BUSINESS PLAN

MAJOR IN AUTOMOTIVE 3F

NAME: KYLE REYAN PADRIGO

CLARENCE CEPEDA
SAMBOY LAPPAY
CARL BUENAVENTURA
ROVIC TAGUINOD
JHADE LAMUSAO
TABLE OF CONTENTS

THE PROPOSED BUSINESS (Basic and Significant Information)

A. Business Title…………………………………………………………………………………………….1
B. Business Location……………………………………………………………………………………….1 C
. Names of Proponents………………………………………………………………………………….1 D.
Business Status………………………………………………………………………………………….1
E. Background/Rationale…………………………………………………………………………………2

.THE PROPOSED BUSINESS (Presentation and Analysis of Data)

A. Description……………………………………………………………………………………………….3
B. Market Study…………………………………………………………………………………………….3
C. Technical Study…………………………………………………………………………………………5
D. Organization and Management Study………………………………………………………….9
E. Financing and Financial Study……………………………………………………………………11
F. Socio -E conomic Study………………………………………………………………………………14

EVALUATION (Findings, Conclusion, and Recommendation)

A. Summary of Findings and Conclusion …………………………………………………………16
B. Recommendation …………………………………………………………………………………….17
 1. PART 1 - THE PROPOSED BUSINESS (Basic and Significant
Information)

A. Business Title: AUTOTECH PARTS AND SERVICE

B. Business Location:45 Narag St. Linao East, Tuguegarao City,
Cagayan
C. Name of Proponent:
Kyle Reyan Padrigo
Clarence Cepeda
Samboy Lappay
Carl Buenaventura
Rovic Taguinod

D. Business Status: The New Business Venture

E. Background/Rationale
 The automotive industry is evolving rapidly, driven by technological
advancements, increased vehicle ownership, and the growing
demand for efficient, durable, and sustainable transportation. With
the rise in car production and aftermarket services, there is a
significant and consistent demand for quality auto parts and
accessories.
 AutoTech Parts was established to meet this growing need by
providing reliable, affordable, and innovative automotive
components. The business is positioned to serve both retail
customers and commercial clients, including garages, dealerships,
and fleet operators. By sourcing high-quality parts and leveraging
modern inventory and delivery systems, AutoTech Parts ensures
quick access and excellent customer service.
 The rationale behind launching AutoTech Parts lies in addressing
market gaps such as inconsistent product quality, limited availability
of specialized parts, and slow delivery services. The company aims
to build trust and loyalty by offering genuine parts, competitive
pricing, and expert support, ultimately contributing to the longevity
and performance of customers’ vehicles.
2. PART II – THE PROPOSED BUSINESS (Presentation and Analysis of
Data)

A. Description
Vision
To be the global leader in innovative automotive technolog solutions,
driving the future of mobility with excellence and sustainability.
Mission
We aim to serve the global automotive community with reliable,
innovative, and cost-effective parts, backed by exceptional customer
service and continuous improvement.
Goal
1. Enhance Product Quality and Reliability
Develop and deliver automotive parts that exceed industry standards for
performance and durability.
2. Expand Global Market Presence
Enter new markets and establish distribution channels in key international
regions.
3. Foster Innovation and R&D
Invest in advanced technology and research to create next-generation
automotive solutions.
4. Sustain Operational Excellence
Optimize supply chain, production, and logistics to improve efficiency and
reduce costs.
5. Promote Environmental Responsibility
Implement eco-friendly processes and products that contribute to
sustainability and reduced carbon footprint.
6. Ensure Customer Satisfaction and Loyalty
Provide exceptional service, fast delivery, and technical support to build
long-term customer relationships.
7. Attract and Retain Top Talent
Build a skilled workforce through training, development, and a strong
organizational culture.

Objectives:
1. Achieve a 20% increase in sales revenue in the next 12 months through
new product lines.
2 .Reduce product defect rates by 15% over the next 6 months through
quality control initiatives.
3. Launch 5 new eco-friendly product variants by Q4 of the fiscal year.
4. Establish distribution in 3 new international markets by the end of the
year.
5. Implement a new ERP system to streamline operations by Q2.
6. Increase customer retention rate by 10% by enhancing after-sales
service and support.
7. Provide quarterly technical training programs for all engineering staff.

