Hot Wire Squad
Business Plan
May, 2009
Alexandra XXXXXXXX
Joshua XXXXXXXX
Alex XXXXXXXX
Jackie XXXXXXXX
Table of Contents
1. Executive Summary
1.1. Objectives
1.2. Mission Statement
1.3. Keys to Success
2. Company Summary
2.1. Industry History
2.2. Company Ownership
2.3. Start-up Summary
3. Products and Services
4. Market Analysis Summary
4.1. Market Segmentation
4.2. Service Business Analysis
4.2.1. Competition and Buying Patterns
5. Web Plan Summary
5.1. Website Marketing Strategy
5.2. Development Requirements
6. Strategy and Implementation Summary
6.1. SWOT Analysis
6.1.1. Strengths
6.1.2. Weaknesses
6.1.3. Opportunities
6.1.4. Threats
6.2. Competitive Edge
6.3. Marketing Strategy
6.4. Sales Strategy
6.4.1. Sales Forecast
6.5. Milestones
7. Management Summary
7.1. Initial Employee Résumés
7.2. Positions
7.3. Personnel Plan
8. Financial Plan
8.1. Start-up Funding
8.2. Break-Even Analysis
8.3. Profit and Loss
8.4. Projected Cash Flow
8.5. Project Balance Sheet
9. Appendix
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Landscape 1
1. Executive Summary
The refurbishment of classic collectable vehicles has grown over the past thirty years.
With the innovation of new devices for these vehicles, it has become harder for the DIY
customer to install these devices on their own.
In the greater northern California area there is a need for a friendly, helpful autoparts
store that specializes in giving customers exactly what they need; be it a complete custom
wiring job, a helpful do-it-yourself guide, or that elusive part. We intend to fill that need.
Hot Wire Squad will offer the following services:
Custom wire jobs: This will vary on the vehicle, depending on what the customer would
like to have done to the vehicle, from the simplest job to a total custom rewire job.
Instructions for self doers: Our instructions will be done in a PDF format which can be
down loaded over the internet or printed and sent to the customer. We have instructions
which the manufacturer has sent with the products and instructions which our own staff
have put together. Our installers have a combined total of fifty years experience, they
have found time saving steps for installation which they will share with you in our easy to
understand instructions. Our instructions include full drawings, photos, and in-depth
instruction.
Supplies for the self doer: We carry the replacement bulbs for a 1966 Mustangs to a
complete wiring harness for a total restoration. We also have a network of contacts that
can do a search for that missing part that that will complete your classic car.
Custom design: If you have an idea and are not sure how to get it done, come talk to us.
Our team is always looking for a challenge. We can help you design your idea or we can
make it for you in our fabrication shop.
1.1. Objectives
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3.
4.
5.
Get our company up and running in a positive direction.
Sales increasing to more than $100,000 by the third year.
Bring gross margin up to above 30%, and maintain that level.
Sell $500,000 a year of wiring service, products, and online training by 2014.
Achieve outstanding customer service - we will measure this using a survey and
we will be striving to achieve 95% satisfaction.
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1.2. Mission Statement
At Hot Wire Squad, our mission is to provide an exceptional customer service experience
while providing long lasting services and quality products. It is our goal to promote the
interests of car lovers everywhere and become the go-to place for car wiring needs.
1.3. Keys to Success
The keys to success for our business are:
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Superior Customer Service: 24 hour high-quality care and service.
Convenience: our facility has four work bays, providing a quick turn around time
for our customers.
Location: located in between Sacramento and San Francisco, we are able to
service a large part of northern California.
Reputation: credibility, integrity, and 100% dedication from employees with 20+
years combined experience in the field.
Customer Satisfaction: we have our customers leave satisfied not only to please
them, but to spread our business through word of mouth. If they leave happy,
they'll tell their friends and family about us.
2. Company Summary
Hot Wire Squad (HWS) was started in 2009 by four college students who have a love of
classic cars. The group got together while taking a business class, during one of their
assignments to make a business plan and after many hours of research, the groups found
it feasible to start a custom rewire shop. With the inspiration of their Professor Michael
Garnier, Hot Wire Squad was born.
Because Hot Wire Squad is located in Fairfield, Ca., between San Francisco and
Sacramento, we are able to cover all of Northern California. Our facility has four work
bays, which allows us to have a quick turn-around time for your vehicle. We also have a
mobile rewire van, which can come to you in case your car cannot come to us. We have
extensive PDF files, listing how to do it yourself for those who want to put their own
custom touch on their car. With over 20 years combined experience in automotive
electrical and electronics our staff can fulfill a wide range of customer needs from a
simple audio system installation to a complete custom automobile rewire. The quality of
work and craftsmanship we offer is second to none. Every step of the rewire process is
completely blueprinted and checked for accuracy to ensure a quality-finished product.
We are experts in concealed wiring jobs, which means, when you lift the hood on one of
our high end builds you will not see the spaghetti-like mess of wires that you see in most
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engine compartments. Instead what you will see is a clean engine compartment with little
or no exposed wiring.
2.1. Industry History
Before 1910, automobiles had no electrical system except for a few which used a dry
cell to power a horn called a Klaxton. By 1911, the storage battery was determined to be
superior to dry cell technology because it held a longer charge and could be recharged.
