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

Author: Elon Glucklich

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.

A sample outline for an auto repair shop business plan.

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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 .

Content Author: Elon Glucklich

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.

Check out LivePlan

Table of Contents

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

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Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

  • Brake repair
  • Powertrain repair
  • Muffler & exhaust repair
  • Heating repair
  • Electrical system repair
  • Wheel alignment and repair
  • Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

  • Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
  • Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
  • The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

  • Auto repair shop build-out: $100,000
  • Equipment, supplies, and materials: $40,000
  • Three months of overhead expenses (payroll, utilities): $90,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

  • Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
  • Has begun negotiations to purchase the warehouse that will become the shop.
  • Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
  • Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

  • Individual vehicle owners
  • Delivery drivers
  • Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

  • Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
  • Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

  • Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.


The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

  • Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
  • Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
  • Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
  • Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.


Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average number of vehicles serviced per month: 450
  • Average fees per month: $15,000
  • Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.


Auto Repair Business Plan PDF Example

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  • February 28, 2024
  • Business Plan

Auto Repair business plan template

Creating a comprehensive business plan is crucial for launching and running a successful auto repair business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your auto repair business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an auto repair business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your auto repair business concept into reality. Let’s dive in!

Our auto repair business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the garage’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

  • Executive Summary : Offers an overview of your auto repair business’s concept, market analysis , management, and financial strategy.
  • Services & Location: Describes the shop’s facilities, services offered, and why its location is beneficial for customers.
  • Operational Details: Outlines the operational aspects like workshop layout, equipment used, and staff roles.
  • Key Stats: Presents data on market size , growth trends, and customer demographics.
  • Key Trends: Highlights technological advancements and changing consumer preferences in auto repair.
  • Key Competitors : Analyzes main competitors in the area and your business’s unique selling points.
  • SWOT: Conducts a strengths, weaknesses, opportunities, and threats analysis.
  • Marketing Plan : Discusses strategies to draw in and keep customers, including promotional activities and customer service enhancements.
  • Timeline : Lists important goals and milestones from the outset through the first year.
  • Management: Provides information on the auto repair business management team and their responsibilities.
  • Financial Plan: Forecasts the business’s 5-year financial performance, including expected income, profit margins, and outlays.

Auto Repair business plan template

Auto Repair Business Plan

business plan for existing auto repair shop

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your auto repair business’s plan, providing a succinct overview of your garage and the range of services it offers. It will detail your market positioning, encompassing the array of maintenance and repair services available, its location, dimensions, and a summary of daily operations. 

This section will also delve into how your auto repair shop will integrate into the local market, including an analysis of direct competitors within the vicinity, identifying who they are, along with your shop’s unique selling points that set it apart from these competitors.

Moreover, information about the management and co-founding team should be included, highlighting their roles and how their expertise contributes to the business’s success. Additionally, a summary of your financial projections, including expected revenue and profits over the next five years, should be presented to offer a transparent view of your auto repair business’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Auto Repair Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For an auto repair business, the Business Overview section can be effectively divided into 2 main sections:

Garage & Location

Briefly describe the garage’s physical setup, focusing on its layout, functionality, and the welcoming environment it creates for customers.

Mention the business’s location, emphasizing its ease of access and the convenience it offers to customers, such as proximity to major roads or availability of ample parking. Explain why this location is strategically chosen to attract your target clientele, considering factors like high traffic volume or lack of similar services in the area.

Services & Pricing

Detail the range of maintenance and repair services offered, from routine services like oil changes and tire rotations to more specialized repairs such as engine diagnostics, transmission work, or electrical system repairs.

Outline your pricing strategy , ensuring it mirrors the quality of services provided and aligns with the market segment you’re targeting. Highlight any service bundles, membership deals, or loyalty programs that offer added value to your customers, fostering repeat business and customer loyalty.

Make sure to cover here _ Services & Location _ Operational Details

Auto Repair Business Plan facility

Market Overview

Industry size & growth.

Begin with an overview of the auto repair industry, noting its size and potential for growth. Highlight key factors like the increasing vehicle population, aging car fleets, and trends towards vehicle longevity.

Key market trends

Next, discuss current trends such as the demand for specialized services, the rise of new automotive technologies, and eco-friendly repair practices. Emphasize the growing need for expertise in electric and hybrid vehicle maintenance and advanced diagnostics.

Key competitors

Then, analyze the competitive landscape, noting the diversity from premium dealerships to local garages, and the DIY repair movement. Identify your business’s unique selling points, such as exceptional service, specialized offerings, or technological expertise, to illustrate how it stands out in the market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Auto Repair Business Plan market overview

Dive deeper into Key competitors

First, perform a SWOT analysis for your auto repair business, identifying Strengths (such as highly skilled technicians and a broad range of services), Weaknesses (like high operational costs or intense competition), Opportunities (for instance, the growing demand for maintenance of aging vehicles), and Threats (such as economic downturns impacting consumer spending on non-essential repairs).

Marketing Plan

Then, craft a marketing strategy detailing how to draw in and keep customers through targeted advertising, promotional offers, a strong online presence, and involvement in local community events.

Lastly, set up a comprehensive timeline highlighting key milestones for the auto repair shop’s launch, marketing initiatives, customer base development, and expansion goals, ensuring the business progresses with clear objectives and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Auto Repair Business Plan strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the auto repair business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the auto repair business toward its financial and operational goals.

For your auto repair business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Auto Repair Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your auto repair business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your auto repair business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Auto Repair Business Plan financial plan

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Auto Repair Business Plan Template

Written by Dave Lavinsky

Auto Repair Business Plan

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.  

Auto Repair Business Plan FAQs

What is the easiest way to complete my auto repair shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

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

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

  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.

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Here is a free business plan sample for an auto repair shop.

auto repair shop profitability

Have you been toying with the idea of opening your own auto repair shop but feel overwhelmed about where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for the auto repair industry.

As any seasoned entrepreneur will tell you, a robust business plan is crucial to navigating the road to success. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to steer your business to profitability.

To shift your planning into high gear without any detours, you can utilize our auto repair shop business plan template. Our specialists are also on standby to provide a free review and fine-tuning of your plan.

business plan dealership

How to draft a great business plan for your auto repair shop?

A good business plan for an auto repair shop must reflect the unique aspects of the automotive service industry.

To start, it's crucial to provide a comprehensive overview of the auto repair market. This includes up-to-date statistics and identifying emerging trends within the industry, similar to what we've incorporated in our auto repair shop business plan template .

Then, you need to articulate your business concept effectively. This encompasses your vision, pinpointing your target market (such as local residents, fleet services, or corporate clients), and the distinct positioning of your auto repair shop (specializing in certain types of vehicles, offering quick services, eco-friendly practices, etc.).

The market analysis section is vital. It requires a thorough understanding of local competitors, automotive industry trends, and customer needs and preferences.

For an auto repair shop, particular emphasis should be placed on the services you plan to provide. Detail your service offerings - general maintenance, specialized repairs, diagnostics, tire services - and explain how they cater to the demands and expectations of your target customers.

The operational plan is equally important. It should outline the location of your shop, the layout of the service bays, equipment and tool investments, supplier relationships for parts, and the repair process.

In the auto repair business, it is critical to highlight the expertise of your technicians, the quality of parts used, and adherence to safety and environmental regulations.

Then, delve into your marketing and sales strategy. How will you draw in and keep customers coming back? Consider advertising tactics, customer loyalty programs, and value-added services (like courtesy cars or shuttle services).

Utilizing digital strategies, such as a professional website or an active social media presence, is also vital in the modern marketplace.

The financial plan is another fundamental component. This includes the initial investment, revenue projections, ongoing expenses, and the point at which the business will start to turn a profit.

In an auto repair shop, understanding the profit margins for various services is essential, so meticulous planning and a firm grasp of your financials are necessary. For assistance, you can refer to our financial forecast for an auto repair shop .

Compared to other business plans, an auto repair shop's plan must pay special attention to factors such as inventory management for parts, certifications and training for technicians, and the potential for insurance partnerships or contracts.

A well-crafted business plan will not only help the owner to define their strategies and vision but also to attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of the day-to-day operations of an auto repair shop.

By presenting a thorough and substantiated plan, you showcase your dedication and preparedness for the success of your venture.

To achieve these goals while saving time, you can simply fill out our auto repair shop business plan template .

business plan auto repair shop

A free example of business plan for an auto repair shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an auto repair shop .

Here, we will follow the same structure as in our business plan template.

business plan auto repair shop

Market Opportunity

Market data and figures.

The auto repair industry is a vital component of the global economy with significant growth potential.

Recent estimates value the global automotive repair and maintenance services market at over 700 billion dollars, with expectations for continued growth driven by the increasing number of vehicles on the road and the aging vehicle fleet.

In the United States alone, there are over 230,000 auto repair shops, generating a combined annual revenue of approximately 115 billion dollars. This underscores the critical role auto repair shops play in the American economy and in the daily lives of vehicle owners.

The auto repair industry is witnessing several key trends that are shaping its future.

There is a growing emphasis on technology, with shops incorporating advanced diagnostic tools and software to efficiently service modern vehicles. This includes the use of telematics to predict maintenance issues before they occur.

Electric and hybrid vehicles are becoming more prevalent, leading to a demand for specialized repair services for these types of vehicles.

Environmental concerns are also influencing the industry, with a push towards more sustainable practices, such as recycling parts and fluids, and using eco-friendly products.

Convenience services, such as mobile repair units and online appointment scheduling, are becoming more popular, reflecting customers' desires for more accessible and time-saving options.

Lastly, transparency in service, pricing, and customer communication is increasingly important to consumers, who want to ensure they are getting fair and honest service.

Success Factors

Several factors contribute to the success of an auto repair shop.

Quality of service is paramount. Shops that offer reliable, efficient, and high-quality repairs are more likely to build a loyal customer base.

Expertise in a wide range of services, including the latest automotive technologies, can set a shop apart in a competitive market.

Location is also critical, as a conveniently located shop can attract more customers and provide easier access for vehicle drop-off and pick-up.

Exceptional customer service is essential for creating a positive experience and encouraging repeat business.

Finally, effective cost management, the ability to adapt to industry changes, and a commitment to sustainability are important for the long-term success of an auto repair shop.

The Project

Project presentation.

Our auto repair shop project is designed to cater to the increasing number of vehicle owners who require reliable, high-quality maintenance and repair services. Situated in an area with high vehicle traffic or near automotive hubs, this shop will offer a comprehensive range of services, from routine maintenance and oil changes to complex engine repairs and diagnostics, all performed by certified mechanics using state-of-the-art equipment.

The focus will be on providing exceptional service, transparent pricing, and quick turnaround times to ensure customer satisfaction and vehicle safety.

This auto repair shop aims to become a trusted destination for vehicle owners, thereby enhancing the reliability and longevity of their vehicles.

Value Proposition

The value proposition of our auto repair shop project is based on delivering trustworthy and expert automotive repair and maintenance services that vehicle owners can depend on.

Our commitment to quality workmanship, fair pricing, and efficient service offers a superior automotive care experience, while contributing to the safety and performance of our customers' vehicles.

We are dedicated to fostering a transparent and customer-focused environment where vehicle owners can receive honest advice and top-notch service, and aim to educate our customers about the importance of regular vehicle maintenance.

Our auto repair shop aspires to become a cornerstone of the community, providing a reliable alternative to dealership services and enhancing the overall vehicle ownership experience for our customers.

Project Owner

The project owner is an automotive enthusiast with a comprehensive understanding of the automotive repair industry.

With a background in mechanical engineering and years of experience in auto repair management, he is determined to establish an auto repair shop that stands out for its dedication to excellence, customer service, and technical expertise.

With a vision of integrity and customer education, he is committed to offering high-quality automotive services that contribute to the safety and satisfaction of the local community.

His commitment to superior service and his passion for automobiles make him the driving force behind this project, aiming to enhance the vehicle maintenance experience for all customers.

The Market Study

Market segments.

The market segments for this auto repair shop are divided into several categories.

First, there are individual car owners who require regular maintenance and repair services to keep their vehicles in optimal condition.

Next, there are car enthusiasts and hobbyists who seek specialized modification and customization services for their vehicles.

The market also includes corporate clients with fleet vehicles that need consistent maintenance and repair to ensure business operations run smoothly.

Finally, insurance companies can be a key segment by partnering with the repair shop to handle claims for vehicle repairs after accidents or damages.

SWOT Analysis

A SWOT analysis of this auto repair shop project reveals several aspects.

Strengths include a team of certified and experienced mechanics, a strong reputation for quality service, and a strategic location accessible to a large customer base.

Weaknesses could include the initial costs of setting up a fully equipped shop and the challenge of building a customer base in a competitive market.

Opportunities lie in the increasing number of vehicles on the road, the potential for partnerships with local businesses, and the ability to specialize in certain types of repairs or services.

Finally, threats could include the rapid advancement of automotive technology requiring continuous training and investment in new equipment, and the potential for economic downturns affecting consumer spending on non-essential services.

Competitor Analysis

Competitor analysis in the auto repair industry reveals a mix of competition.

Among direct competitors are other local auto repair shops, franchise operations, and dealerships with service departments.

These players compete on factors such as price, service speed, customer service, and expertise in specific types of repairs.

Potential competitive advantages include a strong focus on customer satisfaction, the ability to provide a wide range of services, and the establishment of a loyal customer base through trust and transparency.

A thorough understanding of competitors' strengths and weaknesses is essential for developing effective differentiation and customer retention strategies.

Competitive Advantages

Our commitment to providing high-quality and reliable auto repair services is at the heart of our success.

We offer a comprehensive range of services, from routine maintenance to complex repairs, all performed by our team of skilled and certified mechanics.

Furthermore, our focus on customer education helps clients understand the importance of vehicle maintenance, thus fostering long-term relationships.

