business plan for truspeed performancetruspeed-performance.com/documents/business plan/bu… ·...

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Business Plan for TruSpeed Performance

OWNER: John R Beasley

TruSpeed Performance LLC8523 Mesa DrSandy, UT 84093801-243-7812 [email protected]

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I. Table of Contents

I. Table of Contents....................................................................................2

II. Executive Summary................................................................................3

III. General Company Description................................................................4

IV. Products and Services.............................................................................5

V. Marketing Plan........................................................................................6

VI. Operational Plan...................................................................................21

VII. Management and Organization.............................................................25

VIII. Personal Financial Statement...............................................................26

IX. Startup Expenses and Capitalization....................................................41

X. Financial Plan.......................................................................................43

XI. Appendices............................................................................................44

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II. Executive Summary

TruSpeed Performance is an Auto Repair and Performance Company built on the basis of making our customers cars look good, run well and perform at their maximum performance without breaking the bank. We are dedicated to “wowing” our customers and leaving a lasting impression of our work. We target automotive enthusiasts of any age but ages 16-40 as our primary market. We offer a wide range of products that are produced in the US, Asia, Australia and Europe. We also plan to produce custom products for rare tuners that don’t have a huge aftermarket support but lots of enthusiasts.

We feel that now is the opportune time to get into the performance and automotive industry. Technology is booming for vehicles and people are looking to customize their vehicles more and more. In the pages that follow we have included our research and the research shows that now is a great time for the automotive aftermarket.

The company is owned and operated by automotive enthusiasts, not suits with a big pocketbook and only corporate and business experience. We know our industry and we know what our customers like. We feel that by having this knowledge we are able to cater to our customers and give them the best experience possible. The industry is going away from a garage where people just drop off their car and trust their mechanic to make the best choices. People want to feel involved, informed and like their vehicles are customized to fit them and their personality.

We feel that in order to have the most up to date tools and best looking shop that the budget we have for $110,000 is the best option. We feel that the things we have chosen to purchase for the business will help our customers to feel in control, and informed. In the pages that follow we will display just where all that money will go and how it will effectively allow us to serve our customers and be productive. We have also planned for a marketing strategy as well as a prime location that we feel will help to draw a huge increase in business. We also feel that by being able to accommodate our customers better with more services we will have less to turn them away for and more reason for us to be their one stop shop. By these methods we feel we will be able to not only pay back the money we are lent in a timely manner, but also be profitable.

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III. General Company Description

TruSpeed Performance was started to change the face of the aftermarket and automotive repair industry. We wanted to give our customers the feeling of security and trust when leaving their vehicles with us. We give their cars the same care that we give our own vehicles.

TruSpeed Performance is built to be an honest, no hassle, low cost alternative for our customers' performance needs. We love to work on cars. We take pride in learning as much as we can and sharing our skills with auto enthusiasts.

We're not out to rip people off and cut corners. We work on every car with the same passion we have working on our own. We'd love to see our customers' tuner looking clean, driving fast, and expressing them and their style without breaking the bank.

We pride ourselves on being the guy that says, ya I'll make that part that no one else will make, or sure I'll take on that custom project no one else will touch. At TruSpeed Performance we're all about making our customers dreams and ideas into reality and doing it right. We won't recommend parts we don't think our customer needs or would really see a benefit from. We'll recommend options that we ourselves would want to try if their car was our own.

We feel that by taking a different approach to the performance world that we will be able to start a trend of trust and a great working relationship with our customers. We feel that by being honest and not trying to jerk customers around and keeping their interests at the top of our priority list that we'll have plenty of happy customers who will leave our shop with a lasting impression of our 110% attitude and attention to detail.

We feel that by starting this business with low overhead and coming from a couple of enthusiasts modifying cars in a garage to a world re-noun full service custom and performance shop that still treats every customer as if they were family, that we will have a competitive advantage over our peers.

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IV. Products and Services

At TruSpeed we pride ourselves on doing everything right the first time. We aren’t going to hack job something or “ghetto rig” the customers vehicle, just to get it out of our shop. We practice the industry’s standard and original manufactures methods of repairs. We are an AllData Certified repair shop, which means we use the same information the dealers do to repair our customer’s vehicles. We are kept up to date on all the recalls and technical service bulletins released around the industry.

