Business Plan for E-2 Visa Sample Company LLC Contact: Applicant Email: XXX@info.com Phone: XXX-XXX-XX
Sample Company LLC 2 Sample Company LLC I BUSINESS PLAN Table of Contents EXECUTIVE SUMMARY ................................................................................................ 4 THE E-2 VISA BENEFICIARY .......................................................................................... 5 THE US COMPANY DETAILS ......................................................................................... 5 Company Ownership................................................................................................... 6 Company Location ..................................................................................................... 6 INVESTMENT & FINANCIAL DETAILS ............................................................................ 7 Applicant Investment Details....................................................................................... 7 Financial Highlights ..................................................................................................... 7 BUSINESS DESCRIPTION .............................................................................................. 8 Customers ........................................................ Ошибка! Закладка не определена. Pricing and revenue .................................................................................................... 9 Staffing Needs ............................................................................................................ 9 Operation costs ......................................................................................................... 10 Licensing and Permissions ....................................................................................... 10 CAR HAULING MARKET OVERVIEW ........................................................................... 11 Market size................................................................................................................ 11 Russian Market ......................................................................................................... 13 Competition ............................................................................................................... 16 Competitive Edge...................................................................................................... 16 STRATEGY & IMPLEMENTATION SUMMARY .............................................................. 17 Marketing Channels .................................................................................................. 18 Auto dealers in Russia .......................................................................................... 18 Russian automobile websites ............................................................................... 18 MANAGEMENT SUMMARY ....................................................................................... 19 FINANCIAL PROJECTIONS .......................................................................................... 21 CONCLUSION ............................................................................................................ 29
3 Fresh Motors Miami LLC I BUSINESS PLAN List of Figures Figure 1 Financial Highlights ...................................................................................... 7 Figure 2 Projection for the used car market size worldwide between 2020 and 2027 (in trillion U.S. dollars) ..................................................................................... 11 Figure 3 Survey conducted among the U.S. citizens in 2021................................... 12 Figure 4 New and used light vehicle sales in the United States from 2010 to 2020 (in a million units) ..................................................................................................... 12 Figure 5 Used vehicle average selling price in the United States from 2016 to 2020 (in 1,000 US dollars) ....................................................................................... 13 Figure 6 Total number of used passenger cars (PC) in Russia in May 2021, by leading manufacturers.............................................................................................. 14 Figure 7 Annual sales volume of electric cars in Russia from 2015 to 2019, by type (in thousands)................................................................................................... 14 Figure 8 Annual number of passenger cars with mileage sold in Russia from 2015 to 2019 (in millions) .................................................................................................. 15 Figure 9 Online sales as a percentage of used-car retail sales in Europe and the U.S. between 2017 and 2025................................................................................... 15 Figure 10 The Company‘s business scheme .................................................................. 17 Figure 11 1st Year Company's organizational chart ................................................ 19 Figure 12 5th Year Company’s organizational chart ................................................ 19 Figure 13 Gross revenue forecast............................................................................ 21 Figure 14 Break-even point of the Company............................................................ 23
Sample Company LLC 4 Sample Company LLC I BUSINESS PLAN EXECUTIVE SUMMARY The demand for automobiles has grown worldwide as people's living standards and income increased significantly during the last decade. But at the same time, the relatively high price for the new cars offered by dealers made such purchases unavailable for many potential buyers. In this case, the companies which show the used vehicles act as the solution to this problem. The clients of such companies can purchase a good quality car for a relatively low price. The Company, in this case, acts as a warrant of a fair deal, buying a car for a lower price from the initial owner and selling it to the potential buyer with a margin. The vast and diverse US auto market provides many choices for car enthusiasts worldwide. And its advanced infrastructure makes exporting used cars from the US a technological procedure convenient for entrepreneurs working in this business. What's more, this business is beneficial not only to entrepreneurs or car buyers around the world but also to the United States as a whole: 1. The market is getting rid of used machines, and new modern, efficient, and environmentally friendly cars are entering. 2. It provides jobs for automakers in the US. 3. It also employs many people, from car dealership salespeople to inspection, pre-sales, and logistics specialists. 4. Finally, the US is exempt from having to dispose of old cars since that will be handled by the countries where the vehicles are delivered to Sample Company LLC (now called "the Company") is a car reselling Company operating in the United States of America. It is based in Miami City, Florida, and was founded on the 8th of November 2021 by Applicant. This is the activity that the Applicant began to engage in. The vast connections of the Applicant, the CEO of Fresh Motors LLC, will allow us to create a stable client base quickly. The Company conducts sales of used cars from the USA to Russia. The Company has already started its operations in December 2021. Today, Sample Company LLC is already actively operating. The Applicant will manage the business as a CEO (Chief Executive Officer). The Company is going to continue operations after all legal formalities are completed.
