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How to Write an Auto Repair Business Plan: Complete Guide

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  • January 24, 2023

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Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your auto repair shop, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your auto repair business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it’s the summary of the different sections included in your business plan.

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

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or private grant

How to write an executive summary for your auto repair shop?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Ensure that the executive summary doesn’t exceed 2 pages in total.

The executive summary usually consists of the 5 major sub-sections that include:

  • Business overview : introduce your auto repair shop and its type or concept. For instance, you may offer a body repair shop, auto glass repair shop, auto systems expert shop, etc. Also, provide a brief of your shop’s size and a list of services offered
  • Market analysis : introduce the market and mention the service radius, average income of the target audience, and their demographic distribution. Also, mention the problem that your auto repair shop will solve alongside the total competitor count within your service radius
  • People : introduce the management team and their industry experience. Mention your business partner(s), if any. Give an overview of the staffing requirements and the reporting hierarchy
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits ? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

how to make a business plan for a auto repair shop

Auto Repair Financial Model Template

Download an expert-built 5-year Excel financial model for your business plan

2. Business Overview

The Business Overview segment of your auto repair shop’s business plan will introduce your company and try to answer some important questions that potential investors and lenders may have . Here is a sample list of questions that you must try to address in the company overview section:

  • Why are you opening an auto repair shop?
  • Where is your shop located? Why did you choose that location?
  • What type of auto repair shop will you open?
  • What services will you offer? At what prices?
  • What will be your operating days / hours?
  • Who is your target audience?
  • How many customers can you serve per week / per month?
  • What will be the legal structure of your company?

a) History of the Project

Any business must have three components:

  • Passion & experience of the business owner
  • The rationale behind you starting this business today

Passion & Experience

You must be passionate about the business and demonstrate the same to the potential lenders and/or investors through the business plan.

Also, you must have some experience or training in this type of business. Maybe, you worked as a repair technician somewhere, or maybe, you have the necessary training & education.

The business must try to resolve some issues in its current area of operation. For instance, there may not be any dedicated auto paint repair shop in the area and residents there need to travel far to get the job done. Thus, an auto paint repair shop there will solve the problem that auto owners face.

how to make a business plan for a auto repair shop

b) Business Model

Describe the business model that you will adopt in this sub-section. Here you must answer the 2 following questions:

  • Will you acquire an existing auto repair shop and remodel it, or will you start your shop from scratch?

What are the different types of auto repair shops?

For example, you may open any of the following types of auto repair shops:

  • Auto System Expert : In this model, you will specialize in the survey of a vehicle’s key systems such as breaks, gears, engine, etc. This model has a high revenue potential
  • Auto Repair Service Technicians : This is the most standard model where you will perform basic checks like electricals, oil fluid levels, etc. This model thrives on regular repeat customers since vehicle manufacturers recommend servicing every 10k to 12k miles or every 12 months. So, those who drive a lot will be more likely to pay regular visits
  • Auto Body Repair Service : In this business model, you will be dealing with vehicles involved in accidents and crashes. Though it is highly unlikely that you will get regular (or high volume) customers, the revenue earned per sale is very high. The model involves fixing broken parts, scratches, replacing damaged parts, etc.
  • Diagnostic Technicians : In this model, you will perform skilled checks for underlying vehicle issues. Such issues cannot be seen from the surface and hence, require a higher level of skill compared to regular service technicians
  • Auto Glass Repair : In this model, you will focus on repairing glass-related auto parts such as windows, windshields, etc. This model also has high-income potential for each order, but there will be times when you get customers who don’t want a complete replacement and require fixing only small cracks, scratches, etc.
  • Auto Repair Painters : In this model, you will engage in vehicle repainting and stylizing & visual customizations as per customer requirements. The revenue potential of this model is often tied to pollution levels. Thus, places with high environmental pollution will offer more customers looking for a fresh coat of paint

how to make a business plan for a auto repair shop

c) Products & Services

It is needless to say that the products and services you will offer will depend on the auto repair shop model you are selecting. It is very important to outline the products & services that you will offer so that the investors know exactly which offerings will attract more revenue for your business.

Here is a sample list of products & services that you may offer (but remember to list only those that are relevant to your business model):

  • Brake repair services
  • Tire rotation services
  • Tire change
  • Transmission services
  • Oil & filter change
  • Scheduled maintenance

Make sure that you are listing all services because generally auto repair services will not offer hundreds of products & services. They are quite limited and hence, listing them all is possible.

d) Pricing Strategy

In addition with the list of services you offer, provide an estimated price range for specific services. There should not be extreme differences between you and your competitors.

For example, you cannot charge twice as much as your competitors charge for a simple oil & filter change. If you try to do that, you will fail to attract customers.

Include a pricing list for the products and services that you will offer. You don’t need to provide precise numbers. Average pricing will do.

For example, you can provide an average price range for tire replacement because tire prices will vary depending on the manufacturer, model, type, country of origin, etc.

Offering a pricing list, or at least average prices, is important as it will allow investors to tie your pricing strategy with your financial projections later on (more on that below).

how to make a business plan for a auto repair shop

e) Legal Structure

Finally, your business overview section should specify the legal structure of your business.

Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Auto Repair Market Overview

A complete understanding of the market where you want to operate is important for the success of your business.

For example, if you want to open an auto glass repair shop in an area where most of the vehicle owners usually come for regular servicing, it might not be a viable business model for the area.

Similarly, if your auto repair shop is located in a low-income neighborhood where only a small percentage of the residents own private vehicles, your business may not succeed.

Break this section into three sub-sections that will include:

a) Market Trends

Understanding market trends will not be easy. It may require a lot of research, unless you already have strong experience (as a car mechanic for example) in the area.

The best way to perform your research will be to talk with your potential customers. Also, you can study competing auto repair shops to get an idea of the type of customers they receive, the services they provide, etc.

Some common questions you may ask the target audience include:

  • What type of vehicles do they drive or prefer to drive?
  • How many vehicles do they have in a family?
  • What type of auto repair services do they usually require?
  • How often do they go to a repair shop?

how to make a business plan for a auto repair shop

b) Competition analysis

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their products and services, marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same products & services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, physically visit your competitors without revealing your business intentions) and create a comparative table summarizing their product & service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

The table you will create will depend on what information you need and want to include based on your proposed business model.

c) SWOT Analysis

Try to provide a SWOT analysis. It must be crisp and highly focused. SWOT stands for Strength, Weakness, Opportunities, and Threats.

Here is a sample that you can use as a reference:

  • Strengths : 20 years of experience in car body repair and customization service, a team of highly specialized diagnostic technicians, etc.
  • Weaknesses : Startup cost, zero reputation, little marketing experience
  • Opportunities : High accident-prone zone, no car body repair shop within a 15-mile radius
  • Threats : Low-cost service providers

A clear understanding of your strengths and weakness along with opportunities and threats in the real market can help you to design your marketing strategy. It also helps potential investors to assess the risk and reward profile of your business.

how to make a business plan for a auto repair shop

d) Customers

This is the sub-section where you will provide a detailed analysis of your target audience. You will expand the data points your provided earlier in the Business Overview segment.

Some important points that you must include in your customer analysis include:

  • Age and gender distribution (you can get local demographic data from census.gov )
  • Driver gender ratio
  • Number of vehicles per family
  • Average monthly income and disposable income
  • Average bill size per visit
  • Average yearly spending on auto repair services
  • Vehicle type & brand preferences

You can add as many data points as required to validate your business decision. The idea here is to display your deep understanding of the target audience and the needs, preferences, and expectations. This knowledge can help you to tailor your products & services to attract new customers.

how to make a business plan for a auto repair shop

4. Sales & Marketing

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

  • What are your Unique Selling Points (USPs)?
  • What are the different marketing strategies you will use?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?
  • What introductory promos and offers do you intend to provide for attracting new customers?

What marketing channels do auto repair shops use?

A few marketing channels that auto repair shops typically use are:

  • Signage, billboards
  • PPC ads, Facebook ads, etc.
  • Print media
  • Loyalty programs
  • Online local listing (Google Business)
  • Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
  • Word of mouth

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

how to make a business plan for a auto repair shop

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • High quality service
  • Location : you store is closer to a busy road and/or to where your customers live
  • Partnerships with car manufacturer brands that refer you to their customers
  • Loyalty reward programs : X number of free tune-ups, alignments, and brake services per year

Your USPs will depend on your business model, competitor analysis, and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

  • The management team and their experience/track record
  • The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your auto repair shop business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the auto repair shop you are proposing. If they have specialized training and education (such as automotive technician training, collision & auto body repair training, etc.), add that information.