We feel that we can do the work that most other shops can with more attention to detail, and not as much cost. That is why we have set our rates the way we have. We strive to keep our prices less than our competitors and do a better job. We feel that too many dealerships today claim a high standard of excellence because they are the Original Equipment Manufacturer, but fail to do so. We have found that many dealerships cut corners or charge customers for services that are not needed. This is why we feel that by being honest and upfront we will have a competitive advantage, not only in price but in quality of service. We also sell a variety of aftermarket parts including some which are made only in Japan, Europe and Australia. We pride ourselves on offering the best options to our customers at competitive prices. Our labor and fees are as follows:

Luxury Make Labor Rate $60/hr Standard Make Labor Rate $45/hrDiagnostic Flat Rate $40/hrDyno Tuning Rate $250/hr *Street Tuning Rate $100/hrGM ECU Unlocking fee $150** Custom Projects minimum $300 R&D Labor

*does not include dyno rental time**excludes GM V6 Alloytec

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V. Marketing Plan

Based on our research we have found that the number of small cars and light trucks in the state of Utah, both new and used, being purchased during the last few months of the fourth quarter of 2010 has gone up 6.27%. We have also found that not only have more vehicles of this type been purchased, but also more have been registered since last year. We have also found that shops are beginning to only perform the most basic maintenance or repairs; however they are not working on the custom tuners. Most of the race shops will only build the very expensive track only cars that the build from the ground up.

We have found that by being available to not only build and tune high performance vehicles, but to also be able to do the standard regular maintenance on vehicles, we are able to appeal to a broader spectrum of people. In Salt Lake County alone, 13,381 used vehicles were purchased in the fourth quarter of 2010. These vehicles, unlike the new models, aren’t covered under a manufacturer’s warranty anymore and people need a reliable place to take their car for service. With the elimination of some of the industry’s well known auto manufacturers, owners will need a reliable shop to turn to for their repair needs. With the market becoming smaller in choices of different vehicles people are looking for more ways to make their vehicle unique. By being versatile in not only helping customers to help their cars to perform better, we are also equipped to help their cars run like they are supposed to.

This strategy opens our market up. There are 1,932,492 of Utahans who registered their passenger cars this year who next year will be looking to get their emissions and inspection requirements taken care of to reregister next year that could be potential new customers for us. We will also be able to help the 1,929,033 of Utahns passenger cars and light trucks who registered last year whose vehicles registration will soon be expiring. A new study commissioned by SEMA indicates that aftermarket products influence about 1,180,000 new-vehicle sales each year. The automotive marketing research and consultancy firm AutoPacific collected and analyzed consumer data to quantify the effect that accessorization has on the sale of new vehicles. The resulting report, "Influence of Accessories on New-Vehicle Sales", details the findings.

Our specialty is performance. Of the new vehicles purchased during the fourth quarter of last year, 2,157 of those vehicles are a part of our specialty target market. Currently the performance aftermarket is growing significantly. With shows like Street Customs, American Choppers, and even the old reruns of Pimp My Ride and movies like The Fast and The Furious (newest of installment was released last month “Fast Five”), people are getting more excited about customized vehicles. Also the groups of people who are enthusiastic about certain vehicles and modifying them are growing too. Almost every weekend year round the SCCA hosts at least one autocross, rallycross, or wintercross event. Miller Motor Sports Park offers their Wide Open Wednesdays in which many cars that are street cars with a few modifications. The tracks and racing communities are booming and they need a reliable shop to help them meet their performance needs on a middle class wage. Most of these people are weekend racers who work all week. They aren’t professional racers with

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an unlimited budget. This is why we feel that our company is a huge asset to this economy and its auto enthusiasts.

With the price of gas consistently going up and down, but seemingly more ups than downs, many people are looking to get the best fuel economy out of a vehicle. Many people don’t want to sacrifice the feeling of a performance vehicle and are left with poor gas mileage. With our skills in tuning the modern computers in vehicles today, we would be able to help our customers not only get more power but also better fuel economy out of their vehicles. Many people today don’t realize the importance of their alignment and suspension in the drivability of their vehicle. We feel that by helping some of the tuners and everyday drivers fine tune their suspension as well that not only will we be helping their car perform better and their tires to last longer but we’d be helping making those vehicles safer on Utah’s crazy roads and our wonderful race tracks.

