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How To Start An Auto Body Shop In 8 Steps

From creating a business plan to seeking out funding, here's what you need to know before you start an auto body repair shop.

WRITTEN & RESEARCHED BY

Editor & Senior Staff Writer

Last updated on Updated August 18, 2024

REVIEWED BY

Lead Staff Writer

• A detailed business plan is crucial for outlining your goals, market analysis, and financial projections. This plan not only helps guide your business but is essential when seeking funding from investors or lenders.
• Selecting a strategic location with high visibility and accessibility is vital for attracting customers. Marketing your business before and after launch is also essential for attracting and retaining customers.
• Estimate costs for equipment, licenses, insurance, and other expenses. Explore various funding options such as personal savings, loans, or investments from friends and family to cover these costs and unexpected expenses.

Opening an auto body shop can be an extremely lucrative venture. The automotive collision repair market brings in billions of dollars in revenue each year, and studies show that revenue will only continue to grow in the years ahead. Isn’t it time you got your share?

If you’re thinking about starting an auto body shop, this guide is for you. We’ll go through all of the steps of starting your own business, including reviewing potential costs, hiring employees, and other critical steps to building a successful business.

How To Start A Body Shop

With careful planning, you can simplify starting an auto body shop and improve your chances for a successful business. Start by following these simple steps.

Step 1: Create A Business Plan For Your Body Shop

Preparations for your auto body shop start before you even begin building your business with the creation of a detailed business plan.

A good business plan outlines how to get from your starting point (launching your business) to your goal. Every entrepreneur has a different goal, from creating a sustainable career to starting a chain of auto body shops. Regardless of how big or small your goal is, the most important thing is to set a concrete goal and create a map of how to get there.

Not only will a business plan keep you on the right track, but you must have a plan to present to investors or lenders when you’re seeking capital.

New to writing a one-page business plan ? At a minimum, here’s what you should include:

• Executive Summary: A concise summary detailing each section of your business plan
• Overview: A description of your business, including the legal structure, location, and type of business
• Market Analysis: An overview of your market and a definition of your target market
• Competitive Analysis: Strengths and weaknesses of your competition
• Management Team: The members of your management team and their responsibilities within your organization
• Financial Projections: A forecast of the financial future of your business

Step 2: Find A Location For Your Auto Body Shop

As you plan your body shop, location is key, but there are a few other considerations to weigh before you put your name on a lease or mortgage:

• The property should be convenient for your customers.
• The property should be located in a high-traffic area or off a major road.
• Create a business plan for both options, calculate costs, and determine which makes the most sense financially.
• While you’ll lose some flexibility in terms of branding, a franchise’s working business model takes the guesswork out of starting your business.

Step 3: Register Your Auto Body Business

Before you open your auto body shop to the public, you need to register your business. Not only will you be seen as a legitimate business by your customers, but registering is also required when you want to hire employees, protect your assets, or seek capital from investors.

To register your business, you need to first determine what form of business entity to establish. There are several business structures to choose from, including:

Sole Proprietorship

A sole proprietorship is the simplest business structure. This is best for businesses with just one owner. Sole proprietors can file their business profits and losses on their personal income tax returns. No paperwork is required to register as a sole proprietorship.

However, this structure isn’t without its drawbacks. Raising money as a sole proprietor is difficult, and you are personally responsible for the liabilities of your business.

Partnership

A partnership is a good choice for companies that will be owned and operated by two or more people. There are several different partnership types to consider:

• General Partnership: Doesn’t require filing with the state and has few requirements
• Limited Partnership (LP): One partner has unlimited liability and the others have limited liability. The personal assets of the limited partners can’t be used to satisfy the debts and liabilities of the business.
• Limited Liability Partnership (LLP): Used by professional service businesses, this type of partnership offers personal asset protection for all partners

Limited Liability Company (LLC)

With an LLC, a business owner will receive liability protection without paying the high tax requirements of corporations.

Corporation

This is the most complex and expensive business structure. More regulations and tax requirements are put in place for corporations. This structure is best for businesses that plan to raise capital through the sale of stock.

The type of structure you select for your business varies based on the number of owners that you have and the future plans for your business. In most cases, however, single owners of auto body shops lean toward LLCs, while businesses with more than one partner select the partnership business structure. Before choosing your business structure, talk to your accountant and/or lawyer to find out which makes the most sense for your business.

Once you’ve determined your business structure, you’ll need to select a name for your business. Choose a name that reflects your brand and the services you offer. You also want to choose something catchy and/or easy for customers to remember.

Your business will need to be registered with city, state, and federal governments. You’ll also need to sign up for an employer ID number through the Internal Revenue Service if you plan to hire employees. To learn about the specific business license and permit requirements in your area, contact your local Chamber of Commerce, Department of Revenue, or Small Business Administration office to learn more.

Step 4: Calculate The Startup Costs For Your Auto Body Shop

One of the first steps to starting your own business is to calculate your startup costs. To do that, begin by making a list of everything you need for your business.

One of the biggest expenses for your new business will be equipment and tools. While your list may look a little different, some of the most common equipment and tools in this industry include:

• Hydraulic lifts
• Pneumatic tools (air tools)
• Air compressors
• Diagnostic machines
• Wheel balancers

In addition to equipment and tools, other costs to consider include:

• Business licenses & certifications
• Business insurance
• Employee onboarding & payroll
• Monthly rent or mortgage payments

You should expect to spend at least $50,000 to get your shop up and running. However, as you make a list of your costs and research pricing, this number could potentially rise.

Before you seek funding for your business, a good rule of thumb is to always overestimate your costs by about 30 percent. For example, if you calculate that your expenses will be $200,000, plan to seek $260,000 in funding. In other words, always plan for the unexpected.

Step 5: Get Funding For Your Auto Shop

Most entrepreneurs don’t have the funds to cover startup costs out-of-pocket. Instead, they rely on loans or other types of funding to launch their businesses.

New businesses face challenges when trying to acquire a business loan. Most lenders want to work with established businesses with high revenues and solid business and personal credit histories. If you haven’t started your business, meeting these requirements is impossible.

Fortunately, there are options available for new businesses. While you may not be able to walk into a bank to get a business loan (yet), you may be able to benefit from these funding sources:

• Personal Savings : Use your own funds to avoid monthly payments, interest, and fees.
• Friends & Family : Borrow from friends and family using traditional debt financing (repay over time with interest and fees) or equity financing (offering ownership in your business in exchange for capital).
• Personal Loans For Business : Use your personal credit score and income to qualify for a personal loan for business to cover startup costs. Compare personal loans for business to find the best deal.
• Lines Of Credit : Draws from your line of credit can be made as needed to cover unexpected expenses, emergencies, or to fill revenue gaps. If you have a revolving line of credit , funds replenish and are available to use again after repaying borrowed funds (plus fees and interest). Read more about the best lines of credit for business .
• Business Credit Cards : You can use a business credit card as often as you wish provided you stay within your set credit limit. The best business credit cards can be used anywhere credit cards are accepted and be used for online or in-person purchases.
• Rollovers As Business Startups (ROBS) : With rollovers as business startups , or ROBS, you can leverage your retirement funds without paying penalties and taxes for early withdrawal. A ROBS provider will get everything set up for you legally and ensure you maintain compliance in exchange for a one-time setup fee and monthly maintenance fee.

While some traditional loan options may be off the table in the early stages of your startup, there are ways to obtain the capital you need to get your auto body shop off the ground. Learn more about startup funding options available to launch your business.

Step 6: Choose Business Software For Your Auto Body Shop

Business software helps you more efficiently run your business, from keeping up with customers to tracking your finances for tax purposes.

Accounting Software

Accounting software allows you to track and record all financial transactions, including accounts receivable and accounts payable. You’ll also be able to run financial reports that may be required to receive financing. These reports will also come in handy come tax time.

Most accounting software also offers additional tools including bill payment, payroll, and invoicing. You can purchase accounting software or pay a fee to subscribe to an online service.

Unsure of which software is right for you? Start your search with our picks for the best accounting software for small businesses .

Auto Repair Invoice Software

Accounting software often has a feature that allows you to create and send invoices. However, you might want to invest in specialty software for auto body repair shops.

Auto repair invoice software includes a variety of tools that can be used to:

• Track service requests
• Create invoices & estimates
• Track leads
• Manage inventory
• Manage orders

Payment Processing Software

To accept credit cards, debit cards, and digital payments, you’ll need a payment processing service . The payment processor serves as the communicator between your customer’s bank and your bank, allowing you to process credit, debit, and other forms of payment. Kick off your search with the best credit card processors for startups .

For your auto collision business, you might want to consider getting a point of sale system. With the best POS systems for small businesses , you’ll be able to process credit cards, scan barcodes, print receipts, track inventory, run reports, and perform other functions.

For a fee, your business can receive the software and hardware needed to best serve your customers. There are even free options like Square that offer many of the features you need to get started.

Step 7: Hire Body Shop Employees

While you may start your collision center as a one-man operation, you’ll have to learn how to hire employees if you want to grow. These employees may include:

• Auto body & glass repairer
• Front-desk receptionists

Do some research on salaries in your area to get an idea of potential costs. There are additional expenses associated with hiring employees, including:

• Employee training
• Background checks
• Drug testing
• Employee benefits

When you’re ready to hire employees, you can find quality candidates by asking for referrals from friends, family, colleagues, and industry connections. You can also post your jobs on online job boards. Learn more about how to find and recruit employees for your business .

Step 8: Promote Your Auto Body Shop

Before you even hold your grand opening, you need to start your marketing and advertising efforts. Start by getting your business online, then throw in a few old-school advertising tactics to spread the word about your new business.

Social Media Profiles For Your Business

Setting up your social media profiles is free and easy. Consider starting with Facebook, Twitter, and Instagram. Add your logo, contact details, and important information like services provided and hours of operation.

As you build your business, you can update your profiles with specials, coupons, photos of your completed work, and other information.

Business Website For Your Body Shop

These days, any small business owner can create a professional website with easy web builders that feature templates, drag-and-drop design, and other tools to create a website in just minutes.

Your website should be a reflection of your brand, so make sure to choose templates, photos, and colors that best represent your shop. Your domain name should also represent your brand, so make sure it’s easy to remember and avoid numbers, symbols, or very long URLs.

Your website shouldn’t be overly complicated, and it should be easy to navigate. Include key information such as:

• Hours of operation
• Contact information
• Certifications, fee estimates, rental services, & other standout features
• Coupons & specials

As your business grows, you can add additional features such as a signup option for email newsletters or online scheduling.

Online Advertising For Your Body Shop

Consider paying for social media ads or pay-per-click ads on search engines, or sign up with Yelp For Business. These options are affordable for new businesses and are easy to set up.

Traditional Advertising For Your Collision Center

Look beyond the internet to advertise your business. Consider placing flyers or door hangers in the area around your business to bring in new customers. Before you take this route, make sure to understand the local laws in your area regarding the posting of flyers on public and private property.

You can also explore options including radio and TV advertisements and mailers. However, these ads are typically quite expensive, so hold off on these options until your business is bringing in steady revenue.

One of the most important things to remember is that word-of-mouth advertising is one of the best forms of advertising. If you perform a great service, your customers will tell others about your business. Keep customer satisfaction high to increase those referrals and draw in more revenue for your body shop.

The Bottom Line On Starting An Auto Body Shop

While you may be itching to get your auto body shop off the ground immediately, take the time to plan out your business to increase your chances for success.

