Repairing Guides

how to start your own auto repair shop

by Adeline Braun Published 3 years ago Updated 2 years ago
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  1. Obtain a license to operate your business. States have different licensing requirements for auto repair business.
  2. Purchase insurance for your business. Before approving your application, most states require you to have a minimum amount of insurance for liability purposes.
  3. Fulfill your administrative needs. You will need a clear financial system in place in order to operate as a business and to anticipate potential pitfalls.
  4. Implement a marketing strategy. Define your core values as a brand. What are three words your customers should think of when they think of your business?
  5. Make alliances with car dealerships. Some car dealers have their own mechanical shops attached to their businesses, but others don't.

Should you start your own car repair shop?

Most drivers now have cars that are at least 10 years old, which means that the need for an auto mechanic is growing for more consumers. Starting your own car repair shop can give you control over your own hours and allow you to reap the benefits of owning your own business. Define the scope of your business.

How to start an auto mechanic business?

To build a brand, auto mechanics need to network with any other car repair business that may require their services. Partner with local taxi companies or a limousine service, both of which would need the services of reliable auto repair shops for regular vehicle repair and maintenance.

What makes a good auto repair shop business model?

One of the first roles to fill should be customer service. While mechanics are vital to the success of an auto repair shop, it’s customer service that keeps customers coming in the door. Get more ideas with our Business Ideas Generator.

What do you need to open an auto shop?

The right equipment is essential to opening an auto shop. It takes a good knowledge of workshop equipment to make all the right decisions and you also need to learn using and maintaining different equipment correctly.

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How profitable is a auto repair shop?

Average Profit of a Auto Body Shop In general, a larger auto body shop can earn $100,000 per year, and mechanics themselves can make between $30,000 and $50,000 per year. BizStats offers a breakdown of costs vs revenues. This, of course, will vary depending on your location and area of expertise.

How do I start my own auto repair business?

6 Ways to Increase Auto Repair Shop ProfitsTake a Disciplined Approach to Your Finances. ... Schedule Appointments. ... Inspect Every Vehicle. ... Reduce Fees on Card Transactions. ... Invest in Current Customers (and Employees) ... Generate New Customers with Local Coupon Advertising.

What is the most profitable auto repair?

Brake jobs A car's brakes are one of the most critical. A full-service repair shop that offers brake adjustment, repair, and replacement services will never run out of brake job customers.

How do car repair shops make money?

Auto repair shop businesses make money by taking in customers' vehicles, testing them, replacing the parts that don't work, and sending the customers on their merry way. Thus concludes how auto repair shop businesses make money.

How do I run a successful auto repair shop?

How To Manage An Auto Repair Mechanic Shop?Increase Mechanic Productivity.Use Automotive Management Software.Reduce Employee Turnover Rate. ... Give Discounts And Introduce Sales Offers. ... Offer Guarantee & Stand Behind Them. ... Display An Ethics Statement.Store Budget.Reward Your Loyal Customers.

Who is the world's best mechanic?

The Worlds Greatest Mechanic — Dave Williams.

What is the biggest automotive repair company?

Almost all of the auto repair franchises saw growth this year. Big O Tires tops the list in sales growth at 7.2 percent, with Tuffy Tire next up 3.6 percent. The rest of the companies saw 1 percent or less sales growth this year.

Are muffler shops profitable?

Starting a muffler shop business can be an excellent entrepreneurial activity. With muffler installation experience, you will be able to parlay your background into a profitable business.

How much does it cost to start a car company?

In the case of a startup car manufacturing company, you need at least $10 million for your startup phase to go smoothly. Research and development can last 2- four years. It's hard to borrow that amount of money from a business finance bank -- especially if you have no collateral to offer.

What does a car workshop need?

Items That Every Car Workshop NeedsA Vehicle Lift. Every workshop, from the smallest through to big dealerships, needs to have a vehicle lift or two. ... Proper Lighting. A dark and dingy workshop is a workshop where mistakes are made. ... Wall Mounts. ... Diagnostic Equipment. ... Air Compressors. ... A Good Sound System.

How do I become a auto mechanic?

Steps to Becoming a MechanicDo Some Homework. Career mechanics have physically demanding jobs. ... Complete a High School Education. ... Complete a Mechanic Training Program. ... Become Entry-Level Certified. ... Complete an Apprenticeship or Internship. ... Get Hired as a Mechanic. ... Become a Certified Professional Technician. ... Keep Learning.

