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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.

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.

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Auto Repair Shop Business Plan

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Not everyone has the talent and technique to repair and restore cars, and if you have those skills, you might have thought of starting an auto repair business.

After all, most people prefer the autonomy having a business offers. But with autonomy comes responsibility. And to fulfill that you’ll need an auto repair business plan.

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample auto repair shop business plan  created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of  services-related business plans.

Industry Overview

In 2021, 162000 establishments had a combined annual revenue of $115 billion in the US auto repair industry.

The growth has mainly come from the increasing number of cars on the road. Also, the growing mileage consumption has played a huge role.

Opening up a car repair shop requires you to pay for construction costs, labor, and equipment.

As the auto repair business is a profitable one it attracts a lot of competition, and to stay ahead of it you’ll need skills and a proper business plan.

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how do i write a business plan for an auto shop

Things to Consider Before Writing an Auto Repair Business Plan

Select what area of repairs you’ll work on.

Auto repairs shops take up a variety of jobs like repairing and painting car bodies, transforming old vehicles, or doing tire and mechanical repairs.

So, it is necessary to decide what you want to do before getting started. Specialization helps you get more expertise in the area and makes you more reliable for the job to customers.

Pick a suitable location

An accessible location is a must for an auto repair business. Your location would also rely on the niche you’ll be working on. Tire repair services are usually on the road to make them accessible for emergencies.

While transformation services are mostly opened inside the city for easier pickup and drop.

Hire an efficient team

An auto repair business’s success relies heavily on the quality of services you provide. That helps you retain customers and get more. Hence, it is important to have a team that can provide quality services to your customers.

Apart from that, it is also important to have a team with good technical and soft skills to understand your customer’s problems better.

Formulate marketing strategies

Marketing your business is essential to attract customers and building your brand’s identity. Hence, it is important to have a marketing strategy for all the platforms your target audience uses to find repair services.

Chalking out Your Business Plan

A business plan helps you leverage the best of your resources, and get the maximum out of your efforts.

A business plan also comes in handy if you need funding or loans for your business, as investors and banks prefer to see a business plan before they give the money.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample auto repair shop business plan template for you to get a good idea about how a perfect auto repair shop business plan should look like and what details you will need to include in your stunning business plan.

Auto Repair Shop Business Plan Outline

This is the standard auto repair shop business plan outline which will cover all important sections that you should include in your business plan.

  • Keys to Success
  • Mission Statement
  • Vision Statement
  • 3 Year profit forecast
  • Business Structure
  • Startup cost
  • Products and Services
  • Market Trends
  • Target Market
  • Market Segmentation
  • SWOT Analysis
  • Sales Strategy
  • Local Publications
  • Community Events/Organizations
  • Commuter Advertising
  • Customer Loyalty Programs
  • Direct Mail
  • Pricing Strategy
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

The Quickest Way to turn a Business Idea into a Business Plan

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Download a sample auto repair shop business plan

Need help writing your business plan from scratch? Here you go;  download our free auto repair shop business plan pdf  to start.

It’s a modern business plan template specifically designed for your auto repair shop business. Use the example business plan as a guide for writing your own.

After  getting started with Upmetrics , you can copy this sample auto repair shop business plan template into your business plan and modify the required information and download your auto repair shop business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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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 Investopedia.org , 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 Entrepreneur.com , 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. 

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Auto Repair Business Plan Template

  • Written by Dave Lavinsky

Auto Repair Business Plan

Table of Contents

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 an Auto Repair Business Plan

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.

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

Business Plan Template & Guide for Small Businesses

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

auto repair shop business plan

Are you passionate about fixing cars and restoring them to their former glory? If so, you may have been dreaming about setting up your very own car garage for some time. Before fully taking the plunge, however, you'll need a tailor-made business plan.

To guide you through this process, we've written the guide below to offer our top tips for making your auto repair shop business plan a reality.

On the menu:

  • Why do you need a business plan?
  • What type of auto repair shop should I open?
  • What do you need to create your auto repair shop business plan?
  • What is the financial forecast for an auto repair shop?
  • What does the written part of an auto repair shop business plan look like?
  • What tool should I use to write my business plan?
  • Business plan template of an auto repair shop.
  • Three things you should know before writing an auto repair shop business plan

1. Why do you need an auto repair shop business plan?

Did you know that 60% of all new businesses in the UK are likely to cease trading within their first three years? Durham City Incubator believes that a "lack of business planning" is the number one reason for the failure rate being so high.

Writing out an auto repair shop business plan is, therefore, essential for your new business.

An auto repair shop business plan allows you to identify the level of initial financing that is required. It also helps you:

  • Anticipate any potential cash flow problems along the way
  • Estimate how much profit your business is likely to make, within its first three to five years of trading
  • Obtain financing from the bank - Small Biz Trends concludes that you are twice as likely to secure funding if you have a business plan

2. What type of auto repair shop should I open?

According to A Plus Auto Glass, there are multiple types of auto repair shops that you could open:

Auto repair service technicians

This is perhaps the most standardized service from the lot. It entails basic checks such as oil fluid levels and electricals.

You'll likely receive several repeat customers if you choose this model (especially those who drive a considerable amount) because servicing a car is recommended every 12 months or 10,000-12,000 miles (whichever comes first)!

Diagnostic technicians

This model is slightly more specialized. Such technicians carry out skilled checks that underline any issues vehicles might have.

It requires a higher level of skill because these issues cannot be seen on the vehicle's surface.

Auto system expert

If you choose to offer this model, you will specialize in surveying key systems that the vehicle has.

Engines, brakes and gear sets are all critical systems in most vehicles.

This business model has the potential to earn you high revenue.

Auto body repair clinic

This clinic or repair centre deals with vehicles that have been involved in accidents or roadside crashes.

If you choose this model, you may not have the volume of customers that the previous models may have but the revenue per sale is likely to be much higher.

You'll repair and retouch cars to ensure that they look as good as new and that any scratches or broken parts are fixed.

auto repair shop business plan car mechanic

Auto repair painters

If you choose this model, you will repaint vehicles or add touches to them.

Vehicles often need a fresh layer of paint, especially if they are being driven in areas where there is a lot of environmental pollution.

Expert auto glass repair

This model offers customers the chance to repair their windshield, windows or any other glass-related parts from their vehicle.

You'll likely require a high level of skill to do so but the rewards can be exponential, earnings wise.

You might also receive several clients who just want to repair small cracks in their vehicles.

3. What do you need to create your auto repair shop business plan?

Before writing your auto repair shop business plan and creating the financial forecast for your auto repair shop, you must first gather the data needed to create a comprehensive business plan.

You'll achieve this by...

  • Carrying out market research for your auto repair shop 
  • Building your marketing plan
  • Evaluating the operational costs and investments involved in setting up your business

Conducting market research for an auto repair shop

This is the longest and, admittedly, most tedious step in creating an auto repair shop business plan, but once you've got the right method - there's no excuse for mistakes.

As you move through the market research, you'll develop an understanding of the needs of your target market, as well as the current state of the industry. 

This enables you to then determine hot industry trends and identify where you should position yourself within the market to make your auto repair shop a success. 

Should your auto repair shop provide in-depth expertise on electronics, for example, or should it focus instead on motorcycle repairs or the sale of spare parts?

You must also assess the area in which you want to place your auto repair shop. This will give you a better idea of the local market, including the needs of residents and what services competitors are already offering. 

Developing the marketing plan for your auto repair shop

Once the market research is completed, the next step is setting out the marketing strategy for your auto repair shop's business plan. 

This is an opportunity to identify how you'll get your name out on the market and stand out from your competitors.

There are many ways of promoting an auto repair shop, from setting up a website and social media network to paid newspaper advertising and handing out street flyers. 

Taking the time to decide which marketing actions you want to go for will help you determine how much money you need to set aside for each one and how many customers you can expect, which you can then factor into your financial forecast later on.

auto repair shop business plan setting up a website

Evaluating operational costs and investments

To keep an auto repair shop running smoothly, you need a team you can count on. Typically, the size of a small car garage team is around 3 to 4 employees. You'll need a receptionist to welcome customers and at least two employees with experience in car mechanics - with the salary of each staff member being allocated according to their qualifications.

Additionally, you'll need a lot of technical equipment to get an auto repair shop up and running. Repairing vehicles requires having the right tools, as well as a full stock of car parts to help you meet the diverse demands of each car owner. 

To get an exact figure for the price of each item, you'll need to contact suppliers and ask them for quotes to integrate in your business plan for an auto repair shop. These quotes will then be integrated into the financial forecast.

4. What is the financial forecast 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
  • Initial financing plan

The projected P&L of your auto repair shop

This table, which starts with the turnover, allows you to evaluate the growth, evolution of the cost structure of your auto repair shop, and its expected profitability over the coming years.

auto repair shop business plan P&L

The projected balance sheet of your auto repair shop

This table shows the value of the company's assets at a given time, and, in particular, the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc.).

auto repair shop business plan balance sheet

The projected cash flow statement

This table is essential in helping you keep an eye on the company's cash flow, particularly to ensure that the company generates enough cash to be able to repay its loans and regularly renew equipment.

auto repair shop business plan cash flow statement

The initial financing plan

This table gives your bank or potential investor a quick overview of the resources needed to launch your auto repair shop and their costs - as well as the personal contribution you plan to make.

auto repair shop business plan funding plan

5. What does the written part of an auto repair shop business plan look like?

This part cannot be neglected. To be able to interpret your figures and judge the relevance of the assumptions used to build your forecast, it's necessary to have sufficient details about the project.

The editorial part of your business plan is made up of the following sections:

The executive summary 

The executive summary for your auto repair shop's business plan is the equivalent of a cover letter for your auto repair shop business plan.

The aim here is to introduce your business project to investors in as engaging and concise a way as possible, encouraging them to read on and learn more about your exciting venture.

In this part, you place a spotlight on the business's partners and their roles, as well as the distribution of the company's capital and the location of the auto repair shop. 

Be sure to mention who the business is managed by and the percentage of ownership that each partner possesses.

In terms of the management team, you should list any relevant experience that staff or managers hold, along with any qualifications achieved.

Products and services

This section explains the products and services offered by your auto repair shop. 