The hard work doesn’t stop after your grand opening, either. You’ll need to continue working hard to bring in customers, increase your revenue, and become a successful entrepreneur. Make sure to check out our other resources to help you every step of the way, from finding the best equipment financing to upgrade your shop to purchasing garage liability insurance to protect your business.

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How to Start a Body Shop Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry

Do you want to start an auto body shop company from scratch? Or you need a sample auto body shop business plan template? If YES, then i advice you read on. In the news, we hear of auto accidents every now and then. This is regardless of whether it was caused by a drunk driver, or not. Accidents always occur on a regular basis and people will always require auto body work. This is why all over the world we see that body shops have continued to spring up on a daily basis. This is because of the never ending need for it.

Body shop business is a money-spinning career opportunity. Operating a body shop can be hard work, but you can be rest assured to smile to the bank at the end of the day. When you run this type of business you assume the role of a problem solver because you help solve a rightful problem. However, it is imperative to note that starting this trade requires a whole lot of focus.

If you are decided and are really enthusiastic about knowing what the body shop business is all about and how to start yours, then it becomes important that you take these step below really seriously. The steps to be reeled out in this article are such that has helped those who have thriving body shop businesses. Now, let us see those steps that are indispensable when it comes to opening a body shop.

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Starting a Body Shop Company – Sample Business Plan Template

1. learn a lot about body shops.

The first rule of thumb is that you must learn everything you can about auto body works, as well as painting cars. This is because you would grasp a whole lot, when you research on a topic that isn’t too clear. You can consider reading books on auto body works; ask those who are already in the line of business how they have been able to cope in the past years, how much it took them to set up a body work business, amongst many other questions.

2. Learn the Skill

Even though this skill may be difficult to learn, but you have got to give it a shot if you want to delve into this business. It is imperative that as you start a business, you learn the skill involved in it. That said, and then you may consider attending a vocational or technical auto repair program. This singular can put you in a top position in the industry because you are able to put all you have learned into practice.

3. Work in an Auto Shop

If you aren’t satisfied at the level of knowledge that you have been able to garner, then you can look at finding a job and serving in an auto body shop for a certain period of time so that you can learn the basics. When you put yourself in this position, you may also learn the day to day running processes of a body shop company.

4. Register Your Business

This is not the type of business that you can possibly start at home. This is because of the noise that some of the machines used in this industry emits. Much more than that, operating a body shop from home may mean that you would be exposing yourself as well others to very harsh chemical odors that may be hazardous to the health. So, do ensure that you do all the paper work that registering a business entails.

5. Generate a business plan for your auto body shop

There are very vital templates that must be included in your body shop business plan. They include; what services you offer and your eventual business intention. Also, you should have financial projections like;   revenue and expected expenses, short term and long term business goals. It should also include a comprehensive analysis of your competition in the area you want to site your body shop.

6. Pool Resources Together

This is one business that may gulp quite a lot of money. Therefore, you would need to secure funding for your body shop. You may consider angel investors who are all out scouting for businesses to promote. You can also seek a loan facility from a bank or a micro finance bank. If you are lucky and you find an angel investor, do ensure that you have a well packaged business plan to tender.

7. Discover a location for your auto body shop

You would need a space where a garage with several bays can be built. There should also be some office spaces attached. You may need to tell your realtor to find this space in a commercial area that can be visible to a lot of people who may need your services. This business must be located in the heart of town.

8. Insure Your Business

It is important that you purchase an insurance policy for your auto body shop. Do ensure that this includes a general liability protection, as well as property coverage. Also, it is important that you have workers’ compensation insurance for your employees.

9. Hire Workers

More often than not operating a body shop means that you will hire mechanics for your business. This means that you will need to take into service mechanics that are proficient and have been through a training program.

10. Procure Equipment

If you do not have a relationship with parts suppliers, then it is important that you do so. This is so that you can offer affordable services. Once you secure them, then you can purchase the equipment that you will need for your shop. This will comprise of lifts, tools and the initial parts inventory.

11 . Advertise your auto body business

Having a solid advertising strategy is very vital. Here are some marketing steps that you may consider adopting; leveraging on the internet, advertising through the radio and on television, as well as the print media. You may also consider offering discounts to new customers so that they can stay attracted to your service.

Table of Contents

Complete Guide on Auto Repair Shop Business Plan (2023)

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

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

Let’s get started!”

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

What is an auto repair shop business plan? 

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

Imagine you’re planning a long road trip. 

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

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

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

Why you need a business plan for auto repair shop: 

You will understand your business better:.

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

It will give you a Smooth Driving:

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

Make your business sustainable: 

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

It will give you Clear Path:

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

Creating an auto repair shop business plan: 

Understanding the basics.

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

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

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

Company Description: 

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

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

Overview: 

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

Mission Statement: 

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

Vision Statement: 

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

Products or Services

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

Market Positioning

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

Short-Term Goals: 

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

Long-Term Goals: 

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

Market Analysis

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

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

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

Target Market: 

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

• Income level 
• Values 
• Lifestyles 
• Purchasing behaviors

Address the market needs: 

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

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

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

Analyzing the Competitive Landscape: 

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

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

Market Size and Growth Potential

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

Industry Trends: 

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

Marketing and Sales Strategies

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

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

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

Organization and Management

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

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

Product or Service Line

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

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

Financial Projections

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

1. Profit and Loss: 

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

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

3. Balance Sheet Projection

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

4. Break Even Analysis

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

Risk Assessment and Contingency Planning

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

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

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

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

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

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

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

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

About the Author: Torque360

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How to Write an Auto Repair Shop Business Plan + Free PDF

Elon Glucklich

8 min. read

Updated February 16, 2024

Looking for a free, downloadable auto repair shop business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.

You don’t need to find a sample business plan that exactly matches your business. Whether you’re starting an independent garage, a specialty shop for imports, or an auto body shop, the basics of the plan will be the same.

More than 280 million registered vehicles were on the road across the United States at the end of 2022. With a vast majority of them being used vehicles, the need for skilled auto repair technicians is higher than ever.

In this article, we’ll cover the basic elements of how to write an auto repair shop business plan, from your marketing plan to your financials. We also provide a sample auto repair shop business plan PDF for you to download and incorporate into your own plan.

What should you include in an auto repair shop business plan?

Are you writing a business plan for your auto shop because you’re seeking a loan ? Are you looking to clarify your path to creating a profitable, long-lasting business? 

Independent auto repair shops account for three-quarters of all used car repairs in the U.S., so there are numerous examples of successful business models to guide your business. 

But no two auto shops are exactly the same, so your plan will differ from others based on who you’ve identified as your target market , and what products and services you’re offering them.

Many business plans include the following sections:

• Executive summary
• Company overview and funding needs
• Market and competitive analysis
• Products and services
• Operational plan
• Business structure
• Marketing and customer acquisition strategies
• Financial planning and projections

One thing that makes an auto repair business plan different from many other service-based business plans is the sheer number of different products and services you might offer. 

For instance, besides providing auto repair services, you might also sell parts, accessories, and car care products. Each might require a different promotional strategy to maximize the number of sales you make.

You may also want to think about how you’re pricing your services and if you have specific staffing requirements or training programs.

Here’s an example of an auto repair shop business plan outline.

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The 8 elements of an effective auto repair shop business plan

1. executive summary.

The executive summary is a high-level overview of your business plan. 

It shouldn’t be more than two pages, and even though it goes at the beginning of the plan, you should write it last. That’s because the executive summary is basically a condensed version of your business plan.

Your executive summary should include a mission statement that describes the purpose of your business and what sets it apart from competitors. Maybe you can guarantee a quicker service time than other shops in your area, or you offer a unique mix of services.

Your business plan helps you focus on these key factors that will help your auto repair shop thrive, and the executive summary makes your plan more credible to anyone reading your plan.

2. Company overview and funding needs

The company overview is a short summary of your auto repair shop, including its legal structure , location, and history. 

If you aren’t seeking a loan or investment for your business, you can likely skip this section. 

If you are writing the business plan for funding, clearly state: 

• How much you need
• What you will use it for
• How it will benefit the business

For instance, you may need funds to renovate your building, buy equipment, or place advertisements.

3. Marketing plan and competitive analysis

The marketing plan focuses on analyzing the auto repair shop market in your area, both in terms of potential customers’ needs, and how other shops in the area are (or aren’t) meeting those needs.

Researching your market involves researching local demand for auto repair services. For instance, a shop in a colder climate might have customers with different car issues than a shop in a warmer area. A shop in a lower-income market might get more customers with older vehicle models than one in a high-income market.

The market analysis should also examine your competitors , noting their strengths and weaknesses and how you can differentiate your shop.

4. Products and services

This section outlines the range of services your auto repair shop will offer. You can list them as bullet points, though you should also take some time to explain why you are offering them. 

Start with your most profitable services, and work your way down. Also, separate any unique services products that differentiate your auto repair shop from competitors (you’ll need to do market research to know which services will set you apart).

A list of products and services could include:

• Engine repairs
• Transmission work
• Suspension and steering
• Brake repair
• General maintenance
• Auto part sales

You can also include specialty services like:

• Classic car restoration
• Hybrid and electric vehicle maintenance 

5. Operational Plan

The operations section details the everyday functioning of the auto repair shop. It includes the shop’s operational hours, workflow management, and customer service policies.

The idea with this section is to cover the processes that you’ll deploy in your business to make sure your shop is operating efficiently, so you can maximize the number of customers you’ll serve and revenue you’ll bring in. 

Be sure to touch on how you’ll manage inventory , work with parts suppliers, and ensure equipment maintenance protocols are being followed. Also, outline safety procedures and environmental compliance measures you’ll implement.

6. Business structure and management

This section describes the organizational structure and management of the auto repair shop. If you skipped the Company Summary and Funding Needs section, include information about your legal structure here. 

Many owners choose to incorporate their business as Limited Liability Companies (LLCs) . This option strikes a balance between protecting the business from legal liabilities while providing flexibility in how they operate their business.

The management team section provides information about the auto repair shop’s key personnel. This includes the shop owner, managers, technicians and front office support. 

Briefly explain their roles, responsibilities, qualifications, and experience. 

7. Marketing and customer acquisition strategies

This section is where you’ll outline your strategies for attracting and retaining customers. You might want to offer loyalty programs for repeat customers, discounts for customers coming to your shop for the first time, or add-on services like a free car wash.

Cover the various marketing channels you’ll use, like local advertising or online marketing. Maybe you want to create a strong website and leverage social media. Or maybe you’ll rely more on partnerships with local businesses and participation in community events. 

Focus on how you plan to build a strong reputation to attract and retain customers.

8. Financial planning and projections

Your financial plan should give detailed financial projections, including sales , expenses , and profitability . If you’re running an existing business, you can start with your previous year’s numbers. If you’re just starting out, put in your best guess.

Set a goal for yourself — maybe you want to grow revenue by 5 percent. Create a 12-month cash flow statement, income statement, and balance sheet that rises by 5 percent from the beginning of the year to the end.

Then, run your business. 

As you compare your actuals to the forecast over time, you’ll see where you need to make strategic adjustments in order to reach your goal or if you need to revise your target. 

It’s totally fine to adjust your forecast over time — forecasts are just guesses, after all.

Building a successful auto repair shop business plan: Key considerations

Understanding your target customer’s needs is crucial to writing an auto repair shop business plan that you can use effectively. 

To ensure your business plan is the foundation of a growing operation, ask yourself whether you’re taking these considerations into account.

1. Service range

Vehicle owners have varied needs. 

You should offer a broad spectrum of services that meet as many of the needs in your market as you can realistically provide, from basic maintenance to specialized repairs. Catering to more customer segments than your competitors is a good way to set your shop apart.

