1. Business Plan – 2015
By Automated Dealer Centers, LLC.
“Changing the Way the World Buys Cars”
Jim Eagle
carspreferred@aol.com
Autoport
2. 2
CONFIDENTIALITY STATEMENT
The information contained in this document is being provided by Jim Eagle. All of it is confidential. In proceeding to
view this information, the reader agrees not to disclose it to another party without the express written permission of
Jim Eagle. The only exception from this disclosure prohibition would be information that was already in the public
domain prior to the reader’s receipt of this document.
Upon request by Jim Eagle, this document copy is either to be returned or destroyed. If the latter option is taken, the
reader is asked to inform Jim Eagle of successful destruction.
Jim Eagle may be reached through the following addresses and telephone numbers:
Post: Suite 101, 6145 East Cave Creek Road Phone: (928) 261-6628 or (928) 446-2727
Cave Creek Arizona, 85331 E-mail: carspreferred@aol.com
This document represents a business plan for Autoport. It is not an offering of securities.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
3. 3
TABLE OF CONTENTS
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Executive Summary 4 Corporate Management 24
Business Concept 6 Project Rollout Schedule 25
Organizational Information 7 Expenditures & Funding 26
Mission & Objectives 8 Revenue Forecast 27
The Service Delivery Mechanism 9 Personnel Budget 28
Service Delivery 11 Operating Budget 29
Marketing Mix – Placement, Price & Positioning 16 Profit-and-Loss Statements 30
Marketing Mix - Promotions 17 Balance Sheets 31
An Irresistible Selling Proposition 19 Cash Flow Statements 32
Competition – Alternative Ad Media 21 Appendix – Supported Vehicle Makes 33
Competition – Dealership Ad Expense Profile 22 References 35
Market Potential 23
4. 4
EXECUTIVE SUMMARY
The Autoport is a state-of-the-art, interactive advertising and lead generation medium for new
car sales. Automobile dealers pay a recurring subscription fee for their business to be featured
by the Autoport, and for opportunities to connect with potential car buyers that interact with
it. Autoports are to be located within popular areas characterized by high-density commercial
activities, such as shopping malls. They are unattended, marvelous assemblies of electronics
that beckon passers-by to stop, look and interact. In essence, what the Autoport does is
enable potential car buyers to do things that, until now, are only possible by visiting a physical
car lot. These things include looking at cars from the inside and the outside, evaluating their
stated specifications, experiencing a simulated test drive that mimics the actual handling
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
characteristics of the real vehicle, and performing various preparatory tasks that are essential, and lead up to, a car purchase. For
car buyers, the Autoport represents convenience and thorough service. Car dealers and sales managers know that most car buyers
would prefer to evaluate a vehicle at a more pleasurable and exciting venue such as a mall, rather than proceed to a car lot.
Each Autoport is contained in a physical structure that is akin to an elaborate in-mall kiosk. It has a footprint of about 400 sq. ft. At any
given time, an Autoport can accommodate seven inquiring visitors. Interacting with the Autoport comes at no cost to a visitor. But
before enjoying the Autoport experience and benefiting from its various services, a visitor must swipe his driver's license at a terminal
within the Autoport. Valuable information for car dealers extends beyond what can be gleaned from a driver's license. It includes
knowledge of how the visitor used the Autoport, revealing his preferences and decision-making tendencies. Information on Autoport
users are warm sales leads. Each car dealer that subscribes to the advertising services of the Autoport becomes entitled to receive
the continuous stream of Autoport visitor information that gets collected during each day that it is in operation. Apart from car brand
and dealership advertising, as well as sales lead generation, the Autoport has a bonus service to offer new car dealers. This is the
ability to interact live via webcam with visitors of the Autoport, while they are experiencing its various services. Car sales managers,
who remain at their respective dealer establishments, would be able to carry on a customer conversation that may ultimately lead to
a sale, right then and there.
5. 5
EXECUTIVE SUMMARY
The corporation behind the Autoport is Automated Dealer Centers, LLC. (ADC), organized and operating in the State of Arizona. Its
primary shareholders include Jessyca Eagle and Jim Eagle, a daughter-and-father tandem. Both of them have had a passion for
improving people’s experiences in selecting and purchasing cars. Jim has been in the car sales industry for decades. Jessyca, as she
was growing up, has routinely seen her father at work. They know what pains car buyers suffer from when visiting car lots – they would
rather go to the dentist than visit one, even if they really need a car. It is their intention to make the car-buying experience more
exciting and pleasant for people. Having conceived of the Autoport as an invention, the Eagles have sought U.S. patents for it.
