Entrapreunership Project
Entrapreunership Project
Entrapreunership Project
In Pakistan and even all over the world, the car customization and modification line of
business accommodates highly skilled auto mechanics who have what it takes to give their
customers far beyond what they are expecting; it is indeed a highly creative industry.
Car customization and modification garages engage in customizing and modifying cars by
altering some parts or the whole car to improve its performance, often they alter or replace
the engine and transmission and also they work on the body and sound system. There are
approximately 1,600 auto parts vendors in Pakistan, out of which 400 vendors belong to a
Tier-1 category and are suppliers to the OEM market. Pakistan’s domestic auto parts and
accessories industry had an approximate size of $2.9 billion (Rs460 billion) in FY20.
Industry Structure
The modern automotive industry is massive, complex, and in a continual state of flux. The
successful manufacturing of an automobile today—from drawing board to salesroom floor—
depends equally upon the expertise of many different professions. There are numerous
employment opportunities for those who really want to work in the automotive industry,
whether it is in a business, technical, scientific, creative, financial, sales, mechanical, or
assembly position. The largest automotive employers in Pakistan are the Big Three: Toyota,
Honda, and Suzuki.
Nature of Participants
As of now the business plan that we have decided to work on is one of a kind as there are no
such participants that operate the way we have proposed to do so. There are participants in
the industry that provide Exotic Car Modifications but they operate differently compared to
what we have proposed to operate.
Our key partners shall include the overseas vendors; partners, already established workshops
that will provide us the disassembled car parts. Which then will be exported into Pakistan and
then assembled again in Pakistan at Top lads garage. This procedure will help us cut off the
custom duty tax and then sold to the car enthusiasts.
Key Success Factors
The key success factors in this specific industry are as followed
Industry Trends
Consumers with more disposable income and purchasing power are more likely to modify
their vehicles. The trend of car modification is growing in popularity in order to give cars a
unique appearance. These are the main factors that are expected to drive the global Car
Modification Market forward in the coming years.
As per PakWheels statistics there are currently 250 + original Mercedes AMGs in Islamabad.
Where one AMG is priced at 25,000,000 including a 300 % tax; hence buying power exists.
Now what we aim is to reduce this tax cost by 33 %.
Currently there are 4 such workshops in Pakistan, namely :
1. Top performance Garage
2. HPR Garage
3. Max Power Garage
4. AP Performance Garage
However, we differ from these workshops through the technologies and suppliers involved.
Long Term Prospects
One of our major goals of starting TOP LADS GARAGE is to build a business that will
survive off its own cash flow without the need for injecting finance from external sources
once the business is officially running. We know that one of the ways of gaining approval
and winning customers over is to offer nothing short of excellent and unique car
customization and modification services at pocket-friendly rates.
Our long term goal involves providing a walk in Auto store in 3 main cities of Pakistan;
Islamabad, Karachi and Lahore, increasing the number of suppliers providing goods at whole
sale rates. Where we shall provide modification and maintenance related all the services
under one roof, which does not exist in Pakistan until now.
Company Description
Company History
Together, we are forming a business called "Top Lads Garage" whose objective is to assist
clients in providing luxuries not available effortlessly. Our goal is to influence customers we
have the pleasure of working with and leave a lasting impression on their thoughts and
imagination. One of our works should inspire and uplift everyone who sees it. Our core
values continually line up with our long-term goals. Our mission is to constantly go above
and beyond for our clients by giving them specialized customer service. We work to establish
solid client relationships based on integrity, dedication, and trust.
Mission Statement
Our Vision is to become the number one car customization and modification company with
an active presence in major cities in Pakistan.
Our mission as a car customization and modification company is to develop a highly
successful, profitable, all round car customization and modification business that provides
quality services in our community and to become the standard for an ideal car customization
and modification business not only in the city of Islamabad but throughout Pakistan.
Products and Services
TOP LADS GARAGE is well-equipped car customization and Modification Company that
would offers a wide range of services that revolves around interior and exterior of cars. We
intend giving our customers every reason to always hire our services, which is why we have
customized our services. Our products and services include the following
Scheduled maintenance.
PPF sheet
Face up Lift
Comprehensive engine repair and imported engine replacement
Imported Kits
Current Status
At the moment this is our idea with a detailed business plan that is in its initial stages to shape
into a company or business.
Legally we have not registered ourselves as a business yet as we are still in the initial stages
of developing our business.
Ownership in this business is equally divided amongst members of the group involved in
presenting this idea.
Market Analysis
Market Analysis
We will be conducting our market segmentation as per demographic and behavioral habits.
Initially, our main focus will be amongst the higher- middle class to the elites. Behavioral
patterns such as interests in cars is something that will outstand for use while conducting
research.
We shall narrow it down to our target market by looking for car enthusiasts aiming to buy
AMG cars at a cheaper rate.
