Auto Accessories and Detailing

BUSINESS PLAN

J.E.M. VENTURES, INC.

342 Eastwind
Newport, MI 48299

The purpose of this business plan is to secure funding for opening an automobile accessories franchise. The franchise will offer a wide range of products and services for the care and protection of automobiles and for the convenience of their owners. The franchiser provides full training and support to franchisees in order to ensure a successful business venture.

executive summary
initial costs
the principals
management plan
marketing plan
history
the product
financials
supporting information

EXECUTIVE SUMMARY

J.E.M. Ventures, Inc., is seeking a loan and investment of $50,000,00 to be used toward the purchase of an Auto Extras franchise. This would include the franchise fee, inventory, equipment, and working capital. This money, in addition to the $30,000 to be invested by J.E.M. Ventures, will be sufficient financing through the growing phase so that the business can operate as an ongoing profitable enterprise.

The goal of an Auto Extras franchise is to take advantage of the concept that almost everyone has a vehicle and most people like to keep their vehicles clean and neat. Auto Extras is among the leading auto accessory and detailing franchisers in two states, with a very strong track record of supporting franchisees.

INITIAL COSTS

(per J.E.M. Ventures, Inc.)
Franchise Fee	$20,000.00
Inventory	7,500.00
Equipment	8,000.00
Furniture	1,000.00
Signs	3,000.00
Training	3,000.00
Grand Opening Advertising	3,500.00
Insurance	2,000.00
Leasehold Improvements	5,000.00
Security Deposit	2,000.00
Legal and Accounting	1,000.00
Working Capital	24,000.00
Total	$80,000.00

INITIAL COSTS

(per Auto Extras)
Franchise Fee	$20,000.00
Inventory	7,500.00
Equipment	10,000.00
Furniture	3,000.00
Signs	5,000.00
Training	3,000.00
Grand Opening Advertising	5,500.00
Insurance	2,000.00
Leasehold Improvements	12,000.00
Security Deposit	2,000.00
Legal and Accounting	2,000.00
Working Capital	24,000.00
Total	$96,000.00

THE PRINCIPALS

Ely Masters is presently employed as a warehouse manager for a large produce wholesaler in Newport. He oversees the shipping and receiving department, as well as doing the computerized inventory and billing for all production of the company.

Ely has also attended classes at Newport Business College. Course studies include Business Communications, Small Business Management, and Marketing.

Jeff Masters is presently employed at Cel-Phone, where he has been the Senior Maintenance Technician for the past three years. Jeff has attended Newport Institute of Technology and is certified in the field of H.V.A.C.

Both Ely's and Jeff's work ethic and past experience in the managing of personnel, scheduling, and budgeting will prove beneficial to this endeavor.

MANAGEMENT PLAN

In order to manage the business as an owner-operator, Ely Masters is going to resign from his position with Homefresh Foods. He will attend the 15-day training class held by Auto Extras before the opening of the store.

Jeff Masters will be an owner-operator also, but will only work at the store on a part-time basis. He will keep his employment at Cel-Phone in order to support his family and also to assist Ely with his personal financial needs.

One full-time employee will be hired prior to the opening of the store so that said employee may also attend the training class. Additional employees will be added as needed.

MARKETING PLAN

The location of the store and its visibility to the general public is a very important consideration in planning a marketing strategy. Therefore, site selection must be apriority. Additionally, traffic flow and traffic mix is also an important consideration in developing a plan.

Auto Extras franchisees share an established name and an aggressive advertising plan that includes radio and television advertisement, as well as advertising at many major sporting events. Ads are also placed in a number of major and community newspapers.

Franchisees also take advantage of the use of window and building signs. Many also send out direct mailings that include self-promotional materials to households in the community.

HISTORY

Auto Extras is in the business of automobile aftermarket, accessories, electronics, and glass replacement.

Auto Extras started in 1974 with 6 stores; currently, there are 33 franchises in Michigan and 2 franchises in Ohio. The company is projecting a total of 60 stores by Fall, 1996.

Auto Extras is a franchise system designed to put entrepreneurs in business with a moderate amount of up-front capital.

Franchisees have been successful in starting with basics and expanding as their sales and knowledge of their particular markets have increased. This reduced overhead has translated into a shorter, more direct route to profit.

The franchiser has also found it helpful to provide the following types of assistance:

Site location and store layout assistance;
fifteen days of training before store opening, and one or more weeks of training after store opening;
ongoing technical support;
marketing assistance;
advertising support;
equipment and inventory vendors.

THE PRODUCT

Auto Extras presents a diversified and well-balanced product mix to effectively respond to automotive customers' "wants and needs." Five products and services are the backbone of the business:

Glass Replacement: Auto glass is a product that customers always need, from a replacement windshield to a quick chip repair.

Security Systems: In today's world, car prices average around $20,000.00, and a car is stolen approximately every 28 seconds. Therefore, an auto security system is a necessary and in-demand product.

