RESEACH AND BUSINESS
PLAN FOR; BOKMOR AUTOS
PREPARED BY BOKAMOSO NTESETSANG
RCH AND BUSINESS PLAN
VISION
Our vision is to establish a standard and world class auto repair garage whose services and
brand will not only be accepted in Moshupa but also in other areas in Botswana.
MISSION
Our mission is to provide professional auto repair, maintenance services and other auto
repair related services that will assist businesses, individuals, households and non-profit
organizations who owns automobiles in ensuring that their automobiles are always in good
shape. We want to build an auto repair garage that can favourably compete with other
leading brands in the automobile maintenance and repair services industry.
1
SECTION 1 APPLICANT’S DETAILS
1.1 Personal Details
Surname
Ntesetsang
Other names
Bokamoso
Identity number
011510421
Date of birth
10/12/1992
Gender
Tick
Male
Female
Tick
Yes
No
P O Box 62 Moshupa
Sebeso ward, Lotlhakane west
Moshupa – Manyana constituency
Landline
Cell phone
75250681
72761537 /76278464
Disability
Postal address
Physical address
Constituency
Telephone contacts
Email
Bokamosomoremi91
Marital status
Single
Highest qualification
Married
Divorced
Widowed
None PSLE JC BGCSE Certificate Diploma degree Others
2
1.2 Applicant references
Name
PotsoengNtesetsang Name
Postal address
P. o Box 62
Moshupa
Postal address
Telephone
facsimile
Mobile number 74615226
Pelenyana
Badirile
P. o Box 69
Moshupa
Telephone
Facsimile
Mobile number 77431377
1.3 Applicant’s next of kin
Name
Relationship
Identity number
Postal address
Telephone
Facsimile
Mobile number
Bonolo Ntesetsang
Sister
653520616
P O Box 62 Moshupa
76205252
1.4 Businessdetails
Business name
Type of business
Nature of business
Bokmor autos
Sole
Partnership Company
proprietor
Others
Registration/ Incorporation
Sector
Services
Number
Type
Auto mechanics
Date
Contact numbers
Telephone
Mobile
72761537/ 76278464
Postal address
Proposed business location
Numbers of owners
Indicate business status with a
tick
Moshupa
1
Start-up
.
3
Existing
1.5 Business/ company ownership details
Name
Bokamoso
Ntesetsang
Nationality
Motswana
Identity no
011510421
Position
Director
shareholding
100%
SECTION 2: BUSINESS PLAN
2.1 PROJECT DESCRIPTION
A Bokmor auto is a new business with the aim of maximizing profits in the auto repair industry. We
want to compete favourably with the leading auto garages in Moshupa which is why we have but in
place a competent quality assurance team that will ensure that every repairs, services and
maintenance carried out or related services rendered meet and even surpass our customers’
expectations.
The business will provide auto- electrical and mechanical repairs, servicing and modern test
inspections for all makes and models of vehicles.
We will work hard to ensure that Bokmor autos is not just accepted in Moshupa but also in other
areas where we intend opening our garages. Our products and services are listed below;
Mechanical and electrical
Repairs will involve utilizing industry- be spoke technology by way of diagnostic software to
expediently pin point faults
This system provides information and suggested labour time enabling the centre to provide
customers with estimates cost savings
The centre will also service including fast tires change and periphery service such as collection and
delivery for VIP customers. The majority of services will be delivered at centres premises.
-
Repairing and replacing automotive engines
Performing general automotive repairs
Power train repair services
Scheduled and preventative repair and maintenance services
Repairing trucks
Repairing and replacing automotive exhaust systems
Repairing and replacing mufflers
Repairing automotive transmissions
Repairing automotive brakes
Performing automotive electric repairs
Performing automotive wheel alignments
4
-
Repairing automotive radiators
Wheel alignment and repair services
Other repair and maintenance service
5
SECTION 3: PROJECT LOCATION
3.3 location in a relation to the target market
Provide a description of the location in relation to the target market that the business
intends to service.
Premises and operations
The business to be situated along Moshupa road. Occupation of the premises (40m2). The precise
size and terms will be decided by the owner when is rented, but when is permitted by the land
board it will follow rules and regulations of the act.
