Streamline Your Transactions with Our Car Sale Invoice Template for Enterprises

Car sale invoice template for enterprises

hey this is kyot projection hub and today we're going to be writing a car dealership business plan now what I'm not going to do in this video is write an entire business plan right in front of you but what I am going to be doing is using this example business plan template which is free you can grab a copy of that down in the description below and I'm going to be walking through the structure of this business plan and then so you can kind of see what it would look like for a car dealership and then the main goal for this video is I'm going to highlight five key points uh that I think will make or break basically the the effectiveness of your business plan now where is our credibility coming from which is a totally fair question uh so projection up has helped more than 50,000 small businesses and entrepreneurs create Financial projections uh that they're using for loan applications business plans fundraising and actually before my time um with projection up I was an SBA lender for seven years and so that uh process looked a lot like reviewing business plans compiling loan applications underwriting um and so solved many car lots uh and C dealerships during my time um doing that and so today again I'm going to be going through the structure of a business plan to kind of comment on um things that I would make sure you include in here from the perspective perspective of a lender so just keep that in mind that's kind of the the the Viewpoint I'm coming from and actually I guess I should mention right before a transition there that if at any point you like the video give it a thumbs up that really helps us and our small business um feel free to ask questions in the comments or emails at support projection hub.com we would be happy to help and so without further Ado for real this time let's go ahead and jump in okay so why do you even need to have a business plan um probably a cliche maybe obvious answer but the the purpose of your business plan is not to educate the reader on you know what the industry is doing or what a car dealership is um but it's specifically to focus on demonstrating your plan to go from square one to successful to repaying a loan to reaching your goals and the more specific research ideas um realistic you know projections everything we can include um to instill confidence that you know we actually will be able to execute um what's in the plan uh will increase the likelihood that we get approved for the funding and the financing we're looking for and so that's that is the goal now as we start going through here we'll stop initially at the the table of contents to point out a few things first thing is that the business plan is not super long and contrary to popular belief your business plan doesn't have to be long to be good and I actually think the opposite is true I think um the more stripped back and just jam-packed with the important details that your business plan can be uh makes it a much more impactful and effective document um now if it's just full fluff and you you double the length of it just because that feels like that's more impressive um what you're risking is that your a lot of the important details are going to get lost um in that in that fluff and so you know lenders are reviewing a lot of applications a lot of loan requests and so they don't really have time to read a really long business plan and so just make sure you include the important details that are in there and the second point that I'll or second thing I'll point out in this is that the projections are actually quite a big chunk of your business plan and we'll get into that a little bit more later so let's get into it here uh first up is the executive summary I want you to think about this section as like a cover letter or a resume if you're applying for a job this is like your your one page to kind of offer an overview or a summary of the whole business plan um one thing that you can include in this section that isn't in this example is you could put like maybe like a a sneak peek of some of the financial sections so whether that's your total startup costs or how much funding you're going to need when you plan to break even you could include that there um if you wanted to but you don't have to so you're you know you're going to be hitting the high points though like who are you what are you doing where are you doing it at is kind of what we're focusing on here and you know the company description is really just an extension of that so here you're going to focus more on like the people that are involved the legal structure um how are you going to do car dealership differently than you know your competitors um and ultimately what's the target area so to get down here into the real meat of it is the market analysis market analysis is going to have our first key point and so you know what I want to encourage you to do is don't fall into like the Shark Tank trap where you are citing a much larger market opportunity than really exists in like your local kind of sphere of accessibility and so here you really want to try to get down drill down as specific as you can to your local market your local competitors you should know you know every competitor within a you know well I would usually say like a 10 mile radius or 20 M radius but um car dealerships is one of those Industries where if people find a good deal like if they find the car they want that's on your lot and it's the right price they will drive hundreds of miles to get it and so of course you can't know your competitors across state lines and all over the place so at least know like your local competition your direct competitors um what they're offering you know