
The marketing strategy for Fire Pit Auto Performance is constructed to cover (2)two markets,
local enthusiast being one and tourists being the other. Below is a breakdown of our marketing
strategies:
Grand Opening - A Grand Opening is one of the most successful of in-store promotions. With
manufacturer support, a large number of door prizes can be given away while instantly building
a mailing list and generating customer interest.
Events - We will be attending as many events as possible, and we also plan to coordinate an
event or events of our own. Some events may generate profits for the business and some are
strictly for charity, but all events will be great advertisement and help us to become an asset to
our community.
Advertisement - We plan on running limited space ads in the local newspapers and on the
local radio stations to keep our name, location and phone number in front of the consumer. We
would like to figure advertising in seasonal brochures, rental agencies, and aerial ads over the
beach in year 2 or year 3 of operation.
Sponsorship - There are many sponsorship opportunities on the Outer Banks that
are beneficial to the community as well as good advertisement. Some examples of these would
be the sponsorship of school organizations and teams, recreational leagues, local charity
organizations and many other community events.
Promotional Products - A line of premium Fire Pit Auto Performance apparel will be designed
and produced in very short runs to reduce inventory costs. These can be sold or given away
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7. Fire Pit Auto Performance
with qualifying purchases to further expose the Fire Pit Auto Performance name. We will have
decals manufactured with various Fire Pit Auto Performance logos. We will include the decals
with all of the orders that we ship.
Website- We have established our e-commerce business at www.fpautoperf.com and are listed
on Face book at www.facebook.com/pages/Fire-Pit-Auto-Performance/137508522975923.
This channel of business will increase the customer base, sales potential and service
opportunities.
4.2 Sales Strategy
Our extensive product knowledge and the increasing knowledge of our customers and their
vehicles are two of the most important tools used to build sales. We will offer the best
possible return/exchange policy to build trust with our customers and maintain retention and
loyalty; return/exchange policies vary based on nature of the parts. We also offer our used
parts purchasing program as an option to help customers afford higher priced products by
applying the cash value of their used part towards the purchase price of the new part.
4.3Milestones
The milestones table and chart show the specific detail about actual program activities that
should be taking place during the year. Each one has its manager, starting date, ending date,
and budget. During the year we will be keeping track of implementation against plan, with
reports on the timely completion of these activities as planned.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Finish Business Plan 2/1/2011 2/28/2011 $0 Nick Owner
Corporate Set Up 2/15/2011 2/28/2011 $125 Nick Owner
Business Bank Account 2/15/2011 2/28/2011 $100 Nick Owner
Internet Store 2/1/2011 2/28/2011 $60 Nick Admin
Promotional Items 3/1/2011 3/31/2011 $200 Nick Marketing
Marketing Program Starts 3/15/2011 3/31/2011 $100 Nick Marketing
Leasing Commercial Property 3/1/2011 4/30/2011 TBD Nick Owner
Grand Opening 4/1/2011 5/31/2011 TBD Nick Marketing
Radio/Print Ads 4/1/2011 5/31/2011 TBD Nick Marketing
Plan Review/Comparison 6/1/2011 7/1/2011 $0 Nick Admin
First Break Even Month 8/1/2011 9/30/2011 $0 Nick Admin
Totals $585
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8. Fire Pit Auto Performance
5.0 Management Summary
We are a small company owned and operated by Nicholas and Melanie Fire, husband and wife,
under "Fire Pit Auto Performance" as a limited liability company.
Nicholas Fire - Manager
Nick will be the main salesperson. He will also be responsible for shipping and receiving,
inventory management, and the marketing and promotion of in store products. Nick will also
handle Internet sales and marketing. He will assist with record keeping, cost containment, and
will be in charge of the computer system and perform all of the desktop publishing for the
company.
Melanie Fire - Manager
Melanie will maintain the company records and be in direct communication with the accountant
and other advisors. She will assist as needed with sales, shipping and receiving, and customer
service related issues.
The initial management team depends on the founders themselves, with little back-up. We plan
on hiring additional personnel as the need for them arises, and as we have the ability to pay
them.
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9. Fire Pit Auto Performance
6.0 Financial Plan
Inventory and rent are the two major expenses, while depreciation is another significant
cost that will increase as the company develops.
We want to finance growth mainly through cash flow. We recognize that this means we will
have to grow slowly.
It should be noted that the owners of Fire Pit Auto Performance do not intend to take any
profits out of the business until any long-term debt that has been incurred is satisfied.
Whatever profits remain after the debt payments will be used to finance growth, mainly
through the acquisition of additional inventory.
Table: Financials
Financials
Year 1 Year 2 Year 3
Beginning Balance
Opening Balance Cash & Checking $500 $5,863 $12,237
Plus Money Received
New Investment $2,143 $4,286 $8,400
New Loans $0 $0 $0
Sales $64,146 $84,156 $115,156
Other $0 $0 $0
Subtotal Money Received $66,289 $88,442 $123,556
Less Money Spent
Direct Costs
Direct Cost of Sales $45,118 $66,159 $96,156
Other Costs of Sales $0 $0 $0
Normal Operating Expenses
Payroll and Payroll Taxes, Benefits, Etc. ($0) $0 $0
Rent and Utilities $12,000 $12,000 $12,000
Sales and Marketing Expenses $1,200 $1,300 $1,400
Other Operating Expenses $0 $0 $0
Other Outflows
Payments of Taxes $2,609 $2,609 $2,609
Debt Payments $0 $0 $0
Purchase of Assets $0 $0 $0
Other $0 $0 $0
Subtotal Money Spent $60,926 $82,068 $112,165
Ending Balance
Ending Balance Cash and Checking $5,863 $12,237 $23,628
Profit Before Interest and Taxes
Sales $64,146 $84,156 $115,156
Less Cost of Sales ($45,118) ($66,159) ($96,156)
Gross Margin $19,028 $17,997 $19,000
Less Operating Expenses ($13,200) ($13,300) ($13,400)
Profit Before Interest and Taxes $5,829 $4,697 $5,600
Net Cash Flow $5,363 $6,374 $11,391
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12. Fire Pit Auto Performance
6.1 Projected Cash Flow
A three year projected Cash Flow is detailed in the table and chart following. Monthly projected
Cash Flow for year 1 is available for review in the Appendix.
Fire Pit Auto Performance plans to operate on a cash basis with vendors the first year,
therefore, no Accounts Payable for the first year. As credit is established, we assume that in the
second and third year 40% to 50% of monies owed to vendors will be reflected in Accounts
Payable.
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