Headlights were soon introduced, as was the Dynamo, which was a generator used to
charge the battery. In 1912, Cadillac introduced a variable speed voltage regulator as well
as an electrical starter to their cars. Soon after, vehicles lost their magneto ignition
systems in favor of a battery powered electronic ignition system. In 1939, sealed beam
headlamps were first put on vehicles. In the 40’s, the alternator replaced the generator on
vehicles. It increased the amount of current produced, which forever changed the industry
by changing the systems from Direct Current to Alternating Current. Thus, the modern
electrical system was born.
Auto repair shops have been fixing electrical systems since their inception, but never
before has there been a shop that specialized in retrofitting older cars with custom, up to
date electrical systems. We hope to be the shop that starts a new chapter in auto electrical
repair and restoration.
Up until now, most rewiring jobs are done at an automotive repair shop. For the most
part, these shops do no specialize in any particular area of auto service. At Hot Wire
Squad, electrical system is what we do, it’s what we excel at, and it’s what we love. We
provide a higher quality service due to the fact that we can concentrate on just car
electrical system.
2.2. Company Ownership
HWS will be established as a partnership between four people: Alexandra XXXXXXXX,
Alex XXXXXXXX, Joshua XXXXXXXX, and Jackie XXXXXXXX. Every partner has
an equal 25% ownership in the business.
All owners will also have an equal weight in management decisions.
2.3. Start-up Summary
Our start-up expenses will include:
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Research and Development:
o Costs of interviewing potential customers, suppliers, checking cost of
Yellow Pages (on print and online), etc.
Advertising and Marketing Promotion Expenses:
o Pre-launch campaign to help potential customers become aware of us.
Cost of Financing
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Remodeling/Decorating:
o Converting the living room into an office and customer consulting room.
o Landscaping of property
Employees:
o Employees will be hired before HWS is officially open for business.
o Help may be hired on for additional help, depending on our work load.
Insurance:
o Business property insurance, liability insurance, worker's comp insurance,
excess liability coverage, employment practices liability coverage, and
other insurance coverage.
Loan:
o We are anticipating a $200,000 loan for a $300,000 house on a half acre in
Solano County. The other $100,000 will be a down payment for the
property, made possible by our investors.
Licenses and Permits:
o Business License
o Partnership Filing
o Fire Prevention Information/Inspection (annual fee)
o Industrial Waste Water Discharge Permit
o Land Use Permit/Zoning Clearance
o Police Regulations/Public Safety Issues
o Business Property Statement
o Fictitious Business Name Filing
o Hazardous Materials/Waste Generate Program
o Weights and Measures (If we implement scales, a yearly pesticide
registrations is required)
o Authority to Construct/Permit to Operate - for installing equipment
o Air Tanks Permit
o Registration Form for Employers
o Seller’s Permit
o Employer Identification Number
Legal Fees:
o Includes the cost of drawing up the partner contracts.
Signage:
o Includes the cost of any signs in the store, as well as ordering and
installing a "Hot Wire Squad" sign for the front of the store. We will also
be investing in a billboard next to the highway.
Supplies - Office and Maintenance:
o Office, cleaning, and employee supplies.
Vehicle:
o It will cost $5,000 to paint and outfit an older truck one of the owners is
able to provide for company use. The truck will be used when a mobile
job is undertaken.
Website:
o
Cost of setup, first month's maintenance, and web hosting.
Other:
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o
Includes unexpected costs.
Start-up
Requirements
Start-up Expenses
Research and Development
Advertising and Marketing
Promotion
Expenses
Cost of Financing
Remodeling/Decorating
Employees
Insurance
Loan
Licenses and Permits
Legal
Signage
Supplies – Office and Maintenance
Tools/Equipment
Mobile Unit Vehicle
Website
Other
$1,000
$3,000
$5,000
$4,000
$5,000
$6,000
$200,000
$10,000
$3,500
$1,500
$3,800
$15,000
$5,000
$5,000
$5,000
Total Start-up Expenses
$272,800
Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets
$5,000
$20,000
$10,000
$30,000
$65,000
Total Requirements
$337,800
The table above outlines the monetary start-up requirements for Hot Wire Squad.
Key
E
Expenses
A
Assets
I
Investments
L
Loans
300
250
200
$ (in
Hundreds of
Thousands)
150
100
50
0
E
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A
I
L
3. Products and Services*
Hot Wire Squad will be the place to find your entire car wiring essentials, and a lot more.
Overview of our in store products:
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Accessories (stereos, DVD players, speakers, LED lighting, amps, etc.)
Battery Connections
Cable
Cable Terminals
Cable Sleeving
Connectors
Dashboard Gauges
Fasteners
Fuses
Lighting
Plugs and Sockets
Relays
Switches
Terminals
Tools
Test Equipment
Warning Lights
Wire Harnesses
Overview of online products:
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All that we carry in the store - and if we don't have it, we'll find it.
Online do-it-yourself guides for a huge selection of cars. These downloadable
PDFs will be updated monthly and available through subscription only.
Hot Wire Squad will also provide specialty wiring services on a case by case basis for
your vehicle. If you want to have your vehicle completely gutted and replace all of the
wiring with top of the line products, we can do that. If you're a car collector and want to
have your vehicle's wiring carefully and tastefully updated, we can do that. If you want
your rear left speaker replaced because it blew out, we can do that, too. We can even
come to you if it's more convenient for you. Nothing is too much for the experts at HWS.
*Note: We will also be charging $110 an hour for labor on all wiring jobs, with
additional charges being made on a case by case basis.
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4. Market Analysis Summary*
The prime target customer for Hot Wire Squad will be located between San Francisco and
Sacramento, with Fairfield, Vacaville, and Vallejo being the main focus of our marketing
plans.
