Have you ever thought about whether or not to open your own auto repair shop? The first thing that you need to do is to sit down and seriously weigh out all of the pros and cons. Owning a business is not for everyone, but it does have a unique set of benefits that sets it apart from working under someone else.
Owning your own auto repair shop is certainly going to require a much higher level of responsibility than working for another company. You will find yourself wearing many hats and doing many jobs beyond what was expected of you as an employee. However, the rewards are numerous if you work hard and truly dedicate yourself to running a successful business. If you are willing to accept the challenge that comes with complete and total financial responsibility, then opening up your own auto repair shop can truly be a rewarding endeavor.
Steps to Opening Your Own Shop
When you first begin your business, you will be the only source of work, planning and money, and you may not be making much of a profit at first. If you can accept these small but serious drawbacks, you are ready to consider opening up your own auto repair shop.
A Business Plan is the Roadmap to Success at Your Auto Repair Shop Job
The first step, which is true for any new business, is to sit down and put together a business plan. Businesses that fail to write businesses plans generally fail to get on their feet. You must know what you want from business, where it is headed, and how it will get there if you want to be successful. You should plan out every possible aspect of your business from beginning to end, including as many prices and figures as you can. Once you know where you want to go, you can work on getting there. Your business plan is your plotted-out roadmap to success and the best way to help you decide if opening your own auto repair shop is a good idea for you.
Once you have a business plan, the next step in the process is for you to obtain the necessary licenses and permits. Call your local Small Business Administration (SBA), as they are the best resource for learning about loans and other information about starting your own business. Register your new business with your local city hall and call the local county clerk to find out which licenses and permits need to be obtained so that you can legally operate within your area. These licenses, permits and documents vary from state to state and oftentimes from county to county, so it is important that you research what is required by your municipality. You may also need to file for a fictitious business name if your own name is not part of the business’s name. For example, ''Elite Auto Care'' is a fictitious business title, while ''Mike's Auto Care'' is not.
Financing and Insuring Your Auto Repair Shop
When first starting your business, what you’ll want to do is to open up both a business checking account and a business savings account. Your business will need an exclusive account from which all expenses can be paid. You should never pay personal bills or expenses with your business profits, as this is a sure fire way for your business to fail. Eighty percent of all of the income you make should be used to sustain and grow your business, so make sure you do not fall into the trap of mixing your profits in with your personal bank account except to pay yourself a set income. Contact local banks in your area to find a free or no-fee checking account for your business.
The next step is to acquire the right insurances, something that needs to be done long before you begin to operate. You need to have garage insurance and worker's compensation insurance if you plan to have any employees. Find out what other types of liability insurance are offered for your area, including tornado insurance, hurricane insurance, fire insurance and so on. Having the right insurances can really make or break your business. Make sure that you have disability insurance and that you are protected, so that your business can continue to run even if you are injured and cannot operate it on your own.
Remember to Choose the Location of Your Auto Repair Shop Carefully
The next job on the road to opening your auto repair shop is to choose the location and set up all of your materials. ''Location, location, location!'' is an especially true adage when it comes to auto repair shops, so make sure to find a location that is close to a main highway or an Interstate Highway. You may want to put it in the middle of a large city if you can. The most lucrative opportunities for auto repair shops are found in areas with a lot of car and truck traffic.
Advertising and Marketing Your Auto Repair Shop is Another Full-Time Job
Learn the best ways to advertise and market your company and get going! If you do not advertise and market your company, you are simply not going to do any business. When people find that their automobiles need repairs, they aren’t going to be able to reach you if they don’t know that you exist. You want the name of your business to be the first thing that pops into their mind — the only way to accomplish this is to advertise! Post information online, create a website, post classified ads in the newspapers, and buy billboard space and tow trucks if you have the capital to do so. Marketing correctly is truly vital when it comes to creating a profitable and lucrative business, so get creative in your marketing strategy and enjoy yourself while you share what it is that makes your auto repair shop so great.
