Car test center business plan

A.A.M LTD. Business Plan 2017
1
THE BUSINESS PLAN

2
Confidentiality Agreement
This agreement is to acknowledge that the information provided by A.A.M LTD
in this business plan is unique to this business and confidential; therefore,
anyone reading this plan agrees not to disclose any of the information in this
business plan without the express written permission of A.A.M LTD.
It is also acknowledged by the reader of this business plan that the information
furnished in this business plan, other than information that is in the public
domain, may cause serious harm or damage A.A.M LTD and will be kept in the
strictest confidence.
This report is a property of A.A.M LTD and is kept in high confidentiality under
the ownership of the three entrepreneurs. The use of this report is only
authorized to the relevant personnel. Any unauthorized use or duplication of
this report will be considered as illegal and such individuals will be tried in
court.
Upon request, this document is to be immediately returned to A.A.M LTD
business.
Signature 1: Mr. Maxamuud Mohammad
Name:
Signature 2: Mr. Ahmed
Name:
Signature 3: Mr. Abdirisaq
Name
Date: August 1st, 2017
This is the business plan for A.A.M LTD. The presentation of this business plan
does not imply an offering of securities.

3
TABLE OF CONTENTS
Introduction …………………………………………………………………………. - 4 -
Nature of business ………………………………………………………..…………. - 5 -
Required capital …………………………………………….…...…….……………. - 5 -
Executive summary …………………………………………………………………. - 6 -
Company description ………………………………………….……………………. - 8 -
SWOT Analysis …………………………………………………………….………. - 9 -
Marketing plan…………………………….…………………………………..……. - 10 -
Marketing Strategy…………………………………………………………………. - 11 -
Sales forecast………………………………………….…………………...…….…. - 15 -
Operational plan……………………………………….…………………...…….…. - 17 -
Management and Organization……….………….………………….……..………. - 18 -
Financial plan...……………………………………….…………………...…….…. - 20 -
Profit and Loss Statement …………………….…………………………………....Error!
Bookmark not defined.3 -
Balance sheet …………………….………………………………………………....Error!
Bookmark not defined.4 -
Cash Flow Statement……………………………….……………………..…….…. - 25 -

4
INTRODUCTION
A.A.M LTD
61 fishers way Wembley London HA0 3FN
UK
T: 0753 929 4198
Web: www.car4test.com
www.car4test.co.uk
The Innovator (3 Partners)
Mr. Maxamuud Mohammad
Mr. Ahmed
Mr. Abdirisaq

5
Nature of business
The A.A.M LTD is a service company of car testing centre and renting business that has been
planned by a group of three entrepreneurs Mr. Ahmad, Mr. Abdirisaq and Mr. Maxamuud
Mohammad to help the clients who are in need of car instructors to lean driving or who need the
cars for testing centers on rental basis.
Required capital
The initial investment required for A.A.M LTD would be up to 25,000 UK Pounds. The amount of
£25,000 will be raised through the seed capital of three partners Mr. Ahmed, Mr. Abdirisaq, and
Mr. Maxamuud Mohammad. Once the business will start then it is expected to gain more
investment as a capital from investors’ equity that are planning for their safe investments to earn
good profits by using goodwill and the business cooperation of A.A.M LTD.

6
Executive summary
The A.A.M LTD offers unique services. It is ultimately the goal of the company to be a one-stop
facility for all car testing needs, including instructor lesson etc but at this time A.A.M LTD is
offering a low cost quality car test services in Wembley London. The car test centers are
growing but the clients demanding for the car tests and the qualified instructors are also growing
in multiples. Therefore, the A.A.M LTD as a partnership business came into existence to fulfill
the needs of the car test center in the country. The A.A.M LTD is initially starting its operations
in the UK, but after two years of successful business the management is planning to expand the
car testing business to USA, Canada, Australia, and Germany as well. The capital investment is
£25000 being raised by the owners’ equity to raise the seed capital for the business.
The objective of A.A.M LTD is to achieve at least 1% of UK car test market customers in the
next five years. The A.A.M LTD is playing a role of middle man to help the customers and
instructors to get in contact with each other. The target market for the business are those people
who need the car instructors either for car tests, car booking on a specific timing, or driving
lessons in a short period of time by the car instructors.
The company is expecting to generate sales with a monthly increase of 5%. The aim of the
business is to facilitate more than 16000 customers in next five years to cover the market share
of 1% in the car test businesses in the country. In the next 5 years the company is expecting to
employ 2350 instructors as per requirements of the clients. Also the number of customers who
will be served in the beginning will be 6 customers per dat which will increase at a rate of 5%
each month.

