Once the market plan is successful, we will provide services that are performed including rental, consignment sales, storage, repair/maintenance of vehicles and detailing. In Phase I we will be looking for a facility for an internal showroom for the Northeast location. This will include one to two car garage stalls for repairs and maintenance of vehicles plus additional space at the back of the facility to perform detailing on autos.
Once the above is successful, we will commence with the phases of the entity identified in the following pages below.
Phase I: The rental portion of the business. Growth of the company will be cautiously moderate starting out with one vehicle and marketing them for rental. This is to see how successful this business model can become.
Phase II: If phase I is successful, we will be securing additional investors or SBA financing. There are environmental conditions for operating these types of vehicles in the Northeast during the colder climates in the wintertime. The peak season in the Northeast will be from Spring to late Fall. Look for Southern facility.
Phase III: We will then trailer these vehicles to our Southern location in Florida from winter to spring. This will allow the company to continue to generate revenue year-round. If the southern facility is successful, we may choose to decide to use this location throughout the year.
We have based our financial data on generating revenue from three revenue streams:
Revenue Stream 1: Being a rental business which is based on a 60% rental level of vehicles dedicated to this portion of the business. This translates into 31 weeks of revenue from each vehicle in this sector for the company. Once these rental vehicles hit 70K to <100K miles they will be sold on the lot or at auction. This revenue will be utilized to pay out investors and pay down debt while allowing for the procurement of new vehicles for rental purposes. The data will be reviewed to see which vehicles have generated the most revenue for the company. These will be the next autos we will purchase.
Revenue stream 2: will be generated from vehicles to be sold via consignment from customers.
Revenue Stream 3: will be generated from the repair and maintenance of vehicles, and detailing vehicles on an annual basis.
