The auto dealership business plan can take many forms depending on the financing you’re seeking and the sort of cars you offer, but a standard business plan format will apply in almost all cases. You will want to start by describing the site you operate from – the size of the lot, its signage, its proximity to major roads and freeways, visibility, etc. From there, get into details about the brands you carry (and what contracts you have with those manufacturers), whether you specialize in new cars or pre-owned etc., and whether you offer consumer financing, require cash purchases, and so forth. Once the details of the service suite and site and locked down, your business plan should give as much information as you have access to regarding your target market:
• What sort of consumer is the most likely car buyer for you?
• How many families fit your household income bracket?
• What will be the average number of vehicles owned by a buyer?
• Do you know what other commonalities patrons of your auto dealership will exhibit?
• Can you define the local market need and how you fill it?
The auto dealership business plan will of course need a pro forma set of financials so that a bank loan officer or angel investor knows what they’re getting into. You need to make a table of assumptions including your ongoing operating expenses, the number of cars you can sell per week and the profit margin on each type, and the overall ROI you can offer to a financial partner. Show the start-up summary with a category-by-category breakdown of your anticipated expenses and highlight the planned break-even point inside your model. MasterPlans has worked on auto dealership business plans since 2002 and has many funded projects to its credit in this industry. Call today for a free consultation about your dealership project and a complementary price quote. Toll-free: 877-453-2011.