B. Market Study
1. Market Discription:
The AutoTech industry encompasses the integration of advanced
technologies into automotive design, manufacturing, and operation. This
includes innovations in electric mobility, autonomous driving, connected
vehicles, safety systems, and vehicle software.
2. Target Market:
The target market for the automotive business includes a wide range of
customers segmented based on their vehicle ownership, usage, and
needs. The applicable segments may include: Private vehicle owners,
Fleet operators, Government agencies.
3. Supply Situation and Projected Demand:
Conduct research or consult local experts to estimate current and future
demand.
Estimate in terms of product volume or number of clients per year.
4. Supply Situation and Project Supply:
Estimate current and future supply from local/external sources.
Express in volume of goods or number of clients served annually.
5. Demand- Supply Situation, Projected and Market Share:
Analyze market conditions to confirm sufficient demand.
Estimate and explain the target market share and its trend over time.
6. Market Strategies:

This section asks to discuss the marketing strategies to be adopted by the

business to complete in the market, focusing on the tools to be used in
the attainment of marketing objectives. Product, price, promotion, and
place strategies should be discussed.
7. Selling Price:

This section asks to state proposed selling price of the proposed selling
price of the product/service and specify whether this is going to be
increased by how much in the succeeding years, or if it will remain the
same. The price may be based on the cost of production, the prevailing
price, and other factors like the pricing strategy to be adopted.

8. Projected Sale:

TABLE 1.
Project Annaul Sale/Revenue

Year Unit Sold or Clients Serve Piece or Fee Total Sale or

per unit Revenue

1 1,000 500.00 500,000

2 1,200 520.00 624,000
3 1,400 540.00 756,000
4 1,600 560.00 896,000
5 1,800 580.00 1,044,000
C. Technical Study (Production and Operation)

1.Manufacturing/Operation Process
 Source auto parts from authorized suppliers.
 Receive and inspect inventory.
 Label and store items in inventory system.
 Manage walk-in and online sales order.
 Update inventory records regularly.
 Provide basic installation for select parts (if applicable)
2.Production Size and Operating Schedule:
 Production size: Start with 1,000 units in YEAR 1, increasing by 200
annually.
 Schedule: Operates 6 days/week (Mon-Sat), 8 AM to 6 PM.
 Inventory: Maintain 20% buffer stock for fast moving items.
3.Material supply merchandise requirements (As Applicable)
Depending the type of project as applicable, determine the initial
materials, supply or merchandise requirements during the gestation
period of the business and also for the year and onward. (Use the
suggested table below).

Table 2
Material/Supply/Merchandise Requirement

Item/ Unit Unit for Period Annual Requirement

Description Cost Quantity Amount Quantity Amount
(As
Applicable)
1) 250 200 50,000 1,000 250,000
2) 450 100 45,000 500 225,000
3) 300 150 45,000 600 180,000
4) 400 80 32,000 400 160,000
Total ₱ ₱815,000

4. Labor and/or Salary Requirements

From the target size of production, estimate both the initial labor and/or
salary requirements during the gestation period of the business and also
for the year and onward. (Use the suggested table below.)
 Table 3
Labor and/or Salary Requirements
Item/ Rate per Initial for ___ Annual
Description Period Period Requirement
(As Numb Amou Numb Amount
Applicable) er nt er
>Labor
(Production)
1) Auto ₱20,000/ 2 ₱40, ₱480,00
Mechanic mon 000 0
2) Assistant ₱18,000/ 1 ₱18,00 ₱216,00
Mechanic mon 0 0
Subtotal P ₱58,00 P696,000
0
>Salary
(Admin/Selling)
1) Receptionist ₱15,000/ 1 ₱15,00 1 ₱180,00
mon 0 0
2) Sales ₱17,000/ 1 ₱17,00 1 ₱204,00
Representative mon 0 0
Subtotal P32,00 P384,000
0
Grand Total P90,00 P1,080,0
0 00

5. Cash Overhead and or Cash’s Operating Expenses

From the target size of production, identify and estimate the different
cash overhead and/or cash operating items during the gestation period of
the business and also for the year and onward. (Use the suggested table
below).

Table 4
Cash Overhead and/or Cash Operating Expenses
Item/Description Cost- Initial for __ Annual
(As Applicable) Amount Period Requirements
Per Item Quanti Amou Quanti Cost
ty nt ty
>Cash Overhead
1) . Rent 15,000/ 1 ₱15,0 12 180,0
mon 00 00
2) Utilities 4,000/ 1 ₱4,00 12 48,00
mon 0 0
Subtotal 228,0
00
>Cash Operating
1) Office 1,500/ 1 1,500 12 18,00
Supplies mon 0
2) 3,000 1 3,000 12 36,00
Transportation/F 0
uel
Subtotal 54,00
0
Grand Total 282,0
00

6. Fixed Assets

Identify/Enumerate all the required fixed assets both in production and

operation (administrative and selling) as applicable, including the
computed depreciation cost annually. (Use the suggested table below).