Cellular Phones: With just over 5% subscriber penetration, the cellular market is expected to triple by the end of the 1990s. Also, with phones and cellular service becoming more affordable, these are no longer only for the upscale customer.

Detailing: Auto Extras offers interior and exterior cleaning and protection products. These products and services are aimed at increasing a vehicle's value and protecting the vehicle's finish.

Accessories: Auto Extras offers a number of auto accessories, from running boards, tonneau covers, and sunroofs to a wide range of electronics, including remote car starters, car stereo systems, and personal pagers.

FINANCIALS

Personal Financials

Jeff Masters
*Assets:*	Newport Bank 300 Mariner Square Newport, MI 48299
	State Bank One Main Square St. George, MI 48290
*401K*	Cel-Phone retirement	$5,389.00
	One Touch Teleservice	$748.06
*Real Estate Value*		$110,000.00
*Liabilities:*	Liens on Real Estate: Newport Bank Note on Automobile: GMAC Mortgage: Blue Lake Mortgage Life Insurance: Cel-Phone: 3 times base salary Transamerica $ 100,000-Whole Life
*Income:*	Salary: Base $34,519.16+overtime Bonus: 10% of base salary & overtime

Ely Masters
*Assets:*	First Commercial Bank 250 Sterling Dr. St. George, MI 48290
*Real Estate Value*		$85,000.00
*Liabilities:*	Mortgage: Hillwood Mortgage P.O. Box 100 Indianapolis, IN 46240
	Automobile: National Bank of Newport P.O. Box 330 Newport, MI 48299

*Life Insurance:*	Central Life	$15,000
	Travelers Insurance (MMH)	$10,000
*Income:*
	Salary: Base $26,000 Bonus: $1,000 Spouse Income: $20,000

Sample Operations Budgets

360K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	6,300	6,300	8,100	8,100	8,880	7,200	8,100	7,200	8,100	8,100	6,300	7,200	90,000	0.25
Sales-Cellular	3,024	3,024	3,888	3,888	4,320	3,456	3,888	3,456	3,888	3,888	3,024	3,456	43,200	0.12
Sales-Security	6,804	6,804	8,748	8,748	9,720	7,776	8,748	7,776	8,748	8,748	6,804	7,776	97,200	0.27
Sales-Accessories	5,544	5,544	7,128	7,128	7,920	6,336	7,128	6,336	7,128	7,128	5,544	6,336	79,200	0.22
Sales-Detailing	3,276	3,276	4,212	4,212	4,680	3,744	4,212	3,744	4,212	4,212	3,276	3,744	46,800	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Income %	25,200	25,200	32,400	32,400	36,000	28,800	32,400	28,800	32,400	32,400	25,200	28,800	360,000
Cost of Sales
Cost - Auto Glass	2,520	2,520	3,240	3,240	3,552	2,880	3,240	2,880	3,240	3,240	2,520	2,880	36,000	0.40
Cost-Cellular	151	151	194	194	216	173	194	173	194	194	151	173	2,160	0.05
Cost - Security	2,381	2,381	3,062	3,062	3,402	2,722	3,062	2,722	3,062	3,062	2,381	2,722	34,020	0.35
Cost - Accessories	2,495	2,495	3,208	3,208	3,564	2,851	3,208	2,851	3,208	3,208	2,495	2,851	35,640	0.45
Cost - Detailing	164	164	211	211	234	187	211	187	211	211	164	187	2,340	0.05
Direct Labor	3,024	3,024	3,888	3,888	4,320	3,456	3,888	3,456	3,888	3,888	3,024	3,456	43,200	0.12
Total Cost of Sales	10,735	10,735	13,802	13,802	15,288	12,269	13,802	12,269	13,802	13,802	10,735	12,269	153,360	0.43
Gross Profit Margin	14,465	14,465	18,598	18,598	20,712	16,531	18,598	16,531	18,598	18,598	14,465	16,531	206,640	0.57
G& A Expenses
Salaries-Office	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Sales	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.07

Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	577	577	577	577	577	577	577	577	577	577	577	577	6,920	0.02
Outside services	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.05
Office supplies	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.10
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Utilities	375	375	375	375	375	375	375	375	375	375	375	375	4,500	0.01
Bldg & Grds Maintenance	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Automobile lease	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Automobile expense	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.01
Postage	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.01
Printing	100	100	100	100	100	100	100	100	100	100	100	100	1,200	0.00
Forms & Stationery	75	75	75	75	75	75	75	75	75	75	75	75	900	0.00
Telephone	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Advertising	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	30,000	0.08
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Entertainment	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00

Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00
Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.03
Total G & A Expenses	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	182,872	0.51
Operating Profit (Loss)	(775)	(775)	3,358	3,358	5,473	1,292	3,358	1,292	3,358	3,358	(775)	1,292	23,768	0.07