2. Pricing strategy

Competitive pricing is crucial. You want to attract customers with reasonable rates, while ensuring profitability by bringing in more revenue than expenses. Researching your competitors’ prices should help inform your pricing decisions.

3. Technician expertise

Skilled technicians are vital to your reputation and your bottom line. Make sure your technicians undergo regular training so that they’re up to date with the latest automotive trends and technologies. 

Take some time to research technician wages in your area, to ensure you’re paying a competitive wage that will attract qualified employees.

4. Online presence

A strong digital footprint is essential. 

Even if you plan to rely on traditional advertising and word-of-mouth sales, a website that is search engine optimized can help you generate good online reviews and attract customers in your area who are searching for auto repair services online. 

If this isn’t an area of strength for you, consider hiring a website designer .

5. Shop environment

It may not make or break your business, but providing a welcoming environment at your shop signals to customers that you’re running a credible organization—a factor that might affect whether or not they return. 

Focus on cleanliness, organization, and professional service.

Download your free auto repair shop sample business plan PDF

Download your free auto repair shop sample business plan PDF now, or explore Bplans’ collection of over 550 sample business plans for other options.

There are numerous reasons auto repair shop owners can benefit from writing a business plan — you’ll almost certainly need to write one if you need a bank loan.

But even if you’re not seeking funding, writing a business plan increases your chances for sustained growth .

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• What to include in your business plan
• Elements of a business plan
• Key sections
• Example and template

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How to Open a Body Shop and Succeed

As with any kind of business, starting a body shop requires careful planning. Even the most experienced technicians in an advanced facility can’t succeed without the proper structure and execution. 

Before opening a body shop, every owner needs to create a business plan that outlines every component of their operations, from strategy to staff and outreach initiatives. Most importantly, you’ll want to implement KPIs that allow you to monitor your success over time. 

Here’s how to do it right. 

Develop a Business Plan

The first step in starting an auto body shop is to develop a business plan. This should include your vision for the business, including how your business will be managed, which components make it special, and how it will reach customers. 

To break it down, a body shop business strategy should include the following:

• Service standards: Service standards should outline what you provide to your clients and how your shop meets their needs. These standards will tie into your shop’s mission.   
• Financials: In most cases, shop owners require a variety of funding sources, including investors, loans, and personal assets. While working on a budget , you’ll want to account for these as well as expected expenditures on staffing materials.
• Market research: Undoubtedly, your body shop will have local competitors. Analyze how they conduct business and create a plan that allows your business to carve its own niche or outperform competitors. 

Once you have your business plan in order, you need to get set up. This includes obtaining licenses and permits, choosing a location, and purchasing the proper equipment and tools. 

As far as paperwork, you will need to obtain the necessary licenses and permits from the local government, as well as any other regulatory bodies. You should also consider getting liability insurance. 

Next, you’ll want to consider your location. Will you be purchasing an existing shop or building a new one from scratch? Either way, you’ll need to purchase a variety of equipment and tools , including lifts, air compressors, welding tools, and painting supplies. 

While accomplishing all of this work, it’s important to get help where you need it. Naturally, you’ll need to hire staff to work in your shop once it’s open, but you’ll also want to consider contractors who can help you get the shop up and running. In particular, accountants and marketing professionals can help you square away some of the facets of strategy that are less related to automotive repairs, allowing you to focus on what you do best. 

In many cases, auto repair software can streamline some of these processes. BayIQ, for example, can help you implement customer loyalty programs, manage marketing efforts, and utilize online scheduling functionalities.

Launch Marketing Initiatives

Once you have your business up and running, you need to make sure customers know that you exist. You can do this through a variety of auto body shop marketing strategies , such as TV and radio ads. However, one of the most effective methods is to create an auto shop website . 

A website serves as a digital storefront, allowing people to find your body shop online, learn about its services, and access contact information. Your website will also serve as a hub for email, text, and paid media campaigns. 

For example, when emailing clients about an upcoming discount or promotion, you’ll need a place to take them from the email. In most cases, this will be a landing page on your website that has a clearly written call to action. 

Monitor KPIs and Adjust as Needed

Once you have your business up and running and your marketing strategies in place, it’s important to create and monitor your key performance indicators (KPIs). While these will vary slightly by business, your body shop will most likely track the number of clients in a given month, online customer reviews, and revenue. 

Regardless of which KPIs you choose to emphasize, you’ll want to constantly track them. This allows you to see how your different initiatives are performing over time and fine-tune them as needed. 

Gear Up Your Marketing with BayIQ

When launching a body shop, owners have their hands full with staffing, facility, and financial concerns. In order to give the proper attention to each component of your business strategy, it’s often best to rely on software. 

Made specifically for auto body shops, BayIQ is a software platform that helps shop owners manage all aspects of the client experience. Whether you’re looking to start an email marketing campaign, set up automated text reminders to clients, or implement a client loyalty program, BayIQ streamlines the process and automatically tracks the performance of these initiatives. 

BayIQ can also give your shop website appointment booking features. By allowing clients to book services on their own, your team can focus their efforts on providing an exceptional experience within the shop. Request a demo to see for yourself!

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Launch Your Body Shop Business with This Essential Checklist

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Welcome to our comprehensive guide on how to open and launch a revolutionary body shop and collision repair business in 9 essential steps! As the demand for auto body repair services continues to grow, it is crucial to develop a solid business plan, secure funding, and implement eco-friendly solutions to stand out in the competitive market.

According to IBISWorld, the auto body shop industry in the United States generates an estimated $48 billion in revenue annually and is projected to grow at a steady rate in the coming years. By following our checklist and incorporating innovative practices such as online appointment booking and eco-friendly repair solutions, you can position your business for success in this thriving industry.

From securing permits and licenses to forming strategic partnerships and implementing cutting-edge technology, our guide will provide you with the necessary tools and strategies to launch a successful body shop and collision repair center that meets the needs of today's environmentally conscious and tech-savvy customers.

• Develop a comprehensive business plan.
• Create financial models for forecasting.
• Secure funding through various sources.
• Obtain necessary permits and licenses.
• Incorporate eco-friendly solutions into operations.
• Select an ideal facility location.
• Implement cutting-edge technology for efficiency.
• Cultivate strategic partnerships for growth.
• Execute marketing strategies for successful launch.

9-Steps To Start a Business

Business Plan Creation

Developing a comprehensive business plan is the crucial first step in opening a Body Shop and Collision Repair business. This plan serves as the roadmap for your business, outlining all aspects of your operation and strategy.

Here are some key components to include in your business plan:

• Business Goals: Clearly define your goals for the Body Shop and Collision Repair business. Whether it's to become the top repair center in your region or to offer the most eco-friendly solutions, make sure your goals are specific and achievable.
• Target Market: Identify your target market for the Body Shop and Collision Repair business. Understand the demographics, preferences, and needs of your potential customers to tailor your services accordingly.
• Competitive Analysis: Analyze the competition in the Body Shop and Collision Repair industry. Identify key players, their strengths and weaknesses, and how you can differentiate your business.
• Marketing Strategies: Outline your marketing strategies for promoting your Body Shop and Collision Repair business. This may include online advertising, social media campaigns, partnerships with local businesses, and more.
• Operational Procedures: Detail the day-to-day operations of your Body Shop and Collision Repair business. This may include staffing requirements, repair processes, customer service protocols, and more.

Tips for creating a successful business plan:

• Be realistic: Make sure your business goals and financial projections are grounded in reality to attract potential investors.
• Update regularly: Your business plan should be a living document that evolves with your Body Shop and Collision Repair business. Regularly update it to reflect changes in the market and your operation.
• Seek feedback: Get input from industry experts, mentors, and potential investors to ensure your business plan is well-rounded and impactful.

Financial Modeling

Creating detailed financial models for your Body Shop and Collision Repair business is essential for understanding the financial viability of your venture. By projecting revenue, expenses, and profitability, you can make informed decisions and attract potential funding from banks or investors.

Revenue Projections: Start by estimating your potential revenue streams. Consider the services you will offer, pricing strategies, and market demand. Factor in seasonal fluctuations and growth projections over time.

Expense Forecast: Next, outline all your expenses, including rent, utilities, salaries, equipment, supplies, and marketing costs. Be thorough in identifying both fixed and variable expenses to create an accurate financial model.

Profitability Analysis: Use your revenue projections and expense forecast to determine the profitability of your Body Shop and Collision Repair business. Calculate your gross margin, net profit margin, and break-even point to assess the viability of your business.

Tips for Financial Modeling:

• Include a contingency fund in your financial model to account for unexpected expenses or fluctuations in revenue.
• Regularly review and update your financial models to reflect changes in the market, expenses, or revenue projections.
• Seek the guidance of a financial advisor or accountant to ensure the accuracy and reliability of your financial models.

By creating detailed financial models, you can gain a clear understanding of the financial health of your Body Shop and Collision Repair business. This information will not only help you make informed decisions but also demonstrate to potential investors or lenders that your business is financially sound.

Funding Acquisition

Securing funding is a critical step in opening a successful Body Shop and Collision Repair business. Without adequate capital, it can be challenging to cover the costs of equipment, facility rental, staff wages, and other expenses associated with running a collision repair center. Here are some key steps to explore various funding options and secure the necessary capital:

• Calculate the total amount of capital required to start and operate your Body Shop and Collision Repair business. Consider expenses such as equipment purchase or lease, facility rent, employee salaries, marketing costs, and working capital.
• Identify the specific funding needs for different aspects of your business, such as technology investments, eco-friendly solutions, and marketing initiatives.
• Research different funding options available for Body Shop and Collision Repair businesses, such as small business loans, venture capital, angel investors, or government grants.
• Consider the advantages and disadvantages of each funding source and determine which option aligns best with your financial goals and business objectives.
• Develop a detailed financial model that outlines your revenue projections, expenses, and profitability forecasts for your Body Shop and Collision Repair business.
• Include realistic estimates for equipment costs, repair services pricing, insurance claims processing, and any other revenue streams associated with your business.

Pro Tips for Securing Funding:

• Present a compelling business plan and financial model to potential investors or lenders that clearly outlines your vision, target market, competitive advantage, and growth strategy.
• Highlight the innovative aspects of your Body Shop and Collision Repair business, such as your seamless online appointment booking system, on-site car rentals, and eco-friendly repair solutions, to attract funding partners who align with your values and mission.
• Be prepared to pitch your business idea to different stakeholders, adapting your presentation to emphasize the unique selling points that resonate with each funding source.

Permits And Licenses

Before you can officially open your Body Shop and Collision Repair business, you must obtain all the necessary permits and licenses to operate legally. This process involves obtaining local, state, and federal permits to ensure compliance with regulations and standards in the automotive repair industry.

Obtaining permits and licenses is a crucial step in establishing your Body Shop and Collision Repair center as a reputable and trustworthy business in the industry.

Tips for Obtaining Permits And Licenses:

• Research the specific permits and licenses required for operating a Body Shop and Collision Repair business in your area.
• Consult with local authorities or regulatory agencies to understand the application process and necessary documentation.
• Keep track of expiration dates for permits and licenses to ensure ongoing compliance with regulations.

Permits and licenses that may be required for your Body Shop and Collision Repair business include environmental permits, business operation licenses, and special automotive repair certifications. These permits and licenses demonstrate your commitment to operating a legitimate and professional establishment.

By obtaining the necessary permits and licenses, you can legally operate your Body Shop and Collision Repair center, providing customers with the assurance that their vehicles are in good hands.