5 Fresh Motors Miami LLC I BUSINESS PLAN THE E-2 VISA BENEFICIARY The Applicant will be the CEO of the Company. The Applicant will guide the Company's management and marketing strategy to maintain its effectiveness and competitive abilities. As the Company's CEO, Applicant will use his professional expertise to make the Company a strong player in the car reselling market in the United States. Moreover, his relations with Russian partners will act as a competitive advantage and significantly increase the Company's awareness among potential customers in Russia. The Applicant has experience in finances, management, retail car sales, client treatment, and interaction with car dealers. From March 20XX to June 20XX, Applicant's worked as a Sales Manager in Premium Club LLC. Occupying that position, Applicants had the following responsibilities: • Maintaining and selling cars • Dealing with clients • Registering documents Since June 2020, Applicant has been working as Sales Director within Premium Club LLC, having the following responsibilities: • Planning the work of the sales department • Team management • Professional team building/training/mentoring • Sale of new and used cars • Organization and control of car sales • Sales plan fulfillment and reporting • Interaction with dealers • Control of customer service standards • Solving difficult situations with clients Besides the professional experience, Applicant has a robust educational background: • In 2021 Applicant successfully graduated from Florida Atlantic University and obtained a bachelor's degree in finance. The Applicant is also a fluent English speaker with a C2 IELTS level. According to the skills of the Applicant and his profound knowledge of English, we can assume he will be able to operate successfully within the USA and lead Sample Company LLC to prosperity. THE US COMPANY DETAILS Sample Company LLC is a company that sells used cars from the USA to Russia. The Company has already started its operational activity and is actively developing. The Company was registered in Florida on the Xth of XXX, 20XX, by Applicant.
Sample Company LLC 6 Sample Company LLC I BUSINESS PLAN Company Ownership The Applicant is the sole owner of Sample Company LLC. The total investment sum is $XXX XXX. Being the CEO, Applicant will hire two managers, a bookkeeper, a secretary, and two automobile detailers. Besides that, he will oversee the Company's financial indicators and supervise employees' effectiveness. Furthermore, the Applicant will coordinate the Company's development by establishing new goals and creating competitive business strategies. Assuming the Applicant's education level, professional experience, and high level of English, he will accomplish all the tasks and responsibilities. Their excellent communication experience and knowledge of the automobile market allow them to manage the Company successfully. The Company has signed a lease contract to rent a warehouse at XXX/XXX-XXX. Company Location Sample Company LLC executed an office lease agreement on the XXth of January and will be physically located at XXX/XXX-XXX. The Company's office will be used for operational and administrative purposes. Moreover, the Company signed a lease to rent a warehouse at XXX/XXXXXX. Sample Company LLC's office will operate during regular business days and hours, Monday through Friday, from 9:00 a.m. to 6:00 p.m. The Company will also address all of its customers' inquiries via phone or email.