Break Even Point for:
Fixed Cost in Dollars			Break Even= 1 −Variable Costs in %
Total G & A Exp.			Break Even= 1 −Total Operating Exp in %
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $318,592.33 per year
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $26,549.36 per month
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $6,126.78 per week

460K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	8,050	8,050	10,350	10,350	11,347	9,200	10,350	9,200	10,350	10,350	8,050	9,200	115,000	0.25
Sales-Cellular	3,864	3,864	4,968	4,968	5,520	4,416	4,968	4,416	4,968	4,968	3,864	4,416	55,200	0.12
Sales-Security	8,694	8,694	11,178	11,178	12,420	9,936	11,178	9,936	11,178	11,178	8,694	9,936	124,200	0.27
Sales-Accessories	7,084	7,084	9,108	9,108	10,120	8,096	9,108	8,096	9,108	9,108	7,084	8,096	101,200	0.22
Sales-Detailing	4,186	4,186	5,382	5,382	5,980	4,784	5,382	4,784	5,382	5,382	4,186	4,784	59,800	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Net Income %	32,200	32,200	41,400	41,400	46,000	36,800	11,400	36,800	41,400	41,400	32,200	36,800	460,000

Cost of Sales
Cost - Auto Glass	3,220	3,220	4,140	4,140	4,539	3,680	4,140	3,680	4,140	4,140	3,220	3,680	46,000	0.40
Cost-Cellular	193	193	248	248	276	221	248	221	248	248	193	221	2,760	0.05
Cost - Security	3,043	3,043	3,912	3,912	4,347	3,478	3,912	3,478	3,912	3,912	3,043	3,478	43,470	035
Cost - Accessories	3,188	3,188	4,099	4,099	4,554	3,643	4,099	3,643	4,099	4,099	3,188	3,643	45,540	0.45
Cost - Detailing	209	209	269	269	299	239	269	239	269	269	209	239	2,990	0.05
Direct Labor	3,864	3,864	4,968	4,968	5,520	4,416	4,968	4,416	4,968	4,968	3,864	4,416	55,200	0.12
Total Cost of Sales	13,717	13,717	17,636	17,636	19,535	15,677	17,636	15,677	17,636	17,636	13,717	15,677	195,960	0.43
Gross Profit Margin	18,483	18,483	23,764	23,764	26,465	21,123	23,764	21,123	23,764	23,764	18,483	21,123	264,040	0.57
G & A Expenses
Salaries-Office	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Sales	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.06
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.06
Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	893	893	893	893	893	893	893	893	893	893	893	893	10,720	0.02
Subcontract labor	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Outside services	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.04
Office supplies	175	175	175	175	175	175	175	175	175	175	175	175	2,100	0.00
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.08
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.01
Utilities	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Bldg & Grds Maintenance	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Automobile lease	125	125	125	125	125	125	125	125	125	125	125	125	1,000	0.00
Automobile expense	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Postage	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01

Printing	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Forms & Stationery	92	92	92	92	92	92	92	92	92	92	92	92	1,100	0.00
Telephone	381	381	381	381	381	381	381	381	381	381	381	381	4,572	0.01
Advertising	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	40,000	0.09
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Entertainment	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00
Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00
Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.03
Total G & A Expenses	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	239,344	0.52
Operating Profit (Loss)	(1,463)	(1,463)	3,818	3,818	6,520	1,178	3,818	1,178	3,818	3,818	(1,463)	1,178	24,696	0.05

Break Even Point for:
Fixed Cost in Dollars			Break Even=1−Variable Costs in %
Total G & A Exp.			Break Even=1−-Total Operating Exp in %
	239,344	239,344
Break Even =	1−.43	0.574	Break Even $416,975.61 per year
	239,344	239,344

Break Even =	1−.43	0.574	Break Even $34,747.97 per month
	239,344	239,344
Break Even =	1−.43	0.574	Break Even $8,018.76 per week

