Auto Repair Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their auto repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an auto repair business plan template step-by-step so you can create your plan today.
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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.
If you want to start an auto repair business or expand your current one, you need a business plan. Below are links to each section of your auto repair business plan template:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair business you are operating and the status. For example, are you a startup, do you have an auto repair business that you would like to grow, or are you operating a chain of auto repair businesses?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the auto repair industry. Discuss the type of auto repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of auto repair business you are operating.
For example, you might operate one of the following types of auto repair businesses:
- Auto Service Shop : this type of auto repair business focuses on routine servicing of cars and trucks, such as oil changes and tire rotation.
- Transmission Repair Shop: this type of business focuses on maintenancing, diagnosing and repairing transmissions in all types of cars.
- Body Repair Shop: this type of repair shop focuses on repairing damage to the body of a vehicle, primarily cosmetic damage due to collision.
In addition to explaining the type of auto repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the auto repair industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the auto repair industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your auto repair business plan:
- How big is the auto repair industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your auto repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your auto repair business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: car owners, truck owners, luxury vehicle owners, classic vehicle owners, and businesses that own vehicles such as car rentals, car dealers, delivery businesses, and repairmen.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of auto repair business you operate. Clearly, luxury vehicle owners would respond to different marketing promotions than truck owners, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most auto repair businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other auto repair businesses.
Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes auto parts stores (for DIY repair). You need to mention such competition as well.
With regards to direct competition, you want to describe the other auto repair businesses with which you compete. Most likely, your direct competitors will be auto repairs located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of vehicles do they maintenance and repair, or what types of maintenance and repairs do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide better maintenance and repair services?
- Will you provide services that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an auto repair business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of auto repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to auto repair, will you provide car rental services, repair financing or any other services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your auto repair company. Document your location and mention how the location will impact your success. For example, is your auto repair business located in a busy retail district, industrial area, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your auto repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local websites
- Social media marketing
- Local radio advertising
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your auto repair business, including speaking with vehicle owners in person or on the phone, maintenancing and repairing vehicles.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 50th car, or when you hope to reach $X in revenue. It could also be when you expect to expand your auto repair business to a new city.
To demonstrate your auto repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing auto repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing auto repair shops or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, how many cars will you repair per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your auto repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an auto repair business:
- Location build-out including design fees, construction, etc.
- Cost of equipment and supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your shop location lease or descriptions of repairs you are working on.
Putting together a business plan for your auto repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the auto repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful auto repair business.
Auto Repair FAQ’s
What is the easiest way to complete my auto repair shop business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair shop you are operating and the status; for example, are you a startup, do you have an auto repair shop that you would like to grow, or are you operating a chain of auto repair shops?
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Auto Repair Shop Business Plan
Are you thinking of starting a auto repair shop We have prepared a solid auto repair shop business plan sample that guides you on every stage of your business plan writing
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 repairing shop, the first thing you will need is a business plan. Use our sample Maxwell Garages – 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.
In 2021, 162000 establishments were having 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.
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.
So, it is necessary to decide what you want to do before getting started. Having a specialization helps you get more expertise in the area and makes you more reliable for the job to customers.
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.
Apart from that, it is also important to have a team that has good technical as well as soft skills to understand your customer’s problems better.
Formulate marketing strategies
Marketing your business is essential to attract customers and build your brand’s identity. Hence, it is important to have a marketing strategy for all the platforms your target audience uses to find repair services.
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 different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample Maxwell Garages – 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
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.
Business Planning Resources
We have plenty of free business planning resources available to help you with your planning. You can download our resources to learn all about business planning.
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DISCLAIMER: The business plans, templates, and articles contained on upmetrics.co are not to be considered as legal advice. All content is for informational purposes, and upmetrics makes no claim as to accuracy, legality or suitability. The site owner shall not be held liable for any errors, omissions or for damages of any kind.
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Home » Business ideas » Automotive Industry » Auto Repair & Services
How to Write an Auto Repair & Car Wash Business Plan [Sample Template]
Do you want to start an auto repair & car wash? If YES, here is a detailed sample auto repair & car wash business plan template & FREE feasibility report. Innovation and creativity are the new normal in the business world. Entrepreneurs are looking for ways to combine related services in the bid to maximize profits and one of such business ideas is auto repair and car wash business. It is a business that leverages on economies of scales, and of course it is profitable and open to interested entrepreneurs.