7
Financial Highlights by Year

8
Company description
The A.A.M LTD is a registered and a service based limited liability Company in England. The
A.A.M LTD is established in UK as a car testing center and a car renting business which hear to
the contacts of the customers for their car instructor need. The company then sends the nearest
available car instructors who help the clients for their car testing or car lessons needs. The
A.A.M LTD also rents out the cars to the clients who need the cars for some specific time period
and on the rental basis. The ownership will be shared among three partner entrepreneurs – Mr.
Ahmed, Mr. Abdirisaq, and Mr. Maxamuud for the business. The A.A.M LTD is headquartered in
61 Fishers Way Wembley London HA0 3FN, United Kingdom. The A.A.M LTD is starting its
business venture from May 10, 2017 and is determined to grab the market leading shares soon.
There are thousands of people who are searching for car test centers and rental basis car
facility in UK, so A.A.M LTD has decided to facilitate the people for their car test center and rent
a cars needs. The mission of A.A.M LTD is to provide the ultimate satisfaction to everyone for
car testing and renting.
The A.A.M LTD is offering two main services; car test center services and car rental services. In
car test services, the A.A.M LTD is going to assign the instructors to the respective clients.
These instructors will further help the clients in several different ways such as providing
instructing and lean services, assigning the car tests, specifying the customized tests, delivering
the customized car test tricks. Whereas in car renting services, the A.A.M LTD is going to offer
rental services including the car rental, car sharing and car leasing services along with the
instructors. In car renting business the A.A.M LTD is further providing its renowned, affordable
yet high quality services in; business car rental services, leisure car rental services, car leasing
and sharing services. The A.A.M LTD is a startup car testing service provider which aims to
grasp the 1% of total market share in first two years which will be increased in the future with
high returns. The ultimate goal of the A.A.M LTD is to become the market leader for car testing
service providing in order to attain high level of customer satisfaction. The A.A.M LTD is
heading towards reaching the maximum market shares and clients’ satisfaction in near future.
Furthermore, the A.A.M.LTD will also provide an extra facility to provide a list of courses to be
considered in their car test center. Which means that after going through the driving classes in
the A.A.M LTD, the clients will be entitled to learn a number of things such as; Customer service
for drivers, Terminal tractor driver, Forwarder, Terminal operator, Taxi drivers, Business license
for passenger transport, Quality management etc.

9
SWOT Analysis
The SWOT analysis is the assessment of an organization’s internal strengths and weaknesses,
& the external opportunities and threats for a particular business:
Strengths: Why are customers buying our services?
Weakness: Why the customers are using our competitors; what we need to be improved?
Opportunities: Is the market expanding; are there new services?
Threats: Who are the potential competitors?
Strengths
 Training has now become an
integrated part of the driving.
 Services provided to international
transporters
 Marketing Promotions
 Potential strong links with the
Associations of international
transporters.
Weaknesses
Training centre lacks legal status
No enforcement legislation
Opportunities
Government implementation being imposed
Threats
Licensing of operators
Licensing of national and international road
passenger operators
Licensing of national and international road
freight operators.

10
Marketing plan

11
Marketing Strategy

12
Operational plan
The A.A.M LTD is limited liability car test center business venture. The A.A.M LTD is
headquartered in London for the car test services throughout the country. The instructors will be
facilitating the clients for car test services. The business will proceed two ways through
instructors. Firstly, the instructors will be conducting the car tests with the clients and secondly
the instructors will also help the clients to learn or practice the driving skills before putting
themselves to car tests. Furthermore, the A.A.M LTD will also transfer their services to car
renting facilities to clients; where the instructors will rent out the cars to them for some specific
time period as demanded and required by the respective clients. The operations are not
stopping here – the A.A.M LTD will further target the customers to other potential countries such
as USA, Canada, Australia, and Germany and so on. In the initial stages, the A.A.M LTD clients
will only be able to hire the cars with the instructors as the company doesn’t own the cars of
their own and also the number of cars will be limited. Then after a few successful business
years, the A.A.M LTD will provide the customers – the renting customers with the option of with
the drivers or without the drivers for rent. But this will be done after evaluating the driving
licenses and the profile of the customers. The A.A.M LTD is determined to provide the quality
car test and car rent services by tracking the sales and marketing goals of the company.
The competitive edge of A.A.M LTD is the car testing and instruction services throughout the
country.

13
Management and Organization
At A.A.M LTD we are very much concerned for having the right business structure. In order to
achieve our goals in a profitable ways we are ensuring the right positions for the right human
resources that will be capable of ensuring and achieving the vision, objectives and the goals of
the company.
We are intended an organizational chart to ensure that every employee knows his or her
respective place within the organization and knows who to report to whom and when the need
arises. This is operated in a way to achieving an efficient work flow without affecting the
productivity in the organization.
We are also ensuring and confirming that we recruit only competent and potential hands that
have the renowned experience of working in the car test and car renting industry and will be
able to help build our car test plus car rent business to the level we want it in the market. We are
perfectly focused for the compensation packages for our employees who are amongst the best
professionals in the industry.
Listed below is the business structure that we intend to build at A.A.M LTD after six months of
business startup;
 Chief Executive Officer
 Sales and Marketing Team
 Quality Assurance Manager
 Human Resources and Admin Manager
 Purchasing Manager
 Accountant
 Customer Service Executives
 Store Manager
 Security Guard
 Delivery Driver