We take pride in our honesty and integrity, providing upfront pricing and clear communication about the services needed, which reassures our customers and builds trust in our brand.

You can also read our articles about: - how to open an auto repair shop: a complete guide - the customer segments of an auto repair shop - the competition study for an auto repair shop

The Strategy

Development plan.

Our three-year development plan for the auto repair shop is designed to establish us as a leader in vehicle maintenance and repair services.

In the first year, we will concentrate on building a strong local reputation for reliability and expert service. We will invest in state-of-the-art diagnostic equipment and ensure our technicians are highly trained.

The second year will focus on expanding our services to include specialized repairs and performance upgrades, as well as establishing fleet maintenance contracts with local businesses.

In the third year, we plan to explore the possibility of opening additional locations and offering mobile repair services to increase convenience for our customers.

Throughout this period, we will commit to exceptional customer service, continuous improvement, and staying abreast of the latest automotive technology trends.

Business Model Canvas

The Business Model Canvas for our auto repair shop targets vehicle owners in need of maintenance, repair services, and performance enhancements.

Our value proposition is centered on providing reliable, high-quality, and timely automotive services with a focus on customer education and transparency.

We offer our services through our physical shop location and potential mobile repair units, utilizing key resources such as our certified mechanics and advanced diagnostic tools.

Key activities include vehicle diagnostics, repairs, maintenance services, and customer service excellence.

Our revenue streams are generated from the various automotive services we provide, while our costs are mainly associated with labor, parts inventory, and operational expenses.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on building trust and demonstrating expertise in the automotive repair industry.

We aim to educate our customers on the importance of regular vehicle maintenance and the value of quality repairs. Our approach includes local advertising, community engagement events, and informative content on vehicle care.

We will also develop partnerships with local businesses and car dealerships to expand our customer base.

Additionally, we will leverage social media and online reviews to showcase our work and customer satisfaction, while offering promotions and loyalty programs to retain and attract new clients.

Risk Policy

The risk policy for our auto repair shop is designed to minimize operational and financial risks.

We will adhere to industry standards and regulations, ensuring all repairs meet or exceed safety requirements. Our technicians will undergo continuous training to stay current with automotive advancements.

We will implement rigorous inventory management and cost control measures to maintain profitability.

Furthermore, we will secure comprehensive insurance coverage to protect against potential liabilities associated with vehicle repairs. Our priority is to deliver safe and dependable services while safeguarding our business and customers.

Why Our Project is Viable

We are committed to establishing an auto repair shop that meets the growing demand for professional and trustworthy vehicle maintenance services.

With our dedication to quality, customer education, and staying ahead of automotive trends, we are confident in our ability to thrive in this competitive market.

We are enthusiastic about enhancing the driving experience of our customers and building a robust business.

We remain adaptable to industry changes to ensure our goals are met, and we look forward to a successful future in the auto repair industry.

You can also read our articles about: - the Business Model Canvas of an auto repair shop - the marketing strategy for an auto repair shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an auto repair shop and our financial plan for an auto repair shop .

Initial expenses for our auto repair shop include acquiring a suitable location, purchasing state-of-the-art automotive repair equipment, obtaining necessary permits and licenses, investing in high-quality tools and diagnostic software, and costs related to branding and launching targeted marketing campaigns to attract vehicle owners in the area.

Our revenue assumptions are based on a thorough analysis of local demand for auto repair services, taking into account the number of vehicles in the area, the average age of these vehicles, and the propensity of owners to invest in vehicle maintenance and repair.

We anticipate a steady increase in customer patronage, starting with a conservative estimate and expanding as our reputation for reliable and efficient service grows.

The projected income statement outlines expected revenues from our auto repair services, including labor, parts markup, and other services, as well as operating expenses (rent, marketing, salaries, utilities, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our auto repair shop.

The projected balance sheet reflects assets specific to our business, such as automotive repair equipment, parts inventory, and receivables, along with liabilities including loans and accounts payable.

It provides a snapshot of the financial standing of our auto repair shop at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to plan for cash requirements throughout the year. This is crucial for maintaining a healthy cash balance to support day-to-day operations.

The projected financing plan identifies the sources of funding we intend to use to cover our initial setup costs and any additional equipment purchases.

The working capital requirement for our auto repair shop will be carefully managed to ensure we have sufficient funds to cover routine expenses such as parts procurement, inventory management, and payroll.

The break-even analysis for our auto repair shop will calculate the volume of services we need to provide to cover all our costs, including the initial investment, and begin generating a profit.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the gross profit margin on services provided, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to determine the profitability of the capital invested in our auto repair shop.

These metrics will assist us in gauging the financial health and success of our business venture.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an auto repair shop .

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How to Start an Auto Repair Shop: A Step-by-Step Guide

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Free Auto Repair Shop Business Plan Template

11 Min Read

how to start an auto repair shop

Have you ever passed by a busy auto repair shop and wondered what it would be like to own and operate your own? Does the idea of being your own boss and making money fixing cars appeal to you?

If so, you have come to the right place to start your journey.

The auto repair industry is booming in the United States. By 2024, it is estimated to be worth $188 billion and growing nearly 6% year-over-year, reaching over $250 billion by 2029.

That type of market potential makes opening an auto shop a promising business venture for aspiring entrepreneurs.

Whether you are a beginner or have years of experience, this guide covers step-by-step instructions on starting an auto repair shop . By the time you finish reading, you will know how to get your business up and running and set it on the road to success.

But before that, let us discover the benefits of starting a car repair shop.

Why Start an Auto Repair Business?

Let’s dig into the top three reasons this business idea makes so much sense:

Steady demand and reliable returns

Cars are always going to break down and need fixing. It’s inevitable with over 283.4 million vehicles on the road in the United States of America alone! Most are averaging 11 years old at this point too. That translates to tons of drivers who’ll end up as your potential customers down the line.

Since people need repairs in good economies and bad, demand stays steady for shops—making this a recession-resistant business. And industry growth projections look solid over the next few years as well!

Diverse revenue streams

Another major benefit is how versatile and resilient this business model is thanks to diverse revenue streams. You don’t have to limit yourself to oil changes and other basic maintenance work.

Expanding into more complex engine diagnostics, customizations, detailing packages, and specialty work increases your income potential. Catering to both routine and major car repair customers will increase your overall customer base.

Flexibility and room to grow

There’s also great flexibility here for entrepreneurs. You can start small-scale out of your home garage to test things out before investing in a larger brick-and-mortar location later. This gives you room to adapt and grow your car repair business at your own pace!

Whether you’re working with a limited startup budget or envision growing quickly into advanced services, the freedom is there.

Now that you know the benefits, let’s look at the key steps you need to take to get your own shop up and running.

How to start an Auto Repair Shop (9 easy steps)

  • Conduct market research
  • Write a business plan
  • Select a business location
  • Determine your service offerings
  • Business registration and legal paperwork
  • Get a business insurance
  • Purchase necessary equipment
  • Hire employees
  • Marketing your auto repair shop

1. Conduct market research

Conducting thoughtful market research is vital to starting a business. Start by analyzing the local repair industry landscape; how many other auto repair businesses exist in the area, whether independent shops or chains? What services do they provide? This reveals potential gaps where you could offer specialty services.

Narrow your focus by gathering on-the-ground data within your specific area. Be sure to research:

Direct competitors

The other independent general and specialty auto repair shops in your immediate area with whom you will compete directly for business. Examine their service offerings, pricing, and customer satisfaction levels to identify gaps that you could fill.

Indirect competitors

Larger chains like Midas or Jiffy Lube operate more broadly in the region and also attract local customer segments. Understand how they position themselves competitively on convenience, speed of service, and pricing.

Market Demand

Talk to local vehicle owners to better understand common repair and maintenance needs. Identify the most sought-after or frequent services that you could focus on providing effectively.

Competitive differentiation

Outline ways you could distinguish your shop in areas like price, quality, speed, expertise, customer service, or niches. These would strengthen your positioning.

Careful research provides a strong foundation by uncovering strategic opportunities to satisfy customer needs better than the competition.

2. Write a business plan

The next step is to compile all that great data into a solid auto repair business plan . Having this strategic blueprint mapped out ahead of time serves as an invaluable roadmap as you get your shop up and running.

Here are all the key sections your auto repair business plan needs to cover:

  • Executive summary
  • Company description
  • Market analysis
  • Business bank account
  • Service menu
  • Operations plan
  • Marketing strategy
  • Financial plan

Creating an effective car repair shop business plan takes time and dedication, so consider using business planning software to assist. However, having all key elements outlined provides enormous clarity as you begin and grow your business.

Not very good at writing? Need help with your plan?

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business plan for existing auto repair shop

3. Select a business location

Now that your business plan is ready, it’s time to find the ideal location for your repair shop. When evaluating potential locations, you’ll want to consider things like:

  • Proximity to Customers – Is it near your target area and demographic? Can potential customers easily swing by for repairs?
  • Visibility – How noticeable is the shop from the main roads? Good street visibility and signage help draw in tons of pass-by and referred customers over time.
  • Accessibility & Parking – Make sure that there is convenient access and enough parking spaces. You want customers to feel hassle-free to bring their cars in.

Higher-traffic commercial areas typically have higher rents, but make up for it with consistent business volume. Also, think through the required space.

You could buy an existing automotive repair shop but leasing retail space in a small industrial park also works. Or, if your budget is tight at first, consider starting a mobile mechanic business from home and then upgrading later as demand grows to support a commercial garage location in the long run.

4. Determine your service offerings

Now it’s time to decide exactly which auto repair services to offer customers. This is crucial to make sure you attract enough business without stretching yourself too thin skill-wise early on.

Though every shop differs, most successful ones thrive by providing a mix across these vital categories:

  • Routine Maintenance (31% industry revenue) – This includes oil changes, tire rotations, fluid flushes, and inspections. Quick and affordable for customers, these build loyalty and provide you steady cash flow. Position yourself as a trustworthy one-stop provider for scheduled upkeep.
  • Major Repairs (18.1%) – Requiring significant expertise, engine/transmission overhauls and drive axle jobs yield high profit margins. Specializing in certain makes/models helps you excel here.
  • Brakes (17.4%) – As essential safety components are replaced regularly, brake pad swaps offer simpler jobs versus transmission work. But both appeal to most car owners.
  • Suspension & Alignment (8.1%) – Fixing drifting wheels causing uneven tire wear. Regular adjustments save customers money over time and enhance safety.

Other common needs are engine repair, HVAC, collision repair, exhaust work, and inspections. Don’t stray from your early strengths; concentrate on developing a solid reputation for fewer, higher-quality services. Then, thoughtfully expand offerings later as demand and expertise grow.

Finding the right balance of neighborhood preferences and specialties will set your shop up for success for years.

5. Business registration and legal paperwork

To own an auto repair shop, there’s some mandatory legal paperwork you’ve gotta handle first. It is crucial for legally and safely getting up and running your new business.

Here is a quick checklist:

First things first, you will need to choose a business structure and register your business name. Will you operate as a sole proprietorship, partnership, corporation, or LLC? Each has different legal and tax implications. A quick chat with an accountant can steer you towards the best fit.

Most states require a motor vehicle repairer’s license obtainable by applying along with proof of qualifications like ASE certifications or completion of training programs. This crucial license gives you legal permission to operate and lets customers know you meet industry standards.

Additionally, stay compliant with environmental, consumer protection, and workplace regulations for auto repair shops in your region. Register for necessary taxes too. Common examples are state sales tax, federal excise tax, and payroll tax to cover employees.

6. Get business insurance

Operating a car repair shop comes with substantial liability exposure! That’s why purchasing business insurance is an essential step before opening up. At a minimum, you’ll need:

  • Workers’ Compensation – Required in most states, this covers injuries, lost wages, and medical care if a mechanic gets hurt on the job.
  • Garage Keepers Insurance – This specialized policy protects customer vehicles while they’re in your shop’s care, custody, or control.
  • General Liability Insurance – This covers injuries if a customer gets hurt on your property. Also handles legal fees if you’re sued for property damage or personal injury.
  • Commercial Property Insurance – Protects your business assets like equipment, tools, and inventory from theft, accidents, or natural disasters.

Every state has specific auto shop insurance requirements. So double-check those and craft a customized policy that meets regulations while adequately covering potential risks. This shows customers you operate professionally and responsibly as well.

7. Purchase necessary equipment

To run the operations, you’ll need to purchase some of the essential tools and equipment. The equipment you need depends on your shop’s specialization. Start with essential, cost-effective tools and consider renting big-ticket items.

Here are some must-haves:

  • Diagnostic Machines – Used to interface with vehicle computers and assess issues. Figure $3K – $5K for good scanners.
  • Mechanics’ Tool Sets – This includes quality wrenches, pliers, sockets, jacks, and other car repair tools. Sets run $7,500 – $15,000 but last for years if you treat them well!
  • Lifts & Jacks – Two-post, four-post or scissor lifts to safely raise vehicles plus jack stands to support them. Consider renting lifts initially to conserve startup costs.
  • Specialty Tools – Stuff like tire changers, alignment machines, engine hoists, etc. for specific tasks.
  • Safety Equipment – Protect yourself and the team with masks, suits, gloves, goggles and more.

Carefully equip your car repair shop with essentials for your services without overspending initially. Quality tools and equipment will prove a sound long-term investment for your auto mechanic shop.

8. Hire employees

Your mechanics and employees will have a significant impact on customer satisfaction, repeat business, word-of-mouth referrals, and, ultimately, your shop’s success.

Instead of multiple veteran (and pricey) master technicians, consider hiring one experienced lead mechanic to manage 2-3 promising trainees. This cost-effective approach avoids high payroll overhead upfront while developing loyal employees invested in your new business.