Starting up an auto repair and car wash business needs significant investment capital, solid planning, and concentration to detail in order to keep your business profitable . Just like any other business, the demand for auto repair and car wash services usually decline during recession period/economic downturn due to the declining household spending on services they can do for themselves.
A Sample Auto Repair and Car Wash Business Plan Template
1. industry overview.
Auto repair and car wash business is part of the auto maintenance and repair industry and this industry comprises establishments that provide a wide range of mechanical, electrical and engine maintenance and repair services and also washing and detailing for automotive vehicles.
A recent report published by IBISWorld shows that the Auto Maintenance and Repair industry has experienced steady growth over the five years to 2018. The national unemployment rate declined significantly over the past five years. As a result, many consumers returned to commuting to work, which ultimately increased the number of cars on the road, leading to a rise in total vehicle miles.
As consumers used their vehicles more frequently, general wear and tear resulted in the vehicles requiring more regular repair and maintenance work. These factors, coupled with rising disposable income, resulted in a rise in demand for industry services over the past five years. Over the five years to 2018, industry revenue is expected to increase at an annualized rate of 2.7 percent to $8.4 billion.
The Auto Maintenance and Repair industry will continue to experience growth in all parts of the world especially in developed countries. Statistics has it that in the united states of America alone, there are about 9,199 licensed and registered auto repair and car wash services businesses responsible for employing about 68,358 employees and the industry rakes in a whooping sum of $8 billion annually with an annual growth rate projected at 2.7 percent.
The Auto Maintenance and Repair industry is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.
As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.
Over and above, auto repair and car wash businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.
2. Executive Summary
Do It All® Auto Repair and Car Wash Services, Inc. is a registered auto repair and car wash company. The company will be located in will in Sacramento, California – United States of America and we plans to also cover other cities such as Los Angeles, San Diego and San Jose et al. We chose to operate in these cities because we know that our auto repair and car wash services will be in high demand due to the growing number of automobiles in these cities.
Do It All® Auto Repair and Car Wash Services, Inc. is located in a full-service car wash facility which has the following features: a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; and 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines. We will offer auto repair services and thorough car cleaning, restoration, and finishing, both inside and out, to produce a pristine level of detail.
We are well trained and equipped to service the market segments that require auto repair and car wash services. Although our intention of starting a Do It All® Auto Repair and Car Wash Services, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We will offer both in-station and out-of station services. Our customers will have the options of choosing from our different packages – we have the plans to serve both individual clients (households) and corporate clients (transport companies, haulage companies and the government) which is why we designed various packages.
We are quite optimistic that our values and quality of service offering will help us drive our auto repair and car wash business to enviable heights and also help us attract the number of clients that will make the business highly profitable. We will be dedicated to establishing good business relationship with our clients by giving them value for their money and reasons for them to hire our services over and over again.
At Do It All® Auto Repair and Car Wash Services, Inc., we are fully aware that in order to become the number one choice in our city, we must continue to deliver quality services. We are open to the use of latest technology in the car wash and auto detailing industry. Our excellent customer service and the quality of services we offer will position us to always welcome repeated customers.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Do It All® Auto Repair and Car Wash Services, Inc. is owned and managed by Dennis White and his immediate family members. He is a notable figure in the automobile industry in California. Aside from this new auto repair and car wash business, the family owns an automobile dealership business and also an auto garage all in Sacramento – California.
3. Our Products and Services
Do It All® Auto Repair and Car Wash Services, Inc. is a standard auto repair and car wash services company that offers a wide range of services that revolves around the Auto Maintenance and Repair industry. We intend giving our customers every reason to hire our services which is why we have customized our services.
