Executive Summary

Objectives

Mission

Keys to Success

Company Summary

Company Ownership

Start-up Summary

Company Locations and Facilities

Services

Competitive Comparison

Sales Literature

Future Services

Market Analysis Summary

Market Growth

Strategy and Implementation Summary

Marketing Strategy

Pricing Strategy

Promotion Strategy

Distribution Strategy

Marketing Programs

Sales Strategy

Sales Forecast

Milestones

Management Summary
Personnel Plan

Executive Summary

Statesville Vehicle Leasing will be formed in Capital City, Statesville and will be owned and managed
by John Smith.

The company will target

The drivers that do not like to be without a car for any length of time so car hire is an option when their
vehicle is being serviced or repaired.
The drivers whose car has been in an accident or broken into and the driver needs a quick replacement
vehicle.
Tourists who are visiting Statesville who can pre-book a car to use during their stay.
Customers who want specific vehicles for a specific occasion such as a wedding or an unusual gift.

We currently rent cars to students at Statesville University and are now looking into supplying
reasonably priced but reliable cars and other vehicles. Our current service is well received and we see
no real problem in adding to our product range successfully.

We will give car renters opportunities to get vehicles are little or even no cost when they deliver the
vehicles to destination drop off points that need them and at the times when they are needed. We will
offer dynamic pricing, based on the current supply and demand at particular locations, but will require
renter commitment to take advantage of low rates by paying in advance.

Objectives

Achieve rental capacity of 75%.

Statesville Vehicle Leasing will be fully self-sufficient and profitable by 200*.
Rent at least ** units by year three and ** units by year five (**% annual growth rate).

Mission

At Statesville Vehicle Leasing, clients will be able to rent a quality means of transportation at a fair
price.

Statesville Vehicle Leasing will also be a profitable business that will treat employees fairly and
provide financially for its owners.

Keys to Success

Good customer service and value.

Affordable rental prices.
Reaching the target market.
Integrity in serving our customers; resulting in repeat purchases.

Company Summary
Statesville Vehicle Leasing already rent cars to Statesville University students, as well as others who
have a need. There is currently no business like this, in Capital City, which caters to this market.

We now are seeking to expand both this service and to offer low-cost vehicle rental to the same market.

We have a satisfied customer base that, we believe, will be interested in other vehicles that we have.

Company Ownership

Statesville Vehicle Leasing, Incorporated is an S corporation. The reason that the company is
incorporated is for tax advantages and to decrease liability.

Start-up Summary

Anyone wanting to start up in this business needs to be aware that there are considerable costs
involved. The largest outlay is buying the vehicles themselves and the number of cars you purchase
will depend on the size of the operation you want to set up.

Anyone going into the more specialized end of the market may only need to buy a couple of vehicles,
but again these can be extremely expensive. Some car rental companies are linked with specific
manufacturers so have the backing of those particular companies.

You could consider buying a fleet from one manufacturer or even buying older fleet cars if you wanted
to set up an operation at the lower end of the market. Most major car showrooms will have fleet advice
information.

An office will need to be rented or purchased and you will also need space to store the vehicles.
Obtaining premises will be a major outlay and the actual costings will depend on your location.

A computerized system to co-ordinate bookings will also require some outlay. You will need a PC with
appropriate software and a printer – from $1,500.

A telephone system plus answer machine will need to be fairly comprehensive to deal with a number of
calls simultaneously – from $150.

Insurance costs for this industry will also be considerable, a broker will be able to provide guidance and
give an indication of costings.

There will be on-going costs such as utility bills and business rates.

If employing staff, wage bills must be budgeted for together with uniform costs – from $100 per
uniform.

The cost of maintaining and repairing vehicles. You may want to consider entering into an arrangement
with a garage for a discount if you take your vehicles only to them.

John Smith originally funded this company. The majority of the new funding will come from current
earnings and local investors, plus loans backed by assets. The cost of the expansion, including
inventory, legal expenses, and advertising, will total $200,000. We anticipate that this company will
start generating immediate cash flow.