Buyer Behavior
In the recent past, many cars were modified by adding extra carburetors, high compression
heads, and dual exhaust. Engine swaps were often done, the object of which was to put the
most powerful engine in the lightest possible frame and body combination.
There are presently more than 250 original Mercedes AMGs in Islamabad, according to
figures from Pak Wheels. When one AMG costs $25,000,000 plus a 300% tax, there is
purchasing power. Now, our goal is to cut this tax expense by 33%.
Car customization and modification businesses responds to the increase in household
spending and the increase in the volume of cars in a particular area or city.
Competitor Analysis:
Our competitors, as mentioned below, use the spare parts through counterfeit and secondary
markets. Where, as we will be using first hand spare parts in order to modify the client’s cars
due to our alliance with the foreign partners. We aim to reduce costs by using advanced
technologies that are not available currently in Pakistan.
Competitors in Pakistan
Project Cost
DESCRIPTION DETAILS
TOTAL EQUITY ( 70 %) 700,000
LOAN ( 30 %) 300,000
LOAN TENURE => 5 YEARS
Project Cost
CAPITAL INVESTMENT
Furniture and Fixtures 300000
Office Equipment’s 550000
Electricity & Internet 30000
Operating Expense 20000
Total Capital Cost 900000
Working Capital
Office Rent 50000
Marketing & adds 150000
Website and social media 50000
Mechanical spare parts 100000
Total Working Capital 350000
Marketing Plan
The company has a modest program of marketing its services that include the following:
1. Billboards.
2. Advertising mailers.
3. Discounts.
4. Social Media Influencers
Each of these marketing approaches has the advantage of creating service awareness. The
company’s long-term marketing goals are to use TV ads and organizing auto shows similar to
those conducted by Pakwheels.
The company is also investigating the possibility of having a grand opening program that
would feature discounts, food, a local radio disc jockey, and other promotional ideas.
Product:
Top lad garage provides a wide range of auto modification services. These include:
Scheduled maintenance.
PPF sheet
Face up Lift
Comprehensive engine repair and imported engine replacement
Imported Kits
Each job or project will be on a reservation basis, although we will accept a small percentage
of drive in repair work.
Price
We exist in a very non-competitive environment however, a monopoly exists amongst the very few
companies that provide auto modification services. In other words, our firm will aim to lower the
market price of services (still marginal revenue being significantly more than the price charged) with
the passage of time depending on number of modifications we do; we shall dictate the prices in whole
market. What all of this means for Top lads garage is that as long as marginal costs do not exceed
revenues, the method to maximize short-run profits is to provide services at maximum capacity with
price lower than the market average.
Sales Process
Prospecting
Initially, Our marketing team shall identify the potential customers after various marketing practices
Make contact
We will make the first contact by sending them advertising mails.
Overcome objections
We shall provide explanations to our leads regarding any concerns they might have. Such as
providing a thorough details regarding the process and anything else that might help cater their needs.
Sales Tactics
Involvement in Car
Following up on
Discounts/Coupons enthusiasts
Referrals
community
Brand awerness
Special Promotions
through Influencers
Operations Plan
General Approach to Operations
Now initially after conducting the marketing process we close the deal with our customer
where they want their car to be modified. We place an order with our foreign partner of an
already upgraded model of the car. Here our foreign partners will disassemble the car and
export the parts to our garage. Now here we will take the parts and assemble to the clients car
and hence the car will be upgraded to a higher end of the AMG model. In this way, the client
will get an upgraded version of its car in a relatively low cost than what they would have to
pay for if they had to import the same AMG car.
Business Location
Our workshop shall be located at a prime location in Islamabad; hopefully in D-12. Garage
would include an office for meeting with the clients following up with a workshop where
mechanics would work on the cars.
Financial Projections
Income statement (Expected)
Sales 77310000
Salaries expense 45430000
Electricity expense 100000
Rent expense 650000
Interest expense 121875
Administration expense 50000
Advertisement expense 700000
Profit 23,058,125
Balance Sheet
ASSETS
Current Assets
Cash ----- ---- -----
Account Receivable ----- ---- -----
Prepaid rent expense ----- ---- -----
Fixed Assets ----- ---- -----
Furniture and Fixtures ----- ---- -----
Total Assets ----- ---- -----
Liabilities and Share Holders Equity
Current liabilities
Accounts payable ----- ---- -----
Total Current Liabilities ----- ---- -----
Other liabilities
Long term debt (Project Loan) ----- ---- -----
Long term debt (Working Capital Loan) ----- ---- -----
Total Long Term Liabilities ----- ---- -----
Shareholders' equity ----- ---- -----
Paid-up capital ----- ---- -----
Retained earnings ----- ---- -----
Total Equity ----- ---- -----
TOTAL CAPITAL AND LIABILITIES ----- ---- -----
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