If you’re a mechanic or working on becoming a mechanic, reaching that dream might start with the idea of opening your own auto repair shop. You can set the hours, work with customers on pricing, specialize in interesting vehicles,
and take control over the future of your career. When you work on the shop floor without ownership, your earnings top out at your salary or an hourly wage.
When you own the shop, the only limit on profits is the capacity of the garage.
Before you start looking for money to get your garage doors up, planning is critical .e on interesting vehicles, and take control of the future of your career. When you work on the shop floor without ownership, your earnings top out at your salary or an hourly wage. When you own the shop, the only limit on profits is the capacity of the garage.
Before you start looking for money to get your garage doors up, planning is
critical.
Know the Start-up Costs:
Before you spend a dime opening your shop, you need to know the total projected cost to get up and running. If you don’t, you might run out of funds before gaining your first customer. While it is impossible to project certain costs ahead of time, the most common and expensive line items are easily predicted. According to Appointment-Plus, the total cost is right around
$47,000, in equipment, insurance, and rent. Buying a building and making alterations can significantly change that number, depending on construction costs. Choosing to buy an existing auto repair shop can also affect the bottom line.
Get Legal Advice:
A lot more goes into opening a business than just finding a location and serving
customers. You’ll need to obtain a business license, look into the regulations
surrounding liability insurance requirements, open accounts to handle payroll
and tax reporting, file your articles of incorporation, and other pre-sale steps.
A lawyer is invaluable during this process, helping you ensure every “i” is dotted and “t” crossed. You don’t have to retain a lawyer, but it can save you from a lot of mistakes along the way.
- Set up Interviews:
If you have a very small shop, you might do all of the work yourself, but you
will probably still need at least one employee to handle telephone calls and
customers. If you have a couple of lifts and want to maximize your capacity, you’ll need additional mechanics to help service vehicles. The hiring process
should start at least a month before your grand opening. You’ll want enough time to check references, find the best candidates, and negotiate compensation packages.
Get the Word Out:
Marketing is another big part of opening the doors. Be sure to schedule a
Grand Opening, so locals can stop in and see the shop. You might want to advertise special discount pricing for that first day or week, just to bring customers through the doors. You’ll also want to have a standard service list of pricing and a shop rate finalized, so you can estimate your revenue potential.