Prioritize candidates that combine excellent technical capabilities with superb customer service skills. Seek out both an eagerness to learn and patience to explain repairs to clients.

Budget around $15-$30 per hour for mechanic salaries based on proficiency and specialization. Pay well to attract real talent but leave room to grant raises as team members gain expertise. Investing in your staff’s growth now will pay long-lasting dividends through their commitment, productivity, and expertise.

9. Marketing your auto repair shop

First priority – focus on word-of-mouth, as 77% of people trust repair recommendations from family and friends. Establish referral partnerships with complementary businesses like dealerships and tow truck companies.

Capture customer contact information so that you can send occasional promotions and maintain relationships. An incentive, such as 10% off their next visit, encourages email sign-ups.

Also, be sure to create a user-friendly website and claim social media profiles on Facebook, Instagram, etc. Respond promptly to online reviews – both good and bad!

Run local newspaper ads to increase community visibility. Attend town events to network face-to-face and pass out flyers and business cards to connections made. Also, inform everyone you know that you are starting your own business and request that they refer you to others.

With the right mix of grassroots and digital marketing, you’ll boost visibility and introduce neighborhood drivers to your shop’s services.

Well, there you have it – everything you need to start your own car repair shop empire successfully! Keep these essential steps in mind when you start your mechanic shop.

With proper dedication and strategic planning, you are on your way to a profitable business journey.

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Frequently Asked Questions

How profitable is an auto shop.

On average, you can expect net profit margins around 6-7%. For every $100K in revenue, shops typically clear $6,000-$7,000 in profit. Manage costs well and you can do even better!

Do you need a mechanic license to open a shop?

In most cases, no specialized license is legally required – just standard business licenses and registrations. However, certifications like ASE demonstrate your qualifications, boost credibility, and can attract new customers.

What equipment is needed for an auto repair shop?

Essentials are lift equipment, mechanic’s tools, diagnostic scanners, safety gear, welding equipment and specialty tools based on your services. Assess by projected car volume and menu offerings. Consider renting major lifts initially.

How can I market my auto repair shop effectively?

Focus on word-of-mouth via partnerships and over-the-top customer service. Run local ads and use social media. Having a professional website and online profiles also helps modern shops tremendously.

How much funding do I need to start an auto repair shop?

Starting an auto repair shop costs around $10,753 to $100K+. Key costs are equipment, inventory, business license and insurance, lease deposit, payroll until revenue stabilizes. Create detailed financial business structure and seek loans if your savings can’t cover everything.

About the Author

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Popular Templates

Auto Repair Shop Business Plan Template

Launch your Auto Repair Shop with our comprehensive and user-friendly business plan template. It covers everything from market analysis tailored to the automotive industry to financial planning, ensuring your success in the auto repair field.

business plan for existing auto repair shop

Download the template today!

Features of our auto repair shop business plan template:.

  • Market Analysis: Dive deep into the automotive repair market, identify key customer segments, and understand their specific vehicle maintenance needs. Our template simplifies market analysis, customized for your auto repair shop.
  • Business Model: Define your shop's unique value proposition, select the right services, and identify your target customer base. Our template offers insights and guidance for choosing the most effective business model for your auto repair business.
  • Financial Projections: Predict revenue streams, expenses, and profitability with our comprehensive financial planning section. This ensures informed decisions and practical financial goals for the financial stability and growth of your auto repair shop.
  • Marketing Strategy: Develop a marketing plan that effectively promotes your auto repair shop, highlighting the quality services you provide. Our template aids in creating a strategic marketing approach, including branding, outreach campaigns, and customer engagement strategies.

Benefits of Using Our Template:

  • Time and Effort Saving: Utilize our pre-designed template to save valuable time. Focus on refining your auto repair concept and business strategy without starting from scratch.
  • Clarity and Guidance: Our template provides a clear path, ensuring you cover all essential aspects of your auto repair business plan. Stay on track toward your goals and avoid overlooking key elements crucial for your shop's success.
  • Increased Success Opportunities: A well-structured and comprehensive business plan improves your chances of success in the competitive auto repair industry. Our template equips you with professional tools to attract potential clients or investors, demonstrating your commitment to providing exceptional auto repair services.

Auto Repair Shop Business Plan Frequently Asked Questions

Q: why do i need a business plan for my auto repair shop.

A: A business plan for your auto repair shop is crucial as it serves as a roadmap for success in the automotive repair industry. It helps in analyzing the market, setting objectives, and devising a strategic approach. Additionally, a well-structured business plan can attract potential clients, investors, or partners interested in supporting your venture.

Q: What are the key components of an auto repair shop business plan?

A: A comprehensive business plan for an auto repair shop should include vital elements such as market analysis, your shop's business model, financial projections, marketing and outreach strategies, and operational plans tailored to automotive repair needs. These components are essential for understanding the auto repair market, managing finances, and outlining how you will provide quality services to vehicle owners.

Q: How can an auto repair shop business plan help in securing funding or partnerships?

A: A well-prepared business plan demonstrates to potential investors, lenders, or partners your deep understanding of the automotive repair industry, a robust business model, and a clear strategy for delivering quality auto repair services while achieving financial sustainability. Financial projections play a vital role in showcasing the potential for a return on investment. Presenting a comprehensive business plan can significantly enhance your chances of obtaining the necessary capital to establish or expand your auto repair shop, highlighting your commitment to providing exceptional vehicle repair services.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

business plan for existing auto repair shop

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

business plan for existing auto repair shop

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

business plan for existing auto repair shop

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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Auto Repair Shop Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Auto Repair Business

Are you about starting an auto repair shop ? If YES, here is a complete sample auto repair shop business plan template & feasibility report you can use for FREE .

All over the globe, the auto repair business is such that is important. This is because of the need to have cars fixed.  Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the auto repair garage is one of them.

All over the world, car repairs is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.

As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

People visit auto garages for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; auto repair garage will always translate to money for the owner of the repair garage.

A Sample Auto Repair Shop Business Plan Template

1. industry overview.

Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start.

The Auto Repair Shop industry provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair shop industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair

The Auto Repair Shop industry is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.

The Auto Repair Shop industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth. Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Statistics has it that the Auto Repair Shop industry in the united states of America, is worth $58bn, with an estimated growth rate of 1.4 percent. There are about 251,016 registered and licensed auto repair garages in the United States and they are responsible for employing about 530,978 people.

Over and above, the auto repair shop industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own auto repair business and of course make good money from the industry.

2. Executive Summary

Jack & James Auto Garage®, LLC is a U.S based and licensed auto repair garage. We have been able to secure a standard and well – positioned garage facility in a central and busy district in Fairhope – Alabama.

We are an auto repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Fairhope – Alabama, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Jack & James Auto Garage®, LLC will offers services such as mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading auto repair garages in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

Our workers are going to be selected from a pool of certified and highly experienced auto repair engineers and technicians in and around Fairhope – Alabama and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading auto repair garages and services centers in the United States and throughout the globe.

At Jack & James Auto Garage®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Jack & James Auto Garage®, LLC is founded by Engr. Jack Romney an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his twin brother and business partner for many years James Romney.

They have a combine experience that can help them build Jack & James Auto Garage®, LLC to favorably compete with leaders in the industry such as Jiffy Lube, Midas and Monro and also automobile manufacturing companies who have services centers.

3. Our Products and Services

Jack & James Auto Garage®, LLC was established with the aim of maximizing profits in the auto repair shop industry. We want to compete favorably with the leading auto garages in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance carried out or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Jack & James Auto Garage®, LLC is not just accepted in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages. Our products and services are listed below;

  • Repairing and replacing automotive engines
  • Performing general automotive repairs
  • Power train repair services
  • Brake repair services
  • Scheduled and preventative repair and maintenance services
  • Repairing trucks
  • Repairing and replacing automotive exhaust systems
  • Repairing and replacing mufflers
  • Repairing automotive transmissions
  • Repairing automotive brakes
  • Performing automotive electric repairs
  • Performing automotive wheel alignments
  • Repairing automotive radiators
  • Wheel alignment and repair services
  • Other repair and maintenance services

4. Our Mission and Vision Statement

  • Our vision is to establish a standard and world class auto repair garage whose services and brand will not only be accepted in Fairhope – Alabama but also in other cities in the United States of America.
  • Our mission is to provide professional auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
  • We want to build an auto repair garage that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

Our Business Structure

Jack & James Auto Garage®, LLC is an auto repair and maintenance garage that intend starting small in Fairhope – Alabama, but hope to grow big in order to compete favorably with leading automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Jack & James Auto Garage®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Auto Garage Supervisor

Human Resources and Admin Manager

  • Sales and Marketing Executive
  • Automobile Repair and Maintenance Engineers / Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Auto Garage Supervisor:

  • Serve as project manager of the organization; works directly with employees
  • Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Make certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
  • Ensures that the organization work in line with international best practices.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Create new markets cum businesses for the organization
  • Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Jack & James Auto Garage®, LLC
  • Serves as internal auditor for Jack & James Auto Garage®, LLC.

Auto Repair and Maintenance Engineers (2) and Technicians (8)

  • Handle Power train repair services
  • Handles Brake repair services
  • Handle wheel alignment and repair services
  • Handles other repair and maintenance services
  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Jack & James Auto Garage®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured auto repair garage business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Jack & James Auto Garage®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Jack & James Auto Garage®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

As a new auto repair and maintenance garage in Fairhope – Alabama, it might take some time for our auto repair and maintenance garage to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States. As an auto repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.


  • Market Trends

One good thing about the Auto Repair Shop industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry , revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Shop Industry, As a matter of fact, the Auto Repair Shop industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.

8. Our Target Market

Before starting our auto repair and maintenance garage in Fairhope – Alabama, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of auto repair and maintenance garages especially haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Transport Companies
  • Haulage Companies
  • Individuals and households
  • School with transportation system for students

Our Competitive Advantage

Surviving in the business world as an auto repair and maintenance garage requires more than, your expertise, knowing how to deliver standard repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big solar automobile repair, servicing and maintenance garages and the small ones as well.

What smaller auto maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations (franchise from automobile manufacturing companies to run their service centers) and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups automobile maintenance, servicing and repair businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.


  • Sources of Income

Jack & James Auto Garage®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Jack & James Auto Garage®, LLC will generate income by offering the following auto maintenance, servicing and repair related services;

10. Sales Forecast

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to take their cars, vans, and trucks et al for routine maintenance and servicing or for outright repairs.

We are well positioned to take on the available market in the automobile maintenance, servicing and repair services industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our solar panel installation, maintenance and repair company to enviable heights.

We have been able to critically examine the automobile maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fairhope – Alabama.

Below is the sales projection for Jack & James Auto Garage®, LLC. It is based on the location of our business and of course the wide range of auto repair, servicing and maintenance services and target market;

  • First Year-: $250,000
  • Second Year-: $750,000
  • Third Year-: $1,000,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same auto maintenance, servicing and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Jack & James Auto Garage®, LLC.

Our corporate goal is to grow Jack & James Auto Garage®, LLC to become one of the top 10 automobile maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Fairhope – Alabama but also in other cities in the United States of America where we intend opening our garages.

Jack & James Auto Garage®, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our auto maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
  • Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
  • Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Fairhope – Alabama and other cities in the United States of America where we intend opening our garages which is why we have made provisions for effective publicity and advertisement of our solar panel installation, maintenance and repair company.

Below are the platforms we intend to leverage on to promote and advertise Jack & James Auto Garage®, LLC;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around Fairhope – Alabama
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of Jack & James Auto Garage®, LLC and the services we offer
  • List our auto repair, servicing and maintenance business in local directories / yellow pages
  • Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Jack & James Auto Garage®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily bring in their fleet of automobiles for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

  • Payment Options

At Jack & James Auto Garage®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting an automobile repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Jack & James Auto Garage®, LLC in the United of America;

  • Business incorporating fees in the United States of America will cost – $750.
  • The budget for Liability insurance , permits and license will cost – $3,500
  • Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $25,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
  • Amount required to purchase the needed software applications to run our business – $ 3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard auto repair, maintenance and servicing garage in the United States of America.

Generating Funding / Startup Capital for Jack & James Auto Garage®, LLC

Jack & James Auto Garage®, LLC is a business that will be owned and managed by Engr. Jack Romney and his twin brother and business partner for many years James Romney.They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Jack & James Auto Garage®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our auto maintenance, servicing and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Jack & James Auto Garage®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard office facility for our studio: Completed
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Purchase of repair and servicing tools and equipment: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in various industries: In Progress

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Designing an Auto Repair Shop Business Plan That Clarifies Your Vision

Craft your auto repair shop business plan to achieve your objectives. select a shop management system that can help you bring your vision to life., mapping out a business plan and investing in a shop management system like tekmetric will help you help more people in the long run. find out how in our step-by-step guide..

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

Starting a business can be a big risk. But if you map out a plan and execute it right, the outcome is well worth it. Having a solid automotive repair shop business plan in place is especially important if you ever plan on owning multiple shops. 

When you realized that you wanted to be a shop owner, it’s likely you considered the good you can do for both yourself and other people. Helping customers get their vehicles back on the road, and helping service advisors and technicians grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop. 

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

Find the right tools.

In order to make the ride to becoming a successful shop owner a smooth one, your present self will need to have your future self’s back. You’ll need to ensure all of your ducks are in a row. And by ducks, we mean your people, processes, and systems. And most importantly, you’ll need to make sure that you are ready to take on this venture. 

You may even get excited thinking about the far future of your business—when it’s feasible to expand your business to include multiple shops. It’s good to dream big, and especially in auto repair, more shops means that you can help more people. But it’s important to understand how you’re going to get there, and what pitfalls to avoid. 

Before we jump into how your business can expand, let’s take a look at some of the reasons why new business ventures don’t make it . Don’t let this waiver your goals as a shop owner though. In fact, we’re writing these out so you can beat the odds.