Expenses

Legal $500

Stationery etc. $500

Insurance $1,000

Expensed equipment $1,500

Total Expense $3,500

Start-up Assets Needed

Cash Balance $26,500

Vehicles $170,000

Total Short-term Assets $196,500

Total Requirements $200,000

Funding Investment

John Smith $100,000

Loan $100,000

Total Investment $200,000

Company Locations and Facilities

The company is located in Capital City, Statesville. This location is ideal because of the need for
inexpensive transportation by the large student population. If Statesville Vehicle Leasing is successful,
which we believe that it will be; other locations will be opened at various other university towns.

Services

We will offer

Affordable hire for students and tourists

Wedding car including chauffeur charges.
A stretch limousine.

What fees can you charge?

Charges for car hire can differ greatly depending on what area of the country you are in. Companies in
Capital City would be more expensive that those in more remote areas. Fees for different types of car
hire:

Rates for wedding cars include chauffeur charges. Some companies charge additional mileage if they
are expected to travel more than 50 miles. Prices depend on the type of car but can vary from $180 up
to $290 for a top-of-the-range car.
Stretch limousines can accommodate six to eight people and prices start from around $75 for the first
hour, then a reduced rate for subsequent hours. This price sometimes includes a magnum of
champagne.
Classic cars are the top end of the market and the hire charges reflect this. A 1978 Morgan 4x4 two
seater would set you back $195, and a Ferrari 401 V12 would cost around $200 a day. A Jaguar E-Type
V12 Roadster would be around $360 for the day.
Standard weekly hire can vary from around $128 to more than $400 a week depending on the type and
size of the vehicle. Daily hire rates can be anywhere from $20 to $125, again depending on engine size.

Competitive Comparison

Because there is a large, well-established car hire market, it is essential to look for gaps in the market
or at least research thoroughly what else is available in your particular area. The main sources of
competition will include:

Local companies offering a similar service and who already have an established reputation in the field.
The major national – and international – players. They benefit from being recognized names and have
the added benefit of allowing clients to use their vehicles for one way journeys, allowing them to leave
the car at a different point from where they collected it.
Specialized hire companies which offer drivers, limousines, classic cars.

The competition that Statesville Vehicle Leasing now expects will be from other automobile rental
companies, but they take little interest in our market and we are already well known around campus.
They also cannot offer the freedom and price flexibility that Statesville Vehicle Leasing offers.

Sales Literature

The only sales literature that Statesville Vehicle Leasing will distribute will be via newspaper
publications. We have no plans for a direct mailing plan, although one is possible in the future.

Future Services

It is possible for Statesville Vehicle Leasing to expand into the electric vehicle market in the future if it
becomes a feasible transportation alternative. We believe that this will be positive for us because we
already will have an established customer base that is interested in low cost or environment friendly
transportation alternatives.

Market Analysis Summary

In a world where families with more than one car are a fairly modern phenomenon it would be easy to
assume that vehicle hire is also a relatively new development. In fact vehicle renting stretches back to
the 1910s and is an area of business which has seen rapid growth over the subsequent decades.
For many years the industry has been dominated by a handful of big names. That has now changed and
a number of smaller and more diverse players have become involved in what seems to be a fairly
healthy market place.

The vehicle rental and leasing market is estimated to be worth more than $92.5 billion, and while the
bulk of that figure is accounted for by long-term leasing, the rental market has around 10 - 15% of the
sector.

The most well established of the rental companies is Hertz, which first hired out cars as far back as
1918 when Walter L. Jacobs of Chicago decided to rent out 12 Model T Fords. Now Hertz has 1,900
outlets in the US and 5,000 locations worldwide which handle 40 million telephone calls and around 30
million reservations every year.

The second largest company, Avis, was launched in 1946 at Willow Run Airport in Detroit with an
$85,000 investment and it was the first car rental operation to be based at an airport. Now the company
processes more than 17 million transactions every year with an international fleet of more than 200,000
vehicles.

A year after Avis came into operation, National Car Rental was born at Chicago’s Drake Hotel where
24 entrepreneurs came together to create their own company. Dominating airport locations and now
with the sister company, Alamo Rent-A-Car, it has carved itself a share of this lucrative market, but the
continued reliance on cars means that there is a healthy market.

