Did you know that there are more than 128,000 auto repair shops in the United States of America? Starting an auto repair shop is a great way to get started as a small business owner, but there are a number of steps that you need to take before you open your doors for business. You’ll need a baseline knowledge of common car problems and common car repairs, as well as the right tools.
Still, there is no reason why you can’t move forward with starting a business as a car repair shop with the help of some startup tips. The hardest part is always taking the first step. The good news is that you’re not on this journey alone.
You’ve come to the perfect place to learn all about the steps to take when you’re starting an auto repair shop. Keep reading this article to learn more.
Write a Business Plan
Writing a business plan is essential to get the ball rolling for your car repair shop. Your business plan will help you to organize each and every aspect of starting your car repair shop. You’ll think of things that will set your business apart from competitors in the area and come up with ideas that will boost your relationship with your customers.
It is also where you determine what your startup costs will come to when you are starting a business in car repair. Each and every bank will require you to have a solid business plan before they’ll move forward with helping you finance your startup car repair business.
Choose a Name
The next step will allow you to get a bit creative and have some fun. Try to come up with a name that is clever but also related to the services that your auto repair shop provides. Once you’ve put together a list of names that you like for your business you’ll want to go online to make sure that your name isn’t already taken.
To make sure that you’re not picking a name that is already in use, check out your state’s web page for the Secretary of State. It will have a list of each registered business in the state which you can look over to make sure that your name is in the clear. If it is not taken but you’re not ready to register your business then you should consider paying to reserve it.
Choose Your Entity
There are a number of options to consider when you’re choosing your business entity. Do you want to operate your car repair shop as a sole proprietorship, a partnership, a corporation, or an LLC? You need to understand the benefits and drawbacks of each of these options before you settle on one so you can keep up with industry leaders like those at https://www.tekmetric.com/.
Pick a Location
Part of your business plan should be evaluating strong areas where you can put your car repair shop that will attract a lot of traffic. Having a location that sees a lot of traffic will provide a greater amount of visibility for your auto repair shop which means that you’ll reach a lot of potential customers.
Keep in mind that getting a prime location will cost you more when it comes to leasing or purchasing a location to operate at. Many auto repair shops start by operating out of a small garage until they’re successful enough to start scaling their business operations up.
Get Business Licenses and Permits
You’ll also need to make sure that you’re getting all of the proper business licenses and permits that you’ll need to operate in your town and state. There aren’t any licenses required for providing auto repairs but there are general permits that businesses need to operate legally in a state.
One thing to keep in mind is that the EPA is also involved with auto repairs, so you’ll need to make sure that you’re compliant with the disposal processes when it comes to old engine oil that your shop is handling. You should also do your best to get an Automotive Service Excellence certification if you want to improve your odds of getting financing from lenders for your business.
Get Financing
Now that you’re in possession of your licenses and permits, the next step is securing the financing for starting an auto repair shop. It isn’t enough to have the necessary skills and tools to fix common car problems. Having financing is key to getting your auto repair shop up and running.
Finding funding is difficult, but having your ducks in a row will show potential lenders that you’re serious and that you’re a sound investment for them. Your best bet is to go for a Small Business Administration loan for your auto shop. Keep in mind that you’ll need to have a good credit score and credit history to get favorable loan terms for your auto repair shop.
