Business Plan

MBA499 Launching a Business
Come 2 Us (C2U) Auto Repairs Group - 18
1
Executive Summary
Dream creates hopes, hope creates wants, want creates desire and desire creates passion. So, it
was a passion cum desire to open up a Garage in the heart of the business capital of Wales
(Cardiff) by Rishabh Daga who is holding a degree of mechanical engineering and having a
professional experience of 7 years as a senior mechanic in topmost company of auto repairers
back in India. While gaining experience in the best Auto Repairers Company he destined himself
to own a garage and will be providing extraordinary services to the customers in comparison to
other garage companies by hiring well trained and professional staff within the company and will
also equip the garage with new technology tools. So, for implementing his plan of business he
has approached some of his friends who were really interested in working with him; there were
four people he approached - Mr. Viral Gada, Ms. Prachi Dikshit, Ms. Ruchika Batra and Mr.
Ankit Singhania to successfully establish the business with name ‘Come 2 Us (C2U) Auto
Repairs’ in Cardiff area by providing superior services better than competitors.
As a part of Come 2 Us (C2U) auto repairers we will try to offer authentic tune-up to the
customers cars by providing different number of service and few new services better than the
competitors which help us in gaining the trust of the customers as we really want to change the
perception of the car owners (drivers) towards the auto repairers. Our goal is to provide a
complete personalized hassle free service to all our customers as we take the responsibility to
keep their car well maintained. We not only look forward to just maintain the clients vehicles but
also provide them with the basic information so as to keep them updated to help increase the life
of their car. And we will also offer the after repair service by keeping in touch through phone
and mail services which will help us in attracting their interest towards our auto repair services.
Introduction
This is a report which gives the complete detail of our business which is to be started in Cardiff
city. This business report will help the people to understand all the financial aspects of the
business such as sales forecast, capital expenditure etc marketing strategies of the company, all
the details of employees and their qualifications. Come 2 Us (C2U) Auto Repairs situated at
Newport road will offer numerous expertise services like complete servicing, oil and filter
change, free checkups, exhaust repairs, engine repairs and many more important services which
will be taken care by our expert staff that will help boost life of our customer’s vehicles. We at
C2U will not only provide car services but also train and educate our customers with basic car
care stuff. C2U has hired professional female mechanics as we believe in giving special
preference to our female customers.

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Market Research
The firm is offering many services like Full Service, engine service, Tyre repairs, brake repairs
etc. The list of other offered service is given in Appendix C. Our firm would be working as a
small independent repair garage according to the figure 1 model, which shows intense
competition from other big entities like OES, IAM. According to the chart 1 the mode to travel
to work and shop is dominated by cars in 2006. So over 60% of consumer use cars for work &
40% prefer to use cars for shopping reflects the increased usage of cars in everyday life. (Mintel
Reports, 2010)
Figure 1. European Aftermarket Structure (Autopolis, 2000)

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Chart 1. Cardiff Residents Mode of Travel to Shop & Work (Caerdydd, 2008)
One out of three UK drivers is saying that they don't want to purchase cars in next 5 years. So
with few new models there will be need for maintenance and upgrade of equipments. Along with
this there has been increase in car ownership by 10% in 2010. It was also noticed by Mintel
(2010) that the cars have to follow stricter MOT related repairs and the failure rate is 35% in
2008 compared to 30% in 2005. So this is a good sign for our business. It was also noticed that
the cars getting serviced have decreased from 64% to 31% as the prices of franchised dealers are
double than independent repair shops.

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Figure 2. Trend in the number of body shops by size of the auto part (1999-2009) (Trand
Tracker, 2010)
As seen in the figure 2 there has been decline in the number of body shops/auto garages which
does the repair.
And by 2009 it has decreased by 8% covering 47% of primary outlets. The main reason has been
the closure and conversion of the body shops to medium body shops, which also reflects the
growth pattern of repair shop. The main benefit has been the lower overheads and work from
insurance firms & sub-contracted work from bigger shops.
Market Segment
1. Local residents: The management of Come 2 Us (C2U) Auto Repairs will focus on
regular customer base of as this will help to provide stable income for the company. The
garage will manage all the basis services for the customers like engine problems,
breakdown etc.
2. Emergency Towing local and Freeway Traffic: It is expect that the firm will generate
20% of revenue from towing of local and freeway traffic. The firm will develop relations
with tow truck companies as these customers need timely service.
3. Specialized Service: The firm will hire professionals for some special cars like Alfa
Romeo which is charged heavily by the franchise retailers. This is a form of
differentiation strategy which will be implemented by the firm. (Finch, 2006; Mintel
Reports, 2010b)

