Two-Wheeled TerrorBusiness Plan

Project Narrative• In 2012, two friends, Jared and Simon, decide to

take their passion for working on motorcycles and customization to another level. Already the friends are working together in a fairly successful motorcycle shop, well established within the community. The idea of trying to make a statement within the competitive world of drag racing while also remaining true to their roots of just hanging out and having fun with their bikes just seemed very appealing. They decided to name the extension of their current company “Two-Wheeled Terror.” The company would focus on mainly motorcycle performance, also providing the everyday customer simple service alternatives with a friendly atmosphere. The parent company already utilizes a solid part sales and service with about $3 million in revenue.

Overview• The reason the idea got sparked, of course came

for the art of custom and performance in the motorcycle world. Also the daily customer traffic seemed to have a want to make their motorcycle purchases a bit more unique at the time of purchase. By offering this service to customers, they can have the confidence that their motorcycles will receive the great deal of performance attention while staying budget friendly as well.

The Team • Jared Short-Lead Technician/Engine Builder• Simon Tuttle-Lead Technician/Tuning Specialist• Charlie Townley-Systems Administrator/IT

Specialist• Ted Brown-Parts Specialist• Misty Smith-Sales/Marketing Research

Example of Services• Complete Custom and

Drag Builds• Street Applications• Show Bikes• Harley and Bobber Builds

Example of Services

Example of Services cont’d• Offering Comprehensive

engine tuning with the aid of a dynamometer. Extracting all of the engines capabilities

Example of Services cont’d• Offering complete

engine builds to customers specifications.

• Engine dyno capabilities

Screening ModelCriterion   Importance Weight Low= 1

Profit Potential 2 Medium= 2

Financial Risks 2 High= 3

Cost 1

Customer Satisfaction   3

 

Project Criteria(A) Importance

Weight(B)

Score

(A) x (B)Weighted

Score

Project AlphaProfit Potential   2 1 2

Financial Risks   2 1 2

Cost   1 3 3

Customer Satisfaction   3 3 9

Total Score 16

Project BetaProfit Potential   2 2 4

Financial Risks   2 2 4

Cost   1 3 3

Customer Satisfaction   3 3 9

Total Score 20

Project GammaProfit Potential   2 3 6

Financial Risks   2 2 4

Cost   1 1 1

Customer Satisfaction   3 2 6

Total Score 17

Project DeltaProfit Potential   2 1 2

Financial Risks   2 3 6

Cost   1 2 2

Customer Satisfaction   3 1 3

Total Score 13

Objectives1. Provide customers with solid and

reliable service.

 

1. Excellent: 10 Outstanding Surveys/monthGood: 5 Good Surveys/monthAcceptable: 2 OK Surveys/month 

1. Make a statement within the drag racing world as respected aftermarket dealer/installers.

 

1. Excellent: 5 new vendors/monthGood: 3 new vendors/monthAcceptable: 1 new vendor/month

 1. Perform repairs and service within a

timely manner.

 

1. Excellent: 5 dyno sessions/wkGood: 3 dyno sessions/wkAcceptable: 1 dyno session/wk

 1. Increase customer retention and

diversity.

 

1. Excellent: 10 New Customers/monthGood: 5 New Customers/monthAcceptable: 2 New Customers/month 

1. Increase parts and service revenue by 15%.

 

1. Excellent: Increased sales 35%Good: Increased sales 25%Acceptable: Increased sales 15%

 

General Approach1. Managerial Approach-Minimal new equipment would need to be

purchased at the “opening” of the new entity. Most of the initial investment has been made by the parent company for tools, shop supplies and most of the parts. The integration of a new parts database to deal with additional aftermarket companies specializing in the needed parts will be required. Jared and Simon will both lead the helm of this project with sharing both performance and racing duties.

2. Technical Approach-Since both Jared and Simon would need a training course with an engine and chassis dynamometer (no brand specified at this time) most of the technical know-how is already there. Programs that will be used are Bazazz, Two Brothers Juice Box, and the popular DynoJet Power Commander. When used in conjunction with a chassis dyno, Jared and Simon can extract as much horsepower from customers motorcycles as possible.

NPV Analysis

Year Inflows Outflows Net FlowDiscount

Factor NPV

0    $     30,000.00    1.0000  $  30,000.00 

1  $  22,745.00     $  22,745.00  0.877193  $  19,951.75 

2  $  25,000.00     $  25,000.00  0.769468  $  19,236.69 

3  $  27,500.00     $  27,500.00  0.674972  $  18,561.72 

4  $  22,000.00     $  22,000.00  0.59208  $  13,025.77 

Total  $  40,775.93 

IRR

Year InflowsDiscount

Factor@50% NPV

1  $              22,745.00  0.6667  $  15,163.33 

2  $              25,000.00  0.4444  $  11,111.11 

3  $              27,500.00  0.2963  $    8,148.15 

4  $              22,000.00  0.1975  $    4,345.68 

Total    $  38,768.27 

Initial Investment    $  30,000.00 

Difference    $    8,768.27 

Constraints• Lack of productivity-This new addition of the

company will of course cost some of their resources and could result in a loss of money if not successful. It must remain competitive, as well as profitable.

• Neighborhood disruption-Given the nature of drag racing and tuning, sometimes the deadlines or time schedules are not met where they would like to be and late hours would have to be utilized. With that said, late night tuning of loud motorcycles could upset some of the shops neighbors within close proximity. Measures will be taken to cut down on the majority of the noise.

Risk AssessmentRisk Factor Consequence Likelihood Impact Potential

Loss of Funding High Low Serious

Lack of Interest

Medium Low Moderate

Loss of IT support Low Low Minor

Loss of Marketing High Low Moderate

Too Much Competition

High Medium Serious

Work Breakdown StructureBreakdown Description WBS Code

Two-Wheeled Terror Start-Up 1

Deliverable 1 Source New Equipment 1.1

WP1 Conduct Pricing and Availability 1.1.1WP2 Research Product and Reliability 1.1.2WP3 Choose Equipment and Order 1.1.3WP4 Choose New Vendors 1.1.4

Deliverable 2 IT System Integration 1.2

WP1 Install Necessary Software 1.2.1WP2 Connect to Existing Intranet 1.2.2

WP3Connect to Exisiting Internal Parts Network 1.2.3

WP4 Setup B2B ordering 1.2.4

Deliverable 3 Market Research 1.3

WP1 Investigate Competition 1.3.1WP2 Find Ways to Become "better" 1.3.2WP3 Appeal To Customers 1.3.3

Deliverable 4 Install New Equipment 1.4

WP1 Troubleshoot Dyno and Data acq. 1.4.1WP2 Document Procedures 1.4.2WP3 Train Others on Operation 1.4.3WP4 Test Run Equipment

Risk Mitigation StrategiesHigh Risk Mitigation Strategy

1. Loss of Funding2. Loss of Marketing3. Too Much Competition

1. Develop a backup financial plan2. Try to advertise with own resources3. Continue to provide customer support for daily 

functions

 

Moderate Risk  

1. Lack Of Interest 1. Pursue other avenues along the lines of performance. Focus on one area rather than multiple.

Low Risk  

1. Loss of IT support 1. Resort to the WWW for parts support for the time being until a solution has been established

Competition• As we are trying to enter the already competitive

scene of racing and performance, we will strive for the utmost excellence for every project that is taken.

• We will provide the best services possible with the best quality.

• We also will try to work closely with our competitors in a friendly market.

GO FAST, NOT BROKE!