Auto Repair Shop Business Plan Template

Auto Repair Shop Business Plan Template

If you want to start an Auto Repair Shop or expand your current Auto Repair Shop, you need a business plan.

The following Auto Repair Shop business plan template gives you the key elements to include in a winning auto repair business plan. An automotive business plan is a plan to start and/or grow your business.

You can download our Auto Repair Shop business plan template (including a full, customizable financial model) to your computer here.

 

Auto Repair Shop Business Plan Example

I. Executive Summary

Business Overview

[Company Name] is a local auto repair shop in [Location] that provides top-quality auto repair and maintenance services to its customers. It caters to companies and individuals who require a fast and professional auto repair service.

[Company name] is a proud member of the Automotive Service Association (ASA) and the National Institute for Automotive Service Excellence (ASE). All of our auto mechanics are ASE-Certified Technicians. We are constantly training so that our auto mechanics can stay up-to-date on all the latest developments in the fast-changing world of auto repair technology.

Products Served

[Company Name] will provide its clients with the following services:

• Oil and Filter Change
• Tire Rotation and Services
• Brake Repair Service
• Engine Services
• Tire Change Service
• Transmission Services
• Scheduled Maintenance

Customer Focus

[Company Name] will primarily serve the residents within a 25-mile radius of our location. The demographics of these customers are as follows:

• 47,824 residents
• Average income of $80,500
• 40% married
• 55% in Management/Professional occupations
• 65% of residents are homeowners
• Median age: 35 years

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder] has been in the auto repair industry for the past 20 years. He has spent much of his career working with [company] where he oversaw the operations for different auto repair companies and automotive shops. There, he learned sales, customer service and automotive maintenance processes.

[Company name] will also employ an experienced assistant manager to manage the day-to-day operations.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
• Our location is in a high-wealth area where customers own automobiles and can afford regular auto repair services.
• The management team has a track record of success in the auto repair services business.
• The auto repair business has proven to be a successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $350,000 of debt capital to open its auto repair business. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Location design/build: $150,000
• Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a local auto repair shop in [Location]. We provide top-quality auto repair and maintenance services to our customers. We cater to companies and individuals who require a fast and professional auto repair service.

[Company name] is a proud member of the Automotive Service Association (ASA) and the National Institute for Automotive Service Excellence (ASE). All of our auto mechanics are ASE-Certified Technicians. We are constantly training so that our auto mechanics can stay up-to-date on all the latest developments in the fast-changing world of auto repair technology.

[Company Name]’s History

[Company Name] was founded by [Founder’s Name] in [month, year]. [Founder] was a car mechanic in [Location] for 10 years. When he and his family moved to [Company’s Location], he started repairing cars for their friends within their neighborhood. By word of mouth and because of his great and fast service, he became known to other neighborhoods in [Location]. That is when he decided to establish [Company].

Since incorporation, the Company has achieved the following milestones:

• Found a business location
• Developed the company’s name, logo and website located at [website]
• Determined equipment and fixture requirements
• Began recruiting key employees

[Company Name]’s Products/Services

[Company Name] will be able to provide its clients with the following services:

• Oil and Filter Change
• Tire Rotation and Services
• Brake Repair Service
• Engine Services
• Tire Change Service
• Transmission Services
• Scheduled Maintenance

 

III. Industry Analysis

The Auto Repair industry has experienced steady growth over the past five years. The number of vehicles on the road expanded, along with the average age of the vehicle fleet. As a result, demand from consumers and businesses rose. Additionally, per capita disposable income levels grew during much of the period, enabling more consumers to enlist industry operators to complete the necessary repairs and maintenance for their vehicles.

Over the next five years, the industry is anticipated to continue to grow. The key industry drivers include:

– Average age of vehicle fleet: As a vehicle’s age increases, it is more likely to require serious expert repairs. Older vehicles require more frequent repairs that are often extensive and expensive. As a result, an older vehicle fleet increases demand for Auto Repair services.

– Number of motor vehicle registrations: The number of registered vehicles correlates with demand for repairs and maintenance. As the number of registered vehicles increases, demand for automotive repair and maintenance services also grows.

-Per capita disposable income: The level of per capita disposable income has mixed effects on industry demand. If disposable income levels rise too quickly, demand for industry services generally declines because consumers are able to purchase new automobiles instead of spending money on auto repair. Conversely, moderate increases in disposable income enable consumers to pay for auto repair and maintenance work that would have otherwise been unaffordable.

– Total vehicle miles: The more a vehicle is driven, the more likely it will require repair and maintenance services due to wear and tear. Consequently, cars that are used more typically require more frequent and expensive auto mechanic services.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the residents of [company location] and the immediately surrounding areas in a 20-mile radius.