For example, if you choose a traditional auto repair shop model, this section could look something like this:

Change of oil

As part of our routine maintenance, we recommend that you carry out this service each time you visit our garage (provided it's within a reasonable time frame).

Brake repairs

This includes inspecting the brake pads or checking how smooth the brakes are on your vehicle. Again, this is part of our routine maintenance.

Full diagnosis 

This service includes both of the above and as well as other aspects such as headlights and coolant/fluid levels.

Market research

It's within this section that you'll present the results of the market research we mentioned at the beginning of this article.

The objective here is to demonstrate that there is indeed a viable business opportunity for a new garage in the area you've chosen.

Mention why you have a unique selling point over other auto repair shops and how your skill set helps you in this regard.

In this part, you'll reveal three key plans for your auto repair shop business plan:

  • Your pricing strategy-  the prices you'll set for your services / spare parts / new parts
  • Your marketing strategy -  the actions you'll take to attract customers and build customer loyalty
  • Your risk management strategy -  how you'll minimise the risks related to your business

The operational part

From your employees to your relationship with suppliers, you'll detail the operational organisation of your business within your auto repair shop business plan. 

It's important to mention what suppliers you'll be using to source your spare parts and equipment from. You might have few or many suppliers, depending on your concept.

Also, think about the payment terms that you might obtain with them. Are you a new business? If so, you may need to pay upfront.

The financial plan 

The financial plan puts your numbers into tables that you'll be able to present to potential investors so they get a better idea as to your expected profitability and how much funding you need.

6. What tool should I use to write my business plan?

We've established that to set up your auto repair shop, you need a business plan. What you may not know yet, however, is how you'd like to write it. There are three options available to you:

Write your business plan using Word or Excel

This solution has one major advantage: it's cheap.

Be wary, however, that you'll need to have an accounting background (or at least be very good with numbers) to write your plan in this way without making mistakes in the calculations.

Hiring a consultant to write your financial forecast

Hiring a chartered accountant or consultant to take care of the financial part of your business is a good way to avoid errors. 

However, the fees are generally quite expensive: budget around ÂŁ1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

Using online business plan software for your auto repair shop's business plan

If you're not used to writing business plans, another good solution would be to use our online business plan software .

auto repair shop business plan table of contents

There are several advantages to using specialized software:

  • You are guided through the writing process by detailed instructions and examples for each part of the plan.
  • You can be inspired by already written business plan templates
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you.
  • You get a professional document, formatted and ready to be sent to your bank.

If you are interested in this type of solution, you can try our software for free by signing up to The Business Plan Shop today .

7. Business plan template of an auto repair shop.

A business plan template will give you a better understanding of how to frame your own business plan, as well as what investors are looking for.

Our  auto repair shop business plan template will be off great help to you!

8. Three things you should know before writing an auto repair shop business plan

Firstly, make a list of the potential risks that your auto repair shop could face. This could include both external and internal factors. Think about how you might deal with them efficiently.

Secondly, consider trends that are currently high-flying in the auto repair industry. For example, auto parts are being replaced much less frequently  thanks to advanced technology resulting in greater durability.

Thirdly, the same study also believes that there is a shortage in the number of skilled automobile technicians. This is because several experienced workers have now retired or moved on from the industry.

That's it for now, we hope this article has helped you better understand how to write an auto repair shop plan. If you have any questions related to setting up your business, please do not hesitate to contact us.

Also on The Business Plan Shop

  • Business plan vs budget: what's the difference?
  • How to buy an existing auto repair shop?
  • How to create a financial forecast for your auto repair shop?

Know someone who might be interested in this article? Share it with just one click!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Complete Guide on Auto Repair Shop Business Plan (2023)

auto repair shop business plan

Table of Contents

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

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

Let’s get started!”

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

What is an auto repair shop business plan? 

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

Imagine you’re planning a long road trip. 

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

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

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

Why you need a business plan for auto repair shop: 

You will understand your business better:.

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

It will give you a Smooth Driving:

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

Make your business sustainable: 

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

It will give you Clear Path:

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

Creating an auto repair shop business plan: 

Understanding the basics.

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

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

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

Company Description: 

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

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

Overview: 

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

Mission Statement: 

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

Vision Statement: 

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

Products or Services

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

Market Positioning

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

Short-Term Goals: 

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

Long-Term Goals: 

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

Market Analysis

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

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

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

Target Market: 

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

  • Income level 
  • Values 
  • Lifestyles 
  • Purchasing behaviors

Address the market needs: 

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

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

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

Analyzing the Competitive Landscape: 

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

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

Market Size and Growth Potential

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

Industry Trends: 

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

Marketing and Sales Strategies

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

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

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

Organization and Management

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

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

Product or Service Line

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

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

Financial Projections

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

1. Profit and Loss: 

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

profit and loss sheet - auto repair shop business plan

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

Cash notes projection - auto repair shop business plan

3. Balance Sheet Projection

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

4. Break Even Analysis

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

Break even analysis - auto repair shop business plan

Risk Assessment and Contingency Planning

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

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

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

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

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

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

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

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

About the Author: Torque360

how do i write a business plan for an auto shop

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How to write a business plan for your auto repair shop.

business plan for an auto repair shop

Starting an auto repair shop is a great idea because it is a profitable business with a low overhead cost and a high demand for services.

Additionally, it is a business that can be easily scaled up as the demand increases.

But, before that, you need a business plan.

A business plan is a critical step before starting a new project, such as an auto repair shop. It helps to define the goals, strategies, and potential profitability of the project.

In short, a good business plan will help make sure your auto repair shop is profitable .

What are the necessary elements for a business plan for an auto repair shop? What is the best way to structure it? Which financial figures should be part of the analysis? What's the fastest way to outline a comprehensive business plan?

The article you're reading will cover all these questions and provide answers!

One last thing: it's your decision whether to start your business plan from scratch.

Instead, you can download our professional business plan for an auto repair shop and tailor it to suit your project.

business plan dealership

How to develop a business plan for an auto repair shop

Will a business plan be beneficial for your auto repair shop.

Yes, you should create a business plan to ensure success in your auto repair shop.

Structuring a reliable business plan will give you the means to:

  • get familiar with the auto repair shop market
  • stay current with consumer trends and infuse them into your project
  • recognize success factors for an auto repair shop
  • understand the car repair needs, maintenance requirements, and quality service expectations of customers
  • find a unique value proposition for your car maintenance garage
  • conduct a competitive analysis
  • find competitive advantages for your auto repair shop
  • find a business model that will generate positive cash flows
  • design a fail-safe strategy to drive business expansion
  • assess potential risks involved in operating an auto repair shop, such as liability for faulty repairs, equipment maintenance, and customer satisfaction

Our team has created a business plan for an auto repair shop that is designed to make it easier for you to achieve all the elements listed.

How to structure a business plan for an auto repair shop?

In a business plan, you'll find numerous facts, figures, and indicators. It is important to have an orderly format for smooth reading and comprehension.

When we designed our business plan for an auto repair shop , we ensured it was properly organized.

The structure is made up of 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

Our team has compiled vital data and metrics about the auto repair shop, providing insights and trends for entrepreneurs in the automotive repair and maintenance industry.

We revamp this section twice a year for up-to-date data.

2. Project Presentation

In the "Project" section, provide details about your auto repair shop, such as the services offered, skilled mechanics, competitive pricing, and emphasize the unique value proposition for vehicle owners in need of reliable repairs.

Include a brief self-introduction at the end of this section.

Discuss your experience in the automotive industry, your technical expertise in repairing vehicles, and your commitment to providing reliable and efficient auto repair services. Highlight your certifications, your use of advanced diagnostic tools, and your dedication to delivering exceptional customer service that builds trust and loyalty with car owners.

We've written up descriptions for you. Feel free to keep them as they are or make adjustments to match your business idea.

3. Market Research

Following that, we have the "Market Research" section.

The purpose of this section is to introduce the market segments for your auto repair shop.

It includes a competition study, outlining other auto repair shops in the area. Your shop's expertise and competitive advantages in vehicle maintenance are also highlighted. A customized SWOT analysis is included.

4. Strategy

In the "Strategy" section, you will find a detailed growth plan for your auto repair shop, outlining all the necessary steps and initiatives to ensure its high profitability.

Moreover, you'll find a marketing strategy, a plan to mitigate risks, and a completed Business Model Canvas within this section.

5. Finances

Lastly, the "Finances" section is dedicated to illustrating the financial plan and numerical data for your project.

business plan auto repair shop

How to write an Executive Summary for an auto repair shop?

The Executive Summary acts as an opening to the business plan of your auto repair shop.

Keep it short and to the point, no longer than 2 pages. Include only the vital details.

The intention behind this document is to make the reader eager to explore your business plan.

In the Executive Summary of your auto repair shop, provide responses to the following: what services does your auto repair shop offer? who is your target audience? are there other auto repair shops in the area? what funding do you require?

How to do the market analysis for an auto repair shop?

Conducting a market study for your auto repair shop enables you to grasp external factors like customer demands for automotive maintenance and repairs, competition within the automotive industry, and emerging trends in vehicle technology.

By conducting a comprehensive market study, an auto repair shop can understand customer needs, provide reliable automotive repairs, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased service bookings, and a prominent position in the local auto repair industry.

This is what we've outlined in the "Market Research" section of our business plan for an auto repair shop :

  • market trends and data about auto repair shops, including common car issues, repair costs, and customer satisfaction ratings
  • a list of potential customer segments for an auto repair shop
  • the competitor study
  • the possible competitive advantages for an auto repair shop

business plan auto repair shop

The key points of the business plan for an auto repair shop

What's the business model of an auto repair shop, business model of an auto repair shop.

An auto repair shop's business model revolves around offering repair, maintenance, or diagnostic services for vehicles. Revenue is generated through service fees charged for labor and parts.

The business model focuses on skilled mechanics, using quality auto parts, delivering efficient and reliable service, effective marketing to target vehicle owners in need of repairs, and building strong customer relationships based on trust and automotive expertise.

Success depends on technical knowledge and diagnostic skills, delivering prompt and accurate repairs, fostering positive customer reviews and recommendations, and continuously staying updated with automotive technologies and industry advancements.

Business model vs Business plan

It's important to understand the distinction between "business plan" and "business model."

A business model is a framework that demonstrates how a company operates profitably and adds value to customers.

