COURSE NO : IPE 4208
COURSE NAME : BUSINESS COMMUNICATION
SESSIONAL.
Business Plan for Online Based Car repair Shop
Submitted by-
ID :13.02.07.106 Year / Sem : 4th/2nd
13.02.07.108 Section : B
13.02.07.117 Department : MPE(IPE)
Ahsanullah University Of Science & Technology
Page | 2
Content
Title Page no
1. Executive summery……………………………………
 1.1 Business Name & Location
 1.2 Problem present in present
market
 1.3 Our target
 1.4 Management Team
 1.5 Vision
4-5
2. Problem…………………………………………………….
 2.1 Problems regarding auto repair
shops
6
3. Solution…………………………………………………….
 3.1 Solutions for founded problems
7
4. Business Model…………………………………………
 4.1 How we will make money
o 4.1.1 Online Application
o 4.1.2 Repair shop
 4.2 How we will get money
 4.3 Distribution channel of our
product
 4.4 Flow of product & service
 4.5 Flow of Cash
8-12
5. Secrets………………………………………………………
 5.1 Big secrets
13-14
Page | 3
6. Marketing And Sales………………………………….
 6.1 Marketing Background
 6.2 Industry- wide information
o 6.2.1 Car parts and accessories
shops in Bangladesh
o 6.2.2 Industry Trends
 6.3 Marketing Strategy
o 6.3.1 Marketing Mix
15-17
7. Competition………………………………………………
 7.1 Present state of competition
o 7.1.1 Competitors
 7.2 SWOT analysis
18-20
8. Operational Plan……………………………………….
 8.1 Production
o 8.1.1 Product
o 8.1.2 Service
 8.2 Location
 8.3 Legal Environment
 8.4 Management Team
21-22
9. Cost Analysis……………………………………………..
 9.1 Analysis of Expenses
o 9.1.1 Startup Expenses
o 9.1.2 App development
Expenses
o 9.1.3 Machinery and
Equipment Expense
o 9.1.4 Inventory Expense
o 9.1.5 Motorbike and Related
Expense
o 9.1.6 Management and
Employee Expense
o 9.1.7 Sum of various
categories
 9.2 Break Even Analysis
10. Current Status…………………………………………
23-29
30
Page | 4
Executive summery | 1
1.1 Business Name & Location
The name of our business will be “E-repair”. The motto will be “Quickest repair at affordable
price”. The location of the business center is farmgate, Dhaka.
1.2 Problem present in present market
Auto repair shop typically does the following jobs such as review damage reports, prepare cost
estimates and plan work. Remove damaged body parts, including bumpers, fenders, hoods,
grilles and trim. Realign car frames and chassis to repair structural damage. In Bangladesh, auto
repair service is available but not sufficient .There is no on spot services are available in our
country. Also service via online is totally not available in Bangladesh. As a result when faced with
minor problem which can be solved in less than an hour the car owner has to take his car to the
nearest garage, bargain with the sales man about price and after that get the desired repair.
Figure: Frequency of problems
Which may take up to 2-3 hour. Also when searching for nearest garage. Traffic law may cause
unnecessary harassment. From graph we see most of the frequent problem faced in our
country are smaller problem.
All these can be solved easily by a mechanic in a short period of time.
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Frequency of problems
Frequency
Page | 5
1.3 Our target
Our service will provide online based repair service. By which customer will be able to contact
to our garage via mobile application and state his requirement. After that a repair team will
dispatch from the store to the customer. And repairing will be done. As a result customer
wouldn’t have to search for garages. He will just wait beside road and help will come to him.
And from the app he will also know approximate how much cost it will take. So he wouldn’t
have to bargain. Also a huge amount of time and effort will be saved.
1.4 Management Team
For management, we will have 3 department.
Account and finance department we will have one executive officer. For mechanical sector we
will have, 4 mechanic. For server maintenance one IT worker will be needed. We will take a
person who has strong background on sales, and also many years’ experience on dealership.
We would hire mechanics who has experience on automobile, specifically the auto repair and
parts sales industry.
1.5 Vision
At first with limited resource 1 shop will be opened. With increase of popularity and profit, the
expansion of business will follow.
 The number of service vehicle will be increased
 At start only private car repair will be provided. In future motor cycle, Heavy weight
truck repair will also be provided
 New shops in different location for expansion of working area
 Addition of larger trucks for major repair on spot
 Addition of on-spot Car wash system
CustomersDelivery
Inventory
Local
stores
Local
distributors
Page | 6
Problem | 2
2.1 Problems regarding auto repair shops
Auto repair shop typically does the following jobs such as review damage reports, prepare cost
estimates and plan work. Remove damaged body parts, including bumpers, fenders, hoods,
grilles and trim. Realign car frames and chassis to repair structural damage.
In Bangladesh, auto repair service is available but not sufficient .There is no on spot services are
available in our country. For this, many people face various problems on road. Main problem we
face in our country regarding auto repair shop are given below.
1. Very limited and premium on spot service is available.
2. Auto repair shops are placed in distant location.
3. Shops are mainly clustered at one location.
4. Transferring car to the repair shop.
5. Legal issue faced on the road.
6. Damaged idle car on busy road.
7. Customers are exploited due to knowledge gap.
8. Major problem due to minor problem.
Page | 7
Solution| 3
3.1 Solutions for founded problems
Our auto repair shop is first E-base shop in Bangladesh. We face various problems and difficulties
on road as mention earlier. Our shop will mostly solve the current problems faced on road.
1. Our e-shop will provide service all level of customer and all type of behavior.
2. The distance of location is not problem for our repair shop at any location. Our repairman
will go on spot by motorbike and give service to damage car in short time.
3. No need to drag car or any vehicle to the automobile repair shop. As our service will
provide on spot repair for our target customers so that unwanted time loss will be
reduced.
4. No legal issues will be faced by the customers such as case, fine etc because of the moving
of damage vehicle to the repair shop for repair job. The automobile will stay in one place
5. For instant repair of damaged vehicle on busy road, traffic jams will not be created.
6. In our app, we will provide fixed price for damage part and repair that’s why customer
will not be exploited of price. Which is a common practice of local shops in our country
7. For our service there is no need to move damage vehicle that’s why no possibility to
accident or major part failure.