Table 5
Fixed Asset Requirement
Item/ Cost Estimated Life Annual
 Description (yrs) Depreciation
>Production
1) Storage 25,000 5 5,000
Shelves
2)Tool Set 15,000 3 5,000
3)Hydraulic Jack 20,000 4 5,000
Subtotal 60,000 15,000
>Admin/Selling

1)Cash Register 10,000 5 2,000

2)Office 12,000 6 2,000
Furniture
3)Computer 25,000 5 5,000
System
Subtotal 47,000 9,000
Grand Total 107,000 24,000

D. Organization and Management Study

1.Form of Business Organization:
 Single Proprietorship – A business owned and operate by one
individual.
 Partnership – A business owned by two or more individuals
who share profits and responsibilities.
 Corporation (Company)- A separate legal entity owned by
shareholders.
 Cooperative- A business owned and operated by a group of
individuals for their mutual benefit.

2. Pre – Operating Activities

Identify all pre–operating activities to be undertaken prior to the formal
operation of the business. Estimate also the amount needed to undertake
each activity. The activities may include but not limited to the formal
registration of the business, acquisition of the permits/licenses,
hiring/training of people, loan application and availment, etc. (Use the
suggested table below. Draw a GIANT Chart of the activities, if possible).
Table 6
 Pre-Operating Activities
Activities Schedule/Time Estimated
Duration Cost
1)Business 1 week 4,500
Registration(DTI,BIR,L
GU)
2)Shop Renovation 2week 20,000
and set up
3)Equipment and 1week 107,000
Furniture Purchase
4)Initial Inventory 1week 150,000
Procurement
TOTAL P281,00
0

3.Management Operation (Clarence)

 I’ll be the owner and manager, oversees all aspects of the
business, goals, and ensure profitability.
 Inventory Supervisor: Manages stock levels, coordinates
reordering, and maintains accurate records. Warehouse Staff:
Handles receiving, storing, and organizing auto parts.
 Sales Manager: Oversees retail and wholesale transactions
and promotions. Sales Staff: Assists customers, processes
orders, and handles inquiries.
 Accountant/Bookkeeper: Manages budgets, records
transactions, and prepares financial statements.

E. Financing and Financial Study

1. Total Cost
Determine the total cost needed to start operate the business using the
tables prepared in the foregoing parts of the study as a guided. (Use the
suggested table below).
Table 7
Total Cost
Particular Equity Loan Total
1) Pre-operating Expenses (Table 6) 100,000 50,000 150,000
2) Fixed Assets (Table 5) 400,000 600,00 1,000,0
0 00
3) Working Capital (For ____Period)
 >Initial Material/Supply/Mdse. (Table 150,000 100,00 250,000
2) 0
>Initial Labor and/or Salary (Table 3) 120,000 60,000 180,000
>Initial Cash Overhead and/or 80,000 40,000 120,000
Operating (T4)
Total Working Capital 350,000 550,000

TOTAL Cost 1,200,00 850,00 2,050,0

0 0 00

2. Sources and Uses of Capital

From Table 7, discuss the sources of capital and determine the percent
distribution from each source.
 Personal Savings: PHP. 1.2M
 Bank Loan: PHP. 850,000 ( 5 years at 10% interest)

3. Projected Financial Statements

(Prepare/present the following financial statements and schedules)
1) Projected Income Statements

Table 8
Projected Income
Statements
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Sales P1,200, P1,500, P1,800, 2,100, 2,400,
000 000 000 000 000
Less: Operating
Expenses
Pre-operating P150,0 P200,0 P250,0 300,00 350,00
Expenses 00 00 00 0 0
Material/Supply/ P250,0 P300,0 P350,0 400,00 450,00
Merchandise 00 00 00 0 0
Labor and/or P180,0 P200,0 P220,0 150,00 260,00
Salary 00 00 00 0 0
Cash Overhead P120,0 P130,0 P140,0 150,00 160,00
and/or 00 00 00 0 0
Operating
 Depreciation P P P

Total Operating P700,0 P630,0 P710,0 790,00 870,00

Expenses 00 00 00 0 0
Income Before P500,0 P870,0 P1,090, 1,310, 1,530,
Interest Expense 00 00 000 000 000
Less: Interest 80,000 70,000 60,000 50,000 40,000
Expense
Net Income Before P420,0 P800,0 P1,030, 1,260, 1,490,
Income Tax 00 00 000 000 000
Less: Income Tax 126,00 240,00 309,00 378,00 447,00
0 0 0 0 0
Net Income from P294,0 P560,0 P721,0 882,00 1,043,
Operation 00 00 00 0 000