In a business plan, you use a helpful tool called the Business Model Canvas to clearly show how your business operates.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for an auto repair shop .

How do you identify the market segments of an auto repair shop?

Market segmentation for your auto repair shop involves dividing your potential customers into different groups based on their vehicle types, repair needs, and demographics.

These categories may include factors such as cars, motorcycles, commercial vehicles, or customers seeking specific auto repair services or expertise (e.g., engine repair, brake service, tire replacement).

By segmenting your market, you can offer specialized auto repair services and solutions that cater to each segment's specific requirements. For example, you might focus on cars and provide comprehensive auto repair services for various car models and makes, offer motorcycle repair and maintenance services for motorcycle enthusiasts and riders, specialize in commercial vehicle repairs and cater to businesses with fleet vehicles, or focus on specific auto repair services or expertise such as engine repair, brake service, or tire replacement to address specific customer needs.

Market segmentation allows you to effectively target your marketing efforts, communicate your expertise in auto repairs, and provide reliable and efficient automotive solutions that meet the unique needs and preferences of each customer segment.

In the business plan for an auto repair shop , you will find a detailed market segmentation that helps you understand your audience and their preferences.

How to conduct a competitor analysis for an auto repair shop?

It's evident that you won't be the only auto repair shop in your area. There are other shops providing mechanical repairs, maintenance, and automotive services to vehicle owners.

Including a comprehensive competitor analysis in your business plan is vital; it involves identifying and evaluating your competitors' strengths and weaknesses.

Pay attention to their weaknesses (such as inexperienced mechanics, inadequate equipment, or poor customer service).

Why should you pay attention to these points? Because these weaknesses can impact customer satisfaction when utilizing auto repair services. By addressing these aspects, you can provide skilled and certified mechanics, offer efficient diagnostics and repairs, and deliver transparent pricing and excellent customer service, positioning your auto repair shop as a trusted destination for reliable and trustworthy automotive services.

It's what we call competitive advantages—nurturing them sets your business apart from the competition.

Here are some examples of competitive advantages for an auto repair shop: skilled and certified mechanics, extensive range of repair services, efficient diagnostic tools and equipment, competitive pricing, timely and reliable service, exceptional customer satisfaction, strong industry reputation and referrals.

How to draft a SWOT analysis for a dealership?

A SWOT analysis can help identify potential strengths, weaknesses, opportunities, and threats that may be encountered when starting an auto repair shop.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for an auto repair shop

The strengths for an auto repair shop

S stands for Strengths in SWOT, indicating the project's valuable attributes or advantages.

For an auto repair shop, potential strengths could include experienced mechanics, high-quality parts, competitive pricing, and excellent customer service.

The weaknesses for an auto repair shop

The "W" symbolizes Weaknesses, highlighting the specific areas or aspects of the project that need attention.

For an auto repair shop, potential weaknesses include lack of experienced technicians, limited resources, inadequate marketing strategies, and poor customer service.

The opportunities for an auto repair shop

O stands for Opportunities in SWOT, indicating the external factors that can be capitalized on by the project.

In the case of an auto repair shop, potential opportunities could include offering discounts to loyal customers, providing pick-up and delivery services, offering a mobile repair service, and expanding into additional services such as car detailing.

The threats for an auto repair shop

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may confront.

How to elaborate a marketing strategy for a dealership?

A marketing strategy is critical for a business plan as it details how a business will engage customers and drive sales.

An auto repair shop can gain customers by developing an effective marketing plan that emphasizes the shop's experienced mechanics, prompt service, and transparent pricing for high-quality automotive repairs.

Car buyers won't choose your dealership without effective marketing; showcasing your range of vehicles, competitive prices, and excellent customer service is crucial.

Are you utilizing marketing tactics to attract customers to your dealership? Consider running targeted advertising campaigns showcasing your latest car models, hosting test drive events, and leveraging customer testimonials to build trust and credibility.

If you're lacking ideas for the marketing strategy of your project, don't worry.

How to build a solid financial plan for a dealership?

A solid business plan must include financial data to provide an accurate assessment of the business's potential success.

In the process of developing your business plan, you'll need to determine the expected revenue for your auto repair shop.

A relevant and credible revenue forecast is crucial to ensure your business plan appears solid when read by investors.

Our financial plan for an auto repair shop is designed to be user-friendly, incorporating automatic verifications that assist in identifying and correcting any assumptions. This ensures you can build credible projections with confidence.

Without a doubt, you will be required to draft a provisional budget for your auto repair shop. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

The break-even analysis is a crucial tool in your financial plan, providing insight into whether your auto repair shop will generate profits or not.

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  • Planning for Growth

How to Create an Auto Repair Shop Business Plan

  • by Sonya Stinson Sonya Stinson is a New ... more
  • January 9, 2020
  • 4  Minute Read
  • Home > Blog > Planning for Growth > How to Create an Auto Repair Shop Business Plan

how do i write a business plan for an auto shop

Jack’s Car Clinic opened three years ago on a shoestring budget, with some borrowed tools, personal savings and financial assistance from family members. Now word-of-mouth about the auto repair shop’s stellar service keeps a steady stream of customers driving into Jack’s garage. Jack sketched out a loose auto repair shop business plan in a notebook before launching the company, but never got around to formalizing it. Now the business is ready to grow, and a small business loan would help provide the resources Jack needs to expand. To prep for the loan application process, Jack needs to update his business plan to show lenders.

If you, like Jack, are an auto repair shop owner who is facing the task of writing a formal business plan for the first time — or updating an old plan — you may need help getting started.

Here’s a guide to help you develop an auto repair shop business plan that will get your new venture on track for greater success.

Why You Need a Business Plan

It probably doesn’t matter to Jack’s loyal customers that the car shop started up with a business plan that would fit on a repair order form. They only care that the shop’s reliable service keeps their vehicles in mint condition. But a potential lender may require more thorough paperwork to assess whether Jack’s business is a good investment.

If you’re thinking of applying for an auto repair business loan , you can’t afford to put off creating a business plan any longer. A solid business plan may help potential lenders feel confident that you know how to manage an auto repair shop and have a clear vision for how you want to use the loan funds to grow your business.

How to Structure Your Business Plan

There’s no single business plan template, but it’s probably wise to adhere to some of the more common practices and traditional lender expectations.

Business plan styles generally fall into one of two categories, according to the U.S. Small Business Administration : traditional or lean startup. The more common, traditional plans are longer and more detailed, while lean startup plans stick to brief summaries that typically fill a single page, according to the SBA.

Your choice may depend in part on the preferences of the lenders you plan to approach, keeping in mind that some lenders may not require you to have a formal business plan at all. The SBA notes that business owners seeking financing from traditional sources may want to go with a traditional business plan. Other considerations include the complexity of your business and how often you expect to update your plan.

Ultimately, your goal should be to write the auto repair shop business plan that best fits your company’s current needs and guides it to the next stage.

Lean and Traditional Business Plans

The SBA lists nine common elements each for lean startup and traditional business plans, with the former list taken from the well-known Business Model Canvas template, created by Swiss business theorist Alexander Osterwalder.

Sections of a Lean Startup Business Plan

  • Key partnerships – e.g., suppliers, manufacturers, subcontractors
  • Key activities – methods your business will use for competitive advantage
  • Key resources – e.g., staff, capital, intellectual property, networks, organizations
  • Value proposition – your company’s unique value in the market
  • Customer relationships – how customers will interact with your business
  • Customer segments – your target market(s)
  • Channels – ways you will communicate with customers
  • Cost structure – your key business costs and spending strategy
  • Revenue streams – how your business will make money

Sections of a Traditional Business Plan

  • Executive summary – overview of the purpose, leadership, staff and finances of your business
  • Company description – more detailed discussion of the mission, target market, structure, etc.
  • Market analysis – research-based report on industry trends and market competition
  • Organization and management – details about company’s legal structure, key team members
  • Service or product line – what you will sell and how these offerings will help your customers
  • Marketing and sales – your marketing strategy and selling process
  • Funding request – how much money you want to borrow and how you will use it
  • Financial projection – your five-year financial forecast, including budget, income, cash flow
  • Appendix – supporting documents like credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents and other contracts

Car mechanics review auto repair shop business plan

Tweaking the Template for Your Business

Your business plan may be similar to other auto repair companies, or any service business, for that matter. But there are still ways to tweak your plan to make it stand out from the crowd.

Let’s say you don’t have the time to develop a highly detailed, comprehensive plan and you think your business model can be explained in a simpler, shorter plan. For those reasons, you might start with a basic lean startup template and put a special emphasis on highlighting those elements that show your company’s best strengths. For example, you’ll want to highlight competitive edges — like hiring graduates of a top-rated automotive mechanics’ school or using a revolutionary enterprise software system for diagnosing mechanical problems — in the key activities section. Maybe you’ve developed a robust email communications and social media strategy you’d like to tout in the section describing your channels for customer engagement.

If you enjoy delving into the details — or you simply must buckle down and do it to qualify for the financing you seek — the longer traditional business plan format is probably the way to go. You might decide to put extra effort into your market analysis of the automotive repairs industry and sizing up your local competition. If recent trends in your own business have you rethinking your product and service line or your long-term financial projections, it makes sense to focus on those areas when you create a new or updated business plan.

Like Jack, you’ve learned a lot about how to manage an auto repair shop since you put up your sign and saw your first customer drive up. Incorporating those lessons into a vision and plan for growing your business is an essential step in acquiring the financing you need to fuel its success.

Tags: Auto Repair Shops , Managing your Cash Flow , Marketing for Small Business , Small Business Resources

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Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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how do i write a business plan for an auto shop

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!

Nick

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?

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how do i write a business plan for an auto 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.

how do i write a business plan for an auto 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 newfoundr.com, 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.

Our work is reader-supported, meaning that we may earn a commission from the products and services mentioned.

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How to Write an Auto Repair Shop Business Plan

  • Last Updated: March 27, 2023
  • By: Greg Bouhl

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how do i write a business plan for an auto shop

A business plan is perhaps the most important tool for starting or expanding an auto repair shop.  Writing an auto repair shop business plan for the first time can be intimidating, but we have tips and sample plans to help write your plan.

Why is a Business Plan Important?

