Mobile Mechanic Business Plan Template [Updated 2024]

/ 842 0

Mobile Mechanic Business Plan Template

If you want to start a successful mobile mechanic business or expand your current mobile mechanic business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of mobile mechanic business plans.

The following mobile mechanic business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.
 

Mobile Mechanic Business Plan Example

I. Executive Summary

Business Overview

[Company Name] is a new mobile mechanic service that operates in [Location]. At [Company Name], we understand that car repairs and routine services are not always convenient for the customer. These services are often needed at inconvenient times and require the customer to spend hours at a repair shop before a mechanic even looks at their vehicle.

[Founder’s Name] founded [Company Name] to address this problem. Whether it is a routine service or an emergency repair, we bring the tools to the customer so we can fix the problem quickly, more affordably, and at the customer’s requested location. We aim to provide the best mobile mechanic services in [Location] and become the #1 mobile auto repair fleet in the next five years.

Products Served

[Company Name] will provide a variety of routine and emergency mechanic services to individual automobile owners and businesses. Unlike traditional repair shops, we bring the tools to the customer’s location. We can travel to their home, a parking lot, or even the side of a road to assist them. Some of the services we provide include:

  • Oil and Filter Change
  • Flat Tires
  • Lockouts
  • Engine Tune-Up
  • Air Filter Replacement
  • Fluid Replacement
  • Spark Plugs
  • A/C Recharge
  • Check Engine Light Diagnosis
  • Electric Window Repair
  • Battery Charge
  • Brake Pad Replacements
  • Tire Rotations and Alignment

We request that routine and non-emergency services be booked ahead of time through our website or by phone. Urgent and emergency services can be requested by phone. Our hours of operation are Monday through Friday 8:00 am to 6:00 pm, but we will expand these hours once there is enough demand to hire additional mechanics.

Customer Focus

[Company Name] will serve the residents located within a 20-mile radius of our location. The demographics of these customers are as follows:

  • 62,129 residents
  • Average income of $70,100
  • 40% married
  • 55% in Mgt./Professional occupations
  • 50% 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’s Name] has been in the auto repair industry for the past 20 years. He has spent much of his career working for a local repair shop where he worked as a manager and oversaw several mechanics. He saw that many customers preferred mobile mechanic services as they were far more convenient. So after several decades of auto repair experience, he has decided to apply his skills to a new venture and launch a mobile mechanic service.

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 the surcharges that come with convenient mobile mechanic services.
  • The management team has a track record of success in the auto repair business.
  • The mobile mechanic business has proven to be a successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $150,000 of debt capital to open the mobile mechanic business. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital.
Specifically, these funds will be used as follows:

  • Vehicle purchase and maintenance: $75,000
  • Tools and supplies: $25,000
  • Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new mobile mechanic service that operates in [Location]. At [Company Name], we understand that car repairs and routine services are not always convenient for the customer. These services are often needed at inconvenient times and require the customer to spend hours at a repair shop before a mechanic even looks at their vehicle. [Founder’s Name] founded [Company Name] to address this problem. Whether it is a routine service or an emergency repair, we bring the tools to the customer so we can fix the problem quickly, more affordably, and at the customer’s requested location. We aim to provide the best mobile mechanic services in [Location] and become the #1 mobile auto repair fleet in the next five years.

[Company Name] provides a long list of services to ensure our customers’ cars are in perfect order. These include routine services, such as oil changes, fluid refills, A/C recharges, and tire rotations. We can also work on more urgent or emergency situations, such as checking engine light diagnostics, repairing flat tires, and helping with lockouts. Whatever our customers need, we have the tools and expertise to assist.

[Company Name] is founded by [Founder’s Name] who has been a mechanic for [X] years. After several decades of a successful career, he is ready to apply his skill set to a business that will be more convenient for his clientele. After months of research and preparation, [Founder’s Name] is ready to launch his mobile mechanic service.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] on [Date of Incorporation]. He has been running the business from his home and personal vehicle but has found a potential commercial space to lease. Once the lease is approved, all operations will be run from there. He will also purchase a vehicle that will be specifically used for the business.

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 provide customers with numerous routine and emergency services in the convenience of their current location. Whether a customer is at home or stranded on the side of the road, we can commute to their location and repair their vehicle in no time.

[Company Name] provides a long list of services that include routine maintenance, common problems, and emergency/urgent repairs. Some of the common and routine services we offer include servicing brake pads, replacing spark plugs, replacing oil and other fluids, and tire rotations. For customers experiencing more urgent issues, we can help with flat tires, charging batteries, engine light diagnostics, lockouts, and more.

The exact list of services we provide will change based on demand and availability. Customers can find the full current list of provided services on our website.

 

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
The mobile mechanic industry has exploded in growth in recent years. While the general automotive repair industry has been strong, the demand for convenient services has increased sharply. Customers are fed up with taking hours out of their day to wait at a repair shop for routine services. As a result, small mobile mechanic businesses are popping up all around the country, meeting the demand for quick and convenient vehicle repairs.

The mobile mechanic industry is quite fragmented since most businesses in this industry are small and only employ one or a few mechanics. There are very few large chains or major players in this market. This means that mobile mechanic businesses may have more diverse competition than a traditional auto repair shop might have.

