BUSINESS PLAN REGISTRATION NUMBER: C
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- Alyson Long
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1 BUSINESS PLAN REGISTRATION NUMBER: C
2 EXECUTIVE SUMMARY The initial proposed idea of Riderz Avenue is to cater a service to the two wheels industries here in Singapore. Besides maintenance services, we aim to attain distributorship for reputable motorcycle parts and providing affordable service package to courier companies with safety compliance motorcycle to work with. As growth increases, another channel to reach customers which we will utilize is sales of new motorcycles and taking part/sponsors in motorcycle competitions in Asia to widen our horizons. The table below summarizes the amount of funds needed over a span of 3 years to establish the proposed small motorcycle business shop which will be used to construct the workplace, purchase of equipments and inventories and cover the annual operating expenses. YEARS AMOUNT NEEDED YEAR 0 SGD $220,000 YEAR 1 SGD $130,000 YEAR 2 SGD $100,000 YEAR 3 SGD $70,000
3 RENOVATION WORKS OF SHOP 3 BIKE SERVICE AREA OFFICE AREA STORAGE AREA BIKE WASH AREA EQUIPMENTS TO PURCHASE SNAP ON POWERTOOLS SET SNAP ON DIAGNOSTIC TOOLS SET TYRE BALANCING MACHINE TYRE FIXING MACHINE DISPLAY RACK FOR TYRES, LUBRICANT PRODUCTS INVENTORIES TO PURCHASE ENGINE LUBRICANTS (e.g. coolant, oil) SPARK PLUGS OIL FILTERS BRAKE PADS, FLUID CHAIN & SPROCKETS PRODUCTS TO HOUSE AS DISTRIBUTOR/DEALERS BODIS EXHAUST TECHNOLOGY CONTINENTAL TYRES BRISK/NOLOGY SPARK PLUG ANTIGRAVITY & MOTOBATT BATTERY PERFORMANCE FRICTION BRAKES NEXTUP & ANNITORI RL QUICKSHIFTER
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6 BUSINESS DESCRIPTION I am entering the two-wheeled industry because of my hobby-turned-love for motorcycle, performance parts and the need to provide quality workmanship and added option to the customer s choice. With numerous bike owners and shops, I ve gain the knowledge and experience I need to pursue my path to owning and operating my own humble shop. The shop will be located in Singapore. Riderz Avenue is still in it s developmental stage but plans and strategies have been established and awaits proper funding. I have set this up as a sole proprietor for the initial stage so as to steer clear of deviating influence and the need to stay firm on the path we re heading.
7 MARKETING STRATEGIES Part of our basic marketing tool is advertising in our local bike community forum (singaporebikes.com) with over 100,000 registered members locally and an average 500 users every 8 minutes. Social media sites have also proven success in marketing which we are taking into plans to reach to the mass. Our targets are the local bike community which have been a growing trend and as the business grows we are intending to reach the neighbouring countries bike community scene which have shown great enthusiasm through their purchase supports in the present market. Another channel we are hoping to get an opportunity at is bike exhibition event which in our local community will be held at an average twice yearly put together by different organizations.
