John

= =

rex's speed shop
= =



= = = Cover letter = = = = Cover page (page 105) =

= Title page (page 105) =

= Table of Contents (page 105) = = Statement of Purpose  = rex's speed shop will sell only reliable american made products at price everyone can afford. we want to be the biggest speed shop in the united states. We also want to expand our company to other countries.  =  Executive Summary (page 102)   =

= = =  Mission Statement=

at rex's we want to produce parts for cars that are reliabe and that everyone can afford. =      = =    Goals and Objectives    = at rex's speed shop we want to sell performance parts that everyone can afford and become one of the worlds leading car parts seller. I want to be able to start rex's and keep it running to pay for the other stores that will be coming. In 5 years i hope to take my company across the whole country. in 10 years I want to be able to take my company around the whole world. =   Management Team Plan (pageS 102, 306 - 317)    = the customer can come in and buy the product or they can buy it on the internet and i will ship it to them. =   Company Description (page 102)     = **Motivations**. the reason for starting rex's speed shop is to sell reliable american made parts that everyone can afford. my motivation for starting this company is because i like to work on cars. **Entrepreneurial Opportunity**. at this company we will sell affordable and reliable parts. we will also offer a store where the customer can come in and buy the products or they can go on the internet or over the phone to buy the product. we will also ship the parts to the customer. **Business Concept**. my company will sell car parts and make custom engines. we will market our products to people who race and fix cars. the product we will be selling is american made products. the customer is anyone who uses a car or fixes them. -What is the benefit you are providing? -  we sell affordable american made parts that are reliable. we also make custom engins. -How will you get the product or service to the customer? i will have a store that people can come in to buy the product and i will ship it to them. -When, how, and why the potential entrepreneur developed the idea for the business? i wanted to have a product that anyone can afford. i decided to make this when i was at summit. i liked how they had their shop set up
 * Service Providers. **      the people who will buy my product are anyone who fixes or has a car.
 * Answers the questions**:

=   Product/Service Plan (page 102)     =

at rex's speedshop we sell american made parts that are made right in our shops in america and they are reliable and affordable. we will also sell custom built engines. =    Products and Services. =          i will create my own parts. i will make them with a machine shop that is in a building close to the store. =      = =    Unique Selling Proposition. =      these products will be made in american and they will be reliable and affordable. =      = =    Competitive Products or Services. =      my competitors have a magazine that people can order out of. they also sell parts that are foreign =      = =    Product Development Milestones. .    =       i will let some of the car magizines test the parts on some of their cars for free. Industry Overview    (pageS 103 , 116 - 118) this industry is big. there are a lot of part stores in the us. the customers will be anyone who works on cars or uses them. = ** Projected Industry Sales and Profits **. =

the sales will be slow in the begining but when our name gets out there we will pick up quickly.

=**Competitive Set**. =

some direct competiters are summit or jegs. the indirect competitors are ebay.

=**External Environment**.= Describe external factors that may impact your economic sector. the prices for gas will make some people not want to come and see our products.

=**Product Life Cycle**= . we will want to have the part to last for about 20 to 30 years. then they come back for other parts.

=**Barriers to Entry**.= some barriers that rex's may face are the competitores they may have the customers loyalty. but when people find out how cheap and reliable our products are they will come to us. we will offer fre shipping for anything over five hundred dollars.

= = =   Market Analysis (page 103)     = =  Demographic Profile. =       rexs will target people from 16 to 70 to buy our parts. we will also target the people who go to races. =      = =     Psychographic Profile. =    we will target the people who go to races and rebuild or fix cars. =      = =   Customer Behaviors. =       they will be glad to buy an american made product that costs less than everywhere else. =    = =   Target Market Opportunity. =    we will market our products to the repair shops and to the average person to fix their cars. =   Competitive Analysis     = =  Direct and Indirect Competitors. =    they are big companies that have been established and they have the customers loyalty. =      = =     Value Proposition. =    i will research the competition on the internet and in their magazine they send out. =      = =   Strengths and Weaknesses. =     they have the loyalty of customers. but their weaknesses are my low prices. =    = =   Sustainable Competitive Advantage. =         the market is big there are multiple parts dealers. my companys advantage is our low prices and american made parts.  =    Marketing Plan **Total Product Experience**. =     At rexs we will sell only our parts that we make we will not go through any other parts maker. we will sell custom engins that people can buy. =   **Place Strategy**. =               rex's will be located in a nice area outside of the city but close enough so everyone could walk there. it will be in a undeveloped area so the property prices wont be expensive. we will use planes and semis to get our products to out customers. =**Promotion Strategy**= .          rex's will put out magazines that are sent to everyone who lives in the city and the states. we will also have a small commercial on tv during car shows. =**Promotion Plan**. =       i will have a tracker on the advertisement. so when someone call they will call the number on the billboard instead of the actual phone number. =    **Pricing Plan**. =         at rexs we will start our prices lower than the competitons. we will also sell our manufactured parts so they are reliable. =    Operational Plan (pages 104 - 105)      = =  **Location Criteria**. =  at rexs we want to be in a good area where everyone can come to the store. also we want to be in a underdeveloped area so the property cost is low. =**Facilities and Equipment**. = we will need to have a store where they show the products and a warehouse to store the parts. we will also need to have a factory to make the parts. we will need cnc machines and molds to make the parts.