14
Management Biographies:
As the A.A.M LTD is a partnership business for car tests and car rent business so the
management or the board of the directors in the A.A.M LTD will be Mr. Maxamuud Mohammad,
Mr. Ahmed, and Mr. Abdirisaq.
Mr. Abdirisaq is a graduate in computer programming and security networking. He is an
experienced professional and holding over 8 years of experience in his field. He is expected to
take part in IT, networking, and development side of the business. He will organize and control
the website and will manage the other networking and development issues in the company.
Mr. Ahmed is a driving instructor himself who has been instructing in the country from the past 7
years in his profession. Mr. Ahmed will also be responsible to monitor the instructors’ and
driving school issues of the A.A.M LTD Company.
While Mr. Maxamuud is an experienced taxi driver at Uber with years of experience in his field
He has been driving taxi since last 6 years. Mr. Maxamuud will be responsible for marketing and
research for the business. He is also responsible for the media and the conduct for the business
to organize and control the customer service issues, customer calls and the complaints or
suggestions from the customers.

15
Financial plan
Investor Equity
A.A.M LTD will not be seeking an investment from a third party at this time nor any loans from
banks or family. All expenses will come out of pocket of three entrepreneurs to form a limited
partnership company.
Exit Strategy
If the drop down rate of remains more than 5% for more than four consecutive quartes, then the
A.A.M LTD will need to liquidate their business
Key Assumptions
The projections are made for 5 years, where the starting capital is 25,000 pounds. The tax rates
are set as 20%, whereas the marketing expenses are 15%, 10%, 10%, 8%, and 6% for first,
second, third, fourth, and fifth month respectively. The number of customers to be served each
day are supposed to be 6 people and the number of days are assumed to be 26 instructor
working days in a week. The numbers of customers are expected to be increased by 5% each
month. The office rental cost is 600 for monthly installments and 600 for the onetime deposit.
The utility bills are 100 per month whereas the advertising cost is 3750 in the first year.

16
Revenue byMonth
Expenses by Month

17
Net Profit (or Loss) by Year

18
Projected Profit & Loss
FY2018 FY2019 FY2020 FY2021 FY2022
Revenue £336,850 £352,443 £368,815 £386,006 £404,056
Direct Costs
Gross Margin £336,850 £352,443 £368,815 £386,006 £404,056
Gross Margin
%
100% 100% 100% 100% 100%
Operating
Expenses
Advertiseme
nt and
marketing
£3,750 £2,500 £2,500 £2,000 £1,500
Office rent £7,200 £7,200 £7,200 £7,200 £7,200
Deposit for
office
building
£600
Utilities and
bills
£1,200 £1,200 £1,200 £1,200 £1,200
Taxes £20 £20 £20 £20 £20
Total
Operating
Expenses
£12,770 £10,920 £10,920 £10,420 £9,920
Operating
Income
£324,080 £341,523 £357,895 £375,586 £394,136
Total
Expenses
£12,770 £10,920 £10,920 £10,420 £9,920
Net Profit £324,080 £341,523 £357,895 £375,586 £394,136
Net Profit /
Sales
96% 97% 97% 97% 98%

19
Projected Balance Sheet
FY2018 FY2019 FY2020 FY2021 FY2022
Cash £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220
Accounts
Receivable
£0 £0 £0 £0 £0
Total Current
Assets
£324,080 £665,603 £1,023,498 £1,399,084 £1,793,220
Total Assets £324,080 £665,603 £1,023,498 £1,399,084 £1,793,220
Accounts
Payable
£0 £0 £0 £0 £0
Total Current
Liabilities
£0 £0 £0 £0 £0
Long-Term
Debt
Total
Liabilities
£0 £0 £0 £0 £0
Paid-in Capital
Retained
Earnings
£324,080 £665,603 £1,023,498 £1,399,084
Earnings £324,080 £341,523 £357,895 £375,586 £394,136
Total Owner's
Equity
£324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

20
Total
Liabilities &
Equity
£324,080 £665,603 £1,023,498 £1,399,084 £1,793,220
Projected Cash Flow Statement
FY2018 FY2019 FY2020 FY2021 FY2022
Net Cash Flow
from
Operations
Net Profit £324,080 £341,523 £357,895 £375,586 £394,136
Net Cash Flow
from
Operations
£324,080 £341,523 £357,895 £375,586 £394,136
Cash at
Beginning of
Period
£0 £324,080 £665,603 £1,023,498 £1,399,084
Net Change in
Cash
£324,080 £341,523 £357,895 £375,586 £394,136
Cash at End of
Period
£324,080 £665,603 £1,023,498 £1,399,084 £1,793,220

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