While many people write their auto repair shop business plan for the purpose of funding, the business plan can offer many more benefits. 

You have likely already spent a lot of time thinking about your shop, but it’s next to impossible to stay organized and reach all of your goals by not writing them all down. It’s very difficult to have a clear vision until you put those thoughts on paper and that’s where the business plan comes in.  Creating a business plan provides a blueprint to connect all the dots and make your vision a reality.

Another point to encourage you in writing your business plan is the Small Business Administration shows that over 21% of small businesses fail in the first year and 50% fail in the first five years.  Some of the more common reasons for business failure include not starting with enough money, lack of planning and over estimating revenue.  The business planning process identifies issues on paper which can help reduce costly mistakes after opening. 

The business plan is also important because of the critical feedback you can get on your venture.  It’s very common for a new entrepreneur to be overly optimistic when starting their business and being blind to what they don’t yet know.  By having another auto repair shop owner, professional or consultant in the auto repair industry, local business owner or accountant look over your plan, they will provide critical feedback to find weaknesses in the plan and make sure your numbers are reasonable. Getting these insights and fixing the plan before taking it to a lender or investor increases the likelihood you will have a successful business and receive funding.                

Taking the time to write a business plan is not something many prospective auto repair shop owners want to do because it’s unfamiliar and takes time. Keep in mind though, that writing a business plan is nowhere near as hard as running an auto repair shop, especially one that wasn’t properly planned from the start.

What Goes in a Business Plan?

There isn’t a set format that business plans are required to use, however there are certain topics that need to be covered. Below we have an auto repair shop business plan outline that should be helpful in getting started.  However, since this is your plan, write it the way that makes the most sense for your business and the intended reader.

Executive Summary

The executive summary is included at the beginning of a business plan but is going to be the last thing written.  This section should be a clear, concise, and high-level overview to help the reader (often a lender or investor) quickly decide whether or not your project is one they will continue reviewing.  If they aren’t engaged after reading the summary, they will not likely read further so it is important to quickly generate interest.

Common elements of an executive summary for an auto repair shop business plan includes:

  • Overview of your auto repair shop
  • What need is your shop serving that isn’t currently being served
  • Experience of the owner(s) or staff
  • Amount being requested
  • How much the owner(s) are investing
  • What the money will be used for

Business Overview

The business overview section of an auto repair shop business plan is where you provide details of what the business is going to do.  It’s especially important to show the excitement you have for the business and knowledge of the industry.  If you are using the plan for funding, you will have the opportunity to tell the loan officer all the great things you plan to do.  However, the plan will likely be going to a loan review committee who won’t get to hear your story, so be sure to get all the important details on paper!

The business overview has a few key areas to focus on, including the overview of shop, any specialties that will be offered and why the auto repair shop is needed in your area.

In the auto repair shop overview, provide some details on the services to be offered by the shop.  Many repair shops operate as a general mechanic, fixing anything that comes in the door, while others focus on particular brands or even specializing in transmissions or brakes. 

Another important aspect of this section is to answer why this auto repair shop is needed.  Describe what makes your auto repair shop unique among all the other repair shops in your area and why people will go to you versus the competition.

While you may be the best at turning a wrench, it takes a lot more than that to have a successful business.  Not saying being the best mechanic isn’t important, but just being a great mechanic may not be enough.  The owner of a successful auto repair shop needs to not only offer quality work, but also properly manage employees, market effectively, watch the numbers and so on. 

Industry Overview

The industry overview section should describe the overall market for auto repair shops.  If national sales trends aren’t increasing, try to find positives that support the decision to open a new repair shop, such as population growth in your local market.  The more supporting data you can come up with to support the strength of the industry the better, but be sure to reference where you got this information.  A lot of industry information can be found with an online search or in industry publications but if you haven’t already, take a look at our Guide to Starting an Auto Repair Shop.  

Company Ownership

Indicate the legal entity of the auto repair shop and how ownership is structured.  If you aren’t sure about the differences between a sole proprietorship, partnership, corporation or LLC, be sure to check out our overview of legal entities.

Finding a great location is an important aspect of starting an auto repair shop.  Ideally, the location of your shop should be in a location with high visibility and traffic, and easy to get to.

You may not have a site identified yet or you may have several to choose from, which is fine.  If you don’t have one yet, discuss what you’re looking for in terms of general location, square footage, price and any other important details.  If you don’t have a site selected yet, include as many details as are available and estimate on the high side as to what your location is going to cost.

Read more about tips for choosing a location .

Hours of Operation

Include the hours your auto repair shop will be open and include any reasoning as to why those hours are important if relevant. 

Provide some details on who your equipment and inventory vendors will be.  Make sure you have identified all the suppliers necessary to ensure constant and reliable inventory.  Do you have a back-up in case your main supplier has issues in getting you the inventory you need?

Permits and Licenses –

Before opening a new auto repair shop, you’ll need to obtain several federal, state, and local licenses and permits.

Learn more about licenses and permits for a new business.

Owners, Management & Employees

In this section, include a brief biography on the owner’s professional experience and education.  This section is especially important when looking for funding as a lot of weight is placed on the experience of the owner(s) and their ability to successfully run an auto repair shop. If the owner(s) don’t have direct industry experience, explain how their previous experience is relevant.

Management and Employees

This section outlines the auto repair shop’s staffing plan and will ultimately help to estimate the positions needed and forecast payroll expenses.

In the management portion, outline the title of the position and wages for any managers or key positions.  There may be some people you have already selected for these key roles.  If so, include a bio about their experience to help build the credibility of the team. 

Next, include information about staffing to detail what positions and how many people are needed to run the auto repair shop.  Include the title of the position (such as mechanic, front desk, administrative, etc), the number of people needed for each position, hours needed per week or month and the wages for those positions.  

Include a timeline of milestones already achieved and those that are being worked on.  By having a timeline, you will have a list of the sequence of when critical tasks need to happen.

The competition for auto repair is competitive and the number of ways to market keep expanding.  Without a solid plan to inform and entice, it may be hard to get customers in your door.  Getting noticed in the market is critical, so what will you do to get the message out and make your auto repair shop stand out?

The marketing section is one of the most important sections of the business plan, but is often not given the time and attention to detail as it needs. Why is it so important?  Because your business needs customers to spend money and without sales, there is no business.  Without knowing who your customers are and how to reach them, they may never hear about your auto repair shop. 

Some key areas of the marketing section should include the target market, promotional strategy and competitive analysis.

Target Market

The first building block in the marketing plan is defining the target market.  While a lot of people have vehicles, it’s easy to assume that everyone is also your customer.  This isn’t case since some people have warranties on their vehicles and some people do their own work.   

A target market is a group or groups of people that are most likely to benefit from a company’s offerings.  A target market shares a similar set of characteristics such as demographics (age, gender, education, or income), interests (sports, hobbies, lifestyle or values) or geographic areas.  Don’t think of targeting a specific group as excluding people and limiting business potential.  By defining your target market, you are able to more effectively spend your marketing budget by specifically going after the people who are most likely going to need your auto repair services. 

After defining who your target market is, try and find numbers as to how many of them there are.  This is usually easier to do with demographic or geographic information, but having actual data in your business plan lends credibility and will help to form the basis for the sales projections we will work on later.  Here is a free resource to help research the size of the potential target market .

In addition to marketing directly to potential customers, are there opportunities in developing relationships with companies to work on their fleets, used car dealerships, towing companies, etc as a referral source?  While the profits for fleet work and dealerships is lower than when dealing with customers directly, the volume and consistency of work may be well worth it.

Promotional Strategy

After defining the target market, the promotional strategy comes next.  The promotional strategy looks at how to best reach your target market.  By knowing your target market, assumptions can be made on how to best reach them by focusing on their media preferences. 

If you are going to do the marketing in-house, make sure to have a solid plan in place on how you will generate attention through the various marketing channels like print, radio, social media, website, etc.  Knowing your target market is key so you can most effectively reach them. Many plans make the mistake of stating they are going to use word-of-mouth marketing and do social media themselves as their only marketing.  Word-of-mouth is great but it takes years to build in most cases.  Social media can be effective for many businesses, but it takes a consistent and dedicated strategy to make it work well. Most business owners get busy working in the business and can’t stay consistent with their social media efforts. Not only is a strong promotional strategy important for the success of your auto repair shop, but lenders and investors will see through a weak promotional strategy which may affect your ability to get funded.  Also, be sure to not guess how much advertising is going to cost and get actual quotes so you have real numbers in the plan.

If marketing isn’t your strong suit or maybe you aren’t sure you have enough time to stay consistent, you can look at hiring a marketing company.  Hiring a marketing company lets you focus on what you do well, while they focus on what they do well and market your auto repair shop. If you decide to go this route, get details and prices for the work they are going to do.  Include these details in the plan.

Competitive Analysis

The competitive analysis section will provide an overview of the competition in your area and why you believe people will choose your repair shop over them.  You will likely focus on the independent shops offering the same services, but don’t forget the dealerships and larger corporate repair shops as well. If you are offering a particular type of specialty that isn’t solely being offered by another shop, don’t say there isn’t any competition, as many other shops probably are offering it. One example would be a shop only offering brake jobs.  While there may not be another shop specializing on brake jobs, it’s likely every other shop is offering those as well.

You should list how many auto repair shops are in a nearby radius as customers can have their vehicles towed to other shops.  Then, focus your analysis on the top 3-5 competitors.  The purpose is to research and show you understand the competition and what gives you a competitive advantage.  If you don’t have a competitive advantage yet, it may be time to go back to the drawing board to come up with one.  Unless the local population is growing, it’s going to be difficult to get people to change where they are currently having their vehicles worked on unless you offer something different or the competition is really bad.

Some of the key areas to look at in a competitive analysis include:

  • Competitor’s name
  • Years in business
  • Services offered
  • What they do well
  • What you will do better

This is not the place to bash your competition or make references to how bad their repairs are or what a terrible person the owner is since these are subjective statements. Doing so also makes you look unprofessional.

Financial Projections

The financial projections of your auto repair shop business plan are the most important part of the plan, but are often the most intimidating.  Typically, lenders and investors will read the executive summary first to see if it is a project they would be interested participating in and then jump right to the projections.  If the thought of preparing your own financial projections is a bit daunting, software such as LivePlan helps make it easier.