Some of the hurdles of being a new company in the automotive industry today are competing with the chain stores and the brand recognition that they already have built. The cost of marketing and getting our name out there isn’t going to be horrible, but it’s a necessary evil to starting in this industry. However, we feel that it can also be an advantage, not being a big name store with huge waiting lines and appointments. We can give our customers a professional impression by our methods and professional appearance and a homey feel with our honesty, sincerity, and genuine 110% attention to detail while working on their vehicles. We feel that our customers will leave with the feeling that they were treated fairly and that they got more than they paid for. We feel that this will be our biggest factor that helps our success. With a convenient prime location in the center of of Salt Lake City, we are right in the heart of our target audience. Once customers leave they will tell their friends and family of their experience with us, and by being near the two largest freeways in Utah our visibility will put our name on their minds.

What will set us above the rest of the performance and repair shops in the area? We have found that most of our competitors, for example SLS Performance, Solid Autowerks, and the few other performance shops in the area tend to be hard to find and tend to be very limited in the work they do or can do. We feel that by not only beating their prices and doing more, we can also succeed over them by being in a convenient to find comfortable location where our customers will feel happy coming to us again and again. The location we have chosen for the new home of TruSpeed Performance is just west of State Street, and just North of the 7200 S exit on I-15 it’s a very easy to find location, surrounded by similar businesses and right across from the local paramedic station.

Also what will set us apart from our competitors is our standard of excellence in not only our work but in education. We feel that our customer’s vehicles should be in the hands of a qualified professional who has not only taken the time to gain the experience but has also taken the opportunity to become certified to prove their competency. We will strive to make sure that all of our employees will make the most of their experience by gaining as many certifications in the industry as they can, including ASE, ICAR, MESA, etc.

We feel that most of our customers are looking for the best quality of product out there for their vehicle, but they are also concerned about getting the most for their hard earned money. This is why we strive to get the industry’s best products for our customers at the

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best prices that we can possibly offer them. Our customers are pleasantly surprised when we tell them our versatility in products we offer and to what extent we’ve gone to make sure we are able to get the best products for their vehicles at the best possible prices. When we find that a customer’s vehicle is lacking options with what we currently offer, we’ll do the research and put in that extra time to make sure that if there is a better option for them that we’ll get it. We are also working to produce many custom products for vehicles that our customers own and love but don’t have much of a support in the aftermarket at this time. We will go above and beyond doing research for our customers to help make their dreams come true with their vehicles.

Our customers have a large range of interests, backgrounds, ages, and incomes but they all come together under one common passion. We feel that because we also have this same passion that we can best serve their needs. Our customer’s passion for cars goes beyond all their differences and brings them together, and for this reason it will bring them to us. We have 16 year old kids who are so excited about driving and their first car that they have a ton of ideas for sometimes less supported older vehicles but have a decent income and not a lot of bills because they still live at home. We have older high school kids who may have newer cars or cars they have started to modify themselves but don’t have the means to do the big modifications we are capable and experienced in performing. We have broke college students who are on a very tight budget but throw their every last dollar not spent on school and living into their cars. We have older more established working adults who have a good income and are finally in a financial state where they can finish that project car they’ve had sitting for so long. And our final customer is the everyday working class individual who needs their car repaired, serviced, or inspected for licensing. Each and every customer has a unique need and a unique budget, but where we feel we are able to serve them better than our peers is that we spend the extra man hours to help make their dreams a reality. Hours that we aren’t being paid for, but spend because we get excited about the projects people bring in because we take them on as if they were our own project car.

Table 1: Competitive Analysis

FACTOR TruSpeed Strength Weakness Solid Autowerks

SLS Performan

ce

Importance to

Customer

Products Comparably

We import and get more

unique parts

We don’t stock as

many parts as our

competitors yet.

They have some

accounts we don’t and have

some better prices on

things because they’ve been in

business for longer

Have huge line of

products including some of

their own

Having the parts on hand and

not having to wait is definitely important

to customers

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SLS Performan

ce

Importance to

Customer

PriceOur Prices are really

good!

We beat out everyone’s prices or

match them

Not as much profit

Reasonable prices

Reasonable Prices

Price is definitely a

factor to the

customers.

QualityWe go over the top and do all sorts of extras

We give a personal

touch to our customers

cars

Good quality

work nice guys

Track proven results

Customers want to

make sure their stuff is done right.

Selection

We have a good selection of products and services and we’ll take on more than our competitors.

One of our big strengths is our versatility in products and services.

Selection on hand is something we need to work on but will come with more business.

Limited in selection of services and types of vehicles they

choose to work on.

