Business plans are created to establish and sustain a business’s future in the market. It is meant to address concerns involving the operation side, the financial side, the marketing, and the sales side of the business. As we’ve mentioned, business plans are also often created to secure investments or capital budget if it’s still a startup business. Hence, when creating a business plan, the strategies laid out should show that the business is capable of handling all the challenges the market brings, as well as leverage on whatever growth opportunities come their way. A used car business plan should present all of those aspects as well. There are no strict formats required when making a used car business plan. To make the business plan effective, however, it should contain at least the following essential elements to it. 1. Executive Summary An executive summary provides a brief overview of what the used car business looks like. It includes a brief description of how long it has been established or the purpose it has been established, the kind of vehicles it services, how it operates, where it gets its used vehicles from, as well as the goals and objectives of the company. It also gives a quick look into the current market condition of used car businesses, the targeted market, and the competitors. Aside from that, it also lists the core members that make up the business. Often, executive summaries contain a mission and a vision statement. The mission statement describes the reason or the purpose for the business plan, while the vision statement explains what the business hopes to achieve within a given timeframe. 2. Products and Services The next section of your business plan should contain the type of vehicles you are servicing, as well as whatever services or added-value services you offer for your customers. It could be that you are in the business of buying a particular type of vehicle, such as luxury or sports type, or just about anything random. Services, or added-value services, are what you offer to your customers who chose to buy vehicles from your shop, trade, or sell their second-hand cars to. This is also the part where you make a quick rundown of how much your vehicles are priced at, including what are the warranties or services attached to them. You could also indicate if your shop is purely selling used cars or if it’s accepting trade-ins. Services could include free drop-off or pick-up from customers’ residences, or free maintenance for a given period. 3. Market Analysis A market analysis takes a look at the current market conditions that the used car business is involved in. It looks at the market trend, growth opportunities, and challenges in the market. The result of the market analysis section will be the basis of creating later on the marketing and sales strategy of the business. Doing a SWOT analysis is one way of studying the market situation. SWOT means Strengths, Weaknesses, Opportunities, and Threats aspects that could affect the used car business. Strengths are those features of the business that makes it stand out from the rest. It could be that the business has a great after-sales customer service experience, or it could also be that they sell the most trusted quality second-hand cars in this side of the region. Weaknesses are those factors that limit the success of the business. It could come in the form of lack of manpower such as sales personnel, lack of equipment and tools to service the cars, or it could even be lack of budget to upgrade the shop’s facilities. Opportunities are those aspects that the business could use to boost their business’s success, such as using social media to promote their shop. Threats are those factors that could potentially harm or put the business at risk such as an oversaturated used car business market or an increase in taxes. 4. Marketing and Sales Strategies Both the marketing and the sales strategies are created based upon the goals and objectives of the business. A marketing strategy is about targeting potential customers and making them into actual purchasing customers. While a sales strategy is about positioning and selling the products and services to the target market. A marketing strategy would be utilizing online digital marketing platforms, such as social media, social networking, websites, SEO marketing, and even email marketing to promote the used car business. A sales strategy could include cold calling, partnering up with other brands or businesses, tailoring or customizing a used car according to the customer’s needs, offering added-value services, and so on. 5. Financial Statement The financial statement section is where the financial condition of the used car business is laid out. This section is usually the deciding factor for potential investors. If the investors see fit the financial statements as well as the strategies presented are feasible, then it’s a go for the funding! A financial statement typically includes a cash flow statement and a balance sheet statement.