Torque Precision Auto Business Plan — Management and Governance
The team at maturity, why the workshop manager is the single most important hire, and the operating leverage that carries the margin.
Management and Governance
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. How a Workshop Actually Makes Money
- 4. Accreditation and Compliance
- 5. SWOT and Competitive Position
- 6. Operations and the Bay Build
- 7. Route to Market
- 8. Management and Governance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Operating Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
|
Role |
Number at maturity |
Responsibility |
Timing |
|---|---|---|---|
|
Managing director |
1 |
Strategy, funding, fleet and insurer relationships, supplier terms |
From inception |
|
Workshop manager |
1 |
Diary, job allocation, quality control, technician efficiency, rework |
Month 1 — the single most important hire in the business |
|
Service advisors |
4 |
Customer intake, quoting, authorisation, handover, upsell discipline |
From opening, scaling with bays |
|
Qualified technicians |
10 |
Diagnosis, service and repair to warranty standard |
Phased with bay commissioning |
|
Apprentices |
3 |
Assisted work under supervision; the pipeline that solves technician scarcity |
From Year 2, registered through merSETA |
|
Parts controller |
1 |
Stock, supplier terms, parts availability at the bay |
Year 2 |
|
Bookkeeper and quality controller |
2 |
Financial records, statutory returns; pre-release vehicle sign-off |
From Month 1 |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Overhead, R |
3 529 000 |
4 764 000 |
6 156 000 |
6 922 000 |
7 465 000 |
|
Overhead as a share of revenue |
73.1% |
42.6% |
32.6% |
28.9% |
26.3% |
|
Gross profit, R |
1 390 000 |
4 388 000 |
8 262 000 |
10 728 000 |
12 988 000 |
|
Gross profit as a multiple of overhead |
0.39x |
0.92x |
1.34x |
1.55x |
1.74x |
Overhead falls from 73 per cent of revenue in Year 1 to 26 per cent by Year 5, and gross profit moves from 0.39 times overhead to 1.74 times. That is the operating leverage the whole plan depends on, and it comes from filling bays against a cost base — premises, service advisors, workshop manager, systems — that was already carried at four bays.
Three numbers govern this business and should be reported weekly rather than monthly: bay utilisation, technician efficiency against book time, and effective labour rate after leakage. A workshop that reports only turnover is measuring the wrong thing, because turnover can rise on parts while the labour business — where the profit is — deteriorates unnoticed.