business plan of mobile mechanic

Mobile Auto Mechanic Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Are you about starting a mobile mechanic company? If YES, here is a complete sample mobile mechanic business plan template & feasibility report you can use for FREE .

Since the invention of automobile, a whole lot of business opportunities have been created around the automobile industry and the mobile auto mechanic repair business is one of them. All over the world, car repair is one business that never goes into extinction.

This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable.

As long as people use their cars and trucks regularly, there will always be reasons for them to visit an auto workshop or hire the services of mobile mechanics if indeed they want these vehicles to continue to ply the roads. This is because you can never rule out wear and tear when a machine is in use.

People call auto mechanics for different reasons; it could be for routine servicing, major repair works, or for refurbishing their cars. For whatever reasons; mobile auto mechanic business will always translate to money for the owner of the repair garage.

In some climes, you would be required to own a license to start this type of business; if it applies to you, be sure to get all the trainings and documentation needed. This is so that getting issued an operating license from the licensing office would be a lot easier.

If indeed you want to operate a corporate mobile auto mechanic repair business, you must go all the way to get it registered with the corporate affairs department of your state or country.

Although you can operate an unregistered mobile auto mechanic business in some countries, operating a registered one is the best way to go because it would position you to do business with corporate entities and it will enable your clients to trust you to come to their homes.

Now that you have decided to start your own mobile auto mechanic repair business, it is important that you sit back to create plans on how to raise startup capital, how to attract clients, how to generate profits and how to run the business.

Below is a sample mobile auto mechanic repair business plan template that will help you successfully write yours with little or no stress;

A Sample Mobile Auto Mechanic Business Plan Template

1. industry overview.

The Auto Mechanics industry (mobile mechanic repair services inclusive) is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur who is a trained mechanic can successfully start.

All over the world, car repair is one business that never goes into extinction. This is because daily, fleets of cars are being added to the garages of people and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car repair would become inevitable.

The Auto Mechanics industry of which mobile auto mechanic repair services is a part of provides mechanical and electrical repair and maintenance work for cars, trucks, vans and trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

It is important to state that the auto repair industry does not include car dealerships, auto parts retailers or gas stations that provide industry services. So also, the industry services do not include auto bodywork, car washes, oil changes or air conditioning repair

The mobile auto mechanic repair business is an open line of business hence a low level of market share concentration. Even though large automobile companies operate in the industry, revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller auto repair shops cum mobile auto mechanic services accounts for a large percent of the players in the auto repair services industry.

The Auto Mechanics industry of which mobile auto mechanic repair services is a part of is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Sweden, Switzerland, Australia and Canada et al.

Statistics has it that in the united states of America alone, there are about 254,970registered and licensed (accredited) Auto Mechanics garages (mobile inclusive) scattered all across the United States responsible for employing about 562,530 people and the industry rakes in a whooping sum of $64 billion annually.

The industry is projected to grow at 3.2 percent annual growth within 2011 and 2016. It is important to state that there is no establishment in this industry that has a lion market share. The Auto Mechanics industry has grown steadily over the last five years and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Over and above, the mobile auto mechanic repair business is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business and of course make good money from the industry.

2. Executive Summary

Thomas Gusto Mobile Mechanic Services®, LLC is a U.S based and licensed mobile mechanic repair garage. We have been able to secure all the necessary permits to operate in Miami Beach, Florida – United States of America and we will have active presence in other cities all across Florida such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We are a mobile mechanic repair services company that is set to compete in the highly competitive and fragmented auto repair and maintenance services industry not only in Miami Beach – Florida, but also throughout the United States market because we intend expanding our services across key cities in the United States of America.

Thomas Gusto Mobile Mechanic Services®, LLC will offers mobile auto mechanic repair services such as repairing and replacing automotive engines, performing general automotive repairs, repairing trucks, repairing and replacing automotive exhaust systems, repairing and replacing mufflers, repairing automotive transmissions, repairing automotive brakes, performing automotive electric repairs, performing automotive wheel alignments, and repairing automotive radiators for cars, trucks, vans and trailers et al.

Our business goal is to become one of the leading mobile auto mechanic services company in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

We have some of the latest auto mechanic tools and equipment that can easily be moved from one point to another. Our workers are going to be selected from a pool of certified and highly experienced auto repair mechanics and technicians in and around Miami Beach – Florida and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading mobile mechanic repair companies, auto repair garages and services centers in the United States and throughout the globe.

At Thomas Gusto Mobile Mechanic Services®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Thomas Gusto Mobile Mechanic Services®, LLC is private registered business that is owned by Engr. Thomas Gusto an auto mechanical engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his immediate family members.

Thomas Gusto has well over 15 years of hands on experience working for some of the leading brands in the Auto repair industry in the United States of America.

3. Our Products and Services

Thomas Gusto Mobile Mechanic Services®, LLC is established with the aim of maximizing profits in the mobile auto mechanic repair line of business.

We want to compete favorably with the leading auto repair companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every repairs, services and maintenance jobs carried out by us or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Thomas Gusto Mobile Mechanic Services®, LLC is not just accepted in Miami Beach – Florida but also in other cities Florida and in the United States of America where we intend opening our garages.

We are in the mobile mechanic repairs line of business to make profits and we will ensure that we do all that is permitted by the law in the United States of America to achieve our aims and ambitions of setting up the business Our products and services are listed below;

• Repairing and replacing automotive engines
• Performing general automotive repairs
• Powertrain repair services
• Brake repair services
• Scheduled and preventive repair and maintenance services
• Repairing trucks
• Repairing and replacing automotive exhaust systems
• Repairing and replacing mufflers
• Repairing automotive transmissions
• Repairing automotive brakes
• Performing automotive electric repairs
• Performing automotive wheel alignments
• Repairing automotive radiators
• Wheel alignment and repair services
• Other repair and maintenance services

N.B : Please note that all the services listed above will be carried out in any location (home or offices premises et al) as requested by our clients

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class one stop mobile auto mechanic services business whose services and brand will not only be accepted in Miami Beach – Florida but also in other cities in the United States of America.
• Our mission is to provide professional mobile auto repair, maintenance services and other auto repair related services that will assist businesses, individuals, households and non-profit organizations who owns automobiles in ensuring that their automobiles are always in good shape.
• We want to build a mobile auto mechanic business that can favorably compete with other leading brands in the automobile maintenance and repair services industry.

Our Business Structure

Thomas Gusto Mobile Mechanic Services®, LLC is a mobile auto mechanic repair and maintenance business that intend starting small in Miami Beach – Florida, but hope to grow big in order to compete favorably with leading mobile mechanic repair business, automobile repair garages and automobile servicing centers in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Human Resources and Admin Manager

• Mechanic Supervisor
• Sales and Marketing Executive

Mobile Auto Mechanics

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Mechanic Supervisor:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the mobile auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for Thomas Gusto Mobile Mechanic Services®, LLC
• Serves as internal auditor for Thomas Gusto Mobile Mechanic Services®, LLC.
• Repairs and replaces automotive engines
• Performs general automotive repairs
• Handles Powertrain repair services
• Handles Brake repair services
• Repairs trucks
• Repairs and replacing automotive exhaust systems
• Repairs and replacing mufflers
• Repairs automotive transmissions
• Repairs automotive brakes
• Performs automotive electric repairs
• Performs automotive wheel alignments
• Repairs automotive radiators
• Handles wheel alignment and repair services
• Handles other repair and maintenance services
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels / documents for the organization
• Distributes mails in the organization
• Handles any other duties as assigned the line manager

6. SWOT Analysis

Thomas Gusto Mobile Mechanic Services®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mobile auto mechanic business that can favorably compete in the highly competitive auto maintenance and repair service industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Thomas Gusto Mobile Mechanic Services®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Thomas Gusto Mobile Mechanic Services®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience automobile maintenance and repair mechanics, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Aside from the synergy that exist in our carefully selected workforce, our services will be guided by best practices in the industry and we are well equipped with the right tools to carry auto repair, services and maintenance jobs in any location within our perimeter of operations.

As a new mobile mechanic repair and maintenance business in Miami Beach – Florida, it might take some time for our mobile mechanic repair and maintenance business to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive auto maintenance and repair services industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the auto maintenance and repair services industry is massive considering the number of individuals and corporate organizations who owns automobile in the United States and who would really appreciate home services.

As a mobile mechanic repair and maintenance garage, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new auto repair and maintenance garage in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One good thing about the Auto Repair industry is that, it is an open industry hence a low level of market share concentration. Even though large automobile companies operate in the industry, revenue is also spread among thousands of small auto garages and even mobile auto repair businesses.

As a matter of fact, no single auto repair shop or auto company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why mobile mechanic businesses and smaller auto repair shops accounts for a large percent of the players in the auto repair services industry.

It is a known trend in developed world and even developing world to find steady growth in the Auto Repair Services Industry, as a matter of fact, the Auto Repair Services industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for mobile auto repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto repair and maintenance services over do-it-yourself repair.

Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their automobiles.

Lastly, it is now becoming trendy to find mechanics, automobile engineers and technicians who do not have the required finance to rent a shop opt for mobile auto repair garage business; they are known to move around especially on highways with their complete tool box looking for broken down cars, trucks and vans et al to fix.

8. Our Target Market

Before starting our mobile mechanic repair and maintenance garage in Miami Beach – Florida, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who would need the services of a mobile mechanic repair and maintenance garages especially haulage companies and transport companies.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Manufacturers and Distributors
• Transport Companies
• Haulage Companies
• Individuals and households
• School with transportation system for students

Our competitive advantage

Surviving in the business world as a mobile mechanic repair and maintenance company requires more than, your expertise, knowing how to deliver standard auto repairs and maintenance jobs but also how to network with key people that matters; decision makers that can decide who will get an auto repair and maintenance contract.

Without a shadow of doubt, there are loads of big time investors (Automobile manufacturing companies), that have a stake in the automobile maintenance and repair services industry; but one thing is certain, there is room big enough to accommodate both the big automobile repair, servicing and maintenance garages and the small ones as well and even a mobile mechanic company.

What smaller mobile mechanic maintenance, servicing and repair garages need to do to survive in the industry is to concentrate on providing automobile repair, maintenance and servicing to households, individuals, haulage companies, small transport companies, schools, hospitals and hotels et al before bidding for big auto repair, servicing and maintenance contracts from large corporations ( franchise from automobile manufacturing companies to run their service centers ) and government agencies (Public Works Department et al).

We are quite aware that to be highly competitive in the automobile maintenance, servicing and repair industry means that you are not only expected to be able to deliver consistent and highly reliable auto repair, servicing and maintenance jobs, but you must be able to meet set targets.

