- Country: South Africa
- Industry: Transport, Automotive, Aviation
- Stage: Start-up
- Investment size: $110,000 / min. $75,000
- ROI: 40% in 5 years
- Type of investment: Debt, Equity
I would like to start this business in the small city of Port St. Johs located in the rural area of Eastern Cape, South Africa.
I'm sole proprietor of this business venture. Consumers in the rural areas feel neglected by the automobile industry because this business is mostly in big cities or urban areas.Consumers in the surrounding have to travel to big cities or urban areas to access these facilities and there's a great demand for this kind of business since consumers in rural areas are increasingly buying cars, trucks, tractors, buses, mini-buses and mini vans.
Our biggest competitor for our automobile spares shop are automobile and car replacement parts manufactures namely Midas, Autozone, Township and Micra auto spares. Tyger wheel, Supa-Quick, HQ and Dunlop are some of my competitors for our wheel alignment business but you can only find them in big cities or urban areas.
The biggest town nearest to me is Mthatha and it is 98km away. Most roads in the rural areas are still dirt or gravel roads and consumers automobiles will often carry out repairs. Our business will be a great help to them and its closer to them than the competitors which is our advantage. Our disadvantage and great threat is the heavy rain, as our business will be slow due to consumers not being able to drive safely to our premises.
Our company will grow opening up a service station for carrying out repairs. An auto-body replacement parts shop, an auto-body shop and an audio entertainment shop are further options for business we can grow up to.
Our company believes in labour policies, business insurance, AIDS policy, company policies and employment policies therefore we will apply these in our business.
Social responsibility will be part of our business once it has found its footing. We can for example sponsor a school through sport which will be free publicity of our business.
Advertising in our local newspaper, brochures, banners, automobile stickers and local radio are some of the publicity measures we will undertake to inform consumers about our whereabouts and what our business offers.
Technology plays an important role in our business, from using 3d wheel aligners, computer entry for easy access of parts, electronic paying machines for the consumer and our employees being computer literate.
We will offer BEE policies where our employees will have the opportunity of becoming entrepreneurs or buy shares in the business.
This business venture will help disadvantaged youth skilled or not skilled to get employment to better their lives and those of their families. Your financial investment will be highly appreciated, with a guarantee of total returns of our investment capital and we will work hard but smart to reach our goals of success.
Our business is in the rural area, whereas wheel alignment business and automobile spares shops are mostly situated in big cities or urban areas.
An automobile industry is growing faster in the rural areas than previously, with every permanently employed consumer opting to buy a new or used car.
Consumers in the rural areas mostly buy pre-owned automobiles due to the fear of owing financial asset, but this is changing with the new generation.
Rationale for the deal
We will be creating employment for the disadvantaged youth of the rural area.
Our business will be closer to the consumer, being able to provide a wide range of car parts and also keep up with the market latest car models.
Our business will grow from strength to strength, starting as an automobile spares shop and a wheel alignment business to an auto-body shop, auto-body replacements parts shop and an audio fitment centre.
Use of financing
The funding will be used for:
- Training employees
- Buying machines (wheel aligners, wheel balancers, tyre changers, power tools, car lifters and many more)
- Purchasing stock for the wheel alignment business and the automobile spares shop
- Fitment of our machinery
- Shelving in our business, utilities, rates and our business uniform
- Advertising in-store and outside just before we open
Opportunity for the investor
The investor will have full access to our books and to all the information on how the business is run. They will also have free access to our business at any given time.
With the team of employees already in place and eager to work harder and grow the business we can guarantee full return on his or her investment. Maybe one day we will be even registered in the stock exchange.
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