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13 Steps How To Start An Auto Repair Business

( How to Start a Car Repair Business - If you are interested in opening your own auto repair shop, now is a good time as the mechanic market is seeing significant profit growth. Most drivers now have cars that are at least 10 years old, which means there is a growing need for an auto mechanic for more consumers. Starting your own auto repair shop can put you in control of your own hours and allow you to reap the benefits of running your own business.

How to Start a Car Repair Business

  • How to opening of store

How to Start a Car Repair Business: 13 Steps (with Pictures)

1. Get a license to run your business. States have different licensing requirements for the auto repair business. Contact your local Department of Motor Vehicles for information on the type of license you need to operate an auto repair shop in your state. To obtain a license in your state, you must:

Fill out an application . Your vehicle department will provide you with an application to apply for a driver’s license.

Meet admission requirements . Most states require you to meet certain eligibility requirements in order to apply. These requirements can include things like your age, credit history, and criminal record.

Provide required documents and information . You may need to attach additional documents and information, e.g. B. Proof that the building you intend to use is for your business, your tax identification number and color photographs of your facility.

Pay any fees required to process the application . The application fee can be as low as $20, but if approved, you may have to pay $300 or more to get the license.

How to Start a Car Repair Business: 13 Steps (with Pictures)

2. Get insurance for your business. Before approving your application, most states require that you have a minimum amount of insurance for liability purposes. This amount can be as low as $50,000 or as high as $300,000.

Check with your state's motor vehicle department to determine how much insurance you need for your business.

How to Start a Car Repair Business: 13 Steps (with Pictures)

3. Fulfill your administrative needs. You need a clear financial system to operate as a business and anticipate potential pitfalls.

Consider hiring an accountant or financial advisor to help you budget for your expenses as a new business. An accountant can help you manage your tax and salary system and advise you on the best accounting system for your business.

You should also consider hiring an attorney if you are confronted with lawsuits or claims from your clients. Ask other mechanics in your area what lawyers they use and like.

How to Start a Car Repair Business: 13 Steps (with Pictures)

4. Implement a marketing strategy. Your success as a business depends on how you treat your customers and potential customers

Define your core values ​​as a brand . What three words should your customers think of when they think of your business? You might think of words like "honest," "loyal," and "reliable."

Print eye-catching flyers . You can put them in places where many customers might gather, such as: B. in gyms, community centers, office parks and in the parking lots of universities and colleges.

Set up a loyalty program . You can offer your customers a free oil change after they come to you for another service (like an engine repair or HVAC repair). You can also send out coupons to your neighbors or offer a digital discount through a service like Groupon.

Look at advertisements on TV or radio. TV spots and radio spots can also help you reach a wider audience and attract new customers.

How to Start a Car Repair Business: 13 Steps (with Pictures)

5. Form alliances with car dealerships. Some car dealers have their own mechanical workshops attached to their stores, but others do not. You should consider reaching out to merchants and asking them if they could refer customers to your company. Conversely, you could also advertise your business if your customers are looking to buy a new car.

  • How to design of a business plan

How to Start a Car Repair Business: 13 Steps (with Pictures)

6. Define the scope of your business. Opening your business plan to its scope will give you a general idea of ​​how many customers you will serve and to what extent you will serve them. How many cars do you plan to service in a day and how many employees will you hire?

Do you only offer a specialized service such as oil changes and tire repairs, or do you offer a more comprehensive repair program?

Will you buy a currently operating auto repair shop or start a brand new one from scratch? What are the costs and benefits of each of these options?

Are you planning to remain an independent repair shop or join a franchise like Jiffy Lube or Midas? They generally require $30,000 to $200,000 to join a franchise, but the upside is that they do the marketing and often have a nationally trusted brand name for potential customers. If you don't have any existing clients in your current career that you know would follow you to a new business, joining a franchise could be worth the investment.

How to Start a Car Repair Business: 13 Steps (with Pictures)

7. Describe possible locations. Your business plan is shaped by the possible locations for your car repair shop. Renting a workshop can be cheaper than buying or building one from scratch.

Look for places that are easy to get to from the freeway or main road. If your business is very isolated, customers are unlikely to come to you, especially if towing costs are often charged by the mile.

Your location should also provide space for an office where you can take care of your administrative needs and a waiting area for your customers.

How to Start a Car Repair Business: 13 Steps (with Pictures)

8. Determine your equipment needs. The price of the equipment will most likely be your biggest expense after the cost of the location. Do you rent your equipment or do you buy it directly? You will most likely need a special set of mechanic's tools ($15,000), at least one diagnostic tool ($5,000) and an elevator with installation ($3,700).

How to Start a Car Repair Business: 13 Steps (with Pictures)

9. Include your funding sources. With the cost of equipment, insurance, hiring, and paying your employees, you'll likely need anywhere from $50,000 to $100,000 to open your business, depending on your location.

You should clearly describe all the loans you want to apply for to fund your business? Will you apply for a business loan from your bank, Small Business Administration, or other source? To be approved, you must have a solid financial history (good credit, no bankruptcy) and be able to show that you have already raised approximately 70% of the funding.

If you're denied a loan by the Small Business Administration or your local bank, you can consider other lenders like OnDeck and Kabbage if you need cash fast. These lenders are for short term loans as their interest rates are very high.

If you decide to take out a loan from a friend or family member, write down the repayment terms of that loan anyway. You don't want to risk losing relationships if you can't repay the loan on time.

How to Start a Car Repair Business: 13 Steps (with Pictures)

10. Define your unique selling proposition. Most importantly, in your business plan, you clearly state what your company will offer that no other company in your area is offering. Do you offer the lowest prices, the fastest turnaround or the best customer service? Why would a customer choose your company over your competitors?

You may also consider specializing in a niche area such as B. restoring old cars, or offering your customers environmentally friendly or "green" services.

Defining your unique selling proposition will help lay the foundation for your broader marketing plan once you open your business.

  • How to expand business

How to Start a Car Repair Business: 13 Steps (with Pictures)

11. Consider going mobile. For minor repairs — like changing tires — you might consider offering roadside assistance or going to customers' homes to help them. This helps your customers associate you with loyalty and convenience.

How to Start a Car Repair Business: 13 Steps (with Pictures)

12. Encourage your employees to get certified. Only when your technicians are certified can your company gain credibility. Most automotive technicians are certified by the National Institute for Automotive Service Excellence.

Technicians must have a two-year degree and one year of formal experience as an automotive technician (or mechanic).

You can get certified in a number of specializations ranging from school bus repair, collision repair, truck repair and more.

Certification can help your business gain credibility in the eyes of your customers.

How to Start a Car Repair Business: 13 Steps (with Pictures)

13. Open more branches of your company. When your business becomes profitable and you have a surplus of customers, you should consider opening an additional location in an area that would be more convenient for other customers.

Don't do this until you get to the point where your first store of the day is running smoothly. Make sure you have reliable and capable managers to help you. If you still have to manage day-to-day needs yourself, this might not be the best time to expand.

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