600K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	10,500	10,500	13,500	13,500	14,799	12,000	13,500	12,000	13,500	13,500	10,500	12,000	150,000	0.25
Sales-Cellular	5,040	5,040	6,480	6,480	7,200	5,760	6,480	5,760	6,480	6,480	5,040	5,760	72,000	0.12
Sales-Security	11,340	11,340	14,580	14,580	16,200	12,960	14,580	12,960	14,580	14,580	11,340	12,960	162,000	0.27
Sales-Accessories	9,240	9,240	11,880	11,880	13,200	10,560	11,880	10,560	11,880	11,880	9,240	10,560	132,000	0.22
Sales-Detailing	5,460	5,460	7,020	7,020	7,800	6,240	7,020	6,240	7,020	7,020	5,460	6,240	78,000	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Income %	42,000	42,000	54,000	54,000	60,000	48,000	54,000	48,000	54,000	54,000	42,000	48,000	600,000
Cost of Sales
Cost - Auto Glass	4,200	4,200	5,400	5,400	5,920	4,800	5,400	4,800	5,400	5,400	4,200	4,800	60,000	0.40
Cost-Cellular	252	252	324	324	360	288	324	288	324	324	252	288	3,600	0.05
Cost - Security	3,969	3,969	5,103	5,103	5,670	4,536	5,103	4,536	5,103	5,103	3,969	4,536	56,700	0.35
Cost - Accessories	4,158	4,158	5,346	5,346	5,940	4,752	5,346	4,752	5,346	5,346	4,158	4,752	59,400	0.45
Cost-Detailing	273	273	351	351	390	312	351	312	351	351	273	312	3,900	0.05
Direct Labor	5,040	5,040	6,480	6,480	7,200	5,760	6,480	5,760	6,480	6,480	5,040	5,760	72,000	0.12
Total Cost of Sales	17,892	17,892	23,004	23,004	25,480	20,448	23,004	20,448	23,004	23,004	17,892	20,448!	255,600	0.43
Gross Profit Margin	24,108	24,108	30,996	30,996	34,520	27,552	30,996	27,552	30,996	30,996	24,108	27,552	344,400	0.57
G & A Expenses
Salaries - Office	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Salaries - Sales	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.04
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.04
Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	13,000	0.02

Subcontract labor	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Outside services	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.03
Office supplies	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.06
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.00
Utilities	542	542	542	542	542	542	542	542	542	542	542	542	6,500	0.01
Bldg & Grds Maintenance	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Automobile lease	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Automobile expense	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Postage	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Printing	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Forms & Stationery	92	92	92	92	92	92	92	92	92	92	92	92	1,100	0.00
Telephone	381	381	381	381	381	381	381	381	381	381	381	381	4,572	0.01
Advertising	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	40,000	0.07
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Entertainment	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00
Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00

Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.00
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.00
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.02
Total G & A Expenses	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	252,524	0.42
Operating Profit (Loss)	3,064	3,064	9,952	9,952	13,477	6,508	9,952	6,508	9,952	9,952	3,064	6,508	91,876	0.15

Break Even Point for:
Fixed Cost in Dollars			Break Even=1 −Variable Costs In %
Total G & A Exp.			Break Even=1 − Total Operating Exp in %
	252524	252524
Break Even =	1−.00	0.574	Break Even $439,937.28 per year
	252524	252524
Break Even=	1−.00	0.574	Break Even $36,661.44 permonth
	252524	252524
Break Even=	1−.00	0.574	Break Even $8,460.33 per week

SUPPORTING INFORMATION

Technical & Financial Training Schedule

Week 1
Monday	Tuesday	Wednesday	Thursday	Friday
Intro to Auto Extras	Auto Glass Sales	Auto Glass Tech	Security Tech	Auto Extras Financial
Products/Services
"What do we sell?"		Windshield	Install 2 Alarms	Royalty Reports
	Insurance Claims	Door Glass	950 and Hawk?	Forms
Detailing Sales	Quoting	Chip Repair		Necessary Info
	Manual Look-up		Basics
Protection
Chemicals
Procedures, etc.
		Discuss warranty
	Computer Look-up	Prep Alarm Tech	Security Sales	Financial planning
Perform an	Price Quoting
environmental		Tools	Product Knowledge	I Can Plan
package on a car		Differences	Basic Features
	Tooling	Parts	Comparisons
	Urethane

Monday	Tuesday	Wednesday	Thursday	Friday
Discuss Warranty	General Procedure
Quiz	Quiz	Quiz	Quiz	Quiz

Week 2
Security Sales	Communication	Communication	Accessories Tech	Computer
	Sales	Sales
Keyless			Install Sunroof	Invoicing
Starters	Cellular Product	Cellular
	Knowledge	Other
More Product		Fraud	Running Boards
Knowledge	Service
		Pagers - PK
	Current Promo	Pricing
		Contracts
Security Tech	Service Aps	Communication	Accessories Tech	Computer
			Install: Tonneau Cover
Install loaded alarm	Instant Credit	Install phone if		A/R
and a remote start		possible	Mud Flaps	A/P
	Programming		Bedliner	G/L
	Handset	Activate 1 phone	DEG	Checkbook
	Chip	Activate 1 pager
	Book		Review Tech Work	Review
Quiz	Quiz	Quiz	Quiz	Quiz

Week 3
Accessory Sales	Merchandising	Install Your Choice	Sales Your Choice	Course Test
Sunroofs	Showroom	Class picks product	Class picks product	60 minutes
Running Bds	Displays	to install and	to discuss and get	75-100 questions
Tonneau Covers	Pricing	participates	more product
Bedliners	Set-up, etc.	directly in	knowledge/features
		installation	and benefits
				Review Test
Accessory Sales	Advertising	Install Your Choice	Financial/Computer	Open Discussion
			Your Choice
	Review current	Class picks product
Any Sales		to install and	Class picks area in	Course Evaluation
Review	Auto One	participates	financial/computer
	Local	directly in	study to practice or
	Direct Mail	installation	learn more about	Certificates/Awards
Quiz	Quiz

Auto Accessories and Detailing: J.E.M. Ventures, Inc.

views updated

Auto Accessories and Detailing

BUSINESS PLAN

J.E.M. VENTURES, INC.

