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Executive Summary
Beck’s Auto will operate in Portland, Oregon, and is owned by Harrison Beau and Peter Witteck.
The mechanic industry is filled with businesses that upcharge clients or recommend services they don’t need. This is why the founders, Harrison and Peter, have a list of clients who have been coming to them for over ten years at their previous auto shop jobs. When people find a good mechanic, they keep them.
These clients have attested that they will follow Harrison and Peter to their new location. The client roster is worth at least $10,000. Starting the business with this foundational client base is a major advantage.
Beck’s Auto values honest services at honest prices. This value will be the core principle guiding all of our business activities.
The company is an LLC; this registration structure protects us more than other suitable types, such as a partnership.
Our target market is anyone in Portland with a passenger vehicle. Our industry benefits from every customer having similar needs, and we are choosing not to limit ourselves by segmentation.
Beck's Auto is seeking a $120,000 small business loan, alongside $30,000 of founders' equity, to fund equipment, operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $541,280 | $718,460 | $853,920 |
| Gross margin | 44% | 43% | 45% |
| Net profit / (loss) | $6,396 | $33,453 | $58,110 |
Company Overview
Beck’s Auto is owned by Harrison Beau and Peter Witteck in a 50/50 split. The company is registered as an LLC operating in Portland, Oregon. The business will be in the city center to promote easy client access.
Beck’s Auto offers a wide range of mechanical services for vehicles. Our services include maintenance, wheel services, and repairs to various vehicle parts. Many auto shops have taken to specializing in certain services, so our range of services is designed to set us apart and provide more value to a wider range of people.
Harrison Beau and Peter Witteck, Beck’s Auto’s cofounders, have been working together in auto shops for 15 years. They have dreamed of opening their own auto shop and are working to make Beck’s Auto a reality. Their years of experience will benefit the business in many ways.
They have clients that will follow them wherever they go, which means Beck’s Auto starts trading with an established customer base.
They have been in the industry for years, know the best suppliers, and have the advantage of knowing what works already. This saves time in research and trial and error.
Legal structure: LLC
Mission: To deliver exceptional auto repair shop services to clients in Portland, Oregon, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $541,280, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $718,460, and hire additional staff
- Year 3: Improve net profit margin, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
Automotive repair and maintenance is a steady, needs-driven market: every vehicle on the road needs regular servicing, and repairs follow wear, age and accidents regardless of the wider economy.
Trust is one of the most important factors for success in the automotive repair and maintenance market. Service industries have many client horror stories of poor providers. People tend to find a mechanic they trust and stay with them for years. This is both an advantage and a disadvantage. It is an advantage if a business already has clientele but a pitfall if it is just starting. New businesses should focus on steadily creating client relationships and delivering value that will keep people returning.
Any small business entering the industry competes with chain auto repair shops. Several other smaller shops offer similar services to Beck’s Auto in Portland. The smaller shops have the advantage of lower costs but an inconsistent customer base.
Getting in the door with affordable yet high-value services will grant a new business a foothold. Delivering quality will build a loyal customer base. People are willing to pay more for something valuable, so raising our prices once we have demonstrated our value in the market is a realistic next step.
Customer analysis:
The great majority of households in Portland own at least one car.
Beck’s Auto includes each of those households in our target market. Our services are for any vehicle that is typically used for regular consumers. That means we service motorcycles and campers as well. The equipment used for trucking is different enough that we decided not to include this segment in our target market.
The ideal Beck’s Auto customer looks like this:
- Owns one or more motor vehicles
- Regularly services their vehicle
- Needs a repair done
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Jiffy Lube | Established brand, wide reach | Higher price point, less personalised |
| Midas | Strong marketing, national presence | Generic offering, less specialist focus |
| Christian Brothers Automotive | Competitive pricing | Standardised, less tailored service |
Beck's Auto's competitive edge: Honest pricing, a broad range of services under one roof, and a loyal client base built over 15 years set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Our services include
- maintenance,
- wheel alignment
- tire and rim fittings
- and repairs
Sales in a service industry depend on customer relationships, market positioning, and quality of service. Most of our revenue will come from performing routine services. Vehicle maintenance services are something every vehicle owner has to do and are a more stable form of income than repairs. We also plan to position ourselves as rims specialists to attract the vehicle modification market. The rest of our revenue will come from our other services.