Organization Structure

Even if you haven’t already hired a service manager, mechanics, helpers, and other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

how to make a business plan for a auto repair shop

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your auto repair shop is an attractive investment.

There should be 3 sections to your financial plan section:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to purchase new repair equipment, renovate your facilities, etc.)
  • The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For an auto repair business, startup costs are all the expenses you incur before you open your auto repair shop and starting making sales. These expenses typically are:

  • The lease deposit for the commercial space you rent (if you don’t buy it)
  • The design and renovation of the existing facilities
  • The auto repair equipment

Assuming you do not buy the land and the building but decide to rent instead, typically startup costs are anywhere from $67,200 to $225,500 for a typical small (5,000 sq. ft.) auto repair shop.

c) Financial Projections

In addition to startup costs, you will now need to build a solid financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements , financial metrics, Key Performance Indicators , key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even ?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 20%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement ). This means you must forecast:

  • The number of customers over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

how to make a business plan for a auto repair shop

7. Funding Ask

This is the last section of your auto repair shop business plan. Now that we have explained what your auto repair business model is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any auto repair business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries? Or will it cover mostly the cost for the lease deposit and the machines and equipment?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our financial plan template for auto repair shops , you won’t have any issues answering these questions.

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Auto Repair Shop Business Plan

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Not everyone has the talent and technique to repair and restore cars, and if you have those skills, you might have thought of starting an auto repair business.

After all, most people prefer the autonomy having a business offers. But with autonomy comes responsibility. And to fulfill that you’ll need an auto repair business plan.

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample auto repair shop business plan  created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of  services-related business plans.

Industry Overview

In 2021, 162000 establishments had a combined annual revenue of $115 billion in the US auto repair industry.

The growth has mainly come from the increasing number of cars on the road. Also, the growing mileage consumption has played a huge role.

Opening up a car repair shop requires you to pay for construction costs, labor, and equipment.

As the auto repair business is a profitable one it attracts a lot of competition, and to stay ahead of it you’ll need skills and a proper business plan.

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how to make a business plan for a auto repair shop

Things to Consider Before Writing an Auto Repair Business Plan

Select what area of repairs you’ll work on.

Auto repairs shops take up a variety of jobs like repairing and painting car bodies, transforming old vehicles, or doing tire and mechanical repairs.

Pick a suitable location

An accessible location is a must for an auto repair business. Your location would also rely on the niche you’ll be working on. Tire repair services are usually on the road to make them accessible for emergencies.

While transformation services are mostly opened inside the city for easier pickup and drop.

Hire an efficient team

An auto repair business’s success relies heavily on the quality of services you provide. That helps you retain customers and get more. Hence, it is important to have a team that can provide quality services to your customers.

Formulate marketing strategies

Chalking out your business plan.

A business plan helps you leverage the best of your resources, and get the maximum out of your efforts.

A business plan also comes in handy if you need funding or loans for your business, as investors and banks prefer to see a business plan before they give the money.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample auto repair shop business plan template for you to get a good idea about how a perfect auto repair shop business plan should look like and what details you will need to include in your stunning business plan.

Auto Repair Shop Business Plan Outline

This is the standard auto repair shop business plan outline which will cover all important sections that you should include in your business plan.

  • Keys to Success
  • Mission Statement
  • Vision Statement
  • 3 Year profit forecast
  • Business Structure
  • Startup cost
  • Products and Services
  • Market Trends
  • Target Market
  • Market Segmentation
  • SWOT Analysis
  • Sales Strategy
  • Local Publications
  • Community Events/Organizations
  • Commuter Advertising
  • Customer Loyalty Programs
  • Direct Mail
  • Pricing Strategy
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Download a sample auto repair shop business plan

Need help writing your business plan from scratch? Here you go;  download our free auto repair shop business plan pdf  to start.

It’s a modern business plan template specifically designed for your auto repair shop business. Use the example business plan as a guide for writing your own.

After  getting started with Upmetrics , you can copy this sample auto repair shop business plan template into your business plan and modify the required information and download your auto repair shop business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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how to make a business plan for a auto repair shop

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Download Auto Repair Shop Business Plan

How to write an effective auto repair shop business plan

How to write an effective auto repair shop business plan

Key takeaways

  • An auto repair shop business plan will provide a blueprint for the launch of your business and increase your chances of success
  • Investors and lenders use business plans to determine whether your auto shop can reach profitability
  • There are seven main sections of an auto shop business plan that can help clarify the vision of your business

Want to start your own auto repair shop but don’t know where to start? Before jumping ahead and launching your new business on a whim, consider investing the extra time and effort in writing an auto repair shop business plan .

A business plan not only provides a roadmap to grow your business , but it actually increases the chances that your endeavor will succeed. Business owners who write a business plan generally grow 30% faster than businesses that don’t.

Roll up your sleeves and use this guide as your very own auto repair shop business plan template .

7 core sections of an auto repair shop business plan

Auto repair shop mechanic working underneath suspended vehicle

One of the main reasons for coming up with a business plan is to show readers—especially lenders and investors—that your business model is financially sound and can be profitable. It’s also a guide that helps you organize your thoughts, set goals, and clarify your vision. Essentially, it’s your business blueprint.

Beyond that, you can use a business plan to get feedback on your idea and determine whether it’s worth pursuing. Third parties, like other auto shop owners or financial advisors, can also read through your business plan and give you any suggestions or advice.

An auto repair shop business plan should include the following sections:

  • Executive summary
  • Business description
  • Market analysis
  • Services or product line
  • Operations and management
  • Marketing and sales
  • Financial factors

Each section serves a specific purpose and will help you plan your car repair business from every angle.

1. Executive summary

The executive summary kicks off your auto repair shop business plan and provides an overview of what’s to come. It should be clear, concise, and engaging enough to encourage people to read the rest of your business plan .

While this section is a culmination of all your research, keep it brief and to the point. Your executive summary should include the following:

  • Mission statement
  • Description of your business
  • The leadership team and number of employees
  • Auto repair services you offer
  • Where you’re doing business
  • Why you’ll succeed

Even though the executive summary is the first section of your business plan , it’s best to write it after you’ve completed all the other sections. This way, you have a thorough understanding of all aspects of your plan before you summarize it.

2. Business description

The business description is an overview of what your business actually does. It should cover:

  • What makes your company unique
  • Your competitive advantages
  • The customers you plan to serve

Describe the strengths of your business model and any competitive advantages your auto shop has. Do your mechanics have many years of experience and training that other local shops may not have? Were you able to secure prime real estate in a high-traffic area that can bring in more business?

You should also explain your target market and which customers will find value in your automotive services . For example, some auto shops may focus solely on everyday customers who want to service their personal vehicles. Other auto shops may aim to service commercial fleet vehicles for other businesses like electricians or landscaping companies.

3. Market analysis

It’s imperative to understand the state of the auto repair industry before you decide to launch your own small business . This section of the business plan provides proof to readers that there’s a healthy demand for your business to be successful.

First, determine if such a demand exists for a new automotive repair business in your area. You can come up with a general market analysis by tracking how many auto businesses are operating in your region and if they have an influx of customers.

The market analysis section should also include a competitive analysis. Find out what your competitors are doing right and opportunities for improvement. Scanning through Yelp reviews is an easy way to gauge the strengths and weaknesses of other car repair shops in your area. You can mimic tactics that are successful and capitalize on their areas of weakness.

Browse through our guide on how to do market research for helpful ideas on conducting market research for your business plan without having to spend a fortune.

4. Services or product line

Readers need to know how your business will make money. This section of your business plan is where you highlight the specific services and products that will help you reach profitability.

For example, maybe you want to offer general auto services, or perhaps you decide to specialize in certain areas—like transmission or engine repair , oil changes , or auto body repair. Be specific if you plan on serving a niche that sets you apart from competitors.

