Last updated: February 24, 2019
Topic: AutomotiveCars
Sample donated:

Small Business Administration

[complete address with postal code]

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Respected sir,


We are currently seeking financial investor for our company, Mo’s Auto Shop, which is involved in undertaking mechanic repairs and services to cars in the location of Syracuse, New York, United States.  We are approaching you to grant a loan of $300,000 which includes a short-term loan of $50,000 to commence initial business operations. The repayment terms are as per your guidelines.

We thank you and request you to contact us for any clarifications.

Thanking you once again and look forward for an early reply from you.


Yours truly

Mo’s Auto Shop



Co-owner of  Mo’s Auto Shop
Executive Summary
Mo’s Auto Shop (MAS)  is an SME that is being set up with the motive and mission to extend a range of automobile services which includes mechanic servicing and a body shop of both domestic and foreign cars apart from maintaining a huge stock of spare and service parts of cars. Mo’s Auto Shop would be located in Syracuse, New York city. This is a convenient location for enabling easy access to customers who individually own cars  and for those who use cars for business and commercial purposes.  Keeping in view a major fact, that New York and other vicinity locations,  use cars as an essential means of transport system either for personal use or for commercial purposes.  It is also an agreeable fact that global crude oil price is indicating nearly $100 per barrel which would make the daily use of cars  quite expensive in fuel and service.

Mo’s Auto Shop wishes to grow to a large scale of business in a span of three years with a view that the establishment takes at least 6-8 months and to pick up sales, it may another year and by third year a full-fledged business operations  would take-off and at that time, expansion of business by opening other outlets in other cities or opening another retail store in New York, would be planned accordingly.  Mo’s Auto Shop is being established with a mission to meet the satisfaction of car customers, who require regular services or in emergency need.  Mo’s Auto Shop would take initiative steps to walk an extra mile in service to its customers.

Some of the important objectives of Mo’s Auto Shop would be to provide perfect services to customers and also to provide easy access with the medium of web site, email or telephone in order to perform mechanic works or meet any other  of customer with regard to service of cars.  Customers would not be kept waiting for deliveries of cars or face any kind of trouble with Mo’s Auto Shop.  The company would like to expand business through the medium of winning customers confidence and build a client based business.  The company also would like to maintain inventory that never goes out of stock, which means that it would self-sufficient and independent business that can manufacture, attend mechanic work and a body shop. Mo’s Auto Shop would be identified as a one-stop-shop or all-under-one-roof  whereby customers need not visit any other business place for car services.  Inspite of stiff competition in market, Mo’s Auto shop predicts a good relation with other networks of similar business tenements.

Further Mo’s Auto Shop has insured the entire set up of business viz., space area, manufacturing machinery, inventory and cars by assessing the networth of business to an extent of  $700,000 and in case of any unforeseen, sudden occurrence of accident, the business receives an insurance coverage bringing safe limits.

The company believes in the keys to success and thrives to reaffirm on its aims and objectives.  Further the company plans to grow on a rapid process of service to customers in a short period of tenure.

Company Background
Mo’s Auto Shop is a professionally operated business with good experience in automobile services and customers of all sectors can rely on the services of Mo’s Auto Shop.  Firstly, the company promises excellent and quality services, certified and original manufacturing spare parts and attend to customer requirement and consider the consent of customers if there are any major repairs or replacement of service parts. Company operates on 24 x 7 basis for the availability and access to customers.  The shop is always opened even on weekends enabling those customers who could not get the service done on week days can avail the service facility on week ends.  Customers need not wait for longer hours, as the skilled technicians would fix the problem as early as possible and give the delivery of car to customer without delay.  This further ensures the constant improvement in confidence level of customers in reaching out to Mo’s Auto Body Shop for repairs and services. All the employees of Mo’s Auto Body Shop are  trained and professionally qualified who provide excellent repair services to car customers.

Management Team
Mo’s Auto Body Shop has a professional management team that has lead to the budding and birth of this Auto business.  Mo’s Auto Shop has an intelligentsia of four people, Richard, Donald, Graham and Bob.  Richard has a good experience in sales, who worked with Ford and Benz dealers in United States. Richard would be focusing energies in increasing sales and marketing for the company.  Donald worked as a CEO in a reputed automobile division and who successfully lead 500 subordinates to execute several management tasks. Graham  has a professional experience in auto service parts with the fact that a full-length of five years experience in Hyundai Company has brought a major exposure in car repair services.  Bob has 4 years of experience in finance and administrative services in Ford company.

The collective vast work experience, knowledge in automobiles and professional skills of all the four partners is far above the expectations and this management team very truly can meet any target of sales that is set before in the performance of business.  The team projects sales $ 10 million for the first year, $15 million in the second year and $20 million in the third year.



Financial Plan

Depending on the financial capacity of each team member, an investment of $75,000 is expected to be invested by each co-owner and the remaining financing would be arranged through Small Business Administration (SBA) to a total loan of $300,000 which includes a short-term loan of $50,000.  The following is the start-up cost and financial plan for Mo’s Auto Body Shop.
Expenses (USD)
Estimation (USD)

Start-up requirements

Legal expenses

Capital expenses

Assets Required

Funds [75,000 * 4]




Total expenses
Capital Required
The following is an estimation of capital required for  Mo’s Auto Shop:

Estimate (USD)
Leasing / purchase of space area
Automobile repair and service equipment
Office furniture
Computer, printer, fax, telephone
Installation of electricity and cable wiring
Employee salaries (10-20 staff)
Miscellaneous expenses

Total Estimate




Marketing Plan


Mo’s Auto Shop has a pre-determined and pre-set marketing plan in building customer relation management. The company is all set to satisfy its customers on top most priority and even in delivering quality services to the utmost satisfaction.  The management team believes that customers who step into shop must seek the advice and consent of shop personnel in finding what is essential and holds good for cars from time to time which means that the building of confidence level between customer and service care is absolutely quality-oriented and competent.  The company also believes in maintaining a high standard of relationship with vendors and dealers of service parts as  a part of marketing plan.

Location Analysis


Firstly Syracuse is in New York in United States.  Syracuse has a huge number of trees and greenery which offers a quiet and neat atmosphere and environment. Syracuse is also known for its heavy snowfall and extreme hot in summer as compared to any other city in United States.  Syracuse is both a residential as well a corporate area where there are large families and also a proportion of multinationals are operating respective businesses. It is an ideal location for setting up an auto body shop, where the traffic of cars is imaginably on the higher side.  There are students, employees, businessmen who would use cars for traveling on a regular basis.  Therefore Syracuse is an ideal location for Mo’s Auto Shop.

Manufacturing Plan


Mo’s Auto Shop proposes to begin manufacturing in 2011, at the time when business turns big volumes of turnover. Another supporting fact is that, the funding of partners and SBA loan is not sufficient to set up a manufacturing unit, which is why the manufacturing plan is postponed to the year 2011.  In the event of opening a manufacturing unit, appropriate production and cost of production would be worked out for the manufacturing of batteries, engines, engine parts, oil and air filters, belts, hoses, air conditioning parts, lighting, wiper blades, brake parts, tires, sound systems, alarms or remote vehicle starters, handtools and any other car accessories. A separate capital and cost estimation would be prepared with a break up of pricing for sale of spare parts, cost of production, maintenance of inventory  and maintenance of workers.

Auto Body Shop Financing – Small Loans

Reviewed December 8, 2007 from

Sample Business Plan

Reviewed December 8, 2007 from