8 SALES PROJECTIONS At Riderz Avenue, we are categorizing sales from 4 different channels over the complete set up of the business. GENERAL MOTORCYCLE MAINTENANCE DISPATCH MOTORCYCLES SERVICES ACCESSORIES & PERFORMANCE PARTS SALES OF NEW MOTORCYCLES
9 GENERAL MOTORCYCLE MAINTENANCE The general maintenance is our basic daily income which covers the sales/replacement of lubricant products, spark plugs, oil filter, wear & tear parts, tyres and labor cost of walk in customers to the shop. EST. MIN. DAILY EST. MIN. MONTHLY EST. MIN. YEARLY SGD 300 SGD 6000 SGD 72,000 COURIER MOTORCYCLES MANAGED SERVICES This service caters to dispatch companies that will engage us to provide maintenance to their dispatch motorcycles. From general maintenance to spare part replacements, ensuring their vehicles are in safe, reliable working conditions. Contract will indicate the type of servicing the companies would like us to provide for affordable amount per annum. EST. MIN. MONTHLY EST. MIN. YEARLY EST. SGD 3000 EST. SGD 36,000
10 ACCESSORIES & PERFORMANCE PARTS The revenue here will come from our sales as Distributor/Dealer of our housed products, locally and overseas. Ranging from specific wear & tear parts to performance parts. SALES OF NEW MOTORCYCLES EST. MIN. MONTHLY EST. MIN. YEARLY SGD 5000 SGD 60,000 This channel will be predicted as a special revenue. Most shops here locally will charge an interest rate of 3% - 7% interest annually for each new motorcycle sold. At Riderz Avenue, we charge a one time fee depending on the class (2B, 2A, 2) of motorcycle sold ranging from SGD250 to SGD600 for any period of installments, no early repayment fee, no hidden costs. As we share our earnings in this area to their savings, we are also providing convenience and ease of owning a motorcycle and not causing oppression to customers who are looking for motorcycles be it for going to work, job related or personal purposes. EST. MIN. MONTHLY EST. MIN. YEARLY MIN. SGD 3000 MIN. SGD 36,000
11 3 YEAR TARGET PROGRESS YEAR 0-1 The start up we are fully aware of it s crucial point hence we have taken the steps and plans to put in more hours and efforts into blooming the business within it s time frame. We will waste no time to market ourselves to create awareness of our presence to the local community and services we provide. We will also extend ourselves to meet with dispatch companies to commit in a Managed Services Contract to stabilize one part of our projected income revenue. We would also hope to secure distributor rights and dealership within these period to enter the upcoming year with more services. YEAR 1-2 At this point, we are looking to participate in part sponsorship to the recognized motorcycle competitions by the Singapore Motor Sports Association and Malaysia s Bike Race Series to widen our horizon and little venture studies in the Asia region of the market. We aim to secure recognition by the local community and our capabilities to provide a reliable service. YEAR 2-3 In the final part of our 3 year target progress, all four sales revenue are targeted to be established with firm up products and services. Collaboration with other partner shop is also the key at Riderz Avenue to contribute to more options in the market so we can continue our progress and move up the achievements as we go by as part of our commitment to the industry.
12 PROJECTED INVENTORIES REQUIRED OVER 3 YEARS INVENTORIES TO STOCK UP PROJECTED COST YEAR LUBRICANTS, BRAKE PADS, WEAR & TEAR PARTS, TYRES, EXHAUST PIPE ETC. SGD 80,000 0 SGD 55,000 1 SGD 30,000 2 SGD 20,000 3
13 PLANS OF OPERATION Riderz Avenue will kick start with setting up our shop, website, online accounts and purchase equipments needed to provide maintenance service to the mass. While the shop is up and running, we will apply for distributorship with various brand manufacturer as it is their requirement for applicants to have an existing shop. The idea is to have a shop which we can house the product and attain distributorship rights to distribute in Southeast Asia. With these, we are providing more options to the community where many have demanded change and new products to add to their choices.
14 COMPETITORS I personally believe that competitions/pressure are healthy and at the same time it keeps you on-the-go to provide better service/products to the mass and a good reminder as not to lack behind once the business is up and running. There are a few number of successful motorcycle shops here but however I noticed a growing demand for new reputable brands to be introduce and sustainable supply for existing demands in the motorcycle industry. Apart from competitors, there are other average numbers of motorcycle shop owners who are keen and are supportive of offering sponsorship and joint ventures in participation of motorsports competitions in Asia region and offering assistance to shops in need of support.
15 PROJECTED PERSONNEL REQUIRED OVER 3 YEARS POSITION JOB DESCRIPTION PROJECTED PAY (MONTHLY) HR Payroll, Billings, Accounts, Admin Matters SGD 2,200/- I.T Correspondent Online Admin/Sales Matters/Marketing SGD 1,700/- Sales Representative Sales, Marketing & Dispatch Personnel SGD 1,700/- Chief Mechanic Specialist/Repair/Service/Maintenance SGD 2,200/- Mechanic #1 Repair/Service/Maintenance SGD 1,700/- Mechanic #2 Repair/Service/Maintenance/Dispatch Bikes SGD 1,700/-
16 JOBSCOPE & OPERATIONS HR PERSONNEL HR will be handling billings to the company, payments by the customers, keeping the accounts in good standings and payroll of staffs. Apart from finances, the HR Personnel will also be in charge of employment matters, drafting contracts and terms. I.T SALES AND CORRESPONDENT The company will require an employee to oversee the online sales, enquiries and managing of our marketing sites locally and across the border (e.g. company s website, social network site, ebay, forums). The position will also hold an appointment of product specialist to provide assurance of the products to the mass. SALES REPRESENTATIVE The Sales Representative is our frontline from sales to maintenance services and after sales services. The position will also hold an appointment of product specialist to provide assurance of the products to the walk in customers and companies engaging our services. The personnel will also be performing deliveries/receiving of products and dispatch of spare parts duties.