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Target Market Segmentation Strategy
The firm will focus only on upper and middle class segment as they are ready to pay higher price
for good services. The firm will develop a database of loyal customers using quick turnaround,
efficient and timely response to their needs, personalised service with the support of local towing
and insurance firms. (Kotler, 2010)
Consumer Buying Patterns
Due to economic conditions in UK price is an important factor for every consumers but it was
also noticed in Mintel (2010) reports that quick and reliable service has greater significance than
price. So, consumers are willing to pay higher price for quick service and matching services. So
the researcher believes that the management can understand and anticipate the exact needs and
exceed the expectation of consumers to differentiate them from the competitors. This will help to
capture greater market share in the long term but as a part of short term strategy various
promotional tools will be used to attract the customers.
Competitors
The auto repair business has high level of rivalry due to the fragmented nature. There are many
established dealers like Kwikfit, Cardiff Garage etc and franchise reps from every major
company like Ford, Toyota and Mercedes etc. who are offering service repair centre at different
locations. They have specialized workforce to cater the customers, spare parts at competitive
prices, good financial strength and greater market share. Other competitors include 'Mom and
Pop' style independent repair centre which are present nearby. They implement low cost strategy
due to lower overheads than big service centres but they have high customer turnover. Come 2
Us will start with Skimming pricing strategy where higher level of customer satisfaction will be
generated among customers by implementing stringent quality rules and others way to increase
satisfaction like:
a) Courtesy calls after 1 week of service.
b) Guidance on minor repair and precautions.
c) Personalised thank you note.
d) Bouquet on birthdays.
e) Promotional mails using the preferred channel of communication. (Katz, 2010)

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Competitive Edge
The vision of the firm is the main driving force as the service doesn't only include the repairing
but it is the whole service experience that goes with the client when they leave the garage. The
most important strategy is to retain for repeat purchase of the service and not just acquiring new
clients. (Finch, 2006) The firm is focused to increase their experience at touch points with the
customers. The workers will be retrained to include the service culture within the vein of the
corporate vision so a self-sustained culture can be developed.
Positioning of the firm
The aim of the firm is to become local leaders in service quality while retaining the low cost
strategy. After the company has developed a brand image more referrals will help in the growth
of the firm. The management will re-evaluate the new differentiation strategy after a period of
time & will increase the charges for each service offered for long term prospects. (Kotler, 2010)
Products and Services
A garage is like a hospital of a vehicle where a car gets its treatment, let it be a complete
servicing or just a part of it. We at our garage will offer various and specialized services for our
customer’s cars which will help them keep their car in best condition. Below are some services
offered by our garage. *The rates given below are subject to the work to be done; the given rates
are the minimum amount that would be charged for the specific services and may differ with
accordance to the actual work done.
1) Complete Servicing:
The complete Servicing is a wide range of treatment which includes every small type of
service such as oil change, brake servicing, filter change, exhaust inspection etc. There is
also a complete inspection of the electric fitting in car, if any problem is detected it is
rectified. A complete service also includes the alignment and balancing of wheels of the
car. To end the procedure it is done with a car wash which gives the car a bright shiny
look. Price: £175*
2) Electrical Repairs:
As the name suggests, this service deals with all kinds of electrical wiring and items in
the car. A detailed inspection is done by our expert mechanic for the reported problem
and accordingly the solution is implemented. Items such as head and tail lamps, indicator

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bulbs, inside car illumination, audio systems, air conditioning, car ignition etc are taken
care of in this particular type of service. Price: £40*
3) Brake Servicing:
This servicing deals with brakes and all those items which help a vehicle to get to halt
safely with maximum stability. Parts such as brake pads, discs, and liners are given a
proper treatment, and special attention is given to the vehicles with Antilock Braking
systems (ABS) as ABS is electro mechanical way of brake inflection (Vespremi 2009)
and Electronic break force distribution (EBD) is also given a special attention as it plays
a sensitive role in distributing equal braking power in all four wheels of the car to get it to
a still position (Sclar 2009). Price: £80*
4) Oil/Filter Change:
Oil and filters play a crucial role for a smooth run of any car, if the oil levels and filters
are not taken proper care it affects the average of the car and hampers the car’s engine as
drivers ignore importance of oil and filer. It needs to be changed periodically. We at our
garage not only change the filters and replace oils but we also provide top-up bottles for
our customers. Price: Oil/Filter- £40*/£35*
5) Exhausts repairs:
Many car users doesn’t know the significance of the exhaust pipe in a vehicle, it helps the
car to remove its fuel waste but ignoring this harms the life of the vehicle but our experts
give special attention to keep proper health of the exhaust system of the vehicle.
Price: £75*
6) Alignment & Balancing:
Alignment & balancing are words concerned with the wheel balancing of the vehicle. For
a smooth and controlled run of a vehicle it is necessary that all the four wheels are
aligned and balanced with each other. Along with alignment & balancing we also service
the tyres of our customer’s cars as well as change the old with the new ones.
Price: £60*
7) Car wash:
Car wash gives a fresh look to the car; a car wash may not affect the life of the vehicle
but it gives a feel good factor after the service of your car, though it’s not necessary to get
the car wash after the service only, it can be washed whenever the customer feels like.
We not only wash the exterior but we also clean the interior with the polish to make it
look like almost a new car. Price: £30

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8) Free Check up:
At our garage we would give free 15 point free check up to all customers which will
include checkups like oil check , electrical check etc which will help all our customers
understand the problematic issues in their car which are to be corrected. We also will
provide a free onsite free check up to all our customers.
9) Tyre Change:
We also have all the latest machinery to change the tyres of the vehicles efficiently
irrespective of them being alloys or the normal metal wheels. Price: £15/Tyre
10) Accessories:
Our garage with all kinds of services also provides basic necessary items required to help
maintain the cars. Items such as oil top-ups, car cleaning liquids, interior polish, car
perfumes etc are provided at the garage.
Legal obligation
1. HMRC: VAT and Corporation Tax
Since Auto Garage is a profit making firm and it also involves the purchase and sale of
goods and services, so it becomes the liability of the firm to get registered for VAT and
corporation tax. Corporation tax is mandatory for a limited firm and is paid on the net
profit of the firm. As the business is expected to perform a turnover of approximately
£300,000 which is more than the government’s threshold, it becomes mandatory to
register for VAT. The rate which is applicable to our business is a standard rate which is
approximately 17.5%. (HMRC, 2010)
2. Employer Liability Insurance
Employers' liability involves insuring the firm against the damages arising from illness,
disease, injury or death caused to any employee who is at work. It involves insurance
cover which is timely reviewed and modified according to the need by a specialist in
insurance claims. The employer’s liability insurance will protect the firm against any law
suit arising from the dispute between the management and the employees over the
damage caused. So it is essential for a firm to get covered through employer’s liability
insurance. (Sweet and Maxwell, 2011)