Do It All® Auto Repair and Car Wash Services, Inc. will offer the following services;
- Repairing and replacing automotive engines
- Performing general automotive repairs
- Powertrain repair services
- Brake repair services
- Scheduled and preventative repair and maintenance services
- Repairing trucks
- Repairing and replacing automotive exhaust systems
- Repairing and replacing mufflers
- Repairing automotive transmissions
- Repairing automotive brakes
- Performing automotive electric repairs
- Performing automotive wheel alignments
- Repairing automotive radiators
- Wheel alignment and repair services
- Car wash and auto detailing services
4. Our Mission and Vision Statement
- Our vision is to become the number one auto repair and car wash company in the whole of California with active presence in major cities in the United States of America.
- Our mission as an auto repair and car wash services company is to develop a highly successful, profitable all round auto repair and car wash business which provides quality services in our community and to become a standard for an ideal auto repair and car wash business not only in the State of California but also throughout the United States of America.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our auto repair and car wash services company on the right business foundation.
As a matter of fact, we are set out to build an auto repair and car wash business that will be a standard in the industry. We want to have a dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot.
The success of our auto repair and car wash services business will be anchored on the team not on any individual. Do It All® Auto Repair and Car Wash Services, Inc. Company will employ professionals and skilled people to occupy the following position;
- Chief Executive Office (Owner)
- Auto Garage Manager
Marketing and Sales Executive
Client Service Executive
- Auto Mechanics
- Car Washer and Auto Detailers (6)
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Auto Garage Manager:
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the car wash and auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
- Ensures that the organization work in line with international best practices.
- Identify, prioritize, and reach out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent Do It All® Auto Repair and Car Wash Services, Inc. in strategic meetings
- Help increase sales and growth for Do It All® Auto Repair and Car Wash Services, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Do It All® Auto Repair and Car Wash Services, Inc. Company
- Serve as internal auditor for Do It All® Auto Repair and Car Wash Services, Inc.
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Car washers and Automobile Detailers (6):
- Make use of high lubricity sprays to polish and wash the vehicle’s bodywork.
- Responsible for handling core car wash services such as thorough cleaning, restoration, and finishing of an automobile, both inside and out, to produce a pristine level of detail
- Handle services that involves cleaning and restoring or exceeding the original condition of the surface of the car’s finish
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the manager.
Auto Repair and Maintenance Engineers (2) and Technicians (8)
- Handle Powertrain repair services
- Handles Brake repair services
- Handle wheel alignment and repair services
- Handles other repair and maintenance services
6. SWOT Analysis
Auto repair and car wash services business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard auto repair and car wash business with a variety of services which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal auto repair and car wash business without going through the required protocol of setting up a new business including writing a detailed business plan, but because of the kind of auto repair and car wash business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Mr. Larry Brown, a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Do It All® Auto Repair and Car Wash Services, Inc.;
Do It All® Auto Repair and Car Wash Services, Inc. is centrally located in a densely populated industrial and residential estate in Sacramento, California; our location is in fact one of our major strengths. We have a well-equipped, state of the art car repair, car wash and auto detailing equipment and we are also one of the very few auto repair and car wash and auto detailing companies in the whole of Sacramento, California.
Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered experts in the Auto Maintenance and Repair industry, a team of hardworking and dedicated individuals.
Do It All® Auto Repair and Car Wash Services, Inc. is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.
We are centrally located in one of the busiest areas in Sacramento, California and we are open to all the available opportunities the city has to offer. Our business concept also positioned us to be a one stop shop in the auto repair and car wash business.
The truth is that there are no standard auto repair and car wash services business within the area where ours is going to be located; the closest to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Do It All® Auto Repair and Car Wash Services, Inc. is unfavorable government policies, seasonal fluctuations, demographic / social factors, downturn in the economy and of course emergence of new competitors within the same location.
7. MARKET ANALYSIS
- Market Trends
As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop and car wash. This is because you can never rule out wear and tear when a machine is in use. People visit auto garages for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars.
For whatever reasons; auto repair garages will always translate to money. Auto repair and car wash services business responds to the increase in household spending and also increase in the volume of cars in a particular area or city. The trend of the market can be predicted without stress.
The Auto Maintenance and Repair industry, in the bid to survive the recent global economic meltdown included additional services to their core service offerings. Some car wash and automobile repair companies include selling of car accessories, running a bar, barbing saloon and even restaurant within the same premises if they have enough space.