6 Common Reasons Why New Businesses Fail 

Each business, and each story, is different. But there are a few common themes that usually lead to new businesses failing.

1. Not investigating the market 

When you’re opening up a new business, it’s crucial to consider the demand for auto repair and the unmet auto repair needs within the area you plan on opening shop. It’s easier to satisfy a known need rather than creating a need and having to convince your customers. 

2. Business plan issues

Your business plan is like your company’s Bible. You’ll spend months, or even years, making sure it is the perfect guidebook for your shop. Once your business plan is created, it’s important to follow it.

Taking chances that aren’t outlined in your plan could lead to further setbacks. Although setbacks are less common if you’ve carefully and diligently mapped out your plan, there’s always the possibility that your plan isn’t 100% sound. If that’s the case, determine the issue, find a solution, and adjust your plan accordingly. 

3. Not enough financing

Financial planning is crucial for any new business venture. If you don’t start off with enough money and end up having to stretch the financial line too thin, it’s possible your business may never get off the ground. 

4. Bad location, absent online presence, and other marketing issues

The location of your business, the online presence of your business, and the marketing efforts conducted throughout your business’ lifecycle are pivotal to your shop’s success. If you start an auto repair shop that focuses on truck repairs in the middle of a city where there aren’t a lot of truck drivers, it’s likely your shop won’t succeed. The same goes for online presence and marketing efforts.

You need to reach the people who may not regularly drive by your shop by considering where they spend their time online. What social media channels are they on? How do they use search engines to find local businesses? Tailored advertising efforts and five-star raving reviews will help bring more business to your shop. Without the best location, an established online presence, and the right marketing strategies , your business has less potential to last. 

5. Becoming complacent 

Just because you’ve finished up your business plan and started your business doesn’t mean the research should stop there. It’s always important to remain in-the-know on key market trends. By keeping an eye on the auto repair market, you’ll know exactly when and how you need to make adjustments to your business in order to keep growing. 

6. Expanding too fast 

Sometimes a business owner that is experiencing newfound success may keep reaching and reaching, and reaching, until their finances are drained. While it’s important to have an entrepreneurial spirit, it’s just as important to make smart investments.

If you want to open up more shops in the future, it’s important to give your new shop just as much tender love and care as you gave your first location.

Make sure you have a solid understanding of where you want your next location to be, who your intended customers are, whether you want to try selling new products or services, and how exactly you plan on testing the success of any new ideas.

According to , the bottom line is this: “Though the rate of business failure in the first two years is around 20%, it doesn't mean that you have to fail. Through research, planning, and flexibility, you can avoid many of the pitfalls of a new business and be a part of the 25% that make it to 15 years and beyond.”

What Is An Auto Repair Shop Business Plan? 

The best way to execute your business is with a plan. An automotive repair shop business plan will outline your auto repair shop business so that you can present it to investors or any other stakeholders that you want to bring along on your business venture.

A business plan is the overall vision of your business, the goals you want to achieve, and the roadmap that will keep your company afloat. 

Your Auto Repair Shop Business Plan Serves as a Roadmap

A clear auto repair shop business plan will provide you with:

  • Clarity on what needs to be done 
  • The ability to spot issues as early as possible while making good investments 
  • A sustainable and viable business model  

Clarity On What Needs To Be Done

An auto repair shop business plan will make it easy for you to explain your business model and where your shop is headed. You’re going to encounter obstacles, and in order to tackle them head on, you need to stick to your strategic plan and adjust accordingly. 

Your automotive repair shop business plan will provide you with clarity on: 

To Spot Issues Early While Making Good Investments

To prevent setbacks, you need to invest in the right things. The way you invest prior to opening up your shop, during your business’ lifecycle, and once expansion is on the horizon, will make or break your business.

Your auto repair shop business plan will help you determine the right routes to take when it comes to investing in: 

A Sustainable and Viable Business Model

By carefully mapping out your business’ roadmap, you’ll have the ability to achieve a sustainable and viable business model. 

Your auto repair shop business plan will help you: 

  • Secure funding 
  • Know when and how to expand
  • Stick to growth goals and milestones

Each three of these categories can be more attainable with a clear mind. According to Walter Isaacson’s The Book of Jobs , Steve Jobs would often stress that the driving factor behind his creative inspiration was a clear mind through meditation.

So, before you get started crafting your quintessential automotive repair shop business plan, try to gift yourself the ability to tune out the noise during important decision-making matters. Here are three ways you can go into your business ownership journey with a clear state of mind: 

  • Set aside time to commit to a muscle memory activity. A muscle memory activity could be going on a walk every morning with your dogs, heading to the driving range to hit a few golf balls in the evenings, playing an instrument, or picking up a good book. 
  • Choose an activity that you genuinely enjoy doing and make it a habit. If meditating isn’t for you, you won’t be able to let go of the daily noise and distractions, and in turn you won’t be able to gain clarity of mind. Whatever you choose should be something you look forward to doing so that you can place all of your focus on that activity. Being able to focus is incredibly important for business owners because there are so many things that can occupy your mind in a given moment. Find an activity that helps you organize and become more aware of your thought process. 
  • Reduce the noise around you by finding an activity that you can do by yourself. Finding an activity that helps you clear your mind and step away from others’ input will help you get back in tune with where you really want your business to go. 

These are just three tips. What works for one person may not work for you. Our primary recommendation for new business owners is to commit to not only working on your auto repair shop business plan but also commit to working on yourself so that when you hit the road, you’re able to face any and all obstacles with a clear, open mind. 

So, What’s Included in an Auto Repair Shop Business Plan? 

There are nine steps to crafting the quintessential automotive repair shop business plan that will help you achieve your business goals—from owning one auto repair shop to becoming a multi-shop owner.   

  • Write an executive summary
  • Describe your shop
  • State your business goals
  • Describe your products and services
  • Do your market research
  • Outline your marketing and sales plan
  • Perform a business financial analysis
  • Make financial projections
  • Create a plan for growth and expansion 

Sure, those nine steps may sound tedious, but it pays to plan.

According to entrepreneur masterminds Francis J. Greene and Christian Hopp , high-growth oriented entrepreneurs are 7% more likely to plan out their business.

Furthermore, entrepreneurs who write business plans are 16% more likely to achieve viability than entrepreneurs who don’t develop a plan.

What Do You Need to Create Your Auto Repair Shop Business Plan?

You can build a successful launching pad for your auto repair business by conducting market research, developing a marketing plan for your auto repair shop, and evaluating the operational costs and investments you will need to make. 

Conduct market research

Here are four steps you can follow to successfully conduct local market research: 

  • Determine your shop’s market area 
  • Create a profile of your shop’s ideal customers 
  • Determine the size of your market (pro-tip: check out City-Data for a detailed, informative profile of your target market). 
  • Find out how many competitors are in your target market area

Remember that drivers are typically willing to drive a few miles to get their vehicle serviced, but driving over 10 miles might not be realistic for someone if their vehicle has an issue. So you may want to start looking at the demographics within a 10 mile radius of your auto repair shop. 

When looking at your target area, you can ask the following questions to get a good sense of your business’ market: 

  • Is there a desire for your products or services? 
  • How many people would be interested in your offering? 
  • What is the income range and employment rate of your customers? 
  • How many similar options are already available to consumers in your area? 
  • How much do potential customers pay for these alternatives? ‍

Even after you open shop, keep conducting market research. You want to be able to keep up with the latest auto repair industry trends so that your shop’s profits keep growing. Getting a feel for the type of customers your shop serves will set a strong foundation for your auto repair shop business plan. 

Develop a marketing plan for your auto repair shop

Once you know your audience, develop a marketing plan that aligns your vision with the people you plan on serving. Here’s an overview of marketing strategies you can use to attract customers to your new shop: 

  • Get involved in your community
  • Run special promotions for first-time customers
  • Partner up with an adjacent local business like a body shop
  • Advertise locally
  • Run targeted social media ad campaigns
  • Up your shop’s search engine optimization (SEO) game

‍ Evaluate operational costs and investments

When it comes to successfully launch i ng your business, you’ll need to weigh any potential costs and investments that you intend on making. Always leave a bit of wiggle room for unexpected expenses, like hiring one more person that you anticipated, or paying a little extra for a more reliable shop management system. Sometimes spending a little extra means getting a higher return on investment, making it well worth the cost. But you have to ensure that you have the wiggle room first. 

The investments you put into your shop at the beginning will play a huge role in determining how profitable your auto repair shop will be in the future . You’ll want to evaluate: 

  • The location you will operate your shop from
  • The equipment you will invest in 
  • The shop management system that will support you from day one and beyond 

The right shop management system will give you and your team: 

  • ‍ ‍ The ability to gain experience 
  • ‍ A methodical system for analysis
  • Digital tools and integrations
  • Guardrails that prevent errors
  • The ability to track declined jobs
  • Better compliance standards
  • A workflow to quickly build accurate estimates
  • A direct tie to all shop systems
  • The capacity to set and reach profit goals
  • A clear framework for enhancing customer experience

9 Steps to Create a Business Plan for Your Shop

But before we get too excited about finding the right shop management system, here’s the moment you’ve been waiting for: the nine steps you can take to craft an automotive repair shop business plan that will help you reach new heights and open up more shops in the future.  

1. Write An Executive Summary

Your business plan’s executive summary is designed to capture any investors’ or stakeholders’ attention. It gives them an overview of your shop’s business opportunities and an overview of the rest of your auto repair shop business plan. 

In your executive summary, you will briefly explain the problem you are solving, your business ideas, the target audience, and any key financial information. Your business plan’s executive summary should capture each of the aforementioned topics in no more than two pages . 

‍ The problem statement: this introduces the reader to the gap and/or problem in the auto repair industry that your business aims to solve. 

‍ The business statement (aka your business model): this will show the reader exactly how you plan to tackle the problem—both how you plan to approach the problem and how you plan to solve it. During this section, you want to briefly explain how your auto repair business will help solve whatever problem you found in the market. 

‍ The target audience statement: during this section, you’ll map out any customer demographic details and how you plan on targeting these audiences. 

‍ The financial plan summary: any financial institution or investor you approach will want to know how you plan on spending their funds. During this section of the executive summary, you want to cover where you plan on allocating funds and any applicable financial projections. 

Find a Shop Management System That Will Make Tracking Your Shop’s Financial History a Breeze  

‍ For those of you who are current shop owners and want to craft a new automotive repair shop business plan, the financial plan in your executive summary will have to include a history of your shop’s past financial performance.  With Tekmetric, you can use accurate, real-time data to easily track how money flows through your shop. Tekmetric’s Real-Time Financial Reports include three reports that are particularly useful during this step of your auto repair shop business plan:  1. End of Day Report  ‍ The End of Day Report is an overview of how effectively your shop has been selling repair work during a given time range. You can select what time range you want to view a financial report for. The End of Day Report breaks down your shop’s overall shop metrics, including Total RO’s, Hours Presented, Hours Sold, Close Ratio, Effective Labor Rate, Average Repair Order (ARO) Sales, ARO Profit, ARO Profit Margin, Gross Sales, and Gross Profit.  2. Profit Details Report ‍ The Profit Details Report will show you the exact profit you’ve made across all of your shop’s ROs. A perk to the Profit Details Report is that you can also break it down even further to show the profit your shop has made within individual ROs.  3. Sales Details Report  ‍ The Sales Details Report will show you how much your shop has sold in parts and labor over a given time range, how much money has been collected from sublets, fees, and taxes, as well as the dollar amount of the discount your shop has provided to customers. 

2. Describe Your Shop

What makes your business stand out? What’s your company’s mission? What are the most important aspects of your business? These are the questions this section of your auto repair shop business plan will answer. 

When determining your shop’s mission statement, try to keep the following tips in mind: 

  • Make it a long-term mission statement 
  • Think big picture and high level  
  • Keep it short and concise
  • Use “Our” and “We” when writing your mission statement. For example, “We provide the highest quality repair services to the drivers of East Omaha, Nebraska”
  • Work with your potential stakeholders and/or employees to come up with your mission statement
  • Don’t be afraid to change it 

Let’s take a look at ten popular mission statements. If you can think of the company’s name, then their mission statement did its job. 

  • “To bring inspiration and innovation to every athlete in the world.*
  • If you have a body, you are an athlete.”
  • “To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.”
  • “To inspire humanity—both in the air and on the ground.” 
  • “To accelerate the world's transition to sustainable energy.”
  • “Spread ideas.” 
  • “To give everyone the power to create and share ideas and information instantly, without barriers.”
  • “To organize the world’s information and make it universally accessible and useful.”
  • “We save people money so they can live better.”
  • “To be a company that inspires and fulfills your curiosity.”
  • “To build and deliver an integrated set of digital tools that complement one another and empower shop owners to grow a thriving automotive repair business.”

In order from top to bottom, the mission statements belong to Nike, Warby Parker, JetBlue, Tesla, TED, Twitter, Google, Walmart, Sony, and Tekmetric. 

What do each of the above mission statements have in common? They uncover the primary existence for each company, and they deliver their purpose and overall intention. 

As you’re developing your automotive repair shop business plan, think of ways your auto shop can stand out in your community. If you want a good example, check out our Shop Spotlight of Turbo Tim’s Anything Automotive . Turbo Tim’s shop owner Tim Suggs crafted his shop around a unique and relatable culture that gives back to the community. Their focus is on “average cars, average people.” 

‍ “Early on, it was apparent that if I put people first, the money would come. I focused on building an atmosphere that was both fun and professional for employees and customers alike. One of the most instrumental, yet unintentional, parts of our culture came from a cat I found at a machine shop. I’ve always been a cat person, and I asked the technicians there if that was their cat. They said it was a stray that they regularly fed. After checking that he wasn’t microchipped and didn’t belong to anyone, I brought him home with me.