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3. Health and Safety Requirements
Since our firm involves motor vehicle repair, it becomes mandatory for us to draw our
attention towards perennial problems and to assess the risks beforehand so as to avoid
mishaps. Issues such as vehicles falling from two-post vehicle lifts, fire during disposal
of waste and rubbish and by the use of petrol in garage, injuries during movement of
vehicle under repair, explosion during repair of diesel tanks, working with isocyanate
paints etc. have to be dealt with extreme caution. Training for first aid will be given to all
the employees. The premises will be equipped with all the necessities such as fire
extinguishers, first aid kits, fire doors etc as indicated by the UK government. (Hughes
and Ferrett 2010)
4. Product Liability:
Come 2 Us (C2U) Auto Repairs: our company which handles auto repairing and
provide exceptional services to our customers. According to U.K laws for product
accountability, our company is liable for customer’s cars and its parts. C2U is Auto
Repair Company who also sells car parts, we will make the people aware about how to
maintain their vehicles by giving them proper session and finally giving drop and pick
service for every customer. We take U.K rules and regulations seriously and are
registered with ISO trademark, so that we can attract customers. (Business Link 2011)
5. Business registration and ownership:
The registered name of the firm is COME 2 US (C2U) Auto Repairs and the ownership of
the firm is confined to the 5 directors of the firm which are the board members. The
ownership also includes all the properties and assets associated with the firm. The trademark
of the firm and the services will be registered in the name of COME 2 US (C2U) Auto
repairs and will therefore entitle the firm to take legal actions against those imitating the
same. The legal proceedings against the firm or against any member or service will be held
under the jurisdiction of the law of United Kingdom. (Pakroo 2010)
Aims and objectives
Aim:
To be the best auto repair garage in Cardiff area by providing extraordinary services to the
customers and also by developing a optimistic & welcoming atmosphere of quality car repairers.
The fortune of C2U will be depending on its exceptional services and reliability.

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Objectives:
Objective Timescale Status
Year 1 Registering the company & licensing procedure
opening a business account
Printing of Brochures and visiting card
Printing of company’s poster
Creating a website and launching it
Inauguration of Auto garage
Achieving 180 customers within 3 months
Two mechanics will be recruited ( 1 male & 1
female)
Achieving turnover of £2,82,450 for 1st
year
Advertisement in local newspaper and magazines
Buy a used van for pick up and drop services
Advertising through social network site like-
Facebook, twitter, Google + etc
Providing Loyalty cards to the customers
Organizing seminars for creating awareness to the
customers about their vehicle
Sep 2011
Sep 2011
Sep 2011
Sep 2011
Sep 2011
Oct 2011
Dec 2011
Sep 2011
Sep 2012
Sep 2011
Sep 2011
Sep 2011
Oct 2011
Oct 2011
complete
complete
complete
complete
complete
Incomplete
Incomplete
Complete
Incomplete
Complete
Complete
Complete
Incomplete
Incomplete
Year 2 Retaining loyalty customers of 1st
year.
Adding up of new services and equipment in
garage.
Expanding the promotion technique.
Recruiting more staff as per the requirement of
the business.
Increase in the number of seminars related to
creating awareness to the customers about their
vehicle.
Maintaining websites & advertisement through
local newspaper and magazines.
Selling of more auto parts.
Providing offers to our customers
Sep 2012
Oct 2012
Nov2012
Oct2012
Oct 2012
Oct 2012
Oct 2012
Oct 2012
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Year 3 Making tie up with big gas station.
Expansion of our business.
Giving a new looks to our garage.
Maintaining promotion techniques.
Retaining our staff by promoting and motivating
them.
Introducing some special package and benefits
for our loyalty customers.
Maintaining seminars for the customers.
Achieving our target profit.
Opening of new shop for selling auto parts.
Sep 2013
Sep 2013
Oct 2013
Sep 2013
Oct 2013
Oct 2013
Oct 2013
Sep 2013
Sep 2013
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete
Incomplete

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Marketing Strategy
Media objectives
There will be 2 main media objectives for this campaign:
1. Brand Awareness: customers are not aware of the new auto repair garage and so they
should be told about the new garage in the city. (Percy, 2008)
2. Brand Attitude: This consists of the message or the feelings the brand wishes to impart.
(Percy, 2008) The campaign will convey the message of “Quick Service in Town”.
Media Categories & Vehicles
Media schedule: The main objective of this process is to decide the timing and media categories.
As the business budget is around £100,000 so the following media options has to be planned.
There are a number of media options available to the company like Newspaper, Radio, Print,
Internet etc. The selection of the media vehicle is decided on the basis of the message, time taken
by the viewers to process the message & frequency of messages. (Finch, 2006) The brand
attitude strategy suggested by Percy (2008) is shown in figure 3.
Figure 3. Brand Attitude Strategy (Percy, 2008)
As spending on Cars is high involvement decision so we will adopt the suggested Media options.
1. Cable TV : This is relatively expensive for the campaign due to limitation of
Resources so this option is not used.

