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Southeast Racing Parts (Srp) Essay

7165 words - 29 pages

1.0 Executive SummarySoutheast Racing Parts (SRP) is a small, North Carolina-based automobile racing parts brick and mortar and mail order organization. SRP will remain small in order to offer unprecedented customer attention. Southeast Racing Parts will become the premier destination for entry level and novice racing parts.The MarketSoutheast Racing Parts will be participating in an exciting, growing market. Motorsports has seen explosive growth in the USA in the 90's. It is now the fastest growing sport in the USA. The market is worth $1.5 billion annually. A recent survey indicates that over 385,000 people have competed in organized motorsport events with even more people who have "souped" up their cars but have yet to compete in organized events. Additionally, TV coverage for motorsports has increased dramatically helping fuel growth. Lastly, the Carolinas has experienced record population growth, 25% within the last decade making SRP's chosen location attractive.The OrganizationSoutheast Racing Parts is founded on the idea that maintaining satisfied customers is essential to the financial health of the organization. With this in mind, SRP will be working hard to ensure that all of their customer's expectations are exceeded in all transactions. To maintain a presence within the racing community and close relationships to customers, Southeast Racing Parts will be an active member of the local racing scene through participation and sponsorship.Products, Services, and DeliverySRP will be both a brick and mortar company serving the local community as well as offering a catalog with a mail order service. The catalog will be a four-color edition and subsequent editions will be analyzed to determine the cost effectiveness of publishing in this format. SRP will offer engine and chassis parts for a wide variety of cars. Safety equipment and set up equipment will also be offered. All of the popular name brands will be offered in addition to an array of generic label parts. SRP will offer coil rating services as well as scaling services for race cars.FinancialsSoutheast Racing Parts will be profitable from month one. Margins are forecasted to be at 30%, eventually reaching 33%. Year one sales will be $350,000 for year one with a 30% growth rate for the first five years.Southeast Racing Parts is an exciting opportunity that combines a customer-centric organization with an explosive industry. Motorsports is becoming increasingly popular in the United States with more and more people becoming active participants. Even for those who are not true participants, it is now "cool" to have your car "tweaked out" even just for aesthetics. An investment in Southeast Racing Parts is a high growth, reasonable risk opportunity.HighlightsClick to Enlarge1.1 Objectives [back to top]To make Southeast Racing Parts the number one destination for the purchase of entry-level/novice racing supplies in the Carolinas.To achieve an initial gross profit margin of at least 30%,...

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