‍ And that’s the origin story of Bobby, our original shop cat. We now have multiple cats who greet folks in our waiting room. Bobby also positively affected our marketing. Halfway through our growth, we began branding ourselves with a cat logo inspired by Bobby. Today, customers who put Bobby bumper stickers on their cars get 10% off for life. Less productive are our chickens, who ‘work’ in the chicken coop on our outdoor patio.”  ‍

When you describe your company in your auto repair shop business plan, you want to unveil what you see your shop being. Yes, you’ll want to mention the mission, but you also want to capture your shop’s values and culture, and what sets your shop apart from the rest.  

Invest In a Shop Management System That Allows Room For Integrations 

‍ Tekmetric partners with other industry-leading solutions to let shop owners fine-tune the repair experience for their team and their customers.  ‍

  • We partner with Mechanic Advisor to bring your customers’ real-time scheduling
  • We partner with Shop Owner Coach to bring your shop personalized coaching and training
  • We partner with Advance Auto Parts so that your team can easily find a good deal on a wide selection of parts
  • We partner with BG Products, Inc. so that you easily provide high-quality maintenance to customers
  • We partner with MyShopManager to ensure your shop’s marketing communication leads to higher customer engagement
  • And that’s just five out of 30+ integration partners your shop can choose from. 

‍ See how the right mix of automotive computer programs fuels business innovation.  

3. State Your Business Goals

The next section of your auto repair shop business plan is where you should state your business goals. Here you’ll want to list out the short-term, medium-term, and long-term goals that you want to achieve with your business. 

  • Short-term business goals: these business goals are to be accomplished in no more than one year. 
  • Medium-term business goals: these business goals should be completed in more than one year, but less than five years. 
  • Long-term business goals: these business goals are what you want to accomplish in five years and beyond. 

As you’re coming up with your shop’s goals, you need to make sure that they are realistic, attainable, and strategic. Ask yourself these six questions as you come up with your business goals: 

  • Why is this goal important?
  • Can we achieve this goal?
  • What can impede or stop us from achieving this goal? 
  • If we set this goal, what are the action steps? 
  • If we meet this goal, how do we take it to the next level?
  • If we don’t meet this goal, how do we rebound? 

Now that you have those six guiding questions, you can start to come up with your shop’s unique business goals. Ask yourself the following questions to help you come up with your company goals: 

  • Why do we do what we do?
  • Where do I see my business this year, next year, and five years from now?
  • What are we selling beyond auto repair?
  • How do we feel about the problems we solve?
  • What values do we want to stand by no matter how big we grow? 
  • What do our customers want?
  • Which promises do we want to make? Which promises can we keep? (Only make promises that you know that you can keep) 
  • What do we need to do today to make sure that we can keep doing the things we want to do tomorrow? 

Whether your goal is to have a 20% profit margin year one or open up a second location in the next five years, the business goals section in your automotive repair shop business plan will help you remember why you set that goal in the first place. 

Choose a Shop Management System That Makes it Easy to Reach Your Goals ‍

‍ If your goal is to increase your sales and ARO, then you’ll like Tekmetric’s Digital Vehicle Inspection (DVI) feature. Tekmetric’s DVIs are designed to inform and show your customers exactly what’s going on under the hood. And the better you can explain vehicle issues, the more likely your customers will be on board with getting the recommended repair work done.  Tekmetric’s DVIs include six core features that will benefit both your team and your customers:  ‍

  • A searchable DVI history  
  • The ability for technicians to attach photos and videos to inspections
  • A color-coded system that indicates the severity of inspection findings
  • A direct tie-in to parts and labor data when building estimates
  • The ability to add canned jobs when building estimates
  • Digital authorization for jobs
  • A declined jobs report that automatically saves and tracks declined jobs

‍ See what else Tekmetric’s DVIs can do for your shop. 

4. Describe Your Products and Services

In the products and services section of your auto repair shop business plan, it’s important to focus on your customers’ perspective and needs. The overall goal of the products and services section is to prove that your shop will fill a market need and remain viable. 

Here are some questions you’ll want to answer in this section:

‍ What kind of vehicles will your shop fix?

Do you want to run a general auto repair shop or a specialty auto repair shop? You can determine whether your shop will focus on exotic vehicle repairs, diesel engine repairs, fleet work, or stick with the standard independent garage clientele. 

‍ ‍What type of services will your shop provide?

Along with determining the kinds of vehicles you’ll service, you’ll also want to consider each service your shop will provide. Will your main focus be on oil changes, tune-ups, and regular maintenance? Will you want to sublet some of your repair work? It could be that you focus on standard repairs, but when a customer comes in with a specific job that you don’t want to turn down, you can have that repair work done through a subcontractor, but you’d have to establish that partnership . 

‍ How will your shop’s name and brand clarify your audience and services?

Your shop’s main focus may be something you’ve already thought of, but what about your shop’s name? It’s a good idea to choose a name that speaks to your shop’s target customers and the types of services you provide. For example, Bavarian Motor Repairs specializes in servicing BMWs, MINIs, and Rolls Royces. Or maybe you want your shop to cater to everything auto repair related like Turbo Tim’s Anything Automotive. 

‍ What types of products will your shop provide?

Knowing the types of vehicles and services your shop will provide to customers is great, but what about the types of products you plan to sell to your customers? Many shops choose to sell specific types of fluids that their customers can rely on. Similarly, shop owners may sell products and equipment that can make their customers’ vehicles last longer and perform better. You can also offer products that make for an easy upsell such as air fresheners, floor mats, or even merchandise with your shop’s logo on it.  

Find a Shop Management System That Expedites The Parts Purchasing Process  ‍

‍ Tekmetric’s Canned Jobs Board pulls from inventory to see what parts you already have on hand and what parts you need to purchase. You can also set a parts markup on inventory items that are added to canned jobs so that you can lock in your parts margin.

This addition to your parts management strategy will cut out all the guesswork and streamline jobs. Your team can save time sorting through parts and spend it actually repairing vehicles and providing excellent customer service.

In Tekmetric, you can view and sort canned jobs by:

  • Job category

To make your parts purchasing experience even easier, Tekmetric has partnered with some of the most trusted parts vendors in the industry: 

  • MyPlace4Parts
  • OEC Repair Link

5. Do Your Market Research

You probably did some market research when you first began forming your business plan. But as you write this section, you’ll really want to sharpen your market research and organize your findings.

There are two main types of market research that you can do when planning your business. 

‍ Primary Market Research: any type of research that you collect yourself. Examples include surveys, interviews, and observations. 

Secondary Market Research: any type of research that involves compiling existing data. Examples include searching websites, going to libraries, looking at government statistics, or even using internal resources like your shop’s average revenue per sale, customer retention rates, and any other historical data you see fit (this is especially useful for current shop owners looking to expand). 

To successfully conduct market research, you should follow these fives steps: 

1. Determine the purpose of your market research

Before starting your market research, determine your goal for doing it in the first place (aside from creating the business plan, of course). Common reasons why business owners conduct market research include wanting to understand a new market or to gauge the success and strategies of competitors. 

2. Research the current state of the auto repair industry

Look at where the auto repair industry currently is and where it seems to be heading. The goal here is to determine any potential trends and projected growth that can give your business a competitive edge in the auto repair industry. Check out Ratchet+Wrench for the latest auto care insights.

3. Define your buyers’ personas, aka “marketing personas” 

Creating buyer personas will help you understand who your customers are. Your buyer personas should include age, gender, location, job titles, family sizes, incomes, needs, interests, etc. Keep in mind that as you build out your buyer personas, you don’t have to limit yourself to just one persona. There are many different types of drivers and people that need auto repair services. 

There are many useful tools you can use to develop your personas. Here is HubSpot’s free tool that might come in handy while you’re building your personas. 

4. Understand your competition  

To understand your competition, we recommend listing out each of your shop’s competitors. From there, determine what those shops do differently from what you plan to do. Consider their strengths and weaknesses, and any advantages they have in the auto repair market in your area. You can also do a SWOT analysis where you determine their strengths, weaknesses, opportunities, and threats. It’s also good to do a SWOT analysis of your own business, too. 

5. Gather, analyze, and summarize your findings  

Any information you find during your market research will be your friend. You can never have too much data—as long as it’s from a credible source. Here are some resources you can use for credible research: 

  • U.S. Bureau of Labor Statistics
  • U.S. Census Bureau
  • State and local commerce sites
  • Your own SWOT analysis
  • Market surveys or questionnaires

When it comes to analyzing your market data, it’s best to organize it all into sections that make the most sense to you, your stakeholders, and your investors. The main topics you want to focus on are your shop’s purpose, the target market, and your competition. Examples of elements within your market research analysis can include your customers’ buying trends, forecasted growth, how much customers are willing to pay for your services, and an industry overlook, including the industry’s size and growth rate. 

Invest in a Shop Management System That Tracks Your Customers’ Historical Data 

‍ Tekmetric’s customer reports help keep your market research fresh. You can see which service you sell is the most popular and who your most frequent customers are. You can also get more accurate data about different customers’ buying behavior when you start generating with Tekmetric’s customer reports. 

‍ Customer List Report: Tekmetric’s Customer List Report gives you an overview of each customer’s Lifetime Visits, Lifetime Spend, Lifetime Profit, Lifetime ARO, Lifetime Close Ratio and other key stats.

‍ Declined Jobs Report: With the Declined Jobs Report, service advisors can see all jobs that have been declined on past ROs so that they can get them back in the shop. Identify which jobs are declined most often so that you can create effective promotional campaigns that upsell, cross-sell and improve your Close Ratio.

6. Outline Your Marketing and Sales Plan

After conducting market research and deciding on the products and services your shop will provide, you can work on your marketing strategy. Your marketing strategy should specify how you plan on marketing different services and products to different demographics. 

For example, if you decide you want to focus on diagnostics for BMWs, then your marketing plan will show how you plan to target BMW owners for that particular service. Maybe you could go find BMW groups or figure out where BMW owners like to shop or frequent, and advertise there. 

A strong marketing and sales strategy will help your shop maximize and leverage profits. Marketing expenses are something you need to invest in, but you also need to ensure that you’re getting a strong return on your marketing investments. 

‍ Here are a few examples of impactful marketing strategies: 

  • Website branding
  • Local reviews
  • Social media campaigns
  • Email marketing
  • Content marketing
  • Referral program
  • Reward program
  • Pay-per-click ads
  • Print and physical marketing

Whatever marketing efforts you choose to invest in, make sure you track the data so you know what works and what doesn’t. 

Choose a Shop Management System That Helps You Refine Your Marketing Strategies

‍ A shop management system like Tekmetric can show you whether or not your strategies are working. 

‍ Marketing Source Report: You can track the payoff that each marketing strategy brings your shop by using Tekmetric’s Marketing Source Report. With the RO Marketing Source Report, you can explore how much of your business comes from new sales or repeat sales, and identify which marketing sources are bringing in the most business.  

Integrations: Tekmetric integrates with several marketing solutions that will help your shop further grow its customer base. Our marketing integrations include Mechanic Advisor, KUKUI, MyShopManager, MechanicNet, RepairPal, and more.

7. Perform a Business Financial Analysis

In the financial analysis portion of your auto repair shop business plan, you want to unpack how much money your shop will need to get off the ground and exactly how you plan on spending it. 

Some common capital and startup expenses include: 

  • Rent or lease payments
  • Utilities costs such as telephone and internet, electricity, heating, etc.
  • Maintenance costs such as mending leaks, maintaining equipment, snow plowing, landscaping services, etc.
  • Taxes, including state income tax, property tax, payroll tax, sales tax, fuel tax, etc.
  • Office equipment such as computers, printers, tablets, desks, chairs, etc.
  • Marketing expenses
  • License renewals
  • Lobby supplies such as water, coffee, snacks, etc.
  • Employee appreciation such as gifts, holiday outings, meals, team bonding, etc.
  • Ongoing training and education opportunities

Another key component to your financial analysis is your break-even analysis. A break-even analysis is when you factor in both your costs and your shop’s sales to determine the moment you will break even. 

So, what is a break-even point? A break-even point is when your business will begin making a revenue that should cover your total amount of overhead costs—both the fixed and variable costs accumulated over time. 

‍ Break-Even Point Formula: 

(Overhead Costs + Balance Sheet Payments) / Gross Margin = Break-Even Point

For example: ($30,000 + $10,000) / 95% = $42,105.26

In the example above, it concludes that you need to sell a total of $42,105 to make sure that you cover your overhead costs and balance sheet payments.

Choose a Shop Management System That Can Assist in Managing Your Shop’s Common Expenses   

‍ While Tekmetric can help you track the cost of goods through reports, your accounting tools such as QuickBooks, is where you’ll track a lot of your daily expenses. Tekmetric doesn’t include a built-in accounting system, but we do have an accounting link through one of our integration partners, The Back Office, which gives you the ability to manage your books, track income and expenses, and easily perform audits for all your accounting needs with just a few clicks.

Tek-Tip: improve your profits and fine-tune your shop’s goals with Tekmetric’s built-in Parts Matrix and Labor Matrix. Tekmetric makes it easy for shop owners and service advisors to include the right markups on each and every job.

8. Forecast future opportunities

According to , here are some ways you can make financial forecasts more realistic: 

  • Use at least two financial projection scenarios. One can be more optimistic and the other can be more cautious. It’s best to err on the side of caution while also making space for the optimistic predictive forecasts that new and aspiring business owners are prone to make. 
  • Predict your expenses first, then your revenues. 
  • Identify and include assumptions that are outside of your control, including how much you predict the market will grow, any possible changes in the competitors you’ve found, and any advancements in technology that could impact your business. 
  • Assess, reassess, and reassess again. Forecasts shouldn’t be stagnant. The more up-to-date your forecasts are, the more prepared you will be to make informed strategic decisions.