check the reviews what what have people not enjoyed about their experience there um that can be an opportunity to capitalize on something you know what brands are being sold versus what brands aren't is there a is there a shortfall and used cars in your area you know try to find your Niche who your direct competitors and then highlight that in your business plan but the key point I want to mention is so you can talk about your Market in that way but being able to provide specific examples of local research to demonstrate that there's actually room in the market for your business is is the most important part so you know of course there are Market studies that you can you can order you can pay an agency to do that you know we even offer some Market Research Services which I'll link in the description but I'm not going to push that on you because there are even free ways you can go about doing that at least more so than not doing it at all and so let's hop into one one example you'll see in here you know you could do a survey and conduct the market research report but I want to right here for example number three which I think is a nice little free thing to do so you can go to if you go to Google AdWords you can create a free account and there is a free tool in here called a Keyword Planner tool and what this allows you to do and what this allows you to do is to actually simulate you know what Search terms people are going to Google to search for they're going to Google maps to search for it and you can say I want to see those results in a specific location and so uh I had I mentioned in our example we are going to open up our car dealership in Indianapolis now you might want to be like Indianapolis is a pretty big city you may not believe that for a city in Indiana but it's a pretty big city and so you're probably better off if you're doing this of if you live in a big city you know you can do this for the whole city but even if you choose like a a town that's just outside the city or a suburb of the city that might be an even a more accurate representation of your target audience um in your target market but I'm going to use the whole city as an example so I I just curious I put in car dealership near me use car car dealership near me now this tool is going to do a few things one it's going to come up with additional keyword ideas of things you may not have thought of um when you were doing this practice and it's going to show the average monthly searches for those key terms and then the most important part to me is the trend data the three-month Trend and the year-over-year trend and then it will include some advertising competition data so if we're looking at the keywords that we've pulled up here I've selected a few that I thought were interesting for this so car dealership near me Honda dealership near me dealerships near me used car dealership near me so guess in your case it's like are you going to be a general pendent dealership are you going to be you know represented by specific Brands but we can see some some Trend data here the 3-month one we're looking at 20ish per growth year-over a year that's still pretty good growth so that's a good indication to me that there's at least room there's demand growing demand in the area at least you know it's it's growing uh people searching for those things now I'll obviously see ones that are declining Kia down 19% Nissan down 19% um Chevy is up 26% used C dealers down 34% so you got to kind there's two sides of the coin here if you do this practice and you see that there's a a declining Trend in a lot of the things you're interested in or that you would think you were Target customer would be searching for that's not to say you can't try to pursue opening your business it's just your business plan needs to Pivot a little bit more so instead of identifying the market opportunity it might have to shift more towards well it is a competitive market but our two direct competitors have terrible reviews there's a really good opportunity to come in and steal some clients and you know Etc so you're shifting more in towards how you going to steal market share versus what available Market are you trying to capture if that makes sense and so of course doing this isn't like the totally conclusive way to demonstrate that there's actually room in Market but it is better than nothing to be able to show that you're looking into this kind of thing um and that might be able to at least validate your idea initially um as you're doing it so this is one free tool you you can grab a screenshot from this throw it in your business plan give us some some commentary in there so hopping back to the business plan that was key Point number one moving forward into our marketing and sales strategy where key Point number two will be and so we just spent time talking about the more we can do to demonstrate a tangible example that there's room in the market now we need to demonstrate that we actually can capture some of that market you know what are we going to do to acquire that customer so all the stuff you see here is kind of just like a minimum requirement you need to outline what you're going to sell how much you're going to sell it for do you have any specific sales strategies you know you're going to have a website you're going to be active on socials you're going to do advertising all of that's kind of expected and that's not going to set your business plan apart but it is kind of required to be included so key Point number two is how do we actually demonstrate straight customer acquisition or even better yet it's what's called traction now traction is a is a popular buzzword in the tech space and that is really a demonstration of if somebody so say we're we're we were making an app right and we wanted