Tire Shop Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a new tire shop located in [Location]. We provide high-quality tires to residents and companies with fleet vehicles for competitive prices. Our inventory is the largest and most diverse in town, including tires of all brands, sizes, and functions. We also provide tire-related services such as tire inspections, flat repairs, tire rotations, and installations. No matter what our customers need, they are guaranteed to receive the best service and customer experience possible.

Products Served

[Company Name] offers the largest variety of tires in town. Our inventory consists of numerous brands, types, and sizes. Some popular types of tires we sell include:

  • All-season tires
  • All-terrain tires
  • Snow tires
  • Mud tires
  • Spare tires

We sell tires for all vehicle sizes, from sedans to RVs. We also stock numerous popular brands, including Michelin, Goodyear, Bridgestone, and Yokohama. Whatever our customers need, we have it.

In addition to selling tires, we offer limited services to make sure our customers’ tires are in perfect condition. These services include:

  • Tire inspections
  • Flat repairs
  • Tire rotations
  • Tire installation (free with every purchase)
  • Winter tire changes
  • Consultations

Customer Focus

[Company Name] will primarily serve the residents living within a 20-mile radius of our location. The demographics of these customers are as follows:

  • 57,913 residents
  • Average income of $55,900
  • 25.8% in Mgt./Professional occupations
  • 65% vehicle owners
  • Median age: 35 years

In addition to serving local residents, we will also provide tires to businesses (such as car rental businesses) that have fleet vehicles.

Management Team

[Company Name] is led and founded by [Founder’s Name], who has been a mechanic and tire expert for [X] years. He started off his career as a general mechanic but eventually transitioned to working at a national tire chain. Here he became an expert in all things tires, including how to repair them and knowing which tires are best for each vehicle. He worked his way into a management position, which gave him an in-depth knowledge of the operations and management sides of the business.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
  • The management team has a track record of success in the tire shop industry.
  • Tire shops are a proven business and have succeeded in communities throughout the United States.
  • Our shop will offer a greater variety of tires than any of our competitors.
  • Our pricing will be affordable for our customers as well as competitive with similar shops nearby.

Financial Highlights

[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Initial inventory and supplies: $100,000
  • Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

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