29.03.2024

Business plan for tire fitting

1. A brief investment memorandum. Tire fitting shop is a workshop located in a non-residential location near the road with a large traffic of cars. The workshop provides services to replace tires, hot and cold tire repair, as well as balancing the wheels of cars.

This type of business is attractive due to the fact that at the opening in the period of a sharp increase in demand, the payback period will be about 4 months. A break-even point will be reached as early as the second month of work.

The maximum flow of customers to the workshop is formed in the autumn period (during the mass transition to winter tires) and in the spring (during the mass transition to summer tires).

You can start a business with the service of cars, and then distribute the services to the owners of trucks.

The main audience – men from 20 to 45 years, owning one or more cars.

To attract customers, common methods of advertising are used – printing leaflets, advertising on billboards, contextual advertising on the Internet. In addition, to form a flow of regular customers, it is necessary to show an individual approach. To do this, a customer base is created, and the manager reminds everyone about the need to change tires in time, or notifies about new promotions and profitable offers.

Before you start, you must register as an IP. The tax system is UTII.

When choosing a room you need to focus on the location of the target audience, as well as the proximity of traffic interchanges and roads with high traffic. The decoration of the premises must comply with the requirements of the SES and the Fire Service.

The optimal schedule for the tire fitting shop is from 6.00 to 24.00. In this case, customers have time to come to you both before work and after. At the initial stage, it is enough for two masters to work continuously during the shift. The general staff will consist of 6-7 employees, including the accountant on outsourcing.

Initial investment in the project – 1 100 450 rubles .
The time to break-even point is 2 months .
The payback period of the project is 4 months .

2. Description of business, product or service

The number of cars on Russian roads every day is skyrocketing. And in connection with the contrast of the weather and a large number of broken roads, each car requires replacement of tires, pads, as well as balancing of the wheels. Consequently, while the automobile market is growing, the demand for the services of the tire fitting shop will also increase.

As we live in an age of high technology, and the main resource is information, the opening of the tire fitting becomes possible even for a novice entrepreneur, who knows the basics of car service. The main thing is to determine the main factors for the success of this type of business, to organize the process of providing services competently, to assemble a team of professionals and to forecast the cash flows before the payback period of the project.

To begin with, it is necessary to determine which services the tire fitting workshop will provide. In this business plan, the opening of a stationary tire fitting is being considered. In this case, the entire list of services associated with the operation of the wheels is at the location of the workshop. However, with the development of business and the formation of a base of regular customers, it will be possible to consider the possibility of developing the direction of mobile tire fitting. In fact, this is an on-site workshop that renders services in a convenient place for the client (including directly on the road).

In addition, tire fitting is classified according to the type of serviced cars: cars, trucks, exclusive (as a rule, expensive sports cars). You need to start a business with the service of cars.
The list of basic services provided by the tire fitting shop includes: removal and installation of the wheel, dismantling of the tire from the disk, assembly and balancing of the wheels, cold and hot repair of tires and cameras.

Reception of cars is carried out by prior appointment or in the order of the live order. Two masters are constantly working, which allows us to promptly serve a large stream of motorists.
This type of business has a pronounced seasonality: November-December, as well as March-April are periods of excitement, because all motorists change their tires. During these months, revenue from one point can be up to 700,000 per month, since 15 to 25 cars are serviced daily. However, in other months, demand may drop to 4-5 people per day, i.e. The revenue per month will be about 100,000 per month.

To ensure a constant flow of customers, the company is constantly improving in the areas of service, marketing, optimal pricing.

3. Description of the market

The target audience of the project can be considered according to the following main parameters:

View of the car. When the project is launched, the main customers are the owners of cars. In the future, it is possible to consider truck maintenance.

Territorial proximity. If you have a tire fitting in a residential area, then the target audience will consist of residents of these areas. If the tire service is on a busy road, then the customers are passing cars. And, the more often the motorist’s route passes through the tire fitting shop, the more likely it will turn into a permanent customer.
Gender and age of the client. More than 60% of clients are men in economically active age from 20 to 45 years.

In a city with a population of more than 1 000 000 people, the number of tire shops can be over 600. However, among them about 30% are workshops in «trailers» with a low level of service and a weak reputation. In such places, customers call in only in an emergency, when there are no trusted workshops nearby. Approximately 25% of the market is occupied by car dealerships and large car-care centers, whose prices are higher than average market prices. Consequently, only 50% of all companies operating on the market are direct competitors.