Eco-Friendly Solutions

Integrating eco-friendly repair solutions into your Body Shop and Collision Repair business not only helps protect the environment but also gives you a unique selling proposition in the market. By researching and implementing eco-friendly practices, such as using water-based paints and energy-efficient equipment, you can attract environmentally conscious customers and set yourself apart from competitors.

Compliance with environmental regulations is essential to ensure that your business is operating ethically and sustainably. By following these regulations, you can demonstrate your commitment to reducing your environmental impact and building a responsible brand image.

Tips for integrating eco-friendly solutions:

• Research alternative materials and processes that are more environmentally friendly.
• Invest in energy-efficient equipment to reduce your carbon footprint.
• Train your staff on sustainable practices to ensure compliance with eco-friendly standards.

By incorporating eco-friendly solutions into your Body Shop and Collision Repair business, you not only contribute to a greener future but also attract customers who prioritize sustainability. Make sure to communicate your eco-friendly initiatives effectively in your marketing efforts to showcase your commitment to environmental responsibility.

Facility Location

One of the most crucial decisions in starting a Body Shop and Collision Repair business is selecting the right location for your facility. The location you choose will not only impact your accessibility to customers but also play a significant role in the success of your business.

When identifying and securing a strategic location for your Body Shop and Collision Repair business, there are several factors you need to consider:

• Accessibility: Choose a location that is easily accessible to your target market. Ideally, your facility should be located in a high-traffic area with good visibility to attract potential customers.
• Space: Ensure that the location provides adequate space for repair work, customer parking, and on-site car rentals. A spacious facility will not only enhance the efficiency of your operations but also provide a comfortable experience for your customers.
• Demographics: Consider the demographic profile of the area where you plan to open your Body Shop and Collision Repair business. Choose a location that aligns with your target market to maximize the potential for success.
• Competition: Research the competition in the area and assess the market saturation. Avoid opening your business in an area with too many existing competitors unless you have a unique selling proposition that sets you apart.

Tips for Selecting a Facility Location:

• Conduct a thorough market analysis to identify potential locations that meet your criteria.
• Consider the proximity to major roadways and highways for easy accessibility.
• Visit potential locations in person to assess the space and surrounding environment before making a final decision.

By carefully evaluating these factors and choosing a strategic location for your Body Shop and Collision Repair business, you can set yourself up for success and create a strong foundation for your venture.

Technology Implementation

Implementing the right technology is essential for the success of your Body Shop and Collision Repair business. By deploying a reliable and user-friendly online booking system, you can streamline appointment scheduling and enhance customer experience. Investing in technology that supports operational efficiency, customer management, and possibly virtual vehicle assessments can give your business a competitive edge.

Here are some key steps to ensure a smooth technology implementation process for your Body Shop and Collision Repair business:

Tips for Technology Implementation:

• Choose a user-friendly online booking system that allows customers to easily schedule appointments and receive notifications.
• Invest in software that integrates with your existing systems to streamline operations and improve efficiency.
• Provide training for your staff to ensure they are proficient in using the technology and can assist customers effectively.

By leveraging technology effectively, you can not only streamline your business operations but also provide a seamless experience for your customers. From online appointment booking to virtual vehicle assessments, technology can help you stay ahead in the competitive Body Shop and Collision Repair industry.

Partnership Development

Establishing strong partnerships is essential for the success of your Body Shop and Collision Repair business. By collaborating with car rental companies for on-site car rentals, you can ensure continuous customer mobility while their vehicles are being serviced. Additionally, forming strategic partnerships with parts suppliers and other vendors will help you secure better rates and create reliable supply chains.

Tips for Successful Partnership Development:

• Research : Take the time to research potential partners to ensure they align with your business values and goals.
• Communication : Establish clear communication channels with your partners to foster strong relationships and address any issues promptly.
• Contracts : Clearly outline the terms of the partnership in contracts to avoid any misunderstandings or disagreements in the future.

By collaborating with car rental companies, you can offer added convenience to your customers, making their experience with your Body Shop and Collision Repair center more seamless. Building partnerships with parts suppliers and vendors will not only save you money but also ensure that you have access to high-quality parts and materials for your repair services.

By forming strong partnerships, you can position your Body Shop and Collision Repair business for long-term success and growth in the competitive automotive industry.

Marketing And Launch

Developing a solid marketing strategy is crucial for the success of your Body Shop and Collision Repair business. Highlighting your unique selling propositions, such as eco-friendly practices, convenience of online booking, and availability of on-site car rentals, will set you apart from competitors and attract customers who value these benefits.

Creating a buzz around your business launch is essential to attract initial customers and generate excitement in the community. Consider planning a launch event to showcase your services, offer special promotions, and build relationships with potential clients. This event can help create awareness and establish your brand in the market.

Utilizing digital marketing channels is key to reaching a broader audience and driving traffic to your Body Shop and Collision Repair business. Implementing a strong online presence through a professionally designed website, active social media accounts, and targeted online advertising campaigns can help you connect with potential customers and increase brand visibility.

Tips for Marketing and Launch:

• Utilize social media: Leverage platforms like Facebook, Instagram, and Twitter to promote your business, engage with customers, and share updates about your services.
• Offer promotions: Attract new customers and encourage repeat business by offering special discounts, referral rewards, or loyalty programs.
• Partner with local businesses: Collaborate with auto dealerships, insurance companies, or car rental agencies to cross-promote your services and expand your customer base.

Starting a body shop and collision repair business requires careful planning and execution. By following the 9 steps outlined in this checklist, you can set yourself up for success in this competitive industry.

• Develop a comprehensive business plan to outline your goals and strategies.
• Create detailed financial models to understand the financial viability of your business.
• Secure funding through various options such as loans, investors, or grants.
• Obtain all necessary permits and licenses to operate legally.
• Integrate eco-friendly solutions to differentiate your business and attract environmentally conscious customers.
• Choose a strategic location for your facility and invest in technology to streamline operations.
• Build partnerships with key suppliers and vendors to ensure a reliable supply chain.
• Develop a marketing strategy that highlights your unique selling propositions and plan a successful launch event.

By following these steps, you can launch a successful body shop and collision repair business that meets the needs of modern consumers and sets itself apart from the competition.

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• Sample Business Plans

Auto Repair Shop Business Plan

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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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. 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 with good technical and soft skills to understand your customer’s problems better.

Formulate marketing strategies

Marketing your business is essential to attract customers and building 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 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.

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 Start an Autobody Shop

Regardless of the state of the economy, auto accidents always occur on a regular basis and people will always be in need of auto body work. Because of this, opening a auto body shop could be a potentially lucrative career opportunity. While operating an auto body shop can be hard work, it can also be very rewarding as you get to work with new people everyday and help them solve a legitimate problem. Before getting involved in this industry, you will have to complete a few important steps along the way.

• Learn everything you can about auto body work and painting cars. Those who can fix damage to a vehicle are valuable and this skill is sometimes difficult to learn. You will most likely need to attend a vocational or technical auto repair program. You may also want to work in another auto body shop for a certain amount of time so that you can learn the basics.
• Create a business plan for your auto body shop. This should include information about what services you offer and your ultimate business purpose. You should also include financial projections such as your revenue and expected expenses. It should also include a detailed analysis of your competition in the area.
• Secure funding for your auto body shop. You could try to pursue funding from investors or you could seek out a loan from a commercial lender. You will need to use the business plan to help your investors or lenders see your business vision.
• Find a location for your auto body shop. The location will need a garage with several bays and it will also need some office space attached. This may require you to buy or build a shop or you could lease one that is available. Try to find a shop in a highly visible area as convenience will be important for your customers.
• Set up the legal aspects of your business. This will include setting up a limited liability company or a corporation so that you can limit your personal liability. You will also need to purchase a business license from your city and register your business name with the county clerk.
• Purchase an insurance policy for your auto body shop. This should include general liability protection as well as property coverage. You will also need workers' compensation insurance for your employees.
• Hire mechanics for your business. In most cases, you will need to hire mechanics that have been certified and have been through a training program.
• Develop a relationship with a parts supplier. Part of your competitive advantage will revolve around how affordable your services are and getting a good deal on parts can help.
• Buy the equipment that you will need for your shop. This will include lifts, tools and the initial parts inventory.
• Advertise your auto body business. With these businesses, you can mass market through the radio and on television, as well as in print. You may even want to offer discounts and coupons to new customers.

More For You

How to start a tombstone business, how to go about opening a do it yourself car wash, owning an automotive service shop, how to open a baby store, how to start a small auto repair business.

• Bplans.com: Auto Repair Service Business Plan
• Gaebler: How to Start an Auto Body Repair & Painting Business
• Nolo: Start Your Own Business -- 50 Things You'll Need to Do

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• Put extra care into your initial customers. You want to develop a positive buzz about your business as word-of-mouth can be very helpful.

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.

Auto Repair Business Plan Template

Written by Dave Lavinsky

Auto Repair Business Plan

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

Download our Ultimate Business Plan Template here >

What is an Auto Repair Business Plan?

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

Why You Need a Business Plan for a Auto Repair Business

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

Sources of Funding for Auto Repair Businesses

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

Finish Your Business Plan Today!

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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

Competitive Analysis

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

Direct competitors are other auto repair businesses.

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

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

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How to Open an Auto Body Shop

Last Updated: March 17, 2024 Approved

This article was co-authored by Madison Boehm . Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 100% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 176,676 times.

Opening an auto body shop can be a personally rewarding and financially lucrative business decision. However, knowing how to make a vehicle look like new isn't enough to ensure business success. Foremost, you need to develop a business plan that will help you acquire the funding necessary to open a business and ensure that operations run smoothly right from the start! Fortunately, you can readily get help taking the necessary steps to get an auto body shop up and running.

Generating an Actionable Business Plan

• Start by writing a detailed company description. For instance, address whether you’ll have a full-service shop of specialize in one service. Will it cater to a specific clientele, such as Japanese cars, or provide service to any type of vehicle?
• A well-developed business plan will help at every step of the process. In particular, you'll benefit from more favorable lease agreements, credit lines, conversations with potential vendors, funding opportunities, and even operational practices.
• Don’t think of a business plan as a tool to help you run a business. Instead, develop your plan as a way to decide whether you can move forward opening an auto body repair shop in a particular area.

• The SBA can also link you with local organizations, individuals, and resources to help plan, finance, and open a business.
• Further, the SBA may be able to link you with a successful business professional that is willing to donate their time to help a small business. If this opportunity is available, ask about working with someone who has experience working with auto shops.

• While other auto-body repair shops may not want to help the competition, contact other local businesses that work on automobiles in a different capacity. For instance, parts stores or junkyards will likely know a lot about the local automotive community, including potential customers.
• Particularly if the ownership of your business will be shared, or you’ll be taking out loans to cover start-up costs, make sure to talk to both a lawyer and a financial professional while crafting your business plan.

• Auto-repair shops must have permits to do business, as well as specific permits to perform particular types of jobs, such as paint-removal and painting.
• It’s helpful to know about any pertinent regulations during the planning phase, to incorporate any potential costs or other issues associated with meeting these requirements.

Assessing Your Start-Up Costs

• Forecast these figures for the first three years after opening.
• Decide on the prices your shop will charge for specific services. These can be used alongside your anticipated customer projections to determine revenue estimates.
• Establish a “break-even” point. This is the point at which the business will be generating revenue, as opposed to spending money as it gets up and running. It may take longer to “break even” than you initially realize.

• Know that SBA-insured loans are one of the best sources of funding for a small business. This is another reason you should follow the SBA’s guidelines when developing your business plan.

