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LULU'S AUTOBAHN FUELS AND LULU'S OSTRICH RANCH
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Executive Summary Company Direction In 1998, Lulu's Autobahn Fuels was founded to provide automated fuels. Overall, our company can be characterized as a Gas Station and Convenience Store
(C-Store) that provides fast service at both the pump and store through automaton and self
service. Company Overview Background For many years, people have been pumping their own gas and then having to wait in line
to pay for the fuel just perched. The condition of the industry today is such that customers want to pay at the pump and
not wait in long lines at the store. The customer wants to get in and out fast and go to
the store when he wants too, not because he has too. Lulu's Autobahn Fuels is Sole Proprietorship. The Sole Proprietorship form was chosen
because this will be a family business. Lulu's Autobahn Fuels 's business headquarters is located at 609 OAK MEADOWS, SAN
MARCOS, TX, United States, 78666. By 1999, our operation will be producing more than $158,400 in total profit in sales
plus 2% bonus per year, and will operated in the black ever since. Revenue projected for
fiscal year 1999 without external funding is expected to be $158,400. Annual growth is
projected to be 25% through 2000. Now, Lulu's Autobahn Fuels is at a point where new and state of the art equipment is
needed along with a complete remodel of the Convenience Store (C-Store). Objectives Based on our projected revenues for the current fiscal year and our projected annual growth, we feel that within 2 years Lulu's Autobahn Fuels will be in a suitable position for an additional site on the North bound side of I-35 . Our objective, at this time, is to propel the company into a prominent market position. Capital Requirements According to the opportunities and requirements for Lulu's Autobahn Fuels described in
this business plan, and based on what we feel are sound business assumptions, our initial
capital requirements are for $1,000,000. To accomplish this goal we have developed a comprehensive plan to intensify and
accelerate our marketing and sales activities, product development, services expansion,
engineering, distribution and customer service. To implement our plans we require an
estimated total of $1,000,000 in financing for the following purposes: 1. Canopy by Cooks and Hall of 24 ft by 128 ft- Four column with a 12 ft over hang 2. Four Wayne V590- Each with Four Product unit hose blended,
dispenser with Wayne(Cal), each with graphics display, Wayne (Bill Accentors), each with a
Vapor recovery ready, speaker and conduit intercom, call button, stop button, preset
keypads, and conduit for lighted valance. 3. 1-Wayne 395- 3,1, 4 hose blended dispenser with Wayne (cat), with
graphics display Wayne (Bill Acceptor), vapor recovery ready, speaker and conduit,
intercom call button, stop button preset key pads, conduit for lighted valance. 4. Verifone 65 key DTERM (Dual Terminal) with pin pad console and
customer display Major Oil Jobber (MOJ ). 5. Verifone help desk. 6. 8x5- 8' DW-CT double wall fiberglass multi compartment tank. 7. 12K -8 DW double wall fiberglass single compartment tank. 8. PS-12 12 Surge Suppression Modules with Uninterrupted Power Source
(UPS). 9. Eight- Sets hose, nozzles, breakaway, Swivels, splash guards,
spacer hose. 10. Verder Root TIS 350 Console with printer. 11. Four input probe Interface Modules. 12. Four- I MAG Probes. 13. Four- Float Kits. 14. Four- Cap and Rings. 15. Four- PLLD and Modules. 16. A Site FAX. (Sending a fax to the fueller telling he to bring a
amount of fuel) 17. Logo Plate on I-35 South bound (Exit 186) Note: A Autogas Regal POS System my replace the Verifone POS system
which depends on who dues the financing/Leasing of the equipment. The rest of the money will be use to build a 2500 square foot Convenience Store
(C-Store) and new parking lot and driveway. We require additional investments of which $680,000.00 of the $1,000,000 will be used
for land, build a 2500 square foot Convenience Store (C-Store) with walk in cooler, buy
stock for store, and install central Air with heat in order to increase our production
capacities to meet market demand. Management Team Our management team consists of one person at this time. William R. Hayward, Owner His backgrounds consist of more than 10 years of experience with a Masters Degree in
Electronics Engineering Technology from ASU in Tempe, Arizona: The following list some of Mr. Hayward's experiences: 1. Hayward's Auto Parts and Hayward's Mobile Oil in Farwell, MI for
three years. helping his father Running, Opening and Closing a Gas Station. 2. Hayward's Amoco Oil in Breadenton, FL for Three year helping his
father in. Running, Opening and Closing a 2nd Gas Station. 3. Wayne Dresser, Austin, TX for 3 Months on Automated Gas Stations 4. Ericsson, Austin, TX for 3 Months on Field Testing of Electronic
Equipment 5. MGI Electronics out of Phoenix, AZ with which I ran my own office
in San Marcos, TX for selling, repairing, and installing electronic equipment. Did for 2
years. 6. Maxserv, Inc, Phoenix, AZ,. for six months on telephone repairs of electronic equipment. 7. ASU Parking Services at ASU Campus dealing with public relations and writing traffic tickets for one year. 8. U.S. Virgin Islands for 1 ½ years selling Gem Stones. 9. General Dynamics, Fort Worth, TX for three years on repair, design,
and publishing manuals on F-16 Aircraft equipment. 10. Lulul's Ostrich Ranch in Arizona and Texas for 5 years on the
ranching, selling, marketing, and rasing of Ostriches, Rehas, and Emus. Additionally, our outside management advisors provide tremendous support for management
decisions and creativity. Wayne Dresser, Stokes Construction, United Pump Supply Inc., Verifone Inc., Cooks and
Hall Industries Inc., Perry Williams Inc., Autogas Systems Inc, IMST Corp., and .Armand A.