In view of the great competition in the automobile service market, the reputation and advertising of your workshop is of great importance to customers. This means that the work should focus on a high level of service and carefully consider the advertising campaign.

What does quality service include?

  • Possibility of preliminary recording by phone;
  • Waiting room (cooler with water + TV and internet);
  • Convenient opening hours: from 6.00 to 24.00 every day;
  • Possibility of going to the night shift by appointment;
  • Issuance of SSR for the services provided;
  • The possibility of providing mobile tire fitting services (in the future).

As a rule, if the customer liked the service and is satisfied with the location of the tire fitting shop, he will regularly serve from you not only your car, but also the cars of other family members.

Location is the main and most significant competitive advantage. Since the list of services of tire fitting is rather limited and does not require high qualification of workers, the client chooses a workshop for convenience of location. As already noted, tire fitting should be located either in a densely populated residential area or on a highway with a large flow of cars.

The main criteria for choosing a room:

  • residential quarter;
  • the proximity of the traffic intersection;
  • visibility of a sign and a room on the side of a busy road;
  • the proximity of a large gas station.

Thus, the client can use the services of tire fitting by appointment, at any convenient time (before / after work), and also wait for your car in a comfortable environment.

4. Sales and marketing

The main goal of the marketing activities in this area of ​​business is to turn visitors into regular customers. And in order for a regular customer to serve more than one car, you need to look for potential customers who have either a family car park or a working fleet.

So, we should divide the advertising companies: general advertising and attraction of corporate clients.

General advertising is a set of marketing tools that are used constantly.

These include:

Advertising on billboards . It is important that the billboard should be located near the location of your workshop. The client should see the poster, have time to navigate and immediately call on you. That is, before placing, you must consider the route of the potential. Pay attention to the offer that you make to the buyer using the inscription on the billboard. Specify the time («Change the tires in 15 minutes») or the current promotion («Change the 16 radius at a price of 15»). Also, be sure to print the scheme of travel, so that the «hot» client does not miss the right turn.

Business cards and flyers. Printed products are good because it is fairly easy to distribute, and the main offer for the customer will be a discount when presenting the flyer. You can distribute it by mailboxes in the residential area where your workshop is located, or at the nearest gas station.

Internet advertising. Most of the buyers are looking for the necessary products or services via the Internet. In order for the potential buyer to find you, you need to run contextual advertising(Yandex.Direct or Google AdWords). It will not be superfluous to create groups in social networks . As the business develops, you will be able to think about your own website, but at the initial stage of the business this is inappropriate.

Attraction of corporate clients is an individual work with companies that deal with transportation or delivery. This is a company of cargo transportation, a taxi, as well as services to the population related to the need for delivery (furniture production, change of carpet, etc.). However, since it is initially planned to service only cars, you need to focus on taxi services. Prepare a corporate offer with favorable prices, contact the leadership directly and try to negotiate mutually beneficial cooperation.

As for sales, you need to establish a base of regular customers and periodically call them with a reminder of the need to change tires, or with a notice of acting shares and special offers.
In addition, the system of introducing bonus cards is very popular. With each purchase, the client will be credited with 2% of bonuses, which he can pay off next time in the same workshop. For this purpose, a computer with a corresponding purchase accounting program is installed in the workshop.

5. Production plan

The first thing you need to do to organize a business is registration as an individual entrepreneur. The registration procedure takes about a week. The tax system is UTII. The tax is calculated on the basis of the number of employees employed. The tax is paid quarterly. For registration you will spend about 2,000 rubles (when applying to a legal organization).
Next, you need to find a room for the workshop.

Room structure:
workshop for mounting tires – 40 sq.m,
utility room – 9 sq.m,
bathroom – 6 sq.m,
waiting room – 10 sq.m.
Total – 65 sq.m.

From the point of view of the Sanitary and Epidemiological Station, tire fitting is a type of car service. Consequently, the workshop requires:

  • presence of a waterpipe;
  • a separate room (outside residential buildings and public buildings);
  • presence of ventilation;
  • explosion-proof fixtures and electrical appliances;
  • availability of heating;
  • the presence of at least one window;
  • finishing floors and walls with moisture-proof and explosion-proof materials;
  • The presence of a bathroom and a shower cabin for the staff.

