Auto Parts Store Business Plan Leave a comment

Southeast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will continue to be small to give customers unparalleled attention. Southeast Racing Parts will be the top destination for novice and entry-level racing parts.

The Market

Southeast Racing Parts is excited to be a part of this growing market. Motorsports has seen explosive growth in the USA in the last decade. It is the fastest-growing sport in America. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have “souped” up their cars but have yet to compete in organized events. Motorsports are also covered more extensively on television, which is helping to boost growth. SRP has chosen the Carolinas as their preferred location due to its record population growth. It has increased 25% in the last 10 years.

Organization

Southeast Racing Parts was founded on the belief that satisfied customers are essential to the financial health and success of an organization. With this in mind, SRP will be working hard to ensure that all of their customer’s expectations are exceeded in all transactions. Southeast Racing Parts, through sponsorship or participation, will remain active in the racing scene.

Products & Services and Delivery

SRP will both be a brick and mortar company, serving the local area, and also offering a catalog with a mailing service. This catalog will be four-color and the cost of subsequent editions will be evaluated to determine if this format is economically feasible. SRP will offer chassis and engine parts for many cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer services for rating coils and scaling race cars.

Financials

Southeast Racing Parts is expected to be profitable starting in month 1. Expected margins to be good. Year one sales will be remarkable with a steady increase rate for the first 5 years.

Southeast Racing Parts presents a great opportunity. It combines customer-focused business with a dynamic industry. Motorsports are growing in popularity in America with more people participating. Even for those not involved in the sport, it is now cool to have your car “tweaked” for aesthetics. Southeast Racing Parts offers a reasonable risk and high growth opportunity.

1.1 Objectives

1. To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.
2. To achieve a modest initial profit margin, increase it by at most 1% per annum until we reach our final target.
3. To be able to sell a lot of product in the first 12 months.
4. To maintain a solid growth rate per year for the first five years.

1.2 Mission

Southeast Racing Parts aims to provide racing products that are both high-quality and affordable. We want to build a partnership that is mutually beneficial for our customers, employees, and suppliers.

We will constantly strive to provide what the consumer wants. This will ensure that we are able to meet consumer demand.

Our customers choosing us to fulfill their expectations in price, selection and service will be our measure of success.

1.3 Keys to Success

For this business to succeed, it is essential that:

• Participate in racing events, such as at local races tracks, regional and national tradeshows, or attend functions.
• We will deliver your products quickly.
• Working with customers on a personal basis is better than working with large mail order agencies that have the “What’s my customer number?” mentality.