You can also include a list of different auto parts or products that you expect will generate revenue. For example, you can include price estimates of specific products, such as vehicle headlights, engine oil, or oil filters.

5. Operations and management

The operations and management section discusses what type of business structure you will form and who will be running your company.

Start by explaining the legal business entity you will be creating. You’ll have the option of forming a sole proprietorship , partnership, limited liability company (LLC) , or corporation. You can find more details in our guide to registering your business .

You can then lay out an organizational chart or company summary that shows the hierarchy of leadership in your car repair business. You’ll also want to highlight the years of experience each employee has and what specialties they bring to provide high-quality work and help your company succeed. If you’re the only employee, provide a professional overview of yourself and why you’re qualified to make your auto shop a success.

6. Marketing and sales

Readers will be interested in your auto repair marketing plan and how you expect to find new customers—specifically, which traditional and digital marketing channels you’ll use to draw up business.

When you start an auto mechanic shop, you need to advertise your business to not only attract new customers , but to also retain them and turn them into repeat buyers.

A professional-looking website will be a main area of focus. It will serve as the online face of your company and hub for incoming traffic from other digital marketing efforts, such as:

  • Email marketing
  • Referral program
  • Pay-per-click digital advertising
  • Social media marketing
  • Claiming your Yelp Business Page
  • Search engine optimization (SEO)
  • Content marketing

You can also use more traditional marketing ideas to advertise and grow your auto shop like business cards, referral incentives, or loyalty programs. In this part of your business plan , explain how you will use each of these different marketing channels to earn your first customers and get your business off the ground. For more ideas, see our guide on affordable auto repair marketing ideas .

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7. Financial factors

Those reading your auto repair shop business plan —especially lenders and investors—will need to know if your new business is financially viable. This section will include a financial plan and tangible evidence that your business is capable of succeeding.

Businesses that are already up and running can provide income statements, balance sheets , or cash flow statements. For those that haven’t launched yet, you can produce financial projections based on your startup costs and pricing —including equipment, tools, property rental, and monthly utilities. Once you have a detailed overview of your startup costs , you can set the pricing for your small business services .

This is also where you would include a funding request if you need one from an investor or lender. Explain the amount of funds you’re seeking and how you’ll allocate any investment dollars. On top of that, give an estimate of when you will reach profitability based on your financial projections.

Drive your auto repair business to success

You should aim to be as thorough as possible when writing your own business plan . If you put in the hard work upfront, your business will be better off in the long run.

Start going through each section of your plan and provide as much research and data to support your findings. Also, remember that it makes more sense to write your executive summary after completing all other sections.

Lastly, put yourself in an investor or lender’s shoes. What would you be looking for if you were thinking about investing in a small auto repair business? Make sure you can answer these six questions when starting your own business and you’ll be off to a great start.

The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.

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Auto Repair Business Plan

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:

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, 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.

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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 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:

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.

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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.  

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?

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

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Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide for Small Businesses

Designing an Auto Repair Shop Business Plan That Clarifies Your Vision

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., mapping out a business plan and investing in a shop management system like tekmetric will help you help more people in the long run. find out how in our step-by-step guide..

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

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 shop 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 technicians grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop. 

Plan for your shop's success at the very beginning.

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 repair 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 shop 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 auto 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 automotive repair 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 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 shop 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 repair shop 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 shop 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 auto 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. 

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What is an automotive service writer, lead your auto repair shop to sucess as a service advisor, how to sell your auto repair shop for the highest value, three tips for growing your career as a service writer, tekmetric ceo sunil patel talks mindset and growing your auto repair business.

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how to make a business plan for a auto repair shop

How to Write an Auto Repair Shop Business Plan

  • Last Updated: March 27, 2023
  • By: Greg Bouhl

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how to make a business plan for a auto repair shop

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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Create an effective auto repair shop business plan in 6 steps

Create an effective auto repair shop business plan in 6 steps

Kim Mercado

Starting a new auto repair business is exciting. It can be tempting to jump right in with both feet without taking the time to think through your plans for the business. 

Creating a business plan can help you clarify your goals and provide a roadmap for the steps you need to take to achieve them. If you need financing to cover start-up expenses, lenders will ask to see a copy of your business plan.

If this sounds overwhelming, it doesn’t have to be. Your auto repair shop business plan doesn’t need to be complicated or long. It just needs to guide you in the right direction.

Here are six steps to help you get started.

1. Compose an executive summary

Although the executive summary is the first section of your plan, sometimes it’s easier to write it last. It should be no more than a page long and provide an overview of your entire business. This includes whom you will serve, what services you will provide, your expected revenue and estimated expenses.

Keep it brief. You can go into greater detail about each of these elements in other sections of the plan.

2. Provide details about the company

This section should contain information about the founder(s) or owner(s), including their education, certifications and work experience — basically, anything that makes you and your partners (if applicable) qualified to start an auto repair shop.

This is also where you'll provide details about your business structure (e.g., sole proprietorship, LLC, partnership, etc.). Don't forget to include whether you plan to hire additional employees, and if so, how many and when.

3. Conduct a market analysis

When you’re starting a business, it's important to understand the competitive landscape. Present the results of your research about the current market, including what businesses, such as dealerships and independent mechanic workshops provide similar services in your area.

If there are gaps in available services, will your business help fill them? If so, how? If not, what opportunity is there for you in the market? Does the demand for automotive repair services exceed the current supply?

You’ll also want to provide information about the current market rate for the services you plan to offer and how your pricing will compare to other providers.

4. Decide what services you will offer

You’ll need to decide what type of auto repair shop you will open and the services you will offer. Will you provide general automotive maintenance and repair services, or will you specialize in a specific area, such as transmissions or engines?

Building a reputation as the go-to provider for a specific service may allow you to charge more, but it limits the pool of potential customers you can work with. What happens when someone needs their front end aligned or brakes replaced?

If you have plans to offer future services that you won't provide when you first open, include those in this section as well.

5. Create a sales and marketing plan

Keeping a steady flow of customers coming through the door is critical to maintaining a profitable business. The good news is there are lots of simple and inexpensive ways to market your business , including:

  • Holding a grand opening
  • Posting flyers in your community
  • Asking friends and family to spread the word
  • Running a special promotion when you first open

Decide which tactics you will use and document them in this section.

6. Prepare the financials

Starting an auto repair business requires a significant upfront investment. Having a detailed financial plan can help set you up for success. If you plan to apply for a loan to purchase the equipment and supplies you need to get started, lenders will be especially interested in this section. 

You can begin by listing the items you need to operate your business, including one-time and recurring expenses, such as:

  • Equipment. You can't work on cars without vehicle lifts, engine hoists, jacks, air compressors and more. Be sure to include all of the equipment you’ll need to get started.
  • Rent or lease. If you're not planning to set up your auto repair shop in your home garage, you'll need to pay for space where you can work on customer vehicles.
  • Licenses and permits. Most jurisdictions require businesses to have certain permits and fees to operate legally. Check with your city, county and state to find out the requirements in your area and include their fees in your budget.
  • Utilities. You should include utility payments in your monthly budget. 
  • Internet, phone and software. Don't forget about the phone, internet and other technology you need to run your business.

Once you've accounted for your potential expenses , estimate your revenue and create cash flow projections. Business plans typically include three to five years of financial projections, including when you expect to reach your "break-even" point.

How detailed does an auto repair shop business plan need to be?

Putting together a business plan will take a little time and effort, but you’re not writing the next great American novel. The level of detail you need to provide depends on how you plan to use it. 

A high-level overview is sufficient if you only plan to use it internally to help you stay on track and measure your progress. Just be sure to include all the items listed here. Taking the time to think over your plans can help clarify your goals.

If you’re going to apply for financing to cover your start-up costs, you'll need a more detailed plan to show lenders. In addition to reviewing your credit and other factors, lenders will use your auto repair shop business plan to help them make a lending decision.

Insurance considerations for auto repair businesses

Starting a business takes a lot of planning, hard work and dedication. If you're going to put the time and effort into building a business, it's important to protect it. Having the right insurance coverage can help you do that.

We know you wear many different hats as a business owner, which is why we make it easy and affordable to get the auto repair shop insurance you need to protect your business. 

Choose from general liability , commercial property , garagekeepers liability and faulty work coverage.