ADC seeks an infusion of $2,000,000 from one or more external investors. In return for this, the investors can be granted up to 49% of
the authorized corporate shares. This equity infusion will enable ADC to finalize the commercial design of the Autoport and
commence its manufacture. Within 12 months of completing the acquisition of project financing, ADC would have deployed six
Autoports throughout the country. The very first one, of course, would be situated at one of the candidate locations in Arizona.
When fully subscribed, each Autoport will be collecting $10,000 in monthly advertising fees from each of 30 new car dealerships. This
amount is an extremely sound investment for dealerships that operate in the vicinity of high-pedestrian traffic malls – where they can
expect potentially 33,000 visitors passing through each day. By the end of the first year of operations, ADC would have achieved
gross revenues in the amount of $5.4 million. By the end of the fifth year of operations, there would be about 1,000 Autoport
installations throughout the country and gross revenues would reach $2.7 billion.
The greatest category of operating expense for ADC is salaries. 1,000 Autoport installations will require regular upkeep efforts from an
appropriately-sized team of qualified support personnel, in order to keep them in tip-top operating condition, and truly attractive
and useful to potential car buyers.
Net profit margin during the first year of operations is anticipated to be at 33 percent. This will improve to 49 percent by the fifth year.
Throughout the first five years of its commercial operations, ADC expects to generate in excess of $2 billion for its shareholders.
Investment payback is actually achievable quite early, during the first few months of the second year of operations.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
6. 6
BUSINESS CONCEPT
An Autoport is an advertising and lead generation platform for new car dealers. It also offers the car-buying
public a more convenient way of evaluating and purchasing a new vehicle. Positioned in an area with high
concentrations of pedestrian traffic, such as shopping malls, an Autoport serves as a virtual showroom for a
number of new car dealers. An Autoport is an automated, state-of-the-art, virtual reality-driven interactive
platform wherein a visitor gets virtually transported into the dealer showroom. There, the visitor may evaluate the
specifications, performance and other relevant attributes of new car models of any make. The Autoport also
facilitates, on the spot, all the steps that a car buyer needs to take prior to making a vehicle purchase decision.
These include an appraisal of the visitor’s current vehicle, getting an online credit check report, securing an
instant approval for an automobile loan, an looking for the best insurance coverage and rates.. The Autoport also
has the facility to allow a visitor to interact with a live new car sales manager, on demand.
A visitor’s use of the Autoport comes at no cost. The convenience of using it stems from the ability to evaluate
vehicle attributes and simulate the experience of driving any number of new car models and makes from just a
single location. No longer will vehicle purchasers need to locate and proceed to a number of new car lots. The
operation of the Autoport is paid for by nearby car dealers. Each dealer with a “presence” in an Autoport
compensates ADC via a monthly subscription. Within a given Autoport, and for each make of vehicle, only one
new car dealer enjoys the privilege of advertising exposure. In addition to this, subscribing car dealers also gain
access to any information voluntarily submitted by Autoport visitors. The information would include all data
captured on a driver’s license and the visitor’s behavior and selections made during his use of the Autoport. It is
this body of information that would serve as high quality customer leads for the car dealers to work on.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
The
Autoport
Car
Dealers
Car
Buyers
Pay for advertising
and car buyer
information collection
Use the car evaluation
and pre-purchase
process services for free
7. 7
ORGANIZATIONAL INFORMATION
“Autoport” refers to the marketing trade name of the company that sells this business service. An “Autoport” is also the physical
structure that functions as the instrument for delivering the service. Behind Autoport is the corporate entity Automated Dealer
Centers, LLC.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Legal Entity
• Automated Dealer
Centers, LLC. (ADC) is to
be incorporated as a C-
Corporation, domiciled in
the State of Arizona. Its
primary shareholders are
Jessyca Eagle and Jim
Eagle.
Office Location
• ADC maintains its
corporate office at the
following address: Suite
101, 6145 East Cave Creek
Road, Cave Creek
Arizona, 85331.
Patents
• ADC has filed with the U.S.
Patent and Trademark
Office (USPTO) a patent
application for the
Autoport structure. Its
status is currently
“pending,” with the
application numbered
US 069642.
Trademarks
• ADC intends to register
the trademark “Autoport”
with the USPTO.
8. 8
MISSION & OBJECTIVES
Objectives
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Mission
• Autoport (ADC) aims to
change the way that the
world buys cars. It will
become a new way for
dealers to attract buyers
and for consumers to
shop for and purchase
vehicles.
• ADC will provide the best
and most unique car
shopping and purchasing
experience in the market.
