In this article, I am going to tell you how to start an auto repair shop. These days just about everyone owns a car and everyone who owns a car needs to get it serviced or repaired every once an awhile. So there is a high demand for the service provided by auto repair shops. But if you do not setup your business properly, there are still a number of pitfalls that you could run into.
The first thing you have to do is market research. You need to figure out how high the demand for auto repairs are in your area and you need to figure out how great the supply of auto repair services is as well. What you are looking for is high demand and low supply. This will give your shop the best possible odds of succeeding.
Next you have to figure out how much money will be required to open and run your shop. You will need to tally up the costs of rent, equipment and employees. Once you have this figure you will need to project how much revenue your shop can make. If you are lucky, you can fund the business out of your savings. If you are not so lucky, you will have to take your projections to a bank and get a loan.
Once you have the money and you have opened your shop, you will need a steady stream of customers. At first, customers are not going to just walk into your door. You will have to find them. One way to get customers is to approach local companies that have a fleet of cars. Offer them a volume discount if they are willing to have their fleet serviced exclusively by you. Another source of customers is local auto insurance companies. Often they will have loads of cars that need repairs.
Finally, staffing is really important. When starting out, it is very helpful if you can get family members to do the office work like answering phones and collecting bills. This way you can keep expenses low, while you are just getting going.