How do I open a mechanic shop in NJ?

Requirements for auto body repair licensing: You must be 18 years of age. Have legal capacity to contract and be liable for all debt incurred....MVC issues different auto body repair licenses based on the types of repairs the facility will perform:Full service.Auto body limited.Auto body new dealer sublet.

Due to the spread of the coronavirus, is this business essential?

Yes. Based on current information across multiple states with emergency orders, this business provides essential goods and services.For more inform...

What are the costs involved in opening a car repair shop?

Costs for starting a shop vary, but generally include: Business license: $50 to $100. ASE certifications: $36 registration fee, one time, plus $39...

What are the ongoing expenses for a car repair shop?

Ongoing expenses for the business include shop rental (unless the business owner owns the shop building), insurance, and labor costs. Mechanics can...

Who is the target market?

Clients for auto repair businesses are unique in that they all have one thing in common: a broken or serviceable vehicle. The best types of custome...

How much can you charge customers?

Labor rates vary depending on how the shop is set up. At a dealership, mechanics are paid differently than at an independent shop. One of the main...

How much profit can a car repair shop make?

According to US News, mechanics make between $30,000 and $50,000 per year. So, a one-man shop could expect to make around this much. The owner of a...

How can you make your business more profitable?

Making the business more profitable isn’t easy. Owning a shop is hard work. Pulling in extra income is usually a matter of specialization. Converti...

Is this Business Right For You?

This business is good for people who are mechanically-inclined. In most states, a license is required to work as a mechanic. Each vehicle manufactu...

What happens during a typical day at a car repair shop?

Business owners usually have to check maintenance logs first thing in the morning, check upcoming appointments, and meet with shop managers about v...

What are some skills and experiences that will help you build a successful car repair shop?

Mechanics need special training, usually Automotive Service Excellence (ASE) certification, in addition to general automotive education. Some high...

How many employees do you need to work at a small shop?

If you have a very small shop, you might do all of the work yourself, but you will probably still need at least one employee to handle telephone calls and customers. If you have a couple of lifts and want to maximize your capacity, you’ll need additional mechanics to help service vehicles. The hiring process should start at least a month before your grand opening. You’ll want enough time to check references, find the best candidates, and negotiate compensation packages.

What happens when you work on the shop floor without ownership?

When you work on the shop floor without ownership, your earnings top out at your salary or hourly wage.

What is the American dream of owning a business?

For many, owning a business is a part of the American Dream and a path to personal wealth. If you’re a mechanic or working on becoming a mechanic, reaching that dream might start with the idea of opening your own auto repair shop. You can set the hours, work with customers on pricing, specialize on interesting vehicles, ...

Do I need a lawyer to open a business?

A lawyer is invaluable during this process, helping you ensure every “i” is dotted and “t” crossed. You don’t have to retain a lawyer, but it can save you from a lot of mistakes along the way.

Is Advanced Technology Institute a warranty?

DISCLAIMER – Advanced Technology Institute (ATI) makes no claim, warranty or guarantee as to actual employability or earning potential to current, past or future students or graduates of any educational program offered. The Advanced Technology Institute website is published for informational purposes only.

Why do car repair shops need a CO?

For instance, since car repair shops operate out of garages, a Certificate of Occupancy (CO) is mandatory as it proves that all legal and safety regulations have been met by the garage and it is fit for people to work in/customers to visit.

What to do at a grand opening?

Your big day is here…hold a grand opening where people in the area can stop by and see what differentiates you from the competition. You could advertise promotional discounts for the first week (or month) or give free services (e.g. a 5-point inspection) to get customers into the door.

What is Autoleap software?

AutoLeap is a powerful all-in-one auto repair shop software that helps to keep complete track of your business – from scheduling appointments to managing technicians and generating invoices .

What is AutoLeap integration?

AutoLeap’s QuickBooks integration simplifies your accounting with the automated flow of transactional data, saving you a lot of time and hassle.

Why is it important to keep a detailed history of your business?

Whether you run a real estate business or an automotive repair shop, keeping a detailed and organized history of your income, expenses, assets, and liabilities is critical to understanding your business’s financial performance over time. It will also help you file annual taxes faster because your accounts would already be in place!

Do car repair shops have to follow federal regulations?

Car repair shops must follow mandato ry federal and state-level environmental regulations as well. You can find the complete checklist here.

What happens during a typical day at a car repair shop?

If the owner also works in the shop, then a typical day will involve working on a variety of different vehicles.