Sales Projections

Sales projections can be complicated to estimate without knowledge of the market.  There are a number of ways of estimating sales for an auto repair shop, but you will want to refer back to your target market research that was done earlier to support your assumptions.

This is a common place for new business owners to be overly optimistic and is where having a mentor or consultant help with the plan.

Read our article on creating financial projections for more information.

Seasonality

When looking at sales projections, the effects of seasonality also needs to be evaluated.  Seasonality is more significant in some businesses than others and is important to estimate because it can show in the financial statements whether a business is projected to run out of money. 

Simply dividing sales by 12 months is a common mistake picked up by lenders and investors because it shows the entrepreneur may not really understand the sales trends for the industry.

Local markets will vary, and auto repair shops aren’t typically highly affected by seasonality, but services are generally more needed during times of temperature extremes in the winter and summer.  

Uses of Funds

Start off with a section for the Use of Funds to show the total cost of starting the shop.  List any costs you have already incurred and what still needs to be purchased.  You don’t need to itemize every little item like small individual tools, so combine the cost of all similar items and list them.   

It’s important to have quotes for everything should the bank or lender request them, but only add quotes for the more expensive items such as building renovations or large equipment as attachments in the Appendix. 

Total up the Uses of Funds to find the total cost of the project

Sources of Funds

The Sources of Funds section breaks out where the money is going to come from.  The owner’s investment is commonly listed first.  Most lenders are going to want to see the owner(s) put in between 15% – 25% for a new auto repair shop.

Other funding sources are listed next such as bank loans, investor funds, etc. Learn more about finding financing for your auto repair shop .

The total amount in the Sources of Funds should match the Uses of Funds.

Financial Statements

There are three primary financial statements that a lender is going to look at for a start-up auto repair shop which include the cash flow statement, profit and loss statement and balance sheet. The information provided previously in the narrative portion of the business plan must match the financial projections.

Cash Flow Statement – The projected cash flow statement is an important tool when starting a business. Similar to a checkbook register, the projected cash flow statement shows an estimate of the money coming into the business and expenses that will need to be paid.  The benefit of this statement is to see whether there is enough cash to sustain the business based on the assumptions.  Should this number be negative, the assumptions need to be reevaluated to see if sales can be increased, expenses reduced or if more cash is needed to start the business.

The cash flow statement is typically structured to look at three years in the future, with the first year broken out by month and years two and three broken out by quarter.

Profit & Loss Statement – This statement (sometimes called a P&L statement or income statement), while similar to the cash flow statement, shows the annual income and expenses of the auto repair shop.  The projected profit and loss statement is often displayed annually and takes a before-tax view of the financial results of the business.

Balance Sheet – The projected balance sheet statement is not requested by all banks when reviewing a loan for new auto repair shop. A projected balance sheet shows the projected assets and liabilities for a business at start-up and then the end of each year.

Personal Financial Statement

If applying for bank financing, a personal financial statement will typically be needed for every person with a 20% or more ownership position in the shop.  This statement is similar to one that is used to apply for a home or car loan.  Here is a link to a personal financial statement template. The personal financial statement will show a borrower’s assets (checking & savings accounts, CD, IRA, 401K, valuables, home, vehicle, etc) as well as assets (mortgages, credit card bills, installment accounts, etc).

See how to fill out a personal financial statement .

At the end of the plan, include an appendix section to include any supporting information such as resumes, quotes, floor plans, etc.

Save Time with an auto repair shop Business Plan Template

To help with creating a business plan, you can use our free business plan template .  This template can be used for any business, so some of the sections may not be relevant to your auto repair shop business plan. Some of the tips in this article should help you in modifying it to work for your shop.

To help with the creative juices, here is a link of a free sample auto repair shop business plan.

Last, there is software such as LivePlan that includes an auto repair shop business plan narrative and financial projections to help make writing a business plan easier.

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Welcome! My name is Greg Bouhl, and I am a serial entrepreneur, educator, business advisor, and investor.

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Auto Repair Business Plan Sample

NOV.11, 2016

auto repair shop business plan

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

  • Understand the market needs and tailoring the services right
  • Managing their resources well
  • Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

  • Professional Automobile Drivers
  • New Car Owners (Households/ Individuals)
  • Used Car Owners (Households/ Individuals)

2.4 Business Target

  • To achieve an NPS score above 80 within two years of our launch
  • To achieve a CSAT score of 95 to 98% within a year of our launch
  • To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Auto Repair Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Auto Repair Business Plan - Startup Cost

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

  • Automobile engines
  • Automobile exhaust systems
  • Automobile brakes
  • Automobile radiators
  • Ignition System
  • Electric repairs
  • Spark plug, fuel cap, and others
  • Tire pressure monitoring
  • Wheel alignment
  • Regulating radiator fluid, brake fluid, transmission fluid, etc.
  • Maintaining car’s air conditioning system
  • Installing Efficient air filters
  • Installing the latest stereo system
  • Brake discs
  • Backup camera
  • Turbochargers and more
  • Seat covers
  • Dash covers
  • Fuel consumption meters
  • Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Auto Repair Business Plan - Marketing Segmentation

5.2.1 Professional Automobile Drivers

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services.

https://ticket-drama.fun/buytickets/onegin/?date=9.07.21/kiev

To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

5.3 Business Target

Our business targets are:

  • To earn a net profit of $24.5k per month by the end of the third year
  • To obtain a repeat purchase rate of 80% throughout our service years
  • To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
  • To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

  • Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
  • We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
  • Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

  • We’ll advertise our startup through posters, Google Local ads service, and social media.
  • We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
  • We’ll offer a 50% discount on our services for the first month of the launch.
  • We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

Auto Repair Business Plan - Sales Monthly

6.4 Sales Yearly

Auto Repair Business Plan - Sales Yearly

6.5 Sales Forecast

Auto Repair Business Plan - Unit Sales

Personnel plan

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

  • 1 Supervisor to help in the management
  • 8 Auto Mechanics to perform the major work
  • 2 Technicians to provide overall support
  • 1 Database Manager to manage company’s sites and arrange video calls
  • 1 Accountant to maintain financial records
  • 1 Front Desk Manager/ Call Operator
  • 2 General Assistants
  • 1 Sales Executive

7.2 Average Salary of Employees

Financial plan, great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

8.2 brake-even analysis.

Auto Repair Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Auto Repair Business Plan - Profit Monthly

8.3.2 Profit Yearly

Auto Repair Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Auto Repair Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Auto Repair Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Auto Repair Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

how do i write a business plan for an auto shop

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Car Dealership Business Plan: Complete Guide

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  • January 11, 2023

how do i write a business plan for an auto shop

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your car dealership, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your car dealership business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors may lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire business plan below.

Why do you need a business plan for your car dealership?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or a private grant

How to write an executive summary for your car dealership?

Provide a precise and high-level summary of every section that you have included in the business plan. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately. Also make sure that the executive summary doesn’t exceed 2 pages.

The executive summary usually consists of the 5 main paragraphs:

  • Business overview : introduce your car dealership: what is your business model (franchise vs. independent business ; new vs. used car dealership), how many cars will you have in inventory? Are you partnering with any car manufacturer(s)? Where would your store be located? Etc.
  • Market overview : briefly analyze the car dealership industry in your area (market size and growth), your competitors and target customers: average income of your target audience, demographic distribution, customer preferences etc.
  • Management & people : introduce the management team and their industry experience. Mention your business partner(s), if any. Also give here an overview of the different teams, roles and their reporting lines
  • Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? Also include here a small chart with your key financials (revenue, net profit )
  • Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last? How will you spend the money?

how do i write a business plan for an auto shop

Car Dealership Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Business Overview

In the business overview section of your car dealership business plan, you should expand on what your company sells, to whom, and how it is structured. A few examples of questions you must answer here are:

  • The history behind the project: why did you choose to open a car dealership today?
  • Your business model : Are you franchising or is this an independent store? Are you selling new or used vehicles?
  • Products & services : What vehicles / brands do you plan to sell? Are you planning to add any additional services (e.g. car repair & checkups, etc.)
  • What is the legal structure of your company? Who are the directors / shareholders?

a) History of the Project

Briefly explain how did you come up with the plan to start a car dealership business. What motivated you to get into this business venture? 

Also try to demonstrate to investors your interest and passion for the car industry and car dealership in general.

For example, you might have worked in a car dealership and/or at a car manufacturer sales department in the past, and found immense growth potential for this type of business in your area.

how do i write a business plan for an auto shop

b) Business Model

Explain in this section what business model you chose for your car dealership. Here are a few questions you must answer:

  • Will you start an independent dealership, franchise model, chain store, etc.?
  • Will you open a brand-specific dealership?
  • Would your car dealership deal in new cars, used cars, or both?
  • Do you plan to open an online dealership?
  • Would you offer service and repairs in your car dealership?

c) Products & Services

Now that we have briefly introduced what your business model is, you must explain in detail what exactly you intend to sell. There are 2 things here:

  • Products (cars): what vehicles and brands do you intend to sell? Why did you choose these vehicles / brands?
  • Services : if you offer additional services (e.g. car repairs, checkups), explain what they are

In addition to the products and services, you should also include a list of prices for each. Of course, this doesn’t need to be exact. Car prices fluctuate based on various factors. Yet, you must be able to provide a range of prices for each category (e.g. sedan, luxury cars, vans, etc.).

If you specialize in a specific brand, you can provide a list of prices per model in appendix as well.

The prices are important as they will allow investors to tie your product offering with your financial projections later on.

how do i write a business plan for an auto shop

d) Legal Structure

Explain the legal structure of your nursing home in this section. Are you starting a corporation, a limited liability company, or a partnership? Who are the investors? How much equity do they actually own? Is there a board of directors? Do they have prior industry experience?

3. Car Dealership Market Overview

A complete understanding of the car dealership industry is important for the success of your business.

Therefore, you must cover here 3 important areas:

  • Status quo : how big is the car dealership industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
  • Competition overview : how many car dealership competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?
  • Customer analysis: what are your target customers? What are their customer preferences?

a) Status quo

When looking at the car dealership industry, try to start at the national level (US) and narrow it down to your service area (a city for example). You should answer 2 important questions here:

How big is the car dealership industry in your area?

How fast is the car dealership industry growing in your area, how big is the car dealership industry in the us.