Huge selection of parts but don’t offer services to everyone.

People want choices;

they want to feel like

they are the boss

especially when a lot of money is concerned.

Service

We offer a quality service,

with honest and

encouraging results.

Our work ethic is a

huge strength.

Our limited staff and

time schedule has hurt

our customer service

reputation slightly

Limited in services

and vehicles

they work on however

they do quality work.

Good customer

service and the

products they offer

are reasonable

and reliable.

People want to be

treated well and they

expect the same to

their vehicles.

Reliability

Our service is reliable however callbacks and ease of scheduling needs work

Quality work with no comebacks. Quality products at a competitive price guaranteed

Scheduling and call back times or completion times aren’t as reliable as they should be.

You can guarantee if Solid makes an appointment they’ll be there, answering their phones isn’t always reliable but work is good.

Reliable products with track proven results to back them up

People expect that if they trust you to work on their car that it won’t break down again for a while.

Stability We need a stronger

base clientele

We need to get our

name out there and

Questionable but

building. They have

Good name well

established.

Customers like to

believe that their work

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SLS Performan

ce

Importance to

Customer

and more income

start getting more

money in.

had their ups and downs.

is guaranteed

Expertise

Still growing but

decent knowledge

base

Professional training, industry

recognition and

certifications.

Not as many years

of experience

as our competitors

Specialize in Subaru

and Mitsubishi

only

Huge knowledge

for American

cars however imports

aren’t their specialty

People want to know that the person

working on their

vehicle knows their

stuff.

Company Reputation

Quality work,

attention to detail

We’ve wowed our customers

so far

We lose a lot of

business because we aren’t yet in

a full size shop

Huge reputation with the

Subaru and Mitsubishi

crowd.

Widely known for doing good

work.

Some people

won’t check out a new

place unless they’ve heard

someone else had a

good experience

there.

Location

Right now our location is lacking, however the move to the new place will really help.

The new location is right in the

heart of Sandy city near many

of our suppliers and very

easy for our customers to find and for people

to see.

Currently running a

small operation in residential.

Near dealers, but hard to find and off the

beaten path.

Small signage and hard to see, however on

a main street.

People want to feel like

its convenient when they

have services done for

them. They don’t want to spend a lot of time trying to

find a shop and they

want to feel comfortable

leaving their

vehicle there.

Appearanc Professional appearance

We keep our things

Shop is clean,

Shop needs better

People love professional

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SLS Performan

ce

Importance to

Customer

e, clean work environment.

looking nice and ourselves looking professional.

however no showroom, building doesn’t look like a shop really, and techs don’t wear logo or have uniform appearance

signage

appearance, and place they feel comfortable in. A quality showroom and professional employees help business.

Sales Method

We are able to up-sell

and get the customers

excited about extra services to get them to come back

in the future.

We offer the best parts at competitive prices and suggest services that our customers really need and that we know they’ll want.

We currently don’t take credit cards except through PayPal, and our website shop and eBay store need work.

Their site is easily navigable and parts are described well, however they don’t sell online and don’t offer services or up sell in person.

Professional site set up for selling parts only, very strong

set up.

People don’t want to feel like they’re being hustled, and really want to feel like they know about what they are buying. Also they like options and easy methods of purchase.

Credit Policies

Not set up except online.

Not as convenient

for our customers.

Accept most cards.

Very supported.

Not the most

important thing

however is a

convenience.

Advertising Very limited

Needs a bigger

budget and more

visibility

Good word of mouth

but no walk in support or other

advertizing

Good word of mouth

but no walk in supportHowever they have

other shops that carry

their products that help

them advertize

Customers don’t really like ads but they like to have heard

of you before they work with

you.

Image Very limited Professional Not very Good Good People who

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SLS Performan

ce

Importance to

Customer

following needs a lot

of improvement; however

what has been said has been

good.

logo and professional

image.well known

yet.

image, strong logo,

good reputation.

reputation, bland non

recognizable logo.

know your image or

your name and say hey

yeah I’ve heard of you or I

know that image that’s

so’n’so they feel

comfortable doing

business with you.

TruSpeed has the strength of a professional image, a prime location, recognizable logo, and competitive price. We have versatility in service and product selection as well as the types of vehicles we will service. Our techs are professional in their image as well as their training. Our weakness lies in us being new, but our strength is in our passion, integrity and professional work ethic.