Projected Balance Sheet

Table 9
Projected Balance Sheet
Particulars Year 0 Year 1 Year 2 Year n
ASSETS
Cash P100,000 P150,000 P200,000 P250,000
Receivables 50,000 60,000 70,000 80,000
Inventories 250,000 275,000 300,000 325,000
Fixed Assets 1,000,00 950,000 900,000 850,000
0
Total Assets P1,400,0 P1,435,0 P1,470,0 P1,505,0
00 00 00 00
 LIABILITIES
Current Loan 200,000 150,000 100,000 50,000
Payable
Long Term Loan 650,000 600,000 550,000 500,000
Payable
Total Liabilities P850,000 P750,000 P650,000 P550,000
CAPITAL P P P P
Capital, 100,000 150,000 200,000 250,000
Beginning
Add: Net Income 50,000 60,000 70,000 80,000
Capital, Ending P150,000 P210,000 P270,000 P330,000
Total Liability P1,000,0 P960,000 P920,000 P880,000
and Capital 00

F. Socio-Economic Study
1. Jobs/Employment Generated
 The AutoTech business will generate both direct and indirect
employment:
 Startup Phase: Involves hiring technicians, IT staff for
diagnostic systems, and personnel for shop setup and
operations.
 Operational Phase:
 Automotive Technicians and Mechanics
 Diagnostic Specialists
 Electric Vehicle (EV) Service Experts
 Customer Service Representatives
 Inventory and Parts Personnel
 Admin/Finance Staff
 Estimated Workforce: 1-6 direct employees, plus
opportunities for subcontractors and interns.

F. Benefits to the Government

 Tax Revenues: Income tax, VAT, business permit fees,
and SSS/Pag-IBIG/PhilHealth contributions.
 Regulatory Support: Alignment with LTO and TESDA
programs for automotive standards and certifications.
 Economic Growth: Encourages local entrepreneurship
and supports national goals for modernizing the
transport and automotive repair sectors.
3. Other Benefits

 Skills Development: The business plans to collaborate with technical

schools for hands-on training and internships in auto diagnostics
and repair.

3. Part Ⅲ – EVALUATION (Finding, Conclusions and Recommendation)

__________________________________________________________________
A. Summary of Findings and Conclusions
Strengths of the Business Plan Market Research: The plan demonstrates a
solid understanding of the automotive electronics market, including target
customer segments, industry trends, and competitive analysis. This
thorough research provides a foundation for developing relevant and
targeted products and services.
Product and Service Offerings: AutoTech Innovations offers a diverse
range of services, including electronic diagnostics, repairs, upgrades,
infotainment system installation, and customization. This comprehensive
approach caters to a wide range of customer needs, potentially attracting
a larger customer base.
Business Model: The plan clearly defines the business model, outlining
revenue generation through direct payments for services and product
sales. The combination of per-project billing and flat-rate services offers
flexibility to customers while ensuring a steady revenue stream.
Financial Projections: The plan includes detailed financial projections,
including sales forecasts, expense projections, and profit margin
calculations. This demonstrates a proactive approach to financial planning
and provides a framework for measuring success and making informed
decisions. Sustainability Initiatives: The plan acknowledges the
importance of sustainability, highlighting the use of eco-friendly products
and practices. This aligns with growing consumer demand for
environmentally responsible businesses and can enhance brand image.
Areas for Improvement Competitive Advantage: While the plan mentions
differentiation through onsite repair and upgrade solutions, it lacks a clear
and compelling competitive advantage. Further elaboration on how
AutoTech Innovations will stand out in the market is crucial, particularly in
a competitive industry. Technology Focus: The plan mentions advanced
technologies like AI, IoT, and blockchain but lacks specific details on how
these technologies will be implemented and what unique value they bring
to customers. A deeper dive into the technological aspects of the business
is essential for attracting investors and demonstrating innovation.
Marketing Strategy: The plan briefly mentions marketing but lacks a
detailed strategy outlining specific tactics, target audiences, and budget
allocation. A comprehensive marketing plan is crucial for attracting
customers and building brand awareness.
Risk Assessment: The plan mentions potential risks but lacks a detailed
risk assessment, including mitigation strategies. Identifying and
addressing key risks proactively is crucial for ensuring the business's long-
term success.

Conclusion The business plan for AutoTech Innovations shows promise,

demonstrating a strong understanding of the automotive electronics
market and a commitment to providing quality services. However, by
addressing the areas for improvement, particularly regarding competitive
advantage, technological details, marketing strategy, and risk
assessment, the plan can be further strengthened and increase its
chances of attracting investors and achieving success.