Think about it. The numbers say it all. An auto repair shop is good business. Exploring one can be time spent well for you. For starters, nearly 300 million cars were registered in 2018 — the number could be higher now. Add over 70 million cars manufactured yearly, and cashing in on an auto repair shop business could be timely. And don’t forget. With auto repair shops, payments are pay-at-the-time-of-service mode. No collectibles mean no headaches. In short, greater revenues.
Bizcomps database on small business finances reveals auto repair shops could give 20% revenue for its median cash flow. That means an overall revenue of $750,000 could generate a sound cash flow of $150,000 for you, the owner. A little math should tell you it’s a good income. The million-dollar question now is: How do you get one started?
Starting something new can be quite stressful. It’s usually a roller coaster of emotions. Don’t let it give you a heart attack, though. All that is part of the terrain. What’s important is you stick to the basics and do your due diligence. That’s what makes entrepreneurs a rare breed. To get your auto repair shop off to a good start, below are the essentials you need to tackle head-on.
Of course, you’ll have to measure up. Getting yourself into auto repair is akin to being a doctor. You need a set of skills. Now, you might ask if you can repair a car if you don’t have a certification. This is where it gets tricky.
Let’s talk about credibility. Anybody can repair a car. The question is, will you have repeat customers if your expertise is subpar. It’s simple. A certification boosts your business. It shows your customers you’re the guy to rely on when things go wrong — much like a specialist doctor is in knotty situations.
The truth of the matter is a certification should be treated as a requirement and not just an option. Why? Take the ASE certification, for instance. Without one, getting liability insurance could be an uphill climb — if not an exercise in futility.
Just like certification is important, so is a business license. When you want to run an auto shop, you have to be ready legally. There are regulations that you have to abide by. A good example is the OSHA regulation.
The good news is attorneys can help you handle this job. A competent attorney should have all this taken care of. Retainer services may not be necessary as you can hire a part-time lawyer until you sort out your business’s legal aspect.
What’s the essence of a farmer going to farm without a cutlass? Or, for that matter, a soldier without a gun? Tools define the trade. The same holds true for your auto repair shop.
So make a list of the important equipment you need. Standard items can include a jack, air compressor, and oil drain, to name a few. Find out the price. And then try asking around for where you can get the best equipment in town.
If you want to offer quality service, then exploring the prospects of a mobile column lift for vehicles should bid you well. When you have one, you can turn any space into one great service area. Its effect is definitive.
That way, you won’t have to crawl from down under and get yourself in a messy situation. Even better, a mobile column can be a great way to attract better-paying customers.
This is quite obvious. Before starting a business, you know you need funds. You need money to start up. You need funds for getting a space and then get some important equipment needed.
Know that this is where you do your due diligence. Pour needed hours into it. You can come up with an estimate, but to say it’s accurate to the last dollar may be impossible. Thus, make sure you have enough for miscellaneous just in case something unexpected comes up.
To get bonafide insurance (which you should), the ASE certification is a must. One benefit is that you can find better deals with the certification. Know that many insurance companies increase the interest rate without the certification.
You will be deceiving yourself if you think you don’t need staff. No matter how small your auto repair shop is, you need a hand. That’s because there are so many things that need to be done.
Think of it as good branding. An auto repair shop short on hands doesn’t sound right. So, you need people that are skilled in different areas (e.g., painting, engine repair).
Then again, do your due diligence. Check for services that are in high demand in that area. This would be a good guide to making a decision. And see where your business could do better.