BUSINESS PLAN – Term Paper

Linenwurk technologies is an automotive uniform and supplies company, based in southern California. Since our incorporation, we have managed to establish ourselves as a leading supplier of automotive products such as synthetic oils and lubricants in a highly competitive industry. With business partners such as REDKAP, our customers get to enjoy the best in industry automotive uniforms that can be custom made to suit customer needs. Our industrial laundry services are amongst the best in the region.

The company intends to maintain its already reputable customer service and quality products to ensure that we carve ourselves a considerable niche in the automotive industry. With highly efficient managerial skills and sound management we expect to increase our net after tax sales from the current standings to a projected 20% while maintaining considerable sales margins.

The company is also planning on expanding by opening up an additional branch in the Californian state. This will be achievable by the adoption of new marketing strategies, service delivery platforms and customer incentives all in an attempt to boost sales and spearhead our expansion. This plan therefore intends to give an outline of our company’s mission and objectives, the key areas of success that we have identified, the available market and how we intend to capture a good share of the market, the existing competition and the course of action our company will take to gain a competitive edge.

Company Description

Linenwurk technologies is a corporation that deals with automotive uniform and supplies. The company mainly based in Apple Valley, southern California although we have a considerable presence in southern California. We aim to provide the best in quality of automotive uniforms and parts to the industry players who include, repair shops, body shops, restoration shops, after market installers and motor dealerships in Southern California and possibly in the near future, to the rest of the state. Our company maintains a strict policy on quality products and excellent customer service that ensures our customers get only the best from us and as such we make sure that we get our products from the best suppliers in the country and abroad. Our direct sale line of products provides our customers with ready and affordable materials on the go so that they can work with a calm mind to maintain the quality services they already offer.

Our Objectives

The main objective of any business organization so to make maximum profits. However, profit making is not an immediate thing, it takes time and efficient planning. Our company understands and appreciates this philosophy and have therefore established the following objectives to attain our long term goal of profitability.

1. Expand our existing product range to better satisfy the existing market

2. Increase our presence in the region by providing superior service to ensure steady growth

3. Attain a net after tax profit of about 20% by the end of the next financial year

Our Mission

Like many other companies, our company has missions that we seek to attain and better. These missions include;

1. Provide our customers with the highest quality products in a timely manner while maintaining a wide range of alternatives to choose from

2. Make appropriate managerial decisions to ensure that the company grows and operates at a steady rate while maximizing on profits

3. Work more on community outreach programs to ensure that as a company we are giving back to the community.

Keys to Success

Our company has identified three main keys to success all aligned to attain company success. All the keys are important the third key however, will definitely serve to give our company a better competitive edge in this highly competitive industry. The keys are as listed below:

1. Ensure that our company only aligns itself with top automotive products in all the sectors that we deal with.

2. The company should secure a second tool distributorship.

3. The company will aim to maintain a 75/25% direct rent to rental ratio

Company Ownership and Management

Linenwurk technologies, dealers in automotive uniform and supplies, is a corporation that is owned by Antonia Acevedo and Monique Acevedo both of whom have equal stake at the company. The company is mainly owned and run by the Acevedo family. With most of the company initial capital funding coming from personal cash investments.

The company is currently managed Tony Acevedo. Tony has a wide range of experience working in the industrial uniform and automotive industry in various states around the country. Before settling down at our company, Tony Acevedo was previously based in Western US working as a General manager and Regional director of operations at his former employment. Tony, therefore, brings in a lot of valuable knowledge, wisdom and a lot of experience that is needed to steer our company in the right direction.

Product Description

Linenwurk technologies as a company, provide our customers with a versatile line of products and service that include but is not limited to; industrial automotive uniforms, synthetic oils and lubricants, logo mats and textiles. In addition to that our company is also offering industrial laundry services to our customers.

In line with our company mission of aligning with the best products in the automotive business, our company has partnered with companies that offer high quality products like Wizard products, Chemical guys and Royal Purple synthetic oils and we are therefore among the many authorized distributors of these products in the Southern California region. Redcap, who are among the largest distributors of industrial uniforms in California, continues to be our leading uniform supplier, supplying us with strong and durable uniforms that can withstand their daily workplace activities.

Linenwurk technologies also offers industrial laundry services to our customers. The laundry processes are primarily done by a US based corporation in Tijuana, Mexico. Although many will question the reasoning behind the choice of location, we have been able to establish that This choice of location offers us the unique advantage of minimizing the cost of acquiring the highly expensive equipment and avoiding the regulatory and compliance cost required in establishing such a large scale plant here in the United States of America.

Market Analysis

Linenwurk technologies focuses primarily on the automotive industry in southern California with plans for future expansion. With our target markets mainly being repair shops, body shops, restoration shops and aftermarket installers who mainly receive our range of automotive products which include but are not limited to synthetic oils and lubricants, repair kits and conversion kits for the aftermarket installers. We also provide a variety of industrial automotive uniforms that can be custom made to suit the specific workplace needs from where it will be used. This can include logos and identity tags as well additional attachments like equipment holders, additional pockets and slots for cable attachments all this can be ordered on behalf of the customer. 