The car rental market is an expanding one, although its growth can depend on the level of overseas
visitors. Inbound tourism has been suffering in the past 18 months with the combination of the foot and
mouth epidemic and falling numbers of tourists, post September 11th 2001.

There are a number of new companies entering the sector. The most notable of these is easycar, a
subsidiary of low-cost airline easyjet which has introduced cheaper and more competitive car rental.
They now offer risk profiles on drivers to ensure a fairer insurance charge and they have just one type
of car at each location to avoid the expense of maintaining a variety of vehicles.

Short-term rental has two main customer groupings – business and leisure. They are of equal
importance to the industry although their requirements differ greatly. Business customers want speed,
quality vehicles and good geographical coverage. Leisure users are likely to be less concerned about
these issues and may be willing to trade a state-of-the-art car for an older but reliable model. This has
meant that a number of companies have set up which cater solely for the leisure market.

The leisure industry accounts for around 47% of the short-term car rental business. There is also a
growth in companies specifically offering touring holidays, ranging from classic cars for one-day hire
to nostalgic self-drive classic car touring holidays.

Many people require a car to use on holiday but do not necessarily want to drive to their destination.
Travelers will use public transport to reach their holiday destination, and will then want to pick up a
rental vehicle at the other end.

More and more people are on the lookout for unusual gifts and there is a growing market in offering a
drive in an unusual vehicle as a present for a special occasion, with everything from tanks to double
decker buses available. The luxury car drive is – not surprisingly – extremely popular. Ferrari
Testarossa, Dodge Viper GTS and Porsche 911 are just some of the cars on offer through companies
like Red Letter Days.

Vehicle hiring does not necessarily have to be limited to cars. There are a small number of companies
who offer lightweight caravans for hire and link that service with booking holidaymakers into sites if
they require. Generally this is a very small section of the market, but, given the popularity of such
holidays in other countries, is likely to be a growing trend.

We see this market as mainly made up of university students. Since a majority live close to the campus
(within five miles) and have a limited budget, low-cost automobiles are a good option for them.

We also anticipate getting customers that are outside of the university community. These customers
would be ones who typically have a shorter commute or want a low-cost service delivered with
efficiency and a smile.

Market Growth

The car rental industry is currently well serviced at all levels and the market tends to be dominated by a
small number of major international companies – Hertz, Avis, Budget, and National. The remainder of
the market is made up of small companies who serve mainly their local area. As yet there seem to be no
franchising opportunities in the car rental business.

One area which is steadily growing and relatively new is limousine hire. American stretch limousines
are usually hired with a driver because of the extra skills needed to maneuver these particular vehicles.
Their use has grown from occasions such as weddings to being popular for a wide range of
celebrations, notably stag and hen nights. Also the growth in school proms has also seen increased use
of limousines which are used to take students to and from these events.

A high percentage of the car rental market is business based and the major companies tend to dominate
this market. Many have long-term agreements with major companies to supply vehicles under
contracted rental programs.

Car rental can be an expensive business and companies offering more competitive rates and better
packages are now being identified. Easycar is one of the new players and offers a pricing system which
treats customers on a more individual basis. This is a market which is just starting to develop.

The luxury end of the market is far less saturated than the general car hire business. Here the main
bookers are either companies wanting luxurious transport for their executives or people wanting a
different kind of vehicle for a special occasion.

We anticipate that this market will grow in two ways. First, it will grow will be as gas prices continue
to increase. This will make the cost of driving an automobile even more expensive and Statesville
Vehicle Leasing a more attractive option.

Second, it will grow with the University. As the number of students increases, so will the target market
and the number of students who are interested in our product.

As we are using low-cost automobiles we can undercut our rivals who, not only, have more expensive
vehicles but higher gas costs.
Who are your customers likely to be?

The first step should be deciding who will be your potential customers and who you should be
targeting. Small businesses may struggle by virtue of the fact that it can involve some fairly hefty
financial commitment and it may be better to consider one of the more specialized and less saturated
sections of the market rather than attempt to compete with larger companies.

Customers for car rental come from a diverse background, ranging from people who hire a vehicle as a
one-off, to those who use such services on a regular basis.

