Auto Repair Business Plan

Business Plan Articles

If you are starting an auto repair business, it is likely that you will require a business plan at some point. The experts at Pro Business Plans have extensive experience preparing plans for investment and strategy. This article provides information on what should be included in an auto repair business plan and how it is typically structured.

auto repair business plan

Auto Repair Business Plan

There are several things to consider when preparing a business plan for an auto repair company that apply to starting an auto repair company in general. These factors will influence your profitability and direct the decisions by financiers about the potential of funding your company and outlining its potential for success and the identification of critical risks. These points are generally reflected in the business model and form the foundation of the assumptions for the financial model and demonstrate the flexibility of the marketing plan.

Business Model

The business model of an auto repair business plan is to fundamentally repair cars, but there are several other factors that will play into the success of the business model. For instance, the location of an auto repair company will direct the overhead costs along with the nature of the customer demographic. For instance, an auto repair company based in an area with an affluent population, they will likely have newer cars that require fewer repairs. However, they may also have higher budgets when the repairs are required. When it comes to the business model, aside from the location, there are two main points that will influence the business model.


market positioning

Service Offering

The scope of a service offerings will range depending upon the auto repair company. Some specialize in certain car models, such as Audi or Bentley, whereas others may provide light repair work and others provide full service work that spans all the way to transmission The service offerings will direct how much potential profit your company can generate, as it also depends on the qualifications of your internal team and what payroll, if any would need to be required.


team management

Operations Plan

The operations strategy of an auto repair shop will direct how it generates a profit based on the fulfillment of its services. In some cases, the shop owner is the lead mechanic, and in other instances, the owner hires all mechanics on payroll. The operations strategy does not need to be clearly outlined step-by-step, but it should provide a high level overview around how the company will outperform its competitors based on its operations model.


Marketing Plan

The marketing strategy of an auto repair business plan is how you will acquire and retain clients within the market. There are several factors that will influence your marketing strategy including the age of the business, budget for your marketing campaigns, and the density of competition. For instance, a mechanic that is the only provider in a rural community may receive all his/her business from insurance providers and classic phone book lookups. However, an auto mechanic in a dense urban area with dozens of others within a twenty-mile radius may have to increase their level of competition with more promotions. In general, there are several approaches that a mechanic may take in order to win and retain business.


trade shows

Customer Relationship Management

Although many customers may wish that they never need to visit an auto repair shop again, the cold reality is that many of them do. Moreover, many customers search within their immediate network in order to find an honest and hard-working mechanic that does not overcharge. Therefore, it makes sense to include a customer relationship strategy within the marketing plan in order to outline how your company intends to retain every new customer that it generates.


business development

Promotions

Because of the spontaneous nature of auto repair needs, promoting on a massive and regular scale is not always advantageous. Rather, promoting for clients when they need the service would be more advantageous. For instance, many mechanics promote online through Google AdWords so that when consumers search for ‘auto repair services’, their company is among the first of the search results. These promotions can be costly, however, so it is important to contemplate how much you can afford to allocate towards marketing services.


Financial Projections

The financial forecasts for an auto repair business plan will be used by banks or investors to have a greater understanding of your main risks and potential for profitability. These factors are influenced by a myriad of factors, so it is important to base the projections off either prior operating history or comparable auto repair companies. In general, the financial projections get down to the revenue and budget forecasts, which ultimately determine the success of your company.


revenue projections

Revenue Projections

The revenue forecasts for a Auto Repair company should be justified with a detailed list of assumptions that your company will consider when preparing the plan. This includes a combination of factors such as the expected adoption rate, growth rate projections, and the price that people are willing to pay. When possible, third party information should backup assumptions made in the financial projections. While this seems like a common sense point, many people base revenue forecasts by their emotion of what their company will do rather than rational logic.


budget forecasts

Budget Forecasts

The budget projections of the company will be most advantageous if you’re seeking investment. Most intelligent investors will seek to understand where their capital is being allocated and how it will influence the company. They may want to know, for instance, what portion is being allocated to salaries relative to investments in machinery that can be easily liquidated. However, it is important to outline a clear and conservative picture of what is actually needed rather than placing a budget that may more conservative to the prospective financier.


What is Included in Our Custom Auto Repair Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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