Page | 8
Business Model | 4
4.1 How we will make money
The main sources of our income are the payment we get from our customers as service charge.
The next source of income is the parts we provide to our customers. We will make some profit
by selling it to the customers. The last source of income is the salvage we get by selling the
damaged parts. Main two thing of our income will be -
4.1.1 Online Application
This is an era of technology. World is moving very fast and to coupe up with the world we also
need to move fast, think fast. In this time of internet if business aren’t connected with world
wide web then we will fall behind in an instant. This Online merge will be our main source of
income. We will use an online app which will be available in iOS and android. This app will allow
customer to connect with us. This app will be more like an Uber App.
Working style:
 After encountering problem. The user will open the app
 At first the customer will choose where is he located by GPS or self-choice
 Then he will go to the menu
 In the menu there will be various problem and repair type showed with cost
 Customer will choose what kind of repair he/she need.
 Then he/she will confirm and Repair team from the shop will dispatch
 If the user’s problem isn’t present in the menu there will be an “others” icon by which
he/she will be available contact with the shop and state what kind of problem has
emerged
Application development & maintenance
The app will need continuous supervision. Otherwise interaction with customer will not be
smooth. And as this app will be the main jewel of the business plan so perfection is desired. For
this some things will be needed,
Server: Server will be used for the application’s connection to the internet. It is the most vital
thing. At first server maybe smaller in size. But with time and more customer this server may
needed to be get bigger. Or customer will face buffering during connection. All the data will be
Page | 9
stored in the Server. As the server size will be bigger it is feasible to have own server rather
than renting one. At most two IT operator will be needed for server maintenance
Application Development: The application will be developed by a renowned IT firm. Our
business will buy the developed application form them. There will be contract with them for
future development and yearly maintenance.
Domain: Domain will be needed for the application and also for our web address.
4.1.2 Repair shop
We will also provide repair in the shop. Heavyweight repairing and other as usual repair will be
done on the shop. Because as we are renting a place already why not use it to its full potential.
We will have repair man present in the shop already for outgoing work. So new repair man for
shop will not be needed.
Server
client client client
IT team
Domain
Page | 10
4.2 How we will get money
Most the payments we get are in cash. Our cash flow will be person to person in short on hand
cash flow. Further payments in near future we will try to add to online payment service or other
payment methods such as Bikash or other payment methods such as card system etc.
4.3 Distribution channel of our product
The products that we will provide for repair service will be collected from our inventory storage.
We will usually collect products from nearby stores. For extensive parts, we will make order
through local suppliers. To distribution of the parts to customers we will use bikes. The parts for
inventory will be carried by trucks. We will carry various parts in full truck load system to minimize
the transportation cost.
Some car parts and accessories shops in Bangladesh with whom we will collect our products:
1. NAVANA
2. EXCUTIVE MOTORS
3. S.h. Trading Corporation
4. Ali Engineering
5. Taher Corporation
Customer repairman Business
CustomersDelivery
Inventory
Local
stores
Local
distributors
Page | 11
4.4 Flow of product & service
The given diagram shows the movement of the products from manufacturer to end user for our
business.
Figure : Product flow diagram
Manufacturer
Spare car parts
Tools & lubricants
Distributor
Local Distributor
Product Delivery
Shop
Page | 12
4.5 Flow of Cash
The given diagram shows the movement of the cash in our business.
Figure: Cash flow diagram
Purchase of
damaged parts
Application
maintenance
Local Distributor
Shop
Utility cost
Employee salary
Page | 13
Secrets | 5
5.1 Big secrets
 Our main secret is “on spot repair system”. Form talking with various car owner we sort
out the most frequent problems occurs in a car over the year.
Figure: Frequency of problems
Among those problem we see almost 80% problem are minor problem which can be
solved on the spot. Because of these small problems cars aren’t needed to be dragged to
repair shop.
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Frequency of problems
Frequency
Page | 14
 Our next big secret is we will use an online based system to connect with customers.
Which is totally new in our country’s perspective. In our country the car owner get
exploited by various repair shop on regular basis. The car owner doesn’t want to move to
a whole new shop with his car problem and bargain about price usually.
Figure: pie chart of Customer thought about exploitation
From customer survey we see about 73% of the customer thinks they are taken
advantages of while emergency car repairing. We will provide relative cost data to the
customer so that they won’t be exploit by or won’t feel advantages were taken over them.
Also from the app they will also be able to find if their requirement can be fulfilled by us.
 There will an option available “Contact with the repairman”. By this the car owner will be
able to connect with repairman directly. So if he/she has a unique problem or any other
special quarry he/she can easily tell it. Also they will be able to know where is his/her
serviceman currently situated right now how much more time is needed.
 We will provide damaged parts exchange policy. In repair if new part is required customer
will be able to sell his defective part to us for a discount on the new part. This way
Customer will get a satisfaction which will influence him to contact more with us. This
damaged parts will be used for other purposes.
73%
27%
Customer thought about exploitation
Exploited
Not exploited
Page | 15
Marketing and Sales | 6
The automobile industry is one of the most important in the world. The demand for automobiles
in Bangladesh is rising with each passing day. So the maintenance of auto mobile is crucial. For
this auto mobile repair market is emerging day by day.
6.1 Marketing Background
The market of automobile parts and accessories is increasing day by day. At present, people are
very busy. That’s why any types of vehicles are necessary to reach their destination and also
necessary all types of vehicles parts and servicing center. Overall it is estimated that the total
retail market for hardcore automobile part products is $1.5 billion annually and it still continues
to grow.
The only real threat to our venture would be a similar new entry to the marketplace. This
opportunity may be described as one ready and waiting for the first entrant who arrives with a
well-conceived plan, sufficient industry experience, and the required capitalization.
The number of cars and motorized vehicles is increasing rapidly in Bangladesh despite the lack of
infrastructure. Vehicle repair shop has become an important sector in the market. Most of the
auto repair shops are situated in Tejgaon, Agargaon, Karawnbazar etc.
