What Is the Business Plan of an Auto Repair Shop?

What Is the Business Plan of an Auto Repair Shop?

If you are looking to get into the auto repair business, you should probably know the business plan of an auto repair shop. On the surface, the auto repair business plan might seem obvious: people bring in their automobiles and the repair shop repairs them. Simple, right? Well, yes and no.

One advantage an auto repair business has over other businesses is that it is readily understandable to the public. People know that automobiles need repair and maintenance and most people can’t do most of those repairs themselves, so they need an auto repair shop. This is an advantage over, say, something like a tech startup, whose product or service might confuse the average person. Having said that, you really ought to consider all the details of auto repair business plans.

Auto Repair Business Model

As alluded to above, the basics of the auto repair business model are straightforward. People need their vehicles to be repaired and maintained, so they bring them into auto repair shops for those services. At the heart of all auto repair businesses, that is what happens. But what separates the truly successful auto repair businesses from the middling or even the failed ones?

Auto Repair Franchises vs. Independent Shops

One broad distinction to make is auto repair franchises vs independent auto repair shops. At their core, an auto repair franchise and an independent shop aren’t that different. They both offer similar services and compete for the same customers. A franchise, however, has several advantages. First, it has built-in brand name recognition. An entrepreneur who has invested wisely in a trusted brand has a big leg-up on a no-name independent shop. Furthermore, the franchisee can lean on the franchisor for guidance, training, and an established template. There are other perks, too, of being a franchisee, such as preferred vendor programs, which allow franchisees to get parts and equipment cheaper than the average independent auto repair business can. When working with a competent and trusted franchisor, these perks are well worth the royalty fee.

From the franchisor’s perspective, the better the franchisees do, the more money they make. In some cases, franchisors can be less than honest and are just looking to make money on franchising fees. These are not good franchisors. And their businesses often don’t stand the test of time. A smart franchisor knows that the more help they give to their franchisees, the better the franchisees will do, and therefore the better the franchisor will do both in terms of the royalty fees they receive plus the fact that their brand is now more attractive to new potential franchisees.

Repeat Business

An integral part of any auto repair business model is getting as much repeat business as possible. The average American is holding on to their vehicle longer than before and this has increased the demand for auto repair businesses. Older vehicles need more maintenance and repair. An auto repair business that does their best to wow their customers can turn a one-time job into a lifetime customer.

Get in touch with Tuffy Tire & Auto Service

If you would like to learn more about the auto repair business model of Tuffy Tire & Auto Service or if you would like to get started on your application to own your own Tuffy franchise location, please click here.