The premises to be built- purpose will consist of 3 main areas; office combined with the reception,
garage and storage. There will be off street space/ parking for 5 vehicles plus. The garage will be able
to work 3 cars respectively, simultaneously with space to house 8 vehicles overnight.
Hours and capacity
The centre will operate Mondays to Fridays from 8:00 AM to 13:00 then from 14:00 to 17:00 hrs.
Hours can be extended if there is sufficient work which will improve capacity when necessary.
Typically the range of labour required for
Mechanical repairs is between 60 minutes and 1 week (e.g. reconditioning an engine or gearbox)
Electrical repairs; 30 minutes to 3 days
Modern tests; 3 hours
Servicing; 2-4 hours
Changing tires; 60 minutes – 3 hours.
6
SECTION 4: ORGANIZATIONAL STRUCTURE
4.1 fill in the details of the proposed employees
Name
Bokamoso
Ntesetsang
Position
Director
Dikabelo
Sethibe
Mechanic
Qualification
- Certificate in
Auto
mechanics
- Certificate of
appreciation
as deputy
general
secretary
- Certificate in
basic security
officer
Certificate in auto
mechanics
Experience
3 years
Salary(cost)(P)
2 000
3 years
1 500
3500
7
SECTION 5 PROJECT COSTS
5.1 Project cost-assets
Item
Supplier
Jack bottle titan 3
ton
Haskins
Air compressor
Hydraulic floor jack
Ring squeezer
Engine crane
Spring compressor
Axle stands
Car stopper/choker
Pneumatic grease
dispenser
Bench drill
Gearbox jack
Macafric 85 pce
professional tool set
Oil drain/ caddy
Torque wrench
(heavy duty)
Bearing press
machine
Workbench with
vice( steel top)
Drill imp hit 13mm
2SP V/R 690W
Ryobi A/ grinder
Ryobi bench grinder
Gear puller set
Bench grinder
Pliers set
Punch set
Screwdrivers set
Chisel set
Spectacle amber
safety
Goggles clear safety
Fire extinguisher
First aid kit box
Motoquip 200 Rm
½DR pneumatic
ratchet kit (9- 19
mm) sockets
Creepers
Pressure washer
Quantity
Unit cost
Total
1
322.90
350.00
Gabs tool mart
Gabs tool mart
Gabs tool mart
Gabs tool mart
Gabs tool mart
Haskins
Midas
Gabs tool mart
1
1
1
1
1
2
4
1
1716.94
1737.39
359.00
3836.66
302.11
185.00
140.00
1251.84
1800.00
1800.00
370.00
3900.00
320.00
190.00
570.00
1300.00
Haskins
1
1602.81
1620.00
Gabs tool mart
Gabs tool mart
1
1
5792.90
1850.00
1900.00
Gabs tool mart
Gabs tool mart
1
1
1463.16
1963.16
1500.00
2000.00
Haskins
1
1350.00
1400.00
Gabs tool mart
1
552.00
555.00
Haskins
1
977.68
990.00
Game
Game
Haskins
Gabs tool mart
Gabs tool mart
Gabs tool mart
Gabs tool mart
Gabs tool mart
Haskins
1
1
1
1
1
1
1
1
2
870.00
650.00
450.61
650.00
218.18
296.93
430.51
359.41
18.30
890.00
655.00
455.00
655.00
220.00
298.00
445.00
365.00
37.00
Haskins
Haskins
Haskins
Game
Gabs tool mart
2
1
1
1
1
17.24
195.71
697.93
150.00
558.97
34.50
200.00
700.00
155.00
560.00
Gabs tool mart
Game
1
1
319.19
1400.00
340.00
1450.00
8
Storage organisation
set
Eye wash basin
Haskins
1
685.03
700.00
Rivet gun
Gabs tool mart
Gabs tool mart
1
1
1
180.00
34815.00
190.00
35000.00
39.53
728.67
50.00
750.00
Haskins
Haskins
Haskins
1
1
1
1
1
2
258.81
229.33
106.00
270.00
250.00
110.00
Haskins
Gabs tool mart
Gabs tool mart
Gabs tool mart
2
2
2
1
150.00
75.00
32.00
142.63
300.00
150.00
65.00
150.00
Electro –hydraulic 2
post lift 4ton impact
Tape measure
Oil filter wrenches
Battery charger
Jumper wire set
Oil can flex/ridged
spout
Feeler gauge
Gasket scrapper
Test light
Digital volt meter
Gabs tool mart
Gabs tool mart
Sub Total
66 009
5.3 GRAND TOTAL
Total amount applied for
P 98 759.00
Ninety eight thousand seven hundred and fifty nine( pula)
9
5.2 Project costs-working capital
Item of working capital
State the number of
months the working
capital will cover
Total working capital
required (in Pula)
Transport
Electricity
Rent
Software applications
Stationery
Advertising/marketing
Salaries
3
3
3
1
3
1
3
2000
750
10 500
2000
4000
3000
10 500
32 750
Sub Total
SECTION 9: SWOT ANALYSIS (STRENGTH, WEAKNESS, OPPORTUNITIES AND
THREATHS)
STRENGTHS
- Competitive prices
- Ability to communicate effectively with
-
customers winning their trust
Capability for growing own talent (
apprenticeship scheme refers )
OPPORTUNITIES
-
WEAKNESSES
- Out of stock problems on popular items
- Limited start-up cost
- Lack of customer loyalty to dealers more
loyalty towards brands.