The auto parts and car dealership industry in the US is huge: it was worth $1.18 trillion in 2021 as per the National Automobile Dealers Association . As per the same report, there were 16,676 light vehicles car dealerships in the US in 2021 which generate an average revenue of $71 million.

how do i write a business plan for an auto shop

Sales are divided between new (52%) and used vehicles (37%) as well as services and parts (11%).

how do i write a business plan for an auto shop

After the US, assess the size of the car wash industry in your city or area. Focus on the zone where you plan to offer your services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup .

Luckily, NADA publishes statistics per state so you can narrow it down easily. For your city instead, you will need to do work out some estimates. To give you an example, let’s assume you plan to operate in an area where there are already 30 car dealership businesses (in a 25 miles radius for example).

Assuming our business is based in Connecticut, we can use the state’s average annual turnover of $49,661 : we can reasonably assume that the car dealership industry is worth $1.5 million in your area . In other words, there are over 35,100 light vehicles (new and used) being sold in your area each year (assuming the average retail price of $43,000).

Now that we know your area’s market size, let’s look at growth instead.

Fortunately, you can use NADA’s number again as they publish annual reports. Just use your state’s market size growth, and explain the growth (or decline). This can be due to average car prices, or volume.

how do i write a business plan for an auto shop

b) Competition overview

You should discuss both your direct and indirect competition in your business plan. Other car dealerships in the region will be your immediate competitors. Internet auctions, individual dealers, etc., will be your indirect competitors. 

In this section, you should also discuss the essential components of the business models of your main competitors. Your research should be focused on their clientele, the kinds of cars they offer, and their strengths and weaknesses.

A thorough competitive analysis is crucial as it may allow you to discover and address a customer need or preference that none of your rivals is addressing today.

Here are some of the questions that you must answer in this section:

  • How many competitors are there in the area where you want to open your car dealership?
  • Are they franchises or independent stores?
  • Do they partner with specific car manufacturers?
  • What type of cars do they offer (luxury, economy, used, new, etc.)?
  • What is the average price range of the cars they sell?
  • How many employees do they have?
  • Do they offer services and repairs?
  • Do your competitors offer buyback on the cars sold by them previously to the client?
  • What type of offers and discounts do they offer to attract customers?
  • How many cars / vehicles do they sell on average per month?

how do i write a business plan for an auto shop

c) Customer analysis

Now that we have a good idea of the car dealership industry in your area as well as competition, now is time to focus on your target audience: customers.

Knowing your customer is extremely important before you get into any business. This is all the more relevant for car dealership where customer preferences and tastes are very different.

For example, if you are planning to get into a luxury car dealership business, you should look into:

  • The estimated population of high-income people in your area
  • Types of luxury cars that are in demand (hatchback, sedan, SUV, etc.)
  • Shopping preference of your target customers (online or offline)
  • How frequently do they buy (or exchange) new cars?
  • Is their buying decision influenced by offers or discounts?
  • What features do your target customers want in their new luxury cars?
  • What type of additional services do they expect from their dealers?

4. Sales & Marketing Strategy

This is the section of your business plan where you outline your customer acquisition strategy. Try to answer the following questions:

  • What are the different marketing strategies you will use?
  • What are your Unique Selling Points (USPs)? In other words, how do you differentiate from your competitors?
  • How do you intend to track the success of your marketing strategy?
  • What is your CAC or customer acquisition cost?
  • What is your marketing budget?

What marketing channels do car dealerships use?

A few marketing channels that car dealership businesses typically use are:

  • Signage, billboards
  • PPC ads, Facebook ads, etc.
  • Print media
  • Loyalty programs
  • Online local listing (Google Business)
  • Content marketing (share content like vehicle maintenance tips, safe driving tips, etc.) on platforms like blogs, social media, etc.
  • Word of mouth, recommendations

You must have a fair and nearly accurate estimate of your marketing budget. Therefore, make sure to budget for marketing accordingly in your financial projections.

how do i write a business plan for an auto shop

What are your Unique Selling Propositions (USPs)?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

  • Products: you may be the exclusive distributor or a car make in your area for example
  • Services : you may offer repairs and regular checkups for your customers
  • Location : you store is closer to a busy road and/or to where your customers live

Your USPs will depend on your business model, competitor analysis, and target audience. Whatever your USPs are, it should appeal to your potential customers and attract them.

5. Management & People

You must address 2 things here:

  • The management team and their experience/track record
  • The organizational structure: the different team members and who reports to whom

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your car dealership.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

Organization Structure

Even if you haven’t already hired a VP of sales, sales managers, support staff and any other relevant staff members, you must provide a chart of the organizational structure outlining the different teams, roles and their reporting lines.

how do i write a business plan for an auto 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 private investors, a solid financial plan will prove them your car dealership is an attractive investment.

There should be 3 sections to your financial plan section:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to start a new car dealership, or purchase new inventory, expand your store, etc.)
  • The 5-year financial projections

a) Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a car dealership, startup costs are all the expenses you incur before you open your shop and starting making sales. These expenses typically are:

  • The lease deposit for the commercial space you rent (if you don’t buy it)
  • The design and renovation of the existing facilities
  • The inventory costs (the initial stock of vehicles you must buy to sell them at opening)

For example, let’s assume you want to buy 30 light vehicles as a start for inventory, and you take on a loan where you need to put down 15% upfront. Now, assuming these vehicles each cost $50,000 on average, this means you must put down $300,000 yourself. This comes in addition with any other startup cost mentioned above (lease deposit, renovation costs, etc.).

c) 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your business plan for your car dealership.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 20%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of vehicles you sell over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

how do i write a business plan for an auto shop

7. Funding Ask

This is the last section of the business plan of your car dealership. Now that we have explained what type of vehicles your company sells to whom and at what price, but also what’s your marketing strategy, where you go and how you get there, this section must answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

  • What percentage of the total funding the loan represents?
  • What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

  • What percentage ownership are you selling as part of this funding round?
  • What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to acquire the cost for the inventory (the vehicles)? Or will it cover mostly the cost of buying the land and building the store?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our car dealership financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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ProfitableVenture

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.

7. MARKET ANALYSIS

  • 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.

9. SALES AND MARKETING STRATEGY

  • 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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how do i write a business plan for an auto shop

Auto body repair marketing plan example + free template

As a small business owner of an auto repair shop , developing a comprehensive auto repair shop marketing plan is crucial to attracting new customers , retaining existing ones, and staying competitive in the auto repair industry . 

A successful marketing strategy should include online and offline marketing tactics to target potential customers and keep repeat customers . From search engine optimization ( SEO ) and Google ads to social media to email marketing , we’ll show you how to leverage online marketing tools to reach your target audience and drive new customers . 

Finding the right marketing strategy for your auto repair business

Determining the right marketing strategy is crucial to creating a successful auto body repair marketing plan . Some of the most popular marketing strategies for auto body repair shops include social media marketing , email marketing , SEO and pay-per-click (PPC) advertising.

Social media marketing effectively reaches potential customers on platforms like Facebook, YouTube, and Instagram. Engaging content helps you build a loyal customer base and increase brand awareness.

Email marketing involves sending subscribers promotional emails, making it an excellent way to stay in touch with existing customers and entice them to return for additional services.

Pricing is also an essential factor in auto repair shop marketing . Offering competitive pricing and specials on routine services like oil changes will attract new customers and retain existing ones. 

A local SEO strategy uses relevant keywords in your web content to target customers searching for an auto body shop in your local community . You will get more organic traffic and new leads when your SEO efforts help your website rank higher on search engine results pages (SERPs). 

How do I write a business plan for an auto repair shop ?

A well-written business plan is crucial to the success of any business, including an auto body repair shop. A business plan outlines goals, strategies, and financial projections. Here are some critical steps to follow when writing an auto repair shop business plan : 

  • Summary: This is a brief overview of your business, including your mission statement, goals and the products or services you offer.
  • Company description: In this section, provide a detailed description of your auto repair shop , including its history, ownership structure and legal structure.
  • Market analysis: This section should outline your target market , including demographics , competition and trends in the industry.
  • Services: In this section, provide an overview of the auto repair services you offer, including auto body repair, oil change , collision repair, and mechanical repairs.
  • Marketing strategy : This section should outline your marketing strategy , including your target audience , promotional channels, and budget.

A well-crafted plan helps you identify your target market , outline your services, set achievable goals, and develop effective auto repair marketing strategies . It will also help you secure funding from investors and financial institutions. 

Example marketing strategy for auto repair businesses

In addition to your business plan , you need an auto repair marketing plan . As an auto repair shop owner , you understand the importance of a solid marketing strategy to attract and retain customers. With the increasing competition, standing out and effectively showcasing your auto repair services to potential customers is crucial.

A comprehensive auto repair marketing strategy can help you achieve this goal. Here are some essential steps to take:

  • Build a professional website: A professional website optimized for search engines will help your auto repair shop appear in local search results and make a positive first impression on potential customers .
  • Claim your Google My Business listing: A Google My Business listing provides essential information to potential customers , including your hours of operation, customer reviews, and location. Claiming your listing will also help your auto repair business appear higher in local search results.
  • Use social media : Social media platforms are an excellent way to engage with your audience and promote your services. Creating a business page on Facebook and Instagram can help you reach new potential customers and stay connected with current customers .
  • Collect customer reviews: Customer reviews are a valuable marketing tool to help you establish trust and credibility with potential customers . Encourage satisfied customers to leave reviews on Yelp , Facebook and Google.

Remember that the key to a successful marketing plan is consistency, adaptability and a commitment to exceptional customer service. As you grow your local business , stay focused on understanding your customers’ needs and evolving your marketing approach to meet those needs. 

With dedication and perseverance, your automotive repair shop will stand out and enjoy long-term success.

Template for auto repair shop marketing plan

Developing a marketing plan for your auto repair shop can seem overwhelming, but it can be a simple and effective process with a suitable template. This template provides a guideline for creating your marketing plan , with key sections and considerations.