Demographics
The demographics of Fairfield:
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Total population is 96,178;
o 61.8% White
o 23.7% African American
o 18.7% Hispanic or Latino
o 14.0% Asian
o 15.2% Other
Age breakdown:
o 25.2% 14 and under
o 7.6% 15-19
o 23.0% 20-34
o 28.4% 35-54
o 15.8% 55 and up
Income:
o Median household income is $51,151
o Average household income is $30,959
o Males’ median income is $35,544
o Per capita income for the city is $20,617
Education:
o 85% completed high school or higher
The demographics of Vacaville:
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Total population is 88,625 (Total can be greater than 100% because Hispanics
could be counted in other races);
o 76.8% White
o 11.1% Black or African American
o 17.88% Hispanic or Latino
o 6.29% Asian
o 11.8% Other
Age breakdown:
o 16.3% 14 and under
o 7.2% 15-19
o 22.7% 20-34
o 32.6% 35-54
o 15.2% 55 and up
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Income:
o Median household income is $57,667
o Average household income is $28,088
o Males’ median income is $43,527
o Per capita income for the city is $21,557
Education:
o 83.9% complete high school or higher
The demographics of Vallejo:
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Total population is 116,760 (Total can be greater than 100% because Hispanics
could be counted in other races):
o 40.4% White
o 25.8% African American
o 15.9% Hispanic or Latino
o 27.2% Asian
o 13.9% Other
Age breakdown:
o 23.1% 14 and under
o 20.9% 15-34
o 30.6% 35-54
o 19.3% 55 and up
Income:
o Median household income is $50,030
o Average household income is $39,592
o Males’ median income is $40,132
o Per capita income for the city is $20,415
Education:
o 81.7% completed high school or higher
There are a few types of people that are likely to buy wiring services or products from a
specialty store like us; a white, 20-40 year old male making more than around $50,000,
the median income in the United States; a teenager wanting to update his/her car; and the
older, well-off man who covets his cars – this type of customer will be our most valuable
because of their purchasing power. Fairfield, Vacaville, and Vallejo’s demographics
match our target customers very well.
*All demographic calculations are from the 2000 Census, and therefore not completely
accurate.
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4.1 Market Segmentation
The automotive industry is essentially targeted according to household income and sex.
People that earn more than or equal to the median household income in the US (which is
slightly higher than $50,000) have more disposable income to spend on luxury items like
cars and car improvements. Thus, our target customers become the people in that income
bracket, and higher. Also, most of our customers will be male. Men are more likely to
buy accessories and services for their car.
The information contained in our customer analysis summary is taken directly from the
2000 US Census and government directories. From this data, we can see that, with the
median household income being $51,151, $57,667, and $50,030 for Fairfield, Vacaville,
and Vallejo, respectively, that is the target market with the most potential for profit.
However, let us not ignore the fact that the average household income in Fairfield,
Vacaville, and Vallejo is $30,959, $28,088, and $39,592, respectively. This means that
there will be more potential customers under the ideal household income bracket. Many
business in the automotive industry overlook this segment because of its "low end"
buying habits, and a reluctance to compete with the major retail chains. We can take
advantage of this by pricing competitively and tailoring to people in this bracket. We will
introduce value-added and affordable business solutions to give people a reason to shop
with us.
Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers Growth
Consumers
Businesses
Total
4%
1%
3.8%
201,532
15,000
216,532
209,593
15,150
224,743
217,977
15,302
233,279
226,696
15,455
242,151
Market Analysis (Pie)
Consumers
Businesses
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235,764
15,610
251,374
4.2. Service Business Analysis
We are part of the automotive industry, which includes several kinds of businesses:
Big retail chain stores: these include retailers like Wal-Mart, Best Buy, etc. They
usually offer decent walk-in service, and often have massive amounts of square
footage in warehouse-like locations where people go to find aggressively priced
products. Their selection varies, but they usually focus on popular, readily
available products and services.
2. Automotive Service stores: these include stores like Pep Boys, AutoZone,
Kragen, etc. These stores are usually smaller than retail chain stores, but
specialize in auto parts. They offer a variety of products and services with good
walk-in service. This is where people go to find a good variety of products that
they may not find in retail stores.
3. Online stores: these include eBay.com, amazon.com, installer.com, and countless
others. Some of these, like amazon.com, sell a huge variety of products across all
industries. Others, like installer.com, focus on the automotive industry and offer a
huge array of products for autos. For the purely price-driven buyer, who buys
parts and expects no service, these are very good options.
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4.2.1. Competition and Buying Patterns
In the automotive industry, oftentimes service is overlooked in favor of affordability. We
need to effectively compete with this trend and show our customers that superior service
is not negotiable and essential to excellence.
Consumers recognize and understand the concept and value of exceptional service, and
are much more likely to pay for it when it is clearly stated that service is the number one
priority in a business.
Our research and experience has indicated that consumers weigh the benefits of price vs.
service, but are often given little choice in which to pick. They are too often offered poor
service at a great price, and they would absolutely be willing to pay a little more for
better service.
People in our target customer group choose between competing stores by comparing
price, value, longevity, availability and service. We will attract them by offering
competitive prices, great value on great products, and unparalleled customer service.