• For example, if you estimate needing $100,000 dollars' worth of equipment to open the shop, plan to secure funding for $130,000 dollars' worth of equipment.
• Make a detailed list of all the equipment you’ll need and its cost. This should include everything: lifts, wheel balancers, hoists, paint guns, paint mask, and the decorations in the reception area.
• If you intend to lease some equipment, consider a SBA-backed loan, which may offer you a low interest loan with no down payment to pay for equipment.

• To find out about franchising options in your areas, contact the corporate offices for the auto body repair "chains" that are popular in your state. Be sure to contact them all, and be aware that they may be willing to meet or beat another franchise's offer. Seek the advice of an account and/or lawyer regarding any specific legal or financial questions you have.
• Of course, there are costs associated with franchising. The bottom line is that you'll make a smaller portion of what your shop pulls in, though this depends on your specific franchising agreement. On the other hand, you may also avoid costs that may be incurred if you open a business on your own and make errors that a franchising agreement may have prevented.

Researching and Appealing to Your Market

• Specific statistics to look out for include the number, age, and types of vehicles in the area you’re considering. Additionally, find out what insurance companies are commonly used in the area, and how many similar businesses you’d be competing with.

• Further, they may help you with marketing. They will have access to marketing data, and will be up-to-date on new technologies and marketing practices. You can also likely find quick assistance from business partners regarding layout and design of your marketing materials.
• Establish positive relationships with specific employees at suppliers. This will likely help ensure the supply channels you will rely on once your business is open run smoothly.

• Reach out to the local auto-restoration community. People who frequently work on classic or antique cars will often work with auto body shops. You can even offer people who are active in these communities discounts, knowing that they may valuable sources of recurring business. [11] X Research source

• Feel free to be direct. Ask insurance company representatives how you can get on the recommended repair facilities list.

Staffing, Registering, and Certifying Your Shop

• Include detailed estimates of anticipated labor costs in your business plan as well. For instance, employer-paid taxes and benefits will likely lead to high labor costs than you would foresee based only on the going hourly rate for auto techs.

Expert Q&A

• Always maintain an email list of customers. This will allow you to send them information about specials, services, and other marketing material. Thanks Helpful 0 Not Helpful 0
• Ask customers you know were happy with your service to write reviews on websites like Yelp. These websites often bring substantial amounts of traffic to small business. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ https://www.bodyshopbusiness.com/opening-a-new-collision-repair-shop/
• ↑ https://www.gaebler.com/How-to-Start-an-Auto-Body-Repair-and-Painting-Business.htm
• ↑ https://dmv.ny.gov/repair/open-repair-body-shop

About This Article

If you’re thinking about opening an auto body shop, there are a few things to consider. Choose between a full-service shop or one that specializes in one type of service. If you want to minimize the work it takes to build your brand and customer base, consider opening a franchise auto body shop. Once you know what kind of shop you want, work out your budget and write a business plan for it. Look for a location that’s easily accessible from a main road and has little to no competition nearby. You’ll also need to hire some friendly and experienced staff to help you run the shop. Don’t forget to license your shop and register with your state’s DMV before you start operating. For more tips, including how to market your auto body shop, read on! Did this summary help you? Yes No

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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.

Start your business today!

• Email Address *

3.0 Staffing

AUTOMOTIVE TIRE TECHNICIAN

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

Requirements

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

4.0 Products & Services

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

WHEELS & RIMS

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

ACCESSORIES

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

5.0 Operations

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

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

5.2 Payment & Financing

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

5.3 Hours of Operation

Monday 9AM – 6PM

Tuesday 9AM – 6PM

Wednesday 9AM – 6PM

Thursday 9AM – 6PM

Friday 9AM – 6PM

Saturday 9AM – 5PM

Sunday – CLOSED

5.4 Equipment

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

Have Questions? Looking To Get Started?

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6.0 Market Analysis

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

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

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

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

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

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

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

6.1 Market Trends

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

6.2 Competitive Advantage

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

• We are uniquely equipped to utilize the sales from all other stores to give us substantial buying power in obtaining our products cheaper from suppliers; subsequently, allowing for more affordable and competitive pricing for customers.
• Through our agreement with Driver Capital No Credit Financing, we are able to appeal to a vast customer base by eliminating insufficient credit as a barrier to purchase.
• We will be the only dealer in Saskatoon offering the extremely popular brand, Armed Wheels.

6.3 Risk Analysis

Total vehicle-kilometres.

Tires most often degrade from extended use and age. As a result, the more a vehicle is driven, the more often replacement tires or retreads will be required. The number of total vehicle-kilometres was expected to increase in 2020. However, due to the COVID-19 pandemic, people have reduced nonessential travel and have commuted less by car, leading to an expected decline in the number of total vehicle-kilometres driven, which poses a potential threat to the industry.

World price of crude oil

High gasoline prices, which are dictated by crude oil price trends, generally decrease vehicle sales and cause consumers to switch to alternative modes of transportation. For instance, consumers may use public transportation when gasoline prices are high instead of driving their own vehicles and incurring the expense of gasoline. As a result, when consumers use their cars less, they will not require tires as quickly, thus decreasing industry demand.

Per capita disposable income

Per capita disposable income influences the timing and value of tire purchases. Consumers with more disposable income are quicker to replace worn tires and are more likely to purchase expensive, high-performance tires. Alternatively, consumers with less disposable income may be hesitant to purchase expensive products or to replace worn tires.

New vehicle sales

New vehicles are sold with a set of factory-installed tires. Increases in vehicles sold boost industry revenue for the long term as it increases the base of potential vehicles that need replacement tires. In the short term, new cars typically do not need replacement tires. When consumers buy new vehicles over maintaining their current ones, industry revenue is negatively affected. As of its last update, new vehicle sales were expected to increase in 2020. Due to the coronavirus pandemic, however, consumers are expected to purchase fewer new vehicles, which represents a potential opportunity for the industry. 3

7.0 Sales & Marketing Plan

Our Sales & Marketing Plan is founded on the strength of Your Canadian Auto Shop’ well-established brand.  The company has a proven marketing strategy that targets multiple social media platforms in order to attract an array of target customers. The Saskatoon shop will have the benefit of people already recognizing the name and stellar reputation of the Canadian Custom Autoworks’ brand.  Our Saskatoon Shop will leverage the brand through signage, placement on the company’s website, and awareness on social media.

7.1 Target Customers

HOUSEHOLD CONSUMERS

The Tire Dealers industry in Canada serves a broad range of customers, with everyday household consumers accounting for the vast majority of the industry’s total revenue.

• 18 – 65 years of age
• All income levels, as we deal in lower level, mid-level and premium level products
• Resides in the Saskatoon Metropolitan Region (population of 325,806 – 2019 Q4)
• Major Ethnicities (European 72.2%, Aboriginal 11.2%, South Asian 4.7%, Filipino 3.9%) 4
• Drives a motor-vehicle

BUSINESSES FOR END USE

Businesses for end use, including trucking companies, construction companies, farmers and mining outfits, represent the second-largest source of revenue for industry operators.

• We will establish relationships with local companies, in an effort to provide wheels and tires for their fleets.

DEALERSHIPS

• Kia of Saskatoon, Ens Toyota, Ens Lexus, Oakwood Nissan, Bema Autosport BMW, Porsche Centre Saskatchewan, Saskatoon Mitsubishi, Mercedes-Benz Saskatoon, Saskatoon South Hyundai, Volvo Cars Saskatoon, Acura Centre of Saskatoon, Jaguar Saskatoon, Mid City Auto Centre, Saskatoon Auto Connections Sales Centre, Wheaton GMC Buick, Subaru of Saskatoon, Studio Fiat, Mainway Mazda, Bright City Auto Sales

7.2 Key Channels

We understand the nature of our referral based industry.  Our focus is to provide the most professional experience available, consequently laying the groundwork for a consistent stream of referrals.

SOCIAL MEDIA

Social media will reach our target customers in two ways; pre-established Your Canadian Auto Shop pages will drive wider brand recognition and messaging, while our location will create a Facebook page for our community of direct customers in the Saskatoon area.

GOOGLE MY BUSINESS

A Google My Business account will be established to receive reviews from customers, to assist customers with finding the shop, to keep the public up to date on hours of operation, and provide additional contact information.

GOOGLE SEARCH

The company’s website will be imperative in assisting buyers through the sales process.  By learning more about our products in one central place, people can transition from prospects to paying customers quickly.

Let's Get Started!

7.3 swot analysis.

8.0 Financial Plan

8.1 Five Year Pro Forma Cash Flow Statement

Are you interested in seeing more business plan samples? Here is a variety of business plan samples   to help guide you through your entrepreneurial journey.  If you need any help in developing a custom business plan contact us here!

How can we help you?

Get in touch with us or visit our office

How to Start an Auto Body Repair Shop

What to expect from this post. First, you’ll find the steps to start your auto body repair shop then we will go through a few key points for you to consider before you start. Finally, you’ll get to the resources section to help you improve your knowledge of the auto body repair industry.

Let’s start with the steps to consider.

Steps to Starting an Auto Body Shop

1. decide if running a business is right for you.

The first step is to consider whether starting your own business is right for you and whether you have the required skills.

More information can be found in the following article.

• Business Startup Considerations

2. Important Research

Business research.

A thorough understanding of an auto body shop will make you more successful. You’ll get insider information about an auto body shop from people in the industry from the link below.

See  An Inside Look Into the Business You Want To Start  for more.

Target Audience

Advertising successfully requires knowing who you are targeting. Your business will be easier to operate and set up if you know more about your target audience.

For more, see,  How To Understand Your Target Market .

3. Setup Considerations

A clear vision of how you’ll operate your auto body shop can make the startup process easier. Of course, you may change your goal as you conduct your research, but for now, start with one goal.

To create a clear vision, you can answer questions similar to the following:

• Are you planning a part-time or full-time operation?
• Are you planning on working from home or in a commercial location?
• Are you planning on one or multiple locations?
• Will you focus on restoration or accident repair?
• Will you be doing all the work yourself or hiring staff to help?

4. Choose The Location of Your Shop

It is important to choose the right location for success. A poor location will make things difficult, whereas having a good one will help you succeed. A market that isn’t saturated and where auto body repair is in demand is ideal.

For more, see  Choosing The Best Location for Your Business.

5. Choose a Name for Your Shop

If you want to register a business name, make sure it is memorable, easy to pronounce, and catchy. The domain name for your website should also match.

Here are some links to learn more:

• How To Register a Business Name
• Name Ideas for an auto body shop
• Registering a Domain Name For Your Business

6. Registration of Your Business

Choosing the right business structure, obtaining the necessary permits, and registering your business are all important steps to operating your business legally. Your business structure may vary depending on your financial status and the size of your operation.

See,  How to Register Your Business  for all the details.

7. Corporate ID Considerations

A corporate ID consists of a few components like your logo, business cards , stationary, promotional items, brochures, etc.

You can start with a logo and business cards and add the necessary parts. However, you want to ensure you have a professional design to impact your customers positively.

See  A Complete Introduction to Corporate Identity Packages  for more.

8. Calculate Your Startup Cost

As soon as your business opens, you’ll need to determine how much money you’ll need to operate it. Research your costs and identify the items you’ll need. You may discover other issues as you go.

For more, see,  Estimating Start-up Costs: Are you Missing Anything?  Also, see,  Business Expenses To Consider.

9. Writing Your Business Plan

A business plan will help you get a clear vision of your business, keep you on track, and help you get a loan or investors. Click on the link below to learn how to create one.

