auto shop business plan

Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

• Brake repair
• Powertrain repair
• Muffler & exhaust repair
• Heating repair
• Electrical system repair
• Wheel alignment and repair
• Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

• Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
• Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
• The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Auto repair shop build-out: $100,000
• Equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

• Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
• Has begun negotiations to purchase the warehouse that will become the shop.
• Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
• Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

	Total	Percent
Total population	1,680,988	100%
Male	838,675	49.9%
Female	842,313	50.1%
20 to 24 years	114,872	6.8%
25 to 34 years	273,588	16.3%
35 to 44 years	235,946	14.0%
45 to 54 years	210,256	12.5%
55 to 59 years	105,057	6.2%
60 to 64 years	87,484	5.2%
65 to 74 years	116,878	7.0%
75 to 84 years	52,524	3.1%

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

• Individual vehicle owners
• Delivery drivers
• Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

• Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
• Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

• Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

• Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
• Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
• Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
• Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of vehicles serviced per month: 450
• Average fees per month: $15,000
• Overhead costs per year: $140,000

Financial Projections

Income statement.

		FY 1	FY 2	FY 3	FY 4	FY 5
Revenues
	Total Revenues	$360,000	$793,728	$875,006	$964,606	$1,063,382
Expenses & Costs
	Cost of goods sold	$64,800	$142,871	$157,501	$173,629	$191,409
	Lease	$50,000	$51,250	$52,531	$53,845	$55,191
	Marketing	$10,000	$8,000	$8,000	$8,000	$8,000
	Salaries	$157,015	$214,030	$235,968	$247,766	$260,155
	Initial expenditure	$10,000	$0	$0	$0	$0
	Total Expenses & Costs	$291,815	$416,151	$454,000	$483,240	$514,754
EBITDA		$68,185	$377,577	$421,005	$481,366	$548,628
	Depreciation	$27,160	$27,160	$27,160	$27,160	$27,160
EBIT		$41,025	$350,417	$393,845	$454,206	$521,468
	Interest	$23,462	$20,529	$17,596	$14,664	$11,731
PRETAX INCOME		$17,563	$329,888	$376,249	$439,543	$509,737
	Net Operating Loss	$0	$0	$0	$0	$0
	Use of Net Operating Loss	$0	$0	$0	$0	$0
	Taxable Income	$17,563	$329,888	$376,249	$439,543	$509,737
	Income Tax Expense	$6,147	$115,461	$131,687	$153,840	$178,408
NET INCOME		$11,416	$214,427	$244,562	$285,703	$331,329

Balance Sheet

		FY 1	FY 2	FY 3	FY 4	FY 5
ASSETS
	Cash	$154,257	$348,760	$573,195	$838,550	$1,149,286
	Accounts receivable	$0	$0	$0	$0	$0
	Inventory	$30,000	$33,072	$36,459	$40,192	$44,308
	Total Current Assets	$184,257	$381,832	$609,654	$878,742	$1,193,594
	Fixed assets	$180,950	$180,950	$180,950	$180,950	$180,950
	Depreciation	$27,160	$54,320	$81,480	$108,640	$135,800
	Net fixed assets	$153,790	$126,630	$99,470	$72,310	$45,150
TOTAL ASSETS		$338,047	$508,462	$709,124	$951,052	$1,238,744
LIABILITIES & EQUITY
	Debt	$315,831	$270,713	$225,594	$180,475	$135,356
	Accounts payable	$10,800	$11,906	$13,125	$14,469	$15,951
	Total Liability	$326,631	$282,618	$238,719	$194,944	$151,307
	Share Capital	$0	$0	$0	$0	$0
	Retained earnings	$11,416	$225,843	$470,405	$756,108	$1,087,437
	Total Equity	$11,416	$225,843	$470,405	$756,108	$1,087,437
TOTAL LIABILITIES & EQUITY		$338,047	$508,462	$709,124	$951,052	$1,238,744

Cash Flow Statement

		FY 1	FY 2	FY 3	FY 4	FY 5
CASH FLOW FROM OPERATIONS
	Net Income (Loss)	$11,416	$214,427	$244,562	$285,703	$331,329
	Change in working capital	($19,200)	($1,966)	($2,167)	($2,389)	($2,634)
	Depreciation	$27,160	$27,160	$27,160	$27,160	$27,160
	Net Cash Flow from Operations	$19,376	$239,621	$269,554	$310,473	$355,855
CASH FLOW FROM INVESTMENTS
	Investment	($180,950)	$0	$0	$0	$0
	Net Cash Flow from Investments	($180,950)	$0	$0	$0	$0
CASH FLOW FROM FINANCING
	Cash from equity	$0	$0	$0	$0	$0
	Cash from debt	$315,831	($45,119)	($45,119)	($45,119)	($45,119)
	Net Cash Flow from Financing	$315,831	($45,119)	($45,119)	($45,119)	($45,119)
	Net Cash Flow	$154,257	$194,502	$224,436	$265,355	$310,736
	Cash at Beginning of Period	$0	$154,257	$348,760	$573,195	$838,550
	Cash at End of Period	$154,257	$348,760	$573,195	$838,550	$1,149,286

Auto Repair Business Plan FAQs

What is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

Auto Repair Business Plan Template & PDF Example

• July 19, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful auto repair business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your auto repair business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an auto repair business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your auto repair business concept into reality. Let’s dive in!

Our auto repair business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the garage’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your auto repair business’s concept, market analysis , management, and financial strategy.
• Services & Location: Describes the shop’s facilities, services offered, and why its location is beneficial for customers.
• Operational Details: Outlines the operational aspects like workshop layout, equipment used, and staff roles.
• Key Stats: Presents data on market size , growth trends, and customer demographics.
• Key Trends : Highlights technological advancements and changing consumer preferences in auto repair.
• Key Competitors: Analyzes main competitors in the area and your business’s unique selling points.
• SWOT : Conducts a strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Discusses strategies to draw in and keep customers, including promotional activities and customer service enhancements.
• Timeline : Lists important goals and milestones from the outset through the first year.
• Management: Provides information on the auto repair business management team and their responsibilities.
• Financial Plan: Forecasts the business’s 5-year financial performance, including expected income, profit margins, and outlays.

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Auto Repair Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

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Executive Summary

The executive summary is a critical component of your bike shop business plan. It offers a concise yet comprehensive view of your business within the bike retail and service market, including competitive analysis and financial forecasts. This section is crucial for attracting investors and partners, as it highlights your business’s potential and strategic plans.

A two-slide PowerPoint presentation is recommended for this summary. The first slide should detail your business model, covering the range of products and services unique to your bike shop. The second slide should focus on your management team’s qualifications and financial goals, giving a snapshot of anticipated market performance and growth prospects.

Auto Repair Business Plan Executive Summary Example

Business Overview

In the executive summary of an auto repair shop business plan, the business overview section is crucial for detailing the shop’s offerings and operational capabilities. This includes the shop’s location, facility features, range of services, brand specialization, and any additional customer-focused services.

For an auto repair shop, it’s important to emphasize the expertise in specific vehicle brands, the advanced technological equipment available, and the comprehensive nature of services offered, from routine maintenance to complex repairs. The inclusion of customer convenience features, such as loaner vehicles and service guarantees, also plays a significant role in differentiating the shop in the market.

Example: AutoFix Hub, situated in a prime automotive district, operates from a 10,000 sq ft workshop equipped with state-of-the-art diagnostic and repair tools. Specializing in European brands like BMW and Mercedes-Benz, the shop offers a full spectrum of services and stands out with additional customer conveniences like loaner vehicles and a 90-day service guarantee.

Market Overview

The market analysis section should assess the size, growth, trends, and competitive landscape of the auto repair industry. It’s crucial to provide insights into the industry’s dynamics, such as the demand for specialized repair services due to increasing vehicle complexity and the shift of consumer preference towards independent repair shops.

Understanding the competitive environment, including the presence of major chains and local service providers, is vital for identifying the shop’s market position and opportunities for growth.

Example: The US auto repair market, valued at $76.8 billion, is growing steadily. AutoFix Hub is positioned in a market with 281,000 shops, differentiating itself through specialized services for European models. The shop capitalizes on the trend of consumers preferring independent shops for better value, distinguishing itself among 7 key local competitors.

Management Team

In this section, the focus is on the background and expertise of the management team leading the auto repair shop. It’s important to highlight their experience in the automotive industry and their roles within the shop.

The management team’s qualifications are a key aspect of the business’s ability to deliver quality services and manage operations efficiently. This part of the summary should instill confidence in the team’s capabilities to drive business growth and maintain high standards of service.

Example: The CEO, a co-founder of AutoFix Hub, brings over 15 years of industry experience, including management roles at leading auto repair chains. The Lead Mechanic, also a co-founder, possesses extensive expertise in servicing European models, ensuring high-quality repair work and customer satisfaction.

Financial Plan

The financial plan overview provides a snapshot of the auto repair shop’s revenue and profit targets. It outlines the financial goals, including specifics like aiming to reach $7.8 million in annual revenue with a 23% EBITDA margin by 2027.

This section reflects the shop’s financial health and potential for profitability, taking into account market positioning, service offerings, and operational strategies.

Example: AutoFix Hub aims to achieve $7.8 million in yearly revenue with a 23% profit margin by 2027. This financial goal is underpinned by strategic expansion of services, targeting high-value vehicle brands, and leveraging the growing consumer trend towards independent repair shops for specialized services.

For an auto repair business, the Business Overview section can be effectively divided into 2 main sections:

Garage & Location

Briefly describe the garage’s physical setup, focusing on its layout, functionality, and the welcoming environment it creates for customers.

Mention the business’s location, emphasizing its ease of access and the convenience it offers to customers, such as proximity to major roads or availability of ample parking. Explain why this location is strategically chosen to attract your target clientele, considering factors like high traffic volume or lack of similar services in the area.

Services & Pricing

Detail the range of maintenance and repair services offered, from routine services like oil changes and tire rotations to more specialized repairs such as engine diagnostics, transmission work, or electrical system repairs.

Outline your pricing strategy , ensuring it mirrors the quality of services provided and aligns with the market segment you’re targeting. Highlight any service bundles, membership deals, or loyalty programs that offer added value to your customers, fostering repeat business and customer loyalty.

Make sure to cover here _ Services & Location _ Operational Details

Industry size & growth

Begin with an overview of the auto repair industry, noting its size and potential for growth. Highlight key factors like the increasing vehicle population, aging car fleets, and trends towards vehicle longevity.

Key market trends

Next, discuss current trends such as the demand for specialized services, the rise of new automotive technologies, and eco-friendly repair practices. Emphasize the growing need for expertise in electric and hybrid vehicle maintenance and advanced diagnostics.

Key competitors

A competitive analysis is not just a tool for gauging the position of your auto repair shop in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your auto repair shop’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Auto Repair Industry

Begin by identifying and mapping out local auto repair shops, dealerships offering repair services, and franchises specializing in car maintenance within your vicinity. Direct competitors include shops offering similar services or catering to similar vehicle types, while indirect competitors might involve dealerships with in-house repair centers or mobile repair services.

Leverage online resources such as Google Maps and review platforms like Yelp and Angie’s List to gather insights into competitor locations, customer feedback, and service ratings. Positive reviews praising the expertise and quick turnaround at “Speedy Auto Care” highlight a strength that your competitor possesses in the market.

Auto Repair Competitors’ Strategies

A comprehensive analysis of competitors’ strategies encompasses various operational dimensions:

• Service Portfolio: Evaluate the spectrum of services offered. For instance, a competitor like “Eco-Green Auto Care” gaining traction by specializing in eco-friendly repairs and using sustainable practices signifies an emerging market trend towards environmentally conscious auto maintenance.
• Technical Expertise: Consider the technical proficiency and specialized services provided. An auto shop like “Performance Motorsport Garage” focusing on high-performance vehicle tuning might cater to a different clientele compared to a shop specializing in general repairs.
• Pricing and Packages: Conduct a detailed comparison of service pricing structures with competitors. Is your shop positioned similarly to “Affordable Auto Fixes” or more aligned with premium services offered at “Elite Car Service Centre”?
• Marketing Strategies: Analyze competitors’ marketing approaches. Are they investing heavily in digital advertising, local sponsorships, or community engagement to bolster brand visibility and customer reach?
• Customer Experience: Evaluate the overall customer journey. Perhaps “Friendly Auto Repairs” excels in customer service by offering conveniences such as online appointment scheduling, shuttle services, or a dedicated customer portal.
• Operational Efficiency: Observe technological advancements or innovative processes adopted by competitors. For example, “Tech-Forward Motors” might utilize AI-powered diagnostics or automated service reminders for enhanced customer engagement and operational efficiency.

What’s Your Auto Repair Shop’s Value Proposition?

Define your shop’s distinctive value proposition . It could be specialized services such as transmission rebuilds, a focus on superior customer service, or offering a comprehensive maintenance package with added value services like complimentary car washes or extended warranties.

Identify market gaps by analyzing customer feedback, industry trends, and unmet needs within the automotive repair sector. For instance, an increasing demand for electric vehicle maintenance might signal an opportunity for your shop to invest in training technicians for EV-specific repairs, thus addressing a niche market segment overlooked by competitors.

Tailor your approach based on location: A shop situated in a suburban area might emphasize personalized services, loyalty programs, and extended warranties to build lasting relationships with local customers. In contrast, an urban location might focus on quick turnaround times and express services to cater to the fast-paced lifestyle of city dwellers.

First, perform a SWOT analysis for your auto repair business, identifying Strengths (such as highly skilled technicians and a broad range of services), Weaknesses (like high operational costs or intense competition), Opportunities (for instance, the growing demand for maintenance of aging vehicles), and Threats (such as economic downturns impacting consumer spending on non-essential repairs).

Marketing Plan

Then, craft a marketing strategy detailing how to draw in and keep customers through targeted advertising, promotional offers, a strong online presence, and involvement in local community events.

Marketing Channels

Utilize various marketing channels to communicate your brand and services, engage with potential clients, and drive foot traffic to your shop.

Digital Marketing

• Online Presence: Maintain a professional website that showcases your services, customer testimonials, and informative content about automotive maintenance and care. Optimize your website for local SEO to improve visibility in local search results.
• Social Media: Utilize platforms like Facebook, Instagram, Twitter, and YouTube to showcase your expertise through before-and-after repair images, customer testimonials, and educational content. Engage with your audience by responding promptly to inquiries and comments.
• Email Marketing: Build an email list by offering valuable content or discounts in exchange for sign-ups. Send regular newsletters featuring promotions, DIY car care tips, and updates about new services or events.

Local Advertising

Connect with your local community through targeted advertising efforts:

• Local Publications: Advertise in local newspapers, magazines, or community newsletters to reach a wider audience. Consider sponsoring specific automotive sections or publishing informative articles on car maintenance.
• Community Engagement: Participate in local car shows, street fairs, or dealership events. Offer free vehicle check-ups or workshops on basic car maintenance to showcase your expertise and build rapport with potential customers.
• Collaborations: Partner with car dealerships, rental companies, or local businesses for mutually beneficial promotions or referral programs. Cross-promotions can expand your reach within the local market.

Sales Channels

Optimize sales channels to maximize revenue and enhance customer satisfaction.

In-Shop Sales Techniques

• Service Upgrades: Train your staff to suggest additional services or maintenance checks during customer interactions. For instance, recommending a wheel alignment with a tire change or a fluid flush with an oil change can add value to the customer’s visit.
• Retail Merchandise: Display automotive care products or accessories prominently within your shop. Educate customers on their benefits and relevance to vehicle maintenance.
• Service Packages: Offer bundled services, such as a ‘Seasonal Maintenance Package’ or ‘Pre-Trip Inspection,’ to incentivize customers and simplify their automotive care choices.

Online Sales Integration

Leverage technology for streamlined sales processes:

• Online Appointment Booking: Implement an easy-to-use online booking system on your website and social media platforms. Offer incentives like discounts or priority scheduling for online bookings.
• E-Commerce Integration: Consider selling car care products, accessories, or merchandise online. Offering package deals on services or maintenance kits can attract customers looking for convenience.
• Virtual Consultations: Provide online consultations for basic troubleshooting or pre-service assessments. This personalized approach can lead to tailored service bookings or product recommendations, enhancing the customer experience.

Membership & Loyalty Programs

Encourage customer retention and repeat business:

• Membership Options: Create membership plans offering discounted rates for routine maintenance services or exclusive benefits such as priority scheduling or complimentary check-ups.
• Loyalty Rewards: Implement a digital loyalty program where customers earn points for every service or purchase. These points can be redeemed for discounts on future repairs or merchandise, fostering long-term customer relationships.

Lastly, set up a comprehensive timeline highlighting key milestones for the auto repair shop’s launch, marketing initiatives, customer base development, and expansion goals, ensuring the business progresses with clear objectives and purpose.

The Management section focuses on the auto repair business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the auto repair business toward its financial and operational goals.

For your auto repair business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your auto repair business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your auto repair business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Table of Contents

Complete Guide on Auto Repair Shop Business Plan (2023)

Success in the auto repair business starts with a good plan. Your shop’s future depends on it. One mistake can be a big problem. That’s why you need to make sure you have everything in place for a successful auto repair business.

In this blog, we’ll help you create a strong business plan for an auto repair shop, whether you’re starting out or already have a shop. We’ll also give you a business plan sample for an auto repair shop that you can use. 

Let’s get started!”

Looking to expand your auto repair shop? Schedule a demo now.

What is an auto repair shop business plan? 

An auto repair shop business plan is like a roadmap for your car repair business. It’s a document that explains your business idea to potential investors or partners.

Imagine you’re planning a long road trip. 

Before you start, you make a detailed plan with the places you want to visit, the things you want to do, and the route you’ll take. 

Similarly, an auto repair shop business plan is like that plan for your car repair business. It’s a written guide that outlines what your business wants to achieve, how it will do it, and why it’s a good idea. 

You use this plan to show to others, like investors, so they understand your business and may want to be part of it. It’s like the master plan for your car repair adventure!

Why you need a business plan for auto repair shop: 

You will understand your business better:.

• Your business plan is your GPS. It gives you a clear route to your goals.
• Identify and tackle obstacles with confidence by sticking to your plan.
• It’s your guide for financing, hiring, operations, and branding.

It will give you a Smooth Driving:

• Prevent hiccups by investing wisely.
• Your business plan helps you choose the right people, processes, technology, and marketing.
• Ensure your investments align with your long-term goals.

Make your business sustainable: 

• Map out a sustainable and viable business model.
• Secure funding, plan expansion, and achieve growth milestones.

It will give you Clear Path:

• Engage in a regular enjoyable activity.
• Form habits that help you focus and organize thoughts.
• Find solitude to regain focus on business goals.
• Personalize your approach for clarity and success.

Creating an auto repair shop business plan: 

Understanding the basics.

It is important that you first clever the basics before you create a business plan. 

For that, you need to understand the type of your business. There are many types of business such as startup business plan, internal business plan, and strategies plan.

For an auto body repair shop business plan, you need to form some key elements in your company such as market, company description, sales strategies, management, product/service, fundings, financial projections. Etc. 

Company Description: 

This chapter is the heart of your business plan. Here you will tell your story. Why do you want to start an auto repair business? What is the mission behind it? You will explain your services. 

This is your chance to give a unique identity to your repair shop. This can help you gain competitive advantage. Let’s discuss these things one by one: 

Overview: 

Give your readers a sense of what your auto repair shop is all about. You can tell the essence of your shop here. You need to discuss the history of your business, founders; story, and company culture, 

Mission Statement: 

Articulate the core purpose of your business – what it aims to achieve and how it serves its customers or clients.

Vision Statement: 

Describe the future you envision for your company. What impact do you want to have on your industry, community, or the world?

Products or Services

Now discuss what you are offering. Describe your services that show a unique value proposition. It is important that it is relevant to your auto repair customers. 

Market Positioning

Marketing and branding is very important to have a successful auto repair business. Focusing on market positioning is crucial. You need to touch on points like target audience, competitive advantage and market niche. 

Short-Term Goals: 

These could include milestones like launching a new product, reaching a specific revenue target, or expanding your customer base.

Long-Term Goals: 

Detail your overarching aspirations, such as becoming an industry leader, expanding globally, or achieving a certain level of market share.

Market Analysis

You need to know what you are dealing with on a daily basis. 

What do your ideal customers want? What is trending in the market? How can you attract more and more customers? 

For this, you need to have a comprehensive knowledge of the auto repair market. There are three things you need to cover: 

Target Market: 

Understand your audience. Check out the following things in your customers: 

• Income level 
• Values 
• Lifestyles 
• Purchasing behaviors

Address the market needs: 

You need to find out the needs of your market. Identify the pain points of your customers.