6.2 Industry- wide information
6.2.1 Car parts and accessories shops in Bangladesh
Some car parts and accessories shops in Bangladesh and their specification are given below:
 NAVANA
Navana group is one of the largest private sector groups in Bangladesh and has a strong
and distinguished business history. They started their journey in 1953.
 Romel Motor
They are the main retailer and wholesaler of car windshields. Also provide other car parts
 Sarif Trading Corporation
They are one of the oldest importer and wholesaler of bearings since 1978.
 Ali Engineering
Ali engineering specialize in repairing all kinds of diesel machineries parts.
Page | 16
 Taher Corporation
They are importer, wholesaler and retailer of all kinds of automobile suspension parts.
6.2.2 Industry Trends
A number of basic trends are changing the dynamics of the automobile industry. They include:
 A 25 percent increase in car prices over the last five years
 A growing supply, demand and profit margin for loaded used cars
 The changing dynamics of vehicle ownership
 The explosive growth of leasing
 The need for a broader range of dealer profit centers
 The dilution of the traditional dealer franchise system.
6.3 Marketing Strategy
6.3.1 Marketing Mix
Product, placement, promotion and price are elements of marketing mix. This elements of
marketing mix are correlated tools that worked together to achieve company’s good selling and
servicing position.
Product/service
•Car spare parts
•Repair
Place
•farmgate
Promotion
•facebook
•Online
•Poster
Price
Reasonable price
Fixed price
Marketing Mix
Page | 17
Product:
Our products are every type of parts of any vehicles. These parts include accessories, body kits,
air intakes and conversions, brakes, car audio, bulbs, auto alarm system, video, exhaust, car
interior, ground effect kit, tail lights, head lights, performance parts, ignition systems, spoilers,
police light sound, suspension door kits and wheels. We will provide customer good,
sophisticated product as we can. These are advertised via internet and locally so that people are
concerned about our product.
Pricing:
Price is important for any business. The business may increase or decrease totally depends upon
the price of the products. We must ensure that our price to be reasonable. Beside these, we will
be aware to provide satisfactory service.
We will sell our products on the basis of quality. We will give fixed price for all parts in the app so
that customer will be able to take important decision before servicing. We will also take service
cost from our customer for our satisfactory service.
Placement:
Place represents the location where products can be stored and sold. We will build our
Distributor center in farmgate because we can easily and rapidly reach from one place to another
place. Beside this we will be able to collect spare parts rapidly.
Promotion Strategy:
Promotion represents all of the communications that a marketer may use in the market place.
Promotion has four distinct elements – advertising, public relations, word of mouth and point of
sale. We will advertise our product through internet, poster, mouth to mouth, leaflet etc.
The three basic objectives of our promotion are:
1. To present product and service information to targeted consumers and customers.
2. To increase demand among the target market.
3. To differentiate a product and create a brand identity.
Page | 18
Competition | 7
7.1 Present state of competition
Currently the repair shops for car repair mostly provide as usual repairing facilities. Most of
them do not provide on spot repair of any kind. Only premium service provider like Executive
motors, AD car museum etc. they only provide these kind of service to premium cars like BMW,
Mercedes, Audi not for Toyota, Nissan, Mitsubishi. Which are the most common cars in the
road. So it can be easily said that the competition will not be that much stiff.
7.1.1 Competitors
There are two type of competitors which will present. Direct and indirect. Direct competitors
will be those who have similar repair service system. And may increase their system in future
when our business may become a threat to them.
As for indirect competitors repair system which aren’t actually similar to ours. But they may
take away some of the customer from us.
Direct competitors
 Executive motors
 Sal-Sabeel Cars
 AUTO museum
 Progress motors
Indirect competitors
 Local repair shops
 Provider’s customer care
Page | 19
7.2 SWOT analysis
To know the strength, weakness, opportunity and threats of our plan SWOT analysis was done.
The SWOT analysis of E-repair shop-
Strength
•Online service
•Price
•Quick Response
Weakness
•Major repair
•limited working area
•low number of
transports
Opportunity
•Expand service area
•Major repair on spot
•increase transport
number
Threat
•Sudden entry of
competitors
•Increasing price of
parts
Page | 20
Strength:
 We will provide Online based service which is first time in this country
 Customer will get the product with reasonable price
 On spot repair system
 Quick response time
Weakness:
 Major repairs cannot be done on spot
 Service is provided in limited area (only Dhaka)
 Low number of transports for on spot repair for which limited number of on spot repair
can be done at a time
Opportunity:
 In future expand in the segments such as small vehicles for larger repairs on spot
 Expand service area
 Increase number of transportations.
Threat:
 Sudden entry of larger competitors in the market
 Increasing price of parts
Page | 21
Operational Plan| 8
The Automobile Shop will be engaged in the business of providing automobile parts and other
automotive services to the customers. Our E-repair shop will have the ability provide service and
product of almost any domestic or foreign automobile parts to the customers required. The shop
will provide the general repair of automobiles for all segments of market. Our shop will provide
extensive service to the customers such as in case of emergency like battery down or tire blast
can be fixed at anywhere in this target area with the help of our online based service thus the
app. We will generate revenues from both the sale of mechanic labor and from after-market
replacement automobile parts. The online based automobile work shop will intend to maintain
an extensive marketing campaign that will ensure maximum visibility for the business in its
targeted market.
8.1 Production
8.1.1 Product
The product we will sell will be after service replacement of auto mobile parts. We will not
produce any parts rather parts will be collected from local distributors. For exclusive parts orders
will placed via local shops and dealers. For most common parts, we will buy them at wholesale
rate in batch according to market demand. We will use our garage thus main shop as our
inventory. We will integrate suppliers. Parts will be collected from loyal and renowned supplier
which will guarantee quality of our product.
8.1.2 Service
The service will be the maintenance and repair of automobiles. Our shop will have some
employees at shop for any repair that comes to the shop. For online based service, our repairmen
will go to spot via motorbike and provide required service.
