4 Things You Should Know About Running an Auto Service Franchise
Running an auto service franchise is not significantly more difficult or complicated than running any other type of franchise, but it is unique. Of course business management is a major skill involved, but with regards to the service provided, there’s a great deal of knowledge and skill that is peculiar to the auto service industry that one will need to succeed. But with challenging work and a willingness to learn, there’s no reason why a competent, endeavoring person cannot succeed in running an auto service franchise. Here are four things you should know about running an auto service franchise(s).
Auto Service Expertise
The first item on our list is not so much anything you should know as much as something you don’t need to know, at least not when you’re beginning. Too many people –people who have an entrepreneurial spirit and a strong independent work ethic– cross opportunities such as auto service franchises off their list of possibilities because they don’t have a background in that sector. While having worked as an auto technician or being handy with auto repair might help in your running of an auto service franchise, it really isn’t a prerequisite.
Plenty of people have gone into auto service franchising without a strong prior knowledge of auto repair and have done just fine for themselves. The key is to find a supportive and informative franchisor that will help you learn what you need to know. Beyond that, diligence, honesty, and challenging work is all you need.
No Man–or Auto Service Franchise– is an Island
The great benefit of owning a franchise is that it allows you to effectively be your own boss, but without all the scary insecurity and isolation of being fully independent. It’s like having a safety net underneath you as you cross the high wire; of course, it’s a clever idea. Therefore, look for a franchisor that really helps their franchisees. One that provides training, marketing support, and protected territories, ensuring that they won’t let another franchise open across the street from you.
A lot of the money that you spend every month will be on parts and equipment. If you can’t get reliable parts, you won’t get return business and your franchise will fail. If the parts cost you too much money, that will eat into your revenue and you won’t turn a profit. They key is to get high quality parts and equipment for your auto service franchise, but without breaking the bank. That’s why companies that have preferred vendor programs are so attractive. By leveraging the buying power of all their franchises, a company can get great deals on parts and equipment, thus boosting everybody’s revenues.
Cost and Criteria
You also must know what you’re getting into, financially. For Tuffy Tire & Auto Service, a franchise will require an initial investment of between $224,000-$413,500, with $66,000-$163,500 of that being liquid capital. Those numbers might look big on paper, but when you consider that Tuffy Tire & Auto Service provides all the services mentioned above –training and support, help with marketing, protected territories, and a preferred vendor program– you’re buying a great auto service franchise with big earning potential.
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