5. Web Plan Summary
Our web page will be a way to promote ourselves, connect with customers, and sell our
products and services. Our initial ideas for the page include, but are not limited to:
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Home page: will include a brief description of what we do and who we are. It will
have our mission statement and, ideally, it will have photos of completed projects
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potential customers can browse. Our weekly promotions will be included
somewhere on this page, as well.
Services page: will list our different services, but not prices. Price quotes vary
from project to project so we will inform the reader that they may obtain a quote
at our store at no charge to them. At some point we will implement an automatic
quote system that has a selection of cars and services so anyone can generate their
own quote for their project from home.
Products page: will have an overview of all of the products we carry in our store,
and likely more we can special order for them. Every product listed online will be
available for purchase online, unless otherwise specified.
DIY page: this page will have a database of downloadable instruction manuals for
many different makes and models of vehicles. (The database will be developed to
be increasingly comprehensive over the years by our research staff.) It will only
be available through subscription. Customers will have the option of signing up
for our newsletter in exchange for a free trial subscription period.
About page: this page will describe our history as a company, as well being a
place our employees can shine and where we, as a company, become accessible
and endearing to our customers. Employees will be able to list their education
and training. They can provide a brief biography about themselves or even show
off a job that they are especially proud of.
Promotional page: we will have a full page dedicated to our ongoing promotions.
Feedback page: We'll include a feedback page because we care about our
customers and want to know what they think about how we're doing. It will
include a short survey they can take in exchange for a coupon with questions like
"How can we make this site better?" and "Is there anything we don't offer that you
would like us to offer?"
Customer review page: will include past customer reviews and new customers
will have a chance to post a review of our services here.
5.1. Website Marketing Strategy
Ads for our services will be on sites like amazon.com and ebay.com next to any product
related to our business. This will help drive customers to our website who are more likely
to find purchase something from us.
In addition to this, we will create a newsletter to send out online to our contact list with
our monthly promotions and news from the store included. Customer may sign up for this
newsletter at our store or online.
5.2. Developmental Requirements
Our website will be designed by Logoworks, with A. XXXXXXXX’s help in deciding
the content. Logoworks’ team will be able to have the website up and running two
months after we agree on a design concept. We will have them build a 20 page website,
which will cost $4,249. Their team will handle the design from start to finish; our staff
will maintain it after it is created.
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Because we understand that a website is always growing and being updated, we will
periodically use outside help with maintenance/updating.
6. Strategy and Implementation Summary
1. Differentiate ourselves with our “unparalleled service.” We need to
emphasize our customer service in order to gain an edge in the market. We will do
this by training our employees to understand the dynamics of customer service in
order to maximize the connection between themselves and their clients in order to
more easily meet and exceed their client’s expectations.
2. Build an atmosphere people want to be in. A store that’s welcoming will
help build our returning customer base, as well as our referrals. Our business will
excel through word of mouth.
6.1. SWOT Analysis
The following SWOT analysis outlines our strengths, weaknesses, opportunities, and
threats. Analyzing this information helps us recognize what direction to take our
company.
Strengths
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Weaknesses
 Cost of start-up
 Brand recognition
 Ownership experience
Complete custom wiring
Electrical system capabilities
Mobile wiring unit
Customer Service
Opportunities
Threats
 Convenience
 Service
 Specialization
 Mobile wiring unit copycats
 Bulk discounts
 Economy
6.1.1. Strengths
Hot Wire Squad has a distinct advantage in the marketplace based on the size of the
market alone. Though there are numerous other automotive electronic sales and
installation shops in the area none of them at this time is offering complete automotive
wiring. We hope to target the high-end custom automotive enthusiast who expects the
highest quality work available, as well as the high school student on a budget who wants
an amazing sound system. What sets us apart from other shops is our ability to service
every aspect of a vehicle's electrical system, not just entertainment systems, as well as
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having a mobile service capability that will allow us to service customers whenever and
wherever it is convenient for them. These factors will allow for a potentially large profit
level but it will not come without hurdles.
Another strength we will surely take advantage of is our service. We will strive to be the
friendliest, most helpful salespeople in order to win over our customers and make them
long-time returning customers.
6.1.2. Weaknesses
We realize that an above average investment for this type of business will be
necessary to be able to provide the services we have described. Another pitfall for this
business will be our lack of reputation since we are a startup company with no previous
clientele. All partners in this venture will be first time business owners with no previous
ownership experience, which will mean having to get accustomed to all activities that are
associated with all aspects of running a business. There are numerous opportunities
available to be competitive in the market.
6.1.3. Opportunities
With the ability to do more than just install stereos, we open up our doors to customers
that typical auto electrical shops have never been able to accommodate or deal with. We
will be able to display our years of expertise and raise the bar for quality standards in the
industry. We hope to eventually offer help in the form of guides and manuals to the do-ityourself customer who wants to put their own personal touches on their vehicle without
paying for labor.
6.1.4. Threats
There are several outside threats that come into play with this type of business.
Competitors may start to offer similar services such as our mobile department that may
make the market more competitive. They may also lower prices by using inferior goods
and taking time saving shortcuts that compromise the quality of their work, or buying
in bulk, something we may not be able to do for a few years. The current economy could
also be a problem for business since people are buying less luxury items that are not
needed.
6.2. Competitive Edge
Hot Wire Squad's competitive edge is our customer service and our ability to come to our
customers. In this industry, consumers are often given poor customer service along with a
competitive price. In our company, we will strive for customer service that will make our
customers want to tell their friends and family about us, while still giving them that
competitive price. In addition to that, we're the only ones around that are willing and able
to go to our customers to work on their vehicles.
