The Appliance Repair Service Financial Model and Dashboard provides you with full and real-time control of your profit and loss, balance sheet, and cash flow statements. Please see the video below to see how it works!
1.0 Executive Summary
The purpose of this business plan is to raise $75,000 for the continued development and expansion of an appliance repair business based in Tampa, Florida. Appliance Repair Service, LLC (“the Company”) was founded by Matthew Wallace. The business will provide both onsite and offsite repairs of common household appliances. In addition to providing these services, the Company will acquire inventories of older appliances that are in need of repair with the intent to resell them for a substantial profit.
1.1 The Operations
The first revenue center for Appliance Repair Service will come from the ongoing repair of appliances for both residential and commercial clients. Management anticipates that 70% of its revenues through these operations will come from the residential sector. The Company will maintain ongoing relationships with manufacturers in order to operate in an outsourced yet authorized capacity. Management has already begun to develop these relationships.
In addition to these operations, the Company will acquire inventories of appliances that are in need of substantial repairs. The business will refurbish these products with the intent sell them to the general public. Given the cost of new appliances, Management sees a substantial opportunity to provide these products to customers within Tampa.
The third section of this business plan will further discuss the services and operations of Appliance Repair Service.
1.2 Financing
The Company is currently seeking to acquire $75,000 in order to launch operations. Matthew Wallace will contribute $15,000 towards the venture. This business plan assumes that the Company will receive a seven-year loan carrying a 7% interest rate.
Moving forward, Appliance Repair Service could easily expand its operations with additional business loans or revolving credit facilities. In regards to the use of a business line of credit, Management would acquire this type of credit facility to acquire inventories of appliances that can be repaired and resold. The Company may also acquire a business loan to acquire additional vehicles in order to boost revenues. These events are not expected to occur within the next three years.
1.3 Mission Statement
Appliance Repair Service’s mission is to provide comprehensive and cost effective repair solutions for residential and commercial clients throughout Tampa.
1.4 Management Team
Matthew Wallace has been an appliance repair technician for the past twelve years. He will be able to render services along with his staff to the Tampa market while developing Appliance Repair Service into a lucrative and economically stable enterprise.
1.5 Sales Forecasts
1.6 Expansion Plan
The Company will acquire additional vehicles and hire additional staff in order to expand the operations of Appliance Repair Service. These expansions will be financed with retained earnings. As a means of non-organic growth, the Company may acquire existing appliance repair services that can be integrated into the business’ ecosystem.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Appliance Repair Service, LLC. The business is a limited liability company registered in the State of Florida.
2.2 Required Funds
The $75,000 sought in this document will be used as follows:
Matthew Wallace will provide $15,000 towards the development of Appliance Repair Service.
2.3 Investor Equity
A private investment is not required at this time.
2.4 Management Equity
Matthew Wallace will continue to remain as the sole owner of Appliance Repair Service, LLC.
2.5 Exit Strategy
As appliance repair services are highly stable businesses, the Company could be sold to a third-party for up to three times the previous year’s earnings. This valuation may be higher based on the highly predictable income streams that the business generates from sales of repaired appliances.
3.0 Operations
The primary revenue center for the business will come from the ongoing repair of washing machines, dryers, dish washers, freezers, and refrigerators. The business will receive income from service calls, which will be billed at $100 per hour plus parts (with anticipated gross margins of 50%). At the onset of operations, the Company have two technicians on staff. The business will become an authorized provider of repair services among numerous major brands.
One of the unique aspects of the Company’s operations will come from the continued acquisition, repair, and sale of appliances. As new appliances are very expensive (especially as a result of inflation and supply chain issues), Matthew Wallace sees a substantial opportunity to develop this into a highly lucrative secondary stream of income. The Company’s facilities will have all of the necessary tools to fix any make or model of appliance. The Company will use numerous regional online marketing strategies to promote sales of repaired appliances.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Currently, the economy is doing reasonably well. After substantial turmoil as a result of the pandemic, the economy has undergone a complete correction. Unemployment rates remain near historical lows while interest rates have begun to decline. Inflation rates have become to abate as the US Federal Reserve has implemented proper monetary policies.
