Feasibility Study of Didier Auto Repair and Detailing



Feasibility Study of Didier Auto Repair and Detailing

Introduction

Feasibility study is very important for any new business. Doing feasibility is an excellent business. Any new business before proceeding with the business plan will first do a feasibility study for the new idea before making any final decision. However, if starting a new business without feasibility study can prove disastrous. Any sane business man will always conduct a feasibility study before proceeding further. It is a critical step for the assessment of your business. It will provide you with the best alternatives, overview of basic market and economic viability of the proposed idea (Zeng, 2004). It would provide valuable information for making a final decision. It will help you in getting financial help from financial institutions like investments. Furthermore, it provides you with documentation which helps in taking all the stakeholders in confidence and reach to the final decision making step.

It can also identify the probability of success in the new project and also identify reasons to not to proceed with the project. Similarly, the main aim of this feasibility is to find out the economic viability of new business venture of a Minor repairs or auto detailing in the parking lot of workers. The name of this new venture is Didier Auto Repair and Detailing. This feasibility study will further answer the question regarding the sense of the proposed business venture whether the idea makes any sense or not. This paper will examine the basic market analysis, technological requirements and economic viability of the new business venture.

Discussion

Basic Market

As the number of vehicles is increasing on roads and the economy of the US, is slowly and gradually moving upward, the profit of car detailing and repairing service has increased manifold. The car detailing and repairing industry has seen it's worst during the history of United States of America. According to (NAICS 8111, 2001), there were estimate 180,000 automobile repair shops in US. Around 680, 00 individuals were employed in this automobile repair industry. Just in Georgia, there were around 21000 individuals working within the industry. But the majority of the auto repairs and detailing shops did not provide services in business offices parking lots. The customer had to bring his car to the shop to get it detailed or repaired (Abdel, 2011). In accordance to automotive franchise report of Franchise Direct's, between 2006-2009, auto vehicles sales had increased by 40% in America.

Therefore, the consumers were driving their cars for a longer time that means they need more repair and detailing to keep their cars in good condition, so they can sell them later on. Similarly, the industry gave employment to around 2.5% of the US workforce providing around 3700000 jobs. According to the analysis of the industry, there are around 130,000 US automobile repair and detailing companies whose major focus was to provide auto detailing and repairs. There are around 254,212,610 registered passenger vehicles (US Bureau Transportation Statistics, ...