StrategyWe feel that by starting small with little overhead we have been able to establish a name for ourselves in our quality of work, our honesty and willingness to work above and beyond for our customers. Now that we have built a strong platform to stand on we feel that we can stand up and take things to the next level by becoming a performance shop in the heart of our customers that offers more products, better prices and service at reasonable rates. We are also catering our services to the needs of our customers by picking up the slack where others lack. By exposing ourselves to the rest of the world and putting ourselves in a convenient location for our current customers and in a location for new customers to discover us, we are able to not only make performance easier and more affordable to obtain, but also more convenient.

Promotion and imageWe plan to promote through a grand opening barbeque with appearances from our sister shop, some of our well known vendors and a Radio DJ to get the word out. Along with the radio station coming out we will be having an ad campaign for the two weeks before the event. We will also be attending U92’s Cinco de Mayo, concert and car show, where we will be getting radio mentions and a 10 second interview plug. We also plan to send out fliers in the mail, attend enthusiast meets, support local forums and participate and make appearances at local racing events to not only show our support for our customers but to also put a face to the name we are building for ourselves. We also plan to use a spot on

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fox13now.com to help get the word out about TruSpeed as their largest viewer base is in the Sandy and Draper area. We feel that through these media outlets we will be most effectively able to reach the entire customer base we are trying to attract, by targeting those people who are near us, and who are looking for the services we offer and specialize. At these events we plan to hand out promotional materials including pens, logo-wear, pamphlets and business cards. The paid events will be specifically marketed to our target audience of our core customer base. We also plan to do a branding campaign with one of the local radio stations for the two months following the grand opening.

We want our customers to see us as the comfortable, convenient and professional shop that is best suited and most capable of taking care of their automotive performance and repair needs. In order to help this professional image we plan to wear professional attire with our logo to all meets and events, and wear professional industry standard safe working uniforms while working on our customers cars. We feel that by having a clean well designed show room not only will we entice our customers to purchase more product that they see displayed in the showroom, but they will feel like they can relax in our waiting areas. We want them to feel comfortable and accommodated if they decide to wait at the shop while we work on their vehicle. As well as making our customers feel like they are wanted and appreciated, we also like to follow up with our customers and make sure we met their needs, and talk about their future plans with their vehicles and how we can help them in the future.

We also take part in local and national automotive industry events including Autorama, Utah Auto Expo, and the annual SEMA show, where we network and make contacts with manufacturers and make sure that we are on the cutting edge of the latest technology in the industry. We also talk to manufactures about our customer’s projects to help produce new products for our customers. We enjoy participating in local track events as well as going out to events and showing our support and talking with local enthusiasts and explaining how we can help them make their vehicles perform better. We also attend the local enthusiast meetings to immerse ourselves in their culture and be able to better serve their needs.

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Promotional Budget

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Replace this page with grand opening and first month marketing budget

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Page 2 of Marketing Plan

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PricingOur pricing for our work is set at a reasonable rate that we are able to compensate ourselves sufficiently, put some money toward our net savings for the business and also make our customers feel like they are getting an awesome price. Our prices are slightly lower per hour than our competitors. For our parts, we usually match our competitor’s prices or if we can give our customers a better deal without going below the MAP price set by the manufacturer we will choose a price somewhere in-between the MAP and our competitor’s lowest price. Currently we only accept cash or check payment in the shop. Eventually we plan to support credit cards as well. We currently accept credit cards on our website for parts. Our labor prices are as follows:

Luxury Make Labor Rate $60/hr Standard Make Labor Rate $45/hrDiagnostic Flat Rate $40/hrDyno Tuning Rate $250/hr *Street Tuning Rate $100/hrGM ECU Unlocking fee $150** Custom Projects minimum $300 R&D Labor

*does not include dyno rental time** excludes GM V6 Alloytec

Automatic and Manual Transmission Service offered with standard or synthetic gear oil.We offer performance oils for an added cost. Standard $70 Performance $140

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Oil Changes offered with standard or synthetic oil. We offer performance oils and filters for an added cost.Prices for Up to 4 Qt. Standard $32 Performance $75Cold Air Intakes Install $60 Labor+Parts

Tune Ups $80

Aftermarket gauge install $70-90Labor+Parts depending on type of gauge

Powder coating or Ceramic coating services $Price varies depending on type of coating and item being coated

BrakesBrake Pad Install $45 per axle Labor+PartsBrake Pad and Rotor Install $60 per axle Labor+PartsBrake Flush $48Stainless Steel Brake Lines Price varies per vehicleFree Tire Rotation on request with purchase of any service