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6.3. Marketing Strategy
Our marketing strategy will be to portray ourselves as a trustworthy, dependable
business, run by the same kind of people who'll shop with us; car lovers.
We are in talks with a local tire company to form an equally beneficial relationship. They
will promote us as the place to go for any wiring needs their customers may have, while
we'll do the same for any tire needs our customers may have. This will allow us to
permeate areas of the market we may have not reached before.
Another tool we'll utilize frequently is Craigslist. Craigslist is a fast, efficient, and easy
way to reach thousands of people with minimal effort and cost. We will advertise our
presence there and draw customers who may have not thought of us, or even known of us
before. We may even offer a discount to customers that mentioned Craigslist as their
referral.
Another invaluable tool to marketing any small business is word of mouth. If our
customers are happy, chances are they'll refer their friends to us. This is something that
will never change, and something we'll strive for every day.
6.4. Sales Strategy
Customer service being HWS’ focus, we make sure that all of our employees are
sufficiently trained to give our customers the best possible service. This is achieved by
putting new associates through customer relation training and regularly assessing their
knowledge and practices. This goes hand in hand with up-sell training to make them
helpful and effective salespeople.
6.4.1. Sales Forecast
Sales Forecast
Year 1
Year 2
Year 3
Custom Wiring
In Store Products
$263,796
$228,285
$293,054
$266,333
$315,000
$300,000
Mobile Wiring Unit
Products Sold Online
Online DIY
Subscriptions
Total Sales
$83,563
$146,462
$8,700
$97,148
$149,679
$11,970
$111,000
$152,000
$15,000
$730,805
$818,184
$893,000
Year 1
Year 2
Year 3
$40,356
$44,541
$50,000
Sales
Direct Cost of Sales
Custom Wiring Materials
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Product Cost
Mobile Wiring Unit
Materials
Online Product Cost
PDF File Research and
Implementation
Unforeseen Costs
Subtotal Direct Cost of
Sales
$88,245
$16,031
$96,159
$21,053
$104,000
$24,000
#31,960
$2,159
$34,395
$2,064
$37,000
$2,200
$1711
$180,461
$2,172
$200,384
$2,500
$219,700
Sales Monthly
$70,000
$60,000
$50,000
Custom Wiring
$40,000
In Store Products
$30,000
Mobile Wiring Unit
$20,000
Products Sold Online
Online DIY Subscriptions
$10,000
$0
Sales by Year
$900,000
$800,000
$700,000
Custom Wiring
$600,000
In Store Products
$500,000
Mobile Wiring Unit
$400,000
Products Sold Online
$300,000
Online DIY Subscriptions
$200,000
$100,000
$0
Year 1
Year 2
17
Year 3
6.5. Milestones
Milestones
Milestone
First Draft of Business
Plan
Review Plan Numbers
Start Date
6/01
End Date
6/30
Budget
0
6/15
6/30
0
Meet with Lawyer
6/25
6/25
$1,000
Advertising
7/1
7/15
$10,000
Solidify Relationship
w/ Other Business
(Referrals)
Buy Equipment/Tools
7/1
7/15
$100
7/07
7/30
$15,000
Get Funding
7/01
8/30
0
Good Guys Car Show
Business Plan Review
Officially Buy House
7/25
7/30
7/01
7/27
8/15
12/1
$600
0
$250,000
Financial Plan Review
Sales Analysis
8/15
9/01
8/30
10/01
0
0
Customer Service
Training
Website Review
10/1
11/01
$2,000
10/30
11/15
0
Inventory Analysis
10/01
11/15
0
Totals
$278,700
7. Management Summary
18
Manager
All
Dept.
All
A.
All
XXXXXXX
X
J.
All
XXXXXXX
X
A.
Marketing
XXXXXXX
X
A.
Marketing
XXXXXXX
X
J.
Floor
XXXXXXX
X
A.
Financial
XXXXXXX
X
All Marketing/Sales
All
All
J.
All
XXXXXXX
X
All
All
A.
Sales
XXXXXXX
X
All
Customer
Service
A.
Web
XXXXXXX
X
J.
Inventory
XXXXXXX
X
The following will outline our associates’ experience, qualifications, and future job
descriptions.
7.1. Initial Employee Résumés
Joshua K. XXXXXXXX
XXXXXXXXx Dr., Vacaville, Ca 95687
(707) XXXXXX
JXXXXXXXX@HotWireSquad.net
OBJECTIVE
I would like to start a custom auto electrical business.
QUALIFICATIONS
I am a highly motivated worker who is always eager to learn new things. I have
always enjoyed taking on mechanical tasks including working on cars, and
motorcycles. Figuring out how things work has always come easy to me. I work
very well in a team environment and never hesitate to take a leadership role, but
can work just as well on individual assignments. I have used my mechanical
aptitude to learn how to run equipment including lathes, mills, and punch presses
in the production of conveyor components. I am very good at following
instructions to get tasks completed in a timely manner with the desired results.
Quality work is what I strive for every time and working safely is always my top
priority. Most recently it has been my job to perform preventive maintenance and
safety inspections on tractor-trailers, which I had no previous experience with. I
have also been attending college part time. I now have 58 units completed, which
include Trigonometry and Calculus.
EDUCATION
1996-2000 High School Diploma, Armijo High School
2000-present 58 units completed, Solano Community College
EMPLOYMENT
June 2008 - present: Warehouse Manager GCR Tire Center
Control inventory movement in a large commercial tire warehouse and organize
and maintain work flow of over 3000 commercial tires. Duties include working
19
with a team of Managers to maximize productivity of Service Techs, as well as
minimizing inventory loss.
