How To Start An Automotive Repair Business by Scott Ludtke
Opening an automotive repair business is probably one of the easiest and most profitable businesses to start, especially if you are a mechanic. Cars and trucks are always going to need service and repairs, thereby making the automotive repair business a very lucrative and wise investment choice. However, there’s a little more to it than simply opening up a small garage and hanging a sign out front.
Like any business, opening a Automotive Repair Shop takes planning, investment, and an effective marketing campaign before it will bear fruition and profit.
Here are some of the essential business and marketing components you will need to implement in order to get a new automotive repair business on its way:
Check the Demographics
You don’t want to open a shop in a geographical area where there are a lot of other automotive shops or an area that is difficult for people to access on the way to work or on the way home after work.
Create a Business Plan
If your considering the idea of purchasing property for your automotive business site, be sure to exercise due diligence in researching the property before you buy it. Check local zoning and ordinances to see if it is permissible to run an automotive repair shop at the location. Finally, the business plan should include financing provisions and plans to pay the money back, if in fact, you do borrow money to purchase the property or get the business started.
Business Components
Nothing can be more important than being organized and prepared for the start of your new automotive repair business. Having the following components in place displays professionalism and the ability to effectively market your new automotive shop.
Local licensing
Licenses may vary based on what state, county and city your automotive repair business is in. One of the best ways to find out this information is to call the local better business bureau or the taxing and licensing authorities in your city for a list of licenses you will need. Some of the common licenses associated with businesses include an occupational license, sales tax license and any licenses for the disposal of hazardous waste associated with your automotive repair shop.
State Registration
Choose which entity you would like the business registered under, such as an LLC, Corporation, Partnership, or Sole Proprietor. You may wish to consult with an attorney or your accountant to choose the option that suits your business best. Once you make that decision, apply for and obtain an employer identification number (EIN).
Liability Insurance Coverage
For the purpose of protecting your automotive repair & service business it is best to obtain a garage keeper’s insurance policy. A garage keeper’s policy is an insurance policy that covers the business should an employee or customer get injured on the job. It also protects the shop in the event a repair causes damage to a person or his vehicle.
Inventory and Logistics
Make sure you have all the needed paperwork, including work orders and invoices. Stock any and all product inventory which you will keep on hand, such as oil, shop rags, fluids, parts and accessories. Be prepared for a lot of customers and the need for supplies. Having extra inventory is always better than running out.
Any mechanics you hire and employ should be A. S. E. Certified. Certification not only makes your service reputable, but ensures that the mechanics are properly skilled and educated for most Automotive Service And Repair tasks.
Advertising and Marketing
Marketing your automotive repair business entails the application of proper advertising techniques and some basic marketing principles. One typical mistake that many start-up businesses make is to spend thousands of dollars on build-outs, improvements, and equipment, but they fail to make an investment on promoting their business via the internet.
Some business owners have the illusion that if they open-up and hang a sign on a busy street their business will prosper. This is far from the truth! They simply sit there and wait for people to show up and most often it never happens because potential customers do not know of the businesses existence. There was not enough consideration taken for advertising and internet marketing.
Advertising
If your business is brand new, holding a grand opening advertisement which offers specials is one effective way of getting the business recognized. It is essential to advertise a grand opening event for at least one month before the actual opening day.
Marketing
Most small and medium size businesses don’t understand the importance of getting their name out there. The internet is probably the most popular and effective means of marketing that is available in today’s world. Recent studies show that more than 85% of all Americans turn to the internet to search for things such as clothes, sales, and local businesses to service their particular needs. As such, attaining a business website should be one of the primary goals in your business marketing campaign.
With a seasoned internet marketing company, your company website can attain free local advertising, inclusion in the major search engine maps, as well as a business page in popular social media venues such as Twitter and Facebook.
You must advertise and market your business. If not your business will either die, or if your lucky any profits will be just enough to pay the bills.
About the Author
As a friend of Bill W., I have come to enjoy the privilege of writing informational articles to help others.
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