For details, see  How to Write a Business Plan.

10. Banking Setup

You’ll have to keep your personal and business funds separate. Opening a separate checking account is the best way to do this. You should also consider getting a merchant account to accept credit and debit card payments.

See the following articles for more information about business banking.

• Choosing a Business Bank
• How To Open a Business Bank Account
• What Is a Merchant Account, and How to Get One?

11. Get a Startup Loan

There are a lot of obstacles to getting a startup loan since lenders consider new businesses high-risk rather than taking a risk on a startup.

It is possible to obtain a business loan with a professional business plan and collateral that make sense to the lender.

For ideas, see our article,  Getting a Small Business Loan.

12. Software Setup

You may use software to manage your business, stay organized, and evaluate important data.

I advise you to research and look at reviews for the software packages you are considering to understand what others have experienced.

Visit the links below to learn more about the software that can help you run your business successfully.

• Auto Body Shop Software
• Small Business Software to Consider

13. Getting Your Shop Insured.

Your business must be insured before you open. Insurance brokers help you get the coverage you need for your customers, employees, and property. You may also want to consider professional liability insurance.

More information about business insurance can be found below:

• What to Know About Business Insurance
• Auto Body Shop Insurance  search results

14. Choosing a Supplier

It can be beneficial to streamline operations by choosing the right supplier while disrupting operations by selecting the wrong supplier. In addition, having a reliable supplier is crucial to building a long-term business relationship.

For all the details, see,  How To Choose a Supplier  for tips and insights.

15. Shop Setup.

You will need to focus on the layout of your operation for this step.

First, organize your shop so you know where to put things away and where to find them.

An attractive layout will leave a positive impression on customers. The same is true for your office, where you spend most of your time working.

The time has come to put up your business sign that indicates your operation is nearing the open-for-business date.

Here are some articles you might be interested in:

• Here are Considerations for The Setup of Your Office
• All About Company Signs

16. Website Setup

Your website is a tool for communicating with consumers and marketing your business.

To impress consumers, you must have a professional design, and your site must be snappy and mobile-friendly.

In addition, you need to acquire a domain name and sign up for a good hosting account to ensure complete control over your website.

For more, see our page on  How to Build a Website for Your Business .

17. Support Team Considerations

External support teams consist of individuals you hire for their professional services or as consultants. No matter how long it takes to build your team, you don’t have to wait until it is complete before you start using them.

Take the time to list professionals you might need on your team. For example, your team may include a lawyer, financial advisor, accountant, banker, IT specialist, marketing expert, etc.

For more, see,  Building a Team of Professional Advisors.

18. Hiring Considerations

When it comes time to hire people, don’t hire more than you need. If you have too many employees, your costs will go up, and your profits will go down. Instead, ensure that each person applying for a job is a good fit.

Hiring mistakes wastes time, money, and resources that could have been used towards productivity. In addition, if the person doesn’t work out, you have to start the hiring process all over again, which can be frustrating.

For more, see,  How and When to Hire a New Employee.  You may also be interested in  Common Job Positions for a Business.

Considerations Before Opening Your Doors To The Public

Here are a few key points to consider when starting an auto body shop.

Business Owner Considerations

Owning a business isn’t for everyone. Most of the time, it requires time, effort, a lot of hard work, and a large investment. If you’re considering starting your own business, keep these factors in mind. Ensuring you’re on the right path includes getting into business for the right reasons, determining your skillset, and other considerations.

You can find all the details on our page about  Business Start-up Considerations .

Body Shop Overview

This type of business consists of repairing cars that have been in a collision and vehicles that need repainting, are rusted or need a full restoration.

Most of the time, you’re dealing with people who have had an accident. People who have had an accident are usually upset or shaken up.

One of your skills as a business owner is to have the ability and the patience to listen to all the stories. Listening to the stories builds strong customer relationships, which is a good opportunity for you.

One thing you could keep in mind with this type of business is, that you must stay on schedule. If you promise you’ll have the vehicle finished in two weeks, then it’s important that you follow through on that promise, because people are depending on that vehicle.

Skill Set and Traits:

• Attention to detail.
• Giving accurate estimates.
• Good measuring and part aligning skills.
• Metal fabrication.
• Metal straightening.
• Tearing down areas for repair.
• Installing new parts and aligning them.
• Sanding and body repair.
• Rust repair.
• Body preparation.
• Paint skills.
• Frame straightening.
• Reassembly skills
• Common business skills

Employee Considerations:

• Auto body mechanic
• Metal Fabricators
• Business Manager
• Part manager
• Common staff positions needed to run some businesses

Hours of Operation:

This is usually a nine-to-five business, although you’ll find yourself working overtime to get some jobs done on time when you are busy.

• Air compressor with sufficient storage and enough power to keep you with your needs.
• Air tools: air ratchet, air chisel, impact wrench, assorted air tools.
• Frame and body straighteners.
• Paint booth.
• Spray guns and filters.
• Dual-action sander.
• Slide hammer.
• Stud welder.
• A variety of clamps.
• Specialty hammer set for auto body repair.
• Suction cup dent pullers.
• MIG or TIG welders.
• Metal shaping tools.
• Vehicle hoist.
• Engine hoists.
• Transmission jack, jack stands, floor jacks.
• Diagnostic scanners.
• Fender covers.
• Air conditioning tools.
• Battery chargers/jump starters.
• Car dollies.
• Headlight aimers.
• Gear pullers.
• Parts washers, pressure washers, parts handlers/stands, vacuums, floor fan.
• Sandblasters.
• Shop Presses.
• Bench grinders, work tables, benches, storage shelving, and bins.
• Feeler gauges, assorted calipers, micrometers.
• Assorted wrenches.
• Assorted sockets.
• A complete set of regular tools e.g., hacksaw, hammers, screwdrivers, pliers, vise grips, Allen wrenches, chisels, measuring tapes, rulers, files, troubleshooting lights, extension cords, etc.
• A wide variety of assorted specialty tools that you will purchase over time and as needed.

Expenses and Operating Costs:

• In addition to our list of  common business expenses, your Bodyshop will require a budget for the ongoing cost of acquiring supplies, like paint, body filler, oxygen, acetylene, sandpaper grinding discs, drill bits, rivets, etc.
• See Our Page on Licenses and Permits

Marketing Ideas:

Running a business requires marketing. Without customers, it doesn’t exist. It is difficult to attract customers without marketing. Marketing need not be complicated. Your products and services are simply brought to the public’s attention through marketing. You can market your business by putting up a sign outside; telling others about your business is marketing; handing out business cards is also marketing. As you can see from these examples, marketing can be simple.

• Offer a loaner for your customers, whether you make a deal with the car rental or you invest in some low-cost vehicles.
• Offer free towing for customers who get their cars serviced at your shop.
• Make a deal with local businesses — give them fliers or business cards and offer them a percentage of the repair for each referral they sent to you. On the card, offer the customer a discount on services
• Approach local tow truck business owners and offer them a percentage or a referral fee for every customer they bring you.
• Make a brochure for vehicle maintenance such as auto detailing . These types of packages are good for keeping the car looking new and protecting it from rust. You can contact local businesses and work out a deal where they refer your services, and in return, you refer customers to them.

You can market your own business by trying one technique at a time, testing, and doing more of what works and less of what doesn’t.  Have a Look at the Latest Articles for Marketing an Auto Body Shop.

Pros and Cons:

• It can be a profitable business.
• You can gain repeat customers by doing great work at a reasonable price.
• It’s a stable business model.
• Deadlines are hard to keep.
• Working with a lot of problems.
• Dirty work with a lot of dust, especially when sanding.
• Painting gives off toxic fumes.
• Most repairs are time-consuming.
• Season affects business — For example, cold, snowy winter will result in more collisions, compared to summer, which will have fewer collisions due to weather.

Considerations:

• Start-up costs — If you started off with buying a building, top-of-the-line equipment, and have a lot of employees then you will have high monthly loan payments and expenses, which will cut into your profits.
• If you can’t give accurate estimates, you’ll lose money or lose customers.
• You have to balance and make enough money to pay expenses and grow while giving your customers a good deal. You need to have a strong customer base in order to keep up with expenses and payments.
• When times are slow, you need to work as if you are behind, because if you get bad weather conditions resulting in streams of collisions you will be overwhelmed with repairs and may have to turn business away.

Next, you will find a few resources to help you during the start-up phase and once your business has been established. Use these resources whenever you need them.

Auto Body Shops for Sale

Why don’t you consider buying an existing business before starting one from scratch? It has pros and cons.

These are some of the pros:

• The start-up phase is bypassed.
• The business’ success is already known.
• You acquire existing customers when you purchase a business.
• From the moment you take over the business, you earn revenue.
• The reputation of the business becomes yours.

There are some cons to buying an established business, including:

• Buying an established business is more expensive than starting one from scratch.
• When you buy a business , you get the good along with the bad.
• You’re better off starting from scratch if the business isn’t set up the way you want it if you’re making extensive changes.

Having said all that, it doesn’t hurt to look at listings. The worst that can happen is that you have gained a deeper understanding of what owning an auto body shop is like. See the latest Google search results for  auto body shops for sale.

Publications

Keeping up with the latest tips, insights, trends, and information regarding your industry is imperative. However, finding all the information in one place can be challenging.

You’ll find a list of publications that can help you stay current with the industry in the link below. I made it easier to find the information; all you have to do is use it.

It is recommended that you visit the link below at least once a month to stay informed about your industry.  Click here for the latest publications related to an auto body shop.

Industry Trends and Statistics

Analyzing industry trends and statistics may provide you with tips and insights you weren’t aware of. Trends and statistics can also help you figure out if the industry is improving, declining, or shifting.

Click Here for the Latest Google Search Results Related to Trends in the Auto Body Repair Industry.

Terminology

Knowing your industry is important for business owners. But, for now, you can wait to pick up the terms from experience, or you can look at glossaries to get started.

Search Results Related to Terminology in the Auto Body Repair Industry.

Your choice of supplies will affect your success. Choosing poor supplies can hurt your business. Therefore, you should get the best prices for your supplies while maintaining value and quality.

See the Latest Google Search Results for Auto Body Shop Supplies.

Associations

Being a member of an association is beneficial. Many association publications provide useful information. These companies also host events that you can attend to network with other industry professionals.

Click Here To View Associations Related to the Auto Body Repair Industry.  You may also want to check out our page for tips and insights about  Joining a Trade Association.

Top Auto Body Shops

Understanding what the market has to offer and pricing and other ideas is easier when you study other businesses. You may develop a unique idea or discover something you’re missing in your business by doing so. My focus does not solely rest on the competition. Instead, I like to be aware of what the competition offers and focus on offering the best products and services I can provide.

Search Google for the Top Auto Body Shops in Your Area.

Auto Body Repair Tips

Checking out the latest automobile body repair tips doesn’t hurt whether you’re an experienced technician or not. However, a little time spent and a refresher can be the worst that can happen.

Look at the search results for tips related to auto body repairs.

You can also use books to boost your knowledge of your industry. Non-fiction books are great because you don’t have to read them cover to cover; instead, you can use the table of contents or index to find the chapter you’re interested in.

View the Most Recent Google Search Results for Books related Auto Body Repair.

Your chances of success increase as you become more skilled and knowledgeable about your business. You can take a few minutes to browse the latest auto body shop training publications.

It’s a good idea to keep an open mind regarding training, especially if you’re familiar with the topic. In this way, you can review what you already know and pick up tips and insights for issues you’re unfamiliar with.

Google’s Search Results Related to Auto Body Shop Training.