  • Briefly describe your auto repair shop , including its history and mission statement.
  • Outline the primary goals and objectives of your marketing plan .
  • Describe your target market , including demographics , location and vehicle types.
  • Analyze your local competition, identifying their strengths and weaknesses.
  • Identify industry trends and opportunities relevant to your auto repair shop .
  • List your auto repair shop ‘s strengths, weaknesses, opportunities, and threats.
  • Use the SWOT analysis to inform your marketing strategy and tactics.
  • Clearly define specific, measurable, attainable, relevant, and time-bound (SMART) goals for your marketing initiatives.
  • Examples of goals include increasing leads, website traffic, or sales.
  • Define your ideal customer, including demographics , geographic location, and interests.
  • Understand their pain points and needs related to auto repair services .
  • Based on your goals and target audience, outline the key marketing strategies and tactics you’ll use.
  • Examples include content marketing, search engine optimization , social media marketing , and email marketing .
  • Determine the budget required for implementing your marketing plan .
  • Identify the resources, tools and personnel needed to execute the marketing strategies and tactics.
  • Create a timeline for implementing your marketing strategies and tactics.
  • Assign deadlines and responsibilities to ensure timely execution.
  • Establish key performance indicators (KPIs) to measure the success of your marketing efforts .
  • Regularly review your marketing plan and adjust strategies and tactics based on performance data.

Investing time and effort into developing a thorough marketing plan using this template will set the stage for the success of your auto repair shop . Remember, the most effective marketing plans adapt and grow with your business. 

As you implement your strategies, always be prepared to analyze your results, learn from your experiences, and make the necessary adjustments to stay ahead of the competition. 

Start building your auto shop marketing strategy with Broadly

It’s time to start building your strategy with the help of Broadly.

Broadly’s suite of software services is designed to help small and medium-sized businesses, like auto repair shops , effectively market their services online. Here are just a few of the ways that Broadly can help you build and implement your marketing strategy :

  • Reviews: Broadly’s review management tools make it easy to collect and showcase customer reviews across multiple platforms, including Google, Yelp and Facebook. 
  • Websites: Broadly’s web design service makes it easy to create a professional, mobile-friendly website optimized for search engines.
  • Campaigns: Email marketing is a breeze with templates curated for the auto repair industry .
  • Messaging: Broadly’s messaging tools allow you to communicate with customers from your website, email, Google and Facebook Messenger in a consolidated Inbox.

Broadly’s software services suite allows you to streamline your marketing efforts and effectively promote your auto repair business online. 

Watch your online reputation transform with Broadly

Get more out of broadly., how to get the best facebook page reviews with examples, web reputation best practices for local service businesses, how to change a facebook page name for your business, how to get 5-star ratings on your facebook page, how long does a facebook review take to show up, how to remove facebook reviews, who can see my reviews on facebook.

Financial Model, Business Plan and Dashboard Templates - FinModelsLab

How To Write a Business Plan for Body Shop and Collision Repair in 9 Steps: Checklist

By henry sheykin, resources on body shop and collision repair.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Are you considering starting a body shop and collision repair business? With the automotive industry booming and more and more people investing in vehicles, now is the perfect time to enter the market. In fact, according to recent statistics, the global collision repair market is expected to reach a value of $199.2 billion by 2025 , growing at a compound annual growth rate of 2.2% .

To ensure your body shop and collision repair center stands out from the competition and attracts customers, it's crucial to have a well-thought-out business plan in place. In this blog post, we'll guide you through the 9 essential steps to creating a successful business plan for your body shop and collision repair center.

  • Conduct market research
  • Define your target audience
  • Analyze the competition
  • Choose a suitable location
  • Determine your business structure
  • Create a financial plan
  • Secure funding or investment
  • Develop a marketing strategy
  • Identify necessary equipment and supplies

By following these steps, you'll be well-prepared to establish a revolutionary body shop and collision repair center that offers seamless online appointment booking, on-site car rentals, and eco-friendly repair solutions. So, let's dive in and get started!

Conduct Market Research

Before starting a body shop and collision repair business, it is crucial to conduct thorough market research to gather essential insights and identify potential opportunities. This step helps you understand the demand for your services, evaluate the market size, and assess the competition.

During the market research phase, you should:

  • Evaluate the size of the local market and determine the potential customer base.
  • Analyze the latest trends and developments in the body shop and collision repair industry.
  • Identify the target market segments that are most likely to benefit from your services.
  • Assess the purchasing behavior and preferences of your target audience.
  • Investigate the average pricing and service offerings of existing competitors in your area.

Tips for conducting effective market research:

  • Utilize both primary and secondary research methods. Primary research involves gathering data firsthand through surveys, interviews, or focus groups. Secondary research involves analyzing existing market reports, industry publications, and online resources.
  • Stay up-to-date with emerging trends, technologies, and regulations in the body shop and collision repair industry.
  • Consider conducting a SWOT analysis – assessing your business's strengths, weaknesses, opportunities, and threats – to identify areas for improvement and strategies for success.

By conducting comprehensive market research, you will gain valuable insights that will shape your business plan and guide your decision-making process throughout the development of your body shop and collision repair center.

Define Your Target Audience

Defining your target audience is a crucial step in developing a successful business plan for a body shop and collision repair center. By identifying and understanding the specific needs, preferences, and characteristics of your target audience, you can tailor your services and marketing efforts to effectively reach and engage them.

When defining your target audience, consider the following factors:

  • Demographics: Determine the age, gender, income level, and other demographic attributes of your ideal customers. This information will help you understand their purchasing power and preferences.
  • Psychographics: Explore the motivations, interests, and lifestyles of your potential customers. This will help you create compelling marketing messages and opportunities for customer engagement.
  • Geographic location: Analyze the geographical area in which your body shop and collision repair center will operate. Consider the proximity to major highways, residential areas, and other local businesses to assess the potential demand.
  • Research existing customer data or conduct surveys to gather insights on your target audience.
  • Stay updated with industry trends and changes in consumer preferences to continuously adapt your target audience definition.
  • Consider segmenting your target audience into different customer profiles to offer personalized services and marketing strategies.

Once you have defined your target audience, ensure that all aspects of your business plan – from location selection to marketing messaging – are aligned with their needs and preferences. This will increase the chances of attracting and retaining loyal customers in the highly competitive body shop and collision repair industry.

Analyze The Competition

When starting a body shop and collision repair center, it is essential to thoroughly analyze the competition in your area. This analysis will provide valuable insights into the market landscape and help you identify ways to differentiate your business.

Here are some key steps to follow for a comprehensive competitive analysis:

  • Identify key competitors: Begin by identifying the main competitors in your target market. Look for other body shops and collision repair centers that offer similar services and cater to a similar customer base.
  • Evaluate their services and pricing: Take a closer look at the range of services offered by your competitors and examine how they price their services. This will help you determine how to position your business and whether there are any gaps in the market that you can exploit.
  • Assess their reputation and customer reviews: Research online reviews and customer feedback for the identified competitors. Pay attention to the strengths and weaknesses mentioned by customers, as this will give you insights into areas where you can excel or improve upon.
  • Observe their marketing strategies: Analyze how your competitors are promoting their services. Look at their online presence, social media activities, and advertising efforts. This analysis will help you identify effective marketing strategies and provide inspiration for your own campaigns.
  • Visit or contact competitors posing as a potential customer to understand their customer service approach and get a firsthand experience of their processes.
  • Keep an eye on any unique selling propositions (USPs) your competitors may have, and think about how you can differentiate your business by offering something equally compelling or even more innovative.
  • Consider conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to gain a deeper understanding of your competitors' position in the market.

By conducting a comprehensive analysis of the competition, you will be able to identify opportunities and challenges in the market. This knowledge will guide your business strategy and help you develop a unique value proposition that sets your body shop and collision repair center apart from the rest.

Choose A Suitable Location

Choosing the right location for your body shop and collision repair center is crucial for the success of your business. The location should be easily accessible to your target customers and provide sufficient space for your operations. Here are some important factors to consider when deciding on a suitable location:

  • Proximity to target market: Identify areas with a high concentration of potential customers, such as residential neighborhoods or commercial districts. Being close to your target market will increase customer convenience and potentially attract more business.
  • Visibility and accessibility: Ensure that your location has good visibility from nearby roads and is easily accessible for both customers and delivery vehicles. A convenient and visible location can help attract walk-in customers and increase awareness of your business.
  • Competition analysis: Assess the number and proximity of existing body shops and collision repair centers in the area. While some competition can be healthy, too many competitors in close proximity may make it challenging to capture a significant market share.
  • Cost and leasing terms: Evaluate the affordability and leasing terms of potential locations. Consider factors such as rent, utilities, and any additional costs associated with operating in a particular area. It's important to choose a location that aligns with your financial capabilities.
  • Zoning and permits: Confirm that the location you choose allows for automotive repair businesses and that you comply with all necessary zoning regulations and permits. Failure to do so may result in fines or other legal challenges.

Tips for Choosing a Suitable Location:

  • Consider conducting a feasibility study to evaluate the potential success of your business at different locations.
  • Research local market conditions and demographics to understand the demand for body shop and collision repair services in specific areas.
  • Visit potential locations during different times of the day to assess traffic flow and customer accessibility.
  • Connect with local business associations or networks to gather insights about the area and potential location options.
  • Consult with a commercial real estate professional to navigate leasing agreements and negotiate favorable terms.

Determine Your Business Structure

Determining the business structure for your body shop and collision repair center is a crucial step in shaping the legal and operational framework of your business. It will define how the business is owned, managed, and taxed.

One of the most common business structures for a body shop and collision repair center is a limited liability company (LLC) . An LLC provides personal liability protection for the owners while allowing for a flexible management and tax structure. It also offers simplicity in terms of paperwork and legal requirements.

Another option to consider is a sole proprietorship . This is a simpler structure where the business and the owner are considered a single entity. While it may seem easier to set up and operate, it does not provide personal liability protection. The owner is personally responsible for any liabilities or debts incurred by the business.

If you plan to have multiple owners or investors, a partnership or a corporation may be more suitable. A partnership allows for shared ownership and management responsibilities, while a corporation offers more formalized structures with clearly defined roles and responsibilities.

  • Consult with a business attorney or a legal professional to understand the pros and cons of each business structure and choose the one that aligns with your long-term goals and objectives.
  • Consider the potential growth and expansion of your body shop and collision repair center when deciding on the business structure. It may be beneficial to choose a structure that allows for scalability.
  • Research the licensing and registration requirements for each business structure in your specific location to ensure compliance with local laws and regulations.