Pricing strategy: Pricing is set to be competitive within the Portland, Oregon, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for auto repair shop services in Portland, Oregon, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Portland, Oregon, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $37,890 (7% of projected revenue)
Operating Plan
Launch tasks:
- Louis Beau (Marketing): develop a social media marketing strategy. Deadline: ongoing.
- Harrison Beau (Operations): oversee the stock count in the shop and storeroom. Deadline: May 5th.
- Peter Witteck (Finance): finalise the loan application and submit it. Deadline: February 1st.
Louis Beau fills the part-time technician and marketing support role shown in the staffing plan below.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Harrison Beau (Owner / Director) | Full-time | Full-time | Full-time |
| Peter Witteck (Co-owner / Mechanic) | Full-time | Full-time | Full-time |
| Technician / Marketing support | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for auto repair shop operations in Portland, Oregon, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Peter Witteck, Cofounder. Peter is one of the two founders of Beck’s Auto. His management duties will include overseeing supplier relationships and accounts. He has 15 years of experience as a mechanic, and his passionate dedication to the business’s success will propel us in profound ways. To prepare for his role in doing the accounts, he is doing training with accounting software for businesses and consulting with a professional.
Harrison Beau, Cofounder. Harrison is the second cofounder of Beck’s Auto. His management duties will comprise overseeing operations, human resources, and sales. He also has 15 years of experience as a mechanic. He is known for his expertise in fitting the best rims and optimizing car performance, which will attract a very lucrative market.
Both Harrison and Peter will perform the services offered by Beck’s Auto in addition to their managerial duties.
They are aware that this is not sustainable in the long term, so the staffing plan moves the technician role to full time and adds support staff in Years 2 and 3 to free more of their time for management.
New hires should have experience in the automotive industry and formal training to back them up. They should value integrity and customer service and strategize an ethical organization.
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $541,280 | $718,460 | $853,920 |
| Direct Cost of Sales | $140,730 | $183,210 | $216,040 |
| Production Payroll | $152,000 | $209,600 | $236,800 |
| Other Cost of Sales | $10,830 | $14,370 | $17,080 |
| Total Cost of Sales | $303,560 | $407,180 | $469,920 |
| Gross Margin | $237,720 | $311,280 | $384,000 |
| Gross Margin % | 43.9% | 43.3% | 45.0% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Sales and Marketing Payroll | $18,500 | $19,200 | $20,100 |
| Advertising/Promotion | $33,400 | $32,100 | $34,700 |
| Other Sales and Marketing Expenses | $4,490 | $5,300 | $5,900 |
| Total Sales and Marketing Expenses | $56,390 | $56,600 | $60,700 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $21,400 | $38,600 | $61,900 |
| Depreciation | $11,075 | $13,750 | $15,912 |
| Dues and Subscriptions | $1,850 | $1,950 | $2,050 |
| Professional Fees | $9,300 | $6,200 | $6,700 |
| Rent | $60,900 | $62,700 | $64,600 |
| Software Purchases | $7,400 | $8,100 | $8,600 |
| Insurance | $14,600 | $16,300 | $17,500 |
| Telephone and Internet Access | $2,600 | $2,750 | $2,900 |
| Utilities | $11,800 | $13,100 | $14,200 |
| Miscellaneous | $6,900 | $8,700 | $9,900 |
| Payroll Taxes | $19,190 | $26,740 | $31,880 |
| Total General and Administrative Expenses | $167,015 | $198,890 | $236,142 |
| Total Operating Expenses | $223,405 | $255,490 | $296,842 |
| Profit Before Interest and Taxes | $14,315 | $55,790 | $87,158 |
| EBITDA | $25,390 | $69,540 | $103,070 |
| Interest Expense | $5,554 | $9,964 | $7,555 |
