Business plan- used cars

In America, the middle-class families comprise the highest proportion of the American population. Most of these families in America have a desire to live like those in the upper class though money could the limitation. For example, some of the families in the middle class may not afford to buy a brand new sedan that they wish to have and own one. Other families or individuals may wish to drive a sports car to work every morning but the cost to buy a brand new sports car is too high for their moderate income earner (Kiplinger, 2002). However, these families and individuals may settle for anything closer to their dreams as long as the prices are affordable. The category most affected by the high prices of brand new cars is mostly the youths. Most youths in America have a dream of owning their dream cars, but the income they get from their part-time jobs plus the token from parents is not enough to buy a brand new car. Thus, this creates a market gap where I can chip in and offer used cars at affordable prices.

I plan to set up a showroom in Wichita Kansas where I would sell used cars. I intend to specialize mostly in SUVs and sports cars as they are likely to find a market in the young market. I intend to rent a room just within Wichita that will be the showroom for my cars. However, since I do not have much money to start up the business, I will buy two vehicles from my savings; one sports car and a SUV. These two vehicles will be on display at the show that will also be my office. Meanwhile, I would be marketing my business. Before I gather enough capital to buy more vehicles for my showroom, I would be getting orders from clients and then give them a period within which I would deliver the car. I intend to buy my vehicles from both the local and foreign markets though I will only deal with three year and below old vehicles or those below the mileage of 10,000 km. Mostly, I would be importing my SUVs from Japan as they seem to be much cheaper. My clients will place their orders with the specifications of the cars they need and then pay a pre-determined deposit. The deposit will assist me in importing the vehicle, and then I will receive the remaining funds in installments after delivery.

Value proposition:

Our company offers high-quality second-hand cars in unbelievable conditions and at the fairest prices in the market. Our highly qualified engineers inspect our cars before we delivered them to our customers, and we allow our customers a guarantee of two years of service by the vehicles we sell. We deliver our cars to our customers according to their specifications, and we always mind about the wallet of our clients. Since our inception, we have met the needs of our customers who wish to reduce the expenses associated with the acquisition of high-quality second-hand cars.

The problem we are solving:

The recent economic crisis has reduced the purchasing power of most of the American citizens. The prices of commodities have gone up, especially the prices of new cars (Kiplinger, 2002). Thus, most Americans may find it difficult to afford to buy new cars. These American citizens need to drive to work, college or travel with family members, but they cannot afford to purchase a car of their own. In addition, most students have dreams of owning a car while still at school or immediately after employment but their financial status cannot allow. Most students have low incomes from either gift from parents of from the wages that they receive in their part time jobs making it hard or impossible to buy their dream cars on cash. Besides, students who get new employment after college may take some months or years to save for a car. Our company will rescue these individuals from these financial limits as we will avail high-quality second-hand cars at affordable prices and terms of sale.

Our idea is special for two reasons. One, our clients will place their orders together with the specifications they desire cars to have. Then, we will search for the car within the country and even outside the country. Our engineers will modify the car according to the specifications of the client before we deliver it to them. This will ensure that we deliver quality cars to our customers, and the customers would have a chance to drive the perfect car they dream of driving as a result of the modifications. The practice would make us special from other car dealers since they rarely modify their vehicles. Secondly, we will be selling our cars at hire purchase, and this would make us unique as very few dealers operate on hire purchase.

I think I am highly suited to address this problem since I have mechanical engineering background that would enhance the modifications on client cars. In addition, I have vast knowledge of how the hire purchase operates. I usually assist in operating our family business that applies hire purchase back in my hometown. The experience I have will be a huge boost to my management roles.

The target market:

I have no specific target market since the doors of my business will be wide open to anyone willing to transact with us. Though, I will target the students in Wichita University more. This target group would include the students who are continuing with their studies as well as those who have completed their education and found some employment. The students would be a good number enough to keep my business running. Majority of the students leaving the campus would wish to purchase a car within a few months of employment, and these would create a good market for my company.

Marketing strategy:

I intend to use the internet to market my business. First, will create the company’s website that will contain all the information about the company, and the website will be easily accessible by potential customers. Then, I will take my advertising campaign in the social media. Through the social media such as Facebook and Twitter, I will be able to reach the potential buyers since almost every young person who is my major target group use the social media (Lieb, 2011).

Competitive advantage:

I think my company has a competitive advantage since we will locate our showrooms near the Wichita state University, and there is virtually no other car dealer located in the locality. Wichita produces new employees each year and the nearness to the University will give the students a chance to explore our services. As the students go out into the job market, we hope that they will return to place an order. 

References:

Kiplinger. (2002). DRIVE A CAR YOU CAN'T AFFORD. Kiplinger's Personal Finance, 56(6), 87.

Lieb, R. (2011). AD TARGETING GETS SOCIAL. Advertising Age,82(14), C-1-C-8.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in pre written college essays. If you need a similar paper you can place your order from pay someone to write my research paper services.