Auto repair business is one of the most profitable business ideas and is considered to be a good money making venture.
Factors to be considered before starting an auto-repairing business
1.Business plan :
The most important task is to prepare a business plan. A good business plan will have all the details required to start a business from selecting the location, the finance required, number of employees to be hired etc. A business without a business plan is meant to fail.
The next step for starting a repair shop is determining the place to set up the business. A research should be done before selecting the location to start an auto-repairing business. If you select a location having cheap rent, but the frequency of automobiles coming in that location is less, then it would be hard to make money from the auto-repairing business. So, the location of auto-repairing shop must in high traffic area. Another aspect to be considered while selecting a location is the distance between two auto-repairing shops. If the auto-repairing shop is started next to an established repairing shop, then it may prove to be a disadvantage.. The location must be accessible to the customers and must have necessary facilities such as waiting zone and washroom.
You might want to specialize in a particular area to gain more attention to your business.
- Collision Repair
- Medium – Heavy Truck
- School Bus
- Transit Bus
- Truck Equipment
You can also specialize in repairs for specific car manufacturers or types of repair. If you specialize, you might earn a reputation as the best garage for brakes, but you lost out on a lot of other business. Before you open up, you need to know the scope of the services you plan to offer. If you want to specialize, you’ll need to do some serious market research to make sure there is enough demand to support your new shop
A good auto repair businessman always aims to organize the garage which fits the business needs. A good auto repair shop should have an organized room for the spare parts in which all the tools and supplies are arranged in orderly manner. The tools used in auto-repairing service can be cheap as well as expensive. But, budget should always be concerned. Wasting money on unnecessary and extra things is not a good idea for the business.
Before you spend a dime opening your shop, you need to know the total projected cost to get up and running. If you don’t, you might run out of funds before gaining your first customer. While it is impossible to project certain costs ahead of time, the most common and expensive line items are easily predicted.The total cost is mainly around the equipment, insurance, and rent. Buying a building and making alterations can significantly change that number, depending on construction costs. Choosing to buy an existing auto shop can also affect the bottom line.
6.Type of service :
While most garages offer general repairs and services, you can increase business by offering niche repairs which other auto body shops may not provide. Some examples of specialized repairs and services include repainting, detailing and collision repair. As auto trends shift toward eco-friendliness, your inner-city repair shop could make a profit specializing in hybrid or plug-in electric vehicles. You can also specialize in repairs for specific car manufacturers or types of repair. If you specialize, you might earn a reputation as the best garage for brakes, but you lost out on a lot of other business. Before you open up, you need to know the scope of the services you plan to offer. If you want to specialize, you’ll need to do some serious market research to make sure there is enough demand to support your new shop.
7.Hire the Right Employees
The main success of a workshop lies in its mechanics. Running a workshop effectively means hiring the right people in your workshop. Mechanics to be hired should have good knowledge of vehicles and should possess good knowledge on the make and model of the vehicles. If you have a very small shop, you might do all of the work yourself, but you will probably still need at least one employee to handle telephone calls and customers. If you have a couple of lifts and want to maximize your capacity, you’ll need additional mechanics to help service vehicles
8.Name of the business
Though it is not a difficult task, but the name of the business must be attractive and should describe the business. One should be creative and should select the name which is unique and easily identified. The name should set your business apart and different from other competitive business. Certification tells potential customers that you know what you’re doing. It gives car owners confidence, and can be a very important marketing tool. Before you qualify to take the certification test, you’ll need a minimum of two years of work and educational experience combined, with at least one year obtained on the job.
Publicity of your business is must. Use pamphlets, newspapers to advertize your business. The flyer must mention your business, name, address and contact number if possible. One can ask the local distributor to place the pamphlets in the daily newspaper. You can place a small advertisement in the classified section of the newspaper. Ask your friends and relatives to tell others about your shop and its services. Try to provide attractive offers to attract the customers. You will have to be creative to make your business popular. A proper assessment helps the businessman to know that profit is generated from which type of advertisement. Do a survey to know that most of the customers coming to your shop come from which area.
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It takes a lot of work and general mechanic skills. Starting your own car repair shop can give you control over your own hours and allow you to reap the benefits of owning your own business.