April 2007 - June 2008: Service/General Manager, GCR Tire Center
Supervised a crew of workers and oversaw operations of a commercial tire
retailer. Dispatched service techs to perform emergency breakdown repairs
pertaining to tires and related parts. Ensured work was performed safely and
according to the standards of the industry.
Sept. 2004 -April 2007: Serviceman, Hadley Auto Transport
At Hadley Auto Transport, I performed preventive maintenance on tractortrailers. This included oil and filter changes, brake adjustments, equipment
inspections, and tire changes, as well as diagnosing and repairing electrical
failures and bodywork.
March 1996-Sept. 2004: Custom Car builder, Jay's Custom Rods
At Jay’s Custom Rods, I worked as part of a build team restoring classic cars. In
our shop there was an emphasis on electrical installation and many other aspects
of assembly of custom classic cars, including some body work and custom metal
fabrication.
________________________________________________________________________
Alex M. XXXXXXXX
XXXXXXX St. Fairfield, Ca 94533  (707) 555-4321  AXXXXXXXX@HotWireSquad.net
OBJECTIVE
Open a successful business in the automotive field, with a focus in custom wire
jobs and supplies.
EDUCATION
UC Berkeley, Bachelor of Business Administration 08-07 to 6-09
Solano Community College, Associate of Drafting 08-05 to 6-07
EXPERIENCE
20
Administrative Service Manager  12-07 - Current
Oversees:






Secretarial and reception services
Payroll
Conference planning and travel
Information and data processing
Mail
Materials Scheduling and distribution
Administrative Assistant  5-05 - 12-07
Responsible for coordinating office communications
SKILLS



Effectively communicate needs and duties to coworkers
High degree of expertise communicating within the company
Excellent problem solving skills
________________________________________________________________
Alex E XXXXXXXX
Engine ST. Fairfield, Ca 94533 707-555-2348 XXXXXXXr@HotWireSquad.net
OBJECTIVE
Open a custom car wiring company.
EDUCATION
Columbus Technical College 6-31-92




Associate of Applied Science (A.A.S.)
Auto Electrical Technician Certified
Best Buy Installer Certified
MECP Certified
EXPERIENCE
Car Stereo Installer Manager  9-25-02 – Current
21






Supervise direct work flow
Keep track of inventory used for projects
Keep track of inventory in shop. Maintain a min/max for items used for
installation
Correctly install car audio and accessories in customers’ vehicles
Install vehicle security systems and remote starters
Able to adeptly explain features, benefits, and technical aspects of the
product line
Automotive Service Technician 12-1-92 – 5-23-02






Wrote vehicle damage repair estimates
Repaired broken and/or worn mechanical components
Maintained repair and service records
Installed equipment, components, and systems
Tested vehicles both before and after repairs
Repaired electrical wiring, circuits, and fixtures.


Able to take initiative to become an expert at a job
Team-oriented and work well in a collaborative environment to achieve
team goals
Committed to meeting high quality standards
Possess basic safety skills and knowledge.
SKILLS


________________________________________________________________________
Jacqueline XXXXXX
XXXXXXX Blvd, Fairfield CA 94534  (707) XXXXX  JXXXXXXXX@HotWireSquad.net
OBJECTIVE
 Open a custom car wire company, we will install and fix stereos and other

similar devices the customer would like in their car.
QUALIFICATIONS
 Hard working, reliable and committed to any task
22
 Very personable, outgoing and able to relate to people from diverse
cultures
 Good experience working in a team environment
RELEVANT SKILLS
 Customer Service
 Describe and suggest products that will fit the customers needs
 Successfully set and achieve personal goals
 Taking time to answer a full question or find somebody that can
EXPERIENCE
Auto Zone Manager  7/2007-10/2007
 Responsible for keeping task on employees
 Able to finish multiple tasks successfully
 Shipping orders in and out for customers
Sales Associate, Best Buy Geek Squad  09/2008-12/2008
 Assisted customers with the right computer products and maintenance
 Maintained and restocked inventory
 Helped with the best suggestions to fit geek squads team of professionals
EDUCATION/TRAINING
San Mateo Technical College  1-31-2007
 Associate of Applied Science (A.A.S)
 Best Buy Installer Certificated
_____________________________________________________________
7.2. Positions
At start-up, Hot Wire Squad will have four filled positions, filled by the owners.
1. Online computer sales, web construction and maintenance, payroll, and accounts
payable.

This position would be taken by A. XXXXXXXX. This associate would be
responsible for site maintenance and updating the web site with promotional
23
offers, adding new stock items, updating prices, and receiving new orders for
billing. This associate will also be taking care of payroll for employees. She will
be receiving payment for jobs, making payments for daily operating expenses,
and paying incoming bills. Alex is suited for this because of her previous work
experience and schooling. She has worked on a payroll staff before and has had to
deal with billing and processing payments in the past.
2. Research and development, customer service, marketing, and clientele research.

This position would be held by A. XXXXXXXX. This associate would be
responsible for finding new stock items to put on the web page. He would
also help A XXXXXXXX put said items on the web page, helping with lay out
and pricing. He will also be responsible for going to trade shows like SEMA and
the consumer electronics show to research products we may want to carry. This
position would also be responsible for clientele research, and finding new
customers. He will be advertising at car shows by setting up a booth and showing
off what our company can do for people. Alex is appropriate for this position
because of his previous experience in web design in college.