342 Eastwind
Newport, MI 48299

executive summary
initial costs
the principals
management plan
marketing plan
history
the product
financials
supporting information

EXECUTIVE SUMMARY

INITIAL COSTS

(per J.E.M. Ventures, Inc.)
Franchise Fee	$20,000.00
Inventory	7,500.00
Equipment	8,000.00
Furniture	1,000.00
Signs	3,000.00
Training	3,000.00
Grand Opening Advertising	3,500.00
Insurance	2,000.00
Leasehold Improvements	5,000.00
Security Deposit	2,000.00
Legal and Accounting	1,000.00
Working Capital	24,000.00
Total	$80,000.00

INITIAL COSTS

(per Auto Extras)
Franchise Fee	$20,000.00
Inventory	7,500.00
Equipment	10,000.00
Furniture	3,000.00
Signs	5,000.00
Training	3,000.00
Grand Opening Advertising	5,500.00
Insurance	2,000.00
Leasehold Improvements	12,000.00
Security Deposit	2,000.00
Legal and Accounting	2,000.00
Working Capital	24,000.00
Total	$96,000.00

THE PRINCIPALS

Ely has also attended classes at Newport Business College. Course studies include Business Communications, Small Business Management, and Marketing.

Both Ely's and Jeff's work ethic and past experience in the managing of personnel, scheduling, and budgeting will prove beneficial to this endeavor.

MANAGEMENT PLAN

One full-time employee will be hired prior to the opening of the store so that said employee may also attend the training class. Additional employees will be added as needed.

MARKETING PLAN

Franchisees also take advantage of the use of window and building signs. Many also send out direct mailings that include self-promotional materials to households in the community.

HISTORY

Auto Extras is in the business of automobile aftermarket, accessories, electronics, and glass replacement.

Auto Extras started in 1974 with 6 stores; currently, there are 33 franchises in Michigan and 2 franchises in Ohio. The company is projecting a total of 60 stores by Fall, 1996.

Auto Extras is a franchise system designed to put entrepreneurs in business with a moderate amount of up-front capital.

The franchiser has also found it helpful to provide the following types of assistance:

Site location and store layout assistance;
fifteen days of training before store opening, and one or more weeks of training after store opening;
ongoing technical support;
marketing assistance;
advertising support;
equipment and inventory vendors.

THE PRODUCT

Auto Extras presents a diversified and well-balanced product mix to effectively respond to automotive customers' "wants and needs." Five products and services are the backbone of the business:

Glass Replacement: Auto glass is a product that customers always need, from a replacement windshield to a quick chip repair.

Detailing: Auto Extras offers interior and exterior cleaning and protection products. These products and services are aimed at increasing a vehicle's value and protecting the vehicle's finish.

FINANCIALS

Personal Financials

Jeff Masters
*Assets:*	Newport Bank 300 Mariner Square Newport, MI 48299
	State Bank One Main Square St. George, MI 48290
*401K*	Cel-Phone retirement	$5,389.00
	One Touch Teleservice	$748.06
*Real Estate Value*		$110,000.00
*Liabilities:*	Liens on Real Estate: Newport Bank Note on Automobile: GMAC Mortgage: Blue Lake Mortgage Life Insurance: Cel-Phone: 3 times base salary Transamerica $ 100,000-Whole Life
*Income:*	Salary: Base $34,519.16+overtime Bonus: 10% of base salary & overtime

Ely Masters
*Assets:*	First Commercial Bank 250 Sterling Dr. St. George, MI 48290
*Real Estate Value*		$85,000.00
*Liabilities:*	Mortgage: Hillwood Mortgage P.O. Box 100 Indianapolis, IN 46240
	Automobile: National Bank of Newport P.O. Box 330 Newport, MI 48299

*Life Insurance:*	Central Life	$15,000
	Travelers Insurance (MMH)	$10,000
*Income:*
	Salary: Base $26,000 Bonus: $1,000 Spouse Income: $20,000