to to Pilot that app or prototype it and we got a bunch of people interested in using it and then we decided wow this was really popular let's go and get some funding you could say to a lender or investor like hey we already had 10,000 people sign up and use our app they love it you know they're going to be more inclined to give you funding because you have a demonstration traction or momentum um to do that now that can be a little bit harder to replicate on like the brick and mortar retail small business kind of side of things but you can get creative and kind of come up with your own version of that so some examples here um now there's kind of like some the best form of customer acquisition demonstration retraction are the ones you can do before launch um you know before pre-revenue I guess is what they would call them or before taking a loan and then there are some you can do you know at launch or right after launch so example one and two is kind of a post-launch right collaborate with a car show or referral program you know so those are good things to do because those can help continue the momentum in growing but something like car 3 is a really good example is like a coming from a lender so let's say maybe you you were a car mechanic or you worked a day job or you worked at a different dealership or whatever and on the side or maybe in your free time or you're Moonlighting you are finding cars you know on Craigslist or uh friends and family and you're buying that car and you're flipping it for additional money right and if you can do that several times and kind of get your own little thing going that is kind of a demonstration you can put in your business plan that you know in the last 12 months I personally have have bought and sold 27 used cars for a gross profit of you know $42,000 right so like that may not that might sound like a weird thing to do but that's an exact demonstration of that you know what you're doing you're practiced at it you're good at identifying used car opportunities and and pricing them well and and being able to turn them around so that's kind of an example of traction or customer acquisition that you actually know what you're doing can be able to do that you can put something like that in your business plan and that can help us stand apart so that is key Point number two moving along here the operations in management section so we're shifting a little bit more to like the logistics of actually running your business so you've got you know your inventory management here you'll probably talk about um you know like the lot financing that structure you might use there um customer relationship management your sales tee approach how you're actually going to acquire and select the vehicles um but the key point I want to focus on is highlighting relevant industry experience so you need to make sure that your lender has confidence that one you actually know what you're doing and two you know what you're getting yourself into and so if you can highlight what experience you have that qualifies you to be able to to do this well or for them to trust you with x amount of money um you need to include that in here and if there's any experience that you're lacking um do you have a partner or key employees that do possess that so maybe maybe you are an experienced salesperson and you're a car Enthusiast and so your dream has been to open up a car lot and that's the experience you bring to the table that might not be enough to give your lender a ton of confidence if you can add a person to your team that was a manager at a card dealership right or if you have a partner who has previously owned a card dealership like that rounds out your experience profile to instill that confidence in your lender now you don't have to do that it's just a recommendation if you don't and your lack some necessary experience that's just going to create some additional questions and some additional hurdles that you know you've got to be able to answer and overcome in order to get to the finish line so um if you have that experience highlight it if you don't try to find it in Partners or key employees um and if you can't do that then just be prepared to try and and rebuttal as much as you can when you're asked with those questions all right moving along into the big big boy section here is the financial projections um obviously we're a little biased being projection hub this is kind of our expertise and so here included we'll just go through this quick we've got startup cost breakdown so here's a quick you know we've said we've already raised some investment we want to secure a business loan um to open up our first location here I see a breakdown I'm showing a breakdown of kind of our our plan of leas hold improvements for the first dealership and then we hope to open a second third and fourth location um our loans we're planning on having to get in order to do that then we've got kind of our revenue or our overall Financial summary here so I've got like a fiveyear breakdown of high level some key financial points here's a breakdown of some Financial or some uh car dealership specific assumptions um you got you know average vehicle sold per dealership transaction values or conversion rate number of vehicles sold all of that kind of stuff total online versus walk-in um sold key ratios our operating expenses so like our monthly recurring expenses or overhead and then we've got 5 years of a projected income statement which most lenders only require maybe like two or three years 5 years is conservative it doesn't hurt to have extra years um five years of cash flow statement and the balance sheet here as well and then lastly we've got kind of like a break even analysis down here and so uh quick plug all of those charts and those projections