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2. Newspaper: In this case major tabloid of the city like News Extra & City Final will be
used and the advertisement of size 3" x 4" inches will be printed. This will be printed a
week and will generate 52000 impressions every time.
3. Online and Offline Advertising: By using online medium the campaign will touch 10.3
million users across UK and help in brand awareness. With the help of offline medium
around 275,000 impressions will be made every week.
4. Internet: Facebook and Google Advert campaigns will be launched and visitors can avail
the 20% discount on the regular pricing if they register online.
5. Direct Mails & leaflets: At least 20 direct emails daily and 1000 leaflet distribution will
be done every alternate day. (Perry, 2008)
Personal Communications
1. Selling: Direct Sales will be done by arranging meeting with corporate clients, where
a package will be offered at a discounted price. It is expected that 1 corporate meeting
will be done during the first 6 months.
2. Customer Service: A dedicated person will be there who will handle the customers.
His role would be to log the suggestions and complaints. The firm is also planning to
use small CRM application which is available at lease from Salesforce.com at
competitive prices. This will help in Sales promotion, customer management &
Public relation. Direct Emails shall be sent to at least 10 people daily.
3. Telemarketing: Cold calling is a good strategy when the firm has limited resources,
so calls will be made by using the BT directory and Yellow pages. The relation with
insurance firms & towing companies will also be used for securing targeted leads. It
is expected that 10-15 cold calls will be made daily.
4. Word of Mouth: After each service the footage of the person will be saved from
mobile and posted on the website so others can also review the service levels. A
small survey will also be conducted every 2 months to gauge the quality levels
offered to the clients. (Finch, 2006)

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Media Summary
Media
Medium Vehicles GBP (£) Reach
Frequency per
annum /
Impression
Newspaper
News Extra
City Final £4,500 20% 15/52K
Oct’11
To
Sept’12
4(Offline)
/245K
12
Months Magazines Auto Trader £5,500 55%
1 time
(Online)/10.2M
Internet
Facebook
Hi5 £12,000* 15% 20000
Leaflets &
Direct
Mail** Hardcopy £2,000 10% 15/16K
Total
£24,000
Per
Month
9%
Target
Audience
10.5 million
Impression
*Budget will be negotiated for online marketing (Social media) after 3 months
** 30 Direct Mails will be posted every alternate date. 1000 leaflets will be distributed every
alternate day. Table 1. Media Summary (Ronald, 2008)
Summary of Marketing Activities
Personal
Communication Advertising
Sales
Promotion
Public
Relations
Instructional
Material
Corporate
Design
Selling Newspaper
Sign-Up
Rebates
Press
Releases Website Signage
Customer Service Internet Coupons
Special
Events Brochures Interior Décor
Telemarketing Direct Mail Manual Equipment
Word of Mouth leaflets Stationary
Magazines Uniforms
Table 2 Summary of Activities undertaken (Perry, 2008)

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Figure 4(Finch, 2006)
Sales Activity Plan
The management is planning to perform the following activities for brand awareness and
attracting new customers:
1. Special Package: We will offer the young car owners the facility to maintain their
warranty at lower prices as a marketing campaign as most car owners believe they need
to go to their franchise dealer for servicing to maintain warranty.
2. Sales Promotion using Sign up rebate & Coupons: As part of the brand awareness new
customers who register online or call 1 day before they come shall be offered 20%
discounts. Also if they come with the cutting of the newspaper advert then also they will
be entitled of discounts.
3. Special Events: will be organized every month where customers will be guided about the
daily maintenance of their vehicles & how to reduce the expenses by using common
sense. 1 Press release every week will be made by the firm.
•Press Releases
•Leaflets
•Print Media
Pre Launch
Strategy
•Coupons on Website & Newspaper
•Social Media
•Leaflets
•Cold Calling
Launch
Strategy
•Survey & Print media
•Word of Mouth Video on Site & Leaflets
•Corporate Appointments & Direct Mails
Post Launch
Strategy

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4. The Website: (snap shot in Appendix A) will be used for distribution coupon codes to
direct email addresses & also for giving brief information related to the maintenance and
avoiding common mistakes during driving. (Perry, 2008)
Pricing and production cost
After a proper evaluation of a market and the competitors C2U has decided to launch their
business with skimming pricing strategy. Skimming strategy is chosen by the company as we are
intentionally keeping our services at the high price compared to our competitors to gain more
profit by targeting the middle class and upper class customers. We will not be having problems
in the market as our quality service with the high price will bring new advantage for our
customers for which they will not hesitate to pay (Ferrell and Hartline 2011). C2U is mainly
approaching market with this particular strategy so that they can penetrate the market and attain
good amount of loyal customers. C2U is got various services which range from £30 to £175 and
so on, and these services will be provided by highly professional and trained mechanics who will
make sure that every service is a good experience for all our customers. As compared, the
competitors who offer their services from £30 to £165 but do not give preference to their
customers individually.
SWOT/PEST Analysis
SWOT
This section is going to help us by knowing the internal factors which is going to affect in the
decision making process of Come 2 US (C2U) Auto Repairs.
Strengths
 Customers: The region has increased number of vehicles and expected to growth by 7%-
10% in next 5 yrs. So more customers for the firm. (Cardiff report, 2010)
 Product: Upgraded instruments are available for the garage so quick services can be
rendered to the customers. Cardiff has congestion problems but the garage has enough
parking space and at least 5 cars can be repaired at any time. The garage has 24/7
facilities so there is no problem of time which is expected to give competitive advantage.
 Promotion: The firm has established good relationship with insurance firms so they will
provide targeted leads to the firm.
 Prices: The prices offered are competitive with other repair garages.
 Place: The location of the garage is easily accessible and there are enough footfalls to get
noticed.
 Finance: The firm has allocated resource of 24,000 for marketing the services for the
first year