THREATS
Local people looking for work including
young ideally suited for apprenticeships.
Economy growing
Availability of parts
Governments interest in reducing
emissions damaging the environment.
Extend service hours
-
10
Existing competitors and new entrants.
Political and economic stability
Location of land might not be ideally
situated.
No insurance available for businesses
SECTION 6: PRODUCTION PROCESS
(a)
Outline the production process detailing the stages of production,
machinery to be used for production and the activities at each stage.
time/cost
Estimate
car/custo
mer
Delivery to
customer
Repair
Replacement
Test Trial
1. The customers comes in with the mechanical problems of his car
2. Wherein a job card is prepared based on the problems faced by the customer. The foreman
then further run the diagnostic checks of the car for any additional problems.
3. The customer is then provided with time and cost estimates depending on whether the parts
need to be repaired or replaced. On agreement of the customer, the job is allocated by foreman
to the concerned mechanic.
4. It is necessary to test run the car by the foreman before it finally delivered to the customer,
for quality assurance.
(b) State where you will be sourcing your machinery.
Machinery
Car hoist
Bearing press machine
Auto diagnosing machine
Air compression
Welding machine
Place of origin
Gaborone
Gaborone
Gaborone
Gaborone
Gaborone
11
Supplier
Gabs tool mart
Gabs tool mart
Auto centre
Gabs tool mart
Haskins
(c) List and describe the input resources (raw materials) required in
production.
Raw materials
Workbenches- steel top with
vice
Stationery
Place of origin
Gaborone
Supplier
Haskins Botswana
Gaborone
Aptec computers
Trash cans
Grounded extension cords
Work lights
Storage cabinet
Mechanics tool box
Printer
Gaborone
Gaborone
Gaborone
Gaborone
Gaborone
Gaborone
Gaborone
Haskins Botswana
Haskins Botswana
Haskins Botswana
Haskins Botswana
Haskins Botswana
Flammable Material
Storage Locker - meeting
fire and building codes
Constructed facility
Haskins Botswana
Moshupa
(d) How much will you be producing at the start of the project?
Product or service
Major mechanical
services(reconditioning an
engine or gearbox)
Electrical services
Modern tests
Minor services
Changing tires
Frequency
7 days
Quantity
2
30 minutes- 3 days
3 hours
3 hours
3 hours
12
2
1- 2
3
2
(e) Calculate the cost of production on the estimated quantities of
production.
Product or service
Major mechanical
services(reconditioning
an engine or gearbox)
Electrical services
Modern tests
Minor services
Changing tires
Quantity
5
Unit cost (P)
450
Subtotal (P)
2250
10
7
10
3
100
200
250
150
300
1400
500
450
(f) Estimate the quantity of products or services to be sold per week/month
etc.
Product or service
Major mechanical
services(reconditioning an
engine or gearbox)
Electrical services
Modern tests
Minor services
Changing tires
Frequency
7 days
Quantity
5
30 minutes- 3 days
2 Hours
3 hours
60 minutes- 3 hours
13
10
7
10
3
(g) Production process risk
List and describe the risks inherent to the nature of your proposed
business and the mitigation thereof using the table below.
List at least three.
Risks
Compressed air
- Workers could suffer blast injuries
from tyre or equipment explosion.
