AUTO REPAIR

SERVICES
Kawit, Cavite
 Introduction
Thousands of franchised and independent auto repair
shops in PH -- usually concentrate on vehicle repairs
and services only.
May stock some of the most common repair parts, but
majority of needed parts come from aftermarket
vendors or local dealerships.
Automotive repair service shops arguably have
become the lifeblood of the industry with a mission to
combine proficient technical service in line with
outstanding customer care.
Integral part of day-to-day operations is keeping up
with technological advancements and vehicle
complexity know how or familiarity.
However
Personalized
Service
IELs Auto Repair and Services
Shop
 Services Offered
Auto Maintenance Services
Ignition
Fuel injection
Oil, lube and filters
Spark plugs
Undercar Services
Brakes
Chassis
Suspension (Shocks/Springs, Rack and Pinion, etc)
Tires
 Services Offered
Electrical Services
Batteries
Starters and Alternators
Cooling Services
Air conditioning (repair and installation)
Belts and Hoses
Radiators

Hours of Operation: 8:00am to 5:00pm, Monday

to Saturday
Machineries, Equipment and
Tools
Machineries, Equipment and
Tools
Type of Business Organization

Sole Proprietorship Form

Easy to set-up
My shop - my call
All profits accrue to me
Greater flexibility in decision making

Initial capital requirement of P600,000.00

Rental space area of 200 square meters
Personnel Aspect
Manager
Bachelors in Business Administration - any
major
Completed a TESDA formal auto repair training
program
Has vehicle know-how and can estimate repair
costs
Has at least 2 years exp in sales and
management
Has a familiarity about the business
Has great communication skills
Has savvy management skills: planning,
organizing and controlling day-to-day activities
Personnel Aspect
Technician/Mechanic
Must possess at least a certification from
Vocational/Technical Training from TESDA
At least one year of relevant experience in
automotive repair and maintenance
Must be physically fit; not more than 40
years old
Must be patient and willing to work under
pressure
Must be honest and courteous
Personnel Aspect
Secretary/Cashier
A graduate of any four-year course in
Business Administration
Have a basic knowledge in Accounting or
Bookkeeping
Must have good communication skills
Must be prompt, dependable and
trustworthy
Personnel Aspect
Aircon Specialist
Must have completed a formal training
program from TESDA
Must be at least a high school graduate
Must have a work experience of being an
aircon specialist for at least 2 years
Must have the knowledge to examine
vehicles and estimates of repair costs
Must be physically fit to perform his job
Personnel Aspect
Helper
Must be at least a high school graduate
Must be physically fit
Must have the experience in performing
preventive maintenance on vehicles
Must be at least 20 to 30 years old
 Compensation Plan
Monthly salaries to be provided are stated
as follows:
Manager P12,000
Technician/Mechanic P10,000 each
Secretary/Cashier P8,500
Aircon Specialist P9,500
Helper- P8,000
(Annual increase of 5% on their basic
salaries will be given)
Sick and vacation leave credits will be
provided
13th month pay, equivalent to 1 month
 Market Analysis
Involves the study of customers needs / wants;
how to satisfy them
It involves managing demand, which, in turn
involves managing client relationship --it helps us
analyze, plan, implement and control the program
designed to achieve our objectives
Simply put, no matter how proficient and efficient
our staff is, it will not thrive without a thorough
and careful study and analysis of the demand and
target market
The main concern of IELS Auto Repair Shop is to
satisfy our customers and develop a relationship
with them
 Demand Analysis
IELS Auto Repair and Services Shop will be
targeting vehicle owners who are residing in
Noveleta, Kawit and TABLE
Rosario.
2
Number of Registered Vehicles
(As of 2013)
TARGET PLACES Number of
Registered
Vehicles
Noveleta 876

Kawit 998

Rosario 1,215

TOTAL 3,089
 DemandTABLE
Analysis
3
Projected Number of Registered Vehicles
(Noveleta, Kawit and Rosario)
Year Number Of % Increase Projected
Registered Number Of
Vehicles Registered
Vehicles
2013 3,089 0% 3,089

2014 3,089 1% 3,120

2015 3,120 2% 3,182

2016 3,182 3% 3,277

 Demand Analysis
TABLE 4
Projected Demand

YEAR Projected % of Projected

Number of Demand for Demand
Registered Auto Repair (No. of
Vehicles & Services Vehicles)
2014 3,120 60% 1,872

2015 3,182 65% 2,068

2016 3,277 70% 2,294

 Demand Analysis
TABLE 4.1
Projected Demand (For Auto Maintenance)

Year Projected Auto Projected

Demand Maintenanc Demand
(No. Of e
Vehicles)
2014 1,872 35% 655

2015 2,068 35% 724

2016 2,294 35% 803

Demand Analysis
TABLE 4.2
Projected Demand (Undercar Services)

