Complete Business Plan for Fairly Used Car Business in Nigeria

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If you are about starting a used car dealership business, here is a Free Complete Business Plan for Fairly Used Car Business in Nigeria.

What is a Used Car Business All About?

As a matter of fact, used car business is all about selling used cars to willing buyers as a dealer, retailer, wholesaler or importer. This is the process of buying used cars locally, or imported at favourable prices and then resell at a good price that guarantees profits for them. 
In fact, for you to do this business you must have to conduct  feasibility studies and market research and   the next step is to write a good business plan. That’s  a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services etc.

Complete Business Plan for Fairly Used Car Business in Nigeria

The Executive Summary

If you are set, let’s produce your first business plan. In every business plan the first item on the booklet is the Executive Summary. But here, I want to jump it to other areas of the business plan. Click here to read about the Executive Summary.
Complete Business Plan for Fairly Used Car Business in Nigeria


Complete Business Plan for Fairly Used Car Business in Nigeria

Our Product Offering:

Drive As You Like Car Dealership Ltd, is in the used/Tokumbo car industry to service a wide range of clients and of course to make profit. This is the reason why we will ensure we go all the way to make available a wide range of used cars from  importers of  top car brands from the United States and other countries of the world.

Our Vision Statement

Our vision is to run a car dealership garage that deals majorly in used cars from high  brands of cars from  the United States of America and Europe.

Our Mission Statement

Our mission is to establish a world – class used car dealership garage business that will show case  a wide range of used cars from top car brands at affordable prices to the residence of   Abuja and other cities in Nigeria,  where we intend opening of chains of used cars dealership garages.

Our Business Structure

Our intention of starting a used car dealership business is to build a standard used car dealership garage first in Abuja, with  the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We have decided to hire only people that are qualified, honest, customer minded and are ready to work hard in  helping  us build a prosperous business that will benefit all the stakeholders. 
As a follow up, we have decided to hire qualified and competent hands to occupy the following positions:
  • Chief Executive Officer (Owner)
  • Garage Manager
  • Human Resources and Admin Manager
  • Sales and Marketing Manager
  • Information Technologist
  • Accountants/Cashiers
  • Sales Agents/Customer Services Executive


Complete Business Plan for Fairly Used Car Business in Nigeria

SWOT ANALYSIS

Our SWOT Analysis was conducted by a proven business consultant – Complete Full Marks Consultants Limited.
The summary of the SWOT analysis is as follows:
Strength:
These enhances our strength; good location, business model (we will operate both a physical garage and online store), varieties of payment options, and wide range of used cars from different top manufacturing brands. The combination of these with our excellent customer service culture will definitely count as a strong strength for Drive As You Like Car Dealership Ltd
Weakness:
A major weakness that may count against us is the fact that we are new in this business in Abuja. And that we don’t have the financial capacity to compete with multi – million Naira long established used car garages when it comes to price competition and market share.
Opportunities:
The fact that we are going to be operating our Used Car business in a major road close to the national secretariat Abuja, provides us with unlimited opportunities to sell our used cars to a large number of individuals and corporate organizations. Our  feasibility studies and market survey have already revealed to us who our potential clients will be and what they will be  looking for when they visit our used car garage.
Threat:
Just like any other business, one of the major threats that we are likely going to face is the present economic downturn in the country which limits cash flow. We are all aware that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the establishment of a new used car dealership outlet in the same location  in the near future. So also,  are unfavourable government policies and regulations which in this part of the world are never stable.  


Complete Business Plan for Fairly Used Car Business in Nigeria

MARKET ANALYSIS

Market Trends
Experts projected that in 2018, the used car business  industry is expected to profit from the recovering global economic conditions. This is seen in the growth  in Per capita income levels in the growing middle class in emerging economies  as Nigeria. It’s hoped that this will lead to increased demand for used cars which lead to increase in used car dealership garages turnover. 
A very important trend in this  industry is that most used car dealers are leveraging on online store to sell their cars to a larger market. 
Lastly, in recent time, the introduction of franchise and online car dealership garage makes it easier for a used car dealership garage to reach out to a larger market far beyond the areas where his physical store is located.

Our Target Market

In Nigeria, over 80% of those who use car patronize used cars and cuts across all strata of the population. In fact less than 5% of the population can afford brand new cars. Therefore our  target market for used car dealership garage business is all who can afford to pay for it. 
In view of that, we have positioned our used car dealership garage to service the entire civil servants in the federal secretariat Abuja and its environs where our franchise cum outlets will be located all in key towns  in the Abuja for now. Our market research and feasibility studies  have  givn us ideas of what our target market would be expecting from us.
Our target markets are therefore:
  • Government offices
  • Corporate organisations,
  • Senior Civil Servants
  • Middle class civil servants
  • Students
  • Middle Class Families
  • Low Earners

Complete Business Plan for Fairly Used Car Business in Nigeria

 SALES AND MARKETING STRATEGY
Marketing Strategy and Sales Strategy
Drive As You Like Car Dealership Ltd  will adopt the following sales and marketing approach to win customers over;
  • Open our used car dealership garage with a public party for all
  • Introduce our used car dealership garage by sending introductory letters,  brochure to offices, households, and other key stakeholders in and around Abuja
  • Ensure a stock of  wide range of used cars from different brands at all times.
  • Use attractive hand bills to create awareness and  give direction to our garage
  • Position our signage/flexi banners at strategic places around the Eagle Square
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on roadshows within the fderal secretariat during working hours  to create awareness for our used car garage
  • List our business and products on local directories
  • Leverage on the Social media to promote our business
  • Engage in direct one on one marketing and sales
  • Encourage the use of word of mouth marketing – talkshows

Publicity and Advertising Strategy

Notwithstanding  the fact that our used car dealership garage is well located, we will still go ahead to intensify publicity for the business.