Many drivers do not like to be without a car for any length of time so car hire is an option when their
vehicle is being serviced or repaired, although many garages do operate a courtesy car scheme. There is
also a market for hire when a car has been in an accident or broken into and the driver needs a quick
replacement vehicle.
Leisure users account for around 47% of the hire car market. This includes customers who pre-book a
car to use on holiday or who book once they arrive at their destination.
The specialized car market caters for customers who want specific vehicles for a specific occasion such
as a wedding or an unusual gift.

Strategy and Implementation Summary

Breaking into an already established marketplace is one of the biggest challenges which will face a new
business in this area. Anyone thinking of going into the car rental business will need to identify their
particular sector and then look at ways to make themselves more attractive than the competition. These
methods can include:

Promoting your services via your own website. The name you choose for your company is important
and you should consider one which will be identified easily by potential customers using search
engines.
Advertising in your local paper. Also consider sending a press release to a business journalist who may
use it, particularly if you have had an interesting background/it is a change of direction etc.
Promotions. Speak to the promotions person at your local newspaper/radio station about running some
kind of special offer which may save you money. If you go into the specialized car area of the market
such as limousines it may also be worth offering them a competition prize in return for some kind of
publicity.
Yellow Pages. Advertising in the relevant section of the Yellow Pages or other listings.
Business directories. Your local council’s economic development department may be able to help and
tell you of any relevant publications you could be entered in.
Mailshot. Send flyers out to big companies offering your services. You could offer an exclusive
discount to their employees.
Tourist information guides. Your local Tourist Information Office will be able to tell you about
publications and how you can be included.
It may also be worth considering becoming a member of the local Vehicle Rental and Leasing
Association.

Marketing Strategy
The main marketing strategy that we will pursue will be to make potential customers aware of us via
campus publications. We will advertise in such things as the Statesville Daily, UO Student phonebook
and Campus Life, which we will continue to sponsor and supply editorial for.

Pricing Strategy

We will price our products at a level that is affordable for the student and that provide financial
sustenance for the company and its owners. A discount is offered to those who sign up for a school year
lease (10 months). The accessories are offered above cost, but at a reasonable level.

We will not focus on cost as for travellers, time is often far more important. We will make it
particularly easy and fast for someone to pick up and drop off a vehicle that they have reserved. For an
extra price, we will even offer to have the vehicle waiting at the kerbside when they start their journey.

Also, for a price, we will offer vehicle pickup at any time anywhere in the Statesville area (instead of
drop off). The customer tells the company where and when they want to get rid of the vehicle and an
employee is there waiting for them.

Promotion Strategy

This business will be successful only if the target market knows about Statesville Vehicle Leasing and
how affordable automobile rental can be. Statesville Vehicle Leasing will advertise in the Daily
Emerald.

Our best source of advertising, which is also relatively inexpensive, is in Campus Life. We would also
try, at some point, some promotions such as free car rental contests and free safety courses.

Distribution Strategy

The method of distribution for this business would be to rent vehicles directly.

Also, for a price, we will offer vehicle pickup at any time anywhere in the Statesville area (instead of
drop off). The customer tells the company where and when they want to get rid of the vehicle and an
employee is there waiting for them.

Marketing Programs

In order for Statesville Vehicle Leasing to reach both the three and five year goals, one of the things
that must happen is to get the idea of a low-cost vehicle as an acceptable means of transportation
accepted. People already see others on mopeds around campus as well as the presence of advertising.

By offering low-cost vehicles we will encourage car-sharing and getting University groups and
societies to rent vehicles for whole terms.

Sales Strategy

Since the main part of the business will come from customers ready to rent, there will not have to be
much direct selling. We will use knowledgeable sales people to assist any customers who have doubts
regarding renting a moped or low-cost vehicle. The sales staff will know the benefits explain this to the
potential customer. Some customers will worry about the safety and we will service this customer with
safety and instructional classes.

Sales Forecast

We predict that there will be variation in monthly sales forecasts, but we expect to reach ** units in the
next school year of operation. The variation will be due to lower sales when school is out of session.

Milestones

In order for Statesville Vehicle Leasing to be successful, we must have attainable goals for the
business. When looking to the future and for growing the business, we can look at these goals and
milestones, as an indicator of where the company has been, is going, and the path that it is taking. They
can guide the future of the business. These are detailed in the Milestones section.