7 Fresh Motors Miami LLC I BUSINESS PLAN INVESTMENT & FINANCIAL DETAILS Applicant Investment Details Applicant, the Company's founder and sole owner, plans to invest $XXX XXX, which accounts for 100% of total investments from his fund. He will occupy a CEO position within Sample Company LLC. Financial Highlights The following table and graph illustrate the business performance of the Company during the next five years: Table 1 Major highlights 2022 2023 2024 2025 2026 Gross Revenue Gross Margin Operating Expenses EBITDA Net Profit Profitability Ratios Gross Margin/Revenue EBITDA/Revenue Net Profit % Net Cash Flow Cash Balance Ending Figure 1 Financial Highlights
Sample Company LLC 8 Sample Company LLC I BUSINESS PLAN BUSINESS DESCRIPTION Sample Company LLC is a car reselling company that conducts retail sales of used vehicles from the USA to Russia. The Company's competitive advantage is formed by its owner, Applicant, having indepth knowledge and broad experience in the Russian automobile market. Besides that, thanks to his education and connections with Russian car dealers and customers, the Company has an opportunity to successfully get a robust client base quickly. The economic consequences also favor such business activity because, on the one hand, many car owners would like to sell their cars to buy new ones. On the other hand, there is a shortage of good quality and relatively cheap vehicles in Russia. Hence, Sample Company LLC will fulfill the demands of both buyers and sellers, operating as a vehicle distributor among the X countries – the USA and Russia. In addition to car transportation, maintenance improvements will be made if needed. For example, the car can be recolored or technically upgraded for an extra charge. Hence, the Company's clients can set their vehicles to fit their requirements through the efforts of Sample Company LLC. The combination of the solid entrepreneurial experience of Applicant and the rising demand for the Company's services in the US and Russia make the business conditions prospective and favorable for the Company.
9 Fresh Motors Miami LLC I BUSINESS PLAN Customers As was mentioned above, the Company will act as a car distributor between the two countries – the US and Russia. Therefore, it will have car sellers on one side (USA) and car buyers on the other (Russia) and will maintain relations with both stated groups. The Company's primary customers are Russians who want to purchase a good-quality, relatively cheap car. They are ready to pay for its transfer from the USA. There are no strict limitations concerning the customer's gender, age, or level of education, except that they should have legal permission to drive a car. Pricing and revenue The price for car transportation comprises various services offered by Sample Company LLC. It is assumed that one car will require each assistance listed below at least once. The services provided by the Company and their prices are given in the table below: Service Price Brokerage services Automobile selection On-site diagnostics Defecting Spare parts procurement Detailing services Automobile preparation for transportation Parking fee Locksmithing and body repair Therefore, the final average price for one car is $XXXX, that is, actually, the sum of all the Company's services. The price may increase if a customer, for instance, needs services more than once. Staffing Needs The number of employees will remain stable during the projected period and will consist of 6 employees. Their positions are listed below: • CEO • Manager (X employees) • Bookkeeper • Automobile Dealer (X employees) The Company signed a Lease Agreement on the XXth of January to rent warehouse premises. The table below shows the pay rates of the Company's employees.
Sample Company LLC 10 Sample Company LLC I BUSINESS PLAN Table 2 Pay rates of employees Pay rate CEO Manager Automobile Detailer Bookkeeper Table 3 Calculation of personnel's wages per month 2021 2022 2023 2024 2025 2026 CEO Manager Automobile Detailer Bookkeeper Operation costs The Company's operating costs consist of general expenses. Detailed information about the general costs can be found in the table below: Table 4 Monthly general costs Value per month Rent Business trips Accommodation expenditures Licensing and Permissions The Company will need to obtain a car dealer's license to operate.