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 Operations: The managers are self-motivated and everyone will be offered profit sharing
schemes to support the hygiene factors of each employee. (Barrow, Brown & Clark,
2004; Mintel Reports, 2010)
Weakness
 Customers: The garage doesn’t have any brand loyal customers & is dependent on new
customers.
 Product: MOT services are not yet started which is mostly expected by customers.
 Place: There are already few other repair centres available within 2 miles radius.
 Price: Our Company is not price leader but price follower.
 Promotion: Customer friendly website takes time and no one in the firm is an IT expert.
 Operations: The employee turnover is mostly high in auto repair business due to odd
working hours. (Barrow, Brown & Clark, 2004; Mintel Reports, 2010)
Opportunities
 The growth rate of car owners has been observed at 10% and around 53% of cars in UK
are 7 or more years old, which is a prime opportunity for repair sector.
(Barrow, Brown & Clark, 2004; Mintel Reports, 2010)
Threats
 There are more than 150 repair garages in the region already and they have established
clients.
 The firm is maintaining national minimum wage for the workers but many Asian and
Polish workers are working below that standard, so other garage firms can offer lower
prices for the services.
 There will be fall is sales during the winter season due to heavy snowfalls.
(Barrow, Brown & Clark, 2004)
PEST Analysis
This section will analyze the macro factors which are affecting the auto repair business. Some
highlights of each factor are as follows:
Political
 Regulation Changes: All the used cars should be converted to DAB digital radio by 2015
according to UK government and they can be fitted inside the firm.

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 The prices of car insurance has increased so that is also affecting the purchase of new
cars so people are reluctant to buy new cars and maintain their current cars to manage the
high insurance which has increased by 40.5% between Oct 2009-oct 2010.
(Mintel Reports, 2010)
Economic
 Increase in Car ownership: There has been increase of 11% in car ownership during
period 2001-2009 and this shows more cars in the market would be coming for repair.
(Mintel Reports, 2010)
Social
 More Women on Road: In UK more females are doing financial research online and also
males are more involved in the house hold work while women are taking decisions
related to automobiles. It was also observed that there is increase in accidents by women
so they can be a good target market. (Mintel, 2010)
Technological
 There has been constant innovation in the car repair services, most of the processes are
automated so the faults can be checked by computer; this can help to gain competitive
advantage as there are many repair shops which rely on manual labour or traditional
approach. In 2010 around 200,000 vehicles were purchased from online sources, although
only 10% prefer to buy online but this reflects most of the consumers rely on updated
information from online sources. (Mintel Reports, 2010)
Contingency plan
In the modern business world and with the unpredictable economic scenario, recognizing the
future risks and events is of outmost importance. The events with risks of it affecting the
business may involve fire; absence of the mechanics, economic crises likes recession, low sales
etc which are not always predictable should be dealt with extreme caution and with pre defined
plans. Hence our business will come up with a contingency plan for dealing with the various
unpredictable risks and events that may occur during the course of our business. In Come 2 Us
(C2U) Auto Repairs, the plan will be made on the following aspects. (Heldman 2005)

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Contingency Measures:
Come 2 Us (C2U) Auto Repairs will come up with a contingency plans for the following events
which may pose a threat to our business:
 Absence of Mechanics: Illness or other reasons that may cause the absence of mechanics
will be dealt by keeping a backup with a trainee to fill in the place of the main mechanic.
 Data loss: It is important for our business to keep and update the details of the customers,
their cars and the services provided to them. To ensure that the data is safe, the business
will back-up the data on regular intervals to avoid hassles in dealing with the requests of
the customers.
 Economic Crises: Economic crises such as recession will be faced by contracting
employees without guarantying any fixed number of hours per week, rather the employee
will be expected to be on-call and will be waged for the hours worked and this will serve
the purpose of avoiding layoffs, to boost up the revenue, various promotional measures
will be adopted such as free check-ups, free next services etc.
 Stocks: The firm will ensure the availability of spare parts and other equipments round
the year with checks on regular intervals. It will also be ensured that the parts are updated
in accordance to the auto models.
 Health and Safety: For health and safety purpose, an area within the premises will be
allocated with first aid kits and the description of all the basic first aid measures.
 Emergency Situation: To deal with emergencies such as fire, drills on regular intervals
will be organized and the staff will be made aware of the location and operation of the
fire extinguisher and also an emergency exit and assembly premises will be made.
Staffing Requirements – Recruitment and Training:
Come 2 Us Auto Repairs (C2U) is about to enter the souk of the Auto-Repairs in UK. The
company is going to enter in Market this year mid of October. This project is started by
Mr.Rishabh Daga and his 4 partners who believe that opening a Auto Garage business is not only
giving auto-repair services but it is more about offering the finest car services to the customers
and also providing with basic knowledge about the Automobiles to their customers. Therefore, it
has becomes necessity for COME 2 US (C2U) auto repairers to get into the market with well
defined and organized system so that all the managerial & operational department can work in a
professional manner. After establishing itself in Cardiff, C2U aims to expand the business to the
different parts of country. The company is initially planning to recruit one Male mechanic and
one Female mechanic under the supervision of the senior mechanic who can later be promoted to
senior level in different branch or department of the firm.C2U auto repairs is also going to run
classes to give basic information regards to maintain a car for its customers, where special