| Taxes Incurred | $2,365 | $12,373 | $21,493 |
| Net Profit | $6,396 | $33,453 | $58,110 |
| Net Profit/Sales | 1.2% | 4.7% | 6.8% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $476,326 | $632,245 | $751,450 |
| Cash from Receivables | $51,422 | $81,785 | $99,084 |
| Subtotal Cash from Operations | $527,748 | $714,030 | $850,534 |
| Additional Cash Received | |||
| New Long-term Liabilities | $120,000 | $0 | $0 |
| New Investment Received | $30,000 | $0 | $0 |
| Subtotal Cash Received | $677,748 | $714,030 | $850,534 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $211,090 | $294,140 | $350,680 |
| Bill Payments | $288,335 | $373,119 | $425,586 |
| Subtotal Spent on Operations | $499,425 | $667,259 | $776,266 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $14,200 | $21,800 | $24,100 |
| Purchase Other Current Assets | $11,800 | $3,800 | $3,300 |
| Purchase Long-term Assets | $88,600 | $21,400 | $17,300 |
| Subtotal Cash Spent | $614,025 | $714,259 | $820,966 |
| Net Cash Flow | $63,723 | ($229) | $29,568 |
| Cash Balance | $63,723 | $63,494 | $93,062 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $63,723 | $63,494 | $93,062 |
| Accounts Receivable | $13,532 | $17,962 | $21,348 |
| Inventory and Other Current Assets | $11,800 | $15,600 | $18,900 |
| Total Current Assets | $89,055 | $97,056 | $133,310 |
| Long-term Assets | |||
| Long-term Assets | $88,600 | $110,000 | $127,300 |
| Accumulated Depreciation | ($11,075) | ($24,825) | ($40,737) |
| Total Long-term Assets | $77,525 | $85,175 | $86,563 |
| Total Assets | $166,580 | $182,231 | $219,873 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $24,384 | $28,382 | $32,014 |
| Subtotal Current Liabilities | $24,384 | $28,382 | $32,014 |
| Long-term Liabilities | $105,800 | $84,000 | $59,900 |
| Total Liabilities | $130,184 | $112,382 | $91,914 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $0 | $6,396 | $39,849 |
| Earnings | $6,396 | $33,453 | $58,110 |
| Total Capital | $36,396 | $69,849 | $127,959 |
| Total Liabilities and Capital | $166,580 | $182,231 | $219,873 |
| Net Worth | $36,396 | $69,849 | $127,959 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $541,280 | $718,460 | $853,920 |
| Materials and subcontractor / direct labour | $303,560 | $407,180 | $469,920 |
| Gross profit | $237,720 | $311,280 | $384,000 |
| Gross margin | 44% | 43% | 45% |
| Salaries and wages | $59,090 | $84,540 | $113,880 |
| Marketing and advertising | $37,890 | $37,400 | $40,600 |
| Rent and utilities | $72,700 | $75,800 | $78,800 |
| Other operating costs | $53,725 | $57,750 | $63,562 |
| Total operating expenses | $223,405 | $255,490 | $296,842 |
| Interest and income tax | $7,919 | $22,337 | $29,048 |
| Net profit / (loss) | $6,396 | $33,453 | $58,110 |
Break-even analysis:
- Estimated fixed monthly costs: $18,600
- To cover fixed costs, Beck's Auto needs to generate approximately $42,400 in monthly revenue
- Break-even is projected to be reached in Month 7 of trading
Key financial assumptions:
- Revenue growth of 33% in Year 2 and 19% in Year 3 based on planned capacity expansion and marketing investment
- Materials and subcontractor / direct labour estimated at 55-57% of revenue across the forecast period, consistent with industry benchmarks
- Staffing costs, including technician wages, set at 35-37% of revenue before payroll taxes (39-41% including them), scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget set at 7% of revenue in Year 1 and about 5% in Years 2 and 3; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Beck's Auto is seeking a $120,000 small business loan which, with $30,000 of founders' equity, will fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $88,600 |
| Working capital (about 2 months of fixed costs) | $38,400 |
| Marketing launch | $13,500 |
| Legal, licences, and professional fees | $9,500 |
| Total | $150,000 |
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