11 Fresh Motors Miami LLC I BUSINESS PLAN CAR HAULING MARKET OVERVIEW Market size The used car market size is expected to grow by 25% during the next five years with a CAGR of 3% (figure3) The world is developing quickly, so the turnover of used cars is increasing annually. The positive dynamics of the used car market size are affected by the number of vehicles growing annually, and due to technological progress, more and more types of vehicles appear. Hence, there is a strong growing demand for car sales from those who want to buy a new one because it is more comfortable, environmentally friendly, or for another reason. According to the survey conducted by Statista in 2021 among US car owners who have changed their cars for new ones, most respondents used mid-size vehicles (18%). The results of the survey can be seen below: Figure 2 Projection for the used car market size worldwide between 2020 and 2027 (in trillion U.S. dollars)
Sample Company LLC 12 Sample Company LLC I BUSINESS PLAN Sample CompanyLLC will provide transportation of mid, small, and compact types of cars. As these types of cars are sold more frequently, the Company will have a stable demand for their services. Figure 5 illustrates the number of new and used light vehicle sales in the USA from 2010 to 2020. Both used and new vehicles have positive dynamics (+7% and +21%, respectively), but used cars have slightly lower growth rates (a CAGR of +0,48% compared to 1,41% of new sales). Though new car sales grow faster, the quantitative number of used cars sold is significantly higher than that of Figure 3 Survey conducted among the U.S. citizens in 2021 Figure 4 New and used light vehicle sales in the United States from 2010 to 2020 (in million units)
13 Fresh Motors Miami LLC I BUSINESS PLAN new vehicles sold. That means focusing on used car sales in the short term is more profitable because the demand is much higher in this market. The ever-increasing average selling price proves the growing demand for used vehicles in the USA (figure 6). Figure 5 Used vehicle average selling price in the United States from 2016 to 2020 (in 1,000 US dollars) The average price for used vehicles has grown by 11% with a CAGR of 3% from 2016 to 2020. The average selling price growth indicates that the demand exceeds the current supply, so the companies operating in this industry can increase costs over time.
Sample Company LLC 14 Sample Company LLC I BUSINESS PLAN Russian Market As the Company will interact with the Russian used car market, it is crucial to estimate its statistics (figure 7). LADA – is the most spread used car sold in Russia (37%) of total sales volume is composed of the cars of this brand. As LADA is the only vehicle that occupies a significant share in the used cars market, we can assume that the demand for the cars of other brands is high. Still, the accessibility to vehicles of their trademarks is very low. Hence, Sample Company LLC's operating activity aims to fulfill this gap. Electric cars are the other branch of vehicles currently developing in Russia. According to the research of Liberty Marketing, the volume of cars with mileage sales has increased significantly from 2015 to 2019: Figure 6 Total number of used passenger cars (PC) in Russia in May 2021, by leading manufacturers Figure 7 Annual sales volume of electric cars in Russia from 2015 to 2019, by type (in thousands)
15 Fresh Motors Miami LLC I BUSINESS PLAN The number of cars with mileage sold in Russia increased by 965% during the observed period, with a CAGR of 965% with a CAGR of 120%. Such statistics are favorable for the Company, as the growth of used car sales in Russia can make the resale of cars of this type very profitable. The number of used cars sold in Russia grew steadily during the observing period with a CAGR of 2%. Overall, the indicator increased by 10% during five years, meaning that the used cars market in Russia is growing like the US one. Finally, we need to compare Europe and the US markets to ascertain that operating in the US and Russian used cars markets is profitable and prospective. The graph above shows that the shares of used cars in online car sales are increasing in the US and Europe. This dynamic suggests that this business branch is profitable and prospective, as the demand for used cars, including in the US and Russia, is growing worldwide. Figure 8 Annual number of passenger cars with mileage sold in Russia from 2015 to 2019 (in millions) Figure 9 Online sales as a percentage of used-car retail sales in Europe and the U.S. between 2017 and 2025
Sample Company LLC 16 Sample Company LLC I BUSINESS PLAN Competition Though the used car exporting business from the USA is quite well-known and, to some extent, everyday business activity, the level of competitiveness in this market is not high. The first connection of the Company to the existing market sales channels in Russia awoke great interest and fast response among many of the internal players of the Russian market, so the Company has established partnerships with several car companies and dealerships quickly. Competitive Edge The presence of the Applicant in the USA and a systematic approach towards the business conduction form the competitive advantage in the operational sphere. In addition, such services as car parking and detailing, included in the Company's business strategy, are also vital and demanded advantages of Sample Company LLC. The high level of online business development in Russia and an excellent interpretation of its general trends by Applicant allows the Company to cut marketing expenses significantly.
