This business plan proposes launching an online used car company called Carvana to capitalize on the growing e-commerce market and preferences of millennials and baby boomers. By selling vehicles entirely online and removing dealerships, the company aims to reduce costs by $1,500 per vehicle and pass the savings to customers in the form of lower prices, premium inventory, and no hidden fees. The plan outlines targeting the online market, resources needed such as computing and customer service staff, and a timeline to set up the company website and assess effectiveness over two months before fully launching the online used car business.

1. Business Plan (Carvana Car Company)
Vincent Botchwey
Strayer University
Bus 508
Professor James Ruether
November 21, 2016

2. What is a Business Plan?
 A formal statement defining one’s business
goals, the reason one think can be achieved, and
how the person is going to achieve them
 A business plan is a great way to plan for
lunching ones business, as well as accounting for
and planning for some of those risks one might
face

3. What way my proposed business action
is an innovative idea
 Target Market ( E-Commerce)
 Selling Online vs. Dealership. My Pick is Online,
Why?
 Considering customer needs and wants
 Considering the generation of our customers
(Millennials and baby boomers)
 The need to meet our Competitors market strategy

4. Why I think this idea will benefit the business
in terms of return of investment (ROI)
 On time Service
 Quickest to market
 Direct competition
 Reduce employee intake
 Cut cost of services
 More flexible room for our customers to make their best
choice

5. Vision of my idea that explains the value
to the company
 This year 2016….We are going 95% online to meet our valued
customers demand and expectation. How?
 No dealership and No middle Men: Cutting out the dealership translates
to $1,500 of lower cost for us on every vehicle we sell. What does that
mean for you? We pass the savings on to you in four ways: lower
prices, premium cars, a better experience, and no hidden fees.
 Cars you can count on: Every car in our inventory is certified

6. Vision of My idea that explains the value
to the company
 Purchase how you want: Whenever, however, and as fast as you like
 Trade-In your vehicle: Get an appraisal online without ever going to a
dealership
 Test-Drive: We bring the test drive to you; experience carvana vehicles
for 7days
 7-Day Return Policy: Test own it for a week, take time and see if the
car fits with your life. Get it checked out by a trusted Mechanic
 Questions? Call us: 1-800-619-0000. We have 24hrs customer services,
7-days in a week, 52 weeks in a year, 365 days in a year, 8760 hrs in a
year, 525,600 minutes in a year , and over 31million seconds a year

7. Resources Needed
 Computers
 Online Technician
 Customer Service Representative
 Logistics (transportation, inventory control clerk,
Shipping clerk)
 Human resource manager (job training/administration)
 Accountant(managed the financial in-flow and out-flow)

8. Interorganizational Relations
 Partnership: form partnership with another company that deal in similar but not
identical business with ours. For example, will partner with automobile repair shop to
service our vehicle
 Outsourcing: Contacting another company to handle specific aspect of our business. For
example, 24hrs customer services firm to handle our company calls during the closing
operating hours.
 Networking, Associations and Alliances: Network provide the opportunity to belong to a
business community with the benefits of sharing resources and enjoying peer support.
Trade association allows business owners and staff members to attend conferences to
continue learning to discover new methodology. Marketing Alliance allows companies to
advertise for loss by splitting costs on shared campaigns . Example, through social
networks.

9. Timeline For Completion
Due to technological assets needed to setup
effective online business site, the
recommendation is that
We spent one month to setup the company
site with our team of experts
Another one month to assess and examine
the effectiveness to customers; then we are
set!!!!
Hurray!! Carvana go E-commerce!

10. References
 https://www.carvana.com/
 http://faculty.caes.uga.edu/pthomas/hort4091.web/busplan.pdf
 Mike, Figliuolo (2015): Creating a Business Plan. Retrieved from:
https://www.lynda.com/Business-Skills-tutorials/Creating-Business-
Plan/373107-
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