• The Autoport concept will
be sought after by
dealers due to its ease of
use, reliability and its
ability to produce sales.
• Autoports will become to
the automobile industry
what ATMs are to the
banking industry.
1
• Set up Autoports in six high-pedestrian traffic shopping malls within 12 months.
2
• For each Autoport, obtain advertising subscription contracts with 30 new car dealers.
3
• Recruit, train and mobilize a staff of highly professional employees.
4
• Achieve corporate revenue of $ 5.4 million within 12 months.
5
• Expand the geographic reach of Autoport. Set up 1,000 sites within five years.
6
• Achieve corporate revenue of $ 2.7 billion by the end of the fifth year of operations.
9. 9
1
2
3 4
5
6
THE SERVICE DELIVERY MECHANISM
The Autoport Structure
This innovative concept of selling cars revolves around the presence
and operation of Autoport structures within areas that have a
continuously substantial stream of pedestrian traffic. Ideal locations
are popular open areas characterized by high-density commercial
activities. Autoport structures are unattended, specially-designed
and built vestibules whose catchy appearances are guaranteed to
attract the attention of passers-by, stoke their curiosities and beckon
them to approach for a more intimate look. The Autoport
commands attention through the following physical characteristics
and attributes:
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
1
• Prominent, rising pillars that appear to set up a
stage
2
• Illuminated ports of entry that tell people where
to approach
3
• LED display that shows rotating car make logos,
free services offered, and Autoport visitor stats
4
• Neon lighting that makes it stand out from
everything else in the vicinity
5
• 14 HD displays collectively capable of rotating 30
dealer advertisements every 15 seconds
6
• Virtual reality pods (VRP) that serve to replicate a
new automobile
10. 10
THE SERVICE DELIVERY MECHANISM
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
First Contact with the Autoport
1. Through a “highway ramp,” visitors are invited to enter the
Autoport and approach its central control tower, equipped with
several touch-screen entry monitors.
2. Upon selecting an available entry monitor at the central tower,
the visitor is asked to scan his driver’s license. The monitor then
asks the visitor what he would like to do, subsequently directing
him to approach an available virtual reality pod (VRP).
3. The visitor is then directed to proceed to a waiting VRP, guided by
flashing pathway lights embedded on the floor.
4. The VRP, which is constructed as a mock-up car chassis, detects
the presence of the visitor. This triggers the lifting of its roof and
side panels, prompting the visitor to enter and be seated in the
“driver’s seat.”
5. Seated within the VRP, the visitor is surrounded by a panorama of
screens that will visually overwhelm him. Initially, it will show a
multitude of vehicles that represent the wide selection available
at the Autoport. In “vehicle demo mode” the screens will simulate
the windshield, side windows and roof of a selected vehicle.
Highway Ramp
Central Control Tower
Touch-screen
Entry Monitors
Virtual Reality
Pod (VRP)
11. 11
SERVICE DELIVERY
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Interacting with the Autoport
1. The VRP offers something for almost all of the visitor’s senses, which permits the effective evaluation of a “new car.” These sensory
inputs are:
2. Seated within the VRP, the visitor is surrounded by a mockup steering wheel, transmission controls, dashboard, simulated
instrument panels as well as control knobs and buttons. These have enough functionalities for the visitor to use in “driving around”
from within the VRP, being able to simulate driving experiences such as acceleration, cornering and braking.
Sights – Through the interior display panels, the
visitor can witness the roads and scenery
outside of the “vehicle.”
Sounds -- Music, road noise and other vehicles
“passing by” would be heard through the VRP
stereo speaker system. The VRP system also
provides verbal instructions to the visitor via this
channel.
Scents -- A “new car smell” will be obvious to
the visitor as soon as he gets seated in the VRP.
Temperature – Each VRP will have its own cabin
temperature control system, which the visitor
may adjust to his liking.
12. 12
SERVICE DELIVERY
First Impressions in the Virtual Reality Pod (VRP) – A Multitude of Cars
Upon settling into the Autoport VRP, the user is overwhelmed by what is initially presented to him. While he is made to experiences a
visual sensory overload, it is both fun and pleasant. A multitude of promotional vehicle images is paraded before him. He is then
prompted to specify the car make and model that he wishes to evaluate. The VRP system homes into the selection, revealing a true-
to-detail simulation of the view from within the chosen vehicle.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Interior of the VRPThe VRP Chassis Make and Model Gallery
13. 13
SERVICE DELIVERY
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Functionalities of the Autoport
While seated within the VRP, the visitor has access to the following functionalities:
The Autoport has
a video game
feature that is
intended to
attract avid
video game
enthusiasts who
are themselves
potential car
buyers.