You can find stories related to auto body shops by using Google News.

You can also set up a Google alert to receive notifications whenever something new is posted about the auto body repair industry.

See Google’s News Search Results Related to the Auto Body Repair Industry.

Videos on YouTube contain tips and insights you can use to expand your industry knowledge if you’re a visual learner.

Whenever you watch a video on YouTube, the related topics are worth noting. As a result, I can easily access topics I hadn’t thought about. Therefore, be on the lookout for these topics.

See the Most Recent Videos Related to an Auto Body Shop .

Privacy Overview

8 Tips for Running a Successful and Profitable Body Shop

Feb 16, 2023 | Blog , Body Shop Efficiency

Here are some tips to help you run a successful and profitable body shop:

Starting a body shop is rewarding but challenging, but with the right tips, you can make it a very profitable venture. Here are some of the top tips to help ensure your body shop is successful and lucrative:

• Develop a clear business plan: Having a well-thought-out business plan will help you set goals, prioritize tasks, and make informed decisions. It should outline your target market, marketing strategies, budget, and growth plans.
• Create a strong brand: Establishing a strong brand identity can help you stand out from the competition and attract new customers. This can include developing a distinctive logo, creating a memorable slogan, and having a consistent look and feel for all your marketing materials.
• Invest in marketing and advertising: Effective marketing and advertising is key to attracting new customers and keeping your existing ones. Consider a variety of advertising channels, such as local print and online directories, social media, and email marketing.
• Hire the right people: Having a team of skilled and motivated technicians, customer service representatives, and managers is critical to the success of your body shop. Ensure that you hire people who are passionate about the auto repair industry and have the skills and experience necessary to provide high-quality repairs and excellent customer service.
• Foster good relationships with suppliers: Building strong relationships with suppliers can help you get the parts and materials you need at a fair price, and ensure that you have access to the latest technology and equipment.
• Keep up with industry developments: Stay informed about the latest trends and developments in the auto repair industry, and be willing to adapt to changes in technology and customer preferences. This will help you remain competitive and provide the best possible service to your customers.
• Maintain financial discipline: Running a profitable body shop requires careful attention to your finances. Make sure you have a clear understanding of your costs and margins, and monitor your cash flow closely. This will help you make informed decisions about pricing, expenses, and investments.
• Measure and evaluate your performance: Regularly measure and evaluate your performance in key areas such as customer satisfaction, technician productivity, and financial performance. This will help you identify areas for improvement and make adjustments as needed.

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Write the Perfect Auto Body Business Plan: Tips and Examples

• Jean Scheid
• Categories : Entrepreneurs , Business
• Tags : Office entrepreneurs topics business planning

Why Bother With a Business Plan?

Even an auto body business needs to develop a business plan, especially if it’s a new business or one that is looking for prospective investors or needs to obtain some sort of funding. Often, auto body business plans are requested by insurance companies if the business wants to achieve the status of any insurance company’s recognized repair facility program.

In addition, no matter what type of business you are in, a business plan can be used to see how you are doing in general as far as predicted versus actual revenues, expected customer base, and expenditures. The best business plans will even offer written goals on what you expect to achieve and this part of all plans should be reviewed and revised if needed, to ensure your business is on the right path. Revisit your vision and mission statement often as well as your product and services section and marketing plans.

Help for Writing Your Business Plan

Before we delve into the elements of an auto body shop business plan, invest in either Business Plan Pro or visit the Small Business Administration (SBA) to learn what to include in a business plan. The SBA also offers an online business plan tutorial on how to write an effective business plan; which is useful if you want to apply for any type of SBA loan.

If you’re still stuck on how to write a basic business plan, learn how a division of the SBA, SCORE can help you write your plan free of charge.

Elements of a Business Plan for an Auto Body Shop

All business plans do have essential elements that are included. Here we’ll take a look at each element and include tips on what additional information you’ll need to include in your auto body and paint shop business plan:

• Executive Summary – This should state the name and principal owners of the business and what localities the business will serve. The executive summary also includes your vision and mission statements , and a brief summary of what your business will be able to do not just for your customers, but the community at large. You should also reference your appendix section for information such as your federal tax identification number, any bonds you have, state, city or town license numbers, and sales tax numbers. An executive summary is basically the same in all business plans except for an auto body and paint shop, you may have to include items that are specific to your industry such as required bonds you’ve obtained, an EPA number that will allow you to dispose of waste materials in an environmentally friendly manner, if you plan on using a green paint booth or paint materials, and the types you expect to use along with their manufacturer. You should also include a very brief purpose for the business plan; is it for funding and if so, how much? Is it to purchase equipment; again list the needed funds. The key to the executive summary is to be brief but get your message across clearly.
• Market Analysis – This section of your plan should include exactly what it states—an analysis of your market area including your competitors, rates both you and they charge, how you plan on being successful through competition, offer facts and figures on how you expect to achieve planned revenue numbers, and what will make your auto body shop business stand out from the rest.
• Company Description – This part of your auto body business plan should include viable and realistic forecasts for the business including cash flow forecasts for at least two years, an expected opening balance sheet , and a projected income statement based on your market analysis. Often, because you can compare what prices you intend to charge compared to your competitor’s rates, it’s easier for an auto body shop to come up with realistic trends and predictions to provide numbers as close to the actual as possible.
• Marketing and Management – Include how and in what form you will market not just your customers but also insurance companies to put you on their preferred provider lists. What equipment do you have the will entice insurance companies to choose your shop? If you’ve already developed a relationship with some insurance companies, you should list them here. Include an advertising plan along with a list of everyone who will work in the shop and what titles they will hold. Who will be the managers and how will the owners be involved with the day to day activities.

Please click on Page 2 to learn about services, jobs, and community information to include in your auto body business plan.

Services, Jobs & Community Information

You will also need to include the following in your auto body business plan:

• Service and Product Lines – This section is essential for an auto body business plan. It often includes a more detailed explanation than the average business plan mostly because the auto body and paint world is of a different caliber than some businesses and must provide detailed lists on what services or products they will be able to offer based on training levels and certifications achieved. If any of the owners or employees have achieved the (Automotive Service Excellence) ASE certified status in either auto body or paint repair, it’s important to list that here. If you’re equipment is top of the line and eco-friendly, explain why that’s a benefit. If your equipment is antiquated and you need funds to gain modern equipment to become a recommended repair facility for certain insurance companies, state that as well. If you have to outsource services like alignments or frame repair because you lack the required equipment, that’s also important information to include. Will you provide apprenticeships for high school or technical students in your area and what will that training entail? If you’re the only auto body shop that will provide apprenticeships, make sure you include that piece of information as well.
• Job Information – As hard as it may be to create this section of your auto body business plan, especially if you are seeking startup funds to open the business, lenders and investors will want to know how many jobs you will create for the community. Use your sales or revenue forecasts to determine how many employees you will need. Include a statement about how many families, not just employees you will be helping in your community. Do you intend to offer any kind of benefits including long or short term disability, life insurance, health care, dental or retirement benefit plans? If so, are you the only auto body shop in your area that will offer these benefits?
• Community Involvement – Whether you are an existing auto body and paint repair facility or starting new, how will you contribute to your community beyond offering jobs and customer services? If you plan or do support little leagues, animal shelters or are a member of plan to join the chamber of commerce, state these things. Are you or will you become a member of your local Better Business Bureau? What industry specific organizations will you join to ensure your business outshines other auto body and paint shops in your area? Will you work on government vehicles and do you have or plan to get a DUNS number to ensure you qualify to work on federal, state, and local vehicles? All of these issues are important to include in your auto body business plan.

Please click on Page 3 to read about funding requests, financials and exhibits to include in your auto body business plan.

Funding Requests, Financials & Exhibits

To finish up your auto body business plan, you will also need to cover the following areas:

• Funding – Although you briefly stated in your executive summary the purpose of the plan as it pertains to types of funding; startup funds, working capital or equipment, you will need to go into more detail in this section. If you need equipment, don’t just guess how much it will cost, provide real vendor estimates and ask prospective vendors to include shipping, installation, tax and if required, monthly maintenance or update charges. The same is true for working capital to expand or startup expenses. Include detailed statements and estimates that offer true costs. It is also essential in this section that you prove, from either spreadsheets or facts that you will be able to pay the funds back, at what length, and how. Do not skip this important element because people and organizations want to know how and when they will get their money back.
• Financials & Exhibits – For either a SBA-type business plan or a plan for a lender or investor financials are a must and they can be included as a section on their own or in the exhibit section. Financials should include 3 years of personal tax returns, business projections on income and expense statements, opening day or existing balance sheets, and cash flow projections . An example of exhibits for an auto body business plan might include graphs or charts showing competitor comparisons, copies of business and EPA licenses, sales tax licenses, department of labor license, and most importantly a copy of your articles of incorporation and bylaws if you are a corporation or your articles of organization and operating agreement if you are a limited liability company.

Review and Proofread

To present the best business plan, it’s essential to review and proofread every section. Do your spreadsheets add up? Are you utilizing the best grammar possible; ask a friend or relative to review your auto body business plan as well.

Finally, before you meet with the SBA, a lender or a possible investor, practice the sales pitch for your business plan. Use a mirror or a friend but this is essential in offering up the best business plan possible. If you are convincing and show assurance in your presentation, that business plan will go a long way in helping you achieve the funding you need.

Image Credits

• Computer & Man ( Morgue File )
• Scheid Body & Paint Logo (Courtesy of Author)
• Employment ( Morgue File )
• Mechanic Straigtening Fender ( https://commons.wikimedia.org/wiki/File:2008-08-11_Mechanic_straightening_fender.jpg )
• Proofread ( Morgue File )

• Bodyshop management guides

How to run a successful auto body shop

Running a   collision shop   is not as simple as it may seem. It takes hard work and dedication to achieve success. There are many aspects to running a successful business such as marketing, customer service, and profitability. A successful auto body shop owner needs to be willing to learn all aspects of the industry in order to succeed. Some of the most important factors that can affect a business' success include location, personnel, and equipment.

Location is an extremely important factor in the decision making process of the   auto body repair business.   Being located near a busy street can help increase your business, however it may also bring with it increased competition and more chances for theft of equipment or materials. If you decide to open an auto body repair facility at night due to low traffic volume during that time, you may also increase the chance of theft. It is important to weigh all options and choose a location that best suits your needs as well as those of customers who will be coming in for repairs or services such as tinting windows, painting cars, or repairing dents on vehicles damaged during accidents.

Four tips on starting an auto body shop

Here are some tips brought to you by MVP Business Solutions on running a successful  body shop:

Avoid traditional procedures

In the traditional method of running a body shop, it's all about "meets and greets." Mechanics who own their shops will go to different places in order to get referrals from people they know. They also use newspaper ads for more customers. With this approach you're not going out there with your business card and saying, "Hey! I'm open for business. Here's my number."

Don't stick with the traditional method of doing things; try something different that will be more effective in bringing you customers and clients. Try social media marketing first to get your name out there and let people know about your  collision shop .

Don't be afraid to expand services and products offered in your shop: This way you can become more than just a mechanic but an "automotive therapy" specialist that offers different types of automotive care from traditional maintenance, repair work, oil change service to minor tune ups on engines or brakes.

The more things you offer, the more clients will come to your shop. You can then expand services and products that are related or not directly associated with automotive care like detailing, tinting work on windows of cars (and other forms of transportation), interior redesigns for interiors as well as exteriors; fully customizing cars, trucks and other vehicles.

