Sample auto repair shop business plan

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Sample auto repair shop business plan

Strategic Analysis with current research! The Automotive Repair Shop, Inc.

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The Company was founded in by John Doe. The Company has the ability to service almost any domestic or foreign automobile. The Company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts.

Doe brings the business to profitability, he intends to further expand the after-market auto parts revenue center and increase the sports tuning services, which command higher premiums that standard automotive repair. The third section of the business plan will further describe the services offered by the Automotive Repair Shop.

The interest rate and loan agreement are to be further discussed during negotiation. Doe has more than 10 years of experience in the automotive repair industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years. This includes greater development of after-market tuning and performance enhancing services which generate a larger margin that standard automotive repair.

Doe will also increase the marketing and advertising budget of the business to increase the general repair revenues of the business. The Company is registered as a corporation in the State of New York. Below is a breakdown of how these funds will be used: Doe is not seeking an investment from a third party at this time.

Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Automotive Repair Shop. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

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The Company will have the ability to service most domestic and foreign automobiles. Doe will maintain an extensive shop which can fix any automotive issue.

Currently, the economic market condition in the United States is in recession.

sample auto repair shop business plan

This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period.

However, automotive repair shops operate with great economic stability as vehicles are necessity and very few people have the ability to fix their own vehicles beyond very minor repairs. As such, the Automotive Repair Shop will be able to maintain profitability despite the current economic climate.

Some car repair work is also provided by 45, gas stations; 24, new car dealerships; and branches of chain stores, like Sears and Kmart.

The industry is highly fragmented: Demand depends on the number of cars, how much they're driven, and how complicated they are to fix. The profitability of individual companies depends on volume, because many costs are fixed. Large companies are more likely to use expensive diagnostic equipment efficiently and benefit from advertising, but the economies of scale aren't large.

Revenue per location is lower for large repair chains, like Monroe, that typically provide specialized but lower-skilled services like muffler and windshield replacement.

About 60 percent of industry revenue comes from mechanical repair and 40 percent from body shop work. Car repair shops usually specialize in a particular field of repair because of the specialized knowledge.

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Management anticipates that its expected service clientele will be a local, middle to upper middle income earning male and females between the ages of 25 and The key to writing a strong competitive analysis is that you do your research on the local competition.Tough new penalties for distracted driving Increased penalties – including automatic driver’s licence suspensions – are now in place for using a hand-operated electronic device for any reason while driving.

Start your business with sample business plan, marketing plans, contracts, and proposals. Learn marketing and download content for your website and blog. Auto Repair Shop Business Plan. F and R Auto Repair is a start-up small business providing for auto services and repair.

F and R Auto Repair is owned and operated by mechanics who have a total of over 30 years of combined experience.

F and R Auto Repair auto repair shop business plan executive summary. F and R Auto Repair is a start-up automobile repair and service business/5(44). Auto Repairs And Maintenance Business Plan Through management and development strategies found in this free, printable business plan, auto repair and maintenance businesses can gain a competitive edge in the automobile market.

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