Invest in a Shop Management System That Lets You Categorize Reports into Different Time Periods 

‍ Tekmetric’s real-time reports empower shop owners to forecast and strategize by choosing between annual and weekly forecasting. 

‍ Annual Forecasting: With annual forecasting, you can get a sense of where your shop is at and how the rest of the year is likely to play out. If you notice that business is slowing down month to month, it might be time to adjust your marketing strategies. Or maybe you notice that the year has been busier than usual, in which case you may want to consider bringing on more talent to help service your new influx of customers. 

‍ Weekly Forecasting: With weekly forecasting, you can combine sales in progress with closed sales data to get an idea of how much profit your shop is lined up to make by the end of the week.  ‍ Read more about how you can forecast with real-time reports .

9. Create a Plan for Growth and Expansion 

Although this section isn’t necessarily a part of a standard business plan, you’ll want to incorporate it into your automotive repair shop business plan if you eventually want to open additional repair shops. 

To prepare yourself for future growth, you’ll want to ensure that 1) the auto repair shop business plan you’re creating now can be replicated if all goes according to plan and 2) the shop management system you select can grow with you. 

If you play your cards right—or in this case, you craft the optimal automotive repair shop business plan and invest in foundational tools—you’ll be well on your way to becoming a successful owner of multiple auto repair businesses. 

Tekmetric: Your Shop’s Go-To System For Present-Day Planning and Future Expansion 

Just as your automotive repair shop business plan will help you navigate any potential setbacks, the Tekmetric shop management system will help you hammer away as you grow your business.  

The right planning and shop management system will help you determine—in advance—things that can help you achieve your goals, as well as avoid things that can potentially prevent you from achieving those goals. 

Tekmetric will: 

  • Make tracking your shops’ financial history a breeze
  • Allow room for integrations 
  • Make reaching goals easier
  • Expedite the parts purchasing process
  • Help you track your customers’ historical data
  • Help you refine marketing strategies
  • Assist in managing your shop’s common expenses   
  • Empower you to make financial decisions for future growth
  • Create a plan for growth and expansion

Not only will investing time into planning help your vision come to fruition, but it will also help you achieve the dream you stood by since day one: helping your customers get their vehicles back on the road safely. 

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


Four Ways to Maximize Your Shop’s Data

Find reliable automotive repair shop software that shops trust, maximizing auto repair shop customer service: a guide to selling maintenance work, lead your auto repair shop to sucess as a service advisor, the biggest auto repair industry trends to take advantage of in 2024, three tips for growing your career as a service writer.

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Auto repair shop business plan template + PDF

This guide introduces a dedicated AI Business Plan Generator template, meticulously designed for entrepreneurs ready to initiate or enhance their auto repair shop business. It's crucial to understand that the names and financial figures featured in this example are completely hypothetical, serving solely to illustrate the business planning process. These scenarios are carefully crafted to demonstrate how you can adapt your own AI-generated Auto Repair Shop Business Plan to navigate the specific hurdles and leverage the opportunities in your auto repair shop endeavor.

For streamlined customization, we provide an "sample business plan for auto repair shop pdf" for download. This document is vital for entrepreneurs committed to developing a robust and effective strategy for starting or growing their auto repair shop. The 'AI Business Plan Generator' serves as a comprehensive guide, offering profound insights into the auto repair shop industry. It equips you with all the essential tools needed for successfully managing and expanding your auto repair shop business.

Auto repair shop business plan

Auto repair shop business plan

How this auto repair business plan sample was created.

Create your customized auto repair shop business plan seamlessly with our AI Business Plan Generator. Simply click 'Generate your business plan' and respond to a series of targeted questions about your auto repair shop endeavor. Our advanced AI technology will analyze your inputs to craft a business plan that fits your auto repair shop's goals and needs precisely. This quick and streamlined process is usually completed in just 5-10 minutes, resulting in a detailed and systematically organized plan. Our platform offers the flexibility to adjust and refine your strategy, making sure the ultimate plan truly reflects your unique vision for your auto repair shop. Once you're done, your plan is prepared for download, providing a concise, thorough framework for launching and developing your auto repair shop. Take advantage of our AI business plan generator, tailor-made for auto repair shop businesses, to enhance your strategic planning.

sample marketing plan for auto repair shop

Generate your custom auto repair shop business plan in minutes!

Auto repair business plan sample, executive summary, business description, market research and analysis, swot analysis.

  • Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

business plan for existing auto repair shop

Located in the heart of Motorville, USA, MotorCraft Auto Repair Shop is uniquely positioned to serve the automotive repair needs of local residents and small businesses alike. With a full array of services ranging from basic maintenance to advanced diagnostics and troubleshooting, MotorCraft prides itself on being the dependable solution for the vehicular challenges faced by our community.

This executive summary outlines the strategic direction, financial planning, and operational framework designed to drive success for MotorCraft Auto Repair Shop. Our targeted market encompasses a broad demographic of vehicle owners and small businesses within the region, who value quality, reliability, and exceptional customer service. As our community continues to expand, so does the opportunity for MotorCraft to meet the rising demand for comprehensive auto repair services.

At the core of our competitive edge is a management team with a wealth of experience and a passion for automotive excellence. John Smith, a 20-year industry veteran, leads the company as Owner & Master Mechanic, alongside a dedicated team including Service Manager Rachel Moore, Lead Technician Miguel Rodriguez, and Parts Manager Emily Johnson. Each member contributes a specialized skill set that underpins the efficient and effective operation of MotorCraft.

In a rapidly evolving auto repair market, MotorCraft is keenly aware of the challenges it faces. Economic downturns, escalating competition, and technological advancements are just a few of the hurdles in our path. Yet, our strategic planning is buttressed by a SWOT analysis that highlights our robust strengths, such as the advanced qualifications of our staff and strategic location, while addressing weaknesses with practical solutions. Opportunities for growth are continually being pursued, with plans to expand our service offerings and capitalize on digital marketing trends to reach new customers.

Our financial projections for the next five years are optimistic yet grounded in the realities of the auto repair landscape. We anticipate a steady year-on-year revenue increase from $500,000 in Year 1 to $1 million by Year 5, with profits following an upward trajectory as we refine our operations and expand our customer base. Conservative cash flow estimates and a diligent break-even analysis ensure that MotorCraft maintains liquidity and fiscal responsibility.

Significant thought has been given to the operational plan of MotorCraft Auto Repair Shop. Efficiency and customer service stand at the forefront of our daily operations. We utilize professional-grade equipment and a robust inventory management system to ensure speedy service. Technicians are well-equipped with the tools and knowledge necessary to address automotive issues ranging from simple maintenance tasks to complex electronic systems repair.

In line with our commitment to excellence, MotorCraft has developed a comprehensive marketing and sales strategy that relies upon local SEO, social media engagement, and targeted advertising campaigns. Sales tactics include a focus on upselling services and establishing a loyal customer base through personalized care and value-added services. Our customer service policies are designed to foster long-term relationships built on trust and satisfaction.

Risk management is a cornerstone of our strategic plan. MotorCraft has identified key risks and laid out mitigation strategies and contingency plans to safeguard against market uncertainties and operational challenges. Additionally, well-considered insurance and legal practices ensure that MotorCraft remains protected and compliant.

The future looks bright for MotorCraft Auto Repair Shop as we aim to cement our position as a leading service provider in the Motorville region. Through strategic growth, operational excellence, and a steadfast commitment to our customers, we anticipate ongoing success and a legacy of trusted service within the auto repair industry.

auto repair business plan

Auto repair business plan

MotorCraft Auto Repair Shop, strategically located at 123 Auto Street in the bustling urban neighborhood of Motorville, USA, is a stalwart institution in the local automotive repair industry. Our industry is one that hinges on reliability, skill, and the constant evolution of automotive technology. As cars and trucks have become more complex, MotorCraft has stayed ahead of the curve, emerging as an indispensable resource for vehicle owners seeking expert service and trustworthy repairs.

Since its inception in 2010, MotorCraft Auto Repair Shop has been fueled by a singular purpose: to offer unparalleled auto repair services with a customer-centric approach. The roots of MotorCraft stretch back to a modest two-bay garage, founded by automotive enthusiast and entrepreneur, John Smith. With a lifelong passion for cars and an unwavering commitment to quality service, Mr. Smith transformed his vision into a thriving business. Over the past decade, we’ve expanded our facilities, embraced state-of-the-art diagnostic equipment, and assembled a team of top-notch, ASE-certified mechanics, making MotorCraft a household name in auto repair within Motorville and its surrounding areas.

Our mission is clear and resonant: "To deliver superior auto repair and maintenance services through a dedicated team of certified professionals employing cutting-edge technology with a customer-first mindset." At MotorCraft, every bolt turned and every part installed signifies our unwavering dedication to quality and the ultimate satisfaction of our clients. We believe in building relationships, one car at a time, establishing trust through transparency, and providing value that drives customer loyalty for years to come.

As a Limited Liability Company registered in the state of Georgia, MotorCraft Auto Repair Shop enjoys the flexibility of a small business with the protective advantages of a corporate structure. This legal framework supports our mission by allowing us to reinvest profits into staff training, facility upgrades, and technology enhancements while mitigating personal financial risk. This structure is foundational to our long-term strategy which aims to amplify our market presence and ensure that each customer's experience is met with excellence.

The long-term potential of MotorCraft Auto Repair Shop shines bright. The auto repair market is robust and resistant to economic fluctuations—cars will always need maintenance and repair, regardless of economic tides. With an increasing number of vehicles on the road, longer vehicle lifespans, and the growing complexity of automotive systems, demand for our services is poised for steady growth. As we look ahead, MotorCraft aims to become the leading auto service provider in the region through diversification of services, strategic partnerships, and a relentless pursuit of innovation.

MotorCraft's roadmap for the future involves expanding our footprint within the community, exploring eco-friendly repair options to appeal to a growing market of environmentally conscious consumers, and potentially franchising our successful business model. We understand that the organization's heart lies within the mastery of our trade and the bond with our customers, and we plan to nurture this core as we grow.

At MotorCraft Auto Repair Shop, every decision we make and every strategy we implement is done with the long-term vision in mind: to create a legacy of excellence and reliability in the auto repair industry that stands the test of time. With a solid business history, an unwavering mission, the right legal structure, and a clear view of our potential, we stand confident in the continued success and growth of our business.

The automotive repair industry is currently experiencing significant shifts due to advances in vehicle technology, evolving consumer expectations, and an increased focus on sustainability practices. With an estimated value of over $800 billion globally and a compound annual growth rate (CAGR) of around 2% to 3%, the auto repair sector is integral to the maintenance of the world's growing automotive fleet, characterized by a mix of aging vehicles requiring extensive service and newer, more complex models that demand specialized technical expertise.

The target market for MotorCraft Auto Repair Shop encompasses a diverse demographic of vehicle owners within the Motorville region and its environs, which can be broken down into several key segments. Firstly, individual car owners representing various age groups, lifestyles, and socio-economic backgrounds form the bedrock of our customer base. This segment is growing steadily as car ownership increases and the average lifespan of vehicles extends due to better manufacturing standards. The second segment includes small businesses and organizations with vehicle fleets such as delivery companies, service providers, and governmental agencies, offering substantial repeat business opportunities. Overall, the population growth rate in Motorville is outpacing national averages, indicating rising demand for auto repair services.

Customers in our target market seek high-quality, reliable repair services that can be delivered in a timely fashion. They demand transparency in pricing, warranties that provide peace of mind, and personalized customer service that treats them as valued patrons rather than transactional clients. Equally important are convenient service hours, a modern and comfortable waiting area, and the availability of courtesy cars or shuttle services to minimize the disruption caused by vehicle downtime.

As for market trends, we see growth in consumer preference for service providers that can deliver comprehensive care, from routine maintenance to sophisticated electronic diagnostics and green disposal of waste and parts. Also, there is an increased propensity among millennials and Gen Z vehicle owners to opt for auto repair shops that demonstrate environmental responsibility and a digital presence, ranging from online booking to active social media interaction.

Competitor analysis reveals key players in the field, such as SpeedyFix Auto Center, Precision Auto Garage, and TopGear Car Services. SpeedyFix has carved out a significant market share due to its rapid service and large workforce; however, their rapid turnaround can sometimes compromise the personalized touch that is MotorCraft’s hallmark. Precision Auto Garage boasts meticulous workmanship and has established a loyal customer base through its focus on precision and high-end repairs, but they are positioned at a higher price point, which can deter cost-sensitive customers. TopGear Car Services is known for its tech-savvy approach, but struggles with customer service consistency and longer service times. MotorCraft Auto Repair Shop finds synergy in these attributes – we offer rapid and personalized services at competitive prices, backed by a robust technological infrastructure and a commitment to customer satisfaction.

Potential barriers to entry in the auto repair market include the high initial capital investment for state-of-the-art diagnostic equipment and tools, skilled workforce acquisition and training costs, and the challenge of establishing a strong reputation in the face of established competitors. Additionally, ever-evolving automotive technology requires continuous investment in training and equipment updates to maintain service capabilities for newer vehicle models. Ensuring compliance with environmental and safety regulations is also essential, creating another layer of operational complexity for new entrants. Despite these barriers, MotorCraft Auto Repair Shop has successfully navigated these challenges to establish itself as a trusted name in auto repair services in the region.

sample business plan for auto repair shop pdfs

Sample business plan for auto repair shop pdf

Organizational structure and management.

MotorCraft Auto Repair Shop operates with an organizational structure designed to maximize efficiency, foster communication, and ensure accountability at all levels. The hierarchy is fairly flat, with our Owner & Master Mechanic, John Smith, at the apex, followed by departmental managers and followed by the technical and administrative staff.

