In order to be presented for funding or used as an operational roadmap, the tractor dealership business plan should show several things. First of all, it needs to demonstrate a clear use of funds so that financial backers know how their money will be allocated across the business. Secondly, it should prove that the market opportunity is sound, using industry and competitive data to demonstrate that you have a good chance of (continued) success. Third, the plan should make it clear that you know how to market your product and have a solid implementation plan in place that will make it possible for your dealership to move enough tractors each season to hit break-even on schedule, achieve overall revenue benchmarks, and, ultimately, give an equity investor a handsome payback or enable the bank to rest easy knowing that they'll get all their money back on time. Other topics to cover include the following:
• How many tractors do you estimate you can you sell per year?
• What is your markup on a given tractor?
• Which types of tractors do you supply?
• How many sales and administrative staff people do you need?
• How much money are you seeking?
The business plan should also include a break-even analysis that shows investors and bankers when your company can be profitable following the infusion of money. And remember that a plan for investors needs to show a five-year financial model, whereas a business plan geared towards a bank only needs three. If your dealership is already in business, talk about your successes and stumblings to date and include a past performance snapshot that shows profit and loss statements and balance sheets for each of the past three years. Want help integrating this into the model or need other assistance? MasterPlans has been writing business plans since 2002 and we have working on tractor sales documents before. Call us today to learn more about our services. 877-453-2011, toll-free.
