auto workshop business plan pdf

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Auto Repair Shop Business Plan

Start your own auto repair shop business plan

F and R Auto Repair

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

F & R Auto (F & R) is the desire of John Ford and Michael Ronald who together have 30 years experience as auto mechanics. Both have a dream of starting up their own company and offering better service to their clients than competitors.

1.1 Objectives

The objectives over the next three years for F & R Auto Repair are the following:

• Sales revenues increase steadily through year three.
• Institute a program of superior customer service through rigorous evaluation of service experience.
• Hire three more mechanics.

1.2 Keys to Success

In the auto repair industry  a company builds its client base one customer at a time and mostly through word of mouth marketing. With this in mind, the keys to success for F & R Auto Repair are:

• High-quality work.
• Constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress.
• Knowledgeable mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.

1.3 Mission

The mission of F & R Auto Repair is to provide high quality, convenient and comprehensive auto repair at low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The company will be a partnership with John Ford and Michael Ronald each owning 50% of the company. The company will be a limited liability company registered in the state of Washington. The firm will have facilities on 1312 1st Ave NW in Ballard, a neighborhood of Seattle. The facilities will contain a two-bay garage, office space and storage space for tools, parts, etc.

The company is seeking a  loan in order to finance the start of operations for the company. Each of the owners will be putting up some of their own capital as equity.

2.1 Start-up Summary

The data obtained for the start-up comes from research done in the Seattle area with other small mechanic shops who have started their own business. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items.

Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.

F & R Auto offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business to customer ties.

F & R Auto will hire trained and certified mechanics who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.

3.1 Service Description

F & R Auto provides a wide range of auto repair services. These include:

• Scheduled maintenance.
• Wheel alignments, tires and rims.
• Brake repair.
• Comprehensive engine repair.
• Transmission.

Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.

3.2 Competitive Comparison

The auto repair industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.

 Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies. These companies are more consolidated that the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to F & R’s industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible.

 In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.

 The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

3.3 Technology

The technological revolution in computers has enhanced our abilities to diagnose and repair our clients vehicles. F &R will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.

3.4 Future Services

The company does not have any plans to create further services at this time.

Market Analysis Summary how to do a market analysis for your business plan.">

4.1 Market Segmentation

The following table and chart show the market analysis for F & R Auto Repair.

4.2 Service Business Analysis

This section is covered in the Competitive Comparison section of the Plan.

4.2.1 Competition and Buying Patterns

While many customers looking to purchase automotive repair services are concerned with price, the primary concern is with building a relationship of trust between themselves and their service provider. A large number of people within the country have experienced or heard of bad service encounters within this market. As a person’s car is usually connected in one way or another with that individual’s livelihood, a dependable automobile is crucial. Therefore, many clients are willing to pay a little more for a mechanic they feel does a quality job and understands their needs.

An automotive repair company that can anticipate, meet, and even exceed customer’s needs can build a defensible position within the market place and acquire market share at the expense of other rivals.

4.2.2 Main Competitors

As stated before, the automotive repair market is very fragmented. The chief competitors in this industry for F & R are the high quality automobile dealerships and licensed service reps. This includes Toyota, Ford, Chrysler, and other major brand names. Within F & R’s immediate service vicinity, There is Rodham’s Toyota, Lester Ford and Woodmark’s Chrysler dealerships. Each of these direct competitors have a service facility. These competitors dominate the market place, have the largest market share, and have advantages such as specially trained personnel, access to lower priced parts and tools, and deep pockets. The other competitors are mostly “mom & pop” style outfits that make up the majority of the competition. For F & R this includes Dave’s Auto Repair, The Taller Mechanico, Kirkland Auto and Body, and Vancouver Auto. The advantages of these firms is that they can seek a low cost leadership strategy due to lower personnel costs. However, they have a much more fluid customer base and higher customer turnover.

F & R will seek to compete initially in the low cost strategy. At the same time, it will seek to provide a higher level of customer satisfaction by having more rigorous quality control and seeking ways to enhance the entire service experience (not just repairing a person’s car). In this way it will lock in a loyal customer base who value the client-service provider relationship.

4.2.3 Business Participants

The auto repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. It is very difficult to create a differentiation, or niche, strategy in this environment and until F & R is able to establish a reputation for quality, on time, superior customer service, the company will seek a low cost role. Once it has achieved what management believes to be a sufficient reputation for its services along with a profitable customer base, the company plans to leverage this advantage into a differentiation strategy that will be able to charge more for its services.

Strategy and Implementation Summary

The following section outlines the company’s strategic focus in growing the business.