=**Product Development Process**. =

we will custom make our parts we will buy cnc machines and molds to make the parts. we will also get our metal from recycled parts.

=**Operational Logistics**. =

at rex's we will not harrass the customer. we will not allow the employees to force the customer to buy our product.

= = =   ORGANIZATIONAL PLAN (page 105)    = =  Job Descriptions. =    i will be the owner and the manager. i will hire and fire everyone and i will tell every one what to do. =    = =   Human Resources. =    we will treat everyone the same way. we will not tolerate theft or sexual harasement. we will have a wheel chair ramp. we will allow our employees to use their cell phones only when they are on break and not around any machines. if you have a death in the family we will allow you to take off five days. if you are late three times i will fire you. if you have complaints then you can put them in a company complaint box. if you refuse to work when you are told you will be terminated and removed from the premisis by security. if you are hurt on the job we will give you a paid leave until you are allowed to come back. if you are to call in sick you must have a doctors excuse. =    = =   Legal Structure   = =    = = we will need to get permits to put in our building and warehouse. we will also need the get a permit to put our cnc machines in. we will also need to make sure our things are safe so we will need a goverment official to come in and inspect us. Insurance. =    our company will need full coverage insurance for the employees and the trucks and store. we will get our insurance through erie insurance. =    = =    Financial Plan (page 105)     = =  Financial Analysis   = .  we will have to keep our prices high so we can pay off all of the loans and prices of keeping the business running. instead of expanding we will have to keep our first building until we can afford to start a new location. then we will be able to use the profits from the first company to pay for the second. =  **Product Development Costs. **  =     the cost for making the products are just going to be the metal and the pay for the people making it. =  **Manufacturing Costs.**   =

we will have to pay for the metal and the workers time for making the parts. =  **Sales Revenue. **  =        at  rex's we will make 4,999,000 million dollars in the first year for sales. in three years we will make almost fifteen million dallars in sales. =**Cost of Goods Sold**= . the total cost of goods sold for the first three years is 306,000 dollars. this will be from the keeping the products in storage and buying the parts to make them. =  **Capital Equipment.**   = we will need to buy computers and machines to make the parts and to sell the parts. the computers will decrease in value because new technology will be out in the market. the machines will depreciate because they will be used parts and they may start to fall apart. =  **Salary and Wages.**   =

the salaries for the first three years will be 120,000 dollars. =**  Selling and Marketing Expenses   **= . the cost for selling and marketing our product for the first three years is 150,000 dollars for advertisement and 306,000 dollars for the selling expense. =  Operating Expenses. =    the operating price will be over 8 million dollars. we will have to pay for the machines and all the equipment. we will also have to pay for the price of the land we will use to sell our products and also the advertisements. =**  Other Expenses. **=    the other expenses will be the misccellaneous expenses. some of those expenses will be the company party in the summer to promote the employees social status. we will also use some of the money to offer bonuses to the sales man with the highest sales. =  **Assumptions. **  =     i thought of what rex's will need to operate properly and the other needs we may have to make sure rex's is a great work environment. =   Growth Plan (pages 105)     = **Growth Strategy**. some challenges i will have to over come are my competitors popularity and name. the customer may not want to go to a company they dont know. i will get my name out in to the world by offering my parts for test in some of the car magazines. we will have to expand and open new stores in the united states. we will grow by the money we will make. =   Contingency Plan (page 105)    = **Risks**. the risks for this business is bankruptcy also if someone gets hurt during the job we will have to worry about being sued. if that happens then we will have insurace for the worker to get the help he needs. also we will have a reward for anyone who doesnt get hurt for a year. if the company goes bankrupt then i will auction off all of the machines and computers and i will sell the buildings.  =  Appendix A   = balance sheet break even analysis Cash Flow Projection Initial Capitalization Plan Projected Income Statement Projected Operating Statement References Resume for each partner
 * Effects of Growth**.
 * [[file:rex's Cash Flow Statement.xls]]**
 * [[file:rex's Projected Income Statement.xls]]**
 * [[file:rex's Projected Operating Statement.xls]]**