Site management would fall under two positions:
3. Ordering and stocking floor supplies, receiving and shipping.

This position will be held by J. XXXXXXXX. This associate will be responsible
for maintaining stock levels for the shop and online ordering. She will be
receiving special orders for customers and shop usage, and shipping orders from
the web site. Jackie will do well in this position because of her experience at Best
Buy, stocking and receiving for them in the past. Before she left to pursue other
opportunities, she was being trained to be the stock manager.
4. Service writer, customer service, floor supervisor.

This position will be held by J XXXXXXXX. This associate will be responsible
for giving estimates for jobs on clients' cars. He will also be responsible for
coordinating the work flow in the shop. He will clear orders that have been
completed and dealing with customer service. At start-up, he will be actively
looking for someone who can operate our mobile wiring unit. Joshua has been
working in the automotive industry for the past twelve years, both as an
underwriter and manager of a tire store. He will be ideally suited for this position
based on his vast knowledge of the industry.
All associates will have the knowledge and ability to perform every position. This will
allow us to be flexible with the unavoidable issues like sicknesses, vacations, etc
7.3. Personnel Plan
24
Although no start-up is ensured of success, Hot Wire Squad is committed to doing
everything possible to make our company successful. In order for this to happen, we will,
at start-up, sacrifice the amount of coverage we have to reduce costs. This means that the
four employees we have will need to work as a team that will make this company excel.
Our goal as a company is to employ people committed to excellence, who love to be
involved in a team atmosphere, and who have unparalleled customer service skills. These
are the people that will make this company a success.
Personnel Plan
Year 1
Year 2
Year 3
Web Manager
$19,200
$21,600
$23,000
Research and Development
Manager
Stock Manager
Production Manager
$19,200
$21,600
$23,000
$19,200
$19,200
$21,600
$21,600
$23,000
$23,000
Total People
4
4
5
Total Payroll
$76,800
$86,400
$92,000
8. Financial Plan
8.1. Start-up Funding
Owners
The four owners will invest a total of $80,000 in cash, benefits, and labor to the
start-up.
Investors
Hot Wire Squad is in the process of negotiating with potential investors for the
seed cash needed to start the business. It is expected that $80,000 will be raised to
start the business. It is expected that no more than 15% interest will be given to
each investor.
Bank Financing
Hot Wire Squad is submitting business plans and other requested documents to
financial institutions in pursuit of the additional $200,000 needed to finance the
rest of the company and provide operating cash for the business. It is expected
that the loan will be a part of the SBA 7(a) program. It is assumed that the terms
of the loan will require repayment in 10 years, at a rate of 6%.
Start-up Funding
25
Start-up Expenses to Fund
$272,800
Start-up Assets to Fund
$65,000
Total Funding Required
$337,800
Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
$60,000
$5,000
Additional Cash Raised
$22,200
Cash Balance on Starting Date
$27,200
Total Assets
$87,200
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities
$0
$200,000
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free)
Total Liabilities
$200,000
Capital
Planned Investment
Partners
Investor
$80,000
$40,000
Investor
Additional Investment Requirement
Total Planned Investment
$40,000
$0
$160,000
Loss at Start-up (Start-up Expenses)
Total Capital
($272,800)
($112,800)
Total Capital and Liabilities
$87,200
Total Funding
$360,000
8.2. Break Even Analysis
26
Below is our monthly break-even analysis, which is how much money we need to take in
to cover all of our expense.
Break-even analysis
Monthly Revenue Break-even
$20,015
Assumptions:
Average Percent Variable Cost
25%
Estimated Monthly Fixed Cost
$15,072
$10,000
$5,000
$0
($5,000)
($10,000)
($15,000)
($20,000)
$0
$6,000
$12,000
$18,000
$24,000
Monthly break-even point
Break-even point = w here line intersects w ith 0
27
$30,000
8.3. Profit and Loss
Profit and Loss
Year 1
Year 2
Sales
$730,805
$818,184
Direct Costs of Goods
$180,461
$200,384
Other Costs of Goods
$3,210
$3,335
Costs of Goods Sold
Gross Margin
Gross Margin %
$183,671
$547,134
74.87%
$203,719
$614,465
75.10%
Payroll
Marketing/Promotion
$76,800
$4,980
$86,400
$5,202
Depreciation
Rent
Utilities
Insurance
Payroll Tax
Other
$942
$17,280
$12,454
$23,616
$33,600
$5,196
$1,264
$17,568
$14,230
$24,768
$44,280
$5,850
Total Operating
Expenses
$174,868
$199,562
Expenses
28
Profit Before Interest
and Taxes
EBITDA
Interest Expense
Taxes Incurred
$372,266
$414,903
$373,208
$12,260
$108,002
$416,167
$12,870
