Auto Repair Business Plan
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Auto Repair Business Plan Example
Below is a template to help you create each section of your Automotive Repair business plan.
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.
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
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.
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.
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.
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.
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
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.
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:
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.)
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.
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.
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.
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.
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.
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.
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.
The following will be the operations plan for Tim’s Timely Auto Repair.
- 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.
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.
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
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
Income statement, balance sheet, cash flow statement, 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 Shop Business Plan Template [Updated 2023]
Auto Repair Shop Business Plan Template
If you want to start an Auto Repair Shop or expand your current Auto Repair Shop, you need a business plan.
The following Auto Repair Shop business plan template gives you the key elements to include in a winning auto repair business plan. An automotive business plan is a plan to start and/or grow your business.
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of your Auto Repair business plan: Auto Repair Shop Business Plan Sample I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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Auto Repair Shop Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Auto Repair Shop Business Plan
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Key sections in this auto repair shop business plan:
All of our sample business plans are complete and include all of the sections that bankers and investors expect to see. Every plan includes the following sections:
- Executive Summary : A quick overview of your plan and entices investors to read more of your plan.
- Company : Describes the ownership and history of your business.
- Products and Services : Reviews what you sell and what you're offering your customers.
- Market Analysis : Describes your customers and the size of your target market.
- Strategy and Implementation : Provides the details of how you plan on building the business.
- Management Team : An overview of the people behind the business and why they're the right team to make the business a success.
- Financial Plan : A complete set of forecasts including a Profit and Loss Statement, Cash Flow Statement, and Balance Sheet.
If you're interested in learning how to write a business plan, read our free in-depth guide to writing a business plan , download our free Business Plan Template , and check out LivePlan —our award-winning business planning software.
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Business plan template for an auto repair shop
Download this business plan template for an auto repair shop in PDF or Word format, or tailor it to your project directly in our business plan software.
Discover our auto repair shop business plan template
Not accustomed to writing business plans? Business plan template for an auto repair shop will turn a typically challenging process into a total breeze.
Modelled on a complete business plan of an auto repair shop in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
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Auto repair shop business plan template content
This template includes a complete business plan, with a financial forecast and the following sections:
- Executive summary: The executive summary gives the reader a clear and concise overview of your business idea
- Company: This section lays out the structure of your business, including its location, management team and legal form
- Products and services: Here, you'll give an overview of the services or products offered by the company
- Market analysis: The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry and local market (customer profile, hot trends, regulation, competition, etc.)
- Strategy: This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
- Operations: This step lays out the company's operational organisation, including the recruitment plan
- Financial plan: The financial plan includes a table of sources & uses (initial financing plan), and complete financial statements (P&L, balance sheet and cash flow statements).
- Appendices: This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
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Auto repair shop business plan template extract
Executive summary, business overview.
Louvigny Auto will be a generalist car garage offering both the maintenance and repair of new and used cars.
The garage seeks to welcome all vehicles, regardless of the make or age of the car.
We will offer a courteous and personalized service, making sure to carry out any necessary service needed to maintain the car in question, and will also offer professional advice to our customers.
The company will be located at 25 Route de Louvigny in the town of Louvigny, which is considered as one of the main "commuter towns" of Caen.
The Route de Louvigny is one of the most popular roads among employees travelling regularly between Caen and Louvigny. It's also located near the historical Prairie Racetrack, the Exhibition Centre, the Malherbe Stadium, and The Zénith concert hall.
The garage is, therefore, very visible to those moving in and out of Caen and close to major events such as concerts and soccer matches, which is ideal if someone's car breaks down, as it can provide assistance quickly and efficiently.
The company's legal structure is as a limited company. It will have two partners, Valentine D and Loïc C., who both hold 50% of the shares.
Having worked in the same garage together for almost five years, the two managers know each other very well and their individual skills complement one another's perfectly.
Valentine D. worked as an executive assistant in a local garage for 10 years. She will be in charge of the administrative and commercial management of the company.
Loïc C. has 7 years of experience in mechanics. He will be in charge of the auto-repair workshop, and more broadly the operational part of the company.
It is estimated that 83% of the 67 million people living in France own a car - making it a country filled with motorists. For many, the car is an everyday necessity.
The steep increase in how frequently and how far people travel, coupled with the longer lifespan of cars on the road means there's a higher demand for car garages than ever before.
With the average lifespan of a car being around 8.5 years, regular maintenance and inspection is required to ensure it continues to function smoothly.