8.2 Location
Our physical shop will be placed in such area through which we will be able to provide services
to ay distant areas such as Farmgate. We will use routing method to identify the required location
of our shop. For our shop Foundation strength should be the first consideration. In order to
support the heavy lifts and other weighty equipment needed for auto repair, the foundation must
have at least a four-inch thickness. Ceiling height should be 12 feet to ensure adequate clearance
for lifts of vehicles during service. Our shop will have about 1500 square feet. Our Shop will have
adequate electric supply for repair service.
Page | 22
8.3 Legal Environment
A domestic firm must follow the laws and customs of its home country. These laws determine
the markets firms may serve the prices they can charge for their goods, and the cost of necessary
inputs such as labor, raw materials, and technology. For opening any shop, a one must follow
some rules such as shop deed agreement with the owner of the shop. We will have TIN document
for out shop. For health and safety, we will follow ISO 9001 and 10001. We will have insurance
policies for our shop, employees and motorbikes.
8.4 Management Team
We will develop a strong management team that will allow us to execute on this exciting idea.
First, we need a person who has strong background on sales, and also many years’ experience on
dealership. He will have some experience in team work and leadership capabilities. Another
person who’s experience on automobile industry, specifically the auto repair and parts sales
industry. The incredible breadth of skill sets and knowledge that the management team
possesses will allow our company to accomplish its lofty sales goals. For management, account
and finance department we will have one executive officer. For mechanical sector we will have,
mechanic. For server maintenance one IT worker will be needed.
Business
Managment
& finance
IT Mechanical
Page | 23
Cost Analysis | 9
9.1 Analysis of Expenses
9.1.1 Startup Expenses
Startup Expenses Cost
Legal (Trade license) BDT 6,000
Tax BDT 10,000
Insurance BDT 2,400
Marketing BDT 50,000
Transportation BDT 1,00,000
Shop rent BDT 2,40,000
Security BDT 1,00,000
Total startup expenses BDT 4,68,400
9.1.2 App development Expenses
App development Cost
Server BDT 1,00,000
App development and upgrade BDT 1,00,000
Cooling system BDT 60,000
Total BDT 2,60,000
Total Start up expense = 4,68,400+ 2,60,000
=7,28,400 BDT
Page | 24
9.1.3 Machinery and Equipment Expense
Machinery and equipment Cost
Working capital and equipment BDT 2,50,000
Store furniture BDT 30,000
Total machinery and equipment BDT 4,80,000
9.1.4 Inventory Expense
Inventory Item Cost
Tire * 20 BDT 50,000
Head Light *4 BDT 16,000
Back light *2 BDT 9,000
Front windshield *2 BDT 16,000
Rare windshield*2 BDT 13,000
Semi joint * 2 BDT 11,000
Ball Joint*2 BDT 5,000
Shock absorber Front* 2 BDT 18,000
Shock absorber Rare*2 BDT 10,000
Shock absorber mounting * 2 BDT 3,600
Brake Pad*4 BDT 11,200
Brake show*4 BDT 8,000
Miscellaneous BDT 80,000
Total BDT 2,50,800
Page | 25
9.1.5 Motorbike and Related Expense
Motorbike and related Cost
Baja Discover 100cc*4 BDT 5,18,000
Legal*4 BDT 60,000
Insurance *4 BDT 1,000
License*4 BDT 28,000
Total BDT 6,07,000
Startup total asset= Total machinery and equipment+ Total Inventory + motorbike
= 4,80,000+ 2,50,800+ 6,07,000
=13,37,800 BDT
9.1.6 Management and Employee Expense
Management and Employee Cost
Manager BDT 1,80,000
Mechanic*4 BDT 3,84,000
IT BDT 1,20,000
Total BDT 6,84,000
Page | 26
9.1.7 Sum of various categories
Category Cost
Salary BDT 6,84,000
Total Start up expense BDT 7,68,400
Startup total asset BDT 13,37,800
Electricity and power consumption BDT 1,00,000
Safety BDT 10,000
Maintenance BDT 50,000
Total BDT 29,50,200
9.2 Break Even Analysis
Variable cost:
Product cost = BDT 2,50,800
Product sell =50*4*12= 2400/yr
Inventory size=50
Service on workshop=6*365=2190
Service on spot= 1000
Total service=service on workshop +Service on spot
=2190+1000
=3190
Service charge= 250/car
Total service charge= Total service * service charge
= 3190*250
= BDT 7,97,500
Page | 27
Variable cost=(product cost* yearly quantity /inventory size)
=(BDT 2,50,800*2400/50)
=BDT 12038400
Fixed cost:
Fixed cost= Total Start up expense+ Total machinery and equipment+ motorbike
= BDT 7,28,400+ BDT 4,80,000+ BDT 6,07,000
= BDT 1815400
Revenue:
Selling price= Product cost+ product cost *2% Profit
= BDT 12038400+ 2,40,768
= BDT 12279168
Revenue= selling price + service charge
=BDT 12279168 +BDT 7,97,500
=BDT 1307668
Page | 28
You would need to sell 4,193 units in order to cover your fixed costs. If you sell your
anticipated 2,400 units then your profit/loss would be -776,200.
Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit
0 0 0 1,815,400 -1,815,400
1048 5,711,383 5,257,533 1,815,400 -1,361,550
2096 11,422,765 10,515,065 1,815,400 -907,700
3144 17,134,148 15,772,598 1,815,400 -453,850
4192 22,845,530 21,030,130 1,815,400 -0
5240 28,556,913 26,287,663 1,815,400 453,850
6288 34,268,295 31,545,195 1,815,400 907,700
7337 39,979,678 36,802,728 1,815,400 1,361,550
8385 45,691,061 42,060,261 1,815,400 1,815,400
9433 51,402,443 47,317,793 1,815,400 2,269,250
Page | 29
SUMMARY OF INPUT
Total fixed costs 1,815,400
Variable cost per unit 5,016
Sales price per unit 5,449
Anticipated unit sales 2400
Page | 30
Current Status | 10
As our business is not established yet we are working on some targets. Form the information
we collected and the analysis were done, we can say we are hopeful about our business plan.