No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in the power of our team; our workforce.

We have a team of certified and highly trained and experience automobile maintenance and repair mechanics, a team with excellent qualifications and experience in various niche areas in the automobile maintenance and repair service industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups mobile mechanic companies, automobile maintenance, servicing and repair businesses in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Thomas Gusto Mobile Mechanic Services®, LLC is established with the aim of maximizing profits in the auto repair, maintenance and servicing industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Thomas Gusto Mobile Mechanic Services®, LLC will generate income by going to any locations within our areas of operations as requested by our clients by offering the following auto maintenance, servicing and repair related services;

• Power train repair services

10. Sales Forecast

One thing is certain, there would always be haulage companies, transportation companies, corporate organization, government agencies, households and individual who would need to hire the services of mobile auto mechanic repair services providers to fix to fix their cars, vans, and trucks et al.

We are well positioned to take on the available market in the mobile mechanic maintenance, servicing and repair services line of business and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our company to enviable heights.

We have been able to critically examine the mobile auto maintenance, servicing and repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami Beach – Florida.

Below is the sales projection for Thomas Gusto Mobile Mechanic Services®, LLC. It is based on the location of our business and of course the wide range of mobile auto repair, servicing and maintenance services and target market;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $ 750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same auto maintenance, servicing and repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales strategy

We are mindful of the fact that there is stiffer competition in the automobile maintenance, servicing and repair industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the automobile maintenance, servicing and repair industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Thomas Gusto Mobile Mechanic Services®, LLC.

Our corporate goal is to grow Thomas Gusto Mobile Mechanic Services®, LLC to become one of the top 10 mobile mechanic maintenance, servicing and repair garage brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Miami Beach – Florida but also in other cities in the United States of America where we intend marketing our services.

Thomas Gusto Mobile Mechanic Services®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our mobile mechanic maintenance, servicing and repair garage by sending introductory letters alongside our brochure to transport companies, haulage companies, individuals who own automobiles, households, corporate organizations, religious organizations and key stake holders.
• Promptness in bidding for auto repair, servicing and maintenance contract from the government, haulage companies, transport companies and other cooperate organizations
• Advertise our business in relevant business automobile magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industries with the aim of networking and marketing our business

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Miami Beach – Florida and other cities in the United States of America where we intend opening marketing our services which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise Thomas Gusto Mobile Mechanic Services®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic locations all around Miami Beach – Florida
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Thomas Gusto Mobile Mechanic Services®, LLC and the services we offer
• List our auto repair, servicing and maintenance business in local directories / yellow pages
• Advertise our mobile mechanic repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Thomas Gusto Mobile Mechanic Services®, LLC we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would steadily hire our services for routine servicing, maintenance and repairs. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Thomas Gusto Mobile Mechanic Services®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Thomas Gusto Mobile Mechanic Services®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for all our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a mobile mechanic repair and maintenance garage; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Thomas Gusto Mobile Mechanic Services®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• The amount required to purchase the needed trucks, mobile tool box and repair equipment – $50,000
• The amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• The amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard mobile mechanic repair, maintenance and servicing garage in the United States of America. Please note that the salary of workers for one month is part of the budget.

Generating Funds / Startup Capital for Thomas Gusto Mobile Mechanic Services®, LLC

Thomas Gusto Mobile Mechanic Services®, LLC is a business that will be owned and managed by Engr. Thomas Gusto and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $50,000 ( Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Thomas Gusto Mobile Mechanic Services®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our mobile auto maintenance, servicing and repair services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Thomas Gusto Mobile Mechanic Services®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and servicing tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed tool box, truck, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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How to Start a Profitable Mobile Mechanic Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a mobile mechanic business plan., 3. develop a mobile mechanic brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for mobile mechanic., 6. open a business bank account and secure funding as needed., 7. set pricing for mobile mechanic services., 8. acquire mobile mechanic equipment and supplies., 9. obtain business insurance for mobile mechanic, if required., 10. begin marketing your mobile mechanic services., 11. expand your mobile mechanic business..

Before venturing into a mobile mechanic business, it's crucial to understand the market you're entering. A thorough market analysis will provide insights into industry trends, customer needs, and competitive landscape, guiding your business strategy for success. Here are key steps to conduct an effective market analysis:

• Research the automotive repair industry to identify current trends, such as the rise in electric vehicle maintenance or the demand for eco-friendly repair options.
• Analyze the target demographics for your services, including location, vehicle types, and income levels, to better understand your potential customer base.
• Assess the competition by identifying other mobile mechanics and traditional auto repair shops in your area of operation. Note their pricing, services offered, and market positioning.
• Understand customer pain points, such as convenience, pricing, or trust issues with existing repair options, by conducting surveys or reviewing online feedback.
• Examine the regulatory environment for any licenses, permits, or insurance requirements specific to mobile mechanic operations in your region.

Are mobile mechanic businesses profitable?

Yes, mobile mechanic businesses can be profitable. Depending on the size of the business and the services offered, the level of profit can vary. To maximize profits, mobile mechanics should focus on providing competitive rates, efficient service, and marketing to increase customer awareness and loyalty.

Creating a comprehensive business plan is a crucial step in establishing a successful mobile mechanic business. It serves as a roadmap for your company's financial health, goals, and strategies. Below are the key components you should include in your draft:

• Executive Summary: Capture the essence of your business, including your mission statement, services offered, and basic financial projections.
• Company Description: Detail the specifics of your mobile mechanic business, your target market, and what sets you apart from the competition.
• Market Analysis: Research the auto repair industry, local demand, customer demographics, and analyze your competitors.
• Organization and Management: Describe the structure of your business and the expertise of your team members.
• Services: List and explain the repair and maintenance services you plan to offer to your clients.
• Marketing and Sales Strategy: Outline how you intend to attract and retain customers, including pricing, promotions, and sales tactics.
• Funding Request: If you're seeking financing, specify the amount needed and how it will be used.
• Financial Projections: Provide an estimate of your startup costs, projected income, cash flow, and a break-even analysis.

How does a mobile mechanic business make money?

Mobile mechanics make money by providing a variety of services to their clients, such as oil changes, brake repairs, tire rotations, and engine trouble shoots. They can charge either flat fees for services or per hour rates depending on the type of job they are doing. Additionally, mobile mechanics can offer preventative maintenance packages that are more cost effective for clients. One example of a target audience for a mobile mechanic business would be commercial truck fleets looking to save money by getting their vehicles serviced off-site instead of in a shop.

Creating a strong brand for your mobile mechanic business is crucial to standing out in a competitive market and building trust with customers. Your brand embodies your business identity and communicates your values, professionalism, and expertise in the field of auto repair. Consider the following steps to develop a persuasive and memorable brand:

• Define Your Unique Value Proposition: Clearly articulate what sets your service apart from others. Is it your speed, affordability, customer service, or specialized skills?
• Choose a Memorable Name and Logo: Your brand name should resonate with your target audience and reflect your services, while your logo should be eye-catching and easily recognizable at a glance.
• Select a Color Scheme and Typography: Pick colors and fonts that reflect the personality of your brand—professional, friendly, reliable—and ensure they are consistent across all marketing materials.
• Create a Slogan or Tagline: A catchy slogan can help people remember your brand and what you stand for. Make it short, memorable, and relevant to your mobile mechanic services.
• Build an Online Presence: Develop a professional website and maintain active social media profiles to showcase your brand, share customer testimonials, and provide valuable content related to auto maintenance and repair.
• Consistently Deliver on Your Brand Promise: Ensure that every customer interaction reflects your brand values and commitment to quality service to build a strong, loyal customer base.

How to come up with a name for your mobile mechanic business?

When coming up with a name for your mobile mechanic business, think about something that will stand out from the competition. Brainstorm several ideas that are unique and memorable, and make sure the name is easy to spell and pronounce. Consider incorporating words such as "cars," "trucks," or "automotive" into the name to help customers easily identify the services you offer. You can also consider playing around with a catchy phrase that ties in your services. After you have some ideas, research them online to ensure there isn’t another business with a similar name. Once you have chosen a name, register it with the state and get trademark protection.

Starting a mobile mechanic business requires not only technical know-how but also legal savvy. Step 4 in your entrepreneurial journey is to formalize your business registration, which will lay the groundwork for legal operations and financial management. Follow these essential steps to ensure your business is set up correctly from a legal standpoint:

• Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best suits your needs and provides the appropriate level of personal liability protection and tax benefits.
• Register your business name with the appropriate state authorities, ensuring it is unique and meets all state naming requirements.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Apply for any required local and state business licenses and permits, which can vary depending on your location and the services you offer.
• Make sure to get adequate insurance, such as general liability and commercial auto insurance, to protect your mobile mechanic business from potential claims or accidents.
• Register for state and local taxes to ensure compliance with sales, payroll, and income tax requirements.

Resources to help get you started:

Explore crucial resources designed specifically for mobile mechanic entrepreneurs aiming to stay abreast of market trends, optimize operations, and foster business growth:

• Auto Repair Industry Analysis Reports: Comprehensive examinations of the auto repair sector trends and forecasts (Link unavailable).
• Mobile Tech RX: An app offering business management tools for auto repair and detailing professionals ( Mobile Tech RX ).
• Automotive Service Association: Offers insights, news, and networking opportunities for those in the auto repair industry ( Automotive Service Association ).
• Auto Care Association: Provides market research, educational resources, and advocacy for auto care professionals ( Auto Care Association ).
• Ratchet+Wrench: A magazine offering business strategies, operational tips, and technical advice for auto repair shop owners ( Ratchet+Wrench ).

Starting a mobile mechanic business requires careful attention to legal requirements to ensure your operations are above board. Acquiring the necessary licenses and permits is a crucial step that will vary depending on your location and the services you provide. Below is a guide to help you navigate this process:

• Research Local Regulations: Check with your city or county clerk's office to understand local business licensing requirements. You may need a general business license to operate.
• Obtain a Business License: Apply for a business license through the appropriate local or state agency. This license legitimizes your business and is typically required for tax purposes.
• Automotive Repair License: Some jurisdictions require mechanics to have a specific auto repair license. Look into your state's Department of Consumer Affairs or similar entity to see if this applies to you.
• Specialized Permits: If you're performing specific services, like HVAC repair or electrical work, you might need additional permits. Check the requirements for each service you offer.
• Zoning and Parking Permits: Since you're operating a mobile service, ensure you have the correct permits for parking and operating in different areas, especially if you have a designated location for your administrative work.
• Environmental Regulations: Comply with the Environmental Protection Agency (EPA) regulations regarding waste disposal and air quality, if applicable to your operations.
• Insurance: While not a permit or license, having the proper insurance is essential for protecting your business from liability and is often required for certain licenses.