Milestones

Open Shop For Automobile Business

Rent first automobile
Be debt free

Management Summary

As this is a small business, there will be no real management structure except for the owner.

He will run the business on a daily basis and oversee all facets of the operation. Assisting him will be
various employees who will work the shop. An on-duty mechanic will also be on duty some 20 hours
per week.

We will use interested students to deliver and pick-up vehicles and we have identified 11 students so
far who meet our requirements

John Smith is …

{your details}

What additional skills are required?

As a people-based service business, being friendly and helpful to customers is all-important. This will
lead not only to satisfied clients but repeat business and hopefully word-of-mouth recommendations.
An interest in cars and some basic knowledge would be useful, particularly to advise people who are
not sure about what vehicle is best for their requirements.
Good organizational skills are necessary to be able to cope with what can be a pressurized business.
Accidents with vehicles will inevitably happen and you will need to be able to keep calm and act
diplomatically with clients.
Personnel Plan
Our personnel assumptions are based on a shop employee working 40 hours per week at $7.00 per
hour. The mechanic will work approximately 20 hours per week at $15.00 per hour.

As the number of moped rentals increases, the mechanics weekly hours will increase. The owner will
also fill in and oversee the business. The owner salaries with not be drawn until the business is
profitable and all investments have been paid back in full.

Personnel Plan

Shop Help
Part-time students
Mechanics
Management

Strategic Direction

SWOT Analysis

This is a summary of the business's most important strengths, weaknesses, opportunities and
threats.

Strengths of the Business

Excellent quality product

"Which means that" Adds to reputation.

Good management skills.

"Which means that" Well run business

Good ability to extract information.

"Which means that" Can control the business.-

Weaknesses of the Business

New Player.

"Which means that" Credibility problem may affect initial sales

Lack of systems

"Which means that" The company needs to develop systemised operational &

sales techniques or sacrifice profits

Opportunities in the Marketplace

Add-on products such as **

"Which means that" A potentially enormous market for {YOUR COMPANY NAME} to
tap into.

Growing market segments.

"Which means that" {YOUR COMPANY NAME} should target these segments.

Threats in the Marketplace

Increasing supplier prices.

"Which means that" Resulting in reduced profitability.

Declining size of the ** segment.

"Which means that" Need to focus on growing segments to spread the company's portfolio

The Actual Plan

Business Objectives

Corporate Objectives (Goals)

Short Term Corporate

To achieve a sales level of $xxxxx

To achieve profit level of xx%

Long Term Corporate

To achieve sales in 200B of $xxxxx

To achieve sales in 200C of $xxxxx

To achieve sales in 200D of $xxxxx

Marketing Objectives (Goals)

{your product}

#1 Segment: To achieve sales to $xxxxxx

#2 Segment: To achieve sales to $xxxxxx

#3 Segment: To achieve sales to $xxxxxx

Other: To achieve sales to $xxxxxx

New Products

To evaluate and launch new products or services which will turn over $xxxxxx in the first
year.

Other Objectives (Goals)

To not exceed a marketing budget of $xxxxxx

To not exceed a payroll budget of $xxxxx

To not exceed a general overhead budget of $xxxxxx

The major task objectives for each area of the organisation, together with responsibilities
and timings are detailed in the Roll-Out Plan.

Marketing Plan

MARKETING OBJECTIVES

Sales Objective To achieve sales by XX% to $XXX

Sales Objectives by Market Segment.

#1 Segment: To achieve sales to $xxxxxx

#2 Segment: To achieve sales to $xxxxxx

#3 Segment: To achieve sales to $xxxxxx

Other To achieve sales to $xxx

PROMOTIONAL STRATEGIES

Print Advertising

Develop a corporate brochure.

June 200A

Advertise in local publications

Jan 200A
Advertise monthly in magazines that are specifically targeted to the ** and ** segments.

Jan 200A

Advertise monthly in magazines that are aimed at the general industry.

Jan 200A

Lead Generation Program

Conduct monthly on-going lead generation program. Send out monthly direct mail leaflets
with response coupons. Qualify leads and make appointments by using telemarketing staff.