17 CHIEF MECHANIC Our Chief Mechanic holds the appointment of specialized mechanic ranging from road to race experience in the motorcycle industry. The appointment holder will be responsible for service, repair and maintenance work on large displacement motorcycles and handling of high priority motorcycles in a demanding environment. MECHANIC #1 Mechanic #1 manages from small to average displacement motorcycles. Providing services, repairs and general maintenance to the motorcycles ensuring it is in lawfully safe, operational condition. MECHANIC #2 This appointment specializes in providing works to our corporate dispatch companies customers. Besides managing walk in customers motorcycles, Mechanic #2 priority is to work on the dispatch motorcycles ensuring the company vehicles are regularly maintained, adheres to the safety guidelines and are operationally ready for use.
18 PROJECTED BUDGETING RIDERZ AVENUE ESTIMATED BUDGETING ITEMS EST. PRICE REMARKS RENTAL OF SHOP >112SQM $2,500 PER MONTH UTILITY/PHONE/CABLE BILLS $1,550 PER MONTH RENOVATION WORKS OF SHOP $30,000 ONE TIME PAYMENT EMPLOYEE'S SALARIES $12,000 PER MONTH TOTAL: $46,050 EQUIPMENTS BUDGETING EST. PRICE IN TOTAL BRANDS QUANTITY TYRE FIXING MACHINE $3, SNAP ON 1 TYRE BALANCING MACHINE $3, SNAP ON 1 TOOL KITS/CHEST $7, SNAP ON 2 DIAGNOSTIC/CALIBRATION TOOLS $5, SNAP ON 2 PADDOCK STAND $ VARIES 5 PORTABLE STANDING FANS $ VARIES 4 WATER HOSE $50.00 VARIES 1 TABLE/CHAIR SETS $ VARIES 2 SETS AIR JET/TYRE PUMP HOSE $ VARIES 2 HOUSEKEEPING ITEMS $ VARIES VARIES TOTAL: $19,600.00
19 RIDERZ AVENUE ESTIMATED BUDGETING INVENTORIES BUDGETING EST. PRICE IN TOTAL BRANDS QUANTITY REMARKS TYRES $40, CONTINENTAL VARIES TO OBTAIN DISTRIBUTORSHIP ENGINE OIL $10, VARIES VARIES (DRUMS/BOTTLES) OIL FILTER $ K&N VARIES SPARK PLUGS $5, NGK, DENSO, BRISK VARIES BRAKE PADS $5, VARIES VARIES COOLANT $3, VARIES VARIES BRAKE FLUID $3, VARIES VARIES ASSORTED SCREWS, WASHER $ VARIES VARIES BATTERY $1, MOTOBATT, ANTIGRAVITY VARIES TO OBTAIN DEALERSHIP EXHAUST SYSTEM $50, BODIS VARIES TO OBTAIN DISTRIBUTORSHIP QUICKSHIFTERS $10, NEXTUP, ANNITORI RL VARIES TO OBTAIN DISTRIBUTORSHIP TOTAL: $128, ADMIN BUDGETING EST. PRICE IN TOTAL BRANDS QUANTITY REMARKS COMPUTERS/LAPTOP $3, VARIES 3 2 FOR ADMIN, 1 FOR DIAGNOSTICS TABLE/CHAIRS $1, VARIES 3 TABLES, 5 CHAIRS PRINTER/FAX/PHOTOCOPY MACHINE $ VARIES 1 TELEPHONES $ VARIES 3 MISCELLANEOUS ITEMS $ VARIES VARIES STATIONERIES TOTAL: $4,750.00
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