What licenses and permits are needed to run a mobile mechanic business?

In order to run a mobile mechanic business, you may need any combination of the following licenses and permits, depending on local regulations: business license, business tax registration, seller's permit/resale certificate, emission testing certificate, vehicle inspection certification, hazardous materials certification, driver's license, hazardous waste management permits.

Securing your financial foundation is crucial when starting a mobile mechanic business. Opening a business bank account will help you manage your finances professionally and separate personal and business expenses. If your initial investment isn't enough, you may need to secure additional funding to cover startup costs and ensure smooth operation.

• Choose the right bank: Research banks to find one that offers favorable terms for small businesses, such as low fees, online banking, and good customer service.
• Prepare the required documents: You'll typically need your business registration documents, EIN, and personal identification to open a business bank account.
• Explore funding options: Consider various funding sources such as small business loans, lines of credit, SBA loans, or even crowdfunding platforms tailored for startups.
• Create a detailed business plan: A solid business plan can increase your chances of securing a loan by demonstrating the viability and financial projections of your mobile mechanic business.
• Consider equipment financing: If you need expensive tools or a vehicle, look into equipment financing options that can spread the cost over time.
• Budget for operating expenses: Ensure you secure enough funding to cover not just startup costs but also several months of operating expenses while the business gains traction.

Establishing competitive and fair pricing for your mobile mechanic services is crucial to attract customers and ensure the sustainability of your business. Here are several factors to consider when setting your prices:

• Cost Analysis: Calculate all costs involved, including parts, labor, travel, and overhead expenses, to determine the minimum price you need to charge to break even and make a profit.
• Market Rates: Research what competitors are charging for similar services in your area to ensure your rates are competitive. Adjust your pricing to reflect your level of expertise, speed, and quality of service.
• Service Complexity: Offer tiered pricing based on the complexity and time required for different services. Basic maintenance can have a standard rate, while more complex repairs may be priced on a case-by-case basis.
• Value-Based Pricing: Consider the value you're providing to the customer, such as convenience and personalized service, which can justify higher pricing compared to traditional garages.
• Discounts and Promotions: Incorporate discounts for repeat customers or bundled services to encourage customer loyalty and increase the average transaction value.
• Transparent Quotations: Provide clear and itemized quotations to customers before commencing work to build trust and avoid disputes over pricing.

What does it cost to start a mobile mechanic business?

Initiating a mobile mechanic business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $33500 for launching such an business. Please note, not all of these costs may be necessary to start up your mobile mechanic business.

Initiating a mobile mechanic business necessitates meticulous selection of tools and equipment, ensuring that you're equipped to handle a wide range of automotive issues on the go. Before hitting the road, it's crucial to invest in quality supplies that will enable you to provide exceptional service to your clients. Here are some essentials to consider for your mobile mechanic kit:

• Basic hand tools: Wrenches, ratchets, sockets, screwdrivers, pliers, hammers, and a multimeter.
• Power tools: Cordless impact wrenches, drills, and a portable air compressor.
• Diagnostic equipment: OBD-II scanner, multimeter, and a diagnostic laptop with the necessary software.
• Specialty tools: Torque wrench, brake caliper tools, oil filter wrench, and a spring compressor.
• Repair manuals: Access to vehicle-specific repair guides or a subscription to an online service manual database.
• Parts and supplies: Common replacement parts such as belts, hoses, fuses, and a variety of fasteners.
• Portable lighting: LED work lights and headlamps for visibility in low-light conditions.
• Safety equipment: Gloves, goggles, and a first aid kit for personal protection.
• Mobile storage: A well-organized van or truck equipped with shelving, racks, and secure toolboxes.

List of software, tools and supplies needed to start a mobile mechanic business:

1. Set of tools: $500-$2000+ (depending on the number and quality of tools)

2. Scanner tool: $200-$600

3. Electronic diagnostic equipment: $250-$500

4. Shop equipment: $500-1500 (depending on the type of shop equipment needed)

5. Storage container: $50-$100+ (depending on size)

6. Spare parts and fluids for repair work: $200-400+ (prices will vary depending on the make and model of car needing repairs)

7. Computer system for records, invoicing, and ordering: $1000+

8. Mobile software for scheduling, customer service, accounting, and payroll: $50 -$100 per month

9. Vehicle diagnostic software: $100 -$200

10. Advertising materials such as flyers, business cards, vehicle signage, website development/maintenance: Varies widely depending on the scope of materials desired.

Acquiring the right insurance is a critical step in safeguarding your mobile mechanic business and ensuring its long-term success. It protects you from potential liabilities and helps maintain a trustworthy reputation with your customers. Here are some essential guidelines to help you obtain the appropriate business insurance:

• Research different types of insurance policies including general liability, commercial auto, and tools/equipment coverage to determine which ones suit your business needs.
• Contact multiple insurance providers to compare quotes and coverage options. Be sure to discuss your specific business activities to get tailored advice on necessary coverages.
• Consider a business owner's policy (BOP), which combines various types of coverage into a single package often at a reduced cost.
• Ensure that you fully understand the terms, conditions, and exclusions of the insurance policy before making a commitment.
• Review and reassess your insurance coverage annually or whenever there are significant changes in your business operations or assets.
• Keep all insurance documents accessible and provide proof of insurance to clients if requested.

Once you've set up your mobile mechanic business, it's time to get the word out and attract customers. A strategic marketing approach can help you reach potential clients and build your brand. Here are some practical steps to kickstart your marketing efforts:

• Develop a Strong Online Presence: Create a professional website and maintain active social media profiles to engage with your audience and showcase your services.
• Local SEO: Optimize your website for local search engine results to ensure your business appears when potential clients search for mobile mechanic services in your area.
• Offer Promotions: Attract new customers with introductory offers or discounts for referrals to create a buzz and encourage people to try your services.
• Networking: Join local business networks and automotive clubs to connect with potential clients and partners who can refer business to you.
• Vehicle Branding: Use your service vehicle as a mobile billboard with clear branding and contact information to advertise as you travel around town.
• Customer Reviews: Encourage satisfied customers to leave positive reviews online, which can serve as powerful word-of-mouth marketing.
• Partnerships: Partner with local businesses, such as auto parts stores or car dealerships, to create referral programs and expand your reach.

Once your mobile mechanic business is up and running, it's important to consider expansion to increase your customer base, services, and revenue. To ensure sustainable growth, you should focus on strategic planning that encompasses various aspects of your business. Here are some tips to help you expand effectively:

• Invest in marketing strategies to reach a broader audience, such as social media advertising, SEO for your website, and partnerships with local businesses.
• Consider diversifying your services to include specialized repairs or maintenance for different types of vehicles or machinery.
• Explore the option of hiring additional skilled mechanics to handle an increased workload and to provide service in a wider geographical area.
• Invest in additional tools and diagnostic equipment to enhance service offerings and efficiency.
• Implement a referral program to encourage your satisfied customers to spread the word about your business.
• Seek feedback from clients and use it to improve your services and customer experience continually.
• Regularly evaluate your business operations and finances to identify areas for improvement and make informed decisions about scaling up.

Create Your Corporation

How to Build a Successful Mobile Mechanic Business: A Step-by-Step Guide

Learn how to start a profitable mobile mechanic business in 8 simple steps. This comprehensive guide will show you how to get your business up and running, find customers, and grow into a successful mobile auto repair company.

Have you always had a knack for fixing cars and dreamed of being your own boss? Starting a mobile mechanic business could be a great way to turn your passion into a thriving enterprise. As more people lead busy lives, the demand for convenient auto repair services that come to you continues to grow. If you have the skills and motivation to build a successful mobile mechanic operation, the rewards can be very fulfilling, both personally and financially. In this guide, we'll walk you through the essential steps to get started: how to develop a business plan, build your customer base, price your services, equip your mobile workshop, hire quality staff if needed, market your new company, and ultimately, take your business to the next level. The path to becoming a successful mobile mechanic entrepreneur isn't always easy, but for those with the determination to see it through, the destination can be very rewarding.

The Mobile Mechanic Market

The mobile mechanic industry serves a wide range of customers, from individual vehicle owners to large commercial fleets. As a mobile mechanic, your target audience will typically be local vehicle owners within a certain radius of your service area. While some mobile mechanics do focus on high-end or luxury vehicles, most provide general repair and maintenance services for standard passenger cars and light trucks. The mobile mechanic model is appealing for many customers because of the convenience - you come to them, saving them the time and hassle of taking a vehicle into a traditional repair shop. For fleet operators, mobile mechanics can help minimize downtime by servicing vehicles on-site. The broader automotive repair industry is a large, stable market, and the mobile segment continues to grow at a steady pace as more consumers opt for services that save them time and add convenience.

Your Service Offering

As a mobile mechanic, your core service is performing automobile repairs and maintenance at your customers' locations instead of in a traditional garage. To stand out, focus on providing high-quality, personalized service with a friendly, convenient experience. Some ways to differentiate your business include: •Offering emergency roadside assistance and towing in addition to standard services. This can help build customer loyalty and word-of-mouth referrals. •Specializing in a particular vehicle make or model to become an expert. For example, you might focus specifically on hybrid vehicles or luxury brands. •Providing additional perks like free vehicle inspections, oil change reminders, or discounts for senior citizens and fleet customers. •Using high-tech tools and software to thoroughly diagnose issues, estimate repair costs, and manage customer records and appointments efficiently. •Hiring experienced, professional technicians and training them to deliver top-notch customer service in addition to quality repairs. To develop your service, start by determining what types of repairs and maintenance you want to offer based on your experience and skills. Then acquire the necessary tools, equipment, software, and supplies to perform those services in a mobile setting. Create service packages and pricing that provide value to your customers while generating a good profit margin for your business. Focus on building a loyal customer base through prompt, reliable service and word-of-mouth marketing before expanding into new service areas or hiring additional technicians.

Economics and Finances

As with any business, the financial aspects of running a mobile mechanic operation are extremely important to understand and plan for. Your two major costs will be the supplies and parts needed to perform repairs and maintenance, known as the cost of goods sold (COGS), and the overhead costs to operate your business. To determine your COGS, analyze the types of services you want to provide and estimate the cost of the necessary supplies, parts, and materials. Factor in additional costs for waste and spoilage. Your COGS will likely be 30-50% of your total revenue. Price your services at a level that covers your COGS and leaves room for a good profit margin after accounting for overhead expenses. Overhead costs for a mobile mechanic business include: •Vehicle costs like a service truck, fuel, maintenance, and insurance •Tools, equipment, software, and diagnostic devices •Certifications and licensing fees •Marketing expenses to attract new customers •Payroll costs if you have employees •General administrative costs such as accounting, legal, rent, utilities, etc. To price your services competitively while earning a profit, determine your total overhead costs and required profit margin. Then work backwards to establish a minimum charge rate for your services that covers both your overhead and cost of goods. You can charge higher rates for emergency calls, night/weekend service, or specialized repairs. Offer discounts and package deals to increase customer loyalty.