Oct 200A

"Centres Of Influence" Program

Personally contact at least ten potential partners each week.

Produce a monthly newsletter that shows examples of (your products) and how customers
have benefited from using them.

Oct 200A

PR Program

PR release to be initiated each month to various trade journals and magazines.

Jul 200A

Sales Force

Employ telemarketing staff.

Sep 200A

Employ sales specialist for ** segment.

Mar 200A

Implement a new structural program for the sales force, allocating sales reps to accounts and
segments rather than area.

Jan 200A

Organise training program to be implemented.

Jan 200A
Lost Customers

Contact monthly all past customers that have not re-ordered to ask why not and see whether
we can win back their business.

Dec 200A

Follow up Enquiries

Contact all enquirers monthly and determine if they have purchased from a competitor and,
if so, why.

Dec 200A

Existing Customers

Follow up all new customers two weeks after they purchase to ensure they are satisfied with
the product.

Jul 200A

Send quarterly newsletter to existing customers to keep them informed of our other
products.

Jan 200A

Try and up-sell all enquiries for our standard range to our premium range.

Feb 200A

Sales Promotion

Develop an ongoing sales promotion to target existing customers.

Aug 200A

PRICING STRATEGIES

Price Level

Maintain price level in all segments at xx% lower than competitors to reinforce our image.

Jul 200A

Discounts

Offer x% discount for payment with order.

Jul 200A

GENERAL MARKETING STRATEGIES

Competitor Profile

Keep updated competitor profile.

Jun 200A

Marketing information system

Document on every enquiry "How did you hear about us?"

Jul 200A

Document on every order "How did you hear about us?".

Jul 200A

Produce monthly sales reports by product, by market segment, by territory and by sales
representative.

Mar 200B

Financial Plan

FINANCIAL Next Year's Objectives

Net Profit To achieve forecast net profit of $xxxxx.

Gross Profit To increase the average gross margin for

all products from xx% to xx%.

Budget To not exceed the following expense budgets.

Marketing Budget $ xxxxxxx

Payroll Budget $ xxxxxxx

Management Overheads $ xxxxxxx

FINANCIAL STRATEGIES

Cash Flow

Eliminate cash shortage in the traditional tight periods of December to January

 Jun 200A

Collection Days

Reduce the average collection days from xx days to xx days.

Jun 200A

Payment Days

Maintain payment of bills, on average, to xx days.

Jun 200A

Expenses

Develop and implement new policies on approval and signatories on expenses.

Mar 200C

Leases

Pay off the existing lease on capital equipment, thus reducing the monthly financial burden.

Jun 200A

Overdraft

Reduce the overdraft from $xxxxxx to $xxxxxxx

Jun 200A

Wages

Pay all wages on a monthly basis instead of weekly.

Jan 200A

New Equipment

Organise funding for the $xxxxxxx expenditure on new equipment.

Jan 200A

Payback

Ensure a payback on new equipment through sales of one year.

Jun 200B

Inventory

Improve the number of stock turns to xxxxx a year.

Jun 200A

Rent

Negotiate new terms on the premises and reduce existing payments by xx%

Aug 200B

Bank Charges

Renegotiate with the bank and consolidate some outstanding loans with lower interest rates.

Aug 200B

Organisational Plan

ORGANISATIONAL AND MANAGEMENT

Next Year's Objectives

Budget To not exceed the payroll budget of $xxxxxxx

Staff To employ or re-deploy a total of xxxxx full-time and

part-time staff over the next year.

HUMAN RESOURCE STRATEGIES

Organisational

Draw organisational chart.

Aug 200A

Develop incentive scheme related to job requirements.

Aug 200A

Policies and procedures

Develop policies and procedures manual.

July 200A
Employ or re-deploy staff

Employ two mechanics.

Mar 200A

Employ one specialist ** salesperson.

Mar 200A

Employ one marketing assistant.

Feb 200A

Employ one accounts receivable person.

Jul 200A

Training

Carry out training needs analysis.

Jan 200A

Morale

Install suggestion box.

Jan 200A

Organise monthly meetings to follow up tasks

Jan 200A