How to Operate an Automotive Collision Shop
With more than 250 million registered vehicles on the road, according to 2007 Bureau of Transportation Statistics, there are bound to be many accidents across the United States each day. To repair these vehicles and return them to the road, owners often take them to auto collision shops where experts make the repairs. Anyone has the opportunity to start their own business in this niche field by learning how to operate an automotive collision shop.
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Instructions
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Be knowledgeable. Attend an educational program that teaches the skills a person needs to repair damaged vehicles or learn through on-the-job training at an automotive collision repair shop. Get experience working in a shop completing repairs on actual customer vehicles before branching out on your own. Consider taking business classes for the knowledge and insight that will help you start and operate your own automotive collision shop.
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Write a business plan. View a guide to writing business plans from the website of the U.S. Small Business Administration (SBA), and use it when drafting your own business plan for your automotive collision repair shop. Assess the strengths and weaknesses in operating your own shop and what threats and opportunities you may face from the intended location of the shop and your competition. Ensure that you include plans for financing, marketing, and staffing your business in the written business plan.
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Obtain funding. Speak with a loan officer at a local bank or credit union to learn about commercial and business loans available to help you fund the start-up of your automotive collision repair shop. Submit an application for a loan along with a copy of your business plan to the loan officer. Check with the SBA to learn if you qualify for a guaranteed loan, or take on an investment partner if you don't have the credit to get a loan on your own.
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Register your business. Obtain an employer identification number (EIN) from the Internal Revenue Service (IRS) by visiting their website and completing the online form to register your business at the federal level. Complete the forms to register to collect and pay sales tax with your state and local department of revenues if sales tax is collected in your area. Make sure that you have a business license from your city government to operate an auto collision shop by completing a license application and paying a small licensing fee at your local city hall.
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Find a facility. Seek out a commercial real estate agent to help you find a facility perfect for housing your automotive collision repair shop. Weigh the pros and cons of renting versus buying the facility beforehand, and make a decision based on the amount of your start-up funds and the plans you have for your business. Search for real estate or commercial rental properties that are pre-existing shops or garages since these offer most of the things you need in your facility.
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Purchase tools. Make a list of the supplies you need to repair damage to vehicles and return them to their original condition. Obtain the equipment and tools from a supplier. Common tools used in auto collision repair that you need for your shop include sand blasters, paint guns and dent pullers. Remember to also purchase safety gear such as goggles, gloves and a respirator used for when you repaint cars.
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Hire staff. Find people trained in repairing wrecked or damaged vehicles, and add them to your staff as your auto collision repair business grows. Consider hiring a receptionist or administrative assistant to handle phones, scheduling, inquiries and customers visiting your location since this allows you to focus on fixing vehicles without constantly being interrupted. Use a freelance bookkeeper to manage your finances and complete the payroll for your organization if you or your office person are unfamiliar with how to complete these tasks.
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Promote your business. Advertise your automotive collision repair shop to the general public by placing ads on radio and television as well as in newspapers. Put together a website and market it using social networking sites such as Twitter and Facebook. Network with tow truck companies, and encourage them to provide referrals to your business when they pick up a vehicle from an accident where the driver is unsure of where they want their damaged vehicle taken.
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- Photo Credit Coche accidentado image by quicolopez from Fotolia.com