As we are graduation students of IPE discipline. We have sufficient knowledge about business
management also we have technical skills about machineries. We are planning to use our
knowledge into our business.
As we said in our plan. One of our main concern is reasonable prices. Now we are talking with
various parts providers to achieve a good supplier contract so that we can uphold our bargain.
Also we are evaluating the suitable location for our business. Our initial choice was farmgate,
Dhaka. But we are also considering Mohakhali, Tejgaon as the offer some extra benefits too.

Business plan sessional Detailed report

  • 1.
    COURSE NO :IPE 4208 COURSE NAME : BUSINESS COMMUNICATION SESSIONAL. Business Plan for Online Based Car repair Shop Submitted by- ID :13.02.07.106 Year / Sem : 4th/2nd 13.02.07.108 Section : B 13.02.07.117 Department : MPE(IPE) Ahsanullah University Of Science & Technology
  • 2.
    Page | 2 Content TitlePage no 1. Executive summery……………………………………  1.1 Business Name & Location  1.2 Problem present in present market  1.3 Our target  1.4 Management Team  1.5 Vision 4-5 2. Problem…………………………………………………….  2.1 Problems regarding auto repair shops 6 3. Solution…………………………………………………….  3.1 Solutions for founded problems 7 4. Business Model…………………………………………  4.1 How we will make money o 4.1.1 Online Application o 4.1.2 Repair shop  4.2 How we will get money  4.3 Distribution channel of our product  4.4 Flow of product & service  4.5 Flow of Cash 8-12 5. Secrets………………………………………………………  5.1 Big secrets 13-14
  • 3.
    Page | 3 6.Marketing And Sales………………………………….  6.1 Marketing Background  6.2 Industry- wide information o 6.2.1 Car parts and accessories shops in Bangladesh o 6.2.2 Industry Trends  6.3 Marketing Strategy o 6.3.1 Marketing Mix 15-17 7. Competition………………………………………………  7.1 Present state of competition o 7.1.1 Competitors  7.2 SWOT analysis 18-20 8. Operational Plan……………………………………….  8.1 Production o 8.1.1 Product o 8.1.2 Service  8.2 Location  8.3 Legal Environment  8.4 Management Team 21-22 9. Cost Analysis……………………………………………..  9.1 Analysis of Expenses o 9.1.1 Startup Expenses o 9.1.2 App development Expenses o 9.1.3 Machinery and Equipment Expense o 9.1.4 Inventory Expense o 9.1.5 Motorbike and Related Expense o 9.1.6 Management and Employee Expense o 9.1.7 Sum of various categories  9.2 Break Even Analysis 10. Current Status………………………………………… 23-29 30
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    Page | 4 Executivesummery | 1 1.1 Business Name & Location The name of our business will be “E-repair”. The motto will be “Quickest repair at affordable price”. The location of the business center is farmgate, Dhaka. 1.2 Problem present in present market Auto repair shop typically does the following jobs such as review damage reports, prepare cost estimates and plan work. Remove damaged body parts, including bumpers, fenders, hoods, grilles and trim. Realign car frames and chassis to repair structural damage. In Bangladesh, auto repair service is available but not sufficient .There is no on spot services are available in our country. Also service via online is totally not available in Bangladesh. As a result when faced with minor problem which can be solved in less than an hour the car owner has to take his car to the nearest garage, bargain with the sales man about price and after that get the desired repair. Figure: Frequency of problems Which may take up to 2-3 hour. Also when searching for nearest garage. Traffic law may cause unnecessary harassment. From graph we see most of the frequent problem faced in our country are smaller problem. All these can be solved easily by a mechanic in a short period of time. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Frequency of problems Frequency
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    Page | 5 1.3Our target Our service will provide online based repair service. By which customer will be able to contact to our garage via mobile application and state his requirement. After that a repair team will dispatch from the store to the customer. And repairing will be done. As a result customer wouldn’t have to search for garages. He will just wait beside road and help will come to him. And from the app he will also know approximate how much cost it will take. So he wouldn’t have to bargain. Also a huge amount of time and effort will be saved. 1.4 Management Team For management, we will have 3 department. Account and finance department we will have one executive officer. For mechanical sector we will have, 4 mechanic. For server maintenance one IT worker will be needed. We will take a person who has strong background on sales, and also many years’ experience on dealership. We would hire mechanics who has experience on automobile, specifically the auto repair and parts sales industry. 1.5 Vision At first with limited resource 1 shop will be opened. With increase of popularity and profit, the expansion of business will follow.  The number of service vehicle will be increased  At start only private car repair will be provided. In future motor cycle, Heavy weight truck repair will also be provided  New shops in different location for expansion of working area  Addition of larger trucks for major repair on spot  Addition of on-spot Car wash system CustomersDelivery Inventory Local stores Local distributors
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    Page | 6 Problem| 2 2.1 Problems regarding auto repair shops Auto repair shop typically does the following jobs such as review damage reports, prepare cost estimates and plan work. Remove damaged body parts, including bumpers, fenders, hoods, grilles and trim. Realign car frames and chassis to repair structural damage. In Bangladesh, auto repair service is available but not sufficient .There is no on spot services are available in our country. For this, many people face various problems on road. Main problem we face in our country regarding auto repair shop are given below. 1. Very limited and premium on spot service is available. 2. Auto repair shops are placed in distant location. 3. Shops are mainly clustered at one location. 4. Transferring car to the repair shop. 5. Legal issue faced on the road. 6. Damaged idle car on busy road. 7. Customers are exploited due to knowledge gap. 8. Major problem due to minor problem.