What is the growth potential for a car repair shop?

A small auto repair shop can be run out of an individual’s garage in some states. While licensing is usually necessary, there are typically no restrictions on how the shop owner operates the business as long as all local codes and ordinances are obeyed.

How does an auto body shop make money?

An auto body shop or car repair shop makes money by charging a flat fee or hourly rate for service. In some shops, owners set routine maintenance fees, charging a set price for simple maintenance like an oil change. In other shops, all work is based on parts and labor cost.

What is the best type of customer for an auto repair business?

The best types of customers are those with a service contract. Ongoing service contracts ensure steady income for the shop and reduce cash flow problems both in the short and long-term.

How do mechanics find customers?

Finding new customers is usually done by word of mouth but mechanics also network with other businesses that might need their services. For example, a shop might partner with a local taxi company or limousine service to offer regular repairs and maintenance.

How much do mechanics make?

According to US News, mechanics make between $30,000 and $50,000 per year. So, a one-man shop could expect to make around this much. The owner of a larger shop can easily make $100,000+ per year by managing a small team of mechanics.

Why do businesses need insurance?

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

What is the next step in a business plan for an auto repair shop?

Your business plan has two objectives: to allow you to verify that the potential profitability of your auto repair shop is real, and to help you convince financial partners to invest in your project.

How to do market research?

To conduct your market research accurately, you will have to: 1 Analyze the demand on the local market: who are your potential customers? How many of them are there? What triggers their purchase (breakdowns or a need for specialized equipment such as winter tires, for example)? Is their choice of auto repair shop dictated by proximity, brand or price? 2 Study the competition: who are your competitors, and what exactly do they offer? How can you set yourself apart from them? 3 Consider the choice of suppliers: where are you going to source your spare parts, and what are the commercial terms offered by each supplier (price, choice, quality, payment terms, delivery options, minimum quantity per order, etc.)? 4 Study the sector's standards and regulations: if being a good mechanic is important, you should not forget the administrative part. Good knowledge of the regulation, licences required, but also of the standards to be respected is necessary.

Is the auto repair market impacted by economics?

Although the auto repair market is not a sector that's dramatically impacted by economic developments (even during the 2008 crisis), it continues to undergo a significant number of changes - such as the retirement of many garage owners.

Is the auto repair market competitive?

The auto repair shop market is competitive. Therefore, we advise you to carefully study the competitive dynamics within the area in which you'd like to set up your own auto repair shop, to ensure that the local market is not already saturated before doing so.

Do auto repair shops have a clientele?

Existing auto repair shops already have a well-established clientele. To stand out from the competition, you need to offer a service that can't be found elsewhere and for which your future customers will come, and, most importantly, keep coming back.

How much does it cost to set up a small shop?

You will need some cash for setting up the building lease, and painting your floor, signwriting etc and buying or leasing equipment, ( In western countries between $20,00 and $100,00 is the usual cost range for setting up a small shop to a larger operation with 4 lifts.

Why do you need to outsource a workshop?

A workshop that can do everything in-house will attract more customers, and if you cannot do a job because you do not have the necessary equipment or machinery, you need to outsource it.

How long do hoists last?

I spent two years rebuilding, installing and servicing hoists. The average life of a cheap hoist is around two years before downtime and major repairs. Despite what your equipment supplier says, cheap hoists are dangerous, and when they need rebuilding parts are often not available.

What tools do you need to work on a circlip?

Hand tools, such as circlip pliers, bearing pullers, ring and open end spanners, depending on what you work on this will vary, but need to be in complete sets. A full range of inside and outside circlip pliers is essential. Hand held mechanics lamps, air guns and lines, rolling oil pans, Cooling fluid pans etc.

Why is the workshop floor important?

The workshop floor is very very important. More so than in most businesses as it must withstand stains from dirty thin and hot oil. It happens that spills do occur when doing oil changes, but more about how to stop that happening later.

Do you need to paint a floor before moving a hoist?

BEFORE you move your hoists in, you need to know that the floor is level, thick and strong and most important, treated or painted so that the oil does not soak into the concrete and weaken it , especially around the hoist uprights. Ensure the painted floor surface is skid-proof and smooth to roll equipment on.

Can you back a car off a hoist inside a building?

Remember to ensure the building is deep enough so you can back each car off the hoist INSIDE the building. Reception, office, toilets and lunch room need not be big, but should be neat and comfortable for workers and customers. A water fountain is a good idea in both reception and lunch room.

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