8. Our Target Market
Before choosing a location for our auto repair and car wash services business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
Basically, those who will benefit from our service offering are households, transport companies, haulage companies and government agencies with fleet of cars / trucks et al. They cut across different sectors of the economy. Below is a list of the people and organizations that our auto repair and car wash services is designed for;
- The public sector; government ministries, agencies and parastatals.
- Organized private sector
- Corporate Executives
- Business People
- Car Dealership Shops
- Taxi and car rental companies
- Transport Companies
- Haulage Companies
Our competitive advantage
Auto repair and car wash services business is an easy to set up business that does not require formal training to achieve; anybody can set up the business if they have the required startup capital. It means that the possibility of auto repair and car wash services springing up in our location is high.
We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Sacramento – California. Our competitive edge is that we are standard and well – equipped auto repair and car wash services business that has loads of complimentary business offerings that can easily attract car owners (customers).
We can confidently say that the location of our business will definitely count as a positive for us amongst any competitor. For the time being, Do It All® Auto Repair and Car Wash Services, Inc. has no real competitors that can match the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
The marketing strategy for Do It All® Auto Repair and Car Wash Services, Inc. is going to be driven basically by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers.
Do It All® Auto Repair and Car Wash Services, Inc. is an auto repair and car wash services business that is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Do It All® Auto Repair and Car Wash Services, Inc.
Our goal is to grow Do It All® Auto Repair and Car Wash Services, Inc. to become the leading auto repair and car wash services company in Sacramento – California which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the Auto Maintenance and Repair industry.
Do It All® Auto Repair and Car Wash Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our auto repair and car wash services business by sending introductory letters alongside our brochure to corporate organizations, transport and logistics companies, households and key stake holders in and around Sacramento – California
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our auto repair and car wash services company in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
Sources of Income
Do It All® Auto Repair and Car Wash Services, Inc. is established with the aim of maximizing profits in the Auto Maintenance and Repair industry and we are going to ensure that we do all it takes to attract clients on a regular basis.
Do It All® Auto Repair and Car Wash Services, Inc. will generate income by offering the following services;
10. Sales Forecast
One thing is certain, there would always be clients who would need the services of car wash and auto repair businesses.
We are well positioned to take on the available market in Sacramento – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operations and grow our business and clientele base.
We have been able to examine the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sacramento – California.
Below is the sales projection for Do It All® Auto Repair and Car Wash Services, Inc., it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $750,000
N.B : This projection was done based on what is obtainable in the Auto Maintenance and Repair industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Do It All® Auto Repair and Car Wash Services, Inc. is set to create a standard for auto repair and car wash business in Sacramento – California, which is why we will go all the way to adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise or promote an auto repair and car wash business. Here are the platforms we intend leveraging on to promote Do It All® Auto Repair and Car Wash Services, Inc.;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our auto repair and car wash services business in relevant magazines, local newspaper, local TV stations and local radio station
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Billboards on strategic locations in and around Sacramento – California
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the Auto Maintenance and Repair industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Sacramento – California.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Do It All® Auto Repair and Car Wash Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Do It All® Auto Repair and Car Wash Services, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via POS
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in Sacramento – California – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Do It All® Auto Repair and Car Wash Services, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing standard car wash facility- $80,000.
- The cost for facility remodeling – $40,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for auto repair tool box and car wash and auto detailing equipment and tools – $55,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- Cost for the purchase of utility truck – $15,000
- Miscellaneous: $3,000
We would need an estimate of four hundred and fifty thousand dollars ($350,000) to successfully launch our auto repair and car wash business in Sacramento – California, US.
Generating Funds/Startup Capital for Do It All® Auto Repair and Car Wash Services, Inc.
Do It All® Auto Repair and Car Wash Services, Inc. is owned and managed by Dennis White and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Do It All® Auto Repair and Car Wash Services, Inc. is to ensure that we continue to deliver quality services, and improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Do It All® Auto Repair and Car Wash Services, Inc. adopted the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.
Do It All® Auto Repair and Car Wash Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams
- Business Name Availability Check : Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed pressure washing machines, microfiber towels with a minimum weight of 300 GSM (grams per square meter)., auto repair tool box, office appliances and other cleaning accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – suppliers of all our needed auto spare parts, cleaning accessories and supplies et al: In Progress
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Auto Repair and Car Wash Business Plan
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Auto Repair and Car Wash Business Plan
Start your own auto repair and car wash business plan
DIY Wash N' Fix
Service business analysis.