19
attention would be given to female drivers. These classes would generally be held every
weekend on afternoon so that maximum customers could get the benefit.
Hierarchy of COME 2 US Auto Repairs:
Managing Director/ Senior Mechanic:
The Managing Director of C2U Auto Repairs is Mr.Rishabh Daga. His educational backgrounds
are B.Tech and M.tech in Automobile, from IIT- Roorkee, India, which is one of the best
institutes to study automobile in India. He is also having work experience of 7 years in one of the
top Auto-Repairs company in India. His main motive is to establish his business in UK and bring
it to a well established point by using all his knowledge about all automobiles parts. The passion
for cars and dream to provide outstanding services made him open his own Garage.
Marketing Head:
Ms. Ruchika Batra is been designated as marketing head of the business. She has worked as the
Marketing head of Public Relation Company in India and also having work experience of 5
years. She is also going to take care of the Reception work of the company. She has an ability to
help build a brand name and knows very well which market to target on and what strategy should
be used and to identify the market break which makes the business more attractive and
productive.
Chief Finance Officer:
All financial records will be maintained by Mr. Viral Gada who is a FCA graduate and also done
CIMA course. He will be looking at all the financial aspects of the business. Mr. Viral Gada will
help the company to minimize risks by giving proper and analyzed financial reports so that
systematic decisions are taken to invest the right amount on the proposed strategy.
Chief Operating Officer:
All the administrative work will be carried out by Mr. Aankit Singhania. Mr A Singhania is been
taking care of all administrative work of his business which is mostly related to dealing of
Automobiles from last 10years. He holds a Masters Degree in Business Administration, which is
awarded by UWIC.
Auto Repair Manager:
The Manager Ms. Prachi Dikshit is going to look after all the selection process and is responsible
for assigning work to the employees of the company. She has worked as a HR head of NDTV for
6 years and has hosted many shows related to auto drive. Her interest in cars made her to accept
this offer of being a Senior Women Mechanic, one women mechanic will be assisting under her.
She is also going to work as a senior women mechanic in the company.

20
Company’s Five Business partners’ are completely paying attention and provoked to expand the
business to much large scale with the period of time. Company is also planning to increase its no.
of employees with in some time. With that employees who all are working with us will be given
promotion accordingly to their performance and in salary too with good incentives.
Recruitment process:
All the Recruitment for the employees in C2U Auto REAPIRS will only be done, further if, the
candidate meet all the criteria’s which are being set by set by the UK Government Recruitment
Laws listed on the website. (Business Link 2011)
Recruitment of Employees: There will be various vacancies for different positions at C2U
Auto Repairs. All the required job openings will be send in notice to people by multiple
channels of advertisements, such as:-
1) Online Job recruitment websites
2) Social networking websites
3) Job placement agencies.

21
**Current opening - Mechanic: C2U Auto Repairs is currently looking for One Male and One
female Mechanic. Mechanic will be working under senior mechanics supervision. But with that
they should already be aware of general requirements and knowledge about the automobile and
its parts. Mechanic should have patience to work properly and should be ready to work according
to company’s rules and regulations.
Mechanics have got to acquire:
 Candidate need to have ability to investigate the problem and can give the solution for
the defect or repairs.
 Should be able to change tyres, engine oil, clean the machine parts, etc.
 This work requires better work quality technology for engine and machine, so they
should have computer skills for detecting and repairing, electronic and electrical
combination in all vehicles.
 Should be able to work within the dead line given.
 Should be able to work under pressure with patience.
 Preference will be given to those candidates who have familiarity and have
knowledge about automobiles and auto repair.
 Should have at least 1 year of work experience.
Stages of Interview:
Selection process for a Good and Trained Mechanic is divided into three different stages.
(Nankervis et al. 2009)
Stage 1: Processing through different applications.
 Firstly, CV’s will be short listed of deserving candidates who are holding good work
experience and who are legally entitled to work in UK by providing their valid
documents.
 Local people will be given 1st
preference.
 Male/female candidates who all are eligible needed to sign a minimum of 1 year contract.
Stage 2: Interview with HR manager.
 HR manager will be taking interview of shortlisted candidates after scrutiny of all the
documents of the candidate.
Stage 3: Interview with Managing Director:
 After the approval of HR manager the selected candidate will be than eligible for our
final round which is to prove their work to our senior mechanic. If our mechanic is