5.1 Competitive Edge

F & R Auto’s competitive edge lies in the vision of its partners, who understand better than many of their rivals that a service visit does not just include repairing a client’s car, it includes the entire service experience from the first time a client talks to their mechanic until they decide to stop driving. The long-term profitability of a service firm of this type lies in the repeat customer that finds F & R’s services an excellent experience, DESPITE the fact that they usually have suffered a inconvenient breakdown. The company will seek to examine ALL aspects of the service experience to seek ways to improve its customer satisfaction. In addition, all employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this issue.

5.1.1 Positioning Statement

It is the express purpose of F & R to become the local leader in quality and service experience of all the small (non-dealerships) automotive repair firms within the Seattle area while maintaining a low cost plan. Once a reputation for quality and service experience is created, and an ongoing network of referrals is bringing in new business, the company plans to re-evaluate its strategy and positioning within the market to see if a differentiation strategy is viable. If so, this will allow the company to raise prices and increase profit margins in relation to its rivals. This in turn is expected to leverage long-term growth until F & R can reach a regional scope of operations.

5.2 Marketing Strategy

The company has a modest program of marketing its services that include the following:

• Direct mailers.
• Newspaper ads.
• Yellow pages.
• Referrals through other local businesses.

Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company’s long-term marketing goals are to use local radio and TV ads similar to the Les Schwab Tire Center ads.

The company is also investigating the possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and other promotional ideas.

5.2.1 Promotion Strategy

The principal owners of F & R Auto expect that a significant number of their pre-existing clients (where Ford and Ronald currently work) will desire to switch to F & R Auto to retain the services of their personal mechanics. This will provide a sufficient income until F & R can build up a reputation and see its marketing program take effect.

This promotion strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages. F & R does not desire to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after year five.

5.2.2 Pricing Strategy

F & R Auto exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many automobiles it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, F & R can service automobiles at total capacity without effecting the price.

5.3 Sales Forecast

Since the automotive repair industry is, operationally, a job-shop environment, it is somewhat difficult to estimate sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once an order is made. However, the sales forecast reflect the professional opinion of Mr. Ford in how much sales he will make based on the following assumptions:

• The number of clients Ford and Ronald can attract from their previous companies.
• The effect of planned promotions and word-of-mouth marketing.
• Current prices and costs of doing business.
• The types of automobiles and jobs that will occur in every month.

For the most part, sales for an automobile repair firm are steady year round and reflect little seasonality.

The table and charts below outline the sales forecast.  Three years of annual sales and costs of sales are shown.  Twelve monthly tallies are included in the appendices.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

John Ford began working as an apprentice mechanic in his father’s shop in 1984. Since that time, he has worked for a variety of automotive shops and dealerships and has numerous certificates in automobile repair. During the past two years Mr. Ford has attended Bellevue Community College where he received an Associates degree in business administration in June of 2000.

Michael Ronald attended ITT Technical Institute where he received a certificate in electronics repair in 1980. In 1983 Mr. Ronald went to work for Jim Click Ford Dealership in Tucson AZ, where he worked on automotive electrical and electronic systems. Desiring to expand his skills, Mr. Ronald received a mechanic’s certificate in 1988 and since then has become certified in various automotive fields. In anticipation of F & R’s business needs, Mr. Ronald is taking night classes at Seattle University in marketing.

6.1 Personnel Plan

F & R’s initial staffing will consist of Ford and Ronald, plus Ronald’s wife who will act as a part-time office manager. The company will seek two entry level mechanics to be hired within a few months after the company is operating. Accounting, bookkeeping, and marketing services will be outsourced. The company’s intermediate goal is to have four full time, fully trained mechanics at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.

Financial Plan investor-ready personnel plan .">

The following sections outline the financial plan for F & R Auto Repair.

7.1 Break-even Analysis

The company’s Break-even Analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc.

7.2 Projected Profit and Loss

The following table and chart show the projected profit and loss for F & R Auto Repair.

7.3 Projected Cash Flow

The following table and chart are the projected cash flow figures for F & R.

7.4 Projected Balance Sheet

The following table shows the projected balance sheet.

7.5 Business Ratios

The Business ratios give an overall idea of how profitable and at what risk level F & R Auto will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. As can be seen from the comparison between industry standards and F&R’s own ratios, there is some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size.

Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher SG&A costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however this is due to the fact that the company will be operating with fewer assets than most companies in the first few years until it can build up enough cash to acquire the tools and facilities that are desired and go beyond the “adequate” level.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Auto Repair Business Plan Template & PDF Example

• October 21, 2024

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 (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary

The executive summary is a critical component of your bike shop business plan. It offers a concise yet comprehensive view of your business within the bike retail and service market, including competitive analysis and financial forecasts. This section is crucial for attracting investors and partners, as it highlights your business’s potential and strategic plans.