Proposed LocationLike I’ve stated before, TruSpeed has been very limited in its growth and potential customers because we are currently running out of residential. By moving to a commercial location, we are increasing our exposure, taking away people’s skepticism of our competence to do our job, and improving our overall professional image. We are proposing to move into a shop on 6655 South and 400 West in Murray. With the shope being in a central location with easy access to all major freeway systems in the Salt Lake Valley, our potential customer base increases significantly and with the location being in the heart of the city, we are in the heart of our target customer base. The shop has two 14’ bay doors on a 3,850 sq. foot warehouse, a 150 sq. ft. office with brand new tile and plenty of space that we will use to effectively do our job. The shop needs minor changes before opening, however it will stand out and look great and attract a ton of people when we are finished. There are plenty of parking spaces for our customers and plenty of space for all the equipment we need to do our job and do it well. The shop will have a nice well lit and professional show room that will work perfectly to keep with our professional image and help our customers to feel comfortable and accommodated.

Most of our direct competitors are located in less convenient, hard to find locations. Some of them are located near dealers and distributors; however they are not located in the middle of a major metro area like we will be. We feel that in this sense it will help us get a better exposure and have a higher chance of success. The exposure of being in a prime location like the shop we are looking at will be very beneficial and having a well advertised grand opening will be a great opportunity for new customers to find us. This along with the other manufactures and dealers in close vicinity makes this shop a clear choice to efficiently and effectively target our customer base.

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Attach shop pamphlet here

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Distribution ChannelsWe sell products to our customers whose vehicles we work on, local customers who will purchase in the store or order in. We also sell product on our website, through forums, and on EBay. Once we get bigger we plan to employ salesmen to work in the store as well. We also market our services to the local community through word of mouth, the local auto enthusiast forums, and by attending racing and show car events. Currently we are employing all of our techs as independent contractors.

Sales ForecastBased on the numbers and progression we have seen over our first year of business we have developed a sales forecast that takes into account the increased advertisement, new location, and new services we will be offering. We feel that these figures are realistic because of our strategy, increased exposure and attention to detail which have proven to give us a good name and constant increase in interest in the business and our services.

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Attach Sales Forecast here

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VI. Operational Plan

TruSpeed currently is set up through appointment only. We only take on as many cars as we can handle. Right now we have between one and two techs on a vehicle at one time. We have one assistant who helps with paperwork, accounting and scheduling. We plan to keep these numbers until the customer flow increases enough to need more. Equipment used includes air tools hand tools, lifts etc.

We plan to get an alignment rack with accessories to help us better fine tune and adjust our customers steering and suspension to help them to handle better on the roads and on the track as well as get the most out of their sport and race suspensions. With many people lowering their cars or using them for performance purposes the conventional alignment isn’t going to be sufficient for their needs. We feel that by offering this service to our customers we will be able to appeal to them and offer them a service that no one is currently offering.

We also plan to invest in more tuning and diagnostic tools to help us diagnose and tune peoples engine management systems, to get more power and/or better fuel economy out of their vehicle. All of the power upgrades that we offer to our customers can benefit from tuning their computer system. Because we are dealing with engines that tend to make a lot of horsepower we need more diagnostic and engine tuning tools than the average repair shop. Our customers expect that if we build an engine for them or tune their system that they will be able to push it to its limits on the track and not have issues.

ProductionThe products we offer our customers come from all the industry leading aftermarket manufactures. We are authorized dealers for some of the industry leaders including, K&N, AEM, and Magnaflow. We import some products from different countries including Japan, Australia, and some European countries. We also use distributors, wholesalers and local parts stores to get parts for our customers. All of the products we sell come with manufactures warrantees and we guarantee our services. Of the products we are currently working on manufacturing to sell with the TruSpeed name, go through many tests and are manufactured with top quality materials.

LocationIn order to run efficiently we need to have space to pull in vehicles and pull them apart and stay organized. We need a building that will allow automotive service and repair and the hazardous materials that are involved. We need an area that is easy for a tow truck to drop off a non running vehicle or a large vehicle to bring in engines or other large heavy parts in as well as space for our customers cars. We would like to be able to do almost everything besides paint and machining. We feel that by having walk-in access and a nice looking show room not only will we increase our sales but we will also increase the trust and impression we make on our customers. We need to be in an area that our suppliers can find easily and

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near auto parts suppliers and dealers. Because we deal with a lot of lowered cars we need a driveway that is easily accessible. With our alignments and suspension tuning of lowered cars we would like to be able to have an alignment rack that is easy to drive onto without chancing damaging our customer’s vehicles.