Taking a test
drive through a
simulated
highway, in a
selected vehicle;
experiencing
that vehicle‘s
acceleration,
braking and
cornering
attributes.
Appraisal of the
visitor’s current
vehicle.
Performing an
instant, online
credit check.
Procuring an
instant
automobile loan
approval.
Canvasing
among several
insurance
companies for
the best
coverage and
rate.
A live webcam
teleconference
with a sales
manager at a
nearby
dealership, for
ad hoc
assistance and
inquiries.
14. 14
SERVICE DELIVERY
The Autoport Video Game
Visitors have the option of engaging in an all new, exciting
virtual reality-driven video game. When the Autoport is in this
mode of operation, visitors are pitted against a car sales
manager in an effort to purchase a vehicle at the price and
terms that they desire. The game bears plenty of twists and
turns, and features a “buy” option that permits the player to
actually purchase the vehicle that he/she is negotiating for.
Young adult video game enthusiasts are expected to
embrace this feature, drawing them into the Autoport. These
are potential car buyers who likely have the financial
capability to purchase vehicles.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Prototype Screenshot of the Autoport Video Game
15. 15
SERVICE DELIVERY
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Visitor Takeaways from the Autoport
Upon going through the multi-sensory experience provided
by the Autoport, the visitor stands to walk away with the
following useful documents:
Beyond the Autoport
Ultimately, the Autoport visitor has one additional option. He
may ask a sales manager from a nearby automobile dealer
to bring over, within ten minutes, a new vehicle near the
Autoport location. The visitor would then have a final
opportunity to test-drive the real vehicle and decide if he
wishes to purchase it right there and then. This is why the
Autoport has been dubbed as “the missing link between the
internet and the car lot.”
1
• A download or print-out of the visitor’s shortlisted
new car selections
2
• Vehicle price and payment terms quotations
3
• Credit report and current vehicle trade appraisal
4
• Financing option (purchase or lease)
5
• A special “Autoport Savings Coupon,”
representing up to $1,000 off the negotiated price.
16. 16
MARKETING MIX – PLACEMENT, PRICING & POSITIONING
Placement
Autoport will be installed at high-pedestrian traffic locations. The primary
candidates are shopping malls, although other retail locations such as
superstores and community activity centers are also viable venues. Another
criteria for a candidate Autoport site is the sufficiency of multiple new car
dealerships in close proximity.
Pricing
Car dealers that wish to maintain a presence in an Autoport will be expected to pay
ADC $10,000 monthly in subscription advertising fees. This rate is highly competitive with
traditional advertising options, which are not interactive and do not permit the car
dealers to instantaneously engage the customer at an Autoport.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Positioning
The Autoport is an advertising and lead generation medium that provides new car dealers with a greater return potential in
exchange for their marketing & selling budget. Unlike traditional forms of advertising, the Autoport is an interactive medium,
providing car dealers with opportunities to personally connect with customers instantly. During such a live interaction, a dealer
stands a chance to win a customer’s favor and close a sale, as if the customer actually walked into the dealer’s car lot.
17. 17
MARKETING MIX - PROMOTIONS
Promoting the Autoport requires addressing the needs of two different types of audiences:
Promoting the Autoport to the New Car Dealer Community
ADC sales teams will communicate directly with each new car dealer that is deemed a candidate Autoport subscriber. Members of
the sales team will be car sales-literate, technology savvy professionals who are capable of taking dealer sales managers through
the process of utilizing the Autoport system. They will highlight the Autoport ability to facilitate the engagement of a potential car
buyer through a start-to-finish sales process via “remote presence.”
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
The New Car Dealer Community The Car Buyer Population
18. 18
MARKETING MIX - PROMOTIONS
Promoting the Autoport to the New Car Buyer Population
In order to make the Autoport advertising services truly attractive to new car dealers, it must also be popular among car buyers.
Following are the various activities that ADC would actively implement in order to build up customer awareness and stimulate
interest in experiencing car shopping with the Autoport:
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Press Releases
A massive flurry of
press releases will be
flooding the market
via major local and
national media as
early as six months
ahead of
commercial launch.
Site Openings
Each Autoport site
opening is a
significant
marketing event,
the allure of which
will be enhanced
by the involvement
of celebrities.
Web Ads
Buyers searching for
new cars online will
be presented with
Autoport ads,
demonstrating what
Autoports offer and
beckoning them to
visit a nearby
Autoport site.