Amanda of Survey Plat. Product Strategy Current Product Lulu's Autobahn Fuels currently offers 2 products: Fuels (Diesel, High, Medium, and Low grades) Convenience Store (C-Store) (Food, Soft Drinks, Candy, Snacks, Milk, Cigarettes, &
Beer) Fuels Sales, our principal product, consists of High, Medium, low and Diesel fuel
grades. Overall our existing product line is automated Fuel Sales with no attendant and
Convenience Store (C-Store). Development of a full automated Gas Station that runs 24HRS a day with no attendant , a
computerized Convenience Store (C-Store), and a computerized highway digital advertisement
sign products is in progress and future products are planned. Research and Development In response to the demonstrated needs of our market, new products being developed in
the near future include back office software to handle inventory, automated product
ordering, and new automated gas stations. In addition to our existing products, we have plans to introduce follow-on or next
generation products including self cleaning restrooms and other innovative product
enhancements. Service Strategy Current Service Automated Gas Station Gas and Diesel fuels, our principal service, consists of automated fuel monitoring
dispense of fuels, payment by credit cards and bill acceptors, 24HRS operation with no
attendant needed, fax back to fullers to bring fuel to tanks, leak detect system, and
safety cut off of fuel. Overall our existing service line is getting and paying for fuel at the pump with no
attendant and getting on the road with no standing line. Market Analysis Market Definition The gasoline market is growing at a rapid rate. The market for these products amounted
over $1,000,000,000 according to most oil companies. This represents 10% growth over the
last 10 years. The area of greatest growth in the gasoline market is in the area of automated gas
stations with Convenience Store (C-Store)s and digital signs. Currently, the market is shared by Diamond Shamrock, Conoco, Standard Oil, Mobil Oil,
Exxon, Union Oil, and Texaco Oil, with Exxon considered the market leader. In the next 5 years it is estimated that there will be more than 5 Gas Stations
distributed by Lulu's Autobahn Fuels . Customer Profile Lulu's Autobahn Fuels 's target market includes fast gas customers, tourist, morning
and evening commuters, night time travelers, local home owners, government cars (city,
police, and fire), smokers, and drinkers. The most typical customer for our product is
someone who is in the commuter field, and who currently uses our product for cars, trucks,
busses, vans, and motor homes. A partial list of actual customers includes: Fast gas pay at the pump, hot beverage (coffee, hot coco, hot tea, and cappuccino), cold beverage (sodas, tea, milk, fountain drinks, and beer), bread, candy, pastry, snacks, Texas lottery, and Cigarettes. Competition Companies that compete in this market are Convenience Store (C-Stores )(PAC and SAC,
SAC and PAC, 7-ELEVEN, GEES, and TEXACO Food Mark), food markets (HEB, Albersons, and
Randall's), Sams, Walmart, and K-Mart. All companies mentioned charge competitive prices
as follows: Fuel price very between competing gas stations run between 1 and 4 cents and
between C-Stores show that food prices run about 18% above average costs. Key factors that have resulted in the present competitive position in this industry are
how fast can the customer get fuel, can he pay at the pump, do you have "tall
boy" beers in ice, do you have beer, milk, snacks, Cigarettes, can I fuel 24HRS a
day, and do you have a lottery set up. In all comparisons, Lulu's Autobahn Fuels 's products provide more features and have
superior performance than do competitive products. In most cases, the number of
differences will be substantial. A complete technical comparison will be available. Lulu's Autobahn Fuels 's products perform in virtually all situations. The ability to
pay at the pump fast with full capability on customer freedom to select gas and food
choices will be unique to Lulu's Autobahn Fuels 's products. The ability to choose type
services wanted (fast gas, food shopping, or both) will be unique, and our research
indicates its performance will be superior to anything else on the market today. Risk The top business risks that Lulu's Autobahn Fuels faces are running out of fuel, Ice
machine break down, running out of food product, or computer closing down gas station. The economic risks affecting Lulu's Autobahn Fuels are not meeting projected goals or