Rental of premises – 45 000 rubles. Furnishing and finishing of the premises will cost 200,000 rubles.
After finishing the finishing work, you should start buying equipment. You will need a tire changer, a balancing machine, a jack, a pneumatic grinder, a compressor, etc. The total cost of equipment and supplies is 400,000 rubles.

As for employees, at first all organizational work, as well as work with clients, should be performed by the head of business. So you will receive feedback from customers as quickly as possible, establish a system of accounting for purchases, you can quickly eliminate all the shortcomings. In this case, two masters should be in the workshop daily: the senior in shift and the master. Salary is completely piece-rate: the senior master receives 20% of the order, the master receives 15% of the order. In the staff there are 4 employees (two per shift).
Installing a computer with full software, phone, TV, as well as a cooler will cost you 35 000 rubles.

Next, you should do an advertising campaign. It is necessary to make a bright readable sign, as well as the facade of the building to decorate in a corporate style. This should be allocated about 80 000 rubles. The general advertising campaign will be about 40 000 rubles per month (printed materials + contextual advertising + billboards). Total – 120 000 rubles.
After that, you can safely accept the first customers.

6. Organizational structure

The staff is formed on the basis of the duties that you need to perform for a full-fledged business.

At the initial stage, the entire administrative and organizational part of the work can be performed by the manager. His responsibilities include developing a marketing strategy, communicating with customers, seeking new opportunities for development and broad market coverage, establishing contacts with suppliers. In addition, it is he who pays for the work of the masters, forms the staff, gives the order to work in the shop, monitors the order of execution of orders.

At a time when customers will become too many and one person will not be able to cope with all duties, the manager will enter the state. In the future, there will be two managers working on the following schedule: 2 working days after 2 days off.

Their duties will include:

  • Keeping customer accounting system;
  • Work with clients by phone and in a stationary mode;
  • Forming a recording album for each master;
  • Calculation of clients and discharge of SSR.

The salary of the manager is formed from two parts: fixed and interest. The stable salary is 10,000 rubles a month and 5% of the total amount of orders for all the changes in the work of this manager.

Work in the shop is performed by masters. Two people work simultaneously: a senior master and a master. Any application first comes to the senior master, who decides on the delegation of certain stages of work to a junior employee. Also the senior master also gives ready work to the client. He also answers questions that may arise from the client. It is because of the additional responsibility of his salary is higher than that of an ordinary master.

The schedule of work: two working days after two days off from 6.00 to 24.00. Salary depends on the number of customers served. The senior master – 20% of daily revenue, junior employee – 15%. Calculation with employees occurs on a daily basis.

As for the accounting of employees, not all of them are formalized for work, since this directly affects the amount of the tax paid on the UTII system. In most cases, employing two people, not including the entrepreneur. Consequently, the official number of employees in the state is 3 people.

In addition, the company uses the services of an accountant for outsourcing. The cost of services is 5,000 rubles per quarter (as the reporting is delivered).

Salary fund
Staff Salary per 1 employee (rub.) The number of employees Salary Total (rub.)
Owner of the tire fitting shop 45,000 1 45,000
Head master 40,000 2 80,000
Master 33,750 2 67,500
Accountant 5,000 1 5,000
General Fund of ZP 197 500

7. Financial plan

Initial investment

The total amount of initial investment taking into account current expenses in the first month is 1,100,450 rubles. About 40% of the total amount are investments in equipment, as well as repair and decoration of the premises.

As for the reduction of initial costs due to the purchase of equipment used, the maximum discount on the equipment purchased in good condition will be 50%. At the same time, the saving will be 196,225 rubles. However, in this case the probability of equipment failure is several times higher. Take this risk on yourself or do not skimp on buying new equipment – it’s up to you.