- Workers could suffer damage to
internal organs if air introduced to the
body
Mitigations strategies
-
Electrical equipment, portable appliances e.g.
Hand lamps.
- Workers could get electrical shocks or
burns from faulty equipment or on
installation
- Electrical faults also can lead to fire
-
-
Falling objects
- Failure of car lift, jack or other lifting
equipment may cause severe crush
injuries to an employee
-
-
-
Mechanical equipment
- Workers may suffer serious injuries
from unguarded moving parts of
machinery
- Workers can also get cut on sharp
edges or scald themselves o hot parts.
-
-
14
All workers trained in safe working
procedures and dangers of horseplay
Airline has Deadman’s handle
System inspected and serviced every
year by insurers
Low voltage 24 V hand lamps used
Residual current device (RCD) built
into main switchboard.
A few 240 V tools are used. All have
industrial plugs and leads
Testing carried out annually on all
portable 240 V tools and workers are
trained to carry out pre-use visual
checks and report defects
Safety checks of the electrical
equipment and installations are
carried out to ensure that equipment
continues to be safe. Where necessary
this is done by a competent electrician
Car lifts and jacks serviced by supplier
and inspected by insurers every 6
months
Jacks only used where ground
conditions are firm, stable and level.
Once vehicle lifted, axle stands used
Axle stands regularly maintained and
inspected
Safe working loads not exceeded
All mechanical equipment should be
checked before use and faults
reported.
Equipment not to be left running
unattended.
Guarding provided.
Ear defenders and goggles provided to
worn.
Grinding wheels changed by trained
person.
Manual handling
Movement of components
- Workers risk injuries or back pain or
pain elsewhere from handling heavy
and/or bulky objects
-
Workers are trained in safe manual to
ensure contractors follow safe manual
handling techniques
Manual handling aids are available, e.g.
lift truck handling
-
Vehicle movements
- Workers and
customers
risk
potentially
serious injury
if struck by a
moving
vehicle
-
Slips and trips
Doorways (rain), spillages, uneven surfaces
- Workers and customers may be
injured if they trip over objects or slip
on spillages, e.g. oil or water.
-
-
-
15
Safe parking provided for customers
without need for reversing
Marked walkways for pedestrians
Vehicles driven slowly around
premises
Workers ensure that cars being
manually pushed always have a person
seated at the wheel, to keep the
vehicle under control
Good housekeeping standards
maintained through training and
monitoring
Floors degreased weekly
Absorbent granules and sawdust put
on spills as soon as possible
Entrances and exits maintained
SECTION 7: TARGET MARKET ANALYSIS
(a) Identify the target customers and demonstrate how each customer
segment will contribute to the overall sale of the business. Provide
quantities required by each target customer and sales revenues to be
generated from each of the identified target customers. Use the sales
revenues calculated here in your cash flow statement for the proposed
products or service.
Identified customer
Government (government
vehicles)
companies (companies)
Public sector
Individuals and households
Quantity of product
5(900)
Cost (P)
4500
10(200)
7(250)
10(300)
3(150)
2000
1550
3000
450
11 500
(b) Overview of distribution process
The centre intends to place special emphasis on targeting the customer segments shown in table
Table Preferential-Customer Segment
segment
Government vehicles
Company vehicles
Public sector
Individuals and households
Customers are likely to be drivers of vehicles from sports cars to mini buses.
(c) Indicate how you will be able to distribute the products to your target
customer.
Advertising will incorporate 'special-opening offers' during months 1 - 3 the centre will set up
loyalty schemes of benefit to preferential-customer segments (Government; companies; publicsector workers).
Months 4 -7 the centre will utilize various media including social media to educate people about
the potential of routine servicing and safety checks to save lives. A degree of editorial coverage
is likely.
Beyond the first 7 months the main promotional activity will involve:
16
Development of the loyalty schemes – as part of this, the centre will deliver service
reminders.
Re-visiting public-sector buildings and hotels with new posters and leaflets.
Face-to-face appointments with decision makers in the Government and companies.
Direct marketing (e.g. hand-delivered mail) to named individuals within Government; and
companies
Leafleting: targeting vehicles parked in nearby industrial estates; car parks; and residential
areas.
Periodic advertising in various media
Bokmor autos will focus on its target market, the middle and the upper class and establish a
reputable image from that target market perspective by offering convenience, expedient
auto repair services, customer services excellence’ and working with local companies.