Self-promotion
Using its mere
presence, with its
dominant yet
tastefully designed
digital
advertisements and
signage, the
Autoport will attract
the interest of mall
passers-by.
Print Ads
Local papers and
inserts are still used
by dealers to
advertise
themselves.
Autoport ads will sit
alongside these,
giving dealers
another option to
reach car shoppers.
TV & Radio
Local TV and radio
spots are used by
dealers to advertise
sales promotions.
Autoport will use
these channels to
make known the
installation of new
Autoport sites.
Web Presence
Some Autoport
services may be
available via its
website. Digital
coupons may be
issued online,
applicable as a car
purchase discount
during an actual
Autoport visit.
19. 19
AN IRRESISTIBLE SELLING PROPOSITION
Exclusivity of Presence
Competition among car dealerships has always been highly
intense, regardless of the general state of the economy. This is
true even for dealerships that sell the same make and range of
car models. As such, these dealers are constantly on the
lookout for novel opportunities to advertise themselves in order
to outdo their competition. An EXCLUSIVE privilege to maintain
advertising exposures within high-pedestrian traffic locations is
one such opportunity, and an Autoport would make it possible.
The ability for car dealerships to immediately interact with car
buyers making use of the Autoport is a bonus attribute. In doing
so, they would be able to capture the attention of potential car
buyers. They can then commence building and nurturing the
customer relationship, lest the customers be left to their own
devices and chance upon another dealer when they exit the
Autoport.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Sales
territory
of GM
Dealer B
Acquiring the privilege to advertise on an Autoport is highly
desirable. For example, there may be an Autoport installed in a
given mall, and within ten minutes’ driving distance from such
are multiple dealers of new Ford vehicles. ADC would only
permit one of those dealers to have an advertising presence in
the nearby Autoport. By default, the opportunity to acquire the
privilege would be offered to the closest Ford dealer. However,
if such dealer turns down the opportunity, the privilege would
be offered to alternate Ford dealers, progressing outwards,
geographically, from the Autoport location.
An advertising slot in an Autoport will be
a coveted opportunity. It is highly likely
that a dealer who would decline to avail
of Autoport services may not be
presented with such a privilege again.
This is an incentive for dealers to
immediately latch onto the opportunity
to stake their presence in the Autoport.
20. 20
AN IRRESISTIBLE SELLING PROPOSITION
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
The purple balloons represent individual Ford dealerships in the area shown. There may be an Autoport in a
popular mall, such as Scottsdale Fashion Square, marked by the yellow star. Ford dealer number 3 appears to
be in the immediate territory, and is the default choice for an Autoport subscriber. If it declines the Autoport
advertising opportunity, the privilege will be assigned to alternate dealers in geographical progression – in the
order of dealer 1, 6 and 4 in this example.
Sales
territory
of GM
Dealer B
21. 21
COMPETITION – ALTERNATIVE AD MEDIA
Being an instrument of advertising and customer lead generation for local new car dealers, the Autoport directly competes with
traditional channels such as the following:
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Traditional advertising channels have the objective of enticing potential car buyers to visit dealer showrooms. This comes at a cost to
the customer, in terms of setting aside time to visit a local dealership. Also, if the customer is bent on comparing vehicles of various
makes, then the amount of time investment gets multiplied, as does the expense of driving or commuting from one dealership to the
next.
The Autoport, on the other hand, virtually transports customers to dealer showrooms. Being located in shopping malls, the Autoport
can take advantage of two types of customers:
• Intentional customers, who proceed to malls knowing about the presence of an Autoport and the car shopping conveniences
that it provides.
• Chance customers, who are at the mall for other shopping activities, dining out, or whiling away their time, who may just chance
upon the Autoport and get their interest piqued. Car dealerships seldom benefit from visits by these “impulse” customers.
Interacting with the Autoport does not cost the customer anything. In fact, its various benefits, such as the ability to shop for multiple
vehicle makes, free pre-purchase process facilitations, and co-location with other customer points of interest in shopping malls, saves
the customer a whole lot. Customers would develop a preference for the Autoport, in lieu of visiting traditional car lots.
Local Radio Television
Print
Advertisements
Billboards Websites
22. 22
COMPETITION - DEALERSHIP AD EXPENSE PROFILE
The following advertising statistics regarding new car dealerships, taken from the latest available report (2013) published by the
NADA, illustrate just how the $10,000/month (or $120,000 per year) Autoport subscription charge compares with existing media
expenditures.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Newspapers
15%
Radio
15%
Television
23%
Direct Mail
11%
Internet
26%
Other
10%
Average Advertising Expenditure
by Existing Medium
As a
percentage
of total
average
advertising
expenditures,
the annual
Autoport
subscription
charge
represents 11
percent of the
total.