Marketing Your Mobile Mechanic Business

Effective marketing is key to building a loyal customer base and a thriving mobile mechanic operation. Some of the best ways to market your business include: •Search Engine Optimization (SEO) - Optimize your website and online listings to rank higher in search results for terms like "mobile mechanic" and "auto repair" in your area. This can drive significant traffic and new customers to your business. •Social Media Marketing - Create profiles for your business on Facebook, Instagram, and Google My Business. Post regularly about your services, share photos and videos, run contests and promotions, and engage with your followers. Social media is a great way to raise brand awareness and connect with potential customers. •Online Reviews - Ask happy customers to leave reviews on sites like Google, Yelp, and Facebook. Positive reviews help build trust and credibility, and they rank highly in local search results. Offer incentives like discounts for customers who leave a review. •Direct Mail - Send postcards, flyers, or brochures promoting your business to vehicle owners in your service area. Include coupons and special offers to motivate people to use your services. •Referral Programs - Offer existing customers incentives like discounts or gift cards for referring new clients to your business. Word-of-mouth referrals are one of the most effective ways to gain new customers. •Local Sponsorships - Sponsoring youth sports teams, charity events, or community organizations is an excellent way to raise brand awareness and goodwill in your area. Make sure to promote your sponsorship on your website and social media platforms. •Online Listings - Create free listings for your business on local directories and review sites such as Yelp, Google My Business, Bing Places for Business, and Facebook Marketplace. Complete your profiles thoroughly with photos, service information, and positive reviews. Local listings rank well in search and help new customers find your business.

Sales Strategies and Processes

To build a steady stream of new customers and revenue for your mobile mechanic business, focus on the following sales strategies and processes: •Offer first-time customer discounts and specials to encourage people to try your services. Provide high-quality work and a great experience to turn them into repeat clients. •Upsell additional services when performing repairs and maintenance. For example, suggest new brakes or filters if the current ones are worn. Bundle related services into package deals at a lower overall price. •Ask happy customers to provide a review and referral. Let them know you appreciate referrals and offer an incentive for anyone they refer who becomes a customer. •Build relationships with local auto parts stores, car washes, vehicle fleets, and dealerships. Offer them discounts or commissions to refer customers to your business. Drop off your business cards and brochures for their customers. •Attend local events like car shows, community festivals, and networking meetings to spread the word about your mobile mechanic service. Bring promotional items like t-shirts, keychains, and coupons to give away. •Call or visit local vehicle owners to introduce your business and schedule service calls. Focus on neighborhoods close to where you will be working each day for maximum efficiency. •Provide fast, accurate estimates for needed repairs before performing any work. Review the estimate with the customer and get their approval to proceed with the repairs. This builds trust and avoids confusion over final charges. •Accept multiple payment methods including cash, credit/debit cards, and online payments. Offer financing options for larger repair bills. Make paying for your services as quick, easy, and convenient as possible for customers. •Follow up with customers after service calls to ensure their vehicle is working properly and see if they need any additional repairs or maintenance. Thank them for their business and ask if they know anyone else who may need your services.

Operations and Execution

To operate a successful mobile mechanic business, focus on the following key areas: •Streamline your processes to maximize efficiency. Plan service routes in a logical order based on location. Stock your service vehicle with common parts and supplies so you can complete most repairs on the spot. •Provide prompt, high-quality service. Respond to calls within a few hours and fix vehicles properly the first time. Double check all work before leaving the job site. Your professionalism and workmanship are the foundations of your business. •Use software and apps to handle scheduling, dispatching, invoicing, and record keeping. Managing operations digitally reduces errors and saves time. Choose programs that can be used remotely via mobile devices for maximum convenience. •Hire qualified technicians if expanding into a multi-vehicle operation. Conduct background checks, verify certifications, and provide ongoing training. Maintain a consistent level of service quality across all employees. •Obtain the proper licenses and permits to operate legally. Requirements vary in different areas but typically include a business license or permit, occupational licenses for technicians, and permits for any signage. Stay up to date with all licensing and permit renewals. •Build a professional brand. Invest in a well-designed website, professional photography for your site and social media, embroidered uniforms, and signage for your service vehicle. A polished, reputable brand instills confidence in your customers and helps your business stand out. •Continue learning and improving your craft. Keep up with changes in vehicle technology, tools, and repair techniques through ongoing training and education. Staying up to date with industry best practices will make you a better mechanic and business owner. •Provide great customer service. Make sure all customer interactions are positive and professional. Address complaints promptly and courteously. Seek regular feedback from your customers on how you can improve your services. Customer satisfaction and loyalty should be top priorities for your business.

Legal Considerations

Before starting a mobile mechanic business, research the legal requirements in your city and state. You will typically need a business license or permit, as well as proper licensing and certifications for yourself and any technicians you employ. There may be zoning regulations regarding operating a vehicle service business from your home or in commercial areas. You should also review environmental regulations regarding handling and disposing of automotive chemicals and waste products. Check with your insurance provider about commercial auto, liability, and other policies to properly insure your business vehicles, employees, customers, and equipment. You may need additional permits or licenses to tow customer vehicles. Make sure to comply with all regulations regarding customer data and privacy as well. Consult an attorney to understand the specific laws that will apply to your unique business model and service area. Failure to obtain proper licensing and follow regulations can result in legal trouble, fines, or even force you out of business. Do thorough research upfront to ensure your mobile mechanic operation will be fully compliant with all legal requirements.

Starting a mobile mechanic business can be extremely rewarding if you have the skills and determination to build a thriving operation. Identify your target market, develop a professional brand, and implement effective marketing strategies to establish a loyal customer base. Focus on providing prompt, high-quality service at a fair price. Streamline your processes, use technology to improve efficiency, and continue expanding your knowledge of the latest automotive repair techniques. With hard work and persistence, you can grow your mobile mechanic business into a successful company that saves customers time and hassle while fulfilling your dream of being an entrepreneur. Follow the steps in this guide, but also let your passion for the work guide you. The road to success is rarely straightforward, so be flexible and open to new opportunities along the way. If you make customer satisfaction and service excellence your top priorities, your mobile mechanic business will thrive.

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How To Write a Business Plan for Mobile Mechanic Service in 9 Steps: Checklist

By alex ryzhkov, resources on mobile mechanic service.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you passionate about automobiles and have always dreamt of starting your own business in the automotive industry? Well, look no further than the booming world of mobile mechanic services! With the increasing demand for convenient, on-the-go car maintenance, it's no surprise that this industry is experiencing exponential growth.

According to recent statistics, the mobile mechanic service market is projected to reach a value of $395.6 million by 2026, growing at a CAGR of 3.8%. This significant growth is driven by the rising need for quick and hassle-free automotive repairs, along with the convenience offered by mobile services.

So, if you're ready to jump into this lucrative industry, here is a comprehensive 9-step checklist to help you create a successful business plan for your mobile mechanic service.

• Conduct market research
• Identify your target audience
• Analyze competitors
• Determine your pricing strategy
• Assess your start-up costs and financial needs
• Create a marketing plan
• Develop a captivating business name and brand identity
• Define the scope of services you'll offer
• Identify potential suppliers and strategic partnerships

By following these steps and taking the time to carefully plan out your mobile mechanic service, you'll position yourself for success in this thriving industry. With the convenience and quality service you'll provide, you'll not only keep your customers' vehicles running smoothly but also ensure that their journeys are safe and stress-free.

Conduct Market Research

Market research is a crucial step in developing a successful business plan for your mobile mechanic service. It allows you to gather valuable information about your target market, understand customer needs and preferences, and identify potential opportunities and challenges. Here are some key steps to follow when conducting market research for your business:

• Identify your target market: Determine the specific segment of customers that you want to serve with your mobile mechanic service. This could be individual car owners, fleet operators, or commercial businesses. Understanding your target market will help you tailor your services and marketing strategies accordingly.
• Research customer needs and preferences: Gain insights into what your potential customers are looking for in a mobile mechanic service. Are they primarily interested in convenience and time-saving? Are they price-conscious or willing to pay a premium for quality service? Conduct surveys, interviews, and online research to gather this information.
• Analyze market trends and demand: Stay updated on the latest trends and developments in the automotive industry. Understand the demand for mobile mechanic services in your area and anticipate future growth opportunities. This information will help you position your business effectively.
• Assess competition: Research and analyze your competitors in the mobile mechanic service industry. Identify their strengths, weaknesses, and unique selling points. This will help you differentiate your business and develop a competitive advantage.

Tips for conducting market research:

• Utilize online tools: Take advantage of online platforms and tools that provide valuable market research data, such as industry reports, customer reviews, and social media analysis.
• Attend industry events: Participate in trade shows, conventions, and workshops related to the automotive industry. This will enable you to network with industry professionals and gain insights into the latest market trends.
• Stay connected with your target audience: Engage with potential customers through social media, online surveys, and focus groups. This will help you understand their preferences, gather feedback, and refine your services accordingly.

Identify Target Audience

Identifying your target audience is a crucial step in developing a successful business plan for your mobile mechanic service. By understanding who your potential customers are, you can tailor your services and marketing efforts to meet their specific needs and preferences. Here are some important steps to help you identify your target audience:

• Research the local market: Begin by conducting thorough research on the demographics and characteristics of the area where you plan to operate your mobile mechanic service. Consider factors such as the average income, age group, and vehicle ownership in the area.
• Define your ideal customer: Determine the characteristics of your ideal customer by considering their preferences, needs, and pain points. Are they busy professionals who value convenience, or are they budget-conscious individuals seeking affordable services? This will help you create a profile of your target audience.
• Survey potential customers: Reach out to potential customers through surveys or interviews to gather insights about their preferences, expectations, and concerns when it comes to mobile mechanic services. This direct feedback can provide valuable information for refining your target audience.
• Consider existing customer base: If you already have an existing customer base, analyze their characteristics and preferences to identify common patterns and traits. This can give you a clear indication of the type of customers who are likely to be interested in your mobile mechanic services.
• Consider offering specialized services targeted towards specific customer segments, such as luxury car owners or commercial vehicle fleets.
• Use online tools and platforms to gather data on customer behavior and preferences, such as social media analytics and website analytics.
• Keep an eye on industry trends and changes in customer preferences to stay ahead of the competition and adapt your services accordingly.

