5 Things You Should Know Before Opening A Car Repair Shop
Opening a car repair shop is a great way to establish a successful career of business ownership. But you need to know what you’re doing. Here are five things to know before opening a car repair shop.
1. A Car Repair Franchise Is Much Likelier To Succeed Than An Independent Car Repair Shop.
Before opening a car repair shop, you need to decide if you will start your own independent car repair shop or if you want to purchase a car repair franchise. An independent shop might be more romantic, and you won’t have to pay a franchising fee for it, but the benefits end there. It is much more difficult for an independent car repair shop to succeed than a car repair franchise. With a car repair franchise, you get brand name recognition, training, ongoing support, and other advantages.
2. Car Repair Shops Require Significant Investment.
There are a lot of businesses you could open or franchises you could buy and many of them will cost less than a car repair shop. Opening a car repair shop costs a lot of money. Buying a car repair shop from a successful franchisor could cost between $220,000 and $420,000, depending on where you are located and the size of your location. And the total liquid capital needed ranges from $65,000 to $165,000. These are large numbers. Financing is always an option and you could also save up. But are car repair shops worth that high cost?
3. Car Repair Shops Have Never Been In Higher Demand.
Not every single car repair shop is going to succeed, but they have a higher chance of success than almost any other business. That’s because of the record amount of demand for car repair shops. There are a record number of automobiles in the US today, but more significantly, the average automobile on the road is older than ever before. Older cars need more repairs than newer ones, hence the record demand.
4. A Car Repair Shop’s Biggest Recurring Investment Is On Replacement Parts.
So, opening a car repair shop costs a lot of money, but it’s worth that investment. But how much recurring investment does it require? Here lies yet another advantage of buying a franchise from an established automotive franchisor over opening an independent car repair shop. Good franchisors have preferred vendor programs wherein they leverage buying power of all their franchises to help you to buy high-quality replacements parts—generally the largest recurring expenditure—for reduced prices.