22
satisfied with the work of the candidate he will then give a approval for the post to be
given for the candidate.
Compensation and Wages:
All payment and salary will be given according to their skills and given responsibility in which
the employee is being assigned. According to the rules of the UK salary policy and the work is
been given according to the skills of the Employees, Management will be giving the salaries
accordingly. (Condrey 2010)
The payroll table will be as follows:
Designation Payroll/Hour Head Count Total Amount/PM
MD/Senior Mechanic 6.08 1 912
Marketing/Receptionist 6.08 1 912
CFO 6.08 1 912
HRM/Senior Female
Mechanic
6.08 1 912
COO 6.08 1 912
Mechanic (part time) 5.93 2 948.80
Total 5508.08
*Note: According to new National minimum wage rate of UK it is going to be 6.08 GBP/HR
from 1st
Oct. 2011 (Sources: HMRC).
Employee benefits and schemes
All employees working in C2U Auto Repairs will be provided Benefits and Incentives
according to the work and responsibilities they deal in with. Along with the incentives Company
is also planning to provide different beneficial schemes to the Employees:
 Accidental insurance will be given to all Mechanics working within the company.
 Pension schemes
 Parenthood leaves
 Meal while working
 Employees entitled of 24 days annual paid leaves.

23
Resource and Requirements
 In order to provide a quality and hassle free service to our customers we would like to
make an investment considering all the aspects of the business. The location is decided
keeping in mind the convenience of the customers. It is setup near city centre Cardiff.
The place will be taken on a lease basis with fully equipped machinery for providing
better quality service to our customers. Highly qualified and well experience mechanics
will be hired in order to deliver best services. (Atrill and Mclaney 1994)
 The main requirement for our business will be setting & installing up of bays which will
help in lifting of cars and servicing them. The other requirement such as inventory will be
bought from wholesalers and manufacturers after reviving all possible discounts and
offer.
 The other equipment’s like under car tools, air-condition tools, hand tools, washing pump
etc would be bought. The other requirement such as computer, music system, television
will be bought after going through each and every deal in the market. We will also be
purchasing a used motor van for pick up and drop of the cars of our customers so that
they can save their time and money.
Sources of Funding and Investment
Come 2 Us will be investing £100,000 in the business. The amount of investment will be self-
financed and bank loan. As we are 5 partners in the business we have decided that each partner
will bring £12,000 of own funds in the business which will result in to a sum total of £60,000 as
an initial capital investment. We will also be taking bank loan on our business which will
amount to £40,000 on the basis of 5% interest rate for 60 months. As our company will be a
private limited company we have decide to issue 100 shares among the 5 partners which result
into 20% each. The share of profit and loss of the business will be disturbed equally among all
the partners.
Our initial investment in the equipment is projected to be £60,000 which will be depreciated at
20% per annum for five years. The overheads expenses as shown in the chart below will be
£221,750 for first year, £285,500 for second year and £356,000 for the third year.

24
Figure 5. Total Overhead Expenses of Come 2 Us (C2U) Auto Repairs.
Personal Survival Statement
As projected in our financial statement in the year one the company is gaining profit and it is
gradually increasing in the consecutive years. Our profit in year one is £44500, in year two it is
£1,54,600 and in year three it goes up to £2,38,750. This shows that our company is running
efficiently and we will be able to meet our personal expenses without any hurdles. As shown in
chart each partner is withdrawing £905 in the first year and in year second and third each partner
is withdrawing £1100 to meet their personal expenses. (Kimmel et al. 2011)
Expenses Year 1(£) Year 2(£) Year 3(£)
Rent 400 400 400
Food 200 300 300
Entertainment 75 100 100
Mobile phone 50 50 50
Gas/water/electricity bill 80 100 100
Personal travelling
expenses
100 150 150
Monthly expenses of each
partner
905 1,100 1,100
Monthly expenses for five
partners
4,525 5,500 5,500
Yearly expenses for five
partners
54,300 66,000 66,000
Monthly amount
withdrawn by five
partners
4,560 7,500 10,000
Profit 44,500 1,54,600 2,38,750
Figure 6. Personal Survival Expenses.
0
100000
200000
300000
400000
Year 1 Year 2 Year 3
Total Overhead Expenses
Total Overhead
Expenses

25
Financial Projections:
Cash Flow:
A good Cash flow helps the business in meeting its day to day expenses and shows how good the
company handle’s its cash while meeting all its business operations. A good cash flow is a signal
of a good venture. In our case as shown in the table below company is expecting a good cash
flow from the first month and it is continuously growing as the business is expected to develop.
The projected cash flow for the first year is £86,500 for the second year it is £236,200 and for the
third year it is expected to be £448,030. As our cash flow is good we would repay our loan on
time and meet all expenses smoothly. (Stickney et al. 2010)

26

27

28
Profit and Loss Account
Total sales: The total sales expected for the first year is £2,90,250 with an expected net margin
of 15.33 % . In the second year it is expected to be £4,76,400 with a net margin of 32.45%.
While in the third year it is expected to be £6,42,750 with a net margin of 37.14%. This indicates
that there is a good net margin in every year and it indicates the expansion of business.
Purchases: It includes the initial purchases such as machinery, equipment, furniture etc. Further
it also includes raw material required for the business. Purchases of raw material will be made in
every month and it will grow as the business expands.
Gross Profit: The gross profit of the business for the first year is expected to be £266,250 with
the margin of 91.73%. In the second year it is expected to be £440,400 with the margin of
92.44%. While in the third year it is expected to be £594,750 with the margin of 92.53%.