Use software such as Collision Services Inventory to control your stock and ordering

Trying to run a successful  paint shop  without modern POS and inventory management software is an uphill battle. That’s where  Collision Services Inventory  comes in; it solves all the pain points in your inventory management and saves you time and money.

Its benefits are:

• Fast and secure ordering via a barcode scanner.
• Automatic order scheduling (manual also available).
• One-click stock control.
• Easy stock regulation via the app.

CSI not only saves time when ordering new inventory via automation, but also takes paper out of the equation, reduces overstock risks, and allows for real time purchase and budget tracking.

Like any other business, successful bodyshops waste the least amounts of time and money. MVP Business Solutions has produced training modules to help  body shop  owners be successful now and in the future. These modules teach you how to repair vehicles faster, better, and for less money. In order to do this, you must concentrate on a continuous workflow, reduce variants and tasks that don't offer value to the client, and tackle change with the help of a partner.

Not exclusive to collision repair but still highly relevant and valuable, Six Sigma is the application of statistics and data analysis to production streamlining purposes. MVP Business Solutions offers  Lean Six Sigma training  to those operating a  paint shop  who want to optimize the efficiency of their business. Being lean means being constantly aware of where you stand with your business. As a result, Six Sigma allows for the measurement and improvement of every aspect that relates to production efficiency.

Lean is a style of working that emphasizes the importance of efficient resource management and represents the optimal method of carrying business processes. The Lean ethos consists of five S’s:

• Seiri: To separate required tools, components, and instructions from non-essential things and discard the latter.
• Seiton: To make it easier to use, components and tools should be properly organized and identified.
• Seiso: To carry out a cleanup operation.
• Seiketsu: To maintain a flawless workplace, conduct seiri, seiton, and seiso on a daily basis.
• Shitsuke: To make it a habit to constantly remember the first four S's.

What makes MVP Business Solutions special is the fact that our Lean course is purposefully designed for  body shops  from the ground up, and designed by highly experienced professionals in the industry. Nowadays, there are no existing competitors that offer a similarly industry-specific service.

When it comes down to it, everyone knows how crucial customer service is in any industry these days including auto repair shops. The MVP Business Solutions customer service training is designed to give customers a good experience and improve their opinions on your  collision shop .

Similarly important for success are financial management skills such as cash flow forecasting and budgeting, both of which MVP Business Solutions offers training on. Successful businesses know that they must be able to forecast their expenses and income in advance, as well as provide a budget for all work done at the shop.

Start your journey with us today by requesting an auto repair business plan from our team.

Never Stop Learning

The best way to learn about  auto body repair  is through trial and error. Don't be afraid of trying new things; there are no wrong answers, only learning experiences. The most important thing about running an automotive repair business is that you never stop improving your skills as well as the quality of your work.

For example, when we started we weren’t immediately aware of the varying qualities of paint between different products. Now we’re much more knowledgeable and consider ourselves experts when it comes to paint, which is why we favour PPG paint over other brands for its outstanding quality and versatility.

At MVP Business Solutions, we believe that everyone deserves to own their businesses and be successful. That’s why for over 20 years now our mission has been helping entrepreneurs with  paint shops  just like yours by providing them with the necessary tools needed in running a body shop successfully.

Those 20 years were hardly a smooth ride either; we’ve evolved dramatically from how we started and learned so many lessons on the journey that we could never have known at the beginning without trial and error.

MVP Business Solutions is a leading provider of software and services specifically designed for modern day technicians, offering you the ability to manage your business online with ease. With MVP’s tools at hand; we make  collision shop  management easier than ever.

Are you interested in  starting a body shop ? MVP Business Solutions can help! We offer all the necessary elements for running your own business including software, training and support to get you started on the right track today.

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Auto body shop marketing: 10 strategies for your auto repair business

This article was updated on February 2, 2022

If you own and operate an auto repair shop, you likely have so many tasks on your plate that local marketing often takes the back seat. While this mindset is understandable, you do your auto shop and yourself a disservice by not investing the time necessary to keep bringing in new customers and incentivizing current customers to return to the garage.

As states have eased COVID restrictions, you may be reopening your business for the first time in months. Now is the perfect time to start investing in your auto repair shop marketing initiatives.

The good news is there are many low-cost ways to increase brand awareness and bring in more customers to your auto repair company. With a little bit of planning to create the right auto repair marketing strategy, you can ensure you're continually driving customers to the shop simply and inexpensively.

Wondering how to take the first step in making auto repair   business ads that work? Keep on reading.

10 auto repair marketing ideas to grow local business

As you might imagine, there are a variety of marketing ideas and strategies available at your fingertips.While online digital marketing is often very effective, traditional approaches certainly have their place as well. Developing a marketing plan before jumping in helps ensure your target market is accounted for and helps you identify how your auto body shop can best benefit from your marketing budget. Here are 10 ideas to consider for your marketing plan

1. List your business on Nextdoor

If you're looking to use auto repair advertising ads that work, start by promoting your auto service shop on Nextdoor. As the neighborhood hub, Nextdoor is one of the most effective ways to advertise your business for free online. Claim your free Business Page to begin connecting with locals. Nextdoor neighbors have verified residents that live in proximity to each other and your business location. This creates a unique community built on trust and authenticity and allows you direct access to your target market.

On Nextdoor, existing customers can recommend your garage, and you, in turn, can promote your local auto repair service or others that you partner with. You can also inform your customers about any reopening schedule changes or show them how you are adapting your normal business to make everyone feel safe and healthy while visiting your shop. As a verified business, you have the opportunity to share promotions and deals, network with other local auto repair services, and get direct messages from your local customers.

2. Create a website

Being a business owner in the digital age, if you don't have a website (or if you do and it's difficult to navigate), then you're missing out on a huge opportunity to reach customers. Establishing a digital presence lets you connect with locals in your neighborhood even before they step foot into your garage. Making a good digital impression is key here.

To do this, your website should be:

• Easy to navigate - The website doesn't need to have a bunch of bells and whistles. Everything should be focused on selling your garage and staff and moving customers down the sales funnel.
• Social media links (Facebook, Instagram, etc)
• Search engine optimization (SEO) - To be relevant, you'll want your small business to show up at the top of search results for any potential customer. Creating a Google My Business account allows your business to be found more easily through search engines and listed on google maps, greatly improving your local SEO. Try to include keywords, photo meta descriptions, and all the data that Google's search engine algorithm depends on to match search queries with desired results.

3. Employ email marketing campaigns

If your customers provide you with their email, you have an opportunity to reach them with a very pointed marketing campaign. While you want to avoid over-communicating with email after email, you want to make an effort to send relevant and useful information such as a service reminder or a temporary deal or promotion. According to Outbound Engine :

Email newsletters are the best way to stay in front of your customers. Rather than sending email newsletters that do nothing but promote your business or ask customers to promote your business, send emails that entertain or inform your audience. Content marketing through email is a great way to keep your existing loyal customers engaged without selling to them. 90% of consumers find custom content useful, and 78% believe that businesses that deliver custom content want to build a good relationship with them.

4. Start a blog

A well-done blog not only helps your website's SEO and search rankings but allows you to connect with local customers and establish your authority as an expert within the auto repair industry. Creating a blog is one of the best ways to advertise your small business . Ideally, you want to post about once or twice a week and then mix up the content by creating keyword-rich related articles that are informative and helpful to both car enthusiasts and laymen alike. Types of content might include:

By providing direct value and driving visitors to your website, you create a readership that keeps coming back for more. Expert content builds trust, especially when it comes time for readers to trust you with their car(s). This also gives you additional auto repair shop marketing opportunities wherein you can talk about specials or remind them about services they need to stay on top of. Plus, if you have any items for sale at your store, a blog creates the perfect arena to market and sell those products online.

5. Drive engagement through social media marketing ideas

Social media is a powerful marketing tool that not only increases new customer leads and engagement but creates transparency between you and any existing customer. Sharing photos of events, posting employee appreciation, or giving maintenance tips on social media allows customers to have insight to how you conduct business and the customer service to expect at your auto repair shop.

The various social media channels give you the chance to present customers with engaging and informative content. Each one has its own strengths and weaknesses, but Instagram is especially helpful on the social media advertising and service front. Be sure to post consistently and mix things up. Content worth posting might include:

• High-quality photos and videos of the garage and services
• Before and after photos
• Car maintenance advice
• Promotions, specials, coupons
• Local car events and shows
• Customer reviews
• Driver safety tips

In addition, offer rewards for customer engagement or user-generated content. Encourage customers to check-in, write a recommendation on Nextdoor, post on social media, or refer your business to others in exchange for discounts, deals, or chances to win a prize.

6. Host a YouTube channel

Similar to your blog, if you create a YouTube channel, you have the chance to demonstrate your automotive knowledge to customers as a shop owner. By posting explanatory videos to both YouTube and embedding them on your website, you give potential customers free expertise. In exchange, they're far more receptive to your advertising efforts. Plus, you can indirectly promote your services by highlighting services or repairs that require an in-person inspection.

7. Host events

There are several ways you can build a sense of community and get locals to act as brand ambassadors on your behalf. If you want your garage to be part and parcel to the local neighborhood, you need to be a contributing member of that community. As an auto repair shop, you have skills and expertise that many people find valuable. Hosting events gives you a fantastic opportunity to impart your knowledge to others and establish trust. Examples of this might include:

• Auto enthusiast clubs
• Seminars about car maintenance
• Information meetings
• Hands-on walkthroughs for simple services such as changing your oil

8. Coupon advertising

Coupons are a low-cost, high-exposure auto repair shop marketing idea that engages both prospects and repeat customers. Such coupons could be listed in local papers or on Nextdoor as Local Deals. Examples include:

• Discount oil change
• Overall bill reduction
• Free service with another type of service
• A dollar amount off of a specific service

Whatever you settle on, let customers know the value they will get with your deal. . Even if it's only a few dollars off, they will be more likely to engage if they think they're saving money.

9. Partner with other local businesses

It's every bit as important for you to build relationships with other businesses-both competitors and non-competitors alike-as it is to connect with customers. Although you may be chafe at the notion, you'd be amazed by how successful a referral from another expert can be.

Say, perhaps, that your shop specializes in a type of auto repair but lacks the tools, tech, or staff to perform a certain service. You could easily create an arrangement with another shop wherein you both recommend customers to check out the other shop should the need arise.

10. Direct repair programs (DRP) and buy lists 

Realized or not, a significant part of most auto body shop marketing plans is involvement with a direct repair program. Shops are sent referrals through an agreement with insurance agencies. This of course comes with a fee which can be significant. While convenient, it is worth considering what alternative marketing approaches could be accomplished with the typical DRP funds. Following up on local accident reports lists is one to consider. For a small fee, your local community should provide you a list of incident reports. Getting ahead of the insurance agencies by contacting involved parties to help with repairs may prove fruitful in securing prospective clients.

Reopening your auto shop post COVID-19

Businesses everywhere were forced to close down in order to stop the spread of COVID-19. If the lockdown impacted your business, you may be afraid of what the future holds. However, with our current landscape improving, now is the perfect time to invest in marketing ideas and ad campaign initiatives.

There are effective ways to engage both new customers and returning customers for little to no cost. Whether it be claiming your business page to boost your online presence, or hosting car maintenance seminars to engage your local customers in person, you have the ability to reach local residents and establish yourself as a lasting member of the community. Keep these marketing tips in mind as you reopen your local auto shop.

Claim your free Business Page  to get started on Nextdoor. For resources on how to use Nextdoor to stay connected with your local customers, pertinent news affecting businesses, and more, follow us at  @nextdoorbusiness  on Facebook.

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