However, issues with the economy will not impact the Company’s ability to generate revenue and remain profitable. During times of economic recession, people are more likely to have their appliances repaired rather than replaced. Appliance Repair Service will generate substantial high-margin revenue coupled with moderate gross margins from the sale of refurbished appliances. The business will have highly controllable underlying operating costs.
4.2 Industry Analysis
There are 55,000 companies that provide appliance repair services. Each year, these businesses aggregately produce over $5 billion of revenue each year.
One of the common trends within this industry is to integrate sensor technology into appliances in order to better diagnose issues. The Company, through its training operations, will remain at the cutting edge of technology as it relates to completing repairs. As right-to-repair laws continue to be passed, it is expected that the demand for appliance repair services will continue to increase.
4.3 Customer Profile
The demand for appliance repair services is ubiquitous. All households have a number of large-scale appliances that will ultimately need repair from time to time. In regards to the demographic profile that Management will use in conjunction with marketing operations, the following is noted:
• Annual household income ranging from $65,000 to $200,000
• Lives within 15 miles of the Appliance Repair Service headquarters
• Will spend $100 to $1,000 per repair
In this section, you can further expand upon the demographics that you will target within your respective market. This includes examining the number of households, average number of appliances per household, median income, population density, and median home value. These statistics will assist you in determining the best ways to reach your target audience. You can also include information about surrounding market areas as you discuss the expansion of your appliance repair service.
4.4 Competition
Appliance Repair Service will face ongoing competition from similar service providers in the Tampa market. As has been discussed throughout this document, the Company will be an authorized repair firm among numerous major appliance brands. Additionally, the business will maintain a strong differentiating factor given that it will also offer refurbished appliances that have been repaired by the Company. Here, you can further discuss what will set your appliance repair service apart from market competitors.
5.0 Marketing Plan
Given the level of competition in the Tampa market, Appliance Repair Service will use a number of marketing strategies to create awareness. Most importantly, the Company’s relationships with major appliance manufacturers will provide a highly predictable stream of revenue as the business receives service calls. Below is an overview of the other marketing strategies that Management will implement.
5.1 Marketing Objectives
• Foster ongoing relationships with appliance retailers throughout Tampa for referrals.
• Maintain an expansive online presence that includes ecommerce functionality for the sale of refurbished appliances.
• Maintain relationships with property management firms that will call on Appliance Repair Service when repairs are needed.
5.2 Marketing Strategies
As discussed above, the Company will primarily use established relationships with manufacturers that will send the business to locations when service calls are needed. Management has already begun to file applications in order to have authorized status from the onset of operations.
The Company’s website will showcase the numerous brands that the business can repair. This website will also feature ecommerce functionality so that people within the greater Tampa market area can make purchases of refurbished and repaired appliances. The Company will have this platform search engine optimized.
The business will also maintain pages on Facebook, Instagram, and LinkedIn. On these platforms, the Company will showcase the wide range of appliance repair services offered while also showcasing inventories that are for sale. The business will update the pages on these platforms on a weekly basis.
The Company will maintain ongoing relationships with both residential and commercial property management firms throughout Tampa. As these businesses have numerous tenants that have management supplied appliances, the Company sees a substantial opportunity to generate highly predictable streams of revenue from these operations. The business will market among numerous regional real estate journals to promote these services.
5.3 Pricing
For service calls, the Company will charge $100 per hour. Management anticipates that each repair will generate $300 to $500. Refurbished appliances will be sold for $500 to $1,200 depending on the type and brand.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• Appliance Repair Service, LLC will acquire $75,000 (carrying a 10-year term and a 7.5% interest rate).
• Matthew Wallace, for equity, will contribute $15,000 towards the business.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to changes in the economy. The demand for appliance repair remains strong in any economic climate especially during times of economic recession where repairs rather than replacement of appliances will occur. Appliance Repair Service will have highly controllable operating costs couple with predictable income from repairs and sales.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