Pro tip: you can conduct surveys or focus groups to find out the pain points of your target audience. 

After finding out the paint points, come up with unique selling point that covers the needs of your market. Clearly articulate how your products or services stand out and provide distinct advantages over competitors.

Analyzing the Competitive Landscape: 

In every market, competition is a reality. By analyzing your competitors, you gain insights into their strengths, weaknesses, and strategies. Find out direct competitors that offer similar services. 

After finding your competitors, you can set your business apart by offering better services from them. 

Market Size and Growth Potential

Assessing the overall market size and growth potential provides a snapshot of the opportunity at hand. It helps you understand the scope of your market and whether it’s expanding or contracting.

Industry Trends: 

Now you need to collect data related to auto repair shops. This can help you in finding industry trends. Find out the merging technologies that you can use in your shop. 

Marketing and Sales Strategies

Now we know our services and market for the auto repair shop. But how are we gonna sell our service to the market

That’s here, you need marketing strategies for your auto repair shops. Follow the following steps to define your strategies: 

• Identify the platforms you’ll use to reach your audience. 
• Craft a consistent and compelling message that resonates with your target audience.
• Plan the creation and distribution of valuable content that educates, entertains, or solves problems for your audience. 
• Detail how you’ll guide potential customers through the sales journey, from initial contact to making a purchase.
• Explain how you’ll attract potential customers.
• Describe how you’ll build relationships with leads over time. 
• Outline the steps you’ll take to convert leads into paying customers. 
• Allocate funds to different marketing strategies
• Explain how you’ll measure the effectiveness of your marketing and sales efforts.
• Identify the KPIs you’ll monitor, such as website traffic, conversion rates, click-through rates, and customer acquisition cost.

Organization and Management

Now, you need to discuss the management of your auto repair shop. Highlighting key team members and explaining their roles adds depth and credibility to your business plan.you can discuss the following things: 

• Organizational Structure
• Hierarchical Chart.
• Functional Divisions
• Key Management Team
• Founder(s) and CEO
• Executive Team Members
• Responsibilities and Roles
• Founder’s Role
• Key Executives’ Roles
• Team Strengths and Expertise
• Relevant Experience
• Growth Plans
• Recruitment Strategy

Product or Service Line

In this chapter, you’ll provide a thorough exploration of your products or services. You can discuss the following things: 

• Introduction to Your Offerings
• Detailed Description
• Development and Design
• Intellectual Property
• Product Life Cycle
• Future Development
• Visuals and Media
• Customer Testimonials and Case Studies
• Pricing Strategy
• Regulatory and Compliance
• Sustainability and Ethics

Financial Projections

In this chapter, you will do a proper financial analysis. You will discuss the financial dynamics of your business. 

1. Profit and Loss: 

In this, you will show projected profit and loss for the forecast period. Below is an example from the business plan for an existing auto repair shop. you can use it to make your own a profit and loss sheet. 

2.Cash flow projection: The next thing is the cash flow projection. Cash flow is critical for business sustainability. Illustrate how cash moves in and out of your business, highlighting periods of potential cash shortages and surpluses. This helps in planning for working capital needs and managing liquidity. Below is an example that you can use:

3. Balance Sheet Projection

Provide a snapshot of your business’s financial position, including assets, liabilities, and equity. This showcases the overall health and stability of your business.

4. Break Even Analysis

Determine the point at which your business becomes profitable. A breakeven analysis helps you understand how much revenue you need to cover all costs. Below is an example of a business plan for an existing auto repair shop. You can see to understand better.

Risk Assessment and Contingency Planning

No business journey is without its obstacles. Recognizing potential risks and challenges upfront and having a plan to address them is crucial. 

This chapter focuses on identifying risks, evaluating their potential impact, and outlining strategies to mitigate their effects.

First thing is to identify the risk. You can see the picture below to identify risks. 

After identifying risks, you need to come with risk mitigation strategies such as: 

Preventive Measures: Outline steps you’ll take to prevent risks from occurring. 

Mitigation Plans: Describe your plans to minimize the impact if a risk does materialize. 

Crafting a business plan is a labor of love. It’s more than a document; it’s your business’s roadmap to success. Each chapter contributes to the bigger picture, forming a comprehensive strategy that aligns your ambitions with actionable steps. Now that you have this guide, take the first step towards creating a winning business plan that paves the way for your entrepreneurial journey.

You can also take your auto repair business to the next level with a good auto repair management software. Moreover , torque 360 offers all-round automotive management software as well. It includes many features such as scheduling, invoicing , estimating , digital vehicle inspection , repair order management , technician portal , POS integration , and marketing solutions. 

About the Author: Torque360

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Auto Repair Business Plan Template

Written by Dave Lavinsky

Auto Repair Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their auto repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an auto repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Auto Repair Business Plan?

A business plan provides a snapshot of your auto repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Auto Repair Business

If you’re looking to start an auto repair business, or grow your existing auto repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your auto repair business in order to improve your chances of success. Your auto repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Auto Repair Businesses

With regards to funding, the main sources of funding for an auto repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an auto repair business.

Finish Your Business Plan Today!

If you want to start an auto repair business or expand your current one, you need a business plan. Below are links to each section of your auto repair business plan template:

Executive Summary

Your executive summary provides an introduction to your mechanic shop business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair business you are operating and the status. For example, are you a startup, do you have an auto repair business that you would like to grow, or are you operating a chain of auto repair businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the auto repair industry. Discuss the type of auto repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of auto repair business you are operating.

For example, you might operate one of the following types of auto repair businesses:

• Auto Service Shop : this type of auto repair business focuses on routine servicing of cars and trucks, such as oil changes and tire rotation.
• Transmission Repair Shop: this type of business focuses on maintenancing, diagnosing and repairing transmissions in all types of cars.
• Body Repair Shop: this type of repair shop focuses on repairing damage to the body of a vehicle, primarily cosmetic damage due to collision.

In addition to explaining the type of auto repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the auto repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the auto repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your automotive business plan:

• How big is the auto repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your auto repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mechanic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: car owners, truck owners, luxury vehicle owners, classic vehicle owners, and businesses that own vehicles such as car rentals, car dealers, delivery businesses, and repairmen.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of auto repair business you operate. Clearly, luxury vehicle owners would respond to different marketing promotions than truck owners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most auto repair businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other auto repair businesses.

Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes auto parts stores (for DIY repair). You need to mention such competition as well.

With regards to direct competition, you want to describe the other auto repair businesses with which you compete. Most likely, your direct competitors will be auto repairs located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of vehicles do they maintenance and repair, or what types of maintenance and repairs do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better maintenance and repair services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car service business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of auto repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to auto repair, will you provide car rental services, repair financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your auto repair company. Document your location and mention how the location will impact your success. For example, is your auto repair business located in a busy retail district, industrial area, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your auto repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your auto repair business, including speaking with vehicle owners in person or on the phone, maintenancing and repairing vehicles.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 50th car, or when you hope to reach $X in revenue. It could also be when you expect to expand your auto repair business to a new city.  

Management Team

To demonstrate your auto repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing auto repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing auto repair shops or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many cars will you repair per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your auto repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an auto repair business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your shop location lease or descriptions of repairs you are working on.   Summary Putting together a business plan for your auto repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the auto repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful auto repair business.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you. Other Helpful Business Plan Articles & Templates

The 7-Step Business Plan to Grow Your Auto Repair Shop

Free profit and valuation ebook.

Discover and implement essential shop management strategies for building a profitable, high-valuation business.

• By Kyle Zhao
• | February 23, 2022
• | Business Advice , Tips

Does your auto repair shop’s growth rely merely on hope, or do you strategize how to drive your business forward?

Try our Free Business Valuation Calculator

While many auto repair shops and most businesses operate on hope—whether it’s hoping new target customers and repeat customers show up to spend a lot of money—it’s not an effective plan, says Al Wheeler, Chief Executive Officer of ShopPros , a management and training company that offers a complete business system for independent auto repair shops.

Wheeler, who has 35 years of experience in the automotive industry, understands the challenges that every auto repair shop owner faces. In a recent webinar , Wheeler shared why shops should consider creating a detailed financial plan for growing and sustaining their auto repair business.

“As business owners, we typically spend the majority of our time working in the business and not on the business,” Wheeler says. “I think it’s especially prevalent in our industry because you’re wearing so many hats throughout the day, and our days seem to be consumed by firefighting much of the time. As a result, the business trends really tend to drive us, rather than us driving business.”

The sample auto repair shop business plan discussed in this article outlines a strategy for:

• Discovering the potential in your auto repair shop
• Analyzing the current status of your auto repair shop
• Setting repair shop goals
• Training and planning
• Implementing change
• Monitoring and measuring

Why do you need a business plan for your auto repair shop?

Think of a business plan as a GPS for your auto repair shop. Not only will a business model provide details and direct you from point A to point B, but it also optimizes your route and helps you avoid potential pitfalls along the way.

According to research by Entrepreneurial Dynamics , using business plans helps you become:

• Twice as likely to obtain a bank loan
• Twice as likely to create investment value 
• 49% more likely to grow

While goal setting remains an important aspect of this equation, it’s not the same as business plans, which analyze current performance and define specific actions to reach purposeful results. “Keep in mind that setting goals, while important in business, does not constitute a business plan,” Wheeler says.

“Business planning really lays the foundation for continuous improvement,” Wheeler says. “I like to call it a success cycle for your business. What fundamental steps do you need to take to create an environment of continuous improvement within the business?”

Creating a cycle of success is essential for your auto repair shop, and where a clearly defined business plan will play a big role.

• The success cycle starts with a practical understanding of current performance against your desired or optimized outcome. Complete this analysis in thoughtful detail.
• The planning process then kicks in, helping you define specific actions to take advantage of outcomes. 
• As results of this success cycle start to roll in, employees across your auto repair shop will begin to believe more and more in the business’s potential. This positive energy keeps the success cycle in motion, resulting in even more growth.

“It’s about establishing (this) success cycle for your business. It builds on belief, establishes potential, and leverages the specific actions you choose to deliver those purposeful results,” Wheeler says.

Can your shop survive without a plan?

According to the U.S. Bureau of Labor Statistics (BLS) , approximately 20% of new businesses fail during the first two years of starting operations, 45% during the first five years, and 65% during the first ten years. Only 25% of businesses make it to 15 years or more. Why’s that?

From this industry overview, it’s clear a major reason for failure is their lack of a business plan.  This is where an auto repair business plan will help. With the right high-level overview and strategy, determination of how much funding you need, and enough flexibility, your auto repair shop will have a better chance of success. The future becomes much clearer once a business plan is in place to get the ball rolling.

Creating an auto repair business plan

Now that you know why this type of plan is important, it’s time to put pen to paper. Here are some pointers to help your auto repair shop get started:

Step 1: Discover potential at your auto shop

To discover your auto repair shop’s potential, it’s key to establish a ceiling and baseline so you can measure performance.

In the industry, an auto repair shop’s primary revenue producer is billed hours. It’s critical to determine your production capacity because that helps determine the ceiling of your financial plan, Wheeler says. Production hours will drive business potential in terms of revenue and gross projected profit, which ultimately your employees generate. Incorporate this business idea into your auto repair shop’s own business plan and create a more efficient system to generate money.

One of the common elements includes examining relevant benchmarks of other shops of a similar type and size, and their quality work performance.

Step 2: Analyze your auto shop’s current status

Determining the current status of your auto repair shop helps you understand how your shop compares to its potential. This includes analyzing store averages in daily, weekly, and monthly production, revenue, and gross projected profit.

Not only do you want to scrutinize business performance, but also individual performance. This executive summary includes auto mechanics’ average production, service advisor average gross profit, and service advisor billable hours and revenue. Keep these factors in mind when forming the business plan for your auto repair shop.

“This is a good way to effectively establish the baseline in which we’re going to judge performance improvement in those key areas and within our key employees,” Wheeler says.

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Step 3: set goals for your auto shop team.

Team involvement remains necessary to achieve individual and store-level goals. “This is where it’s critical to have team involvement and remember the SMART acronym—specific, measurable, achievable, relevant, and timestamp goals,” Wheeler says.

To remain on track with your automotive repair shop business plan, set specific monthly, weekly, and daily goals, both at individual and store levels. It’s important to involve your team in establishing these repair services goals and possess effective ways to measure them.

Step 4: Train and plan for auto shop growth

Training and business planning become critical components of facilitating change. Investing in your team as part of your own plan not only shows you care but allows them to grow in knowledge and skill.

Planning becomes part of the long-term business strategy. While many shops set business plans and goals around needing more car repair services completed, which drives sales, shops should first build the underlying fundamentals for a great customer experience

“We don’t need more cars for the sake of cars,” Wheeler says. “We need more cars to develop long-term loyal customers, and if we don’t have a conversion strategy for those guests, more cars are not going to sustain our growth.”

Step 5: Implement change to grow your auto repair business

A business plan won’t become effective unless it’s put into practice. To do this, good communication and accountability remain key.

“I’ve seen companies develop these great missions and vision statements, only for them to become artwork on the wall,” Wheeler says. “They really don’t have any substance behind them, and they aren’t lived out each day.”

Step 6: Monitor and measure your auto shop’s performance

To measure success, your auto repair shop needs to set relative benchmarks so they can obtain broader insights into the business and performance. This information will help you determine next steps on how to attract customers and generate new business. An excellent way to do this within your automotive repair shop business plan is by investing in automotive repair business software, such as AutoLeap .

While it’s important to monitor and measure repair services goals in your new plan, it’s also important to communicate with your team in daily or weekly meetings.

“What we’re doing in this business plan is essentially establishing the playbook in which you’re going to operate your auto repair business,” Wheeler says. “It’s going to drive the customer engagement system within your shop, so your business plan really should strive to eliminate randomness in your auto repair business. Nothing should happen by accident, everything should be intentional around achieving your objectives.”

Step 7: Adapting to the changing auto repair industry

Your auto repair shop must keep up with the changing dynamics of the automotive repair industry, technology, and customers’ behavior. Within the plan you put together, your auto repair shop  must prepare for the electrification of vehicles and equip itself to deal with the latest technology, such as Advanced Driver Assistance Systems (ADAS) . How will your business plan account for these emerging vehicle technologies and the potential customers they draw?

“I understand changing an operating system is painful, but in many cases, it’s going to be necessary,” Wheeler says.

An auto repair shop should consider:

• What could you be doing based on your existing staffing by location?
• A performance dashboard that can provide relevant data at a glance.
• A plan built and owned by the business with discrete actions.
• Standards/goals set for every tech and advisor to measure performance and reward/recognize high achievers.
• Benchmarking against every competing auto repair shop gives you insight into your relative performance and identifies areas to improve.
• Effective technology and systems that ensure great customer experiences.

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Your auto repair shop business plan, much like other goals, is only effective and only as good as it’s acted upon, Wheeler points out.

“It’s kind of like Newton’s first law that we all learned in school—objects in motion will remain in motion until acted upon by an external force,” Wheeler says. “In other words, your business will continue on the path that it’s on unless you engage the energy necessary to change that trajectory…If you think you can do better, then I think one of the energy components that you can use, or should consider, is a comprehensive business plan.”

Now that you’ve learned the steps to prepare an auto repair shop business plan and explored several benefits, it’s time to execute on this clear vision and  grow your business .

Customers with older vehicles are more likely to need auto repair services. Why is this? For one, older vehicles tend to break down more. Warning signs like check engine lights will appear more frequently, requiring a visit to your shop.

To write a business plan for your auto shop, you will need to: 

• Analyze your shop’s current status 
• Set SMART goals for your shop team
• Include plans for training and growth 
• Prioritize communication and accountability  
• Establish and measure performance benchmarks
• Account for evolving industry trends

Auto repair shops’ profitability depends on many factors. But the revenue potential is significant. Nearly one third of surveyed shops in AutoLeap’s 2022 State of the Auto Repair Industry Report generated $1 million or more in 2021 revenue. 

Successful promotion helps maintenance shops earn new business. Targeted email marketing and aggressive word-of-mouth outreach are two widely used strategies. Referral programs, organic SEO and active social media presences also help attract new customers. 

You can promote your car repair business by: 

• Launching social media accounts and posting regularly 
• Targeting local search terms with paid marketing 
• Sending creative promotional emails to your target customers
• Creating a referral program
• Building up your organic keyword rankings

Auto Repair Shop Management 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.

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Here is a free business plan sample for an auto repair shop.

Have you been toying with the idea of opening your own auto repair shop but feel overwhelmed about where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for the auto repair industry.

As any seasoned entrepreneur will tell you, a robust business plan is crucial to navigating the road to success. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to steer your business to profitability.

To shift your planning into high gear without any detours, you can utilize our auto repair shop business plan template. Our specialists are also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your auto repair shop?

A good business plan for an auto repair shop must reflect the unique aspects of the automotive service industry.

To start, it's crucial to provide a comprehensive overview of the auto repair market. This includes up-to-date statistics and identifying emerging trends within the industry, similar to what we've incorporated in our auto repair shop business plan template .

Then, you need to articulate your business concept effectively. This encompasses your vision, pinpointing your target market (such as local residents, fleet services, or corporate clients), and the distinct positioning of your auto repair shop (specializing in certain types of vehicles, offering quick services, eco-friendly practices, etc.).

The market analysis section is vital. It requires a thorough understanding of local competitors, automotive industry trends, and customer needs and preferences.

For an auto repair shop, particular emphasis should be placed on the services you plan to provide. Detail your service offerings - general maintenance, specialized repairs, diagnostics, tire services - and explain how they cater to the demands and expectations of your target customers.

The operational plan is equally important. It should outline the location of your shop, the layout of the service bays, equipment and tool investments, supplier relationships for parts, and the repair process.

In the auto repair business, it is critical to highlight the expertise of your technicians, the quality of parts used, and adherence to safety and environmental regulations.

Then, delve into your marketing and sales strategy. How will you draw in and keep customers coming back? Consider advertising tactics, customer loyalty programs, and value-added services (like courtesy cars or shuttle services).

Utilizing digital strategies, such as a professional website or an active social media presence, is also vital in the modern marketplace.

The financial plan is another fundamental component. This includes the initial investment, revenue projections, ongoing expenses, and the point at which the business will start to turn a profit.

In an auto repair shop, understanding the profit margins for various services is essential, so meticulous planning and a firm grasp of your financials are necessary. For assistance, you can refer to our financial forecast for an auto repair shop .

Compared to other business plans, an auto repair shop's plan must pay special attention to factors such as inventory management for parts, certifications and training for technicians, and the potential for insurance partnerships or contracts.

A well-crafted business plan will not only help the owner to define their strategies and vision but also to attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of the day-to-day operations of an auto repair shop.

By presenting a thorough and substantiated plan, you showcase your dedication and preparedness for the success of your venture.

To achieve these goals while saving time, you can simply fill out our auto repair shop business plan template .

A free example of business plan for an auto repair shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an auto repair shop .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The auto repair industry is a vital component of the global economy with significant growth potential.

Recent estimates value the global automotive repair and maintenance services market at over 700 billion dollars, with expectations for continued growth driven by the increasing number of vehicles on the road and the aging vehicle fleet.

In the United States alone, there are over 230,000 auto repair shops, generating a combined annual revenue of approximately 115 billion dollars. This underscores the critical role auto repair shops play in the American economy and in the daily lives of vehicle owners.

The auto repair industry is witnessing several key trends that are shaping its future.

There is a growing emphasis on technology, with shops incorporating advanced diagnostic tools and software to efficiently service modern vehicles. This includes the use of telematics to predict maintenance issues before they occur.

Electric and hybrid vehicles are becoming more prevalent, leading to a demand for specialized repair services for these types of vehicles.

Environmental concerns are also influencing the industry, with a push towards more sustainable practices, such as recycling parts and fluids, and using eco-friendly products.

Convenience services, such as mobile repair units and online appointment scheduling, are becoming more popular, reflecting customers' desires for more accessible and time-saving options.

Lastly, transparency in service, pricing, and customer communication is increasingly important to consumers, who want to ensure they are getting fair and honest service.

Success Factors

Several factors contribute to the success of an auto repair shop.

Quality of service is paramount. Shops that offer reliable, efficient, and high-quality repairs are more likely to build a loyal customer base.

Expertise in a wide range of services, including the latest automotive technologies, can set a shop apart in a competitive market.