(d) List and explain the marketing strategies to be used by the business to
acquire and maintain a substantial share of the market.
1. Promotion
Repeat business and recommendation will be important source of new sales
2. Pre-launch
Awareness of the centre will be created by advertising hoardings in- and around the centre point of
sale materials. Advertising on the radio and personal invitations to an open day delivered to
government department and selected decision makers within companies.
4. in store marketing
(a) Implement a services subscription plan
Bokmor autos will offer regular maintenance services, consider and implement programs that
ensures customers return to the centre. Will create a subscription plan that allows customers to
spread their payments out over time in return for discounted scheduled services.
5. Simple survey.
It is important to survey not only your customers, but your competitors'. I will try to get a list of my
competitors' customers; even a partial list is great. Asking my competitors' customers instead of
mine shows me why people chose others' products or services over my own. It also shows me what I
can focus on in marketing to win over new customers. There are a few main areas to craft surveys
around:
-
Customer satisfaction
-
Competitor's performance
-
Customers' expectations and desires
17
We have also created strategies that will help us reach out to various corporate organizations and
households who we know can’t afford to do without our services. Below is a list of the people and
organizations that we have specifically market our products and services to;
-
Banks, Insurance Companies and other related Financial Institutions
Blue Chips Companies
Corporate Organizations
Manufacturers and Distributors
Transport Companies
Haulage Companies
Individuals and households
School with transportation system for students
18
SECTION 8: COMPETITORS AND COMPETITIVE EDGE.
(a) Identify the business’s major competitors.
Competitive environment
The vehicle repairs and servicing market in Moshupa is fragmented and relatively mature
thus there are many garages and individuals competing in the marketplace. However,
competitors providing integrated services for auto-body, mechanical and electrical repairs
are much more concentrated and tend to be specialists focusing on a particular brand of
vehicle (e.g. Toyota). This differs from Mr Ntesetsang’splan to create a 'one-stop shop'
delivering services for a wide range of vehicles.
(b) Explain how your products or service will be unique from those already in the market.
Further, a number of local competitors are not utilizing the same diagnostic technology the
centre will use. To repeat, this system provides repair information and suggested labour
time enabling the centre to provide customers with reliable estimates and cost saving and
accurately pinpoint faults. So confident is Mr Ntesetsang in his business's ability to pinpoint
faults the centre will boast a unique selling proposition: “Don’t pay if we cannot solve the
problem".
Payment terms
Credit is anticipated from local suppliers; through imports will generally need to be paid in
advance of delivery.
Stock
Stock (parts, filters) will be imported in bulk realizing cost saving for the centre. This assist
them to maintain competitive prices.
The high level of inventory planned will ensure customers are inconvenienced by delays
waiting parts.
Maintenance of equipment
Measures will be taken to ensure equipment is properly maintained. Supplier’s agreements
will be in place to assist with the task.
(c) Explain how the business will gain competitive edge over identified competitors .
Use of ICT and IT
Aside from the diagnostic software used in the workshop, previously described the business
will use IT for general word processing and producing invoices etc. and for (a) email
communications with customers and suppliers (b) research. The business will also set up a
website providing information for customers.
19
SECTION 10: IMPLEMENTATION PLAN
Activity
Secure place of operation
Purchase equipment and machinery
- Installation of machinery
- Operations start
Dates
Once the funds are approved
A week after funds are disbursed
Immediately after purchasing the equipment
Two weeks after installation
20
CASHFLOW PROJECTIONAL
Opening
cash on
hand
RECEIPTS
Sales
revenues
YDF Grant
YDF Loan
amount
Cash
contribution
Receipts
from
debtors
TOTAL
RECEIPTS
Capital
expenditure
Fixed assets
Working
capital
Total capital
expenditure
Estimated
operating
expenses
Rent
Transport
Electricity
Staff
Equipping
the office
Additional
expenditur
e
Software
application
TOTAL
OPERATING
EXPENSES
M1
M2
M3
M4
M5
M6
M7
M8
M9
M10
M11
M12
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3500
3500
3500
3500
3500
3500
3500
3500
3500
3500
3500
0.00
10 500
2000
750
10 450
2000
2000
2000
35 900
CLOSING
CASH ON
HAND
21