In order to make the building looking like it should we’ll need to do very minimal signage as well as add a few machines and lifts to make an effective work environment. We will need a few things to fill the show room. For the showroom we would put furniture for our customers to sit in while they wait. We would also need display cases and racks in the show room in order to hold some display items. We need to get a new alignment rack in order to perform the proper tuning of the steering and suspension parts on performance vehicles. The alignment rack we are looking into purchasing will cost $58,462.27. We plan to lease this from Hunter Engineering Company. We will also need to purchase other miscellaneous machines and tools to help us to run our shop. Total cost for other shop machines will total at approximately $2700.

We plan to run Monday through Friday 8am-6pm and most Saturdays except when there are track or dyno events, eventually when business picks up we will have enough staff to stay open. The average utilities for the building run between $150 and $300 per month. We also need a few services to make our business run efficiently including AllData information services which costs $150 per month. The other services we need are internet and phones which we have had quoted through Comcast for $114 per month. Also we need to eventually if not right away be able to process credit cards; these services range from $25-$40 per month depending on the service provider.

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Legal Environment

In Sandy City we are regulated under the class of automotive repair and service. We are currently licensed and have insurance set up to start when we move into the new shop in order to cover all of our tools, machines and a few customers’ cars if they stay overnight. Our shop will be equipped with fire extinguishers and flame resistant cabinets for flammable substances. We will be submitting for Trademark rights to TruSpeed Performance, and our logo. The cost for filing has been included in our startup budget. We will also have to apply for a new license under Murray City.

Personnel

Currently we have one independent contracted tech, which has experience in the automotive industry in service, parts and body work. He is ICar and ASE certified in body work and will be going up for ASE Parts certification. All techs I employ will be required to have at least two years experience and be in pursuit of certifications or be certified. I will be encouraging all my employees to continue their education outside of their work with TruSpeed. Currently one of the part owners will work as a receptionist, and with paperwork and scheduling as well as with rendering for custom projects. The main owner will work as a technician, parts manager, webmaster, and account manager.

All new employees will go through background checks and drivers’ license checks. Pay structure will be based on experience and certifications. Bonuses for certifications will be given to employees who obtain them after they begin working for TruSpeed. We will require all of our employees to become AllData Information Specialists.

Inventory & Suppliers

Most of our most popular items can be had from our distributors same day if not in a few days. We plan to in the future once we have a better idea of what sells best, start to stock more common items. Currently we only stock oils and recharge kits for a few air filters. We also plan to have a few display items for the show room to help sell products.

We get most of our products through a few different distributors; Turn 14 Distribution (east coast), Pro-Motion Distribution (west coast), and Team Allied Exhaust (our main exhaust distributor). We also have wholesale accounts with a few other companies; Rallysport Direct, Orielly Auto parts, 1800 Radiator, etc.. We also get products directly from some manufacturers including AEM, Hydra, K-Mac, K&N, Cometic, ECS Tuning, and DDM Tuning. We get parts from some other retailers that we have wholesale accounts set up with including Street Unit and Motorsport Warehouse. We have accounts set up through most dealers as well.

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Credit Policies

We do not plan to offer credit or any sort of financing for our customers at this time as it is more of a liability for us then a benefit. We recommend to our customers local lenders that they may acquire financing if need be. All customers who bring their vehicles in to us are expected to pay at the time of service and are asked to sign a work order before any work is done. For any long term project vehicles we typically like to get our customers to at least front half of the cost for parts if not all cost for parts. For any custom work we have a deposit of 300 dollars to cover the cost of research and development that can later be put toward the cost of the project. If payment isn’t made on the vehicle the vehicle is not returned to the customer. For project cars if not money has been paid in a two week time period and more than $300 worth of labor has been preformed, work on the vehicle will stop until payment is made. After one week past expected payment due date we will call and follow up with the customer. When the payment is 30 days late and we have not been able to get in contact with the customer or arrangements have not been made, we will send a letter to the customer informing them that if they do not pay then we will start to charge them storage fees for their vehicle. If there is still no action taken by the customer after 60 days we will notify the credit bureau. Once 90 days have passed we will file for a mechanics lean on the title. If the customer has still yet to make any attempt to pay or contact us after 90 days past due we will take possession of the vehicle and sell it at auction.

Total Current 30 Days 60 Days 90 Days Over 90 Days

Accounts Receivable Aging

Full Cost Due at time of service

Storage Fees

incurred

Notify Credit Bureau

Place Mechanics lean on title

Take possession

of the vehicle and

sell at auction.

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VII. Management and Organization

TruSpeed will be run at very minimal staff to begin with. All future employees will be required to be experienced in either the automotive field or in the field in which they will be working to help TruSpeed. We plan to have the organization in the future as follows:

OwnerParts Manager Business Manager Shop Foreman

Delivery Driver/Parts Specialist Salesman/Receptionist Tech/Tuner

We will be applying for the ASE Blue Seal program therefore each person in a supervisory position must be ASE Certified in the area in which they work.

For financial advisement purposes TruSpeed will be using Jeff Neilson, Vice President and Sr. Business Relationship Manage with South Towne Business Banking Group of Wells Fargo. Jeff will be helping us in fine tuning this business plan and on the starting of this expansion. For insurance purposes we are working with Todd Kiser with Insurance Network for advising on insurance for the shop and the business. For advising on media marketing, we are working with Chris Bowles and Lindsay Goeler with Simmons Media Group. For TV Marketing we have talked with Julie with Fox 13 and plan in the future to work with other networks.

We are interviewing for a new attorney to help us in all legal aspects related to the business. Also we are starting interviews for a business manager to help maintain the business end of TruSpeed. We have also consulted with family friends who have ran successful businesses in the area, attended business seminars for the Automotive Industry and sought advice from local successes such as Dave Kindig, and even some of our local distributors and our sister shop that has been quite successful through the past year.

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VIII. Personal Financial Statement

1) Table of Contents.....................................................................................26

2) Assets.......................................................................................................26

a) America First Personal Account

b) America First Joint Account

c)Navy Federal Account

d)USAA Account

e)Wells Fargo Account

f) Wells Fargo Brokerage

3) Debt.........................................................................................................26

a)USAA Credit Card

b)Navy Federal Credit Card

c)America First Credit Card

d)Wells Fargo Credit Card

e)Navy Federal Line of Credit

f) America First Line of Credit

g)Auto Loan

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IX. Startup Expenses and Capitalization

The costs that have been estimated for startup include what we feel would best allow us to do our job. We have accounted for the machines that we need to perform the services that we offer to our customers. In order to completely service our customers vehicles we need to not only be able to install aftermarket parts, but to also be able to fine tune them for them to be safe and for our customers vehicles to make the most of them. Also through our research we have found that it is very important for our customers to have a show room where they feel comfortable. It needs to have a professional appearance, a cleanly kept comfortable atmosphere, and professional staff to maintain it. We have estimated for a POS System to make cash and credit transactions. We have estimated for one shop computer for our techs to look up information on all data to help them better do their job and to have the manufactures specs on hand. We have estimated for one computer for the show room to show our customers potential modifications or products for their vehicles. We have estimated for display cases to display some of the product we sell to our customers. We have budgeted for accommodations for our customers including chairs, a TV and a vending machine. We have allotted for ink, paper pens and other office supplies required to be able to handle our customers accordingly. We have also budgeted for a grand opening and advertising to help promote it. We have budgeted to have U92 send one of their DJ’s out to the new shop. Our initial budget has been included in this plan. Based on our research we find that a loan in the amount of $25,000 is sufficient to effectively start this business and for it to be successful.

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Renovation Startup budget here

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X. Financial Plan

12-Month Profit and Loss ProjectionDetailed Annual Sales ForecastFour-Year Profit Projection

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XI. Appendices

Usage Statistics for www.truspeed-performance.com 09/10 Utah Current Registration list 11 Utah Current Registration list New Passenger Vehicle and Light Truck Sales List Fourth Quarter 2010 Used Vehicle and Light Truck Sales Fourth Quarter 2010 X96 Listener Profile and Studies U92 Listener Profile and Studies Comcast Business Class Price Offer Valpak Media Package Offer Google Places Advertizing info Best Buy for business Quote Ease Diagnostics info ECUTek Mazda Flash Software info Tactrix Flash Adapters Price Sheet Hunter Alignment Rack Quote TruSpeed Services List April 2011 SEMA Market Research Study

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