With our online application, you can see policy options, get a quote , purchase coverage and get your certificate of insurance — all in less than 10 minutes. So, you can get back to building your business.

Start with your instant quote today .

Create an effective auto repair shop business plan in 6 steps

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How to Create an Auto Repair Shop Business Plan

  • by Sonya Stinson Sonya Stinson is a New ... more
  • January 9, 2020
  • 4  Minute Read
  • Home > Blog > Planning for Growth > How to Create an Auto Repair Shop Business Plan

how to make a business plan for a auto repair shop

Jack’s Car Clinic opened three years ago on a shoestring budget, with some borrowed tools, personal savings and financial assistance from family members. Now word-of-mouth about the auto repair shop’s stellar service keeps a steady stream of customers driving into Jack’s garage. Jack sketched out a loose auto repair shop business plan in a notebook before launching the company, but never got around to formalizing it. Now the business is ready to grow, and a small business loan would help provide the resources Jack needs to expand. To prep for the loan application process, Jack needs to update his business plan to show lenders.

If you, like Jack, are an auto repair shop owner who is facing the task of writing a formal business plan for the first time — or updating an old plan — you may need help getting started.

Here’s a guide to help you develop an auto repair shop business plan that will get your new venture on track for greater success.

Why You Need a Business Plan

It probably doesn’t matter to Jack’s loyal customers that the car shop started up with a business plan that would fit on a repair order form. They only care that the shop’s reliable service keeps their vehicles in mint condition. But a potential lender may require more thorough paperwork to assess whether Jack’s business is a good investment.

If you’re thinking of applying for an auto repair business loan , you can’t afford to put off creating a business plan any longer. A solid business plan may help potential lenders feel confident that you know how to manage an auto repair shop and have a clear vision for how you want to use the loan funds to grow your business.

How to Structure Your Business Plan

There’s no single business plan template, but it’s probably wise to adhere to some of the more common practices and traditional lender expectations.

Business plan styles generally fall into one of two categories, according to the U.S. Small Business Administration : traditional or lean startup. The more common, traditional plans are longer and more detailed, while lean startup plans stick to brief summaries that typically fill a single page, according to the SBA.

Your choice may depend in part on the preferences of the lenders you plan to approach, keeping in mind that some lenders may not require you to have a formal business plan at all. The SBA notes that business owners seeking financing from traditional sources may want to go with a traditional business plan. Other considerations include the complexity of your business and how often you expect to update your plan.

Ultimately, your goal should be to write the auto repair shop business plan that best fits your company’s current needs and guides it to the next stage.

Lean and Traditional Business Plans

The SBA lists nine common elements each for lean startup and traditional business plans, with the former list taken from the well-known Business Model Canvas template, created by Swiss business theorist Alexander Osterwalder.

Sections of a Lean Startup Business Plan

  • Key partnerships – e.g., suppliers, manufacturers, subcontractors
  • Key activities – methods your business will use for competitive advantage
  • Key resources – e.g., staff, capital, intellectual property, networks, organizations
  • Value proposition – your company’s unique value in the market
  • Customer relationships – how customers will interact with your business
  • Customer segments – your target market(s)
  • Channels – ways you will communicate with customers
  • Cost structure – your key business costs and spending strategy
  • Revenue streams – how your business will make money

Sections of a Traditional Business Plan

  • Executive summary – overview of the purpose, leadership, staff and finances of your business
  • Company description – more detailed discussion of the mission, target market, structure, etc.
  • Market analysis – research-based report on industry trends and market competition
  • Organization and management – details about company’s legal structure, key team members
  • Service or product line – what you will sell and how these offerings will help your customers
  • Marketing and sales – your marketing strategy and selling process
  • Funding request – how much money you want to borrow and how you will use it
  • Financial projection – your five-year financial forecast, including budget, income, cash flow
  • Appendix – supporting documents like credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents and other contracts

Car mechanics review auto repair shop business plan

Tweaking the Template for Your Business

Your business plan may be similar to other auto repair companies, or any service business, for that matter. But there are still ways to tweak your plan to make it stand out from the crowd.

Let’s say you don’t have the time to develop a highly detailed, comprehensive plan and you think your business model can be explained in a simpler, shorter plan. For those reasons, you might start with a basic lean startup template and put a special emphasis on highlighting those elements that show your company’s best strengths. For example, you’ll want to highlight competitive edges — like hiring graduates of a top-rated automotive mechanics’ school or using a revolutionary enterprise software system for diagnosing mechanical problems — in the key activities section. Maybe you’ve developed a robust email communications and social media strategy you’d like to tout in the section describing your channels for customer engagement.

If you enjoy delving into the details — or you simply must buckle down and do it to qualify for the financing you seek — the longer traditional business plan format is probably the way to go. You might decide to put extra effort into your market analysis of the automotive repairs industry and sizing up your local competition. If recent trends in your own business have you rethinking your product and service line or your long-term financial projections, it makes sense to focus on those areas when you create a new or updated business plan.

Like Jack, you’ve learned a lot about how to manage an auto repair shop since you put up your sign and saw your first customer drive up. Incorporating those lessons into a vision and plan for growing your business is an essential step in acquiring the financing you need to fuel its success.

Tags: Auto Repair Shops , Managing your Cash Flow , Marketing for Small Business , Small Business Resources

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auto repair shop business plan

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. 

profit and loss sheet - auto repair shop business plan

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:

Cash notes projection - auto repair shop business plan

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.

Break even analysis - auto repair shop business plan

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. 

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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 and rims for a auto repair shop.

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.

wheels for a repair shop business plan.

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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  • Phone Number

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.

SWOT analysis for a repair shop.

8.0 Financial Plan

Capital requirements for a auto repair shop.

8.1 Five Year Pro Forma Cash Flow Statement

how to make a business plan for a auto repair shop

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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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

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.

Template only available to paying subscribers of our online business planning software . Get a 7-day trial for free.

Edit the auto repair shop business plan template online, or download it

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Download in Word format

Want to edit your plan on Word? Simply export the auto repair shop business plan template to MS Word (.dox) format.

Tailor it to your own project

Adapt this template to your personal project by changing the written part or the financial forecast in our online business plan software .

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.).

business plan template auto repair shop content table

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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.

French market

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.

Local market

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.

Competition

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.

Financial Highlights

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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Auto Repair Business Plan Sample

NOV.11, 2016

auto repair shop business plan

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

Auto Repair Business Plan - 3 Years Profit Forecast

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:

Auto Repair Business Plan - Startup Cost

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:

Auto Repair Business Plan - Marketing Segmentation

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.

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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.

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

Auto Repair Business Plan - Sales Monthly

6.4 Sales Yearly

Auto Repair Business Plan - Sales Yearly

6.5 Sales Forecast

Auto Repair Business Plan - Unit 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

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

8.2 brake-even analysis.

Auto Repair Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Auto Repair Business Plan - Profit Monthly

8.3.2 Profit Yearly

Auto Repair Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Auto Repair Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Auto Repair Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Auto Repair Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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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Financial Model, Business Plan and Dashboard Templates - FinModelsLab

How To Write a Business Plan for Auto Repair and Maintenance Shop in 9 Steps: Checklist

By henry sheykin, resources on auto repair and maintenance shop.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Welcome to our blog post on how to write a business plan for an auto repair and maintenance shop! Whether you're an experienced mechanic looking to start your own business or someone interested in the automotive industry, this guide will provide you with a step-by-step checklist to help you establish your on-demand auto repair and maintenance service.

Before delving into the details, let's take a look at some statistical information about the industry. The global automotive repair and maintenance services market is expected to reach a value of $810.30 billion by 2026 , growing at a compound annual growth rate of 4.1% from 2019 to 2026. This emphasizes the significant opportunities available in this thriving sector.

Now that we have a glimpse of the industry's potential, let's dive into the nine essential steps you need to take to write an effective business plan for your auto repair and maintenance shop. From conducting market research and identifying your target market to developing a pricing strategy and outlining your marketing strategies, this checklist will guide you through the process, ensuring you cover all the necessary aspects of a successful business plan.

So, without further ado, let's get started on turning your entrepreneurial dreams into a thriving auto repair and maintenance business that offers flexible scheduling and exceptional service. By following this step-by-step guide, you'll be well-equipped to navigate the challenges and take advantage of the opportunities the industry has to offer.