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    Page | 7 Solution|3 3.1 Solutions for founded problems Our auto repair shop is first E-base shop in Bangladesh. We face various problems and difficulties on road as mention earlier. Our shop will mostly solve the current problems faced on road. 1. Our e-shop will provide service all level of customer and all type of behavior. 2. The distance of location is not problem for our repair shop at any location. Our repairman will go on spot by motorbike and give service to damage car in short time. 3. No need to drag car or any vehicle to the automobile repair shop. As our service will provide on spot repair for our target customers so that unwanted time loss will be reduced. 4. No legal issues will be faced by the customers such as case, fine etc because of the moving of damage vehicle to the repair shop for repair job. The automobile will stay in one place 5. For instant repair of damaged vehicle on busy road, traffic jams will not be created. 6. In our app, we will provide fixed price for damage part and repair that’s why customer will not be exploited of price. Which is a common practice of local shops in our country 7. For our service there is no need to move damage vehicle that’s why no possibility to accident or major part failure.
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    Page | 8 BusinessModel | 4 4.1 How we will make money The main sources of our income are the payment we get from our customers as service charge. The next source of income is the parts we provide to our customers. We will make some profit by selling it to the customers. The last source of income is the salvage we get by selling the damaged parts. Main two thing of our income will be - 4.1.1 Online Application This is an era of technology. World is moving very fast and to coupe up with the world we also need to move fast, think fast. In this time of internet if business aren’t connected with world wide web then we will fall behind in an instant. This Online merge will be our main source of income. We will use an online app which will be available in iOS and android. This app will allow customer to connect with us. This app will be more like an Uber App. Working style:  After encountering problem. The user will open the app  At first the customer will choose where is he located by GPS or self-choice  Then he will go to the menu  In the menu there will be various problem and repair type showed with cost  Customer will choose what kind of repair he/she need.  Then he/she will confirm and Repair team from the shop will dispatch  If the user’s problem isn’t present in the menu there will be an “others” icon by which he/she will be available contact with the shop and state what kind of problem has emerged Application development & maintenance The app will need continuous supervision. Otherwise interaction with customer will not be smooth. And as this app will be the main jewel of the business plan so perfection is desired. For this some things will be needed, Server: Server will be used for the application’s connection to the internet. It is the most vital thing. At first server maybe smaller in size. But with time and more customer this server may needed to be get bigger. Or customer will face buffering during connection. All the data will be
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    Page | 9 storedin the Server. As the server size will be bigger it is feasible to have own server rather than renting one. At most two IT operator will be needed for server maintenance Application Development: The application will be developed by a renowned IT firm. Our business will buy the developed application form them. There will be contract with them for future development and yearly maintenance. Domain: Domain will be needed for the application and also for our web address. 4.1.2 Repair shop We will also provide repair in the shop. Heavyweight repairing and other as usual repair will be done on the shop. Because as we are renting a place already why not use it to its full potential. We will have repair man present in the shop already for outgoing work. So new repair man for shop will not be needed. Server client client client IT team Domain
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    Page | 10 4.2How we will get money Most the payments we get are in cash. Our cash flow will be person to person in short on hand cash flow. Further payments in near future we will try to add to online payment service or other payment methods such as Bikash or other payment methods such as card system etc. 4.3 Distribution channel of our product The products that we will provide for repair service will be collected from our inventory storage. We will usually collect products from nearby stores. For extensive parts, we will make order through local suppliers. To distribution of the parts to customers we will use bikes. The parts for inventory will be carried by trucks. We will carry various parts in full truck load system to minimize the transportation cost. Some car parts and accessories shops in Bangladesh with whom we will collect our products: 1. NAVANA 2. EXCUTIVE MOTORS 3. S.h. Trading Corporation 4. Ali Engineering 5. Taher Corporation Customer repairman Business CustomersDelivery Inventory Local stores Local distributors
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    Page | 11 4.4Flow of product & service The given diagram shows the movement of the products from manufacturer to end user for our business. Figure : Product flow diagram Manufacturer Spare car parts Tools & lubricants Distributor Local Distributor Product Delivery Shop
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    Page | 12 4.5Flow of Cash The given diagram shows the movement of the cash in our business. Figure: Cash flow diagram Purchase of damaged parts Application maintenance Local Distributor Shop Utility cost Employee salary
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    Page | 13 Secrets| 5 5.1 Big secrets  Our main secret is “on spot repair system”. Form talking with various car owner we sort out the most frequent problems occurs in a car over the year. Figure: Frequency of problems Among those problem we see almost 80% problem are minor problem which can be solved on the spot. Because of these small problems cars aren’t needed to be dragged to repair shop. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Frequency of problems Frequency
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    Page | 14 Our next big secret is we will use an online based system to connect with customers. Which is totally new in our country’s perspective. In our country the car owner get exploited by various repair shop on regular basis. The car owner doesn’t want to move to a whole new shop with his car problem and bargain about price usually. Figure: pie chart of Customer thought about exploitation From customer survey we see about 73% of the customer thinks they are taken advantages of while emergency car repairing. We will provide relative cost data to the customer so that they won’t be exploit by or won’t feel advantages were taken over them. Also from the app they will also be able to find if their requirement can be fulfilled by us.  There will an option available “Contact with the repairman”. By this the car owner will be able to connect with repairman directly. So if he/she has a unique problem or any other special quarry he/she can easily tell it. Also they will be able to know where is his/her serviceman currently situated right now how much more time is needed.  We will provide damaged parts exchange policy. In repair if new part is required customer will be able to sell his defective part to us for a discount on the new part. This way Customer will get a satisfaction which will influence him to contact more with us. This damaged parts will be used for other purposes. 73% 27% Customer thought about exploitation Exploited Not exploited
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    Page | 15 Marketingand Sales | 6 The automobile industry is one of the most important in the world. The demand for automobiles in Bangladesh is rising with each passing day. So the maintenance of auto mobile is crucial. For this auto mobile repair market is emerging day by day. 6.1 Marketing Background The market of automobile parts and accessories is increasing day by day. At present, people are very busy. That’s why any types of vehicles are necessary to reach their destination and also necessary all types of vehicles parts and servicing center. Overall it is estimated that the total retail market for hardcore automobile part products is $1.5 billion annually and it still continues to grow. The only real threat to our venture would be a similar new entry to the marketplace. This opportunity may be described as one ready and waiting for the first entrant who arrives with a well-conceived plan, sufficient industry experience, and the required capitalization. The number of cars and motorized vehicles is increasing rapidly in Bangladesh despite the lack of infrastructure. Vehicle repair shop has become an important sector in the market. Most of the auto repair shops are situated in Tejgaon, Agargaon, Karawnbazar etc. 6.2 Industry- wide information 6.2.1 Car parts and accessories shops in Bangladesh Some car parts and accessories shops in Bangladesh and their specification are given below:  NAVANA Navana group is one of the largest private sector groups in Bangladesh and has a strong and distinguished business history. They started their journey in 1953.  Romel Motor They are the main retailer and wholesaler of car windshields. Also provide other car parts  Sarif Trading Corporation They are one of the oldest importer and wholesaler of bearings since 1978.  Ali Engineering Ali engineering specialize in repairing all kinds of diesel machineries parts.