Location is also critical, as a conveniently located shop can attract more customers and provide easier access for vehicle drop-off and pick-up.

Exceptional customer service is essential for creating a positive experience and encouraging repeat business.

Finally, effective cost management, the ability to adapt to industry changes, and a commitment to sustainability are important for the long-term success of an auto repair shop.

The Project

Project presentation.

Our auto repair shop project is designed to cater to the increasing number of vehicle owners who require reliable, high-quality maintenance and repair services. Situated in an area with high vehicle traffic or near automotive hubs, this shop will offer a comprehensive range of services, from routine maintenance and oil changes to complex engine repairs and diagnostics, all performed by certified mechanics using state-of-the-art equipment.

The focus will be on providing exceptional service, transparent pricing, and quick turnaround times to ensure customer satisfaction and vehicle safety.

This auto repair shop aims to become a trusted destination for vehicle owners, thereby enhancing the reliability and longevity of their vehicles.

Value Proposition

The value proposition of our auto repair shop project is based on delivering trustworthy and expert automotive repair and maintenance services that vehicle owners can depend on.

Our commitment to quality workmanship, fair pricing, and efficient service offers a superior automotive care experience, while contributing to the safety and performance of our customers' vehicles.

We are dedicated to fostering a transparent and customer-focused environment where vehicle owners can receive honest advice and top-notch service, and aim to educate our customers about the importance of regular vehicle maintenance.

Our auto repair shop aspires to become a cornerstone of the community, providing a reliable alternative to dealership services and enhancing the overall vehicle ownership experience for our customers.

Project Owner

The project owner is an automotive enthusiast with a comprehensive understanding of the automotive repair industry.

With a background in mechanical engineering and years of experience in auto repair management, he is determined to establish an auto repair shop that stands out for its dedication to excellence, customer service, and technical expertise.

With a vision of integrity and customer education, he is committed to offering high-quality automotive services that contribute to the safety and satisfaction of the local community.

His commitment to superior service and his passion for automobiles make him the driving force behind this project, aiming to enhance the vehicle maintenance experience for all customers.

The Market Study

Market segments.

The market segments for this auto repair shop are divided into several categories.

First, there are individual car owners who require regular maintenance and repair services to keep their vehicles in optimal condition.

Next, there are car enthusiasts and hobbyists who seek specialized modification and customization services for their vehicles.

The market also includes corporate clients with fleet vehicles that need consistent maintenance and repair to ensure business operations run smoothly.

Finally, insurance companies can be a key segment by partnering with the repair shop to handle claims for vehicle repairs after accidents or damages.

SWOT Analysis

A SWOT analysis of this auto repair shop project reveals several aspects.

Strengths include a team of certified and experienced mechanics, a strong reputation for quality service, and a strategic location accessible to a large customer base.

Weaknesses could include the initial costs of setting up a fully equipped shop and the challenge of building a customer base in a competitive market.

Opportunities lie in the increasing number of vehicles on the road, the potential for partnerships with local businesses, and the ability to specialize in certain types of repairs or services.

Finally, threats could include the rapid advancement of automotive technology requiring continuous training and investment in new equipment, and the potential for economic downturns affecting consumer spending on non-essential services.

Competitor Analysis

Competitor analysis in the auto repair industry reveals a mix of competition.

Among direct competitors are other local auto repair shops, franchise operations, and dealerships with service departments.

These players compete on factors such as price, service speed, customer service, and expertise in specific types of repairs.

Potential competitive advantages include a strong focus on customer satisfaction, the ability to provide a wide range of services, and the establishment of a loyal customer base through trust and transparency.

A thorough understanding of competitors' strengths and weaknesses is essential for developing effective differentiation and customer retention strategies.

Competitive Advantages

Our commitment to providing high-quality and reliable auto repair services is at the heart of our success.

We offer a comprehensive range of services, from routine maintenance to complex repairs, all performed by our team of skilled and certified mechanics.

Furthermore, our focus on customer education helps clients understand the importance of vehicle maintenance, thus fostering long-term relationships.

We take pride in our honesty and integrity, providing upfront pricing and clear communication about the services needed, which reassures our customers and builds trust in our brand.

You can also read our articles about: - how to open an auto repair shop: a complete guide - the customer segments of an auto repair shop - the competition study for an auto repair shop

The Strategy

Development plan.

Our three-year development plan for the auto repair shop is designed to establish us as a leader in vehicle maintenance and repair services.

In the first year, we will concentrate on building a strong local reputation for reliability and expert service. We will invest in state-of-the-art diagnostic equipment and ensure our technicians are highly trained.

The second year will focus on expanding our services to include specialized repairs and performance upgrades, as well as establishing fleet maintenance contracts with local businesses.

In the third year, we plan to explore the possibility of opening additional locations and offering mobile repair services to increase convenience for our customers.

Throughout this period, we will commit to exceptional customer service, continuous improvement, and staying abreast of the latest automotive technology trends.

Business Model Canvas

The Business Model Canvas for our auto repair shop targets vehicle owners in need of maintenance, repair services, and performance enhancements.

Our value proposition is centered on providing reliable, high-quality, and timely automotive services with a focus on customer education and transparency.

We offer our services through our physical shop location and potential mobile repair units, utilizing key resources such as our certified mechanics and advanced diagnostic tools.

Key activities include vehicle diagnostics, repairs, maintenance services, and customer service excellence.

Our revenue streams are generated from the various automotive services we provide, while our costs are mainly associated with labor, parts inventory, and operational expenses.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on building trust and demonstrating expertise in the automotive repair industry.

We aim to educate our customers on the importance of regular vehicle maintenance and the value of quality repairs. Our approach includes local advertising, community engagement events, and informative content on vehicle care.

We will also develop partnerships with local businesses and car dealerships to expand our customer base.

Additionally, we will leverage social media and online reviews to showcase our work and customer satisfaction, while offering promotions and loyalty programs to retain and attract new clients.

Risk Policy

The risk policy for our auto repair shop is designed to minimize operational and financial risks.

We will adhere to industry standards and regulations, ensuring all repairs meet or exceed safety requirements. Our technicians will undergo continuous training to stay current with automotive advancements.

We will implement rigorous inventory management and cost control measures to maintain profitability.

Furthermore, we will secure comprehensive insurance coverage to protect against potential liabilities associated with vehicle repairs. Our priority is to deliver safe and dependable services while safeguarding our business and customers.

Why Our Project is Viable

We are committed to establishing an auto repair shop that meets the growing demand for professional and trustworthy vehicle maintenance services.

With our dedication to quality, customer education, and staying ahead of automotive trends, we are confident in our ability to thrive in this competitive market.

We are enthusiastic about enhancing the driving experience of our customers and building a robust business.

We remain adaptable to industry changes to ensure our goals are met, and we look forward to a successful future in the auto repair industry.

You can also read our articles about: - the Business Model Canvas of an auto repair shop - the marketing strategy for an auto repair shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an auto repair shop and our financial plan for an auto repair shop .

Initial expenses for our auto repair shop include acquiring a suitable location, purchasing state-of-the-art automotive repair equipment, obtaining necessary permits and licenses, investing in high-quality tools and diagnostic software, and costs related to branding and launching targeted marketing campaigns to attract vehicle owners in the area.

Our revenue assumptions are based on a thorough analysis of local demand for auto repair services, taking into account the number of vehicles in the area, the average age of these vehicles, and the propensity of owners to invest in vehicle maintenance and repair.

We anticipate a steady increase in customer patronage, starting with a conservative estimate and expanding as our reputation for reliable and efficient service grows.

The projected income statement outlines expected revenues from our auto repair services, including labor, parts markup, and other services, as well as operating expenses (rent, marketing, salaries, utilities, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our auto repair shop.

The projected balance sheet reflects assets specific to our business, such as automotive repair equipment, parts inventory, and receivables, along with liabilities including loans and accounts payable.

It provides a snapshot of the financial standing of our auto repair shop at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to plan for cash requirements throughout the year. This is crucial for maintaining a healthy cash balance to support day-to-day operations.

The projected financing plan identifies the sources of funding we intend to use to cover our initial setup costs and any additional equipment purchases.

The working capital requirement for our auto repair shop will be carefully managed to ensure we have sufficient funds to cover routine expenses such as parts procurement, inventory management, and payroll.

The break-even analysis for our auto repair shop will calculate the volume of services we need to provide to cover all our costs, including the initial investment, and begin generating a profit.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the gross profit margin on services provided, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to determine the profitability of the capital invested in our auto repair shop.

These metrics will assist us in gauging the financial health and success of our business venture.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an auto repair shop .

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Auto Repair Shop Business Plan (9 Step Guide)

Craft your auto repair shop business plan to achieve your objectives. select a shop management system that can help you bring your vision to life..

Starting a business can be a big risk. But if you map out a plan and execute it right, the outcome is well worth it. Having a solid automotive repair workshop business plan in place is especially important if you ever plan on owning multiple shops. 

When you realized that you wanted to be a shop owner, it’s likely you considered the good you can do for both yourself and other people. Helping customers get their vehicles back on the road, and helping service advisors and mechanics grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop. 

Find the right tools

In order to make the ride to becoming a successful shop owner a smooth one, your present self will need to have your future self’s back. You’ll need to ensure all of your ducks are in a row. And by ducks, we mean your people, processes, and systems. And most importantly, you’ll need to make sure that you are ready to take on this venture. 

You may even get excited thinking about the far future of your business—when it’s feasible to expand your business to include multiple shops. It’s good to dream big, and especially in auto repair, more shops means that you can help more people. But it’s important to understand how you’re going to get there, and what pitfalls to avoid. 

Before we jump into how your business can expand, let’s take a look at some of the reasons why new business ventures don’t make it . Don’t let this waiver your goals as a shop owner though. In fact, we’re writing these out so you can beat the odds.

6 Common Reasons Why New Businesses Fail 

Each business, and each story, is different. But there are a few common themes that usually lead to new businesses failing.

1. Not investigating the market 

When you’re opening up a new business, it’s crucial to consider the demand for auto repair and the unmet auto repair needs within the area you plan on opening shop. It’s easier to satisfy a known need rather than creating a need and having to convince your customers. 

2. Business plan issues

Your business plan is like your company’s Bible. You’ll spend months, or even years, making sure it is the perfect guidebook for your shop. Once your business plan is created, it’s important to follow it.

Taking chances that aren’t outlined in your plan could lead to further setbacks. Although setbacks are less common if you’ve carefully and diligently mapped out your plan, there’s always the possibility that your plan isn’t 100% sound. If that’s the case, determine the issue, find a solution, and adjust your plan accordingly. 

3. Not enough financing

Financial planning is crucial for any new business venture. If you don’t start off with enough money and end up having to stretch the financial line too thin, it’s possible your business may never get off the ground. 

4. Bad location, absent online presence, and other marketing issues

The location of your business, the online presence of your business, and the marketing efforts conducted throughout your business’ lifecycle are pivotal to your shop’s success. If you start an auto mechanic shop that focuses on truck repairs in the middle of a city where there aren’t a lot of truck drivers, it’s likely your shop won’t succeed. The same goes for online presence and marketing efforts.

You need to reach the people who may not regularly drive by your shop by considering where they spend their time online. What social media channels are they on? How do they use search engines to find local businesses? Tailored advertising efforts and five-star raving reviews will help bring more business to your shop. Without the best location, an established online presence, and the right marketing strategies , your business has less potential to last. 

5. Becoming complacent 

Just because you’ve finished up your business plan and started your business doesn’t mean the research should stop there. It’s always important to remain in-the-know on key market trends. By keeping an eye on the auto repair market, you’ll know exactly when and how you need to make adjustments to your business in order to keep growing. 

6. Expanding too fast 

Sometimes a business owner that is experiencing newfound success may keep reaching and reaching, and reaching, until their finances are drained. While it’s important to have an entrepreneurial spirit, it’s just as important to make smart investments.

If you want to open up more shops in the future, it’s important to give your new shop just as much tender love and care as you gave your first location.

Make sure you have a solid understanding of where you want your next location to be, who your intended customers are, whether you want to try selling new products or services, and how exactly you plan on testing the success of any new ideas.

According to Investopedia.org , the bottom line is this: “Though the rate of business failure in the first two years is around 20%, it doesn't mean that you have to fail. Through research, planning, and flexibility, you can avoid many of the pitfalls of a new business and be a part of the 25% that make it to 15 years and beyond.”

What Is An Auto Repair Shop Business Plan? 

The best way to execute your business is with a plan. An automotive repair shop business plan will outline your auto repair shop business so that you can present it to investors or any other stakeholders that you want to bring along on your business venture.

A business plan is the overall vision of your business, the goals you want to achieve, and the roadmap that will keep your company afloat. 

Your Auto Repair Shop Business Plan Serves as a Roadmap

A clear auto repair workshop business plan will provide you with:

• Clarity on what needs to be done 
• The ability to spot issues as early as possible while making good investments 
• A sustainable and viable business model  

Clarity On What Needs To Be Done

An auto repair shop business plan will make it easy for you to explain your business model and where your shop is headed. You’re going to encounter obstacles, and in order to tackle them head on, you need to stick to your strategic plan and adjust accordingly. 

Your automotive repair shop business plan will provide you with clarity on: 

To Spot Issues Early While Making Good Investments

To prevent setbacks, you need to invest in the right things. The way you invest prior to opening up your shop, during your business’ lifecycle, and once expansion is on the horizon, will make or break your business.

Your car repair shop business plan will help you determine the right routes to take when it comes to investing in: 

A Sustainable and Viable Business Model

By carefully mapping out your business’ roadmap, you’ll have the ability to achieve a sustainable and viable business model. 

Your auto repair shop business plan will help you: 

• Secure funding 
• Know when and how to expand
• Stick to growth goals and milestones

Each three of these categories can be more attainable with a clear mind. According to Walter Isaacson’s The Book of Jobs , Steve Jobs would often stress that the driving factor behind his creative inspiration was a clear mind through meditation.

So, before you get started crafting your quintessential mechanic shop business plan, try to gift yourself the ability to tune out the noise during important decision-making matters. Here are three ways you can go into your business ownership journey with a clear state of mind: 

• Set aside time to commit to a muscle memory activity. A muscle memory activity could be going on a walk every morning with your dogs, heading to the driving range to hit a few golf balls in the evenings, playing an instrument, or picking up a good book. 
• Choose an activity that you genuinely enjoy doing and make it a habit. If meditating isn’t for you, you won’t be able to let go of the daily noise and distractions, and in turn you won’t be able to gain clarity of mind. Whatever you choose should be something you look forward to doing so that you can place all of your focus on that activity. Being able to focus is incredibly important for business owners because there are so many things that can occupy your mind in a given moment. Find an activity that helps you organize and become more aware of your thought process. 
• Reduce the noise around you by finding an activity that you can do by yourself. Finding an activity that helps you clear your mind and step away from others’ input will help you get back in tune with where you really want your business to go. 

These are just three tips. What works for one person may not work for you. Our primary recommendation for new business owners is to commit to not only working on your auto repair shop business plan but also commit to working on yourself so that when you hit the road, you’re able to face any and all obstacles with a clear, open mind. 

So, What’s Included in an Auto Repair Shop Business Plan? 

There are nine steps to crafting the quintessential automotive repair shop business plan that will help you achieve your business goals—from owning one auto repair shop to becoming a multi-shop owner.   

• Write an executive summary
• Describe your shop
• State your business goals
• Describe your products and services
• Do your market research
• Outline your marketing and sales plan
• Perform a business financial analysis
• Make financial projections
• Create a plan for growth and expansion 

Sure, those nine steps may sound tedious, but it pays to plan.

According to entrepreneur masterminds Francis J. Greene and Christian Hopp , high-growth oriented entrepreneurs are 7% more likely to plan out their business.

Furthermore, entrepreneurs who write business plans are 16% more likely to achieve viability than entrepreneurs who don’t develop a plan.

What Do You Need to Create Your Auto Repair Shop Business Plan?

You can build a successful launching pad for your auto repair business by conducting market research, developing a marketing plan for your auto repair shop, and evaluating the operational costs and investments you will need to make. 

Conduct market research

Here are four steps you can follow to successfully conduct local market research: 

• Determine your shop’s market area 
• Create a profile of your shop’s ideal customers 
• Determine the size of your market (pro-tip: check out City-Data for a detailed, informative profile of your target market). 
• Find out how many competitors are in your target market area

Remember that drivers are typically willing to drive a few miles to get their vehicle serviced, but driving over 10 miles might not be realistic for someone if their vehicle has an issue. So you may want to start looking at the demographics within a 10 mile radius of your auto repair shop. 

When looking at your target area, you can ask the following questions to get a good sense of your business’ market: 

• Is there a desire for your products or services? 
• How many people would be interested in your offering? 
• What is the income range and employment rate of your customers? 
• How many similar options are already available to consumers in your area? 
• How much do potential customers pay for these alternatives? ‍

Even after you open shop, keep conducting market research. You want to be able to keep up with the latest auto repair industry trends so that your shop’s profits keep growing. Getting a feel for the type of customers your shop serves will set a strong foundation for your auto repair shop business plan. 

Develop a marketing plan for your auto repair shop

Once you know your audience, develop a marketing plan that aligns your vision with the people you plan on serving. Here’s an overview of marketing strategies you can use to attract customers to your new shop: 

• Get involved in your community
• Run special promotions for first-time customers
• Partner up with an adjacent local business like a body shop
• Advertise locally
• Run targeted social media ad campaigns
• Up your shop’s search engine optimization (SEO) game

‍ Evaluate operational costs and investments

When it comes to successfully launch i ng your business, you’ll need to weigh any potential costs and investments that you intend on making. Always leave a bit of wiggle room for unexpected expenses, like hiring one more person that you anticipated, or paying a little extra for a more reliable shop management system. Sometimes spending a little extra means getting a higher return on investment, making it well worth the cost. But you have to ensure that you have the wiggle room first. 

The investments you put into your shop at the beginning will play a huge role in determining how profitable your auto repair shop will be in the future . You’ll want to evaluate: 

• The location you will operate your shop from
• The equipment you will invest in 
• The shop management system that will support you from day one and beyond 

The right shop management system will give you and your team: 

• ‍ ‍ The ability to gain experience 
• ‍ A methodical system for analysis
• Digital tools and integrations
• Guardrails that prevent errors
• The ability to track declined jobs
• Better compliance standards
• A workflow to quickly build accurate estimates
• A direct tie to all shop systems
• The capacity to set and reach profit goals
• A clear framework for enhancing customer experience

9 Steps to Create a Business Plan for Your Auto Repair Shop

But before we get too excited about finding the right shop management system, here’s the moment you’ve been waiting for: the nine steps you can take to craft an automotive repair shop business plan that will help you reach new heights and open up more shops in the future.  

1. Write An Executive Summary

Your business plan’s executive summary is designed to capture any investors’ or stakeholders’ attention. It gives them an overview of your shop’s business opportunities and an overview of the rest of your auto repair shop business plan. 

In your executive summary, you will briefly explain the problem you are solving, your business ideas, the target audience, and any key financial information. Your business plan’s executive summary should capture each of the aforementioned topics in no more than two pages . 

‍ The problem statement: this introduces the reader to the gap and/or problem in the auto repair industry that your business aims to solve. 

‍ The business statement (aka your business model): this will show the reader exactly how you plan to tackle the problem—both how you plan to approach the problem and how you plan to solve it. During this section, you want to briefly explain how your auto repair business will help solve whatever problem you found in the market. 

‍ The target audience statement: during this section, you’ll map out any customer demographic details and how you plan on targeting these audiences. 

‍ The financial plan summary: any financial institution or investor you approach will want to know how you plan on spending their funds. During this section of the executive summary, you want to cover where you plan on allocating funds and any applicable financial projections. 

Find a Shop Management System That Will Make Tracking Your Shop’s Financial History a Breeze  

‍ For those of you who are current shop owners and want to craft a new automotive repair shop business plan, the financial plan in your executive summary will have to include a history of your shop’s past financial performance.  With Tekmetric, you can use accurate, real-time data to easily track how money flows through your shop. Tekmetric’s Real-Time Financial Reports include three reports that are particularly useful during this step of your auto repair shop business plan:  1. End of Day Report  ‍ The End of Day Report is an overview of how effectively your shop has been selling repair work during a given time range. You can select what time range you want to view a financial report for. The End of Day Report breaks down your shop’s overall shop metrics, including Total RO’s, Hours Presented, Hours Sold, Close Ratio, Effective Labor Rate, Average Repair Order (ARO) Sales, ARO Profit, ARO Profit Margin, Gross Sales, and Gross Profit.  2. Profit Details Report ‍ The Profit Details Report will show you the exact profit you’ve made across all of your shop’s ROs. A perk to the Profit Details Report is that you can also break it down even further to show the profit your shop has made within individual ROs.  3. Sales Details Report  ‍ The Sales Details Report will show you how much your shop has sold in parts and labor over a given time range, how much money has been collected from sublets, fees, and taxes, as well as the dollar amount of the discount your shop has provided to customers. 