were made using this template this is available if you get it you go go down to the link in the description um if you stick around end the video I'll even give you a promo code the business plan template is free this this projection template is not free um but I promise you it's it's worth it um it's going to be really difficult to create complete comprehensive projections by yourself um and if you pay an accountant to do it it's probably going to cost a lot more than maybe you have budgeted so this template was built by a CPA by an accountant on our team and this has been used by many people all you have to do is you know this is this is the part of the business plan where a lot of business owners like really get overwhelmed or their eyes kind of glaze over um but it's really quite easy to do um you only edit the blue sections you know this looks like a lot of information but again we're only editing these blue sections and it's really just it's simple information that you're putting into this your expenses pretty pretty simple to put those in if you have any St employees it's really nice and easy to add them here and then based on that information this template is going to create all of this information for you your financial statements are going to be outlined exactly how your lenders will want them and yeah so that is available down in the description below but key Point number four is not to have Financial projections that is again a minimum requirement you have to have Financial projection especially if you're seeking a loan for a startup um key Point number four is your projections need to be realistic and they need to be within kind of the industry Norms or industry averages now if you have a ton of experience in the industry you might create projections and say like yeah these look good these kind of align with what you know my previous experience did but chances are you probably don't know exactly how those numbers should shake out and that's okay so this is what I would do or what I do do is I like to go to this added glance summary and my projections after I've made them and we've got some really nice high level data you got some key ratios got this overview up here got this information here and I'm just simply going to Google those things right so I can look for what's a typical what's a typical typical net income or profit percentage net profit percentage for a car dealership or a used card dealership and I'm going to see what it says if you're familiar with tools like chat GPT that's another great resource just ask what are some typical Financial points and I actually have gone ahead and done that to give an example so I asked what are some typical averages and benchmarks for cardio ship like gross profit net income cost of good sold operating expenses and so it gave us some nice breakdowns here gross profit you know will differ based upon if you're doing new vehicles used vehicles Parts and Repair um I like this one here this is a nice and easy one net income percentage or net profit percentage Mar margin typical is 1.5 to 3% top performers 5% so let's go over to our projections and we're looking at you can see it either here profit margin or our net income right here and so we're right there again it's not uncommon to not break even in your first year even in year two or three so we're going to say we're we had a loss the first year and then eventually we'll get up to 1% but again look at the topl line numbers they're big numbers right car dealerships do big numbers and so 1% profitability is a million dollars right so that's that's still a big difference so we're we're within a realistic range there we're not just assuming oh we're going to be 20% profit you know margin and so that is a demonstration of if you create projections make sure you're benchmarking those against just doing some searching spend a few hours just making sure you're within that range and that will do you wonders okay so lastly we have one more key point and this isn't necessarily something that you need to put in this uh in your business plan but maybe just be prepared for and actually for a card dealership this one is a fairly simple one it's called Skin In the game and this is essentially being prepared to know what you're going to offer for collateral what you're going to secure for the loan you know it's very uncommon for a lender to say hey don't worry about it it's going to be an unsecured loan and if you default nothing's going to happen so just be prepared they're going to expect probably a personal guarantee because dealerships you know are are asset heavy um your primary Finance portion is going to be your lot financing or the cars on your vehicle those will also be the collateral for your loan and so depending upon if you're renting a space or buying a space or extra stuff outside of the cars that's where you might have to get creative with additional collateral um so just know what you have available to be able to offer so when you're asked for it um you know you already have that sorted out and you aren't caught off guard um but just just be prepared for that U be realistic and you should be good to go and there you have it that is the car dealership business plan um free template available in the description below as promised let me get you that that promo code for the projection template if you use ph20 BP um you can get 20% off of that that template uh I promise you it'll be worth it and scroll back down here there's also a video guide that walks you through and shows you exactly how to fill up those projections makes it really easy we're also available here to help our support team at support pro.com so uh thank you for your time like the video If you appreciate it uh and um yeah let us know how we can help you thanks