The industry we participate in consists of quite a few sub-industries. The ones that pertain most towards DIY Wash N’ Fix are the Car Wash Industry, the Auto Parts Industry, and the Mechanical Repair Industry.
5.1 Mechanical Repair Competitors
These competitors are less direct than the previous ones because we differ in terms of services. There are different types of competitors:
- Independent repair stores : These are typically a small facility run by one owner. They face a declining market share in the favor of big chains and franchises, primarily because they cannot retain a skilled workforce. Commitment is their competitive advantage.
Therefore, the competitors we need to carefully watch are the big repair stores (chains, franchises, licenses) that offer many services thanks to a skilled workforce and heavy marketing expenses. They are able to retain customers and have the advantage of their brand recognition.
5.2 Auto Parts Industry
The after-market auto parts companies are retailers that sell directly to the end users and own stores throughout the U.S. Forty percent of all U.S. auto parts sales are made by the “Big Eight” auto part chains. The six largest retailers are: AutoZone, Advance, CSK, Pep Boys, Discount, O’Reilly, NAPA (National Auto Parts Association) and Carquest.
The following trends are prevalent within the industry:
- Aging U.S. vehicle population (average car age is 8.5 years).
AutoZone is the number one retailer in this market; last year they realized $3.8 billion in sales. Auto part chains are expecting sales to continue as more car owners buy parts to do repair and maintenance themselves. This is a positive indicator for the potential success of DIY Wash N’ Fix.
Mechanical Auto Repair Industry
The auto repair industry is composed of two categories: the collision repair industry and the mechanical repair industry. Considering our business, with our facility and tool constraints, we will focus on the mechanical repair market and not the collision repair market. However, we expect we will have some customers wanting to do minor collision repairs.
Like the automotive industry as a whole, the mechanical repair industry is currently experiencing major structural changes. These trends include:
- The growing importance of customer service and satisfaction.
5.3 Car Wash Industry
The car wash industry has entered the mature phase of its life cycle and is becoming increasingly competitive. The increasing competition is becoming apparent through the shift in three major industry trends. They are:
- Gas station chains : many are offering car washes either on a free or low-cost basis, investing in high technology equipment that requires little maintenance or labor.
5.3.1 Consequences of Trends
The consequences of these trends are:
- Car wash service is combined with other services.
The main threat within the industry is the water recycling regulations that some states impose. For instance, Maryland requires car wash businesses to recycle 80% of the used water.
The car wash industry is seen as a profitable industry, provided that owners can differentiate their firms, create a loyal customer base, and develop methods to attract new customers. Moreover, profits are greater when a car wash is combined with other car-related services that provide better overall value and helps retain customers. In order to succeed in the industry, businesses must provide:
- Relevant and quality other car services.
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Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an auto repair 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.
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A Sample Auto Repair and Car Wash Business Plan Template Table of Content 1. Industry Overview 2. Executive Summary 3. Our Products and Services 4. Our Mission and Vision Statement 5. Job Roles and Responsibilities 6. SWOT Analysis 7. MARKET ANALYSIS 8. Our Target Market 9. SALES AND MARKETING STRATEGY 10. Sales Forecast 11.
Auto Repair and Car Wash Business Plan Uploaded by KiraYagami Copyright: Attribution Non-Commercial (BY-NC) Available Formats Download as DOCX, PDF, TXT or read online from Scribd Flag for inappropriate content Download now of 31 Auto Repair and Car Wash Business Plan DIY Wash N' Fix Executive Summary DIY Wash N' Fix is a new concept in auto care.
Auto Repair and Car Wash Business Plan Start my business plan Start your own auto repair and car wash business plan DIY Wash N' Fix Executive Summary DIY Wash N’ Fix is a new concept in auto care. The Do-It-Yourself (DIY) market in America is increasingly popular, as evidenced in the growth of DIY housing suppliers.
Auto Repair and Car Wash Business Plan Start my business plan Start your own auto repair and car wash business plan DIY Wash N' Fix Service Business Analysis The industry we participate in consists of quite a few sub-industries.