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
Newspapers
Radio
Television
Direct Mail
Internet
Other
Autoport
Large New Car Dealer Advertising
Expenditure Profile vs. Prospective
Autoport Advertising Charges
23. 23
MARKET POTENTIAL
U.S. New Car Dealership Sales
The U.S. recession of 2008 had a severe impact on new car dealers. Five years
has passed since that event, and the new car sales industry has made significant
recoveries. Consumer confidence in the U.S. economy has been re-established,
and discretionary spending has been observed to rise. The American people are
once again spending on large-ticket items, which include new vehicles.
Increased purchases of new vehicles appear to have been aided by a
significant lowering of interest rates, which had the effect of making a financed
purchase option a lot more attractive. As of the end of 2014, the five-year
compound annual growth rate in revenues of the new car industry was
registered to be 8.4 percent. This observation is consistent with the new vehicle
sales – optimism index data from the National Automobile Dealers Association
(NADA). Such growth is expected to be sustained for the succeeding five years.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
No. of People
Employed
1,190,000
No. of Business
Establishments
22,800
Aggregate Industry
Revenue
$799 billion
5-year Compound
Annual Growth
8.4 percent
Following are key statistics of the U.S. New Car Dealers Industry (NAICS 44111) as of December 2014:
NADA New Vehicle Sales-Optimism Index Chart
24. 24
CORPORATE MANAGEMENT
Jessyca Eagle
CEO and Founder
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Jim Eagle
Operations Director
Jessyca is a 24-year old registered nurse. She earned her
Bachelor of Science degree in Nursing at the University of Saint
Mary in Leavenworth, Kansas.
Since the age of fourteen, she has been committed to
bringing a new and more enjoyable method of purchasing a
new vehicle to the marketplace. This passion was the result of
the influence of her father, who is a respected veteran in the
new car sales industry.
It is her persistence, drive and imagination that has advanced
the Autoport endeavor through final conceptualization and
prototyping.
Jim has over 40 years of experience in the automotive industry .
He began his career as a parts runner at the age of 18. At one
point in time, Jim owned and operated one of California's
largest auto leasing brokerages.
Jim is skilled in all aspects of the automotive sales industry. He is
currently affiliated with one of the banking industry’s leading
automotive vehicle lease funders. Jim is, at present, that
organization’s number one lessor of vehicles in the United
States.
Jim is dedicated to seeing his daughter realize her dream of
"changing the way the world buys cars.”
25. 25
PROJECT ROLLOUT SCHEDULE
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Task
No.
Activity
1
Secure investor funding
2
Procure services of corporate attorney
3
Formalize investor commitments
4
Procure services of corporate accountant
5
Consult with patent attorney regarding IP
6
Generate blueprints for the prototype Autoport structure
7
Recruit an IT manager
8
Build the website and Autoport information systems
9
Procure all essential software licenses
10
Bid out the mass production of Autoport structures
11
Establish the corporate office
Task
No.
Activity
12
Commence assembly plant operations
13
Recruit sales manager and staff
14
Sign up car dealers into Autoport subscriptions
15
Select candidate Autoport sites and secure leases
16
Commence advertising and public relations campaigns
17
Recruit celebrity talent and media coverage for launch
18
Plan and execute first site launch at peak buying season
19
Plan and execute succeeding 999 site launches
20
Key Milestone: Commercial launch of Autoport
21
Six Autoport installed at various sites
Time
Zero
Month
6
Month
12
26. 26
EXPENDITURES & FUNDING
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Capital Expenses
Amount
Administrative Office Equipment
$15,000
Information Technology Infrastructure
$10,000
Autoport Structures Acquired
$600,000
Build-out of Corporate Office & Assembly Plant
$10,000
Total Capital Expenses to be Depreciated
$635,000
Prepaid Expenses
Business Organization Expenses
$15,000
Recruitment of Corporate Attorney
$5,000
Recruitment of Corporate Accountant
$0
Consultation with IP Attorney
$25,000
Creation of Prototype Autoport Blueprints
$5,000
Recruitment of IT Manager
$0
Initial Autoport System Build (including website)
$100,000
Assorted Software Licenses
$50,000
Recruitment of Sales Manager & Team
$0
Procurement of Initial Autoport Site
$100,000
Celebrity Talent & Media Coverage for Launch Event
$50,000
Total Prepaid Expenses to be Amortized
$350,000
Total Start-up Expenses
$985,000
Six-month Working Capital Requirement
$889,350
Total Minimum Startup Funding Requirement
$1,874,350
Jim and
Jessyca
Eagle
51%
External
Investors
49%
Corporate Share Allocations
Start-up Funding
Target
$2,000,000
in equity infusions
Over several
years of concept
development,
Jim and Jessyca
Eagle have
together put into
this endeavor
hundreds of
thousands of
dollars worth in
the form of sweat
equity.
