Business Plan Template for Car Dealerships in Australia

27 May 2024 Helpful Tips


Starting a car dealership in Australia is an exciting experience. However, like any business in Australia, to be successful, planning is paramount. The most important document that will set your car dealership up for success is a comprehensive business plan.

What is a business plan? A business plan in Australia is an outline of everything that your car dealership wants to achieve and how you will go about achieving it. Your business plan will be the foundation of which your car dealership operates.

That brings us to the question, what should a car dealerships business plan include? EasyCars has put together a free comprehensive and detailed car dealership business plan template that you can use to build from.

Let’s get into it.

1. Executive Summary

The executive summary of a Car Dealership Business plan is an overview of your business plan and what will be included. In the executive summary, you should summarise the key points of your dealership to give readers a clear understanding of your dealerships vision, mission and objectives.

What to Include in an Executive Summary:

  • Business Name: State your dealership’s name.
  • Location: Specify the location of your dealership.
  • Business Model: Describe whether you’ll sell new or used cars for sale, or both.
  • Objectives: Outline your dealership’s short-term and long-term business goals. How many cars do you want to sell each month?
  • Mission Statement: Write a paragraph of your dealership’s purpose and values.

2. Company Description

In the company description section of your car dealerships business plan, you will need to give an overview of your entire dealership.

What to include in a Company Description:

  • Business Structure: Explain whether your dealership will be trading as a sole trader business, a partnership, or corporation.
  • Ownership: Identify the owners and their stakes in the car dealership business.
  • History: If the dealership is already established, provide a brief history.
  • Location: Describe the physical location of your car dealership and why you chose this location to operate from.
  • Unique Selling Proposition (USP): Explain what sets your dealership apart from competitors.

3. Market Analysis

The Australian automotive industry is extremely competitive. There are multiple dealerships in almost every suburb. To be successful, it is essential that you understand your market. The market analysis section of your car dealerships business plan is where you will highlight the industry, your target customers and your local competitors.

What to include in a Market Analysis:

  • Industry Overview: Provide insights into the Australian car market, and how you are going to navigate it.
  • Target Market: Define your target customers, their demographics, preferences, and buying behaviour. Who do you want to buy your cars for sale. Define them in this section.
  • Competitive Analysis: How many car dealerships are close to you? Identify your main competitors, their strengths and weaknesses, and your competitive advantage.
  • Market Needs: Explain the needs of your target market and how your dealership will meet them.

4. Organisation and Management

In this section of your car dealerships business plan you will need to outline your organisational structure and the management team of your car dealership.

What to include in your organisation and management section of a business plan:

  • Organisational Structure: Provide an organisational chart of your dealership, this should outline all your staff.
  • Management Team: Introduce key team members, their roles, and their qualifications in the car dealership.
  • Hiring Plan: Outline your staffing needs and how you are going to recruit staff for your car dealership.
  • Advisors: List any external advisors or consultants that may be providing value at your car dealership.

5. Services and Products

This is one of the most important parts of your car dealerships business plan. In this section you will need to describe the range of cars, products and services that your car dealership will offer customers.

What to include in the Services and Products section:

  • Inventory: Detail the types of vehicles you will sell (new cars for sale, used cars for sale, specific brands, etc.).
  • Additional Services: Describe any additional services such as car financing, car warranties, repairs, and maintenance.
  • Suppliers: Identify your key suppliers and your relationship with them. Will you be sourcing cars from car wholesalers?
  • Pricing Strategy: Explain your pricing model and how it compares to other car dealerships in your local area.

6. Marketing and Sales Strategy

How are you going to get customers to your car dealership? This section of your car dealerships business plan is to outline your marketing and sales strategy.

What to include in a Car Dealership Sales & Marketing Strategy:

  • Marketing Plan: Outline your marketing strategies, including advertising, are you going to use car classified websites, are you going to run promotion, are you going to use online marketing like SEO and Facebook Automotive Inventory Ads?
  • Sales Strategy: Describe your sales process, sales channels (on site sales, online, etc.), and sales targets, how many cars are you looking to sell every month?
  • Customer Retention: Explain how you will retain customers and encourage repeat business at your car dealership.
  • Branding: Detail your branding strategy and how you will position your dealership in the market.

7. Operational Plan

The next part of your car dealerships business plan is to outline the operations of your dealership and how you will trade day-to-day.

What to include in an Operational Plan:

  • Location and Facilities: Describe your car dealership locations condition and if you require any upgrades or renovations that will help drive business.
  • Inventory Management: Explain how you will manage and rotate your inventory. Will you be using a Dealer Management System? (DMS).
  • Sales Process: Outline the steps from customer inquiry to final sale.
  • Technology and Equipment: List the technology and equipment needed to operate your car dealership Will you be using a dealer management systems, car dealership website or CRM?
  • Suppliers and Vendors: Detail your relationships with car suppliers and any agreements in place.

8. Financial Plan

Another vital part of your car dealerships business plan, the financial plan is critical for understanding your ongoing costs, forecasted revenue and securing funding if needed.

What to include in a Financial Plan:

  • Startup Costs: List all the expenses required to start a car dealership, including property, inventory, licenses, and marketing.
  • Funding Requirements: Specify the amount of funding you may need to start a car dealership and potential sources. Will you need a small business loan, will you have private investors?
  • Revenue Projections: Provide projected revenue of your dealership for the first three to five years.
  • Profit and Loss Statement: Include a projected profit and loss statement.
  • Cash Flow Statement: Outline your expected cash flow to ensure liquidity.
  • Break-Even Analysis: Calculate the point at which your dealership will become profitable.
  • Financial Assumptions: Clearly state the assumptions behind your financial projections.

9. Risk Management

When operating any business in Australia, let a lone a car dealership there is an abundance or risk. In this section of your car dealerships business plan, identify and put together a plan on how you are going to manage potential risks to your dealership.

What to include in a Risk Management section of a Business Plan:

  • Market Risks: Describe potential market risks such as economic downturns or changes in consumer preferences that may impact your car dealership.
  • Operational Risks: Identify risks related to daily operations, such as supply chain disruptions or staff turnover. How will you manage when staff leave your car dealership or if you can’t source cars to sell.
  • Financial Risks: Outline financial risks, including cash flow issues or funding shortfalls on your car dealership.
  • Mitigation Strategies: Provide strategies on how your dealership is going to mitigate the identified risks.

10. Appendix

To conclude your car dealerships business plan it is important that you include any additional information that will support your journey and that you can use as a foundation to build off.

What to include in an Appendix:

  • Resumes of Key Personnel: Provide detailed resumes of your dealerships management team.
  • Market Research Data: Include any market research data or surveys conducted that will help support your dealerships operation or vision.
  • Legal Documents: Attach any legal documents such as lease agreements, licenses, or contracts.
  • Additional Financial Documents: Provide any additional financial documents or projections.

Final Word,

Creating a detailed business plan for your car dealership in Australia is crucial for setting a clear direction, securing funding, and guiding your business to success. This free business plan template will help guide you on your way to creating a plan for your own car dealership in Australia.

DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.

We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.

About EasyCars,

EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.

EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.

To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.

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