Create A Financial Plan

Creating a comprehensive financial plan is crucial for the success of your body shop and collision repair business. This plan will help you determine the financial feasibility of your venture, outline your revenue streams, and estimate your expenses.

1. Estimate start-up costs: Begin by identifying all the initial costs associated with setting up your body shop and collision repair center. This may include expenses like leasing or buying a facility, purchasing equipment and supplies, hiring staff, and obtaining necessary licenses and insurance.

2. Project your revenue: Analyze your market research to develop sales projections. Consider factors such as the number of customers you can realistically attract, average repair costs, and the potential for repeat business. This will help you estimate your monthly and yearly revenue.

3. Determine expenses: List out all your expenses, including labor costs, rent or mortgage payments, utilities, marketing expenses, and overhead costs. Be realistic and thorough in your estimation.

4. Analyze cash flow: Determine when your revenue will come in and when your expenses will need to be paid. This will help you understand your monthly cash flow and identify any potential cash flow gaps.

5. Calculate profitability: Assess your projected revenue against your estimated expenses to determine if your body shop and collision repair center will be profitable. This will help you understand if your business idea is financially viable and if adjustments need to be made.

6. Seek professional advice: Consider working with an accountant or financial advisor who specializes in small businesses. They can offer valuable insights, help you refine your financial plan, and ensure that your business is on the right track.

By creating a detailed financial plan, you will have a clear understanding of the financial aspects of your body shop and collision repair center. It will serve as a roadmap for successfully managing your finances and making informed business decisions.

Secure Funding or Investment

Once you have created a solid business plan for your body shop and collision repair center, the next crucial step is to secure funding or investment to bring your vision to life. Without sufficient funds, it will be challenging to establish and grow your business.

To secure funding, you have several options to explore:

  • Personal Savings: Investing your own savings into the business is a common way to start. It demonstrates your commitment and confidence in the venture, which may attract other investors.
  • Bank Loans: Approach local banks or credit unions to inquire about business loans tailored for small businesses. Prepare a comprehensive loan proposal with detailed financial projections, collateral, and repayment plans.
  • Government Grants: Research and apply for government grants specifically designed for small businesses in the automotive industry. These grants can provide significant financial support and propel your business forward.
  • Angel Investors: Seek out angel investors who are passionate about the industry and may be willing to invest in your business. Prepare a compelling pitch that highlights the unique aspects of your body shop and collision repair center.
  • Partnerships: Consider partnering with someone who can contribute funds in exchange for a share of the business. This can be beneficial if you find a partner who brings expertise and resources to complement your skills.
  • Prepare a comprehensive and professional business plan to present to potential investors.
  • Highlight the unique features and advantages of your body shop and collision repair center.
  • Clearly outline how the funds will be used and how the investor will benefit.
  • Network with industry professionals and attend business conferences to connect with potential investors.
  • Consider crowdfunding platforms to reach a broader audience for investment opportunities.

Remember, securing funding or investment may take time and persistence. Be prepared for rejection and continue exploring different options until you find the right source of funding to help bring your business to life.

Develop A Marketing Strategy

Once you have defined your target audience and analyzed the competition, it's time to develop a marketing strategy that will effectively reach your potential customers and drive them to your revolutionary body shop and collision repair center. Here are some important steps to consider:

  • Identify your unique selling proposition (USP): Determine what sets your business apart from competitors and highlight this in your marketing materials. Whether it's your seamless online appointment booking system, on-site car rental service, or eco-friendly repair solutions, emphasize the value that customers will receive from choosing your body shop and collision repair center.
  • Create a strong online presence: In today's digital age, it is crucial to establish a strong online presence. Develop a professional website that highlights your services, expertise, and customer reviews. Utilize search engine optimization (SEO) techniques to improve your website's visibility in search engine results. Additionally, leverage social media platforms to engage with your target audience, share informative content, and promote special offers.
  • Offer exceptional customer service: Word-of-mouth referrals can be powerful for any business. Strive to deliver exceptional customer service at all times, ensuring your customers have a positive experience with your body shop and collision repair center. Train your staff to be knowledgeable, courteous, and attentive to customer needs. Encourage satisfied customers to leave reviews and testimonials, which can further enhance your reputation.
  • Utilize traditional marketing channels: While digital marketing strategies are essential, don't overlook the power of traditional marketing channels. Consider advertising in local newspapers, magazines, or radio stations to reach a wider audience. Participate in community events and distribute flyers, brochures, or business cards to generate awareness about your services.

Tips for Developing Your Marketing Strategy:

  • Identify key influencers or industry experts who can help promote your body shop and collision repair center through sponsored collaborations or partnerships.
  • Create compelling content such as blogs, videos, or infographics that educate and inform potential customers about the benefits of your services.
  • Offer special promotions or discounts to attract new customers and encourage repeat business.
  • Establish a referral program where satisfied customers receive incentives for referring new clients.

Identify Necessary Equipment And Supplies

Once you have defined your target audience, analyzed the competition, and determined your business structure, it's time to identify the necessary equipment and supplies for your body shop and collision repair center. This step is crucial as having the right tools and materials will ensure smooth operations and efficient service delivery.

1. Assess your service offerings: Start by evaluating the types of services your body shop and collision repair center will provide. This could include dent repairs, painting, frame straightening, or any other specialized services. Identifying your service offerings will help you determine the specific equipment and supplies needed.

2. Research industry standards: Stay updated with the latest industry standards and recommended equipment for body shops and collision repair centers. This will help you understand the equipment required to deliver high-quality repairs and ensure customer satisfaction.

3. Find reliable suppliers: Research and identify reputable suppliers for the equipment and supplies you need. Look for suppliers who specialize in automotive repair tools and materials. Consider factors like product quality, pricing, and customer support when selecting your suppliers.

4. Create a budget: Prepare a budget for acquiring the necessary equipment and supplies. Consider the overall cost, including upfront expenses, maintenance costs, and any additional accessories or parts required. Having a well-defined budget will help you make informed decisions during the purchasing process.

5. Prioritize essential equipment: Identify the key equipment that is crucial for delivering your services. This may include items like vehicle lifts, paint booths, dent repair tools, and diagnostic equipment. Prioritize the purchase of these essential pieces first to ensure your body shop can operate efficiently.

  • Invest in high-quality equipment to ensure durability and long-term reliability.
  • Consider leasing or financing options for expensive equipment to manage costs effectively.
  • Establish relationships with multiple suppliers to ensure a continuous supply of necessary materials and avoid any disruptions in service.

6. Stock up on supplies: In addition to equipment, make a comprehensive list of supplies required for day-to-day operations. This may include paints, primers, masking tapes, sandpapers, and various automotive repair parts. Ensure you have sufficient stock to meet the demands of your business.

7. Consider eco-friendly options: As an eco-friendly repair center, prioritize using environmentally-friendly products and supplies whenever possible. Research and identify suppliers who offer green alternatives for paints and other materials.

8. Ensure safety: Don't overlook the importance of safety equipment and protocols. Invest in safety gear such as gloves, goggles, and protective clothing for your team. Also, establish proper safety procedures and provide necessary training to avoid accidents and ensure a secure working environment.

9. Regular maintenance: Remember that equipment requires regular maintenance for optimal performance. Create a maintenance schedule and follow it diligently to extend the lifespan of your tools and prevent any unexpected breakdowns that could disrupt your business operations.

In conclusion, creating a successful business plan for a body shop and collision repair center requires careful research, analysis, and planning. By following these nine steps, you can lay a strong foundation for your business venture and ensure its long-term success. Remember to adapt your plan to fit the unique aspects of your revolutionary body shop, such as offering online appointment booking, on-site car rentals, and eco-friendly repair solutions. With a clearly defined target audience, a solid financial plan, and a well-executed marketing strategy, your body shop and collision repair center can thrive in a competitive market.

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

    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.

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    1. Executive summary The executive summary kicks off your auto repair shop business plan and provides an overview of what's to come. It should be clear, concise, and engaging enough to encourage people to read the rest of your business plan. While this section is a culmination of all your research, keep it brief and to the point.

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    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

  7. Auto Repair Business Plan Template [Updated 2024]

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    On the menu: Why do you need a business plan? What type of auto repair shop should I open? What do you need to create your auto repair shop business plan? What is the financial forecast for an auto repair shop? What does the written part of an auto repair shop business plan look like? What tool should I use to write my business plan?

  9. Auto Repair Shop Business Plan Example

    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 ...

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    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.

  11. Auto Repair Shop: get a solid business plan (example)

    The key points of the business plan for an auto repair shop What's the business model of an auto repair shop? Business model of an auto repair shop. An auto repair shop's business model revolves around offering repair, maintenance, or diagnostic services for vehicles. Revenue is generated through service fees charged for labor and parts.

  12. Auto Repair Shop Business Plan: How to Write One Successfully

    Key activities - methods your business will use for competitive advantage. Key resources - e.g., staff, capital, intellectual property, networks, organizations. Value proposition - your company's unique value in the market. Customer relationships - how customers will interact with your business. Cost structure - your key business ...

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    Company: Describes the ownership and history of your business. Products and Services: Reviews what you sell and what you're offering your customers. Market Analysis: Describes your customers and the size of your target market. Strategy and Implementation: Provides the details of how you plan on building the business.

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  15. How to Write Auto Repair Shop Business Plan? Guide & Template

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  16. How to Write an Auto Repair Shop Business Plan

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  17. Write Business Plan for Auto Repair Shop in 9 Steps

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    Start My Business Plan Auto Fix & Services will be a registered and licensed auto repair shop in Austin.

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  20. Auto Repair Shop Business Plan [Sample Template]

    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.

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    How do I write a business plan for an auto repair shop? A well-written business plan is crucial to the success of any business, including an auto body repair shop. A business plan outlines goals, strategies, and financial projections. Here are some critical steps to follow when writing an auto repair shop business plan:

  23. Write Business Plan for Body Shop & Collision Repair in 9 Steps

    How To Write a Business Plan for Body Shop and Collision Repair in 9 Steps: Checklist October 5, 2023 By Henry Sheykin Resources On Body Shop and Collision Repair Financial Model Business Plan Value Proposition One-Page Business Plan SWOT Canvas Are you considering starting a body shop and collision repair business?

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