Initial investment in the opening of a tire fitting shop
Name Cost, rub.)
Costs for registration of documents
Registration in state and tax authorities, opening of a current account 2,000
Total 2,000
Investments in basic equipment
Tire Mounting Machine 70 000
Balancing machine 119 000
Compressor 35,000
Jacks (2 pcs.) 30 000
Impact wrenches (2 pcs.) 11 000
Pneumatic drill 1 500
Workbenches, metal (2 pcs.) 25 000
Expander 2,000
Vulcanizer 24,000
Tool kit 10,000
Hoses + Filter Lubricant 5,000
Bathtub for inspection 4,950
Delivery, installation, connection 30 000
Starter kit of consumables 25 000
Total 392 450
Investments in internal and external equipment
Decorating the room 200 000
Alarm system 15,000
Ventilation system 50,000
Cooler with water 3,000
TV 15,000
Computer with software 15,000
Signboard + decoration of the facade 80,000
Total 378,000

Recurrent costs

Recurrent costs
Name Cost, rub.)
Fixed costs
The rent is 65 sq.m. per month. 45,000
Amortization of equipment 8,000
Tax of the UTII (quarterly) 20,000
Variable costs
Marketing expenses (printed products, contextual advertising) 15,000
Expenses for the purchase of consumables 10,000
IP contributions to the FIU, MHIF (quarterly) 7,000
Social Security contributions 500
PHOT 197 500
Communal payments 7,000
Communication and Internet 3,000
Security 5,000
Unexpected expenses 10,000
Total 328 000

Revenues of the tire fitting shop vary depending on demand. That’s why tire fitting is better to open on the eve of an increase in demand due to the transition to winter tires. In this business plan it is assumed that the workshop opens in September. In October, demand is significantly increased, reaching a maximum in November (more than 20 people are served daily).

Month of work 1 2 3 4
Number of clients per month 100 400 700 600
Average cost of services 1 500 1 500 1 500 1 500
Total income 150,000 600,000 1 050 000 900,000
General consumption 182 600 367,100 497 600 445 100
Rent (sq.m.) 45,000 45,000 45,000 45,000
Communal payments 7,000 7,000 7,000 7,000
FOT (salary + percentage of revenue) 94 100 251 600 409,100 356 600
Taxes of UTII 0 20,000 0 0
Contributions for employees in the FSS (every month) 500 500 500 500
IP contributions to the FIU, MHIF (quarterly) 0 7,000 0 0
Marketing expenses (printed products, contextual advertising) 15,000 15,000 15,000 15,000
Unexpected expenses 10,000 10,000 10,000 10,000
Communication and communication 3,000 3,000 3,000 3,000
Amortization of equipment 8,000 8,000 8,000 8,000
EBITDA (PE, including Taxes and Depreciation) -24 100 268,400 560 900 463 400
EBIT (state of emergency taking into account Taxes) -32 100 260 400 552,900 455 400
Net profit -32,600 232 900 552 400 454,900
Accrued Cash Flow (taking into account the initial investment) -1 124 550 -856,150 -295,250 168 150

Thanks to a competent choice of the opening season, an exit to the break-even point is possible within 2 months. And the payback period of the project is from 4 months.

8. Risk factors

As the main factor, which is an obstacle in the way of the rapid conquest of the automobile service market, it is possible to single out a huge competition. The fact is that tire fitting services are often provided by car-care centers that represent a range of services, as well as large car dealerships, which include a service center. Minimizing the risk of «burn out» allows for an advantageous location (often customers do not want to go to a service located far from home), as well as optimal pricing. Discounts for regular customers, promotions for new motorists, a bonus program – all this will help you form a circle of regular customers.

Another risk is low-quality servicing by employees. Insufficient courtesy of the manager or negligence of the master can significantly affect the profit of the owner of the workshop. In order to level this risk, the salary of employees is set as a percentage of revenue.

In order to serve an uninterrupted flow of customers, all equipment must function properly. Any malfunction can lead to a stoppage of work in the workshop, and this is unacceptable, since no customer will wait for the problem to be fixed, but go to another tire service. Therefore, the senior master should understand the technology, and part of the monthly profit should be directed to the formation of a reserve fund, in order to immediately buy new equipment if necessary.

A significant change in demand for this type of business is not expected, as the number of cars is constantly growing. However, in periods of low demand (summer, winter), revenue may fall so low that it will not cover costs. In addition, this is not an excuse to leave workers without wages. Therefore, the business owner must constantly create a reserve fund to timely cover the loss and pay compensation to the workforce (minimum 500 rubles per day per person).

Still, the main measure to reduce any kind of risk is a well thought out and constant advertising campaign. As soon as you reduce advertising costs or stop reinventing new methods of attracting customers, they immediately go to competitors who use more active marketing.

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