GAS TO EV/HYBRID CONVERSIONS

My name is Michael Diehl, I'm 28 and live on Hilton Head Island in South Carolina. I'm proposing a plan to start a business of converting gasoline cars into electric and/or hybrid cars. I think this is a great idea being that I know quite a few people in my neighborhood that dream of owning an EV or Hybrid but just cannot  afford to buy a new car. Or simply just keeping old cars out of the junkyard and giving them a second chance at life. Meaning a lowered need for new cars and also saving the planet by reducing emissions that making a new car creates. By using recycled cars and parts from salvaged EV's, This is the most ingenious way to save the planet.

 My whole life has been spent in automotive shops due to my family and I have always learned hands on.  So I've picked up alot of knowledge over the years on what people want and like by interacting with both  automotive repairmen and customers. I'm also already certified for any repairs or modifications possible on a car. The only thing I'm lacking in starting this business is a shop and equipment. I've already got two employees, but we've been working off of my driveway for the last year. I feel that if I had the funds for a shop, i could charge a lot make now in my yard. Professionalism would change a bunch for me financially. That would be the correct equipment and a shop to keep it all in.

My business plan is as follows:

EXECUTIVE SUMMARY

Concept:  We propose an innovative business that converts gasoline/diesel vehicles into electric/hybrids, addressing both environmental concerns and cost saving versus buying another vehicle.

Market Opportunity:  The growing demand for electric and hybrid vehicles presents a significant market opportunity, with the potential to capture a share of this insanely expanding segment.

Investment Requirements:  I'm seeking $90k towards this project for equipment, a facility, and a few months of rent/mortgage to get the business going in the right direction.

BUSINESS DESCRIPTION 

Business Model:  My business will primarily offer vehicle conversions, transforming existing gasoline vehicles into electric/hybrid.

Target Market:  My target market includes individuals, fleets,and specific niche markets where the demand for eco-friendly vehicles is high.

OPERATIONAL PLAN

Tools and Equipment: To make this business professional and not working out of my driveway like I am, I will need funding for the equipment needed. I will need two vehicle lifts, larger air compressors, engine hoists and lifts, frame machines, fire protection, an office, a shop, and lastly a truck to tow cars on (being that most of the cars i will convert will likely not run very well with the gasoline engine) I've listed and located all the tools and equipment needed for this business to become and reality and it's right at $66k.

Workspace: I've found a building near me that used to be an autobody shop. Half of it would suffice for my business intentions, so i could always rent out the second half. Rent is $3550 monthly and include a good bit of the equipment i need already. Obviously not the things I listed above.

Certifications/Licenses: I will need to aquire a business license for this ($250). All necessary certifications I already have.

FINANCIAL PROJECTIONS

Startup costs: These cost will include the above-mentiioned equipment at $66,000, Shop rental which will cost $10,650 to move in with the first, last and security deposit, Business license and taxes should be less then $300, and Lastly I would like a month worth of employees pay on hand until the business if fully functional and productive, so that's $5,500

Revenue Model: My plan is to allow walk in customers to drop their vehicles off and pick up a week or less later. Also, I may find interest in buying cars with badly running engines to turn into EV's to sell for a profit. A simple low power conversion can cost as low as $4k and up to $15k if the customer chooses performance over efficiency. I think this will be a growing business and the prices are expected to rise whether or not car prices rise. 

MARKETING AND SALES STRATEGY

Target Audience:  Due to the multiple social media platforms we have available today, I do not predict that advertisement or marketing will be an issue. Just by making a local post on Facebook to see if anybody in my area would even be interested in this kind of thing: I got 1,106 responses saying it would be awesome. That was just a post in a couple facebook groups that are local to me. Imagine advertising to the whole east coast with a functional business of such.

TEAM

Management Team:  Being that I already hold a degree for business management and all the required certifications, I plan to operate with just myself and the same two employees I already have. We have a pretty fool proof operation going already. we just don't have the correct equipment or facility to get these done in a timely fashion. It's taking around a month per conversion now, but with the right equipment, this will only take a matter of days a piece.

RISK ANALYSIS

Potential Risks:  The worse possible case i see happening is that we don't get enough business and have to go back to my driveway again. If that were to happen if feel that i could liquidate the shop and equipment for more then I paid for it all. Once this starts, more places will open and it will be no problem selling a turn key business like this. The required equipment is not just made for these conversions, but common items in any shop which will always be a good selling point.

USE OF FUNDS

Allocation of funds: If recieved, this investment will be used to purchase the necessary equipment needed, rent (1st and last month, plus security deposit), startup pay for the employees, business license, and lastly, advertisement funds for social media and local outlets.

EXIT STRATEGY

Exit Options:  As mentioned above in the possible risks, I could always sell the business and make a substantial profit even if i never worked out of it. After the equipment is in the building it turns into a turnkey business that would be able to handle a wide range of automotive related needs. The equipment needed is not specifically designed for EV's and Hybrids, but rather any vehicle. This place could be made into a bodyshop, tire shop, small car dealership, oil change shop, etc. The possibilities are endless just by adding this equipment I have need. I feel that this is a win/win situation no matter what direction it goes. Hopefully after all this though, I will have shops all up and down the east coast.

CONCLUSION

Summary: With all of this said, My plan is to start a very successful and expandable Gasoline to Electric/Hybrid conversion company. You'd have to literally drive states away for this service if you wanted it where I live. I'd like to bring this closer to home for us. There are very many people out there that wish they could afford to own an EV or Hybrid but just can't afford it, or don't have the credit to get a new car. With my solution people can afford to drive an EV or Hybrid for a fraction of the price of a used one! Not to mention that I enjoy salvaging Tesla engines and parts from wrecked cars, so I'm also recycling in a way as well. Obviously some people will prefer new everything versus used. But the recycling aspect is what makes this the most cost effective option for an EV/Hybrid conversion. I really think this idea will be the new thing around here. I'd really like to get my foot into the door of this business before it becomes a thing and I'm too late.

I appreciate you taking the time to read and consider all of this. It's people like you that make dreams come true. Thank you. -Michael Diehl