4 Tips for Opening a Car Repair Shop
Car repair shops are one of the more reliable options for entrepreneurs who want to own their own business. Car repair shops exist in an industry (the automotive aftermarket) that is highly profitable, and which is still growing, year over year. Think about it: how many people do you know who drive a car? Probably a lot. And all those cars need regular maintenance and periodic repairs. And for drivers across much of the country, taking their vehicle to a car repair shop is something that happens at least twice a year: to take off and put on their winter tires. So, there are lots of potential customers and repeat customers out there to make car repair shops profitable. But not all car repair shops are equal. To help give you the edge, here are four tips for opening a car repair shop.
Location, Location, Location
As mentioned in the intro, where your car repair shop is can have a big effect on the business you do. If you live in the south, this doesn’t mean you should move to the northeast to capitalize on customers buying winter tires. But location is something you should think of more locally. You would never set your car repair shop right beside a competitor. That would be silly. But what can you do about other car repair shops opening in your area after you’re already up and running? One thing you can do is buy a franchise from a company that offers protected territories. This means that the company won’t let other franchisees within the franchise set up shop in your area.
Know what it takes
In entrepreneurship, a “can do” attitude is an important thing to have. It’s even necessary. But that doesn’t mean biting off more than you can chew. There’s a difference between optimism and delusion. No matter how much you want to open your own car repair shop, you can’t do it until you have all the prerequisites. That means you can’t go ahead until you have the proper financing. Any franchisor that will let you in on a cut rate deal or will otherwise sell you a franchise even though you haven’t the prerequisites is probably a shady individual. To find out if you have (or can acquire) the necessary resources to open a car repair shop. Tuffy Tire & Auto Service has a handy chart here.
Cut Down on Overhead
Opening a car repair shop requires a lot of investment. Anywhere you can cut down on spending is great. That’s why companies with preferred vendor programs can be the key to your car repair shop succeeding. A preferred vendor program means you can get quality parts and equipment for cheap.
Know the numbers
You’ll learn a lot on the job but the more you learn before you begin, the better off you will be. Doing some research on the stats and figures of your industry before jumping into it can help a lot. For instance, did you know that car repair shops are part of the automotive aftermarket and that market is worth over $200 billion annually? And growing? Learning about the market will help you once you’ve opened your car repair shop.
Get in Touch
If you would like to learn more about opening a car repair shop, please contact us today.Back