By identifying your target audience, you can tailor your marketing messages, develop effective strategies, and provide services that align with their needs and preferences. This targeted approach will not only attract the right customers but also increase customer satisfaction and drive the success of your mobile mechanic service.

Analyze Competitors

One crucial step in developing your mobile mechanic service business plan is to analyze your competitors thoroughly. Understanding the competitive landscape will give you insights into their strengths, weaknesses, pricing strategies, and target audience, which will help you position your business strategically.

To effectively analyze your competitors, start by conducting market research and identifying existing mobile mechanic service providers in your area. This could include both local businesses and any national chains that offer a similar service. Take note of their service offerings, pricing structures, customer reviews, and overall reputation.

Tips for analyzing competitors:

• Visit their websites and social media pages to get a sense of their brand identity and the services they highlight.
• Contact their customer support or interact with their online presence to assess their responsiveness and customer service approach.
• Consider mystery shopping—pose as a potential customer to gather firsthand experience on their service quality and customer interactions.
• Read online reviews and feedback from their customers to understand their strengths and areas for improvement.
• Identify any unique selling points (USPs) or gaps in their services that you could capitalize on to differentiate your mobile mechanic service.

Analyzing your competitors will provide you with valuable insights that can help you refine your own business strategy, identify areas where you can excel, and develop a competitive advantage in the market. By understanding what your competitors offer and how they operate, you can position your mobile mechanic service to stand out and attract your target audience effectively.

Determine Pricing Strategy

Determining the pricing strategy is a crucial step in developing a successful business plan for a mobile mechanic service. Pricing plays a significant role in attracting customers, covering expenses, and generating profits. Here are some important factors to consider when determining your pricing strategy:

• Market Analysis: Conduct a thorough market analysis to understand the pricing trends and competitive landscape in your area. This will help you determine the average rates charged by other mobile mechanic services and enable you to price your services competitively.
• Cost of Operation: Calculate the total cost of operating your mobile mechanic service, including fuel, equipment, insurance, and labor. Understanding your costs will guide you in setting prices that cover your expenses while ensuring profitability.
• Value Proposition: Define the unique value your mobile mechanic service offers to customers. Consider the convenience of on-site repairs, quality of service, and timely response. Highlighting these advantages can justify a higher pricing structure compared to traditional auto repair shops.
• Service Packages: Consider offering different service packages to cater to a wide range of customer needs and budgets. Offering basic packages for routine maintenance and more comprehensive packages for complex repairs allows customers to choose according to their requirements and financial capabilities.
• Offer discounts for loyal customers or bundled services to encourage repeat business.
• Consider seasonal pricing adjustments to align with fluctuating demand and market conditions.
• Research pricing strategies of successful mobile mechanic services in different regions to gain insights and inspiration.

By considering these factors and carefully analyzing your market and costs, you can determine a pricing strategy that maximizes profitability while maintaining competitiveness. Remember, pricing is an ongoing process, and it may need to be adjusted as your business grows and evolves. Regularly evaluate market conditions, customer feedback, and financial performance to ensure your pricing strategy remains effective.

Assess Start-Up Costs And Financial Needs

Before launching your mobile mechanic service, it's crucial to evaluate the start-up costs and financial needs associated with your business. This step will help you understand the investment required and plan your finances accordingly. Here are some key points to consider:

• Identify equipment and tools needed: Make a list of all the essential equipment and tools required to provide your services efficiently. This may include diagnostic tools, hydraulic lifts, tire-changing machinery, and more. Research pricing options and determine the most cost-effective yet reliable options.
• Estimate vehicle expenses: As a mobile mechanic service, your truck will serve as a mobile workshop. Take into account the costs associated with purchasing and outfitting a suitable vehicle for your business needs. These expenses may include the vehicle purchase price, customization, and maintenance.
• Consider licensing and insurance costs: Research the necessary licenses and permits required to operate your mobile mechanic service legally. Additionally, consult with an insurance professional to obtain appropriate coverage for your business, including liability and property insurance.
• Plan for marketing and advertising expenses: Allocate a budget for marketing and advertising activities to promote your business to your target audience. This may include creating a professional website, online advertising campaigns, print materials, and signage for your mobile truck.
• Account for operating expenses: Apart from the start-up costs, take into account the ongoing operating expenses of your business. These may include fuel costs, vehicle maintenance, consumables such as oil and filters, liability insurance premiums, and marketing campaigns.

Tips for assessing start-up costs and financial needs:

• Research financing options: Explore different financing options such as small business loans, investors, or personal funds to secure the necessary capital for your start-up costs.
• Get multiple quotes: Compare prices from various suppliers and service providers to ensure you are getting the best deal for your equipment, tools, and vehicle needs.
• Create a comprehensive budget: Develop a detailed budget plan that covers all your expenses, including both one-time start-up costs and ongoing monthly expenses. This will help you understand your financial capabilities and set realistic goals for profitability.
• Consult with professionals: Seek guidance from an accountant or financial advisor who can assist you in assessing your financial needs accurately and help you create a viable business plan.

By thoroughly assessing your start-up costs and financial needs, you can ensure that you have a clear understanding of the investment required to launch your mobile mechanic service. This step will enable you to plan your finances effectively and make informed decisions regarding pricing, budgeting, and financial sustainability for your business.

Create A Marketing Plan

Once you have conducted thorough market research and identified your target audience, it is crucial to develop a solid marketing plan to promote your mobile mechanic service. A well-executed marketing plan will help you attract customers, build brand awareness, and ultimately drive business growth.

Here are some key steps to consider in creating an effective marketing plan for your mobile mechanic service:

• Identify your unique selling points: Determine what sets your mobile mechanic service apart from competitors. Highlight the convenience, expertise, and quality of service that you can offer.
• Set clear marketing objectives: Define specific goals that you want to achieve through your marketing efforts. This could include increasing customer inquiries, expanding your customer base, or generating more repeat business.
• Choose the right marketing channels: Identify the most effective channels to reach your target audience. This could include online platforms such as social media, search engine optimization (SEO), and online directories. Additionally, consider traditional advertising methods such as flyers, vehicle signage, and local print media.
• Create compelling content: Develop content that showcases your expertise and educates potential customers about the benefits of your mobile mechanic service. This could include blog posts, videos, case studies, and customer testimonials.
• Implement a referral program: Encourage satisfied customers to refer your mobile mechanic service to their friends and family by offering incentives or discounts. Word-of-mouth referrals can be highly effective in attracting new customers.
• Monitor and measure your marketing efforts: Regularly track the performance of your marketing activities to assess their effectiveness. Use analytics tools to measure website traffic, social media engagement, and customer inquiries. This will help you identify areas for improvement and optimize your marketing strategies.

Tips for Creating a Successful Marketing Plan:

• Know your target audience: Understand the demographics, preferences, and needs of your potential customers to tailor your marketing messages accordingly.
• Consistency is key: Maintain a consistent brand image and messaging across all marketing channels to build trust and recognition.
• Utilize social media: Create engaging content and actively interact with your audience on popular social media platforms to increase brand visibility and customer engagement.
• Build partnerships: Look for opportunities to collaborate with local businesses, such as auto dealerships or car rental companies, to expand your reach and tap into their customer base.
• Offer promotions and discounts: Attract new customers and encourage repeat business by providing limited-time promotions, discounted services, or loyalty rewards.

Develop A Business Name And Brand Identity

Choosing the right business name and brand identity for your mobile mechanic service is crucial as it helps to establish your identity in the market and attract potential customers. Here are some important steps to develop an effective business name and brand identity:

• Research: Conduct thorough research to ensure that the name you choose is not already taken by a competitor. Check for availability of domain names, social media handles, and trademarks.
• Be memorable: Select a name that is easy to remember and pronounce. Avoid complex or lengthy names that may be difficult for customers to recall.
• Reflect your services: Your business name should give a clear idea about the services you offer. Incorporate words related to 'mobile mechanic' or 'auto repair' to highlight your expertise.
• Create a unique logo: Design a professional and eye-catching logo that represents your brand and stands out from competitors. Hire a graphic designer if needed.
• Define your brand personality: Determine the values and characteristics you want your brand to portray. Is it friendly and reliable? Efficient and quick? Use these attributes to shape your brand identity.
• Consistency in branding: Ensure that your business name, logo, colors, and overall brand identity are consistent across all platforms, including your website, social media profiles, and advertising materials.
• Consider brainstorming sessions with your team or seeking input from family and friends to get creative ideas for your business name.
• Get feedback from potential customers or conduct surveys to gauge their perception of different name options.
• Choose a name that can grow and adapt as your business expands in the future.
• Remember to register your chosen business name and logo as trademarks to protect your brand identity.

Define Scope Of Services Offered

Defining the scope of services offered is an essential step in creating a business plan for your mobile mechanic service. This will help you clearly outline the range of services you will provide to your customers, establish your unique selling proposition, and ensure that you are meeting the needs of your target audience.

When defining the scope of services, consider the specific skillset and expertise of your mobile mechanic team. Determine which services you are equipped to offer and excel at, and highlight those in your business plan. This will help you position yourself as a specialist in those areas and differentiate yourself from competitors.

Create a comprehensive list of the services you plan to provide. This can include routine maintenance tasks like oil changes, tire rotation, and brake maintenance, as well as more complex repairs. Consider offering emergency services for stranded drivers to provide immediate assistance when needed. It's crucial to be clear and concise when establishing your range of services to manage customer expectations effectively.

Here are a few tips to consider when defining the scope of services offered:

• Identify the most in-demand services in your target market and prioritize offering those.
• Consider conducting customer surveys or analyzing market research to understand what services potential customers would find valuable.
• Keep in mind any limitations or requirements related to operating a mobile mechanic service, such as tools, equipment, and space constraints on the mobile truck.
• Highlight any unique or specialized services you offer that are not commonly provided by other mobile mechanics in your area.
• Regularly review and update your list of services to adapt to changing customer demands and market trends.

Defining the scope of services offered will not only help you create a clear business plan but also guide your day-to-day operations, marketing strategies, and customer communication. By clearly defining your services, you will be able to effectively market your mobile mechanic service and attract customers who are in need of the specific services you provide.

Identify Potential Suppliers and Strategic Partnerships

One crucial aspect of running a successful mobile mechanic service is having access to reliable suppliers and establishing strategic partnerships. Identifying potential suppliers and partners can help ensure that you have access to quality products and services, as well as additional resources to support and grow your business.

When it comes to potential suppliers, it is essential to assess their reliability, reputation, and pricing. Look for suppliers who can provide you with quality auto parts and equipment at competitive prices. Consider reaching out to multiple suppliers and comparing their offerings to find the best fit for your business.