The area we serve is populated mostly by the middle and upper class and lead busy lifestyles; as a result, they have both the need for auto repair and maintenance services and the means to pay for it.

The precise demographics of this market are as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

• Local automobile owners: This segment comprises loyal locals who patronize our auto repair services, especially for regular car maintenance.
• Businesses: Since the [Company Name] is located near big business establishments, the company will target them to offer maintenance services while they work.

 

V. Competitive Analysis

Direct & Indirect Competitors

Jeff’s Auto
Established in 1987, Jeff’s Auto is a family-run automotive repair shop specializing in domestic cars. Jeff’s Auto is fully equipped with the latest modern equipment and technologies. Today the business employs more than 65, and operates service centers in the Northwest. All 8 locations offer a free shuttle service, free Wi-Fi, coffee and comfortable waiting areas.
Services offered by Jeff’s Auto include:

• Alternator Repair
• Diagnostics
• Preventive Maintenance
• Brake Repair
• Suspension and Alignment
• Emissions System
• Engine and Transmission
• Cooling System

Vehicle Center

Established in 2003, Vehicle Center specializes in vehicle repairs, high-performance work, collision and restoration work, wheel and tire services, detailing services, and vehicle sales. The service center specializes in Mercedes-Benz, BMW, Porsche, Audi, VW, and other luxury brands, but its collision center works with all insurance companies to repair all makes and models.
Services offered by Vehicle Center include:

• Alloy Wheel Repair
• Detailing
• General Maintenance Center
• Collision Center

Motor Works

Established in 1997, Motor Works specializes in automotive service, repair, and customization. The shop was founded by Dave Fingster, who has had a lifelong passion for cars. The company has 9 locations in the area, each offering the following services:

• Oil Changes
• Factory Service Intervals
• Brake Services
• Alignments
• Tune-Ups
• Check Engine Light Diagnostics
• Maintenance
• Tire Mounting & Balancing
• Coolant Flushes
• Detailing
• Custom Modifications

Competitive Pricing

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with clients and answer their questions.
• Management: [Founder’s Name] has been extremely successful working in the auto repair business and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications and his mechanics’ certifications assures the quality of service that they provide their customers.
• Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.

 

VI. Marketing Plan

You can download our Auto Repair Shop business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company name] brand will focus on the Company’s unique value proposition:

• Convenient location
• Client-focused auto repair services, that treat each client individually and get the job done right the first time
• Service built on long-term relationships
• Comfortable, customer-focused environment

Promotions Strategy

[Company Name] expects its target market to be individuals working and/or living within a 20-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:

Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.

Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.

Commuter Advertising
We will drive attention to [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.

Customer Loyalty Programs
[Company name] will create a customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for people to avail our services.

 

VII. Operations Plan

Functional Roles

[Company name] will be open Monday-Saturday.

The Company intends to employ [X] mechanics and [A] cashiers during peak hours and [Y] mechanics and [B] cashiers during off-peak hours. [Company name] anticipates having [Z] customers on a weekly basis.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Auto Mechanics
• Maintenance personnel
• Customer service/cash register functions

Administrative Functions

• General & administrative functions including marketing, bookkeeping, etc.
• Hiring and training staff

Milestones

[Company Name]’s long term goal is to become the best auto repair service company in the [city] area. We seek to do this by ensuring customer satisfaction and developing a loyal and successful clientele.

The following are a series of steps that will lead to this long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder] has been in the auto repair industry for the past 20 years. He has spent much of his career working with [company] in [Old location], where he oversaw the operations for different auto repair companies and automotive shops. There, he learned sales, customer service and automotive maintenance processes.

[Company name] will also employ an experienced assistant manager to manage the automotive maintenance operations. He will be an experienced operations manager who will be trained in other important company operations by [Founder’s Name] so he will be able to take over in absence of [Founder’s Name].

Hiring Plan

In order to launch the business, we will hire the following employees:

• Sales and customer service:2 full-time employees to manage the day-to-day sales and customer service
• Auto mechanics: 5 full-time, experienced mechanics
• Administrative Assistant: Must be organized, with good phone skills, facility with numbers for bookkeeping, and good writing skills.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from auto repair and maintenance services.

The major costs of [Company Name] include:

• Salaries
• Lease on business location
• Equipment maintenance

Moreover, ongoing marketing expenditures are also notable cost mechanics for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $350,000 of debt capital to open its auto repair business. The capital will be used for funding capital expenditures and location build-out, salaries, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Headquarters design/build: $150,000
• Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement