Business plan

Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the Auto body repair workshop is one of them. All over the world, car body repairs is one business that never goes into extinction. This is because daily, fleets of cars are being added to the selling scale garage of people and so whether it is a brand new car or a fairly used one, you can be sure that sometime in the future car repair whether the engine or the body would be inevitable.

The Autobody Repair Shop industry provides bodywork, spraying and electrical repair and maintenance work for cars, trucks, vans and trailers. Players in this industry include self-employed autobody technician, auto electrician, and car care centers established by automobile manufacturing companies. And autobody repair shop industry also include car dealerships, auto parts retailers. Statistics has it that the Automotive body or auto mechanic Repair Shop industry all over the world, is worth more than $300bn. There are about more than 2,251,016 registered and licensed autobody repair workshops in the world and they are responsible for employing about 4,530,978 people.

Over and above, the automotive body repair shop industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own automotive body repair business and of course make good money from the industry.

O.K Naro Auto body Garage will offers services such as auto body repair and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Our business goal is to become one of the leading auto body repair companies in Ghana and we will make sure that we do all we can to compete favorably with leaders in the industry and also automobile manufacturing companies who have services centers.

Our workers are going to be selected from a pool of certified and highly experienced auto body repair engineers and technicians in and around Kumasi and also from any part of Ghana as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading auto body repair workshops and services centers in Ghana.

At O.K Naro Auto body Garage, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, for all our partners, employees and for our clients.

O.K Naro Auto body Garage is founded by Mr. Abubakar Sahadu who graduated with Professional and Technician Certificate (Advance) in Automobile Engineering from Kumasi Technical Institute 2012 And with 5 years working experience, and my partner Mr. Amos Ansah Adomako who also graduated with Automotive body repair engineer part III (3) and with 10 years working experience. we are going to combine our experience that can help us build O.K Naro Auto body Garage to favorably compete with leaders in the industry and also automobile manufacturing companies who have services centers.

Product and Services

O.K Naro auto body Garage, is going to be established with the aim of maximizing profits and also providing a moderate services in the auto body repair shop industry. We want to compete favorably with the leading auto body workshops in the Ghana which is why we going to put in place a competent quality assurance working team that will ensure that every auto body repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

O.K Naro Auto body Garage, will work so hard to ensure our goal is achieve not just in our current location but also in other cities of Ghana where we intend opening our branches in the future. Our products and services are listed below;

•Repairing dents and replacing of metal panels

•Repairing and replacing of damage suspension system parts (coil spring, leaf spring, steering rack etc)

•replacement of damage parts (head light, tail light, bumper, etc)

• performing of spraying (interior and exterior)

•Repairing and replacement of damage frames components (trucks, light vehicles etc)

•Repairing and replacing automotive exhaust systems

•Repairing and replacing of automotive brakes

•Performing automotive electric repairs

•Performing automotive wheel alignments

•Repairing automotive radiators

•Other repair and maintenance services

•Perform welding of aluminum (Non-ferrous metal)

Vision Statement

O.K Naro Autobody garage is to establish a standard, affordable and world class auto body repair workshop whose services and brand will not only be accepted in its current location but also in other cities in Ghana in the future where we intend establishing new branches

O.K Naro Autobody Garage mission is to provide professional autobody repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in other to ensure that their automobiles are always in good shape. And we want to build an auto body repair workshop that can favorably compete with other leading brands (large, medium and small workshops) in the automobile body repair and maintenance services industry.

O.K Naro Autobody Garage, headed by Mr. Abubakar Sahadu and Mr. Amos Ansah Adomako is an autobody repair and maintenance service workshop that we intend starting medium workshop in Kumasi, but strongly hope to grow big in order to compete favorably with leading automotive repair workshops in the industry both in the Ghana and hopefully on African continent. We are aware of the importance of building a solid business structure that can support the picture of the kind of standard and world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At O.K Naro Autobody Garage, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

In view of the above, we have decided to hire qualified and competent hands for the start to occupy the following position;

• 
  Autobody workshop Supervisor (foreman)
  
• 
  Accountant
  
• 
  Estimator
  
• 
  Automotive body Repair and Maintenance Engineers / Technicians (8)
  
• 
  Client Service Secretary
  

•Serve as project manager of the shop; works directly with employees

• Assist in preparation of estimate cost for the job

•Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.

•Instructs and trains employers in proper repair and maintenance procedures

•Ensures policies or procedures, and job safety

•Builds the workshop image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.

•Maintains quality service by establishing and enforcing workshop standards.

•Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.

•Make certain that the auto body repair department perform efficiently, coordinate employee efforts, and facilitate communications between management and maintenance engineers and technicians

•Ensures that the autobody workshop work in line with international best practices.

Accountant / Cashier:

•Responsible for preparing financial reports, budgets, and financial statements for the workshop

•Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.

•Responsible for financial forecasting and risks analysis.

•Performs cash management, general ledger accounting, and financial reporting for one or more properties.

•Responsible for developing and managing financial systems and policies

•Responsible for administering payrolls

•Ensuring compliance with taxation legislation

•Handles all financial transactions for O.K Naro Autobody Garage

•Serves as internal auditor for O.K Naro Autobody Garage.

• 
  Estimates cost of overall repair of the vehicle on basic visual inspection and familiarity with a standard parts, cost, and labor rates.
  

• 
  Examines interior for evidence of any damage to upholstery and components
  

• 
  Computes cost of replacement parts and labor restore vehicle to condition specified by the customer using standard labor and parts cost manuals
  

• 
  Enters itemized estimate on job card or estimate forms and explain estimate to customer
  

• 
  Determines feasibility of replacement parts or repair, such as bumpers, fenders, and doors, according to familiarity with relative costs and extent of damage
  

•Performing automotive body repairs

• performing of spraying (interior and exterior)

• Repairing dents and replacing of metal panels

•Scheduled and preventative body repair and maintenance services

•Repairing and replacement damaged frame components (trucks and light vehicles)

•Repairing and replacing automotive exhaust systems

• Repairing and replacing of damage suspension system parts(coil spring, leaf spring, steering rack etc)

• Repairing dents and replacing of metal panels

•Repairing automotive brakes

•Performing automotive electric repairs

•Performing automotive wheel alignments

•Repairing automotive radiators

•Handle wheel alignment and repair services

•Handles other repair and maintenance services

Client Service Secretary

•Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.

•Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level

•Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services

•Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

SWOT Analysis

O.K Naro Auto body Garage engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured auto body repair workshop business that can favorably compete in the highly competitive auto body repair, maintenance and service industry in Ghana.

Part of what the team of business consultant did was to work with us in conducting a comprehensive SWOT analysis for O.K Naro Auto body Garage. Here is a summary from the result of the SWOT analysis that was conducted on behalf of O.K Naro Auto body Garage;

•Strength:

O.K Naro auto body Garage, our core strength will lies in the power of our team; our workforce. We are going to have a team of certified and highly trained and experience automotive body repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automotive body repair and maintenance service industry. Aside from the synergy that exists in the company carefully selected workforce and its services will be guided by best practices in the industry.

•Weakness:

As a new auto body repair and maintenance workshop in Kumasi, it might take some time for the auto body repair and maintenance workshop to break into the market and gain total acceptance especially from top profile clients in the already saturated and highly competitive auto body repair and maintenance services industry; that perhaps will be the major weakness. Another weakness is that we may not always have the required cash to pump into promoting or advertising our business on radio and Television the way we would want to.

•Opportunities:

No doubt, the opportunities in the auto body repair and services industry is massive considering the number of individuals and corporate organizations who owns automobile in the Ghana. As an auto body repair and maintenance workshop, we are ready to take advantage of any opportunity that is available in the industry.

•Threat:

Just like any other business, one of the major threats that the company is likely going to face is economic downturn. It is a fact that economic downturn affects repair services. Another threat that may likely confront us is the arrival of a new auto body repair and maintenance workshop in same location where the company target business exist and who may also want to adopt same business model or some part of services like us.

MARKET ANALYSIS

•Market Trends

One good thing about the Auto body Repair workshop industry is that, it is an open industry hence a low level of market share concentration. Even though large automotive companies operate in the industry, revenue is also spread among thousands of small or medium automotive body workshop and even mobile auto repair businesses.

As a matter of fact, no single auto body repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller or medium auto repair shops accounts for a large percent of the players in the auto repair services industry.

It is a known trend in developed world and even developing world to find steady growth in the Auto body and auto Repair workshop Industry, As a matter of fact, this industry has grown steadily for so many years in Africa and world at large and it is projected to continue to enjoy steady growth.

Individuals and businesses have always increase demand for auto body and auto repair services, as rising per capital disposable income and corporate profit encourages automobile owners to opt for autobody and auto repair and other maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some automobile owners to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find automobile engineers or technicians who do not have the required finance to rent or construct a workshop opt for auto body or auto repair workshop business; they are known to move around or engage especially in small local shop, street and on some highways with their complete tool box looking for broken down cars, trucks and vans to fix.

•Our Target Market

Before starting O.K Naro auto body repair and maintenance workshop in Kumasi, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the kind of our combine services of auto body repair and maintenance workshop especially individuals, haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we will specifically market our services to;

•Banks, Insurance Companies and other related Financial Institutions

•Blue Chips Companies

•Corporate Organizations

•Manufacturers and Distributors

•Transport Companies

•Haulage Companies

•Individuals and households

•School with transportation system for students

Surviving in the business world as an auto body repair and maintenance company requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto body repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and body repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar automobile body repair, servicing and maintenance workshop, medium and the small ones as well.

What smaller or medium auto body, servicing and maintenance need to do to survive in the industry is to concentrate on providing automotive body repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels before bidding for big auto body repair, servicing and maintenance contracts from large corporations and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automotive body repair, maintenance and servicing industry means that you are not only expected to be able to deliver consistent and highly reliable auto body repair, servicing and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage is going to lie in the power of our team; our workforce. Out is going to have a team of certified and highly trained and experience automotive body repair and maintenance engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automotive body repair service industry. Aside from the synergy that will exists in the carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all the company employees will be well taken care of, and their welfare package will be among the best within our category (startups automotive body repair, maintenance and servicing businesses in Ghana) in the industry. we believes It will enable them to be more than willing to build the business and help deliver our set goals and achieve all its business aims and objectives.

MARKETING STRATEGY

O.K Naro Auto body Garage is mindful of the fact that there is stiffer competition in the automotive body repair , maintenance and servicing industry; hence the company is going to hire some of the best marketing experts to handle the way the services can reach to automobile users.

The sales and marketing team will be hired based on their vast experience in the automotive body repair, servicing and repair industry and they will be fed on a regular basis of the services so as to be well equipped to meet their targets and the overall business goal of O.K Naro Auto body garage.

The corporate goal is to grow O.K Naro Auto body Garage to become one of the best automotive body repair, servicing workshop brands in Ghana which is why we will mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Kumasi but also in other cities in Ghana where we intend opening our branches.

O.K Naro Auto body Garage is set to make use of the following marketing and sales strategies to attract clients;

•Introduce our auto body repair, maintenance workshop by sending introductory letters alongside our small brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations

•Promptness in bidding for auto body repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations

•Advertise our business in relevant business automobile magazines, and radio station.

•List our business on yellow pages ads (local directories)

•Attend local expos, seminars, and business fairs et al

•Create different packages for different category of clients in order to work with their budgets and still deliver excellent services

•Leverage on the internet to promote our business

•Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

O.K Naro auto body Garage, is going to be established with the aim of maximizing profits and also providing a moderate services in the auto body repair shop industry. We want to compete favorably with the leading auto body workshops in the Ghana which is why we going to put in place a competent quality assurance working team that will ensure that every repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

O.K Naro Auto body garage will generate income by offering the following auto body repair, maintenance and related services;

•Repairing dents and replacing of metal panels

•Repairing and replacing of damage suspension system parts(coil spring, leaf spring, steering rack etc)

•replacement of damage parts (head light, tail light, bumper, etc)

• performing of spraying (interior and exterior)

•Repairing and replacement of damage frames components (trucks, light vehicles etc)

•Repairing and replacing automotive exhaust systems

•Repairing and replacing of automotive brakes

•Performing automotive electric repairs

•Performing automotive wheel alignments

•Repairing automotive radiators

•Other repair and maintenance services

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to take their cars, vans, and trucks et al for general bodywork repair, routine maintenance and servicing or for outright repairs.

We are well positioned to take on the available market in the automotive body repair, servicing and maintenance services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month to a year of operations and grow our auto body repair, maintenance and service company to enviable heights.

We have been able to critically examine the automobile maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales and services forecast. The sales and services projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Ghana.

Below is the sales and services projection for O.K Naro Auto body Garage. It is based on the four targeted location of our business and of course the wide range of auto body repair and maintenance services and target market;

•First Year-: Ghc120,000.00

•Second Year-: Ghc180,000.00

•Third Year-: Ghc240,000.00

•Our Pricing Strategy

At O.K Naro Auto Body Garage we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in their fleet of automobiles for routine servicing, maintenance and bodyworks. In addition, we will also offer special discounted rate to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

•Payment Options

At O.K Naro Auto Body Garage, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

•Payment via check

•Payment via bank draft

•Payment via mobile money

•Payment with cash

In view of the above, we will choose banking platforms that will help us achieve our plans with little or no itches.

We will work with a brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Kumasi and other cities in Ghana where we intend opening our workshop which is why we will make provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise O.K Naro Auto body Garage;

•Place adverts on both print (newspapers and magazines) and electronic media platforms

•Sponsor relevant community based events / programs

•Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services

•Install our Bill Boards on strategic locations all around Kumasi

•Engage in road show from time to time in targeted neighborhoods

•Distribute our handbills

•Contact corporate organizations by calling them up and informing them of O.K Naro Auto body Garage and the services we offer

•List our auto body repair, servicing and maintenance business in local directories / yellow pages

•Advertise our auto body repair, servicing and maintenance business in our official website.

•Ensure that all our staff members wear our branded shirts and all our vehicles(towing truck, trucks etc) are well branded with our company logo et al.

Financial Projections and Costing

We believe in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place or constructing, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive. so start-up can either be low or high depending on your goals, vision and aspirations for the business.

The tools and equipment that will be used are not the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting an automobile body repair, maintenance and service workshop; it might differ in other countries due to the value of the money. However, this is what it would cost us to set up O.K Naro Auto Body Garage in Ghana;

•The budget for Liability insurance, permits and license will cost - GHc10,000.00

•Construction of the facility (inclusive) with land will cost - GHc250,000.00

•The amount required to purchase the needed tool box and repair equipment will cost -GHc193,264.33

•Equipping the office (computers, printers, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost -GHc19,900.00

•Amount required for purchase the needed software applications to run our business will cost -GHc600.00

•Amount need to pay bills and staff members for at least 2 to 3 months will cost – GHc20,000.00

•Additional Expenditure such as Business cards, leaflet, Signage, Adverts (newspaper and radio) and Promotions will cost -GHc18,000.00

•Additional Expenditure for start- up spraying and bodyworks materials will cost -GHc7,000.00

•Undiscovered Expenditure for the facility, tools, and equipment -GHc41,225.67

Going by the report from the market research and feasibility studies conducted, we will need about Ghc 550,000.00 set – up a Small scale but standard auto body repair, maintenance and servicing workshop in Ghana.

Generating Startup Capital for O.K Naro Auto Body Garage

O.K Naro Auto Body Garage is a business that will be owned and managed by Mr Abubakar Sahadu and Mr Amos Ansah Adomako, we are going to be the sole management of the business and we are really lacking personal capital, which is why we decided to restrict the sourcing of the start – up capital for the business to just three (3) major sources.

This is the where we intend generating our start – up capital;

•Generate a larger chunk of the startup capital from the bank (loan facility)

•Generate a large startup capital from an investor

•Generate a capital from partnership

Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting O.K Naro Auto body 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 our auto body repair, maintenance, and servicing a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.