2. Describe Your Shop

What makes your business stand out? What’s your company’s mission? What are the most important aspects of your business? These are the questions this section of your auto repair shop business plan will answer. 

When determining your shop’s mission statement, try to keep the following tips in mind: 

• Make it a long-term mission statement 
• Think big picture and high level  
• Keep it short and concise
• Use “Our” and “We” when writing your mission statement. For example, “We provide the highest quality repair services to the drivers of East Omaha, Nebraska”
• Work with your potential stakeholders and/or employees to come up with your mission statement
• Don’t be afraid to change it 

Let’s take a look at ten popular mission statements. If you can think of the company’s name, then their mission statement did its job. 

• “To bring inspiration and innovation to every athlete in the world.*
• If you have a body, you are an athlete.”
• “To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.”
• “To inspire humanity—both in the air and on the ground.” 
• “To accelerate the world's transition to sustainable energy.”
• “Spread ideas.” 
• “To give everyone the power to create and share ideas and information instantly, without barriers.”
• “To organize the world’s information and make it universally accessible and useful.”
• “We save people money so they can live better.”
• “To be a company that inspires and fulfills your curiosity.”
• “To build and deliver an integrated set of digital tools that complement one another and empower shop owners to grow a thriving automotive repair business.”

In order from top to bottom, the mission statements belong to Nike, Warby Parker, JetBlue, Tesla, TED, Twitter, Google, Walmart, Sony, and Tekmetric. 

What do each of the above mission statements have in common? They uncover the primary existence for each company, and they deliver their purpose and overall intention. 

As you’re developing your automotive repair shop business plan, think of ways your auto shop can stand out in your community. If you want a good example, check out our Shop Spotlight of Turbo Tim’s Anything Automotive . Turbo Tim’s shop owner Tim Suggs crafted his shop around a unique and relatable culture that gives back to the community. Their focus is on “average cars, average people.” 

‍ “Early on, it was apparent that if I put people first, the money would come. I focused on building an atmosphere that was both fun and professional for employees and customers alike. One of the most instrumental, yet unintentional, parts of our culture came from a cat I found at a machine shop. I’ve always been a cat person, and I asked the technicians there if that was their cat. They said it was a stray that they regularly fed. After checking that he wasn’t microchipped and didn’t belong to anyone, I brought him home with me.

‍ And that’s the origin story of Bobby, our original shop cat. We now have multiple cats who greet folks in our waiting room. Bobby also positively affected our marketing. Halfway through our growth, we began branding ourselves with a cat logo inspired by Bobby. Today, customers who put Bobby bumper stickers on their cars get 10% off for life. Less productive are our chickens, who ‘work’ in the chicken coop on our outdoor patio.”  ‍

When you describe your company in your auto repair workshop business plan, you want to unveil what you see your shop being. Yes, you’ll want to mention the mission, but you also want to capture your shop’s values and culture, and what sets your shop apart from the rest.  

Invest In a Shop Management System That Allows Room For Integrations 

‍ Tekmetric partners with other industry-leading solutions to let shop owners fine-tune the repair experience for their team and their customers.  ‍

• We partner with Mechanic Advisor to bring your customers’ real-time scheduling
• We partner with Shop Owner Coach to bring your shop personalized coaching and training
• We partner with Advance Auto Parts so that your team can easily find a good deal on a wide selection of parts
• We partner with BG Products, Inc. so that you easily provide high-quality maintenance to customers
• We partner with MyShopManager to ensure your shop’s marketing communication leads to higher customer engagement
• And that’s just five out of 30+ integration partners your shop can choose from. 

‍ See how the right mix of automotive computer programs fuels business innovation.  

3. State Your Business Goals

The next section of your auto mechanic business plan is where you should state your business goals. Here you’ll want to list out the short-term, medium-term, and long-term goals that you want to achieve with your business. 

• Short-term business goals: these business goals are to be accomplished in no more than one year. 
• Medium-term business goals: these business goals should be completed in more than one year, but less than five years. 
• Long-term business goals: these business goals are what you want to accomplish in five years and beyond. 

As you’re coming up with your shop’s goals, you need to make sure that they are realistic, attainable, and strategic. Ask yourself these six questions as you come up with your business goals: 

• Why is this goal important?
• Can we achieve this goal?
• What can impede or stop us from achieving this goal? 
• If we set this goal, what are the action steps? 
• If we meet this goal, how do we take it to the next level?
• If we don’t meet this goal, how do we rebound? 

Now that you have those six guiding questions, you can start to come up with your shop’s unique business goals. Ask yourself the following questions to help you come up with your company goals: 

• Why do we do what we do?
• Where do I see my business this year, next year, and five years from now?
• What are we selling beyond auto repair?
• How do we feel about the problems we solve?
• What values do we want to stand by no matter how big we grow? 
• What do our customers want?
• Which promises do we want to make? Which promises can we keep? (Only make promises that you know that you can keep) 
• What do we need to do today to make sure that we can keep doing the things we want to do tomorrow? 

Whether your goal is to have a 20% profit margin year one or open up a second location in the next five years, the business goals section in your automotive repair shop business plan will help you remember why you set that goal in the first place. 

Choose a Shop Management System That Makes it Easy to Reach Your Goals ‍

‍ If your goal is to increase your sales and ARO, then you’ll like Tekmetric’s Digital Vehicle Inspection (DVI) feature. Tekmetric’s DVIs are designed to inform and show your customers exactly what’s going on under the hood. And the better you can explain vehicle issues, the more likely your customers will be on board with getting the recommended repair work done.  Tekmetric’s DVIs include six core features that will benefit both your team and your customers:  ‍

• A searchable DVI history  
• The ability for technicians to attach photos and videos to inspections
• A color-coded system that indicates the severity of inspection findings
• A direct tie-in to parts and labor data when building estimates
• The ability to add canned jobs when building estimates
• Digital authorization for jobs
• A declined jobs report that automatically saves and tracks declined jobs

‍ See what else Tekmetric’s DVIs can do for your shop. 

4. Describe Your Products and Services

In the products and services section of your auto repair workshop business plan, it’s important to focus on your customers’ perspective and needs. The overall goal of the products and services section is to prove that your shop will fill a market need and remain viable. 

Here are some questions you’ll want to answer in this section:

‍ What kind of vehicles will your shop fix?

Do you want to run a general auto repair shop or a specialty auto repair shop? You can determine whether your shop will focus on exotic vehicle repairs, diesel engine repairs, fleet work, or stick with the standard independent garage clientele. 

‍ ‍What type of services will your shop provide?

Along with determining the kinds of vehicles you’ll service, you’ll also want to consider each service your shop will provide. Will your main focus be on oil changes, tune-ups, and regular maintenance? Will you want to sublet some of your repair work? It could be that you focus on standard repairs, but when a customer comes in with a specific job that you don’t want to turn down, you can have that repair work done through a subcontractor, but you’d have to establish that partnership . 

‍ How will your shop’s name and brand clarify your audience and services?

Your shop’s main focus may be something you’ve already thought of, but what about your shop’s name? It’s a good idea to choose a name that speaks to your shop’s target customers and the types of services you provide. For example, Bavarian Motor Repairs specializes in servicing BMWs, MINIs, and Rolls Royces. Or maybe you want your shop to cater to everything auto repair related like Turbo Tim’s Anything Automotive. 

‍ What types of products will your shop provide?

Knowing the types of vehicles and services your shop will provide to customers is great, but what about the types of products you plan to sell to your customers? Many shops choose to sell specific types of fluids that their customers can rely on. Similarly, shop owners may sell products and equipment that can make their customers’ vehicles last longer and perform better. You can also offer products that make for an easy upsell such as air fresheners, floor mats, or even merchandise with your shop’s logo on it.  

Find a Shop Management System That Expedites The Parts Purchasing Process  ‍

‍ Tekmetric’s Canned Jobs Board pulls from inventory to see what parts you already have on hand and what parts you need to purchase. You can also set a parts markup on inventory items that are added to canned jobs so that you can lock in your parts margin.

This addition to your parts management strategy will cut out all the guesswork and streamline jobs. Your team can save time sorting through parts and spend it actually repairing vehicles and providing excellent customer service.

In Tekmetric, you can view and sort canned jobs by:

• Job category

To make your parts purchasing experience even easier, Tekmetric has partnered with some of the most trusted parts vendors in the industry: 

• MyPlace4Parts
• OEC Repair Link

5. Do Your Market Research

You probably did some market research when you first began forming your business plan. But as you write this section, you’ll really want to sharpen your market research and organize your findings.

There are two main types of market research that you can do when planning your business. 

‍ Primary Market Research: any type of research that you collect yourself. Examples include surveys, interviews, and observations. 

Secondary Market Research: any type of research that involves compiling existing data. Examples include searching websites, going to libraries, looking at government statistics, or even using internal resources like your shop’s average revenue per sale, customer retention rates, and any other historical data you see fit (this is especially useful for current shop owners looking to expand). 

To successfully conduct market research, you should follow these fives steps: 

1. Determine the purpose of your market research

Before starting your market research, determine your goal for doing it in the first place (aside from creating the business plan, of course). Common reasons why business owners conduct market research include wanting to understand a new market or to gauge the success and strategies of competitors. 

2. Research the current state of the auto repair industry

Look at where the auto repair industry currently is and where it seems to be heading. The goal here is to determine any potential trends and projected growth that can give your business a competitive edge in the auto repair industry. Check out Ratchet+Wrench for the latest auto care insights.

3. Define your buyers’ personas, aka “marketing personas” 

Creating buyer personas will help you understand who your customers are. Your buyer personas should include age, gender, location, job titles, family sizes, incomes, needs, interests, etc. Keep in mind that as you build out your buyer personas, you don’t have to limit yourself to just one persona. There are many different types of drivers and people that need auto repair services. 

There are many useful tools you can use to develop your personas. Here is HubSpot’s free tool that might come in handy while you’re building your personas. 

4. Understand your competition  

To understand your competition, we recommend listing out each of your shop’s competitors. From there, determine what those shops do differently from what you plan to do. Consider their strengths and weaknesses, and any advantages they have in the auto repair market in your area. You can also do a SWOT analysis where you determine their strengths, weaknesses, opportunities, and threats. It’s also good to do a SWOT analysis of your own business, too. 

5. Gather, analyze, and summarize your findings  

Any information you find during your market research will be your friend. You can never have too much data—as long as it’s from a credible source. Here are some resources you can use for credible research: 

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• State and local commerce sites
• Your own SWOT analysis
• Market surveys or questionnaires

When it comes to analyzing your market data, it’s best to organize it all into sections that make the most sense to you, your stakeholders, and your investors. The main topics you want to focus on are your shop’s purpose, the target market, and your competition. Examples of elements within your market research analysis can include your customers’ buying trends, forecasted growth, how much customers are willing to pay for your services, and an industry overlook, including the industry’s size and growth rate. 

Invest in a Shop Management System That Tracks Your Customers’ Historical Data 

‍ Tekmetric’s customer reports help keep your market research fresh. You can see which service you sell is the most popular and who your most frequent customers are. You can also get more accurate data about different customers’ buying behavior when you start generating with Tekmetric’s customer reports. 

‍ Customer List Report: Tekmetric’s Customer List Report gives you an overview of each customer’s Lifetime Visits, Lifetime Spend, Lifetime Profit, Lifetime ARO, Lifetime Close Ratio and other key stats.

‍ Declined Jobs Report: With the Declined Jobs Report, service advisors can see all jobs that have been declined on past ROs so that they can get them back in the shop. Identify which jobs are declined most often so that you can create effective promotional campaigns that upsell, cross-sell and improve your Close Ratio.

6. Outline Your Marketing and Sales Plan

After conducting market research and deciding on the products and services your shop will provide, you can work on your marketing strategy. Your marketing strategy should specify how you plan on marketing different services and products to different demographics. 

For example, if you decide you want to focus on diagnostics for BMWs, then your marketing plan will show how you plan to target BMW owners for that particular service. Maybe you could go find BMW groups or figure out where BMW owners like to shop or frequent, and advertise there. 

A strong marketing and sales strategy will help your shop maximize and leverage profits. Marketing expenses are something you need to invest in, but you also need to ensure that you’re getting a strong return on your marketing investments. 

‍ Here are a few examples of impactful marketing strategies: 

• Website branding
• Local reviews
• Social media campaigns
• Email marketing
• Content marketing
• Referral program
• Reward program
• Pay-per-click ads
• Print and physical marketing

Whatever marketing efforts you choose to invest in, make sure you track the data so you know what works and what doesn’t. 

Choose a Shop Management System That Helps You Refine Your Marketing Strategies

‍ A shop management system like Tekmetric can show you whether or not your strategies are working. 

‍ Marketing Source Report: You can track the payoff that each marketing strategy brings your shop by using Tekmetric’s Marketing Source Report. With the RO Marketing Source Report, you can explore how much of your business comes from new sales or repeat sales, and identify which marketing sources are bringing in the most business.  

Integrations: Tekmetric integrates with several marketing solutions that will help your shop further grow its customer base. Our marketing integrations include Mechanic Advisor, KUKUI, MyShopManager, MechanicNet, RepairPal, and more.

7. Perform a Business Financial Analysis

In the financial analysis portion of your auto repair shop business plan, you want to unpack how much money your shop will need to get off the ground and exactly how you plan on spending it. 

Some common capital and startup expenses include: 

• Rent or lease payments
• Utilities costs such as telephone and internet, electricity, heating, etc.
• Maintenance costs such as mending leaks, maintaining equipment, snow plowing, landscaping services, etc.
• Taxes, including state income tax, property tax, payroll tax, sales tax, fuel tax, etc.
• Office equipment such as computers, printers, tablets, desks, chairs, etc.
• Marketing expenses
• License renewals
• Lobby supplies such as water, coffee, snacks, etc.
• Employee appreciation such as gifts, holiday outings, meals, team bonding, etc.
• Ongoing training and education opportunities

Another key component to your financial analysis is your break-even analysis. A break-even analysis is when you factor in both your costs and your shop’s sales to determine the moment you will break even. 

So, what is a break-even point? A break-even point is when your business will begin making a revenue that should cover your total amount of overhead costs—both the fixed and variable costs accumulated over time. 

‍ Break-Even Point Formula: 

(Overhead Costs + Balance Sheet Payments) / Gross Margin = Break-Even Point

For example: ($30,000 + $10,000) / 95% = $42,105.26

In the example above, it concludes that you need to sell a total of $42,105 to make sure that you cover your overhead costs and balance sheet payments.

Choose a Shop Management System That Can Assist in Managing Your Shop’s Common Expenses   

‍ While Tekmetric can help you track the cost of goods through reports, your accounting tools such as QuickBooks, is where you’ll track a lot of your daily expenses. Tekmetric doesn’t include a built-in accounting system, but we do have an accounting link through one of our integration partners, The Back Office, which gives you the ability to manage your books, track income and expenses, and easily perform audits for all your accounting needs with just a few clicks.

Tek-Tip: improve your profits and fine-tune your shop’s goals with Tekmetric’s built-in Parts Matrix and Labor Matrix. Tekmetric makes it easy for shop owners and service advisors to include the right markups on each and every job.

8. Forecast future opportunities

According to Entrepreneur.com , here are some ways you can make financial forecasts more realistic: 

• Use at least two financial projection scenarios. One can be more optimistic and the other can be more cautious. It’s best to err on the side of caution while also making space for the optimistic predictive forecasts that new and aspiring business owners are prone to make. 
• Predict your expenses first, then your revenues. 
• Identify and include assumptions that are outside of your control, including how much you predict the market will grow, any possible changes in the competitors you’ve found, and any advancements in technology that could impact your business. 
• Assess, reassess, and reassess again. Forecasts shouldn’t be stagnant. The more up-to-date your forecasts are, the more prepared you will be to make informed strategic decisions.

Invest in a Shop Management System That Lets You Categorize Reports into Different Time Periods 

‍ Tekmetric’s real-time reports empower shop owners to forecast and strategize by choosing between annual and weekly forecasting. 

‍ Annual Forecasting: With annual forecasting, you can get a sense of where your shop is at and how the rest of the year is likely to play out. If you notice that business is slowing down month to month, it might be time to adjust your marketing strategies. Or maybe you notice that the year has been busier than usual, in which case you may want to consider bringing on more talent to help service your new influx of customers. 

‍ Weekly Forecasting: With weekly forecasting, you can combine sales in progress with closed sales data to get an idea of how much profit your shop is lined up to make by the end of the week.  ‍ Read more about how you can forecast with real-time reports .

9. Create a Plan for Growth and Expansion 

Although this section isn’t necessarily a part of a standard business plan, you’ll want to incorporate it into your automotive repair shop business plan if you eventually want to open additional repair shops. 

To prepare yourself for future growth, you’ll want to ensure that 1) the car repair shop business plan you’re creating now can be replicated if all goes according to plan and 2) the shop management system you select can grow with you. 

If you play your cards right—or in this case, you craft the optimal automotive repair shop business plan and invest in foundational tools—you’ll be well on your way to becoming a successful owner of multiple auto repair businesses. 

Tekmetric: Your Shop’s Go-To System For Present-Day Planning and Future Expansion 

Just as your automotive repair shop business plan will help you navigate any potential setbacks, the Tekmetric shop management system will help you hammer away as you grow your business.  

The right planning and shop management system will help you determine—in advance—things that can help you achieve your goals, as well as avoid things that can potentially prevent you from achieving those goals. 

Tekmetric will: 

• Make tracking your shops’ financial history a breeze
• Allow room for integrations 
• Make reaching goals easier
• Expedite the parts purchasing process
• Help you track your customers’ historical data
• Help you refine marketing strategies
• Assist in managing your shop’s common expenses   
• Empower you to make financial decisions for future growth
• Create a plan for growth and expansion

Not only will investing time into planning help your vision come to fruition, but it will also help you achieve the dream you stood by since day one: helping your customers get their vehicles back on the road safely. 

Mapping out an auto repair shop business plan and investing in a shop management system like Tekmetric will help you help more people in the long run. 

Auto Repair Shop Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Are you about starting an auto repair shop ? If YES, here is a complete sample auto repair shop business plan template & feasibility report you can use for FREE .

All over the globe, the auto repair business is such that is important. This is because of the need to have cars fixed.  Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the auto repair garage is one of them.

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All over the world, car repairs is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.

As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

People visit auto garages for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; auto repair garage will always translate to money for the owner of the repair garage.

A Sample Auto Repair Shop Business Plan Template

1. industry overview.

Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start.

The Auto Repair Shop industry provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair shop industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair

The Auto Repair Shop industry is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.

The Auto Repair Shop industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth. Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Statistics has it that the Auto Repair Shop industry in the united states of America, is worth $58bn, with an estimated growth rate of 1.4 percent. There are about 251,016 registered and licensed auto repair garages in the United States and they are responsible for employing about 530,978 people.

Over and above, the auto repair shop industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own auto repair business and of course make good money from the industry.

2. Executive Summary

Jack & James Auto Garage®, LLC is a U.S based and licensed auto repair garage. We have been able to secure a standard and well – positioned garage facility in a central and busy district in Fairhope – Alabama.

We are an auto repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Fairhope – Alabama, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Jack & James Auto Garage®, LLC will offers services such as mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading auto repair garages in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

Our workers are going to be selected from a pool of certified and highly experienced auto repair engineers and technicians in and around Fairhope – Alabama and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading auto repair garages and services centers in the United States and throughout the globe.

At Jack & James Auto Garage®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Jack & James Auto Garage®, LLC is founded by Engr. Jack Romney an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his twin brother and business partner for many years James Romney.