Year Projected Undercar Projected

Demand Services Demand
(No. Of
Vehicles)
2014 1,872 30% 562

2015 2,068 30% 620

2016 2,294 30% 688

 Demand Analysis
TABLE 4.3
Projected Demand (Electrical Services)

Year Projected Electrical Projected

Demand Services Demand
(No. Of
Vehicles)
2014 1,872 20% 374

2015 2,068 20% 414

2016 2,294 20% 459

Demand Analysis
TABLE 4.4
Projected Demand (Cooling Services)
Year Projected Cooling Projected
Demand Services Demand
(No. Of
Vehicles)
2014 1,872 15% 281

2015 2,068 15% 310

2016 2,294 15% 344

 Demand Analysis
TABLE 4.5
Summary of Projected Demand
Types of 2014 2015 2016
Services
Auto 655 724 803
Maintenanc
e
Undercar 562 620 688
Services
Electrical 374 414 459
Services
281 310 344
Cooling
Services
TOTAL 1,872 2,068 2,294
 Demand Analysis
TABLE 4.6
Projected Demand
(Service Consumption per Vehicle per Year)

Average Projected
Projected No. of Demand
YEAR Demand times per (Total
(No. of year for Service
Vehicles) Auto Consumpti
Repair on)
Services
2014 1,872 3 5,616
2015 2,068 3 6,204
2016 2,294 3 6,882
 Supply Analysis
Services Offered Prices
Name of Competitors in Kawit
Speedway Autogrooming -change oil -P600 to 800
-body repair -P2,500 to 3,500
-mechanical repair -P2,500 to 5,000
-overhauling -P3,500 to 6,000
4 Chart Tint -car tint -P3,000
-change cable -P300 to 2,000
-undercar -P800 to 3,000
-audio set up -P350 to 2,000
-electrical -P350 to 1,500
Name of Competitors in Noveleta

Sy Aircon & Auto Works -car aircon -P850 to 5,000

-auto repair -P2,500 to 5,000
-engine trouble -P1,500 to 8,000
Rodrigo Ricartes Car Repair Shop -electrical -P500 to 1,500
-mechanical -P1,500 to 6,000
-car painting -P3,000 to 20,000
Name of Competitors in Rosario

CJ Automotive Service -electrical -P500 to 3,000

-mechanical -P500 to 4,000
-car painting -P3,500 to 6,000
-car wash -P90 to 150
Smart Fix Autocare -body repair -P2,000 to 4,000
-painting -P3,000 to 8,000
-car aircon -P850 to 20,000
-auto repair -P2,000 to 8,000
-engine trouble -P1,500 to 7,000
 Supply Analysis
TABLE 6
Projected Supply
YEAR Estimated Estimated Estimated Total % of Supply Projected
Supply for Auto Supply for Supply for Estimated Increase Supply
Repair Shop in Auto Repair Auto Repair Supply
Kawit (12 clients Shop in Shop in
per day) Noveleta (14 Rosario (18
clients per clients per
day) day)

2014 1,248 1,456 1,872 4,576 2% 4,668

2015 1,273 1,485 1,909 4,668 3% 4,808

2016 1,311 1,530 1,966 4,807 4% 4,999

Demand and Supply Analysis
TABLE 7
Projected Unfilled Demand

YEAR Projected Projected Projected

Demand Supply Unfilled
Demand
2014 5,616 4,668 948

2015 6,204 4,808 1,396

2016 6,882 4,999 1,883

Demand and Supply Analysis
TABLE 8
Projected Market Share
YEAR Projected % of Projected
Unfilled Market Market
Demand Share Share
2014 948 85% 806

2015 1,396 90% 1,256

2016 1,883 95% 1,789

Demand and Supply Analysis
TABLE 8.1
Projected Market Share
(For 4 Services)

Types of Services 2014 2015 2016

Auto Maintenance 282 440 626
35%
Undercar Services 242 377 537
30%
Electrical Services 161 251 358
20%
Cooling 15% 121 188 268

TOTAL 806 1,256 1,789

 Pricing Strategies
TABLE 9
IELS Auto Repair and Service Shop Price List
Yea Auto Electrical & %
Maintenance Undercar Cooling Increa
r Services Services Services se
201 P450 (small P400 (small P500 (small 0%
Repair Jobs) repair jobs) repair jobs)
4 P800 (large P700 (large P800 (large
Repair Jobs) repair jobs) repair jobs)
P1,200 (routine P1,000 (routine P1,500
maintenance) maintenance) (routine
maintenanc
e)
201 P460 small P410 small P510 2%
P820 large P715 large small
5 P1,250 - routine P1,100 - P820 large
routine P1,550
routine
Factors Affecting the Market