27. 27
REVENUE FORECAST
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Max.
No.
of
Dealers
Subscribed
per
Autoport
30
Average
Autoport
Slot
Occupancy
Rate
100%
Autoport
Subscrip=on
per
Dealer
per
Month
$10,000
Autoport
Site
Occupancy
Fee
per
Month
$25,000
Year 1
Year 2
Year 3
Year 4
Year 5
No. of New Autoports Installed this Year
6 24 170 300 500
Cumulative No. of Autoports Installed by End of Year
6 30 200 500 1,000
No. of Dealers Subscribed to Autoport Services in Prior Year
- 180 900 6,000 15,000
No. of New Dealers Subscribed to Autoport Services this Year
180 720 5,100 9,000 15,000
% of the Year Newly Installed Autoports are Operating
25% 50% 50% 50% 50%
Revenue from Autoports Installed in prior Years
$0 $21,600,000 $108,000,000 $720,000,000 $1,800,000,000
Revenue from Autoports Installed within the Year
$5,400,000 $43,200,000 $306,000,000 $540,000,000 $900,000,000
Total Revenues
$5,400,000 $64,800,000 $414,000,000 $1,260,000,000 $2,700,000,000
Autoport Site Occupancy Costs - Installed in Prior Years
- 1,800,000 9,000,000 60,000,000 150,000,000
Autoport Site Occupancy Costs - Installed this Year
450,000 3,600,000 25,500,000 45,000,000 75,000,000
Total Autoport Site Occupancy Costs
450,000 5,400,000 34,500,000 105,000,000 225,000,000
Gross Profit
4,950,000 59,400,000 379,500,000 1,155,000,000 2,475,000,000
28. 28
PERSONNEL BUDGET
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Year:
1
2
3
4
5
Officers
Chief Executive Officer
$120,000 $126,000 $220,500 $275,625 $344,531
Director of Operations
$120,000 $126,000 $220,500 $275,625 $344,531
Employee Groups
Sales Unit (Manager & Staff)
$300,000 $600,000 $1,200,000 $1,500,000 $1,500,000
IT Manager
$120,000 $126,000 $132,300 $138,915 $145,861
Corporate Accountant
$4,800 $5,040 $5,292 $5,557 $5,834
Corporate Attorney
$24,000 $25,200 $26,460 $27,783 $29,172
Tech. Services/Support Team $60,000 $120,000 $480,000 $1,200,000 $2,400,000
Total Remuneration Budget
$748,800 $1,128,240 $2,285,052 $3,423,505 $4,769,930
Chief Executive
Officer
Jessyca Eagle
Sales Unit
TBD
Information
Systems Unit
TBD
Director of
Operations
Jim Eagle
Corporate
Attorney
TBD
Corporate
Accountant
TBD
30. 30
PROFIT-AND-LOSS STATEMENTS
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Year:
1
2
3
4
5
Total Autoport Revenues
$5,400,000 $64,800,000 $414,000,000 $1,260,000,000 $2,700,000,000
Total Autoport Site Occupancy Costs
$450,000 $5,400,000 $34,500,000 $105,000,000 $225,000,000
Gross Profit
$4,950,000 $59,400,000 $379,500,000 $1,155,000,000 $2,475,000,000
Total Operating Expenses
$1,778,700 $9,024,418 $50,582,060 $145,664,533 $306,492,111
EBITDA
$3,171,300 $50,375,582 $328,917,940 $1,009,335,467 $2,168,507,889
Pre-tax Profit
$2,927,633 $49,651,916 $326,494,273 $1,004,028,467 $2,158,200,889
Profit After Taxes
$1,782,929 $30,238,017 $198,835,012 $611,453,336 $1,314,344,341
$5 $65
$414
$1,260
$2,700
$2 $30
$199
$611
$1,314
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
1 2 3 4 5
Millions
Year of Operation
Revenue and Profit Stages
Total Autoport Revenues
Gross Profit
EBITDA
Pre-tax Profit
Profit After Taxes
31. 31
BALANCE SHEETS
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
As of end of Year:
1
2
3
4
5
Assets
Current Assets
Cash
$2,921,595 $30,163,279 $215,161,958 $798,122,294 $2,065,773,635
Accounts Receivable
$225,000 $2,700,000 $17,250,000 $52,500,000 $112,500,000
Prepaid Expenses