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

  • 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.
  • Increase in vehicle costs: Inflation has hit the auto industry hard. Millions of new and used car prices have increased greatly making it difficult for consumers to buy new cars as often as they would like. This means that many consumers are more willing to invest in good repair services than purchase a new car.
  • Aging vehicles: Since consumers are holding onto their vehicles longer, the average age of vehicles is rising. Vehicles encounter more problems as they age, and repairs become more extensive and expensive. Both traditional and mobile mechanic services can expect to work on more old cars than usual over the next several years.

 

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

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

The area we serve is populated mostly by the middle and upper class who lead busy lifestyles; as a result, they have both the need for mobile mechanic services and the means to pay the surcharges for the convenience of our services.

Customer Segmentation

The company will primarily target the following customer segments:

  • Local automobile owners: Our largest customer segment will include local automobile owners who need routine or emergency services at their homes or while traveling around town.
  • Businesses: Since the [Company Name] is located near big business establishments, the company will target them to offer mobile maintenance services while they work. We can also offer services for fleets.
  • Commuters: Vehicles more often than not break down while the owner is commuting to or from work. Therefore, we expect many emergency calls will come from commuters who need to get their vehicle serviced right away. This means we also expect our busiest work times to be during rush hour.

 

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following delivery service companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Jeff’s Mobile Mechanic Service
Established in 2018, Jeff’s Mobile Mechanic Service is a family-run mobile automotive repair service that specializes in providing routine services to domestic cars. They can help with common simple services such as oil changes, tire rotations, and other maintenance services recommended per mileage milestone. The business employs five mechanics, all within Jeff’s family, who can drive anywhere within 20 miles of [Location] to provide routine services. Jeff’s Mobile Mechanic Service does not provide emergency services and requires all appointments to be booked ahead of time.

Oak Street Roadside Services
Since 2015, Oak Street Roadside Services has been an essential mobile roadside service for the southside of [Location]. Oak Street Roadside Services provides numerous common emergency and urgent roadside services such as flat tire repair, battery recharges, gas fills, and towing. While Oak Street Roadside Services is a popular service, it does not provide routine maintenance or repairs. Therefore, we expect them to only be a minor competitor.

Mobile Motor Works
Mobile Motor Works was one of the first mobile mechanics on the [Location] scene. For two decades, Mobile Motor Works has offered a wide suite of mechanic services including routine services, urgent problems, and major repairs. They have a fleet of 15 mechanics who can provide services all around the [Location] metro area. With great marketing and word-of-mouth referrals, Mobile Motor Works has remained the #1 mobile mechanic service in the region since it launched. Out of all of our competition, Mobile Motor Works offers the most services and most affordable pricing, making them our most difficult competitor.

Competitive Advantage

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

  • Client-oriented service: [Company Name] will focus on client-oriented service that ensures clients are satisfied and eager to contact us again for additional services.
  • Management: [Founder’s Name] has been extremely successful working in the auto repair industry 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 assure the quality of service that he provides his customers.
  • Relationships: Having lived in the community for 10 years, [Founder’s Name] knows many of the local leaders, newspapers, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial customer base.

 

VI. Marketing Plan

You can download our 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 mechanics that treat each customer 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. [Company Name] promotions strategy to reach these individuals includes:

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat services, which will be quite advantageous in the long run.

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its offerings in popular local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews to increase audience awareness and loyalty.

Website
[Company Name] will develop a professional website where people can learn about the company’s services and the industries it delivers for. The website will utilize SEO to increase traffic and to ensure that the company’s website will appear at the top of search engine results.

Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to our business and the services we provide.

Customer Loyalty Programs
[Company Name] will create a customer loyalty program to keep its best customers 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.

Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value for our convenient mobile mechanic services. Each customer can expect to receive quality services at a more affordable price than what they pay at pricey automotive repair shops.

 

VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

To execute [Company Name]’s business model, the company needs to perform the following functions:

Service Functions

  • Book appointments
  • Provide mechanic services
  • Bill customers for services received
  • Provide customer service

Administrative Functions

  • Bookkeeping
  • Marketing
  • Other general administrative tasks

Milestones

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

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been in the auto repair industry for the past 20 years. He has spent much of his career working for a local repair shop where he worked as a manager and oversaw several mechanics. He saw that many customers preferred mobile mechanic services as they were far more convenient. So after several decades of auto repair experience, he has decided to apply his skills to a new venture and launch a mobile mechanic service.

Though he has never run a mobile mechanic business himself, he has worked in the auto repair industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also has the skills and expertise to handle most auto maintenance requests and repairs.

Hiring Plan

[Founder’s Name] will be the President of [Company Name] and the only mechanic. He will hire an Administrative Assistant to manage the administrative tasks and schedule appointments with customers. As [Company Name] expands, Founder’s Name] will hire additional mechanics to keep up with demand.

 

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from charging customers for the mechanic services provided.

The major costs of [Company Name] include vehicle maintenance costs, tool and supply purchases, equipment maintenance, and ongoing marketing expenditures.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $150,000 of debt capital to open the mobile mechanic business. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital.
Specifically, these funds will be used as follows:

  • Vehicle purchase and maintenance: $75,000
  • Tools and supplies: $25,000
  • Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.