not meeting customers expectations. Marketing Plan Responses from customers indicate that our product will be enjoying an excellent
reputation and we fully intend to continue this trend. Inquiries from prospective
customers suggest that there will be considerable demand for it. Relationships with
leading OEMs (original equipment manufacturers), retailers, Fortune 500/1,000 companies,
major accounts, manufacturers and distributors substantiate the fitness of Lulu's Autobahn
Fuels for considerable growth and accomplishment in our industry / area. Lulu's Autobahn Fuels 's marketing strategy will be to enhance, promote and support the
fact that our products are faster and cheaper. Sales Strategy Because of the special market characteristics (easy off and on access for cars, trucks,
and motor homes on I-35), our sales strategy includes advertising daily and weekly
specials, using a digital 100ft sign to advertise specials on I-35 , and having an off
ramp sign showing location and name of site on I-35 : Distribution Channels Lulu's Autobahn Fuels 's marketing strategy incorporates plans to sell our product
through several channels. Our distribution channels include Convenience Store (C-Store),
Signs, Location, Tourist promotions, Radio, magazines, and newspapers. The determining factors in choosing these channels are type of product, specials being
run, roaming the area and check prices, and running trimly surveys. Our mix of distribution channels will give us the advantages of keeping up with the
customers needs quickly and effectively over our competition. A partial list of Lulu's Autobahn Fuels 's major current distributors includes: But not limited to Conoco fuels, Costal fuels, Budweiser, Burdens, Coolers, Sunbeam,
Coke, Pepsi, ECT... Advertising and Promotion Lulu's Autobahn Fuels 's overall advertising and promotional objectives are to position
Lulu's Autobahn Fuels as the leader in the market. We will develop an advertising campaign built around speed, convenience, and price,
beginning with a "who we are" statement and supporting it with ads that
reinforce this message. Additionally, we will develop a consistent reach and frequency
throughout the year. In addition to standard advertising practices, we will gain
considerable recognition through price specials and tourist specials. For the next year, advertising and promotion will require $36,000. On an ongoing basis
we will budget our advertising investment as 30% of total sales. Public Relations During 1999, Lulu's Autobahn Fuels will focus on the following publicity strategies: Speed, attendant free pumping and paying, conveniences, and prices. We will track, wherever possible, the incremental revenue generated from our
advertising, promotion and publicity efforts. We anticipate at least $180,000 of sales
will be generated directly from our publicity, and possibly and additional $90,000 of
indirect increase in sales throughout our various channels. Financial Plan Note: The financial plan is based on data provided by IMST Corp. and
is attached to this document. The financial projections indicate that exit of the leaser will be achievable in 5
years. The exit settlement will be in the form of making lease payment from fuel sold and
splitting the profit left over for 5 years then transferring equipment ownership to Lulu's
Conoco . The Fueller would receive a set amount of money per gallon of fuel sold at each
site. The increase in profits generated by this investment, specifically generates (per IMST
report) 88,000 gallons of fuel per month and $40,000.00 per month from the Convenience
Store (C-Store) which will increase to 100,000 gallons for fuel and $45,000 to $50,000 per
month for Convenience Store (C-Store) on a ground up operation that will allow us to have
the funds to repay the loan in 5 years for fuel equipment and 30 years for land and store.
Conclusion Lulu's Autobahn Fuels enjoys an established track-record of excellence with our
customers. Their expressions of satisfaction and encouragement are numerous, and we intend
to continue our advances and growth in the marketplace with more unique and effective
products. Note: All figures are based on the IMST Corp. ( Travis M. Heiser 1-800-231-4678) report
attached to this business plan. Note: This is a Start Up Business. All figures are of
future not present projections. All goals should be meet within 10%+- of projects. |