29
Expenses: The expense is outflow of cash from the business. The major expense of business
includes wages & salaries, rent & rates and other expenses. Wages and salaries are expected to
grow every year as we will employee more employees as the business expands. Rent and rates
will be fixed as we have rented the property and signed a contract. Other expenses such as
insurance, advertising, light, heat and power and miscellaneous expenses will increase
accordingly as the business will grow.
Balance Sheet
The net assets of the business are projected to be £95,600 in the first year and £219,280 in the
second year while in the third year it is projected to be £410,280. This indicates a good growth in
the business and further allows the idea of expansion of new branches in other cities.

30
Net Profit: In the initial stage as the competition would be high and we will be new in the
market we would be gaining less profit in the early months but still we are able to achieve profit
as shown in the chart from the first year which is projected to be £44,500, in second year it is
£154,600 and in the third year it rises up to £238,750.
Figure 7. Projected Net Profit.
Break Even sales: As our business is running smoothly we are comfortably achieving our break
even sales. This is because of our excellent customer service and variety of services and products
offered to the customers and in return it has helped business in attracting more and more
customers.
Figure 8. Break Even Sales.
0
50000
100000
150000
200000
250000
Net Profit
Net Profit
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
TotalSales
Break Even Sales
Break Even Sales

31
Total Sales:
Figure 9. Projected Sales of Come 2 Us (C2U)
As show in the chart above we will gain fewer sales in the initial stage as we will be new in the
market and customer would not be aware of our business. At the later stage after applying all the
possible promotion techniques we assume that we will be able to gain more sales. Even the word
of mouth will help us in getting our sales target and will help us in achieving good profit margin.
We are going to offer two types of sales which include servicing and product sales which are
projected as follows:
1) Services: It is the main aspect of our business which is generally a mechanical work. It
includes various servicing of motor car such as complete servicing, brake servicing, oil
change, engine tune up, electrical repairs etc. We assume that our servicing will increase
as our business will grow and it is projected below.
2) Product sales: we will also sell products related to our garage. Products includes tyre
sale and accessories of cars such as air freshener, hand tissues, portable chargers, head
rest etc. Our product sales will be limited at the initial stage but it will increase as the
business expands as shown in the below table:
0
100000
200000
300000
400000
500000
600000
700000
Total Sales
Total Sales

32

33
Financial Ratios
In the below table we can all the projected financial ratios for three years such gross profit ration,
sales ratio, growth ratio, net margin ratio etc of Come to Us (C2U) Auto Repairs.
Gross Profit Margin
(GP/Sales)
91.73% 92.44% 92.53%
Net Profit Margin
(NP/Sales)
15.33% 32.45% 37.14%
Break Even Sales
(Overheads/GPM)
£241,742.07 £309,173.51 £384,740.10
Return on Capital
(NP/Capital end of yr)
46.55% 70.50% 58.19%
Sales Growth %
(Sales yr 2 – Sales yr 1)/Sales year 2
39.07% 25.88%

34
Conclusion
The above detailed research from our group makes clear that opening an auto repair centre will
surely be a beneficial venture. This venture will not only prove beneficial for the partners of the
firm but also to the banking society as they will also get advantage for the money they invest for
the firm. The research is based on realistic factors which will help our investors to understand
our business and analyze the projected financial aspects in detail.
As the report shows the growing need for an auto garage we feel that all are projected figures are
very much achievable and in a very short period the invested money can be recovered and the
firm will have a its own goodwill in the market and will be an independent firm cruising in auto
repairs market. Come 2 Us Auto Repairs (C2U) is not only just profit making company but will
also make good number of loyal customers as they strongly believe that no company can sustain
in a long run without a good number of trustworthy customers. As seen in the report C2U will be
offering various and expertise services to their customers which help them to rectify the
problems in their car.

35
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36
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37
Appendices
CV’s
1. Mr. Rishabh Daga
Nationality: Indian
Designation: Managing Director and Senior Mechanic of Come 2 Us auto repair
Education: 2002-2004 IIT- Roorkee M-Tech
1998-2002 IIT- Roorkee B-Tech
Professional Qualification: 7 years of work experience in One of Best Auto-Repair Company
in India.
2. Ms. Ruchika Batra
Nationality: Indian
Designation: Marketing Manager
Education: 2005-2006 University Of Wales Institute, Cardiff (UWIC) MBA
2002-2005 University Of Delhi BSc. (Marketing)
Professional Qualification : 5 years of work experience in Public Relation Company as a
Marketing Head.
3. Mr. Ankit Singhania
Nationality: Indian
Designation: Chief Operating Officer (COO)
Education: 2000-2001 University Of Wales Institute, Cardiff (UWIC) MBA

38
1997-2000 University Of Wales Institute, Cardiff (UWIC) BBA
Professional Qualification: 10 years of work experience in Automobile Company as
head of Sales and other operational departments.
4. Mr. Viral gada
Nationality: Indian
Designation: Chief Finance Officer (CFO)
Education: 1997 -2001 ICAI FCA
2001-2002 University of Wales Institute, Cardiff (UWIC)MBA
2002-2004 CIMA
Professional Experience: Runs his own Finance consultancy from last 7years.
5. Ms. Prachi Dikshit
Nationality: Indian
Designation: Auto Repair Manager & Senior Female Mechanic.
Education: 2004-2005 University of Wales Institute, Cardiff (UWIC)MBA
2001-2004 University of Wales Institute, Cardiff (UWIC)BBM
Professional Experience: Worked as a HR Manager in NDTV for 6years.

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