17 Fresh Motors Miami LLC I BUSINESS PLAN STRATEGY & IMPLEMENTATION SUMMARY The Company started operating and providing retail used car sales in December 20XX. The company business model is presented in Figure 11 below. Currently, the cars are being purchased by the Company through the following markets: • www.copart.com • www.iaai.com • www.manheim.com To carry out pre-sales preparation of cars, the Company rented X, XXX combined square feet of Commercial Warehouse located at XXX/XXX-XXX and XXX/XXX-XXX. The Applicant plans to invest $XXX XXX to expand Company's operational activity and increase the Company's awareness both in the USA and Russia. The general strategy of Sample Company LLC is to buy US-used cars and transport them to Russia. The relations of the Applicant, an experienced Russian car market entrepreneur, will act as a driver to creating the Company's robust client base. Figure 10 The Company‘s business scheme
Sample Company LLC 18 Sample Company LLC I BUSINESS PLAN Marketing Channels Auto dealers in Russia Several auto dealers in Russia were highly interested in cooperation with the Company. The Company has received written proposals from dealers such as "Bavaria Automobiles" – an official dealer of BMW Motors in Nizhny Novgorod and "Galaxy" dealer in Kstovo city. These auto dealers have the following business concept: they work directly with customers and conduct face-to-face consultations concerning the interested car brands and particular models. After the client's demand is indicated, the request to the Company, which searches for the needed car in the USA, is sent. After the targeted car is found, the scout company carefully inspects it, and the final price is announced. After the client's acceptance and pre-payment, the Company purchases the car in the USA, realizes detailing, and exports it to Russia. Russian automobile websites There are many reliable car marketplaces in Russia where used cars are traded. The most common are Auto.ru and Drom.ru. The Applicant has experience in the car industry and can adequately set the work at an online marketplace. The Applicant already receives a steady inflow of requests. One source of clients is online auto clubs, such as the Russian BMW owners auto club (BMWClub.ru).
19 Fresh Motors Miami LLC I BUSINESS PLAN MANAGEMENT SUMMARY The management structure of the Company for Year 1 will be as follows: When the business develops, it is planned to remain the exact headcount and structure of employees: Figure 11 1st Year Company's organizational chart Figure 12 5th Year Company’s organizational chart
Sample Company LLC 20 Sample Company LLC I BUSINESS PLAN As the Principal Investor & CEO, the Applicant will plan, direct, and coordinate the Company's operational activity. He will be key in developing the entity and business activity to achieve its growth targets. Specifically, the Applicant will be responsible for the following: • Direct and coordinate financial and operational activities, increasing the Company's efficiency. • Analyze operations to evaluate company performance • Optimize cost to maximize business value • Direct and coordinate pricing/sales/provision of services • Direct, plan, and implement policies and objectives of the Company to ensure continuing operations, maximize returns on investments, and increase the business's productivity • Set Company's goals and targets In a small business or a startup, unforeseen circumstances are always possible, especially when a company is just getting set up. That is why the owner's physical presence is vital during this period, as they can address all the issues on time. Besides having problem-solving responsibilities, Applicant will be responsible for the following: • Relationships with key partners • Possible staff changes His educational background and professional experience will be vital to the Company's successful development.