• Seek recommendations from other mechanics or auto service professionals to find trusted suppliers.
• Consider partnering with suppliers who can offer bulk discounts or favorable credit terms.
• Establish a strong relationship with your suppliers to ensure timely delivery and priority service.

In addition to suppliers, strategic partnerships with other businesses can bring significant benefits to your mobile mechanic service. Look for opportunities to collaborate with local auto dealerships, towing companies, or even insurance providers. These partnerships can help you expand your customer base, gain referrals, and access additional services.

• Approach potential partners with a clear value proposition and how working together can benefit both parties.
• Consider offering promotional discounts or special packages as incentives for partnering with your business.
• Regularly evaluate the effectiveness of your partnerships and explore new opportunities for collaboration.

Remember, building strong relationships with both suppliers and strategic partners is key to the success and growth of your mobile mechanic service. Regularly review and assess your options, looking for ways to optimize your supply chain and expand your network of partners to stay ahead in the competitive automotive industry.

Creating a successful business plan for a mobile mechanic service requires careful consideration and thorough planning. By following these 9 steps, you can ensure that your business is well-prepared to meet the needs of your target audience and outshine competitors. Conducting market research, analyzing competitors, and identifying your target audience are crucial steps in understanding the market landscape and positioning your business effectively.

In addition, determining your pricing strategy, assessing start-up costs, and developing a comprehensive marketing plan will help you strategically navigate financial challenges and promote your services effectively. Creating a strong brand identity and defining the scope of services you offer will give your business a unique and recognizable presence.

Lastly, identifying potential suppliers and strategic partnerships can help you secure reliable resources and streamline your operations. By following these steps, you can set your mobile mechanic service on the path to success and provide valuable, convenient, and reliable automobile services to your customers.

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Mobile Mechanic Business Plan Template

A successful mobile mechanic business is based on a solid business plan. To help you out, we've designed a business plan template specifically for your mobile mechanic business.

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For help completing your mobile mechanic business plan, read our guide .

How can a mobile mechanic business plan template help you?

• A solid mobile mechanic business plan acts as your strategy guide for building a successful business.
• Whether you're an existing mechanic business or just starting out, a business plan helps you get organised.
• Use a mobile mechanic business plan to help secure funding for your business.

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How to Start a Mobile Mechanic Business in 5 Steps

Free shop handbook ebook.

• By Tristan Corrin
• | March 11, 2022
• | Business Advice

There are multiple paths you can choose when entering the auto repair industry. You could start an independent repair shop, work at a dealership, or become part of a national repair franchise, to name a few.

Recommended: Free Checklist to Help Set Up Your Mobile Mechanic Business [Download Now]

However, setting up isn’t always easy given the time and money it takes. If you’re passionate about servicing cars but don’t want to break the bank with startup costs, you may want to consider starting a mobile mechanic service.

Schedule a free demo today!

Boost your shop sales

Simplify shop management

Empower your technicians

Before learning how to start a mobile mechanic business, let’s define what a mobile mechanic even is.

What is a mobile mechanic?

As the name suggests, a mobile mechanic provides vehicle maintenance and car repair services at any location. These professionals travel to their customers unlike conventional workshops, where car owners bring their vehicles to the mechanic.  Many may consider being a mobile mechanic restrictive. And while you can’t lug around a lift and a hoist, there are still plenty of profitable repair services you can offer:

• Brake service: Brakes are one of the most important vehicle components, and they wear out fast. Additionally, they’re relatively simple for a mobile mechanic to fix.
• Battery replacements: Car batteries in internal combustion engines (ICE) need to be replaced every 4 to 5 years . There’s always that one person who challenges the manufacturer’s recommended replacement schedule and pushes the battery until the very end. These people are likely to find themselves stranded, waiting for a mobile mechanic to help them out.
• Air filters: Busy people might not want to drop their cars off at a workshop for something like an annual air filter replacement . They’d prefer having a mobile mechanic replace the filter while they’re at work or relaxing at home.
• Engine oil changes: Until the time comes that everyone is driving electric vehicles (EV), engine oil changes will remain important. A mobile mechanic can reach the customer’s location and conduct oil changes on the spot. However, it’s important to prepare your shop for electrification so that you can stay in the repair business when EVs eventually dominate the roads.
• Moving parts under the hood: Mobile mechanics can replace spark plugs, alternators, timing belts, water pumps, and conduct vehicle diagnostics . This makes mobile mechanics ideal for people who want quick maintenance checks.
• Tire rotation and replacement: Driving on worn-out tires can be hazardous. Many people would prefer the convenience and lower cost of a mobile mechanic over getting their vehicles towed to a workshop if they have damaged tires.

The perks of becoming a professional mobile mechanic

Now that you know what a mobile mechanic is, let’s go over some of the benefits of becoming one.

• Convenience: In your own traditional repair shop, you might sit around waiting for customers. However, as a mobile mechanic, you can choose to go home and relax on slower days. You can set your own working hours and continue to fix cars afterward to earn an extra buck too!
• Lower cost structure: As a mobile mechanic, you just need to worry about the variable cost of fuel and overheads incurred for basic maintenance. Other startup costs that traditional shops take on won’t apply. Since these are typically lower than utilities and rent that you’d otherwise pay for a shop, your repair business suffers less during the auto repair slow season . Here’s a breakdown of the average cost to set up a mobile mechanic business:

• Modern business appeal: Regardless of the product or service, today’s customers value convenience. If you can eliminate steps for them along the way, that’s great! Customers will place a premium on how you make their life easier. With this type of mobile model, you can bring your business directly to them. And with the right marketing approach, which we discuss later, you have a great chance of creating a highly profitable business!

Things to consider before setting up a mobile mechanic business

If you’re starting a mobile mechanic business, here are some things you need to consider:

1. Acquire the necessary licenses and register your business

After creating an auto repair business plan , you might need a license before you can begin operating as a mobile mechanic depending on your location. If you operate in Florida , you won’t need a business license. On the other hand, mobile mechanics in California need to obtain a repair business license from the Bureau of Automotive Repair (B.A.R.) to operate. Your local small business office can provide guidance and help with paperwork for registering your mobile auto repair business.

Then, contact the IRS in the US or the CRA in Canada regarding a sales tax identification number. This helps when you’re filing tax returns on auto parts, which you need a reseller’s license to sell. It’s also important to decide the kind of legal entity you want your repair business to be, such as a partnership, sole proprietorship, corporation, or limited liability company.

Free Guide on How to Create a Shop Handbook - Download Now!

2. invest in the right auto repair equipment.

• OBD scanner: A quality scan tool might be expensive but it’s worth the investment. It allows you to accurately diagnose issues with a range of different vehicles.  
• Heavy-duty jack: A high-quality jack that can withstand heavy usage will enable you to work under the car and conduct tire rotations and replacements.  
• Brake-related equipment: As mentioned earlier in this article, a vehicle’s brakes are susceptible to wear, even with pristine driving habits. To service brakes, mobile mechanics should invest in a brake pedal depressor and a bleeding kit.

3. Sign up for liability insurance coverage

Liability insurance can protect your business from incurring expensive damage costs. Examples of coverage includes:

• Damage to property: As someone who regularly works on auto repair services for customer vehicles, this is a main damage risk you need to protect yourself against. It’s better safe than sorry, and this type of insurance coverage will keep you protected from devastating liability costs.
• Physical injuries : Unlikely given the nature of your business, but still important to note and protect against.
• Defense expenses: Again, a very unlikely form of coverage you will require. But it’s smart to cover all bases and protect your business as best you can.

Options for liability insurance coverage will vary based on the specifics of your mobile auto repair business. To find the right fit, conduct your own research online. Talk with others you know who own small businesses and get their recommendations.

While it may feel unnecessary now, this investment will provide peace of mind as you work on mobile auto repair and grow your business over time.

4. Purchase the right vehicle

Running a mobile mechanic service means that you’ll need accessibility to the relevant equipment, accessories, and tools at all times. Here are some things to note before investing in a shiny new vehicle:

• Fuel economy: You don’t want to invest in a gas guzzler that’ll burn through your profits. Choose a vehicle that gives you decent fuel economy in both cities and on highways since mobile mechanics spend a lot of time on the road.
• Cargo space: The vehicle should have enough capacity to transport all the equipment and the parts you need. If you’re running a diagnostics service, you’ll need less room than a mobile tire business.
• Configuration: Is the interior space of your vehicle adjustable? Do you have flexible enough options to adapt based on what the specific job requires? Assess the configuration and versatility of the business vehicle with careful consideration.

5. Learn how to deal with the weather

Mobile mechanics often have to work in unpleasant weather conditions . They’re catering to the customers’ vehicles without any shelter from the sun or stormy weather.

Some ways mobile mechanics protect themselves from harsh weather are:

• Use a make-shift shelter: Several mobile mechanics create a short-term shelter attached to their trucks or vans that they extend to cover a large area when needed. Others carry a gazebo that can be collapsed for portability at the expense of using space in their vehicle. This can be seen in the image below from Rough Luck Racing .

6. Market your business

Once everything else is in order, think about how you’ll market your mobile mechanic business. Many of the tips discussed here apply to developing a marketing strategy for any shop .

• Conventional strategies: Sometimes old-school strategies are the most effective. Market your own business by dropping off flyers in high-traffic areas and incentivizing your existing customers to refer you to others.  
• Use social media: Social media marketing is a great way to establish your mobile mechanic service digitally. It’s all about showcasing customer testimonials and your specializations to a larger audience.  
• Website: There’s no substitute for a website to showcase your skills and positive customer reviews. Make sure that you have a contact page that lists all the ways your customers can reach out to you, considering mobile mechanics are often on the move.  
• Customer referrals: Referrals are a great way to generate new business for your shop. After all, your existing customers appreciate the quality service you provide! To ask for referrals, you will need to create an incentive program. Incentives can come in the form of accrued reward points or applied discounts on tire rotations, oil changes, basic repairs and other services. Promote this referral program across your marketing to existing customers and watch the new business roll in!  
• Email promotions: Your mobile repair business won’t gain any traction with generic messaging in email outreach. When it comes to email marketing , get creative! Use attention-grabbing subject lines. Offer compelling value to your customers. And have fun with the email copy itself.  
• Word-of-mouth: Sounds old school, right? But you’d be surprised how effective word-of-mouth marketing can be! Tell all your friends, family and previous work colleagues about the business. Ask them to share within their networks. Attend auto repair conferences and bring business cards with you. Get active with this networking process, as it can pay real dividends.

[Download Now] Free Step-by-Step Guide on How to Create a Shop Handbook

You know how to start a mobile mechanic business with the strategies outlined above. But strategic marketing is the key to generating buzz and getting potential customers interested.