They have a combine experience that can help them build Jack & James Auto Garage®, LLC to favorably compete with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

3. Our Products and Services

Jack & James Auto Garage®, LLC was established with the aim of maximizing profits in the auto repair shop industry. We want to compete favorably with the leading auto garages in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Jack & James Auto Garage®, LLC is not just accepted in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages. Our products and services are listed below;

• Repairing and replacing automotive engines
• Performing general automotive repairs
• Power train repair services
• Brake repair services
• Scheduled and preventative repair and maintenance services
• Repairing trucks
• Repairing and replacing automotive exhaust systems
• Repairing and replacing mufflers
• Repairing automotive transmissions
• Repairing automotive brakes
• Performing automotive electric repairs
• Performing automotive wheel alignments
• Repairing automotive radiators
• Wheel alignment and repair services
• Other repair and maintenance services

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class auto repair garage whose services and brand will not only be accepted in Fairhope – Alabama but also in other cities in the United States of America.
• Our mission is to provide professional auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
• We want to build an auto repair garage that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

Our Business Structure

Jack & James Auto Garage®, LLC is an auto repair and maintenance garage that intend starting small in Fairhope – Alabama, but hope to grow big in order to compete favorably with leading automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Jack & James Auto Garage®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Auto Garage Supervisor

Human Resources and Admin Manager

• Sales and Marketing Executive
• Automobile Repair and Maintenance Engineers / Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Auto Garage Supervisor:

• Serve as project manager of the organization; works directly with employees
• Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Make certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Jack & James Auto Garage®, LLC
• Serves as internal auditor for Jack & James Auto Garage®, LLC.

Auto Repair and Maintenance Engineers (2) and Technicians (8)

• Handle Power train repair services
• Handles Brake repair services
• Handle wheel alignment and repair services
• Handles other repair and maintenance services
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jack & James Auto Garage®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured auto repair garage business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jack & James Auto Garage®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jack & James Auto Garage®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new auto repair and maintenance garage in Fairhope – Alabama, it might take some time for our auto repair and maintenance garage to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States. As an auto repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One good thing about the Auto Repair Shop industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Shop Industry, As a matter of fact, the Auto Repair Shop industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.

8. Our Target Market

Before starting our auto repair and maintenance garage in Fairhope – Alabama, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of auto repair and maintenance garages especially haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Transport Companies
• Haulage Companies
• Individuals and households
• School with transportation system for students

Our Competitive Advantage

Surviving in the business world as an auto repair and maintenance garage requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar automobile repair, servicing and maintenance garages and the small ones as well.

What smaller auto maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations (franchise from automobile manufacturing companies to run their service centers) and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups automobile maintenance, servicing and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jack & James Auto Garage®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Jack & James Auto Garage®, LLC will generate income by offering the following auto maintenance, servicing and repair related services;

10. Sales Forecast

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to take their cars, vans, and trucks et al for routine maintenance and servicing or for outright repairs.

We are well positioned to take on the available market in the automobile maintenance, servicing and repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our solar panel installation, maintenance and repair company to enviable heights.

We have been able to critically examine the automobile maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fairhope – Alabama.

Below is the sales projection for Jack & James Auto Garage®, LLC. It is based on the location of our business and of course the wide range of auto repair, servicing and maintenance services and target market;

• First Year-: $250,000
• Second Year-: $750,000
• Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same auto maintenance, servicing and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Jack & James Auto Garage®, LLC.

Our corporate goal is to grow Jack & James Auto Garage®, LLC to become one of the top 10 automobile maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages.

Jack & James Auto Garage®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our auto maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
• Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Fairhope – Alabama and other cities in the United States of America where we intend opening our garages which is why we have made provisions for effective publicity and advertisement of our solar panel installation, maintenance and repair company.

Below are the platforms we intend to leverage on to promote and advertise Jack & James Auto Garage®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Fairhope – Alabama
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Jack & James Auto Garage®, LLC and the services we offer
• List our auto repair, servicing and maintenance business in local directories / yellow pages
• Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Jack & James Auto Garage®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in their fleet of automobiles for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At Jack & James Auto Garage®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an automobile repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Jack & James Auto Garage®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance , permits and license will cost – $3,500
• Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed tool box and repair equipment – $25,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications to run our business – $ 3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard auto repair, maintenance and servicing garage in the United States of America.

Generating Funding / Startup Capital for Jack & James Auto Garage®, LLC

Jack & James Auto Garage®, LLC is a business that will be owned and managed by Engr. Jack Romney and his twin brother and business partner for many years James Romney.They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Jack & James Auto Garage®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our auto maintenance, servicing and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jack & James Auto Garage®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our studio: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and servicing tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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Auto Repair Business Plan Sample

Published Nov.11, 2016

Updated May.16, 2024

By: Jakub Babkins

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Table of Content

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

• Understand the market needs and tailoring the services right
• Managing their resources well
• Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

• Professional Automobile Drivers
• New Car Owners (Households/ Individuals)
• Used Car Owners (Households/ Individuals)

2.4 Business Target

• To achieve an NPS score above 80 within two years of our launch
• To achieve a CSAT score of 95 to 98% within a year of our launch
• To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Legal	$250,000
Consultants	$0
Insurance	$34,000
Rent	$30,000
Research and Development	$26,000
Expensed Equipment	$59,000
Signs	$3,800
Start-up Assets	$320,000
Cash Required	$341,000
Start-up Inventory	$60,000
Other Current Assets	$219,000
Long-term Assets	$230,000
Start-up Expenses to Fund	$402,800
Start-up Assets to Fund	$1,170,000
Assets
Non-cash Assets from Start-up	$1,550,000
Cash Requirements from Start-up	$373,000
Additional Cash Raised	$54,000
Cash Balance on Starting Date	$34,000
Liabilities and Capital
Liabilities	$30,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$50,000
Other Current Liabilities (interest-free)	$0
Capital
Planned Investment	$1,572,800
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
Loss at Start-up (Start-up Expenses)	$358,200

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

• Automobile engines
• Automobile exhaust systems
• Automobile brakes
• Automobile radiators
• Ignition System
• Electric repairs
• Spark plug, fuel cap, and others
• Tire pressure monitoring
• Wheel alignment
• Regulating radiator fluid, brake fluid, transmission fluid, etc.
• Maintaining car’s air conditioning system
• Installing Efficient air filters
• Installing the latest stereo system
• Brake discs
• Backup camera
• Turbochargers and more
• Seat covers
• Dash covers
• Fuel consumption meters
• Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Business plan for investors

5.2.1 professional automobile drivers.

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services.

To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

Potential Customers	Growth
Professional Automobile Drivers	41%	45,000	48,000	49,000	51,000	53,000	10.00%
Used Car Owners (Households/ Individuals)	37%	39,000	40,000	43,000	44,000	47,000	10.00%
New Car Owners (Households/ Individuals)	22%	18,000	20,000	23,000	26,000	29,000	11.00%
							10%

5.3 Business Target

Our business targets are:

• To earn a net profit of $24.5k per month by the end of the third year
• To obtain a repeat purchase rate of 80% throughout our service years
• To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
• To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

• Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
• We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
• Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

• We’ll advertise our startup through posters, Google Local ads service, and social media.
• We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
• We’ll offer a 50% discount on our services for the first month of the launch.
• We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Unit Sales
General Automotive Repairs	46,000	48,760	51,686
Regular Maintenance/ Service	42,000	44,520	47,191
Automobile Upgradations	31,000	32,860	34,832
Car Accessories	13,000	13,780	14,607
Unit Prices	Year 1	Year 2	Year 3
General Automotive Repairs	$53.00	$61.48	$71.32
Regular Maintenance/ Service	$48.00	$55.68	$64.59
Automobile Upgradations	$49.00	$56.84	$65.93
Car Accessories	$49.00	$56.84	$65.93
Sales
Direct Unit Costs	Year 1	Year 2	Year 3
General Automotive Repairs	$51.00	$58.00	$68.00
Regular Maintenance/ Service	$45.00	$51.00	$60.00
Automobile Upgradations	$45.00	$51.00	$58.00
Car Accessories	$44.00	$52.00	$57.00
Direct Cost of Sales

Personnel plan

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

• 1 Supervisor to help in the management
• 8 Auto Mechanics to perform the major work
• 2 Technicians to provide overall support
• 1 Database Manager to manage company’s sites and arrange video calls
• 1 Accountant to maintain financial records
• 1 Front Desk Manager/ Call Operator
• 2 General Assistants
• 1 Sales Executive

7.2 Average Salary of Employees

Supervisor	$14,000	$15,400	$16,940
Auto Mechanics	$97,000	$106,700	$117,370
Technicians	$28,000	$30,800	$33,880
Database Manager	$11,000	$12,100	$13,310
Accountant	$9,000	$9,900	$10,890
Front Desk Manager/ Call Operator	$7,000	$7,700	$8,470
General Assistants	$16,000	$17,600	$19,360
Sales Executives	$9,000	$9,900	$10,890
Cleaners	$15,000	$16,500	$18,150
Driver	$7,000	$7,700	$8,470

Financial Plan

Great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

Plan Month	1	2	3
Current Interest Rate	8.08%	8.13%	8.20%
Long-term Interest Rate	8.30%	8.33%	8.37%
Tax Rate	23.30%	24.70%	25.20%
Other	0	0	0

8.2 Brake-even Analysis

Monthly Units Break-even	5353
Monthly Revenue Break-even	$135,600
Assumptions:
Average Per-Unit Revenue	$237.00
Average Per-Unit Variable Cost	$0.68
Estimated Monthly Fixed Cost	$163,020

8.3 Projected Profit and Loss

Other	$0	$0	$0
TOTAL COST OF SALES
Expenses
Payroll	$213,000	$234,300	$257,730
Sales and Marketing and Other Expenses	$120,000	$122,000	$124,000
Depreciation	$2,490	$2,550	$2,600
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,080	$3,120
Insurance	$2,200	$2,270	$2,400
Rent	$4,000	$4,300	$4,600
Payroll Taxes	$30,000	$31,000	$32,000
Other	$0	$0	$0
Profit Before Interest and Taxes	$32,310	$237,136	$368,403
EBITDA	$32,310	$237,136	$368,403
Interest Expense	$0	$0	$0
Taxes Incurred	$6,462	$47,427	$73,681
Net Profit	$25,848	$189,709	$294,722
Net Profit/Sales	0.39%	2.33%	2.95%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Cash Received
Cash from Operations
Cash Sales	$56,000	$60,480	$65,318
Cash from Receivables	$18,000	$19,440	$20,995
SUBTOTAL CASH FROM OPERATIONS
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$37,000	$38,000	$39,000
Bill Payments	$26,000	$28,000	$30,000
SUBTOTAL SPENT ON OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT
Net Cash Flow	$13,000	$14,900	$16,700
Cash Balance	$26,500	$28,100	$29,400

8.5 Projected Balance Sheet

Assets
Current Assets
Cash	$281,000	$314,720	$346,192
Accounts Receivable	$25,600	$28,672	$32,227
Inventory	$4,300	$4,816	$4,988
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$18,000	$20,160	$22,680
TOTAL LONG-TERM ASSETS
TOTAL ASSETS
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$20,200	$22,624	$25,429
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES
Paid-in Capital	$31,100	$32,000	$33,000
Retained Earnings	$56,770	$61,879	$68,067
Earnings	$219,000	$238,710	$262,581
TOTAL CAPITAL
TOTAL LIABILITIES AND CAPITAL
Net Worth	$279,000	$304,110	$334,521

8.6 Business Ratios

Sales Growth	7.05%	7.81%	8.66%	3.00%
Percent of Total Assets
Accounts Receivable	9.17%	10.16%	11.26%	9.80%
Inventory	5.33%	5.91%	6.54%	9.90%
Other Current Assets	2.10%	2.33%	2.58%	2.40%
Total Current Assets	150.05%	151.20%	151.80%	158.00%
Long-term Assets	11.72%	11.78%	11.84%	12.00%
TOTAL ASSETS
Current Liabilities	4.62%	4.66%	4.70%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.37%	7.43%	7.50%	7.38%
NET WORTH
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.72%	97.28%	100.00%	99.00%
Selling, General & Administrative Expenses	94.01%	96.55%	99.25%	97.80%
Advertising Expenses	1.62%	1.66%	1.71%	1.40%
Profit Before Interest and Taxes	40.97%	42.08%	43.25%	33.90%
Main Ratios
Current	37	37	38	32
Quick	31	32	32.8	33
Total Debt to Total Assets	0.19%	0.17%	0.16%	0.40%
Pre-tax Return on Net Worth	74.70%	75.10%	75.70%	75.00%
Pre-tax Return on Assets	94.09%	98.79%	103.73%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	32.87%	33.89%	34.94%	N.A.
Return on Equity	56.18%	57.92%	59.72%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.7	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.2	33.81	35.098	N.A.
Accounts Payable Turnover	16.2	16.4	16.45	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.4	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.03	-0.03	-0.03	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$240,000	$253,440	$267,633	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.82	0.83	0.86	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	27.3	28.1	28.9	N.A.
Sales/Net Worth	2.1	2.1	2.1	N.A.
Dividend Payout	0	0	0	N.A.

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Write an Auto Repair Shop Business Plan

• Last Updated: March 27, 2023
• By: StartUp 101

Advertising Disclosure

A business plan is perhaps the most important tool for starting or expanding an auto repair shop.  Writing an auto repair shop business plan for the first time can be intimidating, but we have tips and sample plans to help write your plan.

Why is a Business Plan Important?

While many people write their auto repair shop business plan for the purpose of funding, the business plan can offer many more benefits. 

You have likely already spent a lot of time thinking about your shop, but it’s next to impossible to stay organized and reach all of your goals by not writing them all down. It’s very difficult to have a clear vision until you put those thoughts on paper and that’s where the business plan comes in.  Creating a business plan provides a blueprint to connect all the dots and make your vision a reality.

Another point to encourage you in writing your business plan is the Small Business Administration shows that over 21% of small businesses fail in the first year and 50% fail in the first five years.  Some of the more common reasons for business failure include not starting with enough money, lack of planning and over estimating revenue.  The business planning process identifies issues on paper which can help reduce costly mistakes after opening. 

The business plan is also important because of the critical feedback you can get on your venture.  It’s very common for a new entrepreneur to be overly optimistic when starting their business and being blind to what they don’t yet know.  By having another auto repair shop owner, professional or consultant in the auto repair industry, local business owner or accountant look over your plan, they will provide critical feedback to find weaknesses in the plan and make sure your numbers are reasonable. Getting these insights and fixing the plan before taking it to a lender or investor increases the likelihood you will have a successful business and receive funding.                

Taking the time to write a business plan is not something many prospective auto repair shop owners want to do because it’s unfamiliar and takes time. Keep in mind though, that writing a business plan is nowhere near as hard as running an auto repair shop, especially one that wasn’t properly planned from the start.

What Goes in a Business Plan?

There isn’t a set format that business plans are required to use, however there are certain topics that need to be covered. Below we have an auto repair shop business plan outline that should be helpful in getting started.  However, since this is your plan, write it the way that makes the most sense for your business and the intended reader.

Executive Summary

The executive summary is included at the beginning of a business plan but is going to be the last thing written.  This section should be a clear, concise, and high-level overview to help the reader (often a lender or investor) quickly decide whether or not your project is one they will continue reviewing.  If they aren’t engaged after reading the summary, they will not likely read further so it is important to quickly generate interest.

Common elements of an executive summary for an auto repair shop business plan includes:

• Overview of your auto repair shop
• What need is your shop serving that isn’t currently being served
• Experience of the owner(s) or staff
• Amount being requested
• How much the owner(s) are investing
• What the money will be used for

Business Overview

The business overview section of an auto repair shop business plan is where you provide details of what the business is going to do.  It’s especially important to show the excitement you have for the business and knowledge of the industry.  If you are using the plan for funding, you will have the opportunity to tell the loan officer all the great things you plan to do.  However, the plan will likely be going to a loan review committee who won’t get to hear your story, so be sure to get all the important details on paper!

The business overview has a few key areas to focus on, including the overview of shop, any specialties that will be offered and why the auto repair shop is needed in your area.

In the auto repair shop overview, provide some details on the services to be offered by the shop.  Many repair shops operate as a general mechanic, fixing anything that comes in the door, while others focus on particular brands or even specializing in transmissions or brakes. 

Another important aspect of this section is to answer why this auto repair shop is needed.  Describe what makes your auto repair shop unique among all the other repair shops in your area and why people will go to you versus the competition.

While you may be the best at turning a wrench, it takes a lot more than that to have a successful business.  Not saying being the best mechanic isn’t important, but just being a great mechanic may not be enough.  The owner of a successful auto repair shop needs to not only offer quality work, but also properly manage employees, market effectively, watch the numbers and so on. 

Industry Overview

The industry overview section should describe the overall market for auto repair shops.  If national sales trends aren’t increasing, try to find positives that support the decision to open a new repair shop, such as population growth in your local market.  The more supporting data you can come up with to support the strength of the industry the better, but be sure to reference where you got this information.  A lot of industry information can be found with an online search or in industry publications but if you haven’t already, take a look at our Guide to Starting an Auto Repair Shop.  

Company Ownership

Indicate the legal entity of the auto repair shop and how ownership is structured.  If you aren’t sure about the differences between a sole proprietorship, partnership, corporation or LLC, be sure to check out our overview of legal entities.

Finding a great location is an important aspect of starting an auto repair shop.  Ideally, the location of your shop should be in a location with high visibility and traffic, and easy to get to.

You may not have a site identified yet or you may have several to choose from, which is fine.  If you don’t have one yet, discuss what you’re looking for in terms of general location, square footage, price and any other important details.  If you don’t have a site selected yet, include as many details as are available and estimate on the high side as to what your location is going to cost.

Read more about tips for choosing a location .

Hours of Operation

Include the hours your auto repair shop will be open and include any reasoning as to why those hours are important if relevant. 

Provide some details on who your equipment and inventory vendors will be.  Make sure you have identified all the suppliers necessary to ensure constant and reliable inventory.  Do you have a back-up in case your main supplier has issues in getting you the inventory you need?

Permits and Licenses –

Before opening a new auto repair shop, you’ll need to obtain several federal, state, and local licenses and permits.

Learn more about licenses and permits for a new business.

Owners, Management & Employees

In this section, include a brief biography on the owner’s professional experience and education.  This section is especially important when looking for funding as a lot of weight is placed on the experience of the owner(s) and their ability to successfully run an auto repair shop. If the owner(s) don’t have direct industry experience, explain how their previous experience is relevant.

Management and Employees

This section outlines the auto repair shop’s staffing plan and will ultimately help to estimate the positions needed and forecast payroll expenses.

In the management portion, outline the title of the position and wages for any managers or key positions.  There may be some people you have already selected for these key roles.  If so, include a bio about their experience to help build the credibility of the team. 

Next, include information about staffing to detail what positions and how many people are needed to run the auto repair shop.  Include the title of the position (such as mechanic, front desk, administrative, etc), the number of people needed for each position, hours needed per week or month and the wages for those positions.  

Include a timeline of milestones already achieved and those that are being worked on.  By having a timeline, you will have a list of the sequence of when critical tasks need to happen.

The competition for auto repair is competitive and the number of ways to market keep expanding.  Without a solid plan to inform and entice, it may be hard to get customers in your door.  Getting noticed in the market is critical, so what will you do to get the message out and make your auto repair shop stand out?

The marketing section is one of the most important sections of the business plan, but is often not given the time and attention to detail as it needs. Why is it so important?  Because your business needs customers to spend money and without sales, there is no business.  Without knowing who your customers are and how to reach them, they may never hear about your auto repair shop. 

Some key areas of the marketing section should include the target market, promotional strategy and competitive analysis.

Target Market

The first building block in the marketing plan is defining the target market.  While a lot of people have vehicles, it’s easy to assume that everyone is also your customer.  This isn’t case since some people have warranties on their vehicles and some people do their own work.   

A target market is a group or groups of people that are most likely to benefit from a company’s offerings.  A target market shares a similar set of characteristics such as demographics (age, gender, education, or income), interests (sports, hobbies, lifestyle or values) or geographic areas.  Don’t think of targeting a specific group as excluding people and limiting business potential.  By defining your target market, you are able to more effectively spend your marketing budget by specifically going after the people who are most likely going to need your auto repair services. 

After defining who your target market is, try and find numbers as to how many of them there are.  This is usually easier to do with demographic or geographic information, but having actual data in your business plan lends credibility and will help to form the basis for the sales projections we will work on later.  Here is a free resource to help research the size of the potential target market .

In addition to marketing directly to potential customers, are there opportunities in developing relationships with companies to work on their fleets, used car dealerships, towing companies, etc as a referral source?  While the profits for fleet work and dealerships is lower than when dealing with customers directly, the volume and consistency of work may be well worth it.

Promotional Strategy

After defining the target market, the promotional strategy comes next.  The promotional strategy looks at how to best reach your target market.  By knowing your target market, assumptions can be made on how to best reach them by focusing on their media preferences. 

