What Makes a Successful Auto Repair Business Plan?
What makes a successful auto repair business plan? Well, an auto repair business repairs and services automobiles. Customers come into your auto repair business, you repair their automobiles, and they pay you money. Then you get rich. And there you have it. That’s what makes a successful auto repair business plan. Easy right? If only.
Auto Repair Business Plans
If it were all that easy, we’d all be wealthy auto repair business owners. Of course, it’s not that easy. The auto repair business does have the advantage of being a lot simpler and easier to understand for the average person than some other businesses. But that doesn’t mean running an auto repair business is easy. Yes, we all understand the basic concept, but what more do fledgling or aspiring auto repair business owners need to know?
Auto Repair Franchises vs. Independent Businesses
The business plans for a franchise will always be slightly different from an independent business. A franchisee needs to factor in the (ideally modest) royalty fee that they need to pay to the franchisor. But the independent auto repair business owner has a lot more leg work to do. First, they’re all alone, so there’s no guidance or training supplied from a franchisor.
Second, you must assume it will take a long time for your business to really get off the ground. You need to build up brand name recognition and get your name out there to your customer base. Of course, buying into an already trusted brand allows you to skip this step entirely. Which is another reason why franchisees have a head start over independent business owners.
Lastly, the best and most successful franchised companies offer their franchisees something invaluable that independent businesses cannot. Franchisors can leverage their buying power of all their franchisees in order to get reduced prices on parts and equipment. Parts and equipment are the biggest recurring expenditures of an auto repair business, so if you can save money on this, you have a much better chance of formulating a successful auto repair business plan.
Because auto repair businesses provide a service along with their products, customer satisfaction is of the utmost importance. The average age of a vehicle on the road today is 11.5 years old. Most American families own at least one vehicle. The age at which most states allow people to drive is 16 and a lot of people drive into their 70s. All of this means that if you impress a customer the first time, they walk into your auto