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    Page | 16 Taher Corporation They are importer, wholesaler and retailer of all kinds of automobile suspension parts. 6.2.2 Industry Trends A number of basic trends are changing the dynamics of the automobile industry. They include:  A 25 percent increase in car prices over the last five years  A growing supply, demand and profit margin for loaded used cars  The changing dynamics of vehicle ownership  The explosive growth of leasing  The need for a broader range of dealer profit centers  The dilution of the traditional dealer franchise system. 6.3 Marketing Strategy 6.3.1 Marketing Mix Product, placement, promotion and price are elements of marketing mix. This elements of marketing mix are correlated tools that worked together to achieve company’s good selling and servicing position. Product/service •Car spare parts •Repair Place •farmgate Promotion •facebook •Online •Poster Price Reasonable price Fixed price Marketing Mix
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    Page | 17 Product: Ourproducts are every type of parts of any vehicles. These parts include accessories, body kits, air intakes and conversions, brakes, car audio, bulbs, auto alarm system, video, exhaust, car interior, ground effect kit, tail lights, head lights, performance parts, ignition systems, spoilers, police light sound, suspension door kits and wheels. We will provide customer good, sophisticated product as we can. These are advertised via internet and locally so that people are concerned about our product. Pricing: Price is important for any business. The business may increase or decrease totally depends upon the price of the products. We must ensure that our price to be reasonable. Beside these, we will be aware to provide satisfactory service. We will sell our products on the basis of quality. We will give fixed price for all parts in the app so that customer will be able to take important decision before servicing. We will also take service cost from our customer for our satisfactory service. Placement: Place represents the location where products can be stored and sold. We will build our Distributor center in farmgate because we can easily and rapidly reach from one place to another place. Beside this we will be able to collect spare parts rapidly. Promotion Strategy: Promotion represents all of the communications that a marketer may use in the market place. Promotion has four distinct elements – advertising, public relations, word of mouth and point of sale. We will advertise our product through internet, poster, mouth to mouth, leaflet etc. The three basic objectives of our promotion are: 1. To present product and service information to targeted consumers and customers. 2. To increase demand among the target market. 3. To differentiate a product and create a brand identity.
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    Page | 18 Competition| 7 7.1 Present state of competition Currently the repair shops for car repair mostly provide as usual repairing facilities. Most of them do not provide on spot repair of any kind. Only premium service provider like Executive motors, AD car museum etc. they only provide these kind of service to premium cars like BMW, Mercedes, Audi not for Toyota, Nissan, Mitsubishi. Which are the most common cars in the road. So it can be easily said that the competition will not be that much stiff. 7.1.1 Competitors There are two type of competitors which will present. Direct and indirect. Direct competitors will be those who have similar repair service system. And may increase their system in future when our business may become a threat to them. As for indirect competitors repair system which aren’t actually similar to ours. But they may take away some of the customer from us. Direct competitors  Executive motors  Sal-Sabeel Cars  AUTO museum  Progress motors Indirect competitors  Local repair shops  Provider’s customer care
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    Page | 19 7.2SWOT analysis To know the strength, weakness, opportunity and threats of our plan SWOT analysis was done. The SWOT analysis of E-repair shop- Strength •Online service •Price •Quick Response Weakness •Major repair •limited working area •low number of transports Opportunity •Expand service area •Major repair on spot •increase transport number Threat •Sudden entry of competitors •Increasing price of parts
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    Page | 20 Strength: We will provide Online based service which is first time in this country  Customer will get the product with reasonable price  On spot repair system  Quick response time Weakness:  Major repairs cannot be done on spot  Service is provided in limited area (only Dhaka)  Low number of transports for on spot repair for which limited number of on spot repair can be done at a time Opportunity:  In future expand in the segments such as small vehicles for larger repairs on spot  Expand service area  Increase number of transportations. Threat:  Sudden entry of larger competitors in the market  Increasing price of parts
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    Page | 21 OperationalPlan| 8 The Automobile Shop will be engaged in the business of providing automobile parts and other automotive services to the customers. Our E-repair shop will have the ability provide service and product of almost any domestic or foreign automobile parts to the customers required. The shop will provide the general repair of automobiles for all segments of market. Our shop will provide extensive service to the customers such as in case of emergency like battery down or tire blast can be fixed at anywhere in this target area with the help of our online based service thus the app. We will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts. The online based automobile work shop will intend to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. 8.1 Production 8.1.1 Product The product we will sell will be after service replacement of auto mobile parts. We will not produce any parts rather parts will be collected from local distributors. For exclusive parts orders will placed via local shops and dealers. For most common parts, we will buy them at wholesale rate in batch according to market demand. We will use our garage thus main shop as our inventory. We will integrate suppliers. Parts will be collected from loyal and renowned supplier which will guarantee quality of our product. 8.1.2 Service The service will be the maintenance and repair of automobiles. Our shop will have some employees at shop for any repair that comes to the shop. For online based service, our repairmen will go to spot via motorbike and provide required service. 8.2 Location Our physical shop will be placed in such area through which we will be able to provide services to ay distant areas such as Farmgate. We will use routing method to identify the required location of our shop. For our shop Foundation strength should be the first consideration. In order to support the heavy lifts and other weighty equipment needed for auto repair, the foundation must have at least a four-inch thickness. Ceiling height should be 12 feet to ensure adequate clearance for lifts of vehicles during service. Our shop will have about 1500 square feet. Our Shop will have adequate electric supply for repair service.