If you are going to do the marketing in-house, make sure to have a solid plan in place on how you will generate attention through the various marketing channels like print, radio, social media, website, etc.  Knowing your target market is key so you can most effectively reach them. Many plans make the mistake of stating they are going to use word-of-mouth marketing and do social media themselves as their only marketing.  Word-of-mouth is great but it takes years to build in most cases.  Social media can be effective for many businesses, but it takes a consistent and dedicated strategy to make it work well. Most business owners get busy working in the business and can’t stay consistent with their social media efforts. Not only is a strong promotional strategy important for the success of your auto repair shop, but lenders and investors will see through a weak promotional strategy which may affect your ability to get funded.  Also, be sure to not guess how much advertising is going to cost and get actual quotes so you have real numbers in the plan.

If marketing isn’t your strong suit or maybe you aren’t sure you have enough time to stay consistent, you can look at hiring a marketing company.  Hiring a marketing company lets you focus on what you do well, while they focus on what they do well and market your auto repair shop. If you decide to go this route, get details and prices for the work they are going to do.  Include these details in the plan.

Competitive Analysis

The competitive analysis section will provide an overview of the competition in your area and why you believe people will choose your repair shop over them.  You will likely focus on the independent shops offering the same services, but don’t forget the dealerships and larger corporate repair shops as well. If you are offering a particular type of specialty that isn’t solely being offered by another shop, don’t say there isn’t any competition, as many other shops probably are offering it. One example would be a shop only offering brake jobs.  While there may not be another shop specializing on brake jobs, it’s likely every other shop is offering those as well.

You should list how many auto repair shops are in a nearby radius as customers can have their vehicles towed to other shops.  Then, focus your analysis on the top 3-5 competitors.  The purpose is to research and show you understand the competition and what gives you a competitive advantage.  If you don’t have a competitive advantage yet, it may be time to go back to the drawing board to come up with one.  Unless the local population is growing, it’s going to be difficult to get people to change where they are currently having their vehicles worked on unless you offer something different or the competition is really bad.

Some of the key areas to look at in a competitive analysis include:

• Competitor’s name
• Years in business
• Services offered
• What they do well
• What you will do better

This is not the place to bash your competition or make references to how bad their repairs are or what a terrible person the owner is since these are subjective statements. Doing so also makes you look unprofessional.

Financial Projections

The financial projections of your auto repair shop business plan are the most important part of the plan, but are often the most intimidating.  Typically, lenders and investors will read the executive summary first to see if it is a project they would be interested participating in and then jump right to the projections.  If the thought of preparing your own financial projections is a bit daunting, software such as LivePlan helps make it easier.

Sales Projections

Sales projections can be complicated to estimate without knowledge of the market.  There are a number of ways of estimating sales for an auto repair shop, but you will want to refer back to your target market research that was done earlier to support your assumptions.

This is a common place for new business owners to be overly optimistic and is where having a mentor or consultant help with the plan.

Read our article on creating financial projections for more information.

Seasonality

When looking at sales projections, the effects of seasonality also needs to be evaluated.  Seasonality is more significant in some businesses than others and is important to estimate because it can show in the financial statements whether a business is projected to run out of money. 

Simply dividing sales by 12 months is a common mistake picked up by lenders and investors because it shows the entrepreneur may not really understand the sales trends for the industry.

Local markets will vary, and auto repair shops aren’t typically highly affected by seasonality, but services are generally more needed during times of temperature extremes in the winter and summer.  

Uses of Funds

Start off with a section for the Use of Funds to show the total cost of starting the shop.  List any costs you have already incurred and what still needs to be purchased.  You don’t need to itemize every little item like small individual tools, so combine the cost of all similar items and list them.   

It’s important to have quotes for everything should the bank or lender request them, but only add quotes for the more expensive items such as building renovations or large equipment as attachments in the Appendix. 

Total up the Uses of Funds to find the total cost of the project

Sources of Funds

The Sources of Funds section breaks out where the money is going to come from.  The owner’s investment is commonly listed first.  Most lenders are going to want to see the owner(s) put in between 15% – 25% for a new auto repair shop.

Other funding sources are listed next such as bank loans, investor funds, etc. Learn more about finding financing for your auto repair shop .

The total amount in the Sources of Funds should match the Uses of Funds.

Financial Statements

There are three primary financial statements that a lender is going to look at for a start-up auto repair shop which include the cash flow statement, profit and loss statement and balance sheet. The information provided previously in the narrative portion of the business plan must match the financial projections.

Cash Flow Statement – The projected cash flow statement is an important tool when starting a business. Similar to a checkbook register, the projected cash flow statement shows an estimate of the money coming into the business and expenses that will need to be paid.  The benefit of this statement is to see whether there is enough cash to sustain the business based on the assumptions.  Should this number be negative, the assumptions need to be reevaluated to see if sales can be increased, expenses reduced or if more cash is needed to start the business.

The cash flow statement is typically structured to look at three years in the future, with the first year broken out by month and years two and three broken out by quarter.

Profit & Loss Statement – This statement (sometimes called a P&L statement or income statement), while similar to the cash flow statement, shows the annual income and expenses of the auto repair shop.  The projected profit and loss statement is often displayed annually and takes a before-tax view of the financial results of the business.

Balance Sheet – The projected balance sheet statement is not requested by all banks when reviewing a loan for new auto repair shop. A projected balance sheet shows the projected assets and liabilities for a business at start-up and then the end of each year.

Personal Financial Statement

If applying for bank financing, a personal financial statement will typically be needed for every person with a 20% or more ownership position in the shop.  This statement is similar to one that is used to apply for a home or car loan.  Here is a link to a personal financial statement template. The personal financial statement will show a borrower’s assets (checking & savings accounts, CD, IRA, 401K, valuables, home, vehicle, etc) as well as assets (mortgages, credit card bills, installment accounts, etc).

See how to fill out a personal financial statement .

At the end of the plan, include an appendix section to include any supporting information such as resumes, quotes, floor plans, etc.

Save Time with an auto repair shop Business Plan Template

To help with creating a business plan, you can use our free business plan template .  This template can be used for any business, so some of the sections may not be relevant to your auto repair shop business plan. Some of the tips in this article should help you in modifying it to work for your shop.

To help with the creative juices, here is a link of a free sample auto repair shop business plan.

Last, there is software such as LivePlan that includes an auto repair shop business plan narrative and financial projections to help make writing a business plan easier.

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Auto Repair Shop Business Plan Sample

Have you ever considered opening an automotive repair shop?  Auto shops are known as businesses that have strong cash flow, and fair profits.  In this auto repair shop business plan sample we will show you what goes into developing a strong plan.  Please remember this is merely a guide, and the best business plans are fully-customized to each individual company.

Before commencing on your auto repair shop, you may have a few questions. How profitable are auto repair shops? How to grow an auto repair business? How much does it cost to start an auto repair shop? How do I get more customers in my auto repair shop? How to market an auto repair business?

Brace yourself, because in this article, our team has prepared a comprehensive automotive repair shop business plan, which should help address these queries.

To conquer the largest auto repair companies in the USA, you must first grasp the auto repair industries intricate nuances. Automotive repair service companies in the US provide a wide range of automotive repair and mechanic services to ensure optimal performance and longevity of vehicles. Whether you are looking to start a mechanic business or small auto shop, we can help you with a customized automotive repair business plan or mechanic shop business plan, which is catered to your specific goals and requirements.

As things take shape, it will be time to paint the operational landscape of your auto repair shop. Envision the perfect location, layout, and equipment needed to manifest your vision. Map out the staffing requirements, employee training protocols, and the smooth workflow process, which will ultimately define your mechanic shop’s efficiency.

Seek out and foster relationships with trustworthy vendors and suppliers who can provide you with leading automotive parts, tools, and supplies. Engage with those who offer competitive prices, exceptional quality, and lightning-fast delivery to fortify your shop’s operations.

Navigate regulations. Familiarize yourself with local, state, and federal rules governing the auto repair industry. Obtain the necessary licenses and permits to properly operate your shop, and of course, ensure your business adheres to the highest environmental and safety standards.

In conclusion, for an ambitious entrepreneur , crafting a comprehensive business plan for your auto repair shop is your ticket to triumph in this fiercely competitive industry. We hope you enjoy this auto shop business plan example.

1.0 Executive Summary

“Your Canadian Auto Shop” (The Company) is a Tire and Customization Shop with nine locations spanning across British Columbia, Alberta and Saskatchewan.  Over the past ten years the company has gained recognition across Western Canada as a leader in tire, wheel, rim and accessory customization.  With a sprawling population, the City of Saskatoon has been identified as an ideal location for Your Canadian Auto Shop’s tenth Tire and Customization Shop.

With the support of senior management, Ralph Walzek  will open an incorporated business, and raise $122,750 through the Canada Small Business Financing Program (CSBFP) for the equipment and leasehold improvements required to successfully launch this location.  Ralph Walzek  will receive an annual management salary of $75,000, and 20% of the Saskatoon Location’s net income.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.  This demand, and low-barriers to entry has resulted in a level of saturation within the industry; notwithstanding, Your Canadian Auto Shop has established a process which sets them apart in this competitive landscape.

By offering affordable customizations, unmatched selection, a culture of customer satisfaction, and a convenient selection of payment options, Your Canadian Auto Shop stands out in an otherwise crowded marketplace.  Regardless of this increasingly competitive landscape, the company has continued to grow year after year.  In partnership with senior management, Ralph Walzek  will utilize over two decades of professional management experience to guarantee the success of this tenth Your Canadian Auto Shop location.

According to Statistics Canada’s 2020 Consensus, Saskatoon is currently the third fastest growing metropolitan region in Canada.  With a thriving business sector, Saskatoon is an attractive and vibrant city that is a primary engine for the province’s wider economy.  With an experienced management team, reputable brand, profitable business model, and strong demographics, this location is positioned to be a flourishing Tire and Customization shop for many years to come.  Furthermore, Ralph Walzek  is committed to being a fair and equitable employer, to support the local labour market, and the community of Saskatoon at large.

2.0 Business Overview

Your Canadian Auto Shop was established 10 years ago in Edmonton, Alberta.  Since then, the company has grown to nine locations across Western Canada, and is poised to continue it’s track record of growth.  Ralph Walzek  seeks to incorporate a company and secure a $122,750 loan for the equipment and leasehold improvements of this tenth location in Saskatoon, Saskatchewan.  This incorporated business will operate under the Your Canadian Auto Shop brand in the Tire and Customization Industry.

2.1 Industry Overview

North American Industry Classification System (NAICS) Code – 44132

Tire Dealerships

Establishments: 2,383

0-99 Employees: 100%

Average Revenue: $1.1 million

Profitable: 76.1%

This industry comprises establishments primarily engaged in retailing tires and tubes. These establishments also typically provide complementary services, such as tire mounting and wheel balancing and aligning.

2.2 Mission Statement

OUR MISSION IS TO PROVIDE THE CITY OF SASKATOON WITH LEADING AUTO REPAIR SERVICES.

2.3 Goals and Objectives

• Approval from TD Business Banking to proceed with incorporation
• Ralph Walzek will incorporate a business and provide documentation to CIBC
• Secure $122,750 through the Canada Small Business Financing Program
• Secure a location for the shop in Saskatoon, Saskatchewan
• Purchase all equipment and inventory outlined in “6.0 Financial Plan”
• Recruit one Sales Rep and Tire Technician from the Regina location, as agreed upon
• Open for business on July 1, 2021

2.4 Key Success Factors

Safety in the Workplace : Focus on maintaining safe working conditions.  In addition to protecting our staff, our location’s image revolves around safety and consciousness.

Inventory Management Skills : Able to control stock on hand and install accurate costing systems.

Employment of Skilled Automotive Technicians : Access to skilled technicians in a workforce that is becoming more technologically advanced.

After Sales Service and Support : Provide superior customer service in a segment that can be very competitive.

Location Close to Key Markets: Location in the heart of Saskatoon, therefore determining  market size, average customer income, vehicle count, population, and competition.

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3.0 Staffing

AUTOMOTIVE TIRE TECHNICIAN

• Interact with Commercial Sales Consultants and/or Counter Sales Service Associates to obtain work orders and commercial customer service specific requirements.
• Install, balance, rotate and repair tires at Saskatoon location in a safe and efficient manner.
• Support fellow Tire Technicians and Sales Rep as required.
• Install and service all tires up to qualifications.
• Deliver customer tire maintenance program to businesses by visiting assigned locations to complete fleet checks.
• Accurately complete all documentation/paperwork in relation to service work provided so that efficient billing can be conducted.
• Inventory, maintenance, cleaning and other duties as assigned by management for both the shop and the service trucks.
• Ensure service vehicle and all equipment is maintained in a safe, neat and clean manner at all times.
• Assist the shop associates to ensure the shop and service vehicles are kept in a safe, neat and clean manner at all times both inside and outside.
• Conduct efficient Receiving/Shipping of all inventories that enters and leaves the shop.
• Professionally interact and communicate with customers to explain service details and advise on any additional service maintenance that has been identified.

Requirements

• Internal Candidates – Intermediate PLT Skills
• Valid Driver’s License with a clean abstract
• Basic mechanical aptitude and previous exposure to automotive work
• Interest in further expanding knowledge about the tire industry
• Well developed people skills with the ability to professionally interact with customers
• Maintain a clean and professional personal appearance and grooming.
• Farm and small OTR tire experience preferred.

4.0 Products & Services

We specialize in getting customers the right tire that suits the vehicle and application. Snowflake Rated All Terrain Tires, All-Weather Tires, All-Season Tires, Performance Tires, Track Tires, Mud Tires, All Terrain Tires, Rugged Terrains, Mud Boggers, Winter Tires, Semi, Agricultural, and the list goes on.  We are committed to providing tires for every price point.

WHEELS & RIMS

Your Canadian Auto Shop has access to all types of rims and custom wheels. We are factory direct, which means huge discounts and quick turnaround times for our customers. We specialize in high offset and low offset wheels, staggered wheel fitment, American muscle, tuner cars, winter rim & tire combos, concave wheels, deep dish, and all sizes.  We are confident our offering of Armed Brand Wheels will be well received in the Saskatoon area.

ACCESSORIES

• Multiple brands of lift and leveling kits
• Multiple brands of exhaust tips
• Multiple brands of mud flaps
• Multiple brands of tonneau covers
• Fender Flares
• Exhaust Systems
• Multiple brand of front and rear bumpers
• Cold air intake
• Multiple brands of side steps

5.0 Operations

Securing a strategic and busy location, prominently visible within Saskatoon, will be a key element of our operations.  Not only will our shop be easily accessible, but also well positioned; therefore, increasing market exposure.

Ensuring a safe and healthy workplace will be our highest priority.  Owner and Location Manager, Ralph Walzek  has extensive experience in ensuring the health and safety of his team members.  “Safety starts at the top” and by utilizing over two decades of safe work practices, Ralphwill lead by example in day to day operations.  Each and every morning a safety meeting will be conducted to review best work practices, and weekly topics; while everyone on the team will be encouraged to participate.

5.2 Payment & Financing

• Payment with cash
• Payment via credit cards, point of sale machines, or EFT
• Payment via mobile money transfer
• We also have in place Driver Capital no credit check financing

5.3 Hours of Operation

Monday 9AM – 6PM

Tuesday 9AM – 6PM

Wednesday 9AM – 6PM

Thursday 9AM – 6PM

Friday 9AM – 6PM

Saturday 9AM – 5PM

Sunday – CLOSED

5.4 Equipment

Please refer to “6.0 Financial Plan” for a complete list of required equipment.

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6.0 Market Analysis

Over the coming years, operators in the Tire Dealers industry in Canada are set to benefit from improving economic conditions, particularly within several of the industry’s key commercial markets, as the Canadian economy recovers from the COVID-19 pandemic.

With expected growth in corporate profit over the five years to 2025, which will be coming off a relatively low base level, many companies are expected to expand or upgrade their existing vehicle fleets and generate significant demand for retailers of tires, repair services and miscellaneous vehicle parts and accessories. Moving forward, rising levels of disposable income are expected to bolster demand for industry services, as these trends are anticipated to enable a greater number of Canadian consumers to upgrade existing vehicles, causing the industry’s customer base to expand.

As a result of these factors, IBISWorld projects industry revenue will increase at an annualized rate of 3.0% to $5.5 billion over the five years to 2025.

Commercial markets are anticipated to expand as industrial production growth is expected to occur within the Canadian economy. Moreover, corporate profit in Canada is forecast to increase at an annualized rate of 8.3% over the five years to 2025, enabling many of the industry’s transportation and wholesaling clients to increase investments in their vehicle fleets.

To further strengthen demand from this segment, operators are expected to grow business relationships and secure long-term distribution contracts over the next five years. For example, national and regional repair garages are expected to work to gain a competitive edge against smaller shops by entering into long-term commercial relationships with tire dealers.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.

In turn, these positive trends are expected to support demand for industry operators. Industry profit is also expected to increase marginally over the next five years, as the profit margin is expected to recover from a low level in 2020.  At the same time, rising levels of disposable income are anticipated to encourage many consumers to purchase tires and repair services from external car dealerships or mechanics.

6.1 Market Trends

• Amid COVID-19, industry profit is expected to temporarily decline
• Despite high competition, revenue has expanded over the past five years
• New vehicle sales are expected to grow from a low base level in 2020
• The industry will likely benefit from consistent growth in the Canadian population
• Small-scale operators are expected to continue entering the tire-dealer market
• Industry profit will likely decline as operators seek to gain market share by offering discounts on products and services

6.2 Competitive Advantage

The following list outlines the three competitive advantages that will differentiate Your Canadian Auto Shop Saskatoon from the competition:

• We are uniquely equipped to utilize the sales from all other stores to give us substantial buying power in obtaining our products cheaper from suppliers; subsequently, allowing for more affordable and competitive pricing for customers.
• Through our agreement with Driver Capital No Credit Financing, we are able to appeal to a vast customer base by eliminating insufficient credit as a barrier to purchase.
• We will be the only dealer in Saskatoon offering the extremely popular brand, Armed Wheels.

6.3 Risk Analysis

Total vehicle-kilometres.

Tires most often degrade from extended use and age. As a result, the more a vehicle is driven, the more often replacement tires or retreads will be required. The number of total vehicle-kilometres was expected to increase in 2020. However, due to the COVID-19 pandemic, people have reduced nonessential travel and have commuted less by car, leading to an expected decline in the number of total vehicle-kilometres driven, which poses a potential threat to the industry.

World price of crude oil

High gasoline prices, which are dictated by crude oil price trends, generally decrease vehicle sales and cause consumers to switch to alternative modes of transportation. For instance, consumers may use public transportation when gasoline prices are high instead of driving their own vehicles and incurring the expense of gasoline. As a result, when consumers use their cars less, they will not require tires as quickly, thus decreasing industry demand.

Per capita disposable income

Per capita disposable income influences the timing and value of tire purchases. Consumers with more disposable income are quicker to replace worn tires and are more likely to purchase expensive, high-performance tires. Alternatively, consumers with less disposable income may be hesitant to purchase expensive products or to replace worn tires.

New vehicle sales

New vehicles are sold with a set of factory-installed tires. Increases in vehicles sold boost industry revenue for the long term as it increases the base of potential vehicles that need replacement tires. In the short term, new cars typically do not need replacement tires. When consumers buy new vehicles over maintaining their current ones, industry revenue is negatively affected. As of its last update, new vehicle sales were expected to increase in 2020. Due to the coronavirus pandemic, however, consumers are expected to purchase fewer new vehicles, which represents a potential opportunity for the industry. 3

7.0 Sales & Marketing Plan

Our Sales & Marketing Plan is founded on the strength of Your Canadian Auto Shop’ well-established brand.  The company has a proven marketing strategy that targets multiple social media platforms in order to attract an array of target customers. The Saskatoon shop will have the benefit of people already recognizing the name and stellar reputation of the Canadian Custom Autoworks’ brand.  Our Saskatoon Shop will leverage the brand through signage, placement on the company’s website, and awareness on social media.

7.1 Target Customers

HOUSEHOLD CONSUMERS

The Tire Dealers industry in Canada serves a broad range of customers, with everyday household consumers accounting for the vast majority of the industry’s total revenue.

• 18 – 65 years of age
• All income levels, as we deal in lower level, mid-level and premium level products
• Resides in the Saskatoon Metropolitan Region (population of 325,806 – 2019 Q4)
• Major Ethnicities (European 72.2%, Aboriginal 11.2%, South Asian 4.7%, Filipino 3.9%) 4
• Drives a motor-vehicle

BUSINESSES FOR END USE

Businesses for end use, including trucking companies, construction companies, farmers and mining outfits, represent the second-largest source of revenue for industry operators.