Economic Condition
Number of Vehicles
Competition
 Marketing Program
Referrals
Client Relations
Free Check-up/Estimate
Leaflets and Brochures
Tarpaulins
 Financial Analysis
IELS Auto Repair and
Services Shop
Organizational
Cost

Planning costs:
Business Plan 10,000 P 10,000
Registration, licensing and
permits:
Licensing and
Permits:

DTI P 500
Baranga
y 500

Mayor's permit 20,000

BIR 3,000 24,000

Legal Fees 3,000 27,000

Representation expenses 5,000

Total 42,000
 IELS Auto Repair and Services Shop

Income Statement for the 3-year ended December 31, 2016

Sales Revenue 2014 2015 2016

Auto Maintenance 35% 225,600.00 360,800.00 532,100.00
Undercar Services 30% 169,400.00 269,555.00 402,750.00
Electrical Services 20% 128,800.00 205,820.00 304,300.00
Cooling 15% 96,800.00 154,160.00 219,300.00
Total 620,600.00 992,350.00 1,460,466.00

Less: Expenses
Organization Cost 42,000.00 - -
Salaries 624,000.00 655,200.00 687,960.00
Benefits 40,704.00 42,824.40 44,943.60
Rent 48,000.00 50,400.00 52,920.00
Utilities 36,000.00 39,600.00 43,560.00
Transportation 5,000.00 5,500.00 6,050.00
Advertising 20,000.00 10,000.00 10,000.00
Repairs and Maintenance 10,000.00 10,500.00 11,025.00
Depreciation Expense (Note
1) 33,600.00 33,600.00 33,600.00
Supplies Expense 100,000.00 105,000.00 110,250.00
Total Expenses 959,304.00 952,624.40 1,000,308.60
Net Income -338,704.00 39,725.60 460,157.40
Depreciation Expenses (Schedule 1)
Annual
Equipment Unit Price Quantity Total Price Useful Life
Depreciation
Heavy Duty Air Compressor-
Powercraft 35,000.00 1 35,000.00 3 11,666.67

Jump-starter - Cobra 3,500.00 1 3,500.00 3 1,166.67

Manual gear oil pump Honiko 5,500.00 1 5,500.00 3 1,833.33

Portable battery load tester 1,600.00 1 1,600.00 3 533.33

Refrigerant Leak Detector Device 1,800.00 1 1,800.00 3 600.00

Brake Bleeding Kit 4,000.00 1 4,000.00 3 1,333.33

Digital multi-meter-fluke 80280B 1,000.00 1 1,000.00 3 333.33

2-Ton hydraulic floor jack 1,000.00 3 3,000.00 3 1,000.00

Crescent CTK170CMP Mechanics
Tool Set 28,000.00 1 28,000.00 3 9,333.33

Siegen Comfort grip pliers (5pcs.) 1,200.00 2 2,400.00 3 800.00

Steel/Metal Ramp (1 set) 15,000.00 1 15,000.00 3 5,000.00

Total
97,600.00 100,800.00 33,600.00
 IELS Auto Repair and Services Shop

Statement of Changes in Equity

For the 3-year ended December 31, 2016

2014 2015 2016

Capital Beginning - 261,296.00 301,021.60

Investment of Owner 600,000.00

Add Net Income (338,704.00) 39,725.60 460,157.40

Capital End 261,296.00 301,021.60 761,179.00

IELS Auto Repair and Services Shop
Statement of Financial Position
for the 3-year ended December 31, 2016

2014 2015 2016

ASSETS

CURRENT ASSETS
Cash in Bank 166,096.00 239,421.60 733,179.00
Prepaid Rent 8,000.00 8,000.00 8,000.00
Supplies Inventories 20,000.00 20,000.00 20,000.00

Total Current Assets 194,096.00 267,421.60 761,179.00

LONG TERM ASSETS

-
Equipment (Net) 67,200.00 33,600.00

Total Non Current Assets 67,200.00 33,600.00 -

TOTAL ASSETS 261,296.00 301,021.60 761,179.00

OWNER'S EQUITY
Filoteo Capital 261,296.00 301,021.60 761,179.00
IELS Auto Repair and Services Shop
Cash Flow Statement
for the 3-year ended December 31, 2016

2014 2015 2016

Cash Inflow from Operations
Collection from Customers 620,600.00 992,350.00 1,460,466.00

Cash Outflow from Operations

Cash Outflow from Operating Expenses
(Note 2) (953,704.00) (919,024.40) (966,708.60)

Net Cash Inflow from Operations (333,104.00) 73,325.60 493,757.40

Cash Outflow from Investing Activities

Cash Outflow from Purchase of Equipment (100,800.00) - -

Cash Inflow from Financing Activities

Investment by Owner 600,000.00
Net Cash Inflow from Financing Activities 600,000.00 - -