Our services are currently based in southern California although we intend to spread out to the rest of the Californian state in the coming years. With the current market base in southern California shrinking, mainly due to the ever increasing competition and advent of affordable online shopping, expansion and versatility remain our key to capturing and expanding our markets and product range.

Linenwurk as a company is known for its high quality products, on time delivery and irrefutable customer service. These three things serve to keep most of our customers loyal and are the key to our business success in this highly competitive industry. With a considerable share of the existing market our company still remains a key player in the current market and we project that the company will remain a key player even in the emerging markets.

Competitive Analysis.

The automotive industry in southern California is a highly competitive industry. With the increasing demand for quality products, many companies are coming up with different techniques to enable them woo customers and capture a greater market shares. This has been further aided by the rising popularity of social media and widespread adoption of online marketing and online shopping platforms, many companies have therefore switched gears and adopted these techniques to popularize their products.

These approach, however, has led most companies to alienate themselves from their customers since it reduces the normal face to face interactions that certain customers prefer, this negatively impacts customer service as it becomes difficult for a company to gauge customer needs. Our company intends to capitalize on this oversight by ensuring that we not only keep up with technology but also maintain actual contact with our customers.

Most profit oriented companies that are entering this market focus mostly on achieving sales projections rather than on achieving customer satisfaction and they therefore offer very little in terms of after sales customer services and warranty. The ‘Goods once sold cannot be returned’ policy adopted by some industry players continue to really impact customer royalty negatively. 

As a company, we build our reputation on customer satisfaction and we therefore maintain a dedicated customer service center to handle any customer concern as well as provide them with flexible warranties. This enables to better appeal to our customers while also ensuring that the goods we sell and services we provide are nothing short of exemplary and we as a company are nothing short of the best in the business.

Marketing and Sales

As it has been explained in the competitive analysis section above most, most companies are currently shifting towards online marketing to further popularize information of their products. Linenwurk technologies does not intend to be left behind. The company has therefore invested in social media marketing and has brought on board a team of graphic designers and social media experts to help us create an online presence. We also intend to come up with an attractive yet informative company website that will provide our customers with the necessary product information and save the company the costs involved in printing of brochures and catalogues.

As a company, we intend to put a lot of emphasis on personalized customer service as our key selling point. This is because we have realized that with better customer satisfaction, we will be achieving better customer loyalty which in turn will enable us to get more consistent sales and better sales margins.

The company is also focusing on establishing an efficient delivery system that will distribute products to our customers within southern California and the rest of the state of California. This service will be rolled out as an after sale service and will be provided either as free shipping to our California based customers or at a considerable shipping cost to our customers residing outside the state of California. This is aimed at furthering our customer satisfaction policy and working towards our expansion goals.

Furthermore, our prices are among the most competitive in the market today. The prices we offer are highly indicative of our high quality products. Our customers also enjoy price reductions at selected periods, discounts on selected products, and negotiable prices on a few select items. As a company, we offer our customers a variety of payment methods that include the following; debit or credit cards, banker’s checks, online platforms like PayPal and bank wire transfers. Credit facilities are also available to customers who have met our companies credit worthiness criteria.

Funding Request

Linewurk technologies is an automotive uniform and supply company that deals in supply of automotive parts that include synthetic oils and lubricants, logo mats, textiles among others. We are also an authorized distributor of wizard products, chemical guys and Royal Purple synthetic oil. The company also specializes in providing professional industrial laundry services. Linenwurk technologies offers variety of industrial automotive uniforms that can be custom made according to the customer’s specifications. Our operations are currently based in the southern California area where we are also headquartered.  Our target customers mostly comprise of automotive industry players that include; repair shops, restoration shops, aftermarket installers and automotive dealerships.

We believe that with a total of funding of USD (_) we will be able adequately fund our expansion into newer markets as well as improve the range of products that we offer to our customers. Most of the current operational expenses that amount to a tune of USD (_) are currently met by personal investments and bank loans. The company therefore needs a capital injection of USD (_) to further our expansion agenda.

These loans have been and will be secured by company assets that include vehicles and equipment. Furthermore, the company owners, Antonio and Monique Acevedo will offer personal guarantee in their position as owners of the company. We believe that with this cash injection, our company will be able to maintain and better our minimum gross margins of (_) % that we have maintained since the inception of our company, as well as attain average net sales of up to 20% in line with our company objectives.

Upon funding, our expansion will begin and with the dedicated staff, excellent customer service and high quality product offerings we expect to expand into the larger Californian region in the next two years, improve our customer base and branch out more diverse line of products.

NOTE: The highlighted blue parts in the funding request section require the client’s personal input of the business financial values.