John Smith leads the organization with a hands-on approach, primarily focusing on strategic direction, financial management, and fostering relationships with key partners and suppliers. Under John's leadership, the Service Manager, Rachel Moore, oversees daily operations, ensuring customer satisfaction and efficient workflow. The Lead Technician, Miguel Rodriguez, manages the technical team, focusing on quality control and technical training. Emily Johnson, as the Parts Manager, oversees inventory management and parts procurement ensuring parts availability and cost-effectiveness.

The management team's backgrounds reflect a blend of technical expertise and business management acumen. John Smith brings two decades of experience and an ASE Certification to the shop, coupled with an entrepreneurial spirit. Rachel Moore adds a degree in Business Management and extensive customer service experience, underpinned by ASE certification. Miguel Rodriguez contributes expert knowledge with 15 years of practical experience in diverse automotive systems. Emily Johnson rounds out the team with in-depth expertise in automotive parts and supply chain logistics.

Currently, MotorCraft employs a robust team of 5 certified mechanics, including two specialists in engine and transmission, two general repair technicians, and one specialist in diagnostics and electrical work. Our future staffing needs are anticipated to grow in line with our expansion plans; we're projecting the addition of 3 more technicians and 2 administrative staff members to handle increased customer demand and back-office operations over the next two years.

We maintain a strong set of human resource policies that emphasize equal opportunity, a safe and respectful work environment, ongoing professional development, and performance-based incentives. We conduct regular performance reviews and offer competitive compensation packages, which include health benefits and retirement plans. Employees are also encouraged to participate in advanced training courses, with the company often subsidizing these efforts as part of our commitment to professional growth and maintaining cutting-edge service capabilities.

Externally, MotorCraft utilizes a range of advisors and consultants to ensure we remain strategic and compliant in our operations. We retain a CPA for financial advising and tax preparation, an attorney specializing in small business law to ensure compliance and legal soundness, and we frequently consult with an automotive business consultant for insights on market trends and operational improvement.

Collaboration with external workforce development programs, such as local technical schools, allows us to scout emerging talent and offer internships that often lead to full-time positions. With a framework designed for adaptability and a team aligned towards a singular mission, MotorCraft Auto Repair Shop is poised to navigate the dynamic automotive repair landscape, prioritizing ethical practices and excellence in service delivery.

auto repair business plan sample

MotorCraft Auto Repair Shop offers an extensive portfolio of auto repair and maintenance services catered to a wide range of vehicles, including standard automobiles, trucks, and small business vehicle fleets. Our core offerings encapsulate comprehensive vehicle care, from basic services such as oil changes, tire rotations, and brake pad replacements, to complex diagnostics, electrical system repairs, and HVAC services.

Each service provided by MotorCraft is carried out by ASE-certified technicians using state-of-the-art equipment, ensuring the utmost quality and reliability. Our full-service auto repairs are known for using industry-leading techniques and the latest technology to diagnose and repair various automotive issues. Alignment with modern vehicle complexities and a commitment to environmental friendly practices, like recycling automotive fluids and using energy-efficient components, are ingrained in our operations.

The unique selling points that set MotorCraft apart from competitors include an unparalleled customer service experience and a guarantee on all repairs. Customers benefit from transparent pricing, a real-time update system that keeps them informed about their vehicle's status, and a prioritized approach that minimizes the time their vehicle is off the road.

As for the development stage of our products and services, MotorCraft maintains a practice of continuous improvement. Currently, we’re integrating a new digital management system that enhances the efficiency of our service scheduling, parts inventory, and customer communication. Future plans include the adoption of advanced diagnostics for electric and hybrid vehicles, a mobile repair service for minor issues and emergencies, and the establishment of an auto-care education program for customers.

Intellectual property within the auto repair industry primarily revolves around trade secrets rather than patents. While MotorCraft does not hold any patents, our internal repair protocols and custom diagnostic software stand as proprietary assets providing competitive advantages. Our trademark efforts are ongoing, with the objective to protect the MotorCraft brand name and logo, reinforcing our market identity.

The production process at MotorCraft is thoroughly streamlined to ensure fast and effective service. It begins with a detailed assessment of the vehicle's condition followed by an electronic diagnostic test. After discussing the findings with the customer and gaining their approval for the required services, our technicians proceed with the repairs using quality parts and tools. Post-repair, all vehicles undergo a strict quality control check to ensure they meet our high standards before being returned to the customer.

Our supplier relationships are a key component of our operation. MotorCraft partners with reputable auto parts suppliers who share our dedication to quality. These suppliers are carefully vetted to ensure they can provide the OE-spec or OEM parts that we demand. We maintain strategic alliances to ensure parts availability, favorable pricing, and quick delivery times, thus allowing us to keep service duration to a minimum.

In summary, the products and services at MotorCraft Auto Repair Shop not only meet the standard demands of auto repair but also offer added value that resonates with customers looking for a provider they can trust. Continuous modernization of our service line-up and a steadfast commitment to customer satisfaction ensure we remain a preferred choice in the auto repair industry.

MotorCraft Auto Repair Shop's marketing strategy is anchored by a multi-channel approach that leverages both digital and traditional media to capture a broad customer base while emphasizing high-intent local prospects. Our approach includes a robust local SEO strategy ensuring that we appear prominently in search results for auto repair services within our locale. Our website serves as a central hub for customer engagement, featuring service information, pricing, and appointment scheduling capabilities, enriched through regular content updates, including blog posts on car maintenance tips and industry trends.

Our social media strategy includes platforms like Facebook, Instagram, and Twitter where we will share customer testimonials, before-and-after service visuals, and educational content about vehicle upkeep. This interactive online presence aims to engage community members and foster word-of-mouth referrals.

We plan to supplement our online efforts with offline marketing tactics such as direct mail campaigns, participation in local community events, and partnerships with local businesses. Targeted promotions, discounts for first-time customers, and referral incentives will be key tactics to drive new customer acquisitions.

The sales strategy centers on building an efficient sales process managed by our Service Manager, who will oversee our customer service representatives and the training of all front-line staff. Our sales tactics revolve around up-selling and cross-selling services during customer interactions, such as highlighting the value of our preventive maintenance packages while booking repairs. Regular training ensures our team stays knowledgeable about the latest services and promotions, enabling them to communicate effectively with customers.

Our pricing strategy is designed to remain competitive with other regional repair shops while reflecting the value and quality of our services. We'll offer tiered pricing to accommodate a range of customer needs from basic to comprehensive service packages. Our pricing will be transparent, with no hidden fees, displayed clearly both online and within our shop to promote trust and ease of customer decision-making.

For distribution, while our primary channel is the physical auto repair shop, we are also considering a pick-up and drop-off service to increase convenience for customers. This will expand our footprint without the need for additional brick-and-mortar expansion.

Advertising plans involve a mix of paid and organic methods. Pay-per-click advertising will target individuals searching for auto repair services in our area, and local radio spots will communicate promotions and shop news. We will also invest in outdoor advertising like billboards in high-visibility areas. Additionally, we plan to establish a strong public relations strategy, which will include press releases to announce milestones and community involvement initiatives.

Our customer service policies are a cornerstone of our marketing and sales strategy. We maintain a customer-centric approach where feedback is not only encouraged but systematically collected post-service through surveys. A dedicated complaint resolution system ensures swift and fair handling of any customer dissatisfaction. We also plan to implement a loyalty program, rewarding repeat business with discounts and special offers.

In conclusion, MotorCraft Auto Repair Shop's marketing and sales strategy is a comprehensive plan targeting various customer touchpoints and oriented towards building long-term customer relationships. We strive to employ a mix of innovative digital tactics along with tried-and-true traditional marketing to achieve sustainable growth and a solid customer base.

marketing plan for auto repair shop pdf

Marketing plan for auto repair shop pdf

MotorCraft Auto Repair Shop's operations plan is fundamentally designed to ensure efficient and high-quality service delivery, with emphasis on customer satisfaction. To achieve this, our operational workflow encompasses structured daily activities, clearly defined processes, and vigilant quality control measures.

The daily operations commence with the opening of our service center at 8 AM, when our team of certified technicians and administrative staff begin their day. The operational workflow includes receiving vehicles, performing diagnostics and repairs, ordering parts, and communicating with customers. Appointments are pre-scheduled using our online system, which efficiently manages the allocation of tasks and resources. Walk-ins are accommodated with a systematic approach aimed at maintaining the workflow of already scheduled services. The day concludes with the closure of the shop at 6 PM, after which the staff perform a clean-up of the work areas and equipment checks to ensure readiness for the following day.

Our service delivery process starts with a thorough inspection and consultation to understand the customer's concerns and vehicle’s condition. Detailed estimates are then provided, and upon customer approval, our team undertakes the necessary repairs or maintenance using a checklist system to ensure completeness and accuracy. Technicians are equipped with tablets that detail the work order and provide access to service manuals and technical bulletins. At the completion of the service, vehicles undergo a quality control audit by our Lead Technician to certify the work meets MotorCraft's high standards.

Quality control at MotorCraft is paramount. It is interwoven with every facet of the service process. Our quality measures include regular calibration of diagnostic equipment, ongoing training for technicians on the latest automotive repair techniques, and strict adherence to manufacturer's guidelines and industry best practices. Each completed job is reviewed against a comprehensive checklist, and a final road test is conducted to ensure the repair meets performance expectations.

Inventory management is maintained via a computerized system that tracks parts usage and automatically alerts the Parts Manager when supplies are low. This system ensures critical inventory is always in stock, reducing vehicle downtime due to parts unavailability. We maintain a just-in-time inventory system, striking a balance between having necessary parts on hand and minimizing excess stock.

Supply chain management is strategic, relying on reputable suppliers with whom we have established long-term relationships. This ensures a steady supply of high-quality parts, often with negotiated volume discounts. MotorCraft's Parts Manager regularly reviews supplier performance, including delivery times, cost, and quality, to optimize our supply chain. We maintain contingency plans, with secondary suppliers in place to avoid service interruptions.

Our facilities and equipment needs are rigorously assessed and updated. MotorCraft operates in a well-maintained, modern garage equipped with multiple service bays to handle an array of vehicles simultaneously. We invest in top-tier equipment, including advanced diagnostics tools, lifts, and specialized repair instruments, which are serviced regularly to keep them in optimal condition. The facility is designed for efficiency, housing a well-organized inventory area, dedicated spaces for various repair tasks, and comfortable customer waiting areas with transparent views into the service bays.

In summary, MotorCraft Auto Repair Shop's operations plan encapsulates the seamless integration of high-quality service delivery, efficient workflows, and stringent quality controls. Our meticulous attention to inventory and supply chain management, coupled with our modern facility and cutting-edge equipment, underpin our commitment to operational excellence and customer satisfaction.

The Financial Projections section of the MotorCraft Auto Repair Shop business plan provides insights into the company's expected financial performance over the next three to five years. Based on market analysis, experienced management, and a sound operational strategy, the forecasted figures are provided with a conservative approach that reasons adjustments for potential market fluctuations and unexpected business impacts.

Sales Forecast: Year 1 anticipates revenues of $500,000, considering our conservative marketing approach and the time needed to establish our brand in the market. With growth strategies and customer satisfaction driving referrals, Year 2 is projected to see a 20% increase in sales to $600,000. Year 3 aims for a 25% increase to $750,000 as brand presence strengthens, and services expand. In Year 4, the projection is $900,000, a 20% increase, assuming maturing market share. Year 5 expects to break the $1 million revenue mark, reflecting the solidification of MotorCraft's market position.

Profit and Loss Projection: The first-year net profit margin is projected at 10% after accounting for direct costs of sales, including parts and labor, and fixed operating expenses like rent, utilities, and salaries. As efficiencies improve and the customer base grows, we expect Year 2 profits to increase to 13%, with a sustained uptick leading us to a 16% net profit margin by Year 5, due to reduced per-unit costs and increased pricing flexibility.

Cash Flow Projection: Cash flow is the lifeblood of our auto repair shop. Initial operations are supported by capital investments and business loans, with Year 1 expected to close with positive net cash flow after financing activities. Subsequent years should demonstrate improved net cash flow from operations due to higher revenue and better control of cash management, with positive end-of-year balances allowing for repayment of debt and potential reinvestment into the business.

Balance Sheet Projection: MotorCraft’s balance sheet will reflect gradual asset accumulation as reinvestments in equipment and facilities take place. Liabilities, primarily comprising the initial business loan, are scheduled for a structured paydown. Owner’s equity is expected to grow year over year, reflecting the ongoing profitability and fiscal health of the company.

Break-even Analysis: A break-even analysis shows that MotorCraft must generate approximately $300,000 in annual sales to cover fixed and variable costs. This translates to servicing an average of 750 vehicles a year, assuming an average transaction value of $400, a conservative estimate given the local market rates for repair services. This goal is achievable within the first year of operations based on our market assessment.

Financial Assumptions and Considerations: The financial projections are premised upon several critical assumptions. We anticipate a steady growth rate in our customer acquisition due to local demand and successful marketing initiatives. The pricing of services is assumed to slightly increase year over year due to inflation and increased labor costs. The projections also assume a stable supply chain without significant price volatility for parts and materials. Policies will be in place to manage accounts receivable efficiently, maintaining average collection days at 30 days or less to sustain good cash flow.

In conclusion, MotorCraft Auto Repair Shop’s financial projections demonstrate a solid business model capable of achieving sustainable profitability and growth within a competitive market. These projections are founded on a mix of practical experience, industry standards, and conservative financial practices, which will be revisited and adjusted annually to reflect actual operational results and market conditions.

auto repair shop financial plan

Auto repair shop financial plan

Successful operation of MotorCraft Auto Repair Shop hinges on accurately identifying potential risks and deploying effective strategies to mitigate and manage them. We have conducted a comprehensive risk analysis covering market-related, operational, financial, and legal aspects, and have established both mitigation strategies and contingency plans to address potential issues.