21 Fresh Motors Miami LLC I BUSINESS PLAN FINANCIAL PROJECTIONS The following table is a six-year revenue forecast. Direct costs include all costs which can be directly tied to revenue. Table 5 Revenue and COGS forecast 2022 2023 2024 2025 2026 Revenue Car sales Total Revenue Direct Cost of Revenue Total Direct Costs Gross Margin Gross Margin/Revenue The table below shows the units and pricing assumptions underlying the revenue forecast: Table 6 Unit forecast 2 021 2 022 2 023 2 024 2 025 2026 Units Cars sold Total cars sold Price per Unit The Company plans to reach total capacity by the end of the 2nd operational Year. Due to the increase in productivity, the Company's revenue will also grow Yearly. The Company's personnel forecast is outlined below. Personnel wages indicate the average salary per position, and personnel costs are the total wages for each job. Table 7 Personnel forecast 2022 2023 2024 2025 2026 Year-end personnel count CEO Manager Automobile Detailer Figure 13 Gross revenue forecast
Sample Company LLC 22 Sample Company LLC I BUSINESS PLAN 2022 2023 2024 2025 2026 Bookkeeper Total personnel Personnel wages CEO Manager Automobile Detailer Bookkeeper Personnel costs CEO Manager Automobile Detailer Bookkeeper Total costs The Company intends to deploy its funding to maximize growth and profitability. The profit and Loss table below shows gross revenue equals revenue minus direct costs. The "bottom line" or profit (measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses. Table 8 Profit and Loss Statement 2021 2022 2023 2024 2025 Gross revenue COGS Salary and wages General costs Other expenditures Total costs Earnings before interest, taxes, depreciation, and amortization Amortization Earnings before interest and taxes Interest paid Profit before taxes Federal net income tax Federal self-employment tax State net income tax Payroll tax Net profit Profit accrual
23 Fresh Motors Miami LLC I BUSINESS PLAN Break-even occurs when revenue equals expenses. According to the financials, the break-even will occur in November 2022. The chart below demonstrates when the Company is expected to become profitable. The following depictions of the Company's projected cash flow show that the Company expects to maintain sufficient cash balances over this five-year plan. The "pro forma cash flow" table differs from the "pro forma profit and loss" (P&L) table. Pro forma cash flow represents the actual cash flow in and out of the Company. In comparison, the revenue and expense projections on the P&L table include "non-cash" items and exclude funding and investment illustration. Table 9 Cash flow statement 2 022 2 023 2 024 2 025 2 026 Cash at the beginning of the period Cash received from customers COGS Operating profit Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Intangible assets Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed. Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow CFADS Cash at the end of the period Figure 14 Break-even point of the Company
Sample Company LLC 24 Sample Company LLC I BUSINESS PLAN The balance sheet below highlights the Company's projected assets, liabilities, and capital: Table 10 Pro forma balance sheet 2 021 2 022 2 023 2 024 2 025 2026 Assets Fixed assets PP&E Investments inprogress Current assets Accounts receivable Cash TOTAL ASSETS Equity and liabilities Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
25 Appendix: Year 1 Financials by Month Table 11 Cash Flow Month 1 2 3 4 5 6 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Intangible assets Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed. Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow CFADS Cash at the end of the period
26 Month 7 8 9 10 11 12 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs) Interest paid Taxes Cash flow from operating activities Land Intangible assets Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed. Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow CFADS Cash at the end of the period
27 Table 12 Balance Sheet Month 1 2 3 4 5 6 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Cash TOTAL ASSETS Equity and liabilities Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
28 Month 7 8 9 10 11 12 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Cash TOTAL ASSETS Equity and liabilities Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
29 CONCLUSION Let's summarize the data presented above: • The used car industry market size is growing, with a moderate CAGR of 3%. • The project's investment period is short, and the Company started operating in December 20XX. • The Applicant will invest $125,000, and the Company will reach a break-even point in the XXth month. The total Company accrued profit will be $X, XXX thousand by the 5th Year, big enough to make the investment idea attractive. Based on all the above, it can be concluded that financing the project is a productive investment with low risk.
www.masterplans.ruRkJQdWJsaXNoZXIy MjcxODE=