How to Open My Own Auto Shop
If you've always been skilled at repairing automobiles, you also might dream of fixing cars for a living---perhaps even opening your own auto shop. With the right preparation and planning, you can make your dream a reality. Like all retail businesses, you'll need clever marketing, start-up capital, business permits and licenses. Most importantly, however, you need a solid business plan to map out your profit potential. Your local Small Business Development Center or Small Business Administration office can help you identify these business fundamentals. Beyond that, however, there are specific considerations for auto shops.
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Instructions
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Get outside help. Instead of trying to wear all the hats in your business, focus on what you do best. Consult experts for the rest. Ask your colleagues for referrals to experts such as an accountant to help you with bookkeeping and properly filing your taxes, an attorney to help with determining the proper legal structure of your business, and a graphic designer to create marketing materials and a website. Get these people on the board of directors of your corporation, if possible. Take the time to set up your business properly before you open your doors so you don't later get overwhelmed with responsibility.
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Choose your location based on the range of services you will provide. If your auto shop will focus primarily on selling auto parts and accessories and only provide a few basic services, such as oil changes and brake replacements, you can open your shop in most commercial spaces. However, if you will offer full auto-repair services, the space must be zoned for heavy commercial use. Check with your city on the proper zoning requirements and necessary business permits and licenses. In either case, choose a location with high visibility, such as a busy intersection.
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Stock your shop with a range of automotive and motorcycle accessories. This might include roadside emergency kits, gas cans and funnels, car mats, steering wheel covers, window shades, and a full line of car-care products. If your budget is constrained, start small with just a few essentials and broaden your selection as sales increase. Buy the items at wholesale from automotive suppliers, and mark them up to sell at retail. The profit will supplement your shop's bottom line during slow periods and provide the customer a place to browse while waiting for her car.
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Hire quality employees. Your auto shop will only be as good as the people working in it. You can't do all of the repairs on your own, no matter how skilled you are at auto repair, so focus on hiring employees who will deliver quality work consistently. Set the expectations for quality, honesty, ethics and customer service during the recruiting, screening and hiring process. Train your new employees well and offer them ongoing support, training and incentives for quality work. Follow up by phone or email with clients after they've received service to gauge their satisfaction, and follow up with employees as needed.
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Get clients. In the auto shop business, it's word-of-mouth that will help you get and retain clients. Turn to your network of colleagues, auto dealers and local networking groups such as the Chamber of Commerce. Ask them to try your service and to refer business your way---perhaps with referral incentives such as a free oil change for every referral. Start an incentive program such as every 10th oil change free or 10 percent off every fifth service. Before long, satisfied clients will return for service and refer their friends and family your way.
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