$233,333 $116,667 $0 $0 $0
Total Current Assets
$3,379,929 $32,979,945 $232,411,958 $850,622,294 $2,178,273,635
Long-term Assets
Fixed Assets
$635,000 $3,035,000 $11,535,000 $26,535,000 $51,535,000
Accumulated Depreciation
-$127,000 -$734,000 -$3,041,000 -$8,348,000 -$18,655,000
Total Fixed Assets
$508,000 $2,301,000 $8,494,000 $18,187,000 $32,880,000
Total Assets
$3,887,929 $35,280,945 $240,905,958 $868,809,294 $2,211,153,635
Liabilities & Owner's Equity
Liabilities
Accounts Payable
$105,000 $1,260,000 $8,050,000 $24,500,000 $52,500,000
Total Liabilities
$105,000 $1,260,000 $8,050,000 $24,500,000 $52,500,000
Owner's Equity
Paid-in Capital
$2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Retained Earnings
$0 $1,782,929 $32,020,945 $230,855,958 $842,309,294
Earnings
$1,782,929 $30,238,017 $198,835,012 $611,453,336 $1,314,344,341
Dividends
$0 $0 $0 $0 $0
Total Owner's Equity
$3,782,929 $34,020,945 $232,855,958 $844,309,294 $2,158,653,635
Total Liabilities & Owner's Equity
$3,887,929 $35,280,945 $240,905,958 $868,809,294 $2,211,153,635
32. 32
CASH FLOW STATEMENTS
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Year:
1
2
3
4
5
Operations
Net Profit
$1,782,929 $30,238,017 $198,835,012 $611,453,336 $1,314,344,341
Depreciation
$127,000 $607,000 $2,307,000 $5,307,000 $10,307,000
Amortization
$116,667 $116,667 $116,667 $0 $0
Change in Accounts Receivable
-$225,000 -$2,475,000 -$14,550,000 -$35,250,000 -$60,000,000
Change in Accounts Payable
$105,000 $1,155,000 $6,790,000 $16,450,000 $28,000,000
Net Cash Flow from Operations
$1,906,595 $29,641,683 $193,498,679 $597,960,336 $1,292,651,341
Investing & Financing
Assets Purchased or Sold
-$985,000 -$2,400,000 -$8,500,000 -$15,000,000 -$25,000,000
Investments Received
$2,000,000 $0 $0 $0 $0
Dividends and Distributions
$0 $0 $0 $0 $0
Net Cash Flow from Investing & Financing
$1,015,000 -$2,400,000 -$8,500,000 -$15,000,000 -$25,000,000
Cash at Beginning of Period
$0 $2,921,595 $30,163,279 $215,161,958 $798,122,294
Net Change in Cash
$2,921,595 $27,241,683 $184,998,679 $582,960,336 $1,267,651,341
Cash at End of Period
$2,921,595 $30,163,279 $215,161,958 $798,122,294 $2,065,773,635
Note: Mandatory dividend disbursements have yet to be taken into account. This table and chart
nevertheless demonstrates the cash generation potential of the enterprise.
$3 $30 $215
$798
$2,066
$0
$500
$1,000
$1,500
$2,000
$2,500
1 2 3 4 5
Millions
Year of Operation
Cash Generation Potential
Net Cash Flow from Operations
Net Cash Flow from Investing & Financing
Cash at End of Period
Expon. (Cash at End of Period)
33. 33
APPENDIX - SUPPORTED VEHICLE MAKES
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Acura Audi BMW Cadillac Chevrolet Chrysler Dodge Fiat
Ford GMC Honda Hyundai Infiniti Jaguar Jeep Kia
Lexus Lincoln Mazda
Mercedes-
Benz
34. 34
APPENDIX - SUPPORTED VEHICLE MAKES
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
Mini Mitsubishi Nissan Scion Subaru Toyota Volkswagen Volvo
Land Rover Ferrari Lamborghini Maserati Bugatti Peugeot Maybach Bentley
Rolls-Royce
35. 35
REFERENCES
IBISWorld. (2014). New Car Dealers in the US: Market Research Report. Melbourne: IBISWorld.
National Automobile Dealers Association. (2015). NADADATA Annual Financial Profile of America's Franchised New-Car Dealerships
2014. McLean: NADA.
Autoport - "Changing the Way the World Buys Cars" - Business Plan 2015