Sample Operations Budgets

360K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	6,300	6,300	8,100	8,100	8,880	7,200	8,100	7,200	8,100	8,100	6,300	7,200	90,000	0.25
Sales-Cellular	3,024	3,024	3,888	3,888	4,320	3,456	3,888	3,456	3,888	3,888	3,024	3,456	43,200	0.12
Sales-Security	6,804	6,804	8,748	8,748	9,720	7,776	8,748	7,776	8,748	8,748	6,804	7,776	97,200	0.27
Sales-Accessories	5,544	5,544	7,128	7,128	7,920	6,336	7,128	6,336	7,128	7,128	5,544	6,336	79,200	0.22
Sales-Detailing	3,276	3,276	4,212	4,212	4,680	3,744	4,212	3,744	4,212	4,212	3,276	3,744	46,800	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Income %	25,200	25,200	32,400	32,400	36,000	28,800	32,400	28,800	32,400	32,400	25,200	28,800	360,000
Cost of Sales
Cost - Auto Glass	2,520	2,520	3,240	3,240	3,552	2,880	3,240	2,880	3,240	3,240	2,520	2,880	36,000	0.40
Cost-Cellular	151	151	194	194	216	173	194	173	194	194	151	173	2,160	0.05
Cost - Security	2,381	2,381	3,062	3,062	3,402	2,722	3,062	2,722	3,062	3,062	2,381	2,722	34,020	0.35
Cost - Accessories	2,495	2,495	3,208	3,208	3,564	2,851	3,208	2,851	3,208	3,208	2,495	2,851	35,640	0.45
Cost - Detailing	164	164	211	211	234	187	211	187	211	211	164	187	2,340	0.05
Direct Labor	3,024	3,024	3,888	3,888	4,320	3,456	3,888	3,456	3,888	3,888	3,024	3,456	43,200	0.12
Total Cost of Sales	10,735	10,735	13,802	13,802	15,288	12,269	13,802	12,269	13,802	13,802	10,735	12,269	153,360	0.43
Gross Profit Margin	14,465	14,465	18,598	18,598	20,712	16,531	18,598	16,531	18,598	18,598	14,465	16,531	206,640	0.57
G& A Expenses
Salaries-Office	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Sales	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.07

Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	577	577	577	577	577	577	577	577	577	577	577	577	6,920	0.02
Outside services	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.05
Office supplies	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.10
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Utilities	375	375	375	375	375	375	375	375	375	375	375	375	4,500	0.01
Bldg & Grds Maintenance	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Automobile lease	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Automobile expense	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.01
Postage	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.01
Printing	100	100	100	100	100	100	100	100	100	100	100	100	1,200	0.00
Forms & Stationery	75	75	75	75	75	75	75	75	75	75	75	75	900	0.00
Telephone	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Advertising	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	2,500	30,000	0.08
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Entertainment	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00

Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00
Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.03
Total G & A Expenses	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	15,239	182,872	0.51
Operating Profit (Loss)	(775)	(775)	3,358	3,358	5,473	1,292	3,358	1,292	3,358	3,358	(775)	1,292	23,768	0.07

Break Even Point for:
Fixed Cost in Dollars			Break Even= 1 −Variable Costs in %
Total G & A Exp.			Break Even= 1 −Total Operating Exp in %
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $318,592.33 per year
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $26,549.36 per month
	182,872	182,872
Break Even =	1 − .43	0.574	Break Even $6,126.78 per week

460K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	8,050	8,050	10,350	10,350	11,347	9,200	10,350	9,200	10,350	10,350	8,050	9,200	115,000	0.25
Sales-Cellular	3,864	3,864	4,968	4,968	5,520	4,416	4,968	4,416	4,968	4,968	3,864	4,416	55,200	0.12
Sales-Security	8,694	8,694	11,178	11,178	12,420	9,936	11,178	9,936	11,178	11,178	8,694	9,936	124,200	0.27
Sales-Accessories	7,084	7,084	9,108	9,108	10,120	8,096	9,108	8,096	9,108	9,108	7,084	8,096	101,200	0.22
Sales-Detailing	4,186	4,186	5,382	5,382	5,980	4,784	5,382	4,784	5,382	5,382	4,186	4,784	59,800	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Net Income %	32,200	32,200	41,400	41,400	46,000	36,800	11,400	36,800	41,400	41,400	32,200	36,800	460,000

Cost of Sales
Cost - Auto Glass	3,220	3,220	4,140	4,140	4,539	3,680	4,140	3,680	4,140	4,140	3,220	3,680	46,000	0.40
Cost-Cellular	193	193	248	248	276	221	248	221	248	248	193	221	2,760	0.05
Cost - Security	3,043	3,043	3,912	3,912	4,347	3,478	3,912	3,478	3,912	3,912	3,043	3,478	43,470	035
Cost - Accessories	3,188	3,188	4,099	4,099	4,554	3,643	4,099	3,643	4,099	4,099	3,188	3,643	45,540	0.45
Cost - Detailing	209	209	269	269	299	239	269	239	269	269	209	239	2,990	0.05
Direct Labor	3,864	3,864	4,968	4,968	5,520	4,416	4,968	4,416	4,968	4,968	3,864	4,416	55,200	0.12
Total Cost of Sales	13,717	13,717	17,636	17,636	19,535	15,677	17,636	15,677	17,636	17,636	13,717	15,677	195,960	0.43
Gross Profit Margin	18,483	18,483	23,764	23,764	26,465	21,123	23,764	21,123	23,764	23,764	18,483	21,123	264,040	0.57
G & A Expenses
Salaries-Office	0	0	0	0	0	0	0	0	0	0	0	0	0	0.00
Salaries - Sales	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.06
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.06
Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	893	893	893	893	893	893	893	893	893	893	893	893	10,720	0.02
Subcontract labor	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Outside services	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.04
Office supplies	175	175	175	175	175	175	175	175	175	175	175	175	2,100	0.00
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.08
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.01
Utilities	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Bldg & Grds Maintenance	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Automobile lease	125	125	125	125	125	125	125	125	125	125	125	125	1,000	0.00
Automobile expense	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Postage	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01