Research The Market And Industry Trends

Before starting a business, it is crucial to thoroughly research the market and industry trends of the auto repair and maintenance sector. This research provides insights into the current demand, customer preferences, and the competitive landscape. By understanding the market, you can make informed decisions and develop a successful business plan.

Begin by examining the overall market size and growth rate. Look for any regional variations or emerging trends that could impact your business. Identify the key players in the industry and analyze their business models, strengths, and weaknesses. This will help you understand the current market dynamics and potential opportunities for your on-demand auto repair and maintenance service.

Market research techniques such as surveys, interviews, and focus groups can provide valuable insights into customer needs and preferences. Use these methods to gather information about the demand for mobile mechanics and flexible scheduling in your target market.

Furthermore, industry trends such as advancements in technology, changes in consumer behavior, or regulatory updates can significantly impact your business. Stay updated with the latest news, reports, and industry publications to ensure you are aware of any shifts in the market.

Research Tips:

  • Utilize online resources such as industry websites, market research reports, and professional forums to gather information about the auto repair and maintenance industry.
  • Network with industry professionals and attend trade shows or conferences to gain insights and learn from experts in the field.
  • Explore local demographic and economic data to understand the potential customer base in your area.
  • Keep track of emerging technologies and innovative services in the auto repair and maintenance sector to identify opportunities for differentiation.

By conducting thorough market research and staying informed about industry trends, you will be equipped with the necessary knowledge to develop a successful business plan for your on-demand auto repair and maintenance service.

Identify Your Target Market and Customer Needs

Identifying your target market is crucial for the success of your auto repair and maintenance shop. Understanding who your ideal customers are and their specific needs will allow you to tailor your services and marketing efforts accordingly.

Start by researching the local community and analyzing demographic data such as age, income levels, and vehicle ownership. This information will help you determine the size and composition of your target market.

Once you have a clear understanding of your target market, it's essential to identify their needs and preferences when it comes to auto repair and maintenance services. Consider conducting surveys or talking to potential customers in order to gain insights into their pain points, expectations, and desired level of convenience.

Ask questions such as:

  • What are the most common issues they face with their vehicles?
  • Are they more interested in regular maintenance or urgent repair services?
  • Do they value convenience and flexibility in terms of scheduling and location?
  • Are there any specific services or features they would like to see in an auto repair and maintenance shop?
  • Consider offering specialized services or targeting a niche market to differentiate yourself from competitors. For example, you could focus on electric vehicle repairs or provide services specifically for commercial fleet owners.
  • Don't underestimate the power of customer reviews and referrals. Positive word-of-mouth recommendations can greatly influence potential customers' decisions.
  • Keep an eye on industry trends and technological advancements. Stay updated on new automotive technologies and eco-friendly practices to meet the evolving needs and preferences of your target market.

Conduct a Competitive Analysis

Conducting a competitive analysis is a crucial step in understanding the market landscape and identifying your unique selling proposition. This analysis allows you to identify your direct and indirect competitors, and evaluate their strengths and weaknesses. By conducting a thorough competitive analysis, you can gain insights that will help you position your auto repair and maintenance shop effectively.

Start by listing your direct competitors – those businesses that offer similar services in your target location. Research their pricing, service offerings, customer reviews, and reputation. Identify what sets them apart from the competition and determine areas where your business can differentiate itself.

Next, look into indirect competitors – businesses that may not offer the same services but can potentially attract your target market. For example, car dealerships or chain auto repair shops could be indirect competitors. Understand their unique value propositions and how they cater to their customers' needs.

It is essential to assess the strengths and weaknesses of your competitors. Determine what they excel at and what areas they may be lacking. This information will help you identify opportunities and develop strategies to provide a better customer experience.

  • Identify your direct and indirect competitors. List businesses that offer similar services as well as those that may indirectly compete with your auto repair and maintenance shop.
  • Analyze their offerings and pricing. Look into their pricing strategy, service packages, and any additional perks they provide to customers.
  • Consider their reputation and customer reviews. Check online platforms and review sites to gauge their customer satisfaction level and identify areas for improvement.
  • Assess their strengths and weaknesses. Evaluate what they do well and where they may fall short, allowing you to identify areas where your business can excel.

Tips for conducting a competitive analysis:

  • Utilize online resources: The internet provides a wealth of information on competing businesses. Use search engines, review platforms, and social media to gather insights.
  • Visit in-person: Get a first-hand experience by visiting your direct competitors' physical locations. Observe their customer service, facilities, and overall operations.
  • Talk to customers: Conduct surveys or interviews with existing customers of your competitors. This will give you valuable insights into their preferences and pain points.

Determine Your Business Structure And Obtain Necessary Licenses And Permits.

When starting an auto repair and maintenance shop, it is crucial to determine the appropriate business structure for your venture. Consider whether you want to operate as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has its own advantages and disadvantages, so it's important to research and choose the best fit for your business.

Once you have determined your business structure, you will need to obtain the necessary licenses and permits to legally operate your auto repair and maintenance shop. These requirements vary depending on your location and the specific services you plan to offer. It is essential to thoroughly research the licensing requirements and regulatory obligations in your area to ensure compliance.

  • Consult with an attorney or accountant who specializes in small business to help you navigate the legal and licensing process.
  • Check with local government agencies or your state's department of motor vehicles to understand the specific permits required for your shop.
  • Consider joining industry associations or networks, as they often provide resources and guidance on licensing and permits.

Obtaining the necessary licenses and permits is not only important from a legal standpoint, but it also helps establish credibility and instill confidence in your customers. Displaying the appropriate permits and licenses prominently in your shop can reassure customers that you are a legitimate and trustworthy business.

Remember to regularly review and renew your licenses and permits to ensure ongoing compliance with applicable laws and regulations. Failing to do so may result in fines, penalties, or even the suspension of your business operations.

Develop A Pricing Strategy And Estimate Start-Up Costs

Developing a pricing strategy and estimating start-up costs are crucial steps in creating a successful auto repair and maintenance shop. These factors will determine the profitability and sustainability of your business. Here are some key considerations:

  • Research the market: Begin by analyzing the current market rates for auto repair and maintenance services in your area. Take into account the average prices charged by your competitors and evaluate the quality of their services. This will help you position your pricing strategy competitively.
  • Evaluate your costs: Calculate the costs associated with equipment, tools, lease or purchase of a mobile service vehicle, inventory, insurance, staff salaries, and any additional expenses unique to your business. Be sure to include both initial start-up costs and ongoing operational costs.
  • Consider your target market: Understand the demographics and preferences of your target market. Determine if you will cater to a specific niche or offer a broader range of services. Tailor your pricing strategy to attract and retain your desired customer base.
  • Set your pricing structure: Decide whether you will charge customers based on a flat rate or an hourly rate. Consider offering different pricing tiers for various services or packages to cater to different customer needs. Ensure that your pricing structure provides a fair return on investment while remaining competitive.
  • Consider offering discounted rates for loyal customers or recurring maintenance packages.
  • Be transparent about your pricing to build trust with your customers. Clearly communicate the costs associated with each service and any additional fees.
  • Regularly review and adjust your pricing strategy to stay competitive and profitable in the evolving market.

Estimating start-up costs requires a detailed understanding of the necessary investments to launch your business. Take the time to research and consider all potential expenses to create an accurate estimate.

Create A Comprehensive Financial Forecast

Creating a comprehensive financial forecast is crucial for the success of any business, including an auto repair and maintenance shop. It allows you to estimate your expected revenue, expenses, and profit over a specific period of time, usually for the first three to five years of your business.

To start, gather all the necessary financial information such as your start-up costs, projected sales, costs of goods sold, operating expenses, and financing options. This will enable you to accurately assess the financial feasibility of your business and make informed decisions.

Here are some key components to include in your financial forecast:

  • Revenue projections: Estimate your monthly and annual revenue based on your pricing strategy and target market.
  • Cost of goods sold: Determine the cost of parts, equipment, and supplies required for each repair and maintenance job.
  • Operating expenses: Include fixed costs (e.g., rent, utilities, insurance) and variable costs (e.g., payroll, marketing, vehicle maintenance).
  • Start-up costs: Calculate the initial expenses for equipment, inventory, leasehold improvements, and any other necessary capital investments.
  • Break-even analysis: Determine the point at which your total revenue equals your total expenses, helping you understand how much you need to sell to cover costs.

