Mechanic Shop

Opening a Mechanic Shop: Things to Consider

From finding a location to buying equipment to fully operating a lucrative repair business, consider these things before opening a mechanic shop.

If you have a skill of your own you probably dream of becoming your own boss. As a skilled mechanic, this is easily achievable by setting up your own auto repair business and breaking free from the constraints of working for someone else.

Auto repair shops are known to perform well because of the large profit margin and the fact that auto repair work will always be in demand! But in order to make your business a success, there are a few necessary steps to take beforehand.

Here’s a simple guide on opening a mechanic shop and turning it into a lucrative business…

6 Important Steps for Opening a Mechanic Shop

As with any business, you’ll need to source the ideal property, obtain a license to operate, hire staff, make connections, and market your services. These are just a few of the basic steps to establishing a repair business from scratch.

Of course, other important considerations include administration, insurance, and a solid IT management system- check out Trailblazer Repairs for more.

First thing’s first, here are 6 basic steps to take when establishing an auto repair business:

1. Find the Perfect Property 

As the saying goes, location is everything. Ideally, your auto repair shop should be situated alongside a main highway or in the middle of the city where high volumes of traffic pass by.

Once you have located the ideal property, you may need to take out a bank loan to afford the initial start-up fees of your business. These loans vary in amount, but nothing less than $50,000 should suffice in beginning your own business from scratch.

In order to qualify for the loan, your bank will expect a thoroughly detailed business plan. In it, you must outline the goals of your business, how you will spend the loan, business overheads, advertising costs, and more.

2. Obtain a Business License

Licensing requirements for auto repair shops vary from one state to the next. Regardless, you’ll need to check with your local motor vehicle department on what type of business license you need.

In order to obtain a license, you need to fill out an application, meet all eligibility requirements which include your age, credit rating, and criminal record. You must then provide all the required documents and information requested.

3. Purchase Business Insurance

Throughout most states, you will be required to provide proof of business insurance before being granted a business license to operate. Generally, you must meet the minimum requirements of $50,000 in insurance coverage.

Double check with your local motor vehicle department in order to determine how much insurance coverage you’ll need to obtain a business license.

4. Establish a Solid Administrative Team

Your administrative team is key to the successful operation of your business. Ultimately, this team manages your invoicing system, finances, legal issues, and any customer problems. They also anticipate any potential pitfalls within your business that you may otherwise be unaware of.

Consider hiring an accountant or financial advisor, an administrations clerk, receptionist, IT specialist, and a lawyer in the case of customer disputes.

5. Build Up a Strong Workforce of Employees

An auto repair shop is only as good as its auto mechanics and their level of skill. Don’t skimp on inexperienced mechanics. Do your research and build up a strong workforce that can deliver high-quality repairs, no matter the damage.

It doesn’t hurt to take a look at mechanic colleges in your area, too. You can offer an auto mechanic apprenticeship which could lead to a long-term, fruitful working relationship.

6. Advertise Your Business

If you aren’t advertising your business, you’ll never get it off the ground.

Establish a solid online marketing strategy by advertising on Facebook, Twitter, and Instagram. Build a high-quality website that is continually kept up-to-date with an auto-repair blog.  

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