Closing thoughts

Becoming a mobile mechanic can be a rewarding and fulfilling career. Make sure you follow the tips above and you’ll be set on your way to building a promising mobile mechanic business! Once your shop is up and running, consider investing in auto repair shop software to increase your profitability, save time, and build customer trust.

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Mobile Mechanic Business Plan Template [Updated 2024]

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
• 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:

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

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

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

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

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
• Other general administrative tasks

VIII. Management Team

Management team members.

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

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

  5 Year Annual Income Statement

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Auto Repair Business Plan Template

Written by Dave Lavinsky

Auto Repair Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their auto repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an auto repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Auto Repair Business Plan?

A business plan provides a snapshot of your auto repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Auto Repair Business

If you’re looking to start an auto repair business, or grow your existing auto repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your auto repair business in order to improve your chances of success. Your auto repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Auto Repair Businesses

With regards to funding, the main sources of funding for an auto repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an auto repair business.

Finish Your Business Plan Today!

If you want to start an auto repair business or expand your current one, you need a business plan. Below are links to each section of your auto repair business plan template:

Executive Summary

Your executive summary provides an introduction to your mechanic shop business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair business you are operating and the status. For example, are you a startup, do you have an auto repair business that you would like to grow, or are you operating a chain of auto repair businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the auto repair industry. Discuss the type of auto repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of auto repair business you are operating.

For example, you might operate one of the following types of auto repair businesses:

• Auto Service Shop : this type of auto repair business focuses on routine servicing of cars and trucks, such as oil changes and tire rotation.
• Transmission Repair Shop: this type of business focuses on maintenancing, diagnosing and repairing transmissions in all types of cars.
• Body Repair Shop: this type of repair shop focuses on repairing damage to the body of a vehicle, primarily cosmetic damage due to collision.

In addition to explaining the type of auto repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the auto repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the auto repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your automotive business plan:

• How big is the auto repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your auto repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mechanic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: car owners, truck owners, luxury vehicle owners, classic vehicle owners, and businesses that own vehicles such as car rentals, car dealers, delivery businesses, and repairmen.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of auto repair business you operate. Clearly, luxury vehicle owners would respond to different marketing promotions than truck owners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most auto repair businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other auto repair businesses.

Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes auto parts stores (for DIY repair). You need to mention such competition as well.

With regards to direct competition, you want to describe the other auto repair businesses with which you compete. Most likely, your direct competitors will be auto repairs located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of vehicles do they maintenance and repair, or what types of maintenance and repairs do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better maintenance and repair services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car service business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of auto repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to auto repair, will you provide car rental services, repair financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your auto repair company. Document your location and mention how the location will impact your success. For example, is your auto repair business located in a busy retail district, industrial area, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your auto repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your auto repair business, including speaking with vehicle owners in person or on the phone, maintenancing and repairing vehicles.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 50th car, or when you hope to reach $X in revenue. It could also be when you expect to expand your auto repair business to a new city.  

Management Team

To demonstrate your auto repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing auto repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing auto repair shops or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many cars will you repair per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your auto repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an auto repair business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your shop location lease or descriptions of repairs you are working on.   Summary Putting together a business plan for your auto repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the auto repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful auto repair business.  

Auto Repair Business Plan FAQs

What is the easiest way to complete my auto repair shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair shop you are operating and the status; for example, are you a startup, do you have an auto repair shop that you would like to grow, or are you operating a chain of auto repair shops?

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you. Other Helpful Business Plan Articles & Templates

Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

• Brake repair
• Powertrain repair
• Muffler & exhaust repair
• Heating repair
• Electrical system repair
• Wheel alignment and repair
• Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

• Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
• Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
• The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Auto repair shop build-out: $100,000
• Equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

• Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
• Has begun negotiations to purchase the warehouse that will become the shop.
• Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
• Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

• Individual vehicle owners
• Delivery drivers
• Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

• Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
• Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

• Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

• Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
• Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
• Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
• Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of vehicles serviced per month: 450
• Average fees per month: $15,000
• Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

Table of Contents

Complete Guide on Auto Repair Shop Business Plan (2023)

Success in the auto repair business starts with a good plan. Your shop’s future depends on it. One mistake can be a big problem. That’s why you need to make sure you have everything in place for a successful auto repair business.

In this blog, we’ll help you create a strong business plan for an auto repair shop, whether you’re starting out or already have a shop. We’ll also give you a business plan sample for an auto repair shop that you can use. 

Let’s get started!”

Looking to expand your auto repair shop? Schedule a demo now.

What is an auto repair shop business plan? 

An auto repair shop business plan is like a roadmap for your car repair business. It’s a document that explains your business idea to potential investors or partners.

Imagine you’re planning a long road trip. 

Before you start, you make a detailed plan with the places you want to visit, the things you want to do, and the route you’ll take. 

Similarly, an auto repair shop business plan is like that plan for your car repair business. It’s a written guide that outlines what your business wants to achieve, how it will do it, and why it’s a good idea. 

You use this plan to show to others, like investors, so they understand your business and may want to be part of it. It’s like the master plan for your car repair adventure!

Why you need a business plan for auto repair shop: 

You will understand your business better:.

• Your business plan is your GPS. It gives you a clear route to your goals.
• Identify and tackle obstacles with confidence by sticking to your plan.
• It’s your guide for financing, hiring, operations, and branding.

It will give you a Smooth Driving:

• Prevent hiccups by investing wisely.
• Your business plan helps you choose the right people, processes, technology, and marketing.
• Ensure your investments align with your long-term goals.

Make your business sustainable: 

• Map out a sustainable and viable business model.
• Secure funding, plan expansion, and achieve growth milestones.

It will give you Clear Path:

• Engage in a regular enjoyable activity.
• Form habits that help you focus and organize thoughts.
• Find solitude to regain focus on business goals.
• Personalize your approach for clarity and success.

Creating an auto repair shop business plan: 

Understanding the basics.

It is important that you first clever the basics before you create a business plan. 

For that, you need to understand the type of your business. There are many types of business such as startup business plan, internal business plan, and strategies plan.

For an auto body repair shop business plan, you need to form some key elements in your company such as market, company description, sales strategies, management, product/service, fundings, financial projections. Etc. 

Company Description: 

This chapter is the heart of your business plan. Here you will tell your story. Why do you want to start an auto repair business? What is the mission behind it? You will explain your services. 

This is your chance to give a unique identity to your repair shop. This can help you gain competitive advantage. Let’s discuss these things one by one: 

Overview: 

Give your readers a sense of what your auto repair shop is all about. You can tell the essence of your shop here. You need to discuss the history of your business, founders; story, and company culture, 

Mission Statement: 

Articulate the core purpose of your business – what it aims to achieve and how it serves its customers or clients.

Vision Statement: 

Describe the future you envision for your company. What impact do you want to have on your industry, community, or the world?

Products or Services

Now discuss what you are offering. Describe your services that show a unique value proposition. It is important that it is relevant to your auto repair customers. 

Market Positioning

Marketing and branding is very important to have a successful auto repair business. Focusing on market positioning is crucial. You need to touch on points like target audience, competitive advantage and market niche. 

Short-Term Goals: 

These could include milestones like launching a new product, reaching a specific revenue target, or expanding your customer base.

Long-Term Goals: 

Detail your overarching aspirations, such as becoming an industry leader, expanding globally, or achieving a certain level of market share.

Market Analysis

You need to know what you are dealing with on a daily basis. 

What do your ideal customers want? What is trending in the market? How can you attract more and more customers? 

For this, you need to have a comprehensive knowledge of the auto repair market. There are three things you need to cover: 

Target Market: 

Understand your audience. Check out the following things in your customers: 

• Income level 
• Values 
• Lifestyles 
• Purchasing behaviors

Address the market needs: 

You need to find out the needs of your market. Identify the pain points of your customers.

Pro tip: you can conduct surveys or focus groups to find out the pain points of your target audience. 

After finding out the paint points, come up with unique selling point that covers the needs of your market. Clearly articulate how your products or services stand out and provide distinct advantages over competitors.

Analyzing the Competitive Landscape: 

In every market, competition is a reality. By analyzing your competitors, you gain insights into their strengths, weaknesses, and strategies. Find out direct competitors that offer similar services. 

After finding your competitors, you can set your business apart by offering better services from them. 

Market Size and Growth Potential

Assessing the overall market size and growth potential provides a snapshot of the opportunity at hand. It helps you understand the scope of your market and whether it’s expanding or contracting.

Industry Trends: 

Now you need to collect data related to auto repair shops. This can help you in finding industry trends. Find out the merging technologies that you can use in your shop. 

Marketing and Sales Strategies

Now we know our services and market for the auto repair shop. But how are we gonna sell our service to the market

That’s here, you need marketing strategies for your auto repair shops. Follow the following steps to define your strategies: 

• Identify the platforms you’ll use to reach your audience. 
• Craft a consistent and compelling message that resonates with your target audience.
• Plan the creation and distribution of valuable content that educates, entertains, or solves problems for your audience. 
• Detail how you’ll guide potential customers through the sales journey, from initial contact to making a purchase.
• Explain how you’ll attract potential customers.
• Describe how you’ll build relationships with leads over time. 
• Outline the steps you’ll take to convert leads into paying customers. 
• Allocate funds to different marketing strategies
• Explain how you’ll measure the effectiveness of your marketing and sales efforts.
• Identify the KPIs you’ll monitor, such as website traffic, conversion rates, click-through rates, and customer acquisition cost.

Organization and Management

Now, you need to discuss the management of your auto repair shop. Highlighting key team members and explaining their roles adds depth and credibility to your business plan.you can discuss the following things: 

• Organizational Structure
• Hierarchical Chart.
• Functional Divisions
• Key Management Team
• Founder(s) and CEO
• Executive Team Members
• Responsibilities and Roles
• Founder’s Role
• Key Executives’ Roles
• Team Strengths and Expertise
• Relevant Experience
• Growth Plans
• Recruitment Strategy

Product or Service Line

In this chapter, you’ll provide a thorough exploration of your products or services. You can discuss the following things: 

• Introduction to Your Offerings
• Detailed Description
• Development and Design
• Intellectual Property
• Product Life Cycle
• Future Development
• Visuals and Media
• Customer Testimonials and Case Studies
• Pricing Strategy
• Regulatory and Compliance
• Sustainability and Ethics

Financial Projections

In this chapter, you will do a proper financial analysis. You will discuss the financial dynamics of your business. 

1. Profit and Loss: 

In this, you will show projected profit and loss for the forecast period. Below is an example from the business plan for an existing auto repair shop. you can use it to make your own a profit and loss sheet. 