Tips for Creating a Comprehensive Financial Forecast:

  • Use realistic assumptions: Base your financial projections on thorough market research and industry benchmarks to ensure accuracy.
  • Factor in seasonality: Consider any seasonal fluctuations in demand for auto repair and maintenance services and adjust your projections accordingly.
  • Keep track of key metrics: Monitor key financial indicators such as gross profit margin, break-even point, and cash flow to evaluate your business's performance.
  • Consider multiple scenarios: Develop a best-case, worst-case, and most likely scenario to assess the potential impact of various market conditions on your financials.

Remember, a comprehensive financial forecast serves as a roadmap for your business, helping you analyze the feasibility of your venture and make informed strategic decisions. Regularly review and update your forecast based on actual performance to stay on track and adapt to market changes.

Write A Mission Statement And Define Your Business Goals.

When writing a mission statement for your auto repair and maintenance shop, it is important to clearly communicate the purpose and values of your business. Your mission statement should convey your commitment to providing top-notch service, meeting customer needs, and creating a positive impact in the automotive industry. Define your business goals by setting clear objectives that will guide your decision-making and help you measure your success.

Tips for writing a compelling mission statement:

  • Keep it concise and easy to understand.
  • Highlight what sets your shop apart from competitors.
  • Focus on customer satisfaction and value.
  • Align your mission statement with your company culture and values.
  • Consider involving your team in the process to ensure a collective vision.

Begin by clearly articulating the primary purpose of your auto repair and maintenance shop. What problem do you aim to solve? How do you plan to provide a solution? Highlight the unique qualities or services that will differentiate your business from others in the market.

Next, identify your target market and what specific needs or pain points they have when it comes to auto repair and maintenance. This will help you determine the direction and focus of your business.

Your mission statement should also address the long-term goals you have for your auto repair and maintenance shop. Are you looking to expand to multiple locations? Do you want to become the go-to service provider in your area? Be clear and specific about what you hope to achieve.

Remember to revisit and revise your mission statement regularly as your business evolves. As you gain more experience and insights, you may need to adapt your mission statement to reflect any changes in direction or strategy. Continually assessing and refining your mission statement will help keep your business on track to achieve its goals.

Outline Your Marketing And Advertising Strategies.

Marketing and advertising are crucial aspects of promoting your auto repair and maintenance shop and attracting customers. It's important to develop a comprehensive plan that targets your specific audience and sets you apart from competitors.

Firstly, identify the most effective marketing channels to reach your target market. This may include online platforms, such as social media, search engine optimization (SEO), and online directories. Offline strategies, such as local newspaper advertisements, flyers, and radio spots, can also be effective in reaching a local audience.

Utilize your website and online presence to showcase your services, expertise, and customer testimonials. Consider investing in professional photography and videography to visually highlight your shop's capabilities. Make sure your website is mobile-friendly, as many potential customers will be accessing it from their smartphones.

  • Create engaging content on your blog or social media accounts that educates and informs customers about preventive maintenance, car care tips, and industry trends.
  • Offer incentives for referrals and online reviews to encourage satisfied customers to spread the word about your business.
  • Consider partnering with local businesses, such as car dealerships or rental agencies, to cross-promote your services.
  • Utilize customer relationship management (CRM) software to track customer interactions, send targeted emails, and offer personalized promotions.

In addition to digital marketing strategies, explore traditional advertising methods that can reach a wider audience. This may include print advertisements in local newspapers or magazines, radio spots, and billboards. Don't forget to include your contact information and website address in all marketing materials to make it easy for potential customers to reach you.

  • Sponsor local community events or charities to increase brand visibility and show your commitment to the local area.
  • Host workshops or webinars to educate customers on basic car maintenance and build trust and credibility.
  • Collect customer emails and send regular newsletters with special promotions, seasonal tips, and updates on new services.
  • Consider offering discounts or special packages for first-time customers to attract new business.

Lastly, track the effectiveness of your marketing and advertising efforts by analyzing metrics such as website traffic, social media engagement, and customer feedback. This will allow you to make data-driven decisions and refine your strategies to maximize results.

By outlining a comprehensive marketing and advertising strategy, you can effectively promote your auto repair and maintenance shop, build brand awareness, and attract a steady stream of customers.

Build A Team And Establish Key Partnerships.

Building a strong team and forging key partnerships are crucial for the success of your on-demand auto repair and maintenance service. These collaborations and partnerships will help you expand your reach and tap into new customer segments. Here are some important steps to consider when building your team and establishing partnerships.

  • Identify the skills and expertise you need: Determine the key roles and positions required to run your auto repair and maintenance shop efficiently. Look for individuals with experience in automotive repair, customer service, and business management. Seek out candidates who are not only skilled but also share your passion for delivering exceptional service to customers.
  • Recruit team members: Advertise job openings and conduct interviews to attract qualified candidates who align with your company values and goals. Emphasize the importance of professionalism, punctuality, and strong work ethic while evaluating potential team members. Building a team that works well together and strives towards a common goal is essential for a successful auto repair and maintenance shop.
  • Foster a positive work culture: Create a supportive and collaborative work environment where team members feel valued and motivated to perform their best. Encourage open communication, provide opportunities for skill development and growth, and recognize and reward hard work and achievements. A positive work culture will not only enhance productivity but also contribute to customer satisfaction.
  • Establish partnerships: Seek out partnerships with suppliers of auto parts, equipment, and tools to ensure a reliable supply chain. Look for vendors who offer high-quality products at competitive prices to maximize your profitability. Additionally, consider partnering with other local businesses, such as towing services or car rental companies, to provide additional convenience and value-added services to your customers.
  • Cultivate strategic relationships: Build strategic alliances with industry associations, local mechanics, and other service providers who can refer customers to your auto repair and maintenance shop. Attend networking events and engage in community outreach activities to establish a strong presence and gain the trust of potential partners. These partnerships can help you expand your customer base and increase brand awareness.
  • Regularly assess your team's performance and provide opportunities for training and development to enhance their skills and knowledge.
  • Maintain open lines of communication with your partners to ensure smooth collaboration and address any issues or concerns promptly.
  • Consider offering incentives or rewards to encourage teamwork and foster loyalty among your team members.

In conclusion, writing a business plan for an auto repair and maintenance shop requires careful analysis of the market, understanding customer needs, and developing a solid financial forecast.

By conducting thorough research, identifying target customers, and analyzing competition, you can position your on-demand auto repair and maintenance service to stand out in the market.

Obtaining the necessary licenses and permits and determining your business structure are vital steps to ensure legal compliance and operational efficiency.

Developing a pricing strategy and estimating start-up costs will help you set competitive prices and allocate resources effectively.

Building a team and establishing key partnerships will contribute to the success and sustainability of your auto repair and maintenance shop.

Ultimately, a well-crafted business plan will serve as a roadmap for your auto repair and maintenance shop, guiding you towards achieving your business goals and positioning your service as a reliable and convenient option for customers.

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how to make a business plan for a auto repair shop

How to create a marketing plan for an auto repair shop

The automotive service industry is a multi-billion dollar market in the United States alone. There are thousands of independent shops and large chains competing for a piece of the pie. 

As an auto mechanic and business owner, you might think the only thing necessary for your auto repair business to succeed is to have a great business plan. But have you ever thought about how marketing plans can influence your small business and help you amplify what you’re already doing well?

Marketing plans are an essential part of the success of any small business and an often overlooked part of creating a small business plan. 

In this blog post, we will go over the basics of how to create a marketing plan for your auto repair shop so that you can scale your business and stand out from the competition. 

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What goes into a marketing plan.

Before we can dive into marketing ideas for your shop, it’s essential to understand what goes into a marketing plan. 

They are made up of several main components: the market, objectives, and action steps. There isn’t a single, perfect way to execute a marketing strategy; instead, it’s more of a learning experiment.

However, there are a few key things to consider when creating a marketing plan for an auto repair shop . The first step is understanding your business, its goals, and what makes your business unique. 

Start by answering some questions

Many small businesses make the mistake of trying to drive business without understanding your audience’s needs. 