A two-slide PowerPoint presentation is recommended for this summary. The first slide should detail your business model, covering the range of products and services unique to your bike shop. The second slide should focus on your management team’s qualifications and financial goals, giving a snapshot of anticipated market performance and growth prospects.

Auto Repair Business Plan Executive Summary Example

Business Overview

In the executive summary of an auto repair shop business plan, the business overview section is crucial for detailing the shop’s offerings and operational capabilities. This includes the shop’s location, facility features, range of services, brand specialization, and any additional customer-focused services.

For an auto repair shop, it’s important to emphasize the expertise in specific vehicle brands, the advanced technological equipment available, and the comprehensive nature of services offered, from routine maintenance to complex repairs. The inclusion of customer convenience features, such as loaner vehicles and service guarantees, also plays a significant role in differentiating the shop in the market.

Example: AutoFix Hub, situated in a prime automotive district, operates from a 10,000 sq ft workshop equipped with state-of-the-art diagnostic and repair tools. Specializing in European brands like BMW and Mercedes-Benz, the shop offers a full spectrum of services and stands out with additional customer conveniences like loaner vehicles and a 90-day service guarantee.

Market Overview

The market analysis section should assess the size, growth, trends, and competitive landscape of the auto repair industry. It’s crucial to provide insights into the industry’s dynamics, such as the demand for specialized repair services due to increasing vehicle complexity and the shift of consumer preference towards independent repair shops.

Understanding the competitive environment, including the presence of major chains and local service providers, is vital for identifying the shop’s market position and opportunities for growth.

Example: The US auto repair market, valued at $76.8 billion, is growing steadily. AutoFix Hub is positioned in a market with 281,000 shops, differentiating itself through specialized services for European models. The shop capitalizes on the trend of consumers preferring independent shops for better value, distinguishing itself among 7 key local competitors.

Management Team

In this section, the focus is on the background and expertise of the management team leading the auto repair shop. It’s important to highlight their experience in the automotive industry and their roles within the shop.

The management team’s qualifications are a key aspect of the business’s ability to deliver quality services and manage operations efficiently. This part of the summary should instill confidence in the team’s capabilities to drive business growth and maintain high standards of service.

Example: The CEO, a co-founder of AutoFix Hub, brings over 15 years of industry experience, including management roles at leading auto repair chains. The Lead Mechanic, also a co-founder, possesses extensive expertise in servicing European models, ensuring high-quality repair work and customer satisfaction.

Financial Plan

The financial plan overview provides a snapshot of the auto repair shop’s revenue and profit targets. It outlines the financial goals, including specifics like aiming to reach $7.8 million in annual revenue with a 23% EBITDA margin by 2027.

This section reflects the shop’s financial health and potential for profitability, taking into account market positioning, service offerings, and operational strategies.

Example: AutoFix Hub aims to achieve $7.8 million in yearly revenue with a 23% profit margin by 2027. This financial goal is underpinned by strategic expansion of services, targeting high-value vehicle brands, and leveraging the growing consumer trend towards independent repair shops for specialized services.

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

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

A competitive analysis is not just a tool for gauging the position of your auto repair shop in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your auto repair shop’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Auto Repair Industry

Begin by identifying and mapping out local auto repair shops, dealerships offering repair services, and franchises specializing in car maintenance within your vicinity. Direct competitors include shops offering similar services or catering to similar vehicle types, while indirect competitors might involve dealerships with in-house repair centers or mobile repair services.

Leverage online resources such as Google Maps and review platforms like Yelp and Angie’s List to gather insights into competitor locations, customer feedback, and service ratings. Positive reviews praising the expertise and quick turnaround at “Speedy Auto Care” highlight a strength that your competitor possesses in the market.

Auto Repair Competitors’ Strategies

A comprehensive analysis of competitors’ strategies encompasses various operational dimensions:

• Service Portfolio: Evaluate the spectrum of services offered. For instance, a competitor like “Eco-Green Auto Care” gaining traction by specializing in eco-friendly repairs and using sustainable practices signifies an emerging market trend towards environmentally conscious auto maintenance.
• Technical Expertise: Consider the technical proficiency and specialized services provided. An auto shop like “Performance Motorsport Garage” focusing on high-performance vehicle tuning might cater to a different clientele compared to a shop specializing in general repairs.
• Pricing and Packages: Conduct a detailed comparison of service pricing structures with competitors. Is your shop positioned similarly to “Affordable Auto Fixes” or more aligned with premium services offered at “Elite Car Service Centre”?
• Marketing Strategies: Analyze competitors’ marketing approaches. Are they investing heavily in digital advertising, local sponsorships, or community engagement to bolster brand visibility and customer reach?
• Customer Experience: Evaluate the overall customer journey. Perhaps “Friendly Auto Repairs” excels in customer service by offering conveniences such as online appointment scheduling, shuttle services, or a dedicated customer portal.
• Operational Efficiency: Observe technological advancements or innovative processes adopted by competitors. For example, “Tech-Forward Motors” might utilize AI-powered diagnostics or automated service reminders for enhanced customer engagement and operational efficiency.