At 32.7 million, privately owned vehicles make up the majority of all cars registered within France. They're followed by commercial cars, estimated at 6.1 million, and 1 million light-duty vehicles (including pick-up trucks and vans), which also require the services of a car garage.
Since the 2000s, the French have favoured the purchase of brand new cars over used vehicles - with 2.11 million new cars sold in 2017.
This is due, in particular, to the scrappage bonuses introduced by the government, as well as a tightening of rules to bring car owners in line with changes regarding technical inspections and environmental regulations.
As for the budget each car owner must set aside for maintenance, the average annual cost was said to vary from €872 to €1,801 in 2018, depending on the type of car.
Garage visits have also become more frequent due to the increasing presence of electric cars, which explains why individuals can no longer afford to forgo specialised labour.
According to INSEE figures, there are 41,600 maintenance and auto repair businesses throughout France - with about 1 garage for every 1,600 inhabitants.
The French car repair market is not very cyclical. However, we have noted a slight decrease in overall revenues between 2010 and 2015, due to fewer road accidents.
From 2016, the overall turnover of the auto repair market increased by 4% - from 21.2 billion euros in 2016, to 22.1 billion euros in 2017.
In terms of purchasing habits, a car owner is most likely to seek out a car garage they already know and trust when they need work done on their car - so it's very important to provide a quality service that builds customer loyalty.
On the other hand, for incidents such as emergency breakdowns, proximity is an essential consideration because the need is immediate.
The Caen agglomeration alone has more than twenty garages. There is, however, only one other garage in Louvigny - with five more located in the neighbouring towns.
According to Statista.fr, there were 145,934 new passenger car registrations in Normandy in 2017, with the local market representing about 7.2% of the French market.
As Normandy is a rural region, having a vast number of car garages is essential.
We have identified two customer segments for our garage:
- Residents of Louvigny and the surrounding area : these customers are residents located around Caen who want a garage they can trust. Their needs include maintenance, repairs, spare parts, and advice.
- Passing motorists who break down: these motorists often need emergency repairs because they have broken down whilst passing through the region. The necessary services here include mainly towing and repairs.
We have identified only one other garage in Louvigny, and 3 other competitors on the outskirts of the town:
The services offered by our competitors are similar to ours, and, apart from the quality of service and the customer reception area, there are no real areas of differentiation between our car garage and theirs.
As a result, we expect very strong competition with the other garages located around Louvigny.
We do believe, however, that the location of our garage means we'll be readily visible to motorists travelling from Caen to Louvigny, and that the market is large enough to support the arrival of a new entrant.
We expect our company to be profitable at the operating level from the first year, and fully profitable from year 2.
We believe we can achieve a total turnover of 429,850 € for year 1. We plan to develop our business over the following years, by building customer loyalty and implementing the actions indicated in our marketing plan. This should allow us to reach revenues of 454,900€ in year 2 (with 5.83% of growth) and 461,600€ in year 3 (with 1.47% of growth).
We expect to achieve an EBITDA of 22,499€ (with a 5.23% margin) in year 1, 39,989€ in year 2 (with a 8.79% margin) and 44,077€ (with a 9.55% margin) in year 3.
Net operating cash flow should be positive throughout the plan, enabling us to meet our loan repayments while providing leeway for us to renew our equipment and deal with any contingencies.
The creation of our car garage will require an initial investment of €240,000. The partners will contribute €70,000 (29%) and we would like to obtain the below bank financing to fund the remaining €170,000:
- VAT Bridging loan: €35,000
- Medium-term financing: €135,000
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If you would like to open your own auto repair shop, have a look at our guides.
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Follow our advice if you're interested to take over auto repair shop.
Create a business plan for auto repair shop
Want to open auto repair shop business plan? Check out our article to find out what to do.
How to do a financial forecast auto repair shop?
Not 100% sure on how to proceed? Read our guide for your financial forecast auto repair shop.
Auto Repair Business Plan Template
Written by Dave Lavinsky
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 a 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
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. Venture capitalists will usually not fund an auto repair business. They might consider funding an auto repair business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results. With that said, personal savings and bank loans are the most common funding paths for auto repair businesses.
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:
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.
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.
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.
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.
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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.
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
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.
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.
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.
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.
Auto Repair FAQs
What is the easiest way to complete my auto repair shop business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair shop you are operating and the status; for example, are you a startup, do you have an auto repair shop that you would like to grow, or are you operating a chain of auto repair shops?
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Other Helpful Business Plan Articles & Templates
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.
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
0-99 Employees: 100%
Average Revenue: $1.1 million
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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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.
- 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.
- 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
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
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
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
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.
- 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 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.
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
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