Identification of Potential Risks: Market risks include increased competition, changes in consumer behavior, and economic downturns that could reduce demand for auto repair services. Operationally, risks encompass technician recruitment and retention challenges, equipment failures, and supply chain disruptions that may prevent timely service delivery. Financial risks consist of cash flow problems, escalating costs of parts and materials, or unexpected expenses. From a legal standpoint, liability for workplace accidents or non-compliance with regulations presents a significant risk.

Risk Mitigation Strategies: To counter market risks, we plan to differentiate MotorCraft with high-quality, reliable service and a strong marketing campaign highlighting our unique selling propositions. We will closely monitor market trends to adapt our services to changing consumer needs and economic conditions.

Operationally, we aim to maintain a well-trained staff and a strong company culture to attract and retain top talent. Regular maintenance schedules and investing in high-quality, durable equipment will reduce the likelihood of operational breakdowns. Strategic relationships with multiple suppliers and maintaining critical inventory will alleviate supply chain risks.

Financially, we will implement strict budgeting and prudent financial management to protect our cash flow. Regular cost reviews will help us manage and anticipate any significant changes in part costs. Diversification of revenue streams, through fleet servicing contracts and tiered pricing strategies, will protect against fluctuations in individual consumer demand.

Contingency Plans: In the event of acute market contraction, MotorCraft will deploy an aggressive marketing plan and special promotions to retain market share. Should we encounter key staff turnover, our contingency plan includes cross-training existing employees and maintaining a network with local technical schools for quick talent sourcing.

If faced with a significant equipment breakdown, we have identified local equipment rental options to prevent service interruptions. Should a supply chain interruption occur, our contingency inventory and alternative supplier arrangements will maintain operational continuity.

If a financial cash crunch becomes evident, MotorCraft will prioritize fund allocation toward the most revenue-generating services and seek flexible payment terms with suppliers if needed. Lastly, establishing a business line of credit can provide an emergency buffer for unforeseen expenses.

Insurance and Legal Considerations: Insurance coverage is a critical component of our risk management strategy. MotorCraft maintains comprehensive general liability, property, and workers' compensation insurance policies to mitigate the financial impact of claims or accidents. For added protection, we also carry business interruption insurance to cover potential loss of income and extra expenses from unexpected events that halt our operations.

Legally, we ensure compliance with all local, state, and federal regulations through regular audits and consultations with legal counsel. Environmental regulations are of particular concern in our industry, so we follow best practices for hazardous waste disposal and emissions. We also stay current with updates to labor laws to minimize the risk of employment disputes.

In essence, our risk analysis underscores a commitment to proactive and responsive management practices. Through careful planning, comprehensive insurance policies, and an agile approach to business operations, MotorCraft Auto Repair Shop is well-positioned to address risks and adapt to challenges that may arise.

business plan for existing auto repair shop

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Car Repair Shop Business Plan Template & Guidebook

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


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

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

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

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

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

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

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

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

Image of Zenbusiness business formation

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

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

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

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

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

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

Form an LLC in your state!

business plan for existing auto repair shop

4. Write Your Operational Plan.

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

In it, you should list:

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

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

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

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

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

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

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

  • Zoning permits.
  • Occupational permits. Environmental permits.

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

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

This section will cover all of the following:

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

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

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

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

Startup Costs

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

Running & Operating Costs

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

Marketing & Sales Expenses

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

7. Financial Plan & Projections

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

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

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

business plan for existing auto repair shop

Frequently Asked Questions About Car Repair Shop Business Plans:

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

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

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

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

Can you write a car repair shop business plan yourself?

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

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

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

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

Table of Contents

Things You Should Know BEFORE Starting an Auto Repair Business

If you’re thinking about starting your own auto repair shop, there are a few things you need to know first. Many new business owners make common mistakes such as not knowing labor rates or not using auto detailing software . These are easily avoidable with a bit of preparation. 

I asked a lot of different auto repair shop owners about what they have learned after starting their business. Some of the answers surprised me, and I’m guessing you’ll be surprised as well! Here’s a summary of what they had to say. 

Know Why You Want To Start Your Own Shop

This is perhaps one of the most important questions if you are looking to start your own auto repair shop – why exactly do you want to run your own auto repair shop? Is it because you want to make more money? Or maybe you want to be your own boss and not answer to anybody? If these are among your reasons to start your own business, you might want to revisit the idea of starting your shop.

When you own your own business, you have less time, less flexibility, less money and less chance to mess up. Also, instead of answering to one boss, you are answerable to all of your employees. The feds, the state, even your customers are like your boss. 

It is a good idea to spend some time researching the WHY before the HOW. Because trust me, if you are into this thinking everything will be easier than working for someone else… things might not turn out so well.

As a technician, you focus on your own tasks, not the entire business. It’s just one piece of the entire puzzle. However, as a boss, you need to look at the big picture. You won’t be turning wrenches anymore. Instead, you’ll be busy running your own business. 

If you’re a technician looking to start your own repair shop, keep in mind that you will no longer be a technician. Instead, you will probably spend most of your time managing the operations in your shop. So, if you love repairing cars, running an auto repair shop might not be the best idea.

Don’t Get Stuck In a Long Lease

Keeping your overheads low is Business 101. Take your time and look for a decent space for cheap. For example, if you’re in Vegas, you will typically pay $1.25/sq. ft for a building space and anywhere from $0.10-$0.15/sq. ft for yard space. To put this into perspective, as of writing this, an 8,000 sq ft space will set you back $12,000 every month. Often, both space costs are added into the base rent so you’ll have to go out and look for options. 

If you find a suitable space, make sure the lease is, at most, 1 to 2 years. A longer lease is cheaper but it will cause problems in the future. If your business grows and you start getting more customers, you might not be able to upgrade to a bigger space because you’re stuck in a long lease.

business plan for existing auto repair shop

Also, a very important thing to note is that always add the clause “ I’ll finish my lease once I get my automotive repair license approved.” In case the city delays or rejects your license, you don’t want to get stuck in a lease. 

Bring the Right Tools for the Job

Now is a good time to mention that you should ALWAYS use the right tools for the right job. And I’m not talking about just your drawer full of torque wrenches. Remember when I said you’ll eventually get busy managing your shop instead of fixing cars? Once your business starts gaining traction, paperwork and spreadsheets won’t cut it. 

Before you get buried under a myriad of tasks and a mountain of paperwork, you might look at what other auto repair shops in the USA are doing to combat this problem. Among others, a very simple solution is using auto detailing software. 

But how do you know which software is best for your business? It’s pretty simple – go for a solution that covers all aspects of running an auto detailing shop; a complete 360-degrees solution. Read here to learn more about how auto detailing software can MASSIVELY benefit your repair business .

Moving on to other tools, here are a few must-have tools to start up your auto repair shop. Many shop owners make the mistake of buying a very fancy toolbox as soon as they start their business. I get it, a shiny new toolbox with an assortment of tools is very tempting, However, you will be better off investing in a few other tools first such as hydraulic lifts, welders, compressors and transmission jacks, to name a few. So in the bigger picture, using your money to cover all bases will be much better than having a fancy toolbox sitting on your shelf.

Stay on Top of Your Accounting Details

When you’re running your own auto repair or detailing shop, it’s important to keep track of all the accounting details. This will help you stay organized and make sure that your business is profitable. If you track your accounting details properly, you can avoid fraudulent activities or anything that might harm your business.

Here are a few reasons why you should know how to keep track of all accounting details when running your repair business:

1. It’s essential to have a good understanding of your financials in order to make sound business decisions.

2. Detailed accounting records will help you track your expenses and revenue, so you can see where your business is making money and where it could stand to improve.

3. Keeping good records will help you stay compliant with tax laws and regulations.

4. A well-run accounting system will help you make more informed decisions about your business’s future.

As a business owner, you should know your numbers. Where is all the money is going? How much are you earning? As a technician, you don’t really care about how much a brake cleaner costs. Or how many alignments do you need to do to pay off that $6,000 alignment rack? However, as a business owner, you should be on the top of your numbers game. 

67% of small businesses fail due to a lack of a clear plan or poor management of resources. You don’t want to be one of them.

Pro Tip: An auto detailing software can easily help you manage your accounting details, usually with Quickbooks integration!

Know Your Laws. Especially Tax and Zoning Laws.

One of the most important things you need to know when starting your own auto repair shop is tax laws. You’ll need to know what taxes you’re liable for and how to file your returns. You’ll also need to keep track of your expenses and income so you can stay in compliance with the IRS. Ignorance of the law is not an excuse, so make sure you do your research and understand what’s expected of you.

Always stay up-to-date on current tax laws that affect the automotive industry. Ignorance of the law can lead to costly fines and penalties down the road, so it’s better to be safe than sorry. By knowing what you need to do in order to stay compliant, you can avoid any potential headaches down the road. You can read more about laws related to auto repair shops here .

Another thing to keep in mind is zoning laws. Make sure you are aware of any restrictions or regulations that may affect your business before starting it up. You don’t want to invest time and money into a business only to find out that you can’t operate it due to zoning restrictions. 

For example, if you live in a residential neighborhood, you may not be able to offer repairs that require loud noises or large amounts of workspace.

Before finding the perfect location for an auto repair shop, determine who your customers are going to be. Is there a concentration of car owners in one part of town? If so, go where the people are—not necessarily where the rent is cheap or available space is large enough for a garage.

The Final Words

The auto repair industry is a lucrative one. It is a whopping $880 billion industry. However, money is only a small part of the entire equation. As a business owner, you should learn how to crunch your numbers, the legalities of how you run your shop, and use the right tools such as auto detailing software.

So, are you going to start your own repair business? If you are already in the auto repair business, let us know if you have more tips. Good luck!

About the Author: Torque360

business plan for existing auto repair shop

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business plan for existing auto repair shop


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  1. How to Write an Auto Repair Shop Business Plan + PDF| Bplans

    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.

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

    An organisational chart example for an auto repair shop. 6. Financial Plan. The financial plan is perhaps, with the executive summary, the most important section of any business plan. Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you're looking to raise equity from ...

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

    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.

  4. Auto Repair Shop Business Plan: Guide & Template (2024)

    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 ...

  5. Auto Repair Business Plan (2024)

    12/1/2022 - Begin build-out of the shop and purchase equipment and supplies. 12/15/2022 - Begin networking at industry events and implement the marketing plan. 1/15/2023 - Finalize contracts for auto repair technicians. 2/15/2023 - Tim's Timely Auto Repair officially opens for business.

  6. Auto Repair Business Plan PDF Example

    Our auto repair business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the garage's operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary: Offers an overview of your auto repair business's concept, market analysis ...

  7. Auto Repair Business Plan Template [Updated 2024]

    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 ...

  8. Auto Repair Shop Business Plan Template (Free)

    For an auto repair shop, particular emphasis should be placed on the services you plan to provide. Detail your service offerings - general maintenance, specialized repairs, diagnostics, tire services - and explain how they cater to the demands and expectations of your target customers. The operational plan is equally important.

  9. How to Start a Mechanic Shop: A Complete Guide

    How to start an Auto Repair Shop (9 easy steps) Conduct market research. Write a business plan. Select a business location. Determine your service offerings. Business registration and legal paperwork. Get a business insurance. Purchase necessary equipment. Hire employees.

  10. Auto Repair Shop Business Plan Template

    A: A comprehensive business plan for an auto repair shop should include vital elements such as market analysis, your shop's business model, financial projections, marketing and outreach strategies, and operational plans tailored to automotive repair needs. These components are essential for understanding the auto repair market, managing ...

  11. Auto Repair Shop Business Plan [Sample Template]

    Below is the sales projection for Jack & James Auto Garage®, LLC. It is based on the location of our business and of course the wide range of auto repair, servicing and maintenance services and target market; First Year-: $250,000. Second Year-: $750,000.

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

    Establishing the financial forecast is an integral step in the development of your auto repair shop's business plan. It is composed of 4 main tables, highlighting different financial aspects of the company: Projected profit and loss statement. Projected balance sheet. Projected cash flow statement.

  13. How to Develop an Auto Repair Shop Business Plan

    4. Describe Your Products and Services. In the products and services section of your auto repair shop business plan, it's important to focus on your customers' perspective and needs. The overall goal of the products and services section is to prove that your shop will fill a market need and remain viable.

  14. Auto repair shop business plan template + PDF

    For streamlined customization, we provide an "sample business plan for auto repair shop pdf" for download. This document is vital for entrepreneurs committed to developing a robust and effective strategy for starting or growing their auto repair shop. The 'AI Business Plan Generator' serves as a comprehensive guide, offering profound insights ...

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

    1. Describe the Purpose of Your Car Repair Shop Business. The first step to writing your business plan is to describe the purpose of your car repair shop business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers ...

  16. How to start an auto repair shop and propel it to success

    Read our top tips for taking over an auto repair shop. 2. Carrying out market research for an auto repair shop. Market research is an essential step on the road to starting an auto repair shop. It enables you to assess the potential commercial success of your venture before even launching it - reducing your risk of failure.

  17. Things You Should Know BEFORE Starting an Auto Repair Business

    Especially Tax and Zoning Laws. One of the most important things you need to know when starting your own auto repair shop is tax laws. You'll need to know what taxes you're liable for and how to file your returns. You'll also need to keep track of your expenses and income so you can stay in compliance with the IRS.

  18. The key steps to taking over an auto repair shop

    Ensure that the premises and equipment are up to scratch to take over your auto repair shop. When taking over an auto repair shop, much of its existing equipment is included in the sale price. Before handing over the funds, however, you need to check that it's all still in good condition. The world of car repair is rapidly changing and ...