• We will establish relationships with local companies, in an effort to provide wheels and tires for their fleets.

DEALERSHIPS

• Kia of Saskatoon, Ens Toyota, Ens Lexus, Oakwood Nissan, Bema Autosport BMW, Porsche Centre Saskatchewan, Saskatoon Mitsubishi, Mercedes-Benz Saskatoon, Saskatoon South Hyundai, Volvo Cars Saskatoon, Acura Centre of Saskatoon, Jaguar Saskatoon, Mid City Auto Centre, Saskatoon Auto Connections Sales Centre, Wheaton GMC Buick, Subaru of Saskatoon, Studio Fiat, Mainway Mazda, Bright City Auto Sales

7.2 Key Channels

We understand the nature of our referral based industry.  Our focus is to provide the most professional experience available, consequently laying the groundwork for a consistent stream of referrals.

SOCIAL MEDIA

Social media will reach our target customers in two ways; pre-established Your Canadian Auto Shop pages will drive wider brand recognition and messaging, while our location will create a Facebook page for our community of direct customers in the Saskatoon area.

GOOGLE MY BUSINESS

A Google My Business account will be established to receive reviews from customers, to assist customers with finding the shop, to keep the public up to date on hours of operation, and provide additional contact information.

GOOGLE SEARCH

The company’s website will be imperative in assisting buyers through the sales process.  By learning more about our products in one central place, people can transition from prospects to paying customers quickly.

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7.3 swot analysis.

8.0 Financial Plan

8.1 Five Year Pro Forma Cash Flow Statement

Are you interested in seeing more business plan samples? Here is a variety of business plan samples   to help guide you through your entrepreneurial journey.  If you need any help in developing a custom business plan contact us here!

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Open and Operate a Repair or Body Shop

Before you apply.

Before you apply to become a registered repair shop in New York State, you must:

• read the DMV Commissioner’s  Motor Vehicle Repair Shop Regulations (PDF)  (CR-82) and the Repair Shop Requirements (PDF) (VS-145)
• submit the Original Facility Application with all required documentation
• review the Repair Shop Zoning Requirements Letter (PDF) (VS-146)

You can also call the Office of Vehicle Safety and Clean Air for more information.

Next Section

To become a registered repair shop in New York State, you must submit

• Original Facility Application (VS-1) 
• proof that you have permission to use the property at the business location. This can be a notarized statement from the property owner, lease (may be contingent on facility approval), sub-lease with primary lease, mortgage, deed, or receipted tax bill.
• proof of zoning as detailed in the Repair Shop Zoning Requirements Letter (PDF)  (VS-146)
• your sales tax ID number and a copy of your  Sales Tax Certificate of Authority .  Do not submit your application  if you do not have your Certificate of Authority. You may also need a  Federal Employer Identification Number from the IRS  to complete this step.
• proof of  Workers' Compensation Insurance  for your employees. If you do not have employees, indicate that on your application. 
• a photocopy of the driver license(s) or other government-issued photo identification for everyone listed on the application
• all required fees paid by checks made payable to the Commissioner of Motor Vehicles
• a filing receipt from the  New York State Department of State  (for a Corporation or LLC) or a business certificate from the County Clerk (for an individual using assumed name or partnership)

Send your application, documents and fees to the Bureau of Consumer and Facility Services at the address below. Vehicle Safety’s Application Processing Unit will review your application and check that it is complete. If DMV approves your application, you will receive a repair shop registration.

Note: Mobile Repair Shops require an on-site investigation.

Official Repair Shop Sign

DMV does not provide official repair shop signs. You can purchase these signs from various sign shops and automotive supply stores. See  Motor Vehicle Repair Shop Regulations (PDF)  CR-82 (82.7) for specific requirements.

Conducting Business

Authorizing repairs.

You must have authorization from the customer to make repairs. You can require your customer to

• sign a repair order
• provide a written work order
• authorize the repair by telephone. If repairs are authorized by telephone, you must record the time, the date, and the name of the person who gave authorization.

  If the final bill is more than the written estimate

The final bill cannot exceed your written estimate without the consent of the customer. You can charge a reasonable fee to make an estimate.

Customer abandoned their vehicle

You can try to foreclose a Garageperson's Lien against the vehicle. For more information, read  Instructions and  Requirements for Filing New York State Garageperson's Liens (PDF)  (MV-901C).

Payment for storage of a vehicle

You can request payment for storage of a vehicle after you notify the customer by mail at the last known address.

Send Your Application

Mailing address:.

Bureau of Consumer and Facility Services Application Unit  New York State DMV P.O. Box 2700 Albany, NY 12220-0700

Contact Office of Vehicle Safety and Clean Air

Contact us by phone:, related documents, vs-1r: original facility application - repair shop (pdf).

Original Facility Application - Repair Shop

VS-1DR: Original Facility Application - Dealer/Transporter and Repair Shop (PDF)

Original Facility Application for Dealer/Transporter and Repair Shop.

VS-1RI: Original Facility Application - Repair Shop and Inspection Station (PDF)

Original Facility Application - Repair Shop and Inspection Station

VS-1DRI: Original Facility Application - Dealer/Transporter, Repair Shop and Inspection Station (PDF)

Original Facility Application for Dealer/Transporter, Repair Shop and Inspection Station.

VS-145: Repair Shop Requirements (PDF)

Repair Shop Requirements

VS-146: Repair Shop Zoning Requirements Letter (PDF)

Repair Shop Zoning Requirements Letter

CR-82: Motor Vehicle Repair Shop Regulations (PDF)

Regulations and instructions for motor vehicle repair shops required to be registered with the DMV.

MV-901C: Instructions and Requirements for Filing New York State Garageperson's Liens (PDF)

Information on foreclosing a garageperson's lien for storage, repair or towing charges. Related forms: MV-901A, MV-901B, and MV-15 and MV-82.

Related Information

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Enroll in the Donate Life Registry to become an organ donor

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Why Consumers Are Taking Time to Plan Their Grocery Shop

Consumers may be changing where, when and how they shop in response to elevated prices and the growing number of online and physical store options, but they are not doing so flippantly and are carefully weighing decisions. That’s one takeaway from a recent webinar on 2024 mid-year promotion trends and shopper insights presented by data and tech company Inmar Intelligence .

In a competitive marketplace and a climate in which inflation is easing but still above norms, Inmar’s data shows that shoppers are spending more time thinking about what to buy and what to make. “We hear people saying that prices have slowed, so some are thinking that things must be getting easier for grocery shoppers. But the reality is that we need to look at things from a higher level,” said Bill Beyea, senior manager, client insights and analytics at Inmar. “Shoppers are paying $50 more for groceries per week right now than they were just five years ago. Even if salaries or income have increased, it doesn’t mean people have gotten over the sticker shock.”

[RELATED: Inmar Expands Partnership With Northeast Grocery to Build Retail Media Network ]

Accordingly, consumers are dealing with sticker shock by being more mindful about purchases. For example, 66% of shoppers said they spend 30 minutes or more preparing for their regular grocery trip. More than a quarter (27%) spend a half hour to an hour in prep mode while 25% take one to two hours to plan meals, compare prices and search for discounts and coupons, among other activities. 

A focus on value, along with the trend of cooking and eating more at home, are contributing to the more thoughtful and time-consuming meal planning. More than half (54%) of those surveyed said they plan meals for the week as they plan for their grocery trip and 35% are looking for inspiration. 

In addition to seeking out meal ideas, two thirds of consumers said that they are creating shopping lists based on deals and discounts. Inmar’s data supports the notion that shoppers are using digital and printed flyers to compare prices and reveals that more than a third spend time planning trips to multiple retailers. Digital coupons are now outpacing printed coupons in usage, Inmar's intelligence confirms.

Retailers and brands who want to capture a share of these thoughtful shoppers’ grocery budgets can reassess traditional approaches and definitions. “I encourage us all to rethink shopper loyalty. When we think about shopper loyalty in our industry, we typically think about shoppers being loyal to a brand or retailer. We really need to think about how we are earning shoppers’ business,” pointed out Pete Medina, director, customer insights at Inmar. “How do we actually earn the right to be on their list? In other words, shopper loyalty is an outcome, not an input.”

To earn that business, grocers and CPGs can provide tailored savings and solutions to shoppers, through personalized loyalty programs and other tools, the analysts added.

In other news, Inmar recently announced that it is expanding its digital incentive network into the convenience store channel. The company is teaming up with Axonet to provide incentives to tens of thousands of store locations. 

More Grocery Business News

Progressive grocer, inmar intelligence honor an innovator's legacy.

Consumers Prove Resilient – Again

Reading the Inflation Tea Leaves

SPECIAL REPORT: Envisioning the Store of the Future

Related Topics

• Market Trends
• Shopper Behavior
• Supermarket & Grocery Industry News

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Auto Repair Service Business Plan

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Quick and Dirty Auto Repair

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts. Convenience is a must for most middle and upper-class consumers and travelers. Where can they go to meet their needs?

Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts. QDAR focuses on personalized service to its customers by offering convenience and rapid service. Additionally, QDAR is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock while keeping a balanced level of inventory to maximize inventory turnover. Finally, QDAR has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

The market of auto repair services and parts sales is very fragmented. The majority of auto shops usually offer either repair services or parts inventory. The niche where QDAR positions itself represents auto centers that offer both auto services and parts at one convenient location. Middle and upper class customers to whom QDAR will cater its services are less price sensitive as they value the convenience of quick turnaround (on any model/make of car) and high quality of services.

CompetitionWhy Us? Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts. QDAR focuses on personalized service to its customers by offering convenience and rapid service. Additionally, QDAR is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, QDAR has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

There are over 400 auto repair and auto parts competitors in the local area. Only a quarter of these competitors offer both auto repair services and auto parts inventories. Among these, only a few are major national chains. The remainder are small privately-owned establishments. QDAR will compete well by focusing on convenience and offering a high level of customer service. Additionally, its honest reputation will be a major factor in repeat business and building a large base of regular, loyal customers.

Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts. QDAR focuses on personalized service to its customers by offering convenience and rapid service. Additionally, QDAR is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, QDAR has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

Expectations

QDAR’s analysis is based on the averages of the first-year figures for total sales by units, and for operating expenses. These conservative assumptions make for a more accurate estimate of real risk.

Financial Highlights by Year

Financing needed.

Our investment is $250,000:

Jake Brakes $62,500

Blair Horn $62,500

Yugo Ford $62,500

Gaz Motor $62,500

Problem & Solution

Problem worth solving.

Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts. Convenience is a must for most middle and upper-class consumers and travelers. Where can they go to meet their needs

Our Solution

Target market, market size & segments.

QDAR has a focus on meeting the demand of a regular local resident customer base, as well as towed vehicle drop-ins from local and freeway traffic traveling on nearby freeways. QDAR has established relationships with a few major local tow truck companies for referral business of stalled vehicles requiring a tow to an auto repair facility.

The company estimates that about 80% of revenues will come from the established local clientele and 20% from the local and freeway traffic tow-ins. The table below further estimates the total market potential of the type of services rendered by QDAR in the Portland metropolitan area.

4.1 Market Segmentation

QDAR focuses on the middle and upper-income markets. This market looks for high quality, rapid service with as much convenience as possible. Most individuals in this market segment are willing to pay an extra premium within the pricing of auto repair services to avoid the common inconveniences of having a vehicle tied up in a repair shop.

Local residents regular customer base QDAR wants to establish a significantly large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Emergency towing local and freeway traffic Emergency towing of local and freeway traffic comprises approximately 20% of revenues. Convenience, regular referrals from tow truck companies, and high quality, rapid service are critical to capturing this segment of the market.

Current Alternatives

There are over 400 auto repair and auto parts competitors in the local area. Only a quarter of these competitors offer both auto repair services and auto parts inventories. Among these, only a few are major national chains. The remainder are small privately-owned establishments. QDAR will compete well by focusing on convenience and offering a high level of customer service. Additionally, its honest reputation will be a major factor in repeat business and building a large base of regular, loyal customers.

Primary competitors are engaged principally in the retail sale of automotive parts, tires and accessories, automotive maintenance and service and the installation of parts. Larger competitors have adopted the "supercenter" store model, a freestanding, "one-stop" shopping automotive warehouse that features state-of-the-art service bays. These "supercenters" carry thousands of stock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and "buy-for-resale" customer sectors.

Large competitors’ stores typically carry the same basic product line, with variations based on the number and type of cars registered in the different markets. A full complement of inventory at a typical supercenter includes an average of approximately 25,000 items.

Automotive product lines usually include:

• Suspension parts.
• Ignition parts.
• Exhaust systems.
• Engines and engine parts.
• Oil and air filters, belts, hoses, and air conditioning parts.
• Wiper blades.
• brake parts.
• Chemicals, including oil, antifreeze, polishes, additives, cleansers and paints.
• Mobile electronics, including sound systems, alarms, and remote vehicle starters.
• Car accessories, including seat covers, floor mats, and exterior accessories.
• Hand tools, including sockets, wrenches, ratchets, paint and body tools, jacks and lift equipment, automotive specialty tools and test gauges.
• A selection of truck, van, and sport utility vehicle accessories.

Additionally, a number of competitors have electronic work order systems available amongst their various service centers. This type of system creates a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service center to maintain a service customer database.

Our Advantages

QDAR’s competitive edge is the heavy focus on customer convenience by offering unlimited shuttle service, rapid turnaround on auto repair jobs, and a referral network of a few local major tow truck companies.

Keys to Success

Our keys to success will include:

• Expedient and convenient auto repair services.
• Growing and maintaining a referral network of local towing service companies.
• A wide range of auto parts inventory that is (nearly) never out of stock.
• Rapid order and delivery of major auto parts items.

Marketing & Sales

Marketing plan.

QDAR will focus on its target market, the middle and upper-class market, and establish a reputable image from that target market’s perspective, by offering convenience, expedient auto repair services, customer service excellence, and by working with local towing companies.

QDAR will focus its sales strategy on effectively reaching the target customer segment of upper and middle-class customers. For this purposes, the company will employ direct sales staff. At the same time, the company will further strengthen its relationships with the tow truck companies to capture auto repair needs of the local and highway traffic.

QDAR has the core competencies amongst its large crew to work on all makes and models of domestic and foreign vehicles. With ten service bays at each location and all employees focused on superior customer service, a quick turnaround is always the standard at QDAR. QDAR strives to be accurate and honest with customers in terms of quoting cost estimates and repair completion time estimates. QDAR employees focus on delivering what they promise. This focus on building strong customer relationships based on trust and integrity will be the catalyst in establishing a strong regular customer base.

QDAR utilizes the highest degree of technology in managing a full range of auto parts inventory. The goal is to never be out of a specific part while maximizing inventory turnover. Strong vendor relationships have been established with the most reputable vendors in terms of shipping time of major parts.

Milestones & Metrics

Milestones table.

	Milestone	Due Date
		Mar 08, 2018
		June 14, 2018
		Sept 14, 2018
		Dec 17, 2018

Key Metrics

Our Key metrics are: 

• Average gross margin
• Average revenue per engagement
• Repeat business
• cost of inventory and training 
• # of tweets and retweets which tell us which customers are saying what 
• # of return customers 
• # of business relationships 

Ownership & Structure

QDAR is incorporated in the state of Oregon. It is privately owned by Jake Braques, Blair Horne, Hyugo Ford and Gaz Môder. To attract additional financing, the owners may consider taking QDAR public several years down the road.

Management Team

QDAR has a strong management team that will allow them to execute on this exciting idea. QDAR has four partners, Jake Braques, Blair Horne, Hyugo Ford, and Gaz Môder. Jake has a background of sales, 12 years at the nation’s second largest Ford dealership. He will be overseeing the sales and marketing for the organization. Blair’s background is in management from Siemen’s automobile division where he was a Vice President overseeing a department of 565 people. Hyugo is also a product of the auto industry, specifically the auto repair and parts sales industry. Hyugo spent six years at NAPA Auto Parts and then seven years at Repair-It, Oregon’s largest independent auto repair facility. At both organizations Hyugo had multiple roles within the organization allowing him to bring to QDAR a broad skill set. Lastly, Gaz brings QDAR 10 years of finance and administration experience. Gaz was trained at GM and later in his career took a position at Delco Parts. The incredible breadth of skill sets and knowledge that the management team possesses will allow QDAR to accomplish their lofty sales goals.

QDAR is an exciting business opportunity that addresses the unmet need of having a full service auto repair facility that also has a complete retail parts center. These distinct but complimentary services will have benchmarked customer service, something that the industry is not known for having. QDAR will be led by a seasoned management team of four, all of whom have extensive industry experience.

Personnel Table

	2018	2019	2020
Manager – Mechanics	$54,000	$55,080	$56,182
Mechanics (4)	$154,800	$210,528	$268,425
Customer Service (3.33)	$136,800	$139,536	$189,768
Inventory	$43,200	$44,064	$44,945
Manager – Customer Service	$48,000	$48,960	$49,939
Owners (4)	$240,000	$244,800	$249,696
Totals	$676,800	$742,968	$858,955

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our key assumptions are: 

• People need cars to get to their jobs on time and make money. 
• Cars break down 
• Not everyone has the ability to pay for new parts and expensive service. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will be buying $350K long term assets mainly shop equipment. The rest of the money will be spent on legal fees. 

Sources of Funds

Each of the founders will contribute a fourth of the initial investment of $250K. We are also taking on a long-term loan and some credit card debt.

Projected Profit & Loss

	2018	2019	2020
Revenue	$5,308,400	$5,500,000	$5,990,000
Direct Costs	$2,441,864	$2,530,000	$2,755,400
Gross Margin	$2,866,536	$2,970,000	$3,234,600
Gross Margin %	54%	54%	54%
Operating Expenses
Salaries & Wages	$676,800	$742,968	$858,955
Employee Related Expenses	$135,360	$148,594	$171,791
Sales	$16,800	$16,800	$16,800
Marketing	$16,200	$16,200	$16,200
Rent	$30,000	$30,000	$30,000
Amortization of Other Current Assets	$0	$0	$0
Total Operating Expenses	$875,160	$954,562	$1,093,746
Operating Income	$1,991,376	$2,015,438	$2,140,854
Interest Incurred	$14,080	$9,793	$7,822
Depreciation and Amortization	$16,667	$16,666	$16,667
Gain or Loss from Sale of Assets
Income Taxes	$0	$0	$0
Total Expenses	$3,347,771	$3,511,021	$3,873,635
Net Profit	$1,960,629	$1,988,979	$2,116,365
Net Profit/Sales	37%	36%	35%

Projected Balance Sheet

	Starting Balances	2018	2019	2020
Cash	$100,000	$1,985,651	$3,952,778	$6,045,320
Accounts Receivable		$0	$0	$0
Inventory	$50,000	$50,000	$50,000	$50,000
Other Current Assets	$50,000	$50,000	$50,000	$50,000
Total Current Assets	$200,000	$2,085,651	$4,052,778	$6,145,320
Long-Term Assets	$350,000	$350,000	$350,000	$350,000
Accumulated Depreciation		($16,667)	($33,333)	($50,000)
Total Long-Term Assets	$350,000	$333,333	$316,667	$300,000
Total Assets	$550,000	$2,418,985	$4,369,445	$6,445,320
Accounts Payable		$0	$0	$0
Income Taxes Payable		$0	$0	$0
Sales Taxes Payable		$0	$0	$0
Short-Term Debt	$91,644	$38,519	$40,490	$42,561
Prepaid Revenue
Total Current Liabilities	$91,644	$38,519	$40,490	$42,561
Long-Term Debt	$213,356	$174,837	$134,347	$91,786
Long-Term Liabilities	$213,356	$174,837	$134,347	$91,786
Total Liabilities	$305,000	$213,356	$174,837	$134,347
Paid-In Capital	$250,000	$250,000	$250,000	$250,000
Retained Earnings	($5,000)	($5,000)	$1,955,629	$3,944,608
Earnings		$1,960,629	$1,988,979	$2,116,365
Total Owner’s Equity	$245,000	$2,205,629	$4,194,608	$6,310,973
Total Liabilities & Equity	$550,000	$2,418,985	$4,369,445	$6,445,320

Projected Cash Flow Statement

	2018	2019	2020
Net Cash Flow from Operations
Net Profit	$1,960,629	$1,988,979	$2,116,365
Depreciation & Amortization	$16,667	$16,667	$16,667
Change in Accounts Receivable	$0	$0	$0
Change in Inventory	$0	$0	$0
Change in Accounts Payable	$0	$0	$0
Change in Income Tax Payable	$0	$0	$0
Change in Sales Tax Payable	$0	$0	$0
Change in Prepaid Revenue
Net Cash Flow from Operations	$1,977,296	$2,005,645	$2,133,032
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt	($53,125)	$1,971	$2,072
Change in Long-Term Debt	($38,519)	($40,490)	($42,561)
Net Cash from Financing	($91,644)	($38,519)	($40,490)
Cash at Beginning of Period	$100,000	$1,985,651	$3,952,778
Net Change in Cash	$1,885,651	$1,967,126	$2,092,542
Cash at End of Period	$1,985,651	$3,952,778	$6,045,320

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Our Services

We are the leading auto repair shop in Moscow, Idaho.  We are known for providing high quality auto repair services at a fair price.  Proper vehicle maintenance helps ensure the longevity of your vehicle and keeps it running smoothly.  University’s Auto Repair Shop of Moscow, Idaho is here to properly maintain your vehicle.  