What’s Your Auto Repair Shop’s Value Proposition?

Define your shop’s distinctive value proposition . It could be specialized services such as transmission rebuilds, a focus on superior customer service, or offering a comprehensive maintenance package with added value services like complimentary car washes or extended warranties.

Identify market gaps by analyzing customer feedback, industry trends, and unmet needs within the automotive repair sector. For instance, an increasing demand for electric vehicle maintenance might signal an opportunity for your shop to invest in training technicians for EV-specific repairs, thus addressing a niche market segment overlooked by competitors.

Tailor your approach based on location: A shop situated in a suburban area might emphasize personalized services, loyalty programs, and extended warranties to build lasting relationships with local customers. In contrast, an urban location might focus on quick turnaround times and express services to cater to the fast-paced lifestyle of city dwellers.

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.

Marketing Channels

Utilize various marketing channels to communicate your brand and services, engage with potential clients, and drive foot traffic to your shop.

Digital Marketing

• Online Presence: Maintain a professional website that showcases your services, customer testimonials, and informative content about automotive maintenance and care. Optimize your website for local SEO to improve visibility in local search results.
• Social Media: Utilize platforms like Facebook, Instagram, Twitter, and YouTube to showcase your expertise through before-and-after repair images, customer testimonials, and educational content. Engage with your audience by responding promptly to inquiries and comments.
• Email Marketing: Build an email list by offering valuable content or discounts in exchange for sign-ups. Send regular newsletters featuring promotions, DIY car care tips, and updates about new services or events.

Local Advertising

Connect with your local community through targeted advertising efforts:

• Local Publications: Advertise in local newspapers, magazines, or community newsletters to reach a wider audience. Consider sponsoring specific automotive sections or publishing informative articles on car maintenance.
• Community Engagement: Participate in local car shows, street fairs, or dealership events. Offer free vehicle check-ups or workshops on basic car maintenance to showcase your expertise and build rapport with potential customers.
• Collaborations: Partner with car dealerships, rental companies, or local businesses for mutually beneficial promotions or referral programs. Cross-promotions can expand your reach within the local market.

Sales Channels

Optimize sales channels to maximize revenue and enhance customer satisfaction.

In-Shop Sales Techniques

• Service Upgrades: Train your staff to suggest additional services or maintenance checks during customer interactions. For instance, recommending a wheel alignment with a tire change or a fluid flush with an oil change can add value to the customer’s visit.
• Retail Merchandise: Display automotive care products or accessories prominently within your shop. Educate customers on their benefits and relevance to vehicle maintenance.
• Service Packages: Offer bundled services, such as a ‘Seasonal Maintenance Package’ or ‘Pre-Trip Inspection,’ to incentivize customers and simplify their automotive care choices.

Online Sales Integration

Leverage technology for streamlined sales processes:

• Online Appointment Booking: Implement an easy-to-use online booking system on your website and social media platforms. Offer incentives like discounts or priority scheduling for online bookings.
• E-Commerce Integration: Consider selling car care products, accessories, or merchandise online. Offering package deals on services or maintenance kits can attract customers looking for convenience.
• Virtual Consultations: Provide online consultations for basic troubleshooting or pre-service assessments. This personalized approach can lead to tailored service bookings or product recommendations, enhancing the customer experience.

Membership & Loyalty Programs

Encourage customer retention and repeat business:

• Membership Options: Create membership plans offering discounted rates for routine maintenance services or exclusive benefits such as priority scheduling or complimentary check-ups.
• Loyalty Rewards: Implement a digital loyalty program where customers earn points for every service or purchase. These points can be redeemed for discounts on future repairs or merchandise, fostering long-term customer relationships.

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.

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.

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

Related Posts

Junk King Franchise FDD, Profits, Costs & Fees (2024)

• November 14, 2024

Woof Gang Bakery Franchise FDD, Profits, Costs & Fees (2024)

Whole Foods Franchise FDD, Profits, Costs & Fees (2024)

Privacy overview.

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.

Publications

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.

Milestones:

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.