Printing	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Forms & Stationery	92	92	92	92	92	92	92	92	92	92	92	92	1,100	0.00
Telephone	381	381	381	381	381	381	381	381	381	381	381	381	4,572	0.01
Advertising	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	40,000	0.09
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Entertainment	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00
Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00
Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.01
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.03
Total G & A Expenses	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	19,945	239,344	0.52
Operating Profit (Loss)	(1,463)	(1,463)	3,818	3,818	6,520	1,178	3,818	1,178	3,818	3,818	(1,463)	1,178	24,696	0.05

Break Even Point for:
Fixed Cost in Dollars			Break Even=1−Variable Costs in %
Total G & A Exp.			Break Even=1−-Total Operating Exp in %
	239,344	239,344
Break Even =	1−.43	0.574	Break Even $416,975.61 per year
	239,344	239,344

Break Even =	1−.43	0.574	Break Even $34,747.97 per month
	239,344	239,344
Break Even =	1−.43	0.574	Break Even $8,018.76 per week

600K Sales
	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec	Total	YTD %
Income
Sales-Auto Glass	10,500	10,500	13,500	13,500	14,799	12,000	13,500	12,000	13,500	13,500	10,500	12,000	150,000	0.25
Sales-Cellular	5,040	5,040	6,480	6,480	7,200	5,760	6,480	5,760	6,480	6,480	5,040	5,760	72,000	0.12
Sales-Security	11,340	11,340	14,580	14,580	16,200	12,960	14,580	12,960	14,580	14,580	11,340	12,960	162,000	0.27
Sales-Accessories	9,240	9,240	11,880	11,880	13,200	10,560	11,880	10,560	11,880	11,880	9,240	10,560	132,000	0.22
Sales-Detailing	5,460	5,460	7,020	7,020	7,800	6,240	7,020	6,240	7,020	7,020	5,460	6,240	78,000	0.13
Miscellaneous Income	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Net Income %	42,000	42,000	54,000	54,000	60,000	48,000	54,000	48,000	54,000	54,000	42,000	48,000	600,000
Cost of Sales
Cost - Auto Glass	4,200	4,200	5,400	5,400	5,920	4,800	5,400	4,800	5,400	5,400	4,200	4,800	60,000	0.40
Cost-Cellular	252	252	324	324	360	288	324	288	324	324	252	288	3,600	0.05
Cost - Security	3,969	3,969	5,103	5,103	5,670	4,536	5,103	4,536	5,103	5,103	3,969	4,536	56,700	0.35
Cost - Accessories	4,158	4,158	5,346	5,346	5,940	4,752	5,346	4,752	5,346	5,346	4,158	4,752	59,400	0.45
Cost-Detailing	273	273	351	351	390	312	351	312	351	351	273	312	3,900	0.05
Direct Labor	5,040	5,040	6,480	6,480	7,200	5,760	6,480	5,760	6,480	6,480	5,040	5,760	72,000	0.12
Total Cost of Sales	17,892	17,892	23,004	23,004	25,480	20,448	23,004	20,448	23,004	23,004	17,892	20,448!	255,600	0.43
Gross Profit Margin	24,108	24,108	30,996	30,996	34,520	27,552	30,996	27,552	30,996	30,996	24,108	27,552	344,400	0.57
G & A Expenses
Salaries - Office	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Salaries - Sales	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.04
Salaries - Management	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	2,167	26,000	0.04
Casual Labor	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Payroll Taxes	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	1,083	13,000	0.02

