How to Write a Business Plan for a Collision Auto Shop

A collision auto shop can be a rewarding business.

Starting a collision auto shop can be a challenging and rewarding way to make a living.
Whether you are using it to seek financing, determine the feasibility of your idea, or act as a daily operating guide, a business plan is an essential ingredient to your success.
There are many variables you must consider in terms of equipment, employees, services and contracts.
A business plan will help point you in the right direction.

Things You'll Need

• Paper and pen or pencil or a computer
• Detailed information about the business you want to start

Instructions

1. Write a mission statement for your collision shop.
   These are the personal goals and objectives you hope your business will achieve.
   Include projected sales and details such as how many contracts you wish to have and how many cars you want to service each week.

2. Write an overview of the entire business.
   Are you opening a franchise or independent shop? Will you be looking for financing, or funding it yourself? What types of services will you be offering?
   Some examples could include frame straightening, custom paint, dent and scratch removal, suspension repair and window replacement.

3. Write a competitor analysis.
   Identify any collision or repair shops within a 25-mile radius. Prepare a detailed profile of each competitor, and how your shop will be different or how your shop will compete with them. Include information about how you will provide better work or services than they do, and what they might do to compete against you.
   This report is known as a "Strengths, Weaknesses, Opportunities and Threats" (or SWOT) analysis.
   It should also include information on your competitors' strengths and weaknesses, opportunities you have to gain market share, and any threats their shops may pose to your business.
   Be specific and as thorough as possible.

4. Create your marketing plan.
   Outline the specific services and products you will offer your customers. Include any different packages you hope to offer, your price list, and different marketing tactics to bring in new business.
   Some examples could be referral programs, memberships or free throw-ins with certain services like free oil changes or scratch removal.

5. Create an operating plan for your shop. Go into detail about how your organization will be structured internally. Include management structure, number of mechanics on staff, their obligations, duties and wages. Also include what equipment you will need to use on a daily basis to operate.

6. Create your financial plan for the business.
   First, describe the current financial state of the collision shop. If you are using your business plan for financing, detail what type of financing you are trying to get, and for how much.
   Estimate the shop's projected earnings over the next two to four years.

7. Write the executive summary.
   Highlight all of the main points of the business plan. Include your projections, marketing strategies, management structure, products and services and funding.

References

• Elements of a Business Plan
• Start Up Biz Hub: How to Start Auto Body Shop