Maintenance

Check engine light.

We provide quality auto repair services

We provide services you can trust! Our clients choose us and our auto repairs because they know we provide high quality service at a fair price.

At university Auto Repair

Financing options, quality service, shuttle service, have to say about university auto repair, eric thomas, raquel gurge, yevgen nosyk, recent blog posts.

We post the latest news and updates from the world of cars, trucks, accessories and car races weekly. Stay tuned!

In addition, you’ll find some articles about car maintenance and repair issues that might be helpful for a car owner. Find what interests you.

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OBSBOT Tail Air NDI Streaming Camera 4K, AI Tracking PTZ Camera with Intelligent APP, Gesture Control, HDMI/USB-C/Wireless Webcam, Video Camera Live stream for YouTube, Chruch, Worship, Creator, etc.

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Carbon emissions from the lifecycle of this product were measured, reduced and offset.

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Tail Air+Remote

Brand	OBSBOT
Photo Sensor Technology	CMOS
Video Capture Resolution	4K@30 FPS, 1080P@60 FPS
Maximum Focal Length	12 Millimeters
Maximum Aperture	1.8 f
Flash Memory Type	Micro SD
Video Capture Format	MJPEG,H264,H265
Supported Audio Format	MP3, WAV, AAC, FLAC
Screen Size	1.8 Inches
Connectivity Technology	Bluetooth, Wi-Fi, USB, Ethernet, HDMI

About this item

• 【Small in Size, Big on Performance】OBSBOT Tail Air - the smallest 4K PTZ camera that packs a punch in performance and portability. With a size smaller than a cola can, you can take this video camera anywhere. The 4K camera offers crystal-clear 4K resolution and supports a 320° horizontal rotation, 180° vertical rotation, bringing every detail to life.
• 【Sreaming Like a Pro with NDI】With NDI, you can effortlessly stream your footage to a local network, enabling you to process our ndi camera signals on multiple devices simultaneously. It also eliminates the need for complex HDMI/SDI cables, reducing equipment connection, debugging, and wiring costs.🚩Note：NDI License Key requires additional purchase.
• 【Stream Anywhere】Our streaming camera offers 4 connection options - Micro HDMI, USB-C, Ethernet, and Wireless connection, catering to the diverse needs of users. Moreover, the video camera for youtubers supports various protocols such as RTMP, RTSP, and VISCA, allowing you to stream media to platforms like Facebook, YouTube, Twitch, and more.
• 【Master Your Stream with Versatile App】With companion software Obsbot Start, you have complete control over your video capture settings. From Al Director to Preset Positions and customizable visual settings, the wirleless webcam's APP allows you to easily fine-tune real-time video! 🚩Note：Tail Air live streaming camera firmware update requires inserting an U3 Mirco SD card.
• 【Upgraded AI Tracking, Up 3 Types of Targets】OBSBOT Tail Air auto tracking camera maintains the highly acclaimed AI tracking feature for humans, while also introducing new capabilities to track animals and objects, making it even more practical and appealing. There is nothing you can't track only the targets you can't imagine.
• 【Pro-tier Multicamera Setup】With multiple Tail Air content creator camera working together, you can create a simple broadcast studio that captures visuals from different angles. Moreover, due to the wide compatibility of 4K webcam, they can seamlessly integrate into your existing systems or workflows.The webcam for streaming can optimize your productivity and open up new possibilities for creativity.
• 【Multi-Control Options】You have the freedom to choose the most convenient and suitable method to operate the Tail Air camera for streaming. Whether it's through gestures, a remote control, PC & mobile software, or even a stream desk, you can effortlessly control your content creator essentials in the way that works best for you. 🚩Note: Turn on UVC mode in the PC software to turn it into a plug-and-play webcam 4K.
• 💌【Professional Technical Support】If you encounter some technical problems while using Tail Air streaming camera, feel free to contact our technical support team to get the best product experience.

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Connecting You to The Future

Our high-end intelligent webcams feature advanced capabilities like AI-tracking, gesture control, auto-framing, and HDR low-light correction, providing stunning HD visuals for the ultimate video calling experience. With a sleek design and user-friendly app interface, OBSBOT takes video communication to the next level. Connect with confidence and let OBSBOT elevate your video calls.

OBSBOT AI-Powered Webcam

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What's in the box

• OBSBOT Tail Air *1
• Storage Box *1 + Outter Package*1
• USB-C Male to Dual USB-C Female Splitter*1 + USB-C Cable *1 + USB-C to USB-A Adapter *1
• Quick Start *1 + Warranty Card *1

Product information

Technical details.

Brand Name	‎OBSBOT
Item Weight	‎0.028 ounces
Product Dimensions	‎2.72 x 2.87 x 5.31 inches
Item model number	‎Tail Air
Batteries	‎1 Lithium Polymer batteries required. (included)
Is Discontinued By Manufacturer	‎No
Color Name	‎Black
Special Features	‎NDI Supprot (RTMP/RTSP/VISCA/UVC/OSC Supprot)

Additional Information

ASIN	B0CJLJHS3T
Customer Reviews	4.3 out of 5 stars
Best Sellers Rank	#15,755 in Electronics ( ) #29 in
Date First Available	September 22, 2023

Warranty & Support

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Product description.

ND Filter-Capture Beauty with Light Control

Tailored for OBSBOT Tail Air, the four-level ND filters can control the amount of light entering the camera lens, providing a cinematic effect while maintaining neutral colors.

Multi-port Connection Support

Say goodbye to compatibility issues and hello to hassle-free streaming with three connection options-Mirco HDMI, USB-C, and Ethernet.

* Click "Learn More" to go to the Ethernet Adapter page.

Easy Control with Four Devices

Through gestures, remote control, PC & mobile software, or even a stream deck, you can control your camera in the way that works best for you.

* Click "Learn More" to go to the Remote Controller page.

Multicam Set Up

With multiple Tail Air streaming camera working together, you can create a simple broadcast studio that captures visuals from different angles.

* Click "Learn More" to go to the Multicam Combo.

OBSBOT More For You

	1/1.8"	1/1.5"	1/2.0"	1/2.8"	—	1/2.8"	1/2.8"
	People/Animal/Object Tracking	Multiple AI-Tracking Modes	AI-Tracking	Auto Framing	AI-Tracking	Auto Framing	AI-Tracking
	✔	✘	✘	✘	✔	✔	✘
	3 Positions	3 Positions	3 Positions & Parameter Adjust	X	X	X	3 Positions
	2.5H or Plug-in Use	Plug-in Use	Plug-in Use	Plug-in Use	2H or Plug-in Use	Plug-in Use	Plug-in Use
	APP/Gesture/Remote/Stream Deck	PC/Gesture/Remote/Voice/Stream	PC/Gesture/Remote/Stream Deck	PC Software	Gesture	PC Software	PC/Gesture/Remote
	USB-C/LAN/HDMI/WiFi/Bluetooth	USB-C	USB-C	USB-C	USB-C	USB-C	USB-C
	2μm Pixel Light Adjustment	PixGain HDR	HDR	HDR	By Smartphone	HDR	Auto Light Adjustment
	Pan: ±160°; Tilt: ±90°	Pan: ±150°；Tilt: ±90°	Pan: ±150°；Tilt: ±90°	—	Pan: ±160°	—	Pan: ±160°, Tilt: ±90°
	Church/Worship/Sports Live	Live Stream/Meeting/Video call	Presentation/Meeting/Streaming	Group Meeting/Display/Video	Vlogging/Live Stream	Group Meeting/Display/Video	Presentation/Meeting/Video

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Customer reviews

• 5 star 4 star 3 star 2 star 1 star 5 star 67% 13% 7% 4% 8% 67%
• 5 star 4 star 3 star 2 star 1 star 4 star 67% 13% 7% 4% 8% 13%
• 5 star 4 star 3 star 2 star 1 star 3 star 67% 13% 7% 4% 8% 7%
• 5 star 4 star 3 star 2 star 1 star 2 star 67% 13% 7% 4% 8% 4%
• 5 star 4 star 3 star 2 star 1 star 1 star 67% 13% 7% 4% 8% 8%

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

Customers say

Customers like the gesture control and tracking capabilities of the camcorder. For example, they say it has outstanding features and functions, and the auto-tracking is great. They appreciate the crisp, clear sound and the excellent recording quality. That said, some disagree on value and battery life.

AI-generated from the text of customer reviews

Customers like the quality of the camcorder. They say it's the best quality video they've ever owned, the quality is excellent in all conditions, and the built-in audio is good. Some say the camera is lovely, well thought out, and easy to set up.

"...1. The camera is actually good . The lens is a 23mm f/1.8. If you know about camera lenses, then you know how much that alone could cost...." Read more

"...The video quality , according to the therapist and trainer, is very good, and the built-in audio is good enough..." Read more

"...The build quality is great with easy access to plug in. The gestures I feel like is picked up much easier than the tiny 2 and that is refreshing...." Read more

"... Video quality is excellent and I have tried it in a variety of settings: business related SM recordings, Zoom meetings, low light, back light,..." Read more

Customers like the gesture control of the camcorder. They say it has outstanding features and functions, and all the AI features work well. Some say the camera works perfectly with their Linux machine and performs exceptionally.

"...Turns out it works shockingly well . Setup was pretty much plug-and-go...." Read more

"...The features are ground breaking with NDI , Bluetooth, and enhanced tracking; as well as the standard features from OBSBOT...." Read more

"...Also, logging into YouTube didn't work and I could not reset the recording setup or re-login to YouTube...." Read more

"...can record in 4K and do livestream at 1080p . You can also control it with your hands ...." Read more

Customers like the picture quality of the camcorder. They mention that the 4K resolution produces images that are clear, vivid, and solid. They also appreciate the tracking feature and the ability to set the image for different light options. Overall, most are satisfied with the picture control, and the broadcast quality video.

"...Works exactly like the 1080p version, but with even better video quality ...." Read more

"I like this camera because it is small, I can record in 4K and do livestream at 1080p . You can also control it with your hands...." Read more

"Because the 4K resolution produces images that are both clear and vivid, it is ideal for video conferencing, live streaming, and the development of..." Read more

"...Tech support is non existent. Camera is also SUPER grainy in any low.ligjt situations.Stay away and get something else." Read more

Customers like the tracking capabilities of the camcorder. For example, they say it's awesome, it tracks them when they move around, and the auto-tracking is great. Some mention the autofocus can occasionally lose them, but overall, they're satisfied with the tracking.

"...we record in the shop is so much more efficient because of the AI tracking features ...." Read more

"...It does a great job of tracking me as I move around: the only times it has stopped tracking are when I’ve been flailing around with my hands during..." Read more

"...The tracking capability is off the charts it can track people , animals, and objects. The quality of it is amazing it can do 4k 30fps or 1080p 60fps...." Read more

"...The auto-tracking is great , though I will say it can occasionally lose you if you move too quickly or suddenly jerk away from the camera..." Read more

Customers find the installation of the camcorder to be easy. They mention that it's surprisingly easy to use, with an easy-to-use app that opens up the fine control needed for great video. They also say that the build quality is great, with easy access to plug in. Customers also say the software is good, with lots of options and no glitches.

"...3. Connectivity is easy since there are multiple ways to connect the tail air...." Read more

"...Turns out it works shockingly well. Setup was pretty much plug-and-go ...." Read more

"...The build quality is great with easy access to plug in . The gestures I feel like is picked up much easier than the tiny 2 and that is refreshing...." Read more

"... Instructions are very poor and trying to select a subject to track seems to be difficult at times...." Read more

Customers are satisfied with the microphone of the camcorder. They mention that it delivers crisp clear sound, and the built-in mic does a decent job. The recording quality is excellent, and it captures speech with an impressive degree. The video conversations and recordings have greatly improved. It also has microphones, but they have not needed that yet so they are unsure how good that is. On a light stand, it did a credible job of filming the speakers. The servos are totally silent and its tracking capabilities are great.

"...to the therapist and trainer, is very good, and the built-in audio is good enough ..." Read more

"...-Bigger Display-Picture Quality-Remote Use- Good Mic -Enhanced AI-4k 30FPS" Read more

"...The recording quality is excellent , and it captures my speech with an impressive degree of precision while simultaneously reducing the amount of..." Read more

Customers are mixed about the value of the camcorder. Some mention it's the best value for the money, while others say it'd be better off buying a high-end product.

"...a few different cameras over the years and this one is seriously good for the price .2...." Read more

"...HDMI out and a remote. Why are these not in the box by default? overpriced and underperforming. wound up getting the 1080 OBSbot meet...." Read more

"...First off Ill get the good out the way. It is a great price for a PZT cam compared to $800 to up to even $5000 for the actual makes and "high end"..." Read more

"...You got it! Worth a few extra bucks ." Read more

Customers are mixed about the battery life of the camcorder. Some mention that it has up to 2.5 hours of battery life so you can take your camera out and use it for mobile needs, while others say that it randomly disconnects from their OBS software and loses connection with their computer. They also say that the camera and microphone randomly shut off and that they constantly have to reboot the device.

"...It would loose connection with my phone on wifi or cellular.I decided to reboot /reset the camera and it fixed all those issues...." Read more

"...A little over an hour later, the battery died . It sat there the whole time (ON) until the battery died. Not cool...." Read more

"...The Tail Air has up to 2.5 hrs of battery life so you can take you camera out and record out door and not be limited to your content...." Read more

"5 Months into ownership and the camera has died .... CRAP!!!!! I want my money back!!!(1 day later updated review)..." Read more

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Moscow Auto is your premier diesel mechanic service provider in Moscow, Idaho. With years of experience and expertise, our skilled mechanic is equipped to handle all your diesel vehicle needs. From routine maintenance and repairs to complex engine diagnostics, we are committed to delivering top-notch service and ensuring your vehicle is in optimal condition. Whether you own a truck, SUV, or agricultural equipment, we have the knowledge and resources to get the job done right. Discover why Moscow Auto is the trusted choice for all your diesel mechanic services.

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Since 1973, Moscow Auto LLC., has been the industry leader in automotive service and repair in northern Idaho and the surrounding area. We pride ourselves on honesty, integrity, and an impeccable customer-centered approach. We provide exceptional automotive repair services to residential, commercial, and industrial customers and work on a wide range of vehicle makes and models. We're confident in our expert automotive knowledge and all work is 100% guaranteed.

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Pairing and switching earbuds on your Samsung mobile device

Take your health tracking to the next level with AI-powered wearables

Private: 7 sleep and health benefits of Galaxy Watch6

Pairing your  Samsung Galaxy Buds  to your Samsung mobile devices, such as  Galaxy Z Fold6  and  Galaxy Z Flip6 , is as easy as one, two, three. Follow these few steps to pair earbuds seamlessly and switch between devices effortlessly.

Pairing earbuds to your device

Connecting your Samsung Galaxy Buds to your mobile devices is simple. Here’s how to do it using Bluetooth:

1. Put your earbuds in pairing mode:

• Ensure your earbuds are snug in their case with the lid closed.
• Open the case to activate pairing mode.

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2. Pair with your phone:

• Open the Wearable app.
• Tap “Start” and grant location permissions.
• Select your earbuds from the device list.
• Accept the pairing request and review permissions.
• Enable required permissions and notifications.

3. Pair with another device:

• Open your device’s Bluetooth settings.
• Choose your earbuds from the list of available devices.
• If earbuds are paired elsewhere, hold both touchpads to enter pairing mode.

Auto switching between devices

The auto switch feature makes it easy to switch between audio sources when using your Samsung Galaxy Buds. If you’re listening to music or watching your favorite show on your  Samsung Galaxy Tab  when you receive a call, your earbuds automatically switch over to your phone so you can answer it. Here’s how to  enjoy seamless audio switching  using auto switch:

1. Requirements:

• Your device should be running One UI 6.1.1.
• The  Galaxy Wearable app  must be installed on all devices.
• Use the same Samsung account on all devices.

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2. Automatic pairing:

• Your connected earbuds pair automatically with devices using the same Samsung account.

3. How it works:

• Listening on your tablet? When a call comes to your phone, earbuds switch to the phone.
• To use this feature, be sure to install the Wearable app on all devices.

With Samsung’s ecosystem of products, you enjoy the convenience of easy pairing and seamless device switching. If you have any additional questions, feel free to explore the resources listed above or reach out to Samsung support.

Reach next-level productivity for your business by pairing your  Samsung Galaxy Z Fold6   and your  Samsung Galaxy Buds3 or Galaxy Buds3 Pro . Unleash new ways to stay productive, collaborate and more with  Samsung for business . If you’re not currently an Android or Galaxy user, make sure to  try Galaxy for Work  on your current device today.

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A global leader in enterprise mobility and information technology, Samsung offers a diverse portfolio of business technologies from smartphones, wearables, tablets and PCs, to digital displays and storage solutions. We are committed to putting the business customer at the core of everything we do, serving diverse industries including education, finance, government, healthcare, hospitality, public safety, retail and transportation. Follow Samsung for Business on Twitter: @SamsungBizUSA

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Featured Posts

Check out these steps for pairing earbuds seamlessly and switching between devices effortlessly on your Samsung mobile device.

Samsung's new Galaxy Ring is finally here, adding yet another form factor to the Galaxy connected experience.

Learn the key features of the Galaxy Watch6, Galaxy Watch6 Classic and Galaxy Watch6 FE.

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Britain’s Violent Riots: What We Know

Officials had braced for more unrest on Wednesday, but the night’s anti-immigration protests were smaller, with counterprotesters dominating the streets instead.

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By Lynsey Chutel

After days of violent rioting set off by disinformation around a deadly stabbing rampage, the authorities in Britain had been bracing for more unrest on Wednesday. But by nightfall, large-scale anti-immigration demonstrations had not materialized, and only a few arrests had been made nationwide.

Instead, streets in cities across the country were filled with thousands of antiracism protesters, including in Liverpool, where by late evening, the counterdemonstration had taken on an almost celebratory tone.

Over the weekend, the anti-immigration protests, organized by far-right groups, had devolved into violence in more than a dozen towns and cities. And with messages on social media calling for wider protests and counterprotests on Wednesday, the British authorities were on high alert.

With tensions running high, Prime Minister Keir Starmer’s cabinet held emergency meetings to discuss what has become the first crisis of his recently elected government. Some 6,000 specialist public-order police officers were mobilized nationwide to respond to any disorder, and the authorities in several cities and towns stepped up patrols.

Wednesday was not trouble-free, however.

In Bristol, the police said there was one arrest after a brick was thrown at a police vehicle and a bottle was thrown. In the southern city of Portsmouth, police officers dispersed a small group of anti-immigration protesters who had blocked a roadway. And in Belfast, Northern Ireland, where there have been at least four nights of unrest, disorder continued, and the police service said it would bring in additional officers.

But overall, many expressed relief that the fears of wide-scale violence had not been realized.

Here’s what we know about the turmoil in Britain.

Where arrests have been reported

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Israel Aerospace to Set Up Freighter Shop in Abu Dhabi

Israel Aerospace Industries is proceeding with a plan to establish a presence in Abu Dhabi, where it will convert Emirates aircraft into freighters, highlighting how the United Arab Emirates remains committed to building ties with Israel even as tensions rise in the region.

The aviation arm of IAI, which provides maintenance repair and overhaul services for aircraft, is set to reconfigure 10 Boeing Co. 777s from Emirates’ fleet into cargo freighters at two hangars starting in October, Shmuel Kuzi, the executive vice president of the division, said in an interview.