Subcontract labor	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Outside services	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Royalties	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	1,500	18,000	0.03
Office supplies	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Rent	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	3,000	36,000	0.06
Repairs & Maintenance	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Uniforms	200	200	200	200	200	200	200	200	200	200	200	200	2,400	0.00
Utilities	542	542	542	542	542	542	542	542	542	542	542	542	6,500	0.01
Bldg & Grds Maintenance	500	500	500	500	500	500	500	500	500	500	500	500	6,000	0.01
Automobile lease	125	125	125	125	125	125	125	125	125	125	125	125	1,500	0.00
Automobile expense	417	417	417	417	417	417	417	417	417	417	417	417	5,000	0.01
Postage	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Printing	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Forms & Stationery	92	92	92	92	92	92	92	92	92	92	92	92	1,100	0.00
Telephone	381	381	381	381	381	381	381	381	381	381	381	381	4,572	0.01
Advertising	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	3,333	40,000	0.07
Membership	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Dues & Subscriptions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Office Equipment Rental	25	25	25	25	25	25	25	25	25	25	25	25	300	0.00
Contributions	17	17	17	17	17	17	17	17	17	17	17	17	200	0.00
Educational	167	167	167	167	167	167	167	167	167	167	167	167	2,000	0.00
Entertainment	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Legal & Accounting	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Bank Charges	267	267	267	267	267	267	267	267	267	267	267	267	3,200	0.01
Interest expense	8	8	8	8	8	8	8	8	8	8	8	8	100	0.00
Licenses & fees	33	33	33	33	33	33	33	33	33	33	33	33	400	0.00

Property tax	333	333	333	333	333	333	333	333	333	333	333	333	4,000	0.01
Property tax - personal	83	83	83	83	83	83	83	83	83	83	83	83	1,000	0.00
Insurance - general	250	250	250	250	250	250	250	250	250	250	250	250	3,000	0.01
Insurance - Medical	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.00
Insurance - Workers Comp.	208	208	208	208	208	208	208	208	208	208	208	208	2,500	0.00
Employee Benefits	42	42	42	42	42	42	42	42	42	42	42	42	500	0.00
Equipment lease	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	1,046	12,552	0.02
Total G & A Expenses	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	21,044	252,524	0.42
Operating Profit (Loss)	3,064	3,064	9,952	9,952	13,477	6,508	9,952	6,508	9,952	9,952	3,064	6,508	91,876	0.15

Break Even Point for:
Fixed Cost in Dollars			Break Even=1 −Variable Costs In %
Total G & A Exp.			Break Even=1 − Total Operating Exp in %
	252524	252524
Break Even =	1−.00	0.574	Break Even $439,937.28 per year
	252524	252524
Break Even=	1−.00	0.574	Break Even $36,661.44 permonth
	252524	252524
Break Even=	1−.00	0.574	Break Even $8,460.33 per week

SUPPORTING INFORMATION

Technical & Financial Training Schedule

Week 1
Monday	Tuesday	Wednesday	Thursday	Friday
Intro to Auto Extras	Auto Glass Sales	Auto Glass Tech	Security Tech	Auto Extras Financial
Products/Services
"What do we sell?"		Windshield	Install 2 Alarms	Royalty Reports
	Insurance Claims	Door Glass	950 and Hawk?	Forms
Detailing Sales	Quoting	Chip Repair		Necessary Info
	Manual Look-up		Basics
Protection
Chemicals
Procedures, etc.
		Discuss warranty
	Computer Look-up	Prep Alarm Tech	Security Sales	Financial planning
Perform an	Price Quoting
environmental		Tools	Product Knowledge	I Can Plan
package on a car		Differences	Basic Features
	Tooling	Parts	Comparisons
	Urethane

Monday	Tuesday	Wednesday	Thursday	Friday
Discuss Warranty	General Procedure
Quiz	Quiz	Quiz	Quiz	Quiz

Week 2
Security Sales	Communication	Communication	Accessories Tech	Computer
	Sales	Sales
Keyless			Install Sunroof	Invoicing
Starters	Cellular Product	Cellular
	Knowledge	Other
More Product		Fraud	Running Boards
Knowledge	Service
		Pagers - PK
	Current Promo	Pricing
		Contracts
Security Tech	Service Aps	Communication	Accessories Tech	Computer
			Install: Tonneau Cover
Install loaded alarm	Instant Credit	Install phone if		A/R
and a remote start		possible	Mud Flaps	A/P
	Programming		Bedliner	G/L
	Handset	Activate 1 phone	DEG	Checkbook
	Chip	Activate 1 pager
	Book		Review Tech Work	Review
Quiz	Quiz	Quiz	Quiz	Quiz

Week 3
Accessory Sales	Merchandising	Install Your Choice	Sales Your Choice	Course Test
Sunroofs	Showroom	Class picks product	Class picks product	60 minutes
Running Bds	Displays	to install and	to discuss and get	75-100 questions
Tonneau Covers	Pricing	participates	more product
Bedliners	Set-up, etc.	directly in	knowledge/features
		installation	and benefits
				Review Test
Accessory Sales	Advertising	Install Your Choice	Financial/Computer	Open Discussion
			Your Choice
	Review current	Class picks product
Any Sales		to install and	Class picks area in	Course Evaluation
Review	Auto One	participates	financial/computer
	Local	directly in	study to practice or
	Direct Mail	installation	learn more about	Certificates/Awards
Quiz	Quiz