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    Page | 22 8.3Legal Environment A domestic firm must follow the laws and customs of its home country. These laws determine the markets firms may serve the prices they can charge for their goods, and the cost of necessary inputs such as labor, raw materials, and technology. For opening any shop, a one must follow some rules such as shop deed agreement with the owner of the shop. We will have TIN document for out shop. For health and safety, we will follow ISO 9001 and 10001. We will have insurance policies for our shop, employees and motorbikes. 8.4 Management Team We will develop a strong management team that will allow us to execute on this exciting idea. First, we need a person who has strong background on sales, and also many years’ experience on dealership. He will have some experience in team work and leadership capabilities. Another person who’s experience on automobile industry, specifically the auto repair and parts sales industry. The incredible breadth of skill sets and knowledge that the management team possesses will allow our company to accomplish its lofty sales goals. For management, account and finance department we will have one executive officer. For mechanical sector we will have, mechanic. For server maintenance one IT worker will be needed. Business Managment & finance IT Mechanical
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    Page | 23 CostAnalysis | 9 9.1 Analysis of Expenses 9.1.1 Startup Expenses Startup Expenses Cost Legal (Trade license) BDT 6,000 Tax BDT 10,000 Insurance BDT 2,400 Marketing BDT 50,000 Transportation BDT 1,00,000 Shop rent BDT 2,40,000 Security BDT 1,00,000 Total startup expenses BDT 4,68,400 9.1.2 App development Expenses App development Cost Server BDT 1,00,000 App development and upgrade BDT 1,00,000 Cooling system BDT 60,000 Total BDT 2,60,000 Total Start up expense = 4,68,400+ 2,60,000 =7,28,400 BDT
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    Page | 24 9.1.3Machinery and Equipment Expense Machinery and equipment Cost Working capital and equipment BDT 2,50,000 Store furniture BDT 30,000 Total machinery and equipment BDT 4,80,000 9.1.4 Inventory Expense Inventory Item Cost Tire * 20 BDT 50,000 Head Light *4 BDT 16,000 Back light *2 BDT 9,000 Front windshield *2 BDT 16,000 Rare windshield*2 BDT 13,000 Semi joint * 2 BDT 11,000 Ball Joint*2 BDT 5,000 Shock absorber Front* 2 BDT 18,000 Shock absorber Rare*2 BDT 10,000 Shock absorber mounting * 2 BDT 3,600 Brake Pad*4 BDT 11,200 Brake show*4 BDT 8,000 Miscellaneous BDT 80,000 Total BDT 2,50,800
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    Page | 25 9.1.5Motorbike and Related Expense Motorbike and related Cost Baja Discover 100cc*4 BDT 5,18,000 Legal*4 BDT 60,000 Insurance *4 BDT 1,000 License*4 BDT 28,000 Total BDT 6,07,000 Startup total asset= Total machinery and equipment+ Total Inventory + motorbike = 4,80,000+ 2,50,800+ 6,07,000 =13,37,800 BDT 9.1.6 Management and Employee Expense Management and Employee Cost Manager BDT 1,80,000 Mechanic*4 BDT 3,84,000 IT BDT 1,20,000 Total BDT 6,84,000
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    Page | 26 9.1.7Sum of various categories Category Cost Salary BDT 6,84,000 Total Start up expense BDT 7,68,400 Startup total asset BDT 13,37,800 Electricity and power consumption BDT 1,00,000 Safety BDT 10,000 Maintenance BDT 50,000 Total BDT 29,50,200 9.2 Break Even Analysis Variable cost: Product cost = BDT 2,50,800 Product sell =50*4*12= 2400/yr Inventory size=50 Service on workshop=6*365=2190 Service on spot= 1000 Total service=service on workshop +Service on spot =2190+1000 =3190 Service charge= 250/car Total service charge= Total service * service charge = 3190*250 = BDT 7,97,500
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    Page | 27 Variablecost=(product cost* yearly quantity /inventory size) =(BDT 2,50,800*2400/50) =BDT 12038400 Fixed cost: Fixed cost= Total Start up expense+ Total machinery and equipment+ motorbike = BDT 7,28,400+ BDT 4,80,000+ BDT 6,07,000 = BDT 1815400 Revenue: Selling price= Product cost+ product cost *2% Profit = BDT 12038400+ 2,40,768 = BDT 12279168 Revenue= selling price + service charge =BDT 12279168 +BDT 7,97,500 =BDT 1307668
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    Page | 28 Youwould need to sell 4,193 units in order to cover your fixed costs. If you sell your anticipated 2,400 units then your profit/loss would be -776,200. Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit 0 0 0 1,815,400 -1,815,400 1048 5,711,383 5,257,533 1,815,400 -1,361,550 2096 11,422,765 10,515,065 1,815,400 -907,700 3144 17,134,148 15,772,598 1,815,400 -453,850 4192 22,845,530 21,030,130 1,815,400 -0 5240 28,556,913 26,287,663 1,815,400 453,850 6288 34,268,295 31,545,195 1,815,400 907,700 7337 39,979,678 36,802,728 1,815,400 1,361,550 8385 45,691,061 42,060,261 1,815,400 1,815,400 9433 51,402,443 47,317,793 1,815,400 2,269,250
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    Page | 29 SUMMARYOF INPUT Total fixed costs 1,815,400 Variable cost per unit 5,016 Sales price per unit 5,449 Anticipated unit sales 2400
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    Page | 30 CurrentStatus | 10 As our business is not established yet we are working on some targets. Form the information we collected and the analysis were done, we can say we are hopeful about our business plan. As we are graduation students of IPE discipline. We have sufficient knowledge about business management also we have technical skills about machineries. We are planning to use our knowledge into our business. As we said in our plan. One of our main concern is reasonable prices. Now we are talking with various parts providers to achieve a good supplier contract so that we can uphold our bargain. Also we are evaluating the suitable location for our business. Our initial choice was farmgate, Dhaka. But we are also considering Mohakhali, Tejgaon as the offer some extra benefits too.