Understanding this and involving this data in all of your marketing decisions will help your business better deliver what your customers are looking for, and in return, allow you to see a greater return on investment (ROI) for your marketing efforts.

Start by asking yourself these simple questions: 

  • What services do we offer? 
  • Who is our target market? 
  • What do we have to provide them with?
  • How will we ensure excellent customer service?

Once you understand what your customers need from you, you can start developing marketing strategies that resonate with customers. 

For example, your auto repair services may include routine oil changes. If your customers need one every 3,000 miles, you might initiate a direct mail campaign sending oil change coupons to those current customers who are due for an oil change. 

This is just one way to keep a loyal customer base that can eventually provide thoughtful testimonials and ultimately participate in a referral program by recommending their family and friends for your service. 

Set your business goals

Drawing a line on what you want to achieve is the best way to begin charting the path forward for your business. 

If you don’t have a goal to reach, how will you know whether or not you’ve succeeded? How will you know where you need to improve to attract more business? Deciding on your business goals is an essential part of your marketing plan. 

For example, if one of your goals is to increase sales and create more long-term, happy customers, you might include tactics in your marketing plan to incentivize first-time customers to keep going to your shop.

Set your budget

Auto repair shop marketing is just one part of your business. It can’t use up all of your available capital and, at the same time, shouldn’t be ignored. 

Setting aside a budget for your efforts will help you understand how much you can invest and give you a better idea of how much ROI you can expect in return.

Take a benchmark measurement

If this is your first time running a marketing plan, remember to take a benchmark measurement of where you’re at today, so you have something to measure your marketing plan against when it’s time to evaluate how well your plan worked.

For example, if your marketing plan goal is to increase the number of new customers obtained in a month by 10%, it would be helpful to know how many customers, on average, you currently gain in a month.

How to market an auto repair shop

Creating a marketing plan for an auto repair shop can be difficult because of the many different ways to market the business. However, all marketing plans, regardless of the niche, need the same elements discussed in the previous section.

Once you’ve gone through those steps, you can get more specific on which strategies will serve your customers best. Even though you are not a marketer, you know your clients and services better than anyone. 

Here are some tips on how you can put that knowledge to work for your business. 

Create a website

First, it’s crucial to have a place where customers can find you. While being present via business listing sites like Yelp is essential, having your own website can prove very beneficial in attracting more clients. 

It’s also essential to make sure your business page or website is checked for search engine optimization (SEO) so potential customers can find you when searching on the web. 

Essentially, search engine optimization just means incorporating those key terms that customers are searching for. 

An example might be including “local auto repair shop in San Francisco” on your home page, as it’s likely most of your customers are searching the web and using a similar phrase.

Having an online presence to help customers find you is just one of the many website benefits you can take advantage of.

Use Word-of-Mouth

This has to be one of the oldest marketing tactics in the book and one you’re sure to be familiar with. 

Mechanics can attract new customers by providing quality service and excellent customer care for existing customers. 

In turn, you can ask that your clients let others know about their experience by referring their friends and family or by leaving a positive review for your business on Google, Yelp, or other business listing site.

Advertising is another one of the most common ways to enhance auto repair marketing . There are many different types of advertising, and each has its advantages and disadvantages. 

Some common forms of advertising include using the ads manager for social media sites like Facebook or running Google ads. 

While word-of-mouth is excellent for your current clients, paid ads can help you reach a broader audience that might not know your business exists yet.

Email marketing

Email marketing is another way to stay in touch with your existing customers. 

When people become customers, you can reach out to share upcoming promotions and nurture those relationships by collecting email addresses.

Furthermore, staying in touch with your existing customers ensures that your business remains top of mind for them and that they return to your auto shop for future service needs.

Social media marketing

Have you ever thought of using social media marketing for your auto repair shop? This marketing strategy can help you establish a greater online presence than your website alone because it puts your business where people are already hanging out online.

Social media platforms like Facebook, Twitter, and Instagram are a great way to connect with your customers and increase brand awareness for your business to local customers that might need your services. 

You can share photos of your work, post updates about new services or products, and answer customer questions. It’s essential to be active on social media and to have a process for quickly responding to customers that reach out to you via social media.

Market your business with broadly 

Auto repair shop owners can market their businesses effectively and increase sales by following tips we’ve laid out in today’s post. 

Creating a marketing plan and measuring its success is essential for any small business and is crucial for companies that rely on word-of-mouth referrals. By implementing a solid marketing plan, you can retain more of your existing clients and attract new customers to grow the business.

At Broadly, we help small businesses like auto repair shops to create and scale their online marketing and lead generation efforts. 

We can also help you better communicate with your team and your customers, revamp your website, and more.

Want to see how Broadly can help you grow your auto repair business?

See what Broadly can do for your business in just 30 days

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Car Repair Shop Business Plan Template & Guidebook

Are you a passionate car enthusiast looking to start your own car repair shop? It is an exciting endeavor, but it requires a great deal of preparation and planning. Our #1 Car Repair Shop Business Plan Template & Guidebook is here to help make the journey easier. This comprehensive document will provide you with everything you need to know in order to create a successful business plan, from researching the market and developing marketing strategies, to putting together a budget and understanding the legal implications of setting up shop. Get ready to hit the road with confidence, and create your own successful car repair business!

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Car Repair Shop Business [11+ Steps]

How to Write a Car Repair Shop Business Plan in 7 Steps:

1. describe the purpose of your car repair shop business..

The first step to writing your business plan is to describe the purpose of your car repair shop business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a car repair shop business:

The mission of ABC Car Repair Shop is to provide exceptional quality and affordable car repair services to our customers, while maintaining a safe and reliable work environment and fostering a culture of honesty and integrity.

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2. Products & Services Offered by Your Car Repair Shop Business.

The next step is to outline your products and services for your car repair shop business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your car repair shop business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your car repair shop business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your car repair shop business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

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how to make a business plan for a auto repair shop

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a car repair shop business?

Equipment needed to run a Car Repair Shop business may include:

  • Vehicle diagnostic tools
  • Tire changing and balancing equipment
  • Brake testing equipment
  • Wheel alignment system
  • Windshield repair machines
  • Lifts for cars and trucks
  • Welders and torches for body work
  • Air compressors and other service tools

Supplies needed to run a Car Repair Shop business may include:

  • Replacement parts, fluids, and filters.
  • Oil collection tanks.

A business owner may also need permits to legally operate a Car Repair Shop, such as:

  • Zoning permits.
  • Occupational permits. Environmental permits.

5. Management & Organization of Your Car Repair Shop Business.

The second part of your car repair shop business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your car repair shop business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Car Repair Shop Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a car repair shop business varies based on many different variables, but below are a few different types of startup costs for a car repair shop business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your car repair shop business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your car repair shop business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your car repair shop business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

how to make a business plan for a auto repair shop

Frequently Asked Questions About Car Repair Shop Business Plans:

Why do you need a business plan for a car repair shop business.

A business plan is an essential tool for any business, but is especially important in the car repair industry. A business plan helps to define your goals and objectives, assess your market, and develop strategies to stay competitive in the industry. It also helps you to understand the costs associated with your car repair shop and can help attract potential investors or lenders. Having a well-crafted business plan can be the difference between success and failure in this industry.

Who should you ask for help with your car repair shop business plan?

You should ask a business consultant, a bank representative, and/or a mentor with experience in the automotive industry for help with your car repair shop business plan.

Can you write a car repair shop business plan yourself?

Yes, you can write a car repair shop business plan yourself. You may want to start by researching the industry, gathering information about potential suppliers and partners, identifying a target market, developing a marketing strategy, calculating estimated costs, and projecting expected profits. For a more detailed plan, you may want to consider consulting with a professional business plan writer or taking a business planning course.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Auto Repair Shop Business Plan

Start your own auto repair shop business plan

F and R Auto Repair

F & R Auto offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business to customer ties.

F & R Auto will hire trained and certified mechanics who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.

3.1 Service Description

F & R Auto provides a wide range of auto repair services. These include:

  • Scheduled maintenance.
  • Wheel alignments, tires and rims.
  • Brake repair.
  • Comprehensive engine repair.
  • Transmission.

Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.

3.2 Competitive Comparison

The auto repair industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.

 Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies. These companies are more consolidated that the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to F & R’s industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible.