2.Cash flow projection: The next thing is the cash flow projection. Cash flow is critical for business sustainability. Illustrate how cash moves in and out of your business, highlighting periods of potential cash shortages and surpluses. This helps in planning for working capital needs and managing liquidity. Below is an example that you can use:

3. Balance Sheet Projection

Provide a snapshot of your business’s financial position, including assets, liabilities, and equity. This showcases the overall health and stability of your business.

4. Break Even Analysis

Determine the point at which your business becomes profitable. A breakeven analysis helps you understand how much revenue you need to cover all costs. Below is an example of a business plan for an existing auto repair shop. You can see to understand better.

Risk Assessment and Contingency Planning

No business journey is without its obstacles. Recognizing potential risks and challenges upfront and having a plan to address them is crucial. 

This chapter focuses on identifying risks, evaluating their potential impact, and outlining strategies to mitigate their effects.

First thing is to identify the risk. You can see the picture below to identify risks. 

After identifying risks, you need to come with risk mitigation strategies such as: 

Preventive Measures: Outline steps you’ll take to prevent risks from occurring. 

Mitigation Plans: Describe your plans to minimize the impact if a risk does materialize. 

Crafting a business plan is a labor of love. It’s more than a document; it’s your business’s roadmap to success. Each chapter contributes to the bigger picture, forming a comprehensive strategy that aligns your ambitions with actionable steps. Now that you have this guide, take the first step towards creating a winning business plan that paves the way for your entrepreneurial journey.

You can also take your auto repair business to the next level with a good auto repair management software. Moreover , torque 360 offers all-round automotive management software as well. It includes many features such as scheduling, invoicing , estimating , digital vehicle inspection , repair order management , technician portal , POS integration , and marketing solutions. 

About the Author: Torque360

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Auto Repair Shop Business Plan

Start your own auto repair shop business plan

F and R Auto Repair

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

F & R Auto (F & R) is the desire of John Ford and Michael Ronald who together have 30 years experience as auto mechanics. Both have a dream of starting up their own company and offering better service to their clients than competitors.

1.1 Objectives

The objectives over the next three years for F & R Auto Repair are the following:

• Sales revenues increase steadily through year three.
• Institute a program of superior customer service through rigorous evaluation of service experience.
• Hire three more mechanics.

1.2 Keys to Success

In the auto repair industry  a company builds its client base one customer at a time and mostly through word of mouth marketing. With this in mind, the keys to success for F & R Auto Repair are:

• High-quality work.
• Constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress.
• Knowledgeable mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.

1.3 Mission

The mission of F & R Auto Repair is to provide high quality, convenient and comprehensive auto repair at low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The company will be a partnership with John Ford and Michael Ronald each owning 50% of the company. The company will be a limited liability company registered in the state of Washington. The firm will have facilities on 1312 1st Ave NW in Ballard, a neighborhood of Seattle. The facilities will contain a two-bay garage, office space and storage space for tools, parts, etc.

The company is seeking a  loan in order to finance the start of operations for the company. Each of the owners will be putting up some of their own capital as equity.

2.1 Start-up Summary

The data obtained for the start-up comes from research done in the Seattle area with other small mechanic shops who have started their own business. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items.

Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.

F & R Auto offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business to customer ties.

F & R Auto will hire trained and certified mechanics who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.

3.1 Service Description

F & R Auto provides a wide range of auto repair services. These include:

• Scheduled maintenance.
• Wheel alignments, tires and rims.
• Brake repair.
• Comprehensive engine repair.
• Transmission.

Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.

3.2 Competitive Comparison

The auto repair industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.

 Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies. These companies are more consolidated that the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to F & R’s industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible.

 In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.

 The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

3.3 Technology

The technological revolution in computers has enhanced our abilities to diagnose and repair our clients vehicles. F &R will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.

3.4 Future Services

The company does not have any plans to create further services at this time.

Market Analysis Summary how to do a market analysis for your business plan.">

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4.1 Market Segmentation

The following table and chart show the market analysis for F & R Auto Repair.

4.2 Service Business Analysis

This section is covered in the Competitive Comparison section of the Plan.

4.2.1 Competition and Buying Patterns

While many customers looking to purchase automotive repair services are concerned with price, the primary concern is with building a relationship of trust between themselves and their service provider. A large number of people within the country have experienced or heard of bad service encounters within this market. As a person’s car is usually connected in one way or another with that individual’s livelihood, a dependable automobile is crucial. Therefore, many clients are willing to pay a little more for a mechanic they feel does a quality job and understands their needs.

An automotive repair company that can anticipate, meet, and even exceed customer’s needs can build a defensible position within the market place and acquire market share at the expense of other rivals.

4.2.2 Main Competitors

As stated before, the automotive repair market is very fragmented. The chief competitors in this industry for F & R are the high quality automobile dealerships and licensed service reps. This includes Toyota, Ford, Chrysler, and other major brand names. Within F & R’s immediate service vicinity, There is Rodham’s Toyota, Lester Ford and Woodmark’s Chrysler dealerships. Each of these direct competitors have a service facility. These competitors dominate the market place, have the largest market share, and have advantages such as specially trained personnel, access to lower priced parts and tools, and deep pockets. The other competitors are mostly “mom & pop” style outfits that make up the majority of the competition. For F & R this includes Dave’s Auto Repair, The Taller Mechanico, Kirkland Auto and Body, and Vancouver Auto. The advantages of these firms is that they can seek a low cost leadership strategy due to lower personnel costs. However, they have a much more fluid customer base and higher customer turnover.

F & R will seek to compete initially in the low cost strategy. At the same time, it will seek to provide a higher level of customer satisfaction by having more rigorous quality control and seeking ways to enhance the entire service experience (not just repairing a person’s car). In this way it will lock in a loyal customer base who value the client-service provider relationship.

4.2.3 Business Participants

The auto repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. It is very difficult to create a differentiation, or niche, strategy in this environment and until F & R is able to establish a reputation for quality, on time, superior customer service, the company will seek a low cost role. Once it has achieved what management believes to be a sufficient reputation for its services along with a profitable customer base, the company plans to leverage this advantage into a differentiation strategy that will be able to charge more for its services.

Strategy and Implementation Summary

The following section outlines the company’s strategic focus in growing the business.

5.1 Competitive Edge

F & R Auto’s competitive edge lies in the vision of its partners, who understand better than many of their rivals that a service visit does not just include repairing a client’s car, it includes the entire service experience from the first time a client talks to their mechanic until they decide to stop driving. The long-term profitability of a service firm of this type lies in the repeat customer that finds F & R’s services an excellent experience, DESPITE the fact that they usually have suffered a inconvenient breakdown. The company will seek to examine ALL aspects of the service experience to seek ways to improve its customer satisfaction. In addition, all employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this issue.

5.1.1 Positioning Statement

It is the express purpose of F & R to become the local leader in quality and service experience of all the small (non-dealerships) automotive repair firms within the Seattle area while maintaining a low cost plan. Once a reputation for quality and service experience is created, and an ongoing network of referrals is bringing in new business, the company plans to re-evaluate its strategy and positioning within the market to see if a differentiation strategy is viable. If so, this will allow the company to raise prices and increase profit margins in relation to its rivals. This in turn is expected to leverage long-term growth until F & R can reach a regional scope of operations.

5.2 Marketing Strategy

The company has a modest program of marketing its services that include the following:

• Direct mailers.
• Newspaper ads.
• Yellow pages.
• Referrals through other local businesses.

Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company’s long-term marketing goals are to use local radio and TV ads similar to the Les Schwab Tire Center ads.

The company is also investigating the possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and other promotional ideas.

5.2.1 Promotion Strategy

The principal owners of F & R Auto expect that a significant number of their pre-existing clients (where Ford and Ronald currently work) will desire to switch to F & R Auto to retain the services of their personal mechanics. This will provide a sufficient income until F & R can build up a reputation and see its marketing program take effect.

This promotion strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages. F & R does not desire to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after year five.

5.2.2 Pricing Strategy

F & R Auto exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many automobiles it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, F & R can service automobiles at total capacity without effecting the price.

5.3 Sales Forecast

Since the automotive repair industry is, operationally, a job-shop environment, it is somewhat difficult to estimate sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once an order is made. However, the sales forecast reflect the professional opinion of Mr. Ford in how much sales he will make based on the following assumptions:

• The number of clients Ford and Ronald can attract from their previous companies.
• The effect of planned promotions and word-of-mouth marketing.
• Current prices and costs of doing business.
• The types of automobiles and jobs that will occur in every month.

For the most part, sales for an automobile repair firm are steady year round and reflect little seasonality.

The table and charts below outline the sales forecast.  Three years of annual sales and costs of sales are shown.  Twelve monthly tallies are included in the appendices.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

John Ford began working as an apprentice mechanic in his father’s shop in 1984. Since that time, he has worked for a variety of automotive shops and dealerships and has numerous certificates in automobile repair. During the past two years Mr. Ford has attended Bellevue Community College where he received an Associates degree in business administration in June of 2000.

Michael Ronald attended ITT Technical Institute where he received a certificate in electronics repair in 1980. In 1983 Mr. Ronald went to work for Jim Click Ford Dealership in Tucson AZ, where he worked on automotive electrical and electronic systems. Desiring to expand his skills, Mr. Ronald received a mechanic’s certificate in 1988 and since then has become certified in various automotive fields. In anticipation of F & R’s business needs, Mr. Ronald is taking night classes at Seattle University in marketing.

6.1 Personnel Plan

F & R’s initial staffing will consist of Ford and Ronald, plus Ronald’s wife who will act as a part-time office manager. The company will seek two entry level mechanics to be hired within a few months after the company is operating. Accounting, bookkeeping, and marketing services will be outsourced. The company’s intermediate goal is to have four full time, fully trained mechanics at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.

Financial Plan investor-ready personnel plan .">

The following sections outline the financial plan for F & R Auto Repair.

7.1 Break-even Analysis

The company’s Break-even Analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc.

7.2 Projected Profit and Loss

The following table and chart show the projected profit and loss for F & R Auto Repair.

7.3 Projected Cash Flow

The following table and chart are the projected cash flow figures for F & R.

7.4 Projected Balance Sheet

The following table shows the projected balance sheet.

7.5 Business Ratios

The Business ratios give an overall idea of how profitable and at what risk level F & R Auto will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. As can be seen from the comparison between industry standards and F&R’s own ratios, there is some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size.

Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher SG&A costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however this is due to the fact that the company will be operating with fewer assets than most companies in the first few years until it can build up enough cash to acquire the tools and facilities that are desired and go beyond the “adequate” level.

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Elektrostal

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