$120,610
Net Profit
Net Profit/Sales
$252,004
34.40%
$281,423
34.40%
290000
280000
270000
260000
Yearly Profit
250000
240000
230000
Year 1
Year 2
Cash Flow
Year 1
Year 2
$548,104
$150,237
$613,638
$200,840
$698,341
$814,477
$61,205
$12,000
$68,523
$14,400
$783,546
$911,800
Year 1
Year 2
Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from
Operations
Additional Cash
Received
Sales Tax
New Current
Borrowing
Subtotal Cash
Received
Expenditures
Expenditures from
Operations
29
8.4. Projected
Cash Spending
Bill Payments
Subtotal Spend on
Operations
$76,800
$354,313
$431,113
$86,400
$445,957
$532,357
Additional Cash Spent
Sales Tax
Long-term Liabilities
Principal Repayment
Subtotal Cash Spent
$61,205
$12,000
$68,523
$12,000
$479,030
$582,759
Net Cash Flow
Cash Balance
$304,516
$331,716
$329,041
$660,757
30
Cash Flow
Cash
$350,000
$300,000
$250,000
$200,000
Net Cash Flow
$150,000
Cash Balance
$100,000
$50,000
$0
31
8.5. Projected Balance Sheet
Balance Sheet
Year 1
Year 2
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
$331,716
$32,464
$7,947
$10,000
$382,126
$660,757
$36,170
$8,826
$10,000
$715,753
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
$30,000
$942
$29,058
$433,385
$30,000
$2,206
$27,794
$743,547
Liabilities and Capital
Year 1
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Year 2
$34,692
$12,000
$37,288
$83,980
$38,711
$26,400
$81,808
$146,919
Long-term Liabilities
Total Liabilities
$188,000
$271,980
$176,000
$322,919
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and
Capital
$160,000
($272,800
$252,004
$139,204
$411,185
$160,000
($20,796)
$281,423
$420,627
$743,547
$139,204
$420,627
Net Worth
32
Appendix
Sales Forecast
Sales Forecast
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
Custom Wiring
20800
1800
21008
18180
21218
18362
21480
18545
21645
18731
21861
18918
22080
19107
22300
19298
22528
19491
22749
19686
22976
19883
23206
20082
Mobile Wiring Unit
Products Sold Online
Online DIY Subscriptions
Total Sales
5888
10320
613
55621
6065
10630
631
56514
6247
10948
650
57425
6434
11277
670
58356
6627
11615
690
59308
6826
11964
711
60279
7031
12323
732
61272
7241
12692
754
62287
7459
13073
777
63323
7688
13465
800
64383
7913
13869
824
65465
8150
14285
849
66572
Direct Cost of Sales
Custom Wiring Materials
Product Cost
Mobile Wiring Unit Materials
Online Product Cost
PDF File Research and
Implementation
3182
6958
1264
2520
86
3214
7028
1277
2545
176
3246
7098
1289
2571
235
3278
7169
1305
2596
202
3311
7241
1315
2622
242
3344
7313
1328
2649
187
3378
7386
1342
2675
113
3412
7460
1355
2702
129
3446
7535
1369
2729
255
3480
7610
1382
2756
169
3515
7686
1396
2784
139
3550
7763
1410
2811
216
Unforeseen Costs
Subtotal
143
14163
143
14381
143
14581
143
14690
143
14874
143
14964
143
15036
143
15200
143
15475
143
15540
143
15663
143
15898
1
Appendix
Personnel
Personnel Plan
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Web Manager
Research and Development
Manager
Stock Manager
Production Manager
Total People
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
1600
4
Total Payroll
6400
6400
6400
6400
6400
6400
6400
6400
6400
6400
6400
6400
2
Appendix
Profit and Loss
Profit and Loss
Month 1
Month 2
Month 3
Month
4
Month
5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Sales
Direct Costs of Goods
Other Costs of Goods
55621
14163
268
55514
14381
268
57425
14581
268
58356
14690
268
59308
14874
268
60279
14964
268
61272
15036
268
62287
15200
268
63323
15475
268
64383
15540
268
65466
15663
268
66572
15893
268
Cost of Goods Sold
14431
14649
14849
14958
15141
15282
15308
15468
18748
15808
15930
16161
Gross Margin
Gross Margin %
41191
74.06
41855
74.08
42576
74.14
43399
74.37
44167
74.47
45048
74.73
45969
75.02
46819
75.17
47581
75.14
48575
75.45
49535
75.67
50411
75.72
Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Utilities
Insurance
Payroll Tax
Other
6400
415
74
1440
992
1968
2800
433
6400
415
75
1440
1002
1968
2800
433
6400
415
76
1440
1012
1968
2800
433
6400
415
77
1440
1022
1968
2800
433
6400
415
77
1440
1035
1968
2800
433
6400
415
78
1440
1042
1968
2800
433
6400
415
79
1440
1053
1968
2800
433
6400
415
80
1440
1063
1968
2800
433
6400
415
80
1440
1075
1968
2800
433
6400
415
81
1440
1085
1968
2800
433
6400
415
82
1440
1096
1968
2800
433
6400
415
83
1440
1096
1968
2800
433
Total Operating Expenses
14512
14523
14533
14544
14555
14566
14577
14588
14600
14611
14623
14634
Profit Before Interest and
Taxes
EBITDA
Interest Expense
Taxes Incurred
26678
27342
28043
28855
29611
30482
31391
32230
32981
33964
34912
35777
26753
1003
7702
27417
1007
7901
28119
1010
8110
28931
1013
8352
29689
1017
8578
30560
1020
8836
31470
1023
9110
32310
1027
9361
33061
1030
9585
34045
1033
9879
34994
1037
10163
35860
1040
10421
Net Profit
Net Profit/Sales
17972
32.31
18435
32.62
18923
62.95
19489
33.40
20016
33.75
20623
34.21
21258
34.69
21842
35.07
22366
35.32
23051
35.80
23713
36.22
24316
36.53
3