 In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.

 The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

3.3 Technology

The technological revolution in computers has enhanced our abilities to diagnose and repair our clients vehicles. F &R will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.

3.4 Future Services

The company does not have any plans to create further services at this time.

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how to make a business plan for a auto repair shop

Savannah non-profit helps U.S. Army veteran get new car

SAVANNAH, Ga. (WTOC) - It was an unforgettable day for one Army veteran in need of a car. Geico and a local automotive repair shop came together to gift him one.

“Excitement. Happiness. Whether or not if I want to cry or not. It’s just, it’s all over the place. I’m just ecstatic,” said Brett Mymo, a U.S. Army veteran.

Mymo, a car-less veteran typically has to rely on public transportation to get from point A to point B. Wednesday, that all changed as Geico teamed up with Savannah’s Caliber Collision Auto Body repair shop to give him this car.

“I’ll be able to go wherever I want whenever I want, when I want to go. If I’m off for a weekend and I want to be able to go spend it on the beach and go and look at the pier and the sunrise to come up, I can do it,” said Mymo.

Caliber Collision’s employees jumped on the opportunity to help the veteran out. They did a full refurbishing of his car.

Some say the special circumstances raised spirits during the repair itself.

“It means the world to be a part of something like this because we know that we’re making a difference in somebody’s life,” said Dustin Eckhart, the general manager of Caliber Collison.

This was all made possible because of My Veteran’s Place Savannah. The non-profit works with auto repair shops citywide to find deserving recipients of the vehicles.

The organization’s CEO says Mymo, who still suffers from service-related injuries, was the ideal candidate to receive the gift.

“Without a doubt, he was the very first one that came up because we knew he was working so that means he was able to pay any type of insurance or anything that comes with the vehicle and that he was going to make sure that he does everything right to maintain this vehicle,” said Faye Prescott, the CEO of My Veteran’s Place Savannah.

Wednesday’s gift surely was a special day for Mymo.

“It makes me feel that people out there care. And, you know, they’re going to try their best to do anything they can for you. And this right here... This is absolutely wonderful. I mean... Like I was telling everybody, I can’t wait to get it out on the road,” said Mymo.

And when it came time for Mymo to test out his new ride, a honk of approval as he rode off into the sunset.

Copyright 2023 WTOC. All rights reserved.

how to make a business plan for a auto repair shop

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how to make a business plan for a auto repair shop

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  1. Auto Body Repair Business Plan Template Sample Pages

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  2. Business Plan Examples

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  3. automotive repair business plan

    how to make a business plan for a auto repair shop

  4. The Business Plan for Your Auto Repair Shop

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  5. 39+ Sample Business Plan For Auto Repair Shop Pdf PNG

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  6. House Plan Automotive Shop Floor Unique Plans Craftsman Bungalow Auto Notes Bays For Work One

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COMMENTS

  1. Online Business Plan

    Create, Download, & Print A Business Plan - Simple Platform - Try Free Today! Avoid Errors With Your Business Plan. Over 1M Forms Created - Try 100% Free!

  2. Online Business Plan (Free)

    Create, Download, & Print A Business Plan - Simple Platform - Try Free Today! Avoid Errors With Your Business Plan. Over 1M Forms Created - Try 100% Free!

  3. How to Write an Auto Repair Business Plan: Complete Guide

    💰 Startup costs 📊 Financial plan 🔎 KPIs 📈 Profits & Break-even Whether you're looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your auto repair shop, you will need to prepare a solid business plan.

  4. Auto Repair Shop Business Plan: Guide & Template (2023)

    Hire an efficient team An auto repair business's success relies heavily on the quality of services you provide. That helps you retain customers and get more. Hence, it is important to have a team that can provide quality services to your customers.

  5. How to write a winning auto repair shop business plan

    An auto repair shop business plan should include the following sections: Executive summary Business description Market analysis Services or product line Operations and management Marketing and sales Financial factors Each section serves a specific purpose and will help you plan your car repair business from every angle. 1. Executive summary

  6. Auto Repair Business Plan (2023)

    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.

  7. How to write a stellar business plan for an auto repair shop

    On the menu: Why do you need a business plan? What type of auto repair shop should I open? What do you need to create your auto repair shop business plan? What is the financial forecast for an auto repair shop? What does the written part of an auto repair shop business plan look like? What tool should I use to write my business plan?

  8. Auto Repair Business Plan Template [Updated 2023]

    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.

  9. Crafting a Winning Auto Repair Shop Business Plan: 9 ...

    These steps include conducting market research, identifying your target market, analyzing the competition, determining startup costs, developing a pricing strategy, creating a marketing plan, defining the legal structure of your business, obtaining necessary licenses and permits, and securing funding.

  10. How to Develop an Auto Repair Shop Business Plan

    4. Describe Your Products and Services. In the products and services section of your auto repair shop 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.

  11. How to Write an Auto Repair Shop Business Plan

    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.

  12. Create an effective auto repair shop business plan in 6 steps

    It just needs to guide you in the right direction. Here are six steps to help you get started. 1. Compose an executive summary. Although the executive summary is the first section of your plan, sometimes it's easier to write it last. It should be no more than a page long and provide an overview of your entire business.

  13. How to Create an Auto Repair Shop Business Plan

    Key activities - methods your business will use for competitive advantage. Key resources - e.g., staff, capital, intellectual property, networks, organizations. Value proposition - your company's unique value in the market. Customer relationships - how customers will interact with your business. Cost structure - your key business ...

  14. Complete Guide on Auto Repair Shop Business Plan (2023)

    Creating an auto repair shop business plan: Understanding the Basics Company Description: Market Analysis Marketing and Sales Strategies Organization and Management Product or Service Line Financial Projections Risk Assessment and Contingency Planning Conclusion Success in the auto repair business starts with a good plan.

  15. Auto Repair Shop Business Plan

    Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan 7.3 Projected Cash Flow The following table and chart are the projected cash flow figures for F & R. Need actual charts?

  16. Auto Repair Shop Business Plan

    1.1 Objectives The objectives over the next three years for F & R Auto Repair are the following: Sales revenues increase steadily through year three. Institute a program of superior customer service through rigorous evaluation of service experience. Hire three more mechanics. Need actual charts?

  17. Auto Repair Shop Business Plan Sample

    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.

  18. Business plan template for an auto repair shop

    Simply export the auto repair shop business plan template to MS Word (.dox) format. Tailor it to your own project Adapt this template to your personal project by changing the written part or the financial forecast in our online business plan software. Sign up Template only available to paying subscribers of our online business planning software.

  19. The #1 Auto Repair Business Plan Template & Guidebook

    The first step to writing your business plan is to describe the purpose of your auto repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers' problems.

  20. Auto Repair Business Plan Sample

    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.

  21. Free Auto Repair Shop Business Plan + Example

    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.

  22. Write Business Plan for Auto Repair Shop in 9 Steps

    In conclusion, writing a business plan for an auto repair and maintenance shop requires careful analysis of the market, understanding customer needs, and developing a solid financial forecast. By conducting thorough research, identifying target customers, and analyzing competition, you can position your on-demand auto repair and maintenance ...

  23. How to create a marketing plan for an auto repair shop

    February 16, 2022 LinkedIn How to create a marketing plan for an auto repair shop The automotive service industry is a multi-billion dollar market in the United States alone. There are thousands of independent shops and large chains competing for a piece of the pie.

  24. The #1 Car Repair Shop Business Plan Template & Guidebook

    How to Write a Car Repair Shop Business Plan in 7 Steps: 1. Describe the Purpose of Your Car Repair Shop Business. The first step to writing your business plan is to describe the purpose of your car repair shop business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  25. Auto Repair Shop Business Plan

    3.1 Service Description. F & R Auto provides a wide range of auto repair services. These include: Scheduled maintenance. Wheel alignments, tires and rims. Brake repair. Comprehensive engine repair. Transmission. Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.

  26. Savannah non-profit helps U.S. Army veteran get new car

    This was all made possible because of My Veteran's Place Savannah. The non-profit works with auto repair shops citywide to find deserving recipients of the vehicles. The organization's CEO says Mymo, who still suffers from service-related injuries, was the ideal candidate to receive the gift. "Without a doubt, he was the very first one ...