Drive As You Like Car Dealership Ltd. has a long-term plan of opening outlets in various locations all around key cities in Nigeria which is one of the reasons why we will deliberately build our brand to be well accepted in Abuja before venturing out. This is also meant to effectively communicate our brand to the public.
Listed below  are the platforms we intend leveraging on to promote and advertise Drive As You Like Car Dealership Ltd.
  • Placing adverts on community based newspapers, radio and TV stations
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
  • Ensure that  we position our banners and billboards in strategic positions all around the federal secretariat.
  • Distribute our fliers and handbills in target areas in and around our Eagl Square upto Ministry of Finance building.
  • Advertise our used cars dealership business in our official website and employ strategies that will help us pull traffic to the site
  • All of our official cars and trucks are to be branded and we will ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.


Complete Business Plan for Fairly Used Car Business in Nigeria

Our Pricing Strategy

In addition to   quality, pricing is one of the key factors that gives leverage to used car dealership garages business globally. Normal consumers  go to places where they can get used cars at cheaper prices which is why big players in the industry will attract loads of clients.
We know that  we don’t have the capacity to compete with big Use Car dealers but we will ensure that the prices and quality of all the used cars  available in our garage are competitive with what is obtainable amongst other dealers within our level.

Payment Options

Here are the payment options that Drive As You Like Car Dealership Ltd will make available to her clients:
  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines
  • Payment via online bank transfer
  • Payment via cheques
  • Payment via mobile money transfer
  • Payment via bank draft

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Complete Business Plan for Fairly Used Car Business in Nigeria

FINANCIAL PLANS:

SOURCES OF OUR START-UP  CAPITAL:

Generating Start-up Capital for Drive As You Like Car Dealership Ltd.
Drive As You Like Car Dealership Ltd is a private registered business that is solely owned and financed by Enyinnaya Gift and her immediate family members. As a family business, she does not intend to welcome any external partner and that  is why she has decided to limit the sourcing of the startup capital to following  sources. 
These are the areas we intend generating our start-up capital:
  • Generate part of the startup capital from personal savings
  • Soft loans from family members and friends
  • Apply for loan from my Bank

As at now,  we have been able to generate about 120,000,000.00 (Personal savings), N72,000,000.00 soft loan from family members, and we are at the final stages of obtaining a loan facility of N19,000, 000.00 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount

Complete Business Plan for Fairly Used Car Business in Nigeria



Start-up  Expenditure (Budget)

These are the key areas where we will spend our start-up  capital;
  • The total fee for registering the business in Nigeria  – N120,000.00
  • Legal expenses for obtaining licenses and permits – N80,000.00
  • Setting up  accounting services (software, P.O.S machines and other software) –  N250,000.00
  • Marketing promotion expenses for the grand opening  – Flyer printing N15,000.00
  • The cost for hiring business consultant – N250,000.00
  • Insurance policy covering  general liability, workers’ compensation and property casualty at a total premium  of N200,000.00
  • The cost for payment of rent for 12 months N650,000.00
  • The cost for garage remodelling – 800,000.00
  • Other start-up expenses are stationery, phone and utility bills N120,000.00
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) –  N1,500,000
  • The cost for start-up inventory (stocking with a wide range of used cars from different manufacturing brands) – N200,000,000.00
  • Store equipment (cash register, security, ventilation, signage) – N1,800,000.00
  • Purchase and installation of CCTVs: N150,000
  • Purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): N1,500,000.00
  • The cost of launching a website: N200,000.00
  • The cost of the  opening party: N2,500,000.00
  • Miscellaneous: N350,000.00

We would need an estimated sum of N211,000,000.00 to successfully set up our standard used car dealership garage in Abuja, Nigeria

Other Requirements:

For this business plan to be complete there should be a Financial feasibility analysis indicting turnovers, purchses, and running cost for at least a three year forecast. Other things to be included may include a brekeven analysis, profit or loss account, a balance sheet and fund flow statement. These would require some professional inputs which CFMC Limited will provide for you.
Complete Full Marks Consultants Limited is an accounting, auditing, taxation and business consulting firm, that assists clients with business information; incorporate clients companies  and name registration at CAC Nigeria, prepares clients business plans, tax clearance certificates, and assist clients obtain mining licences.

For these information needs, call +234 8034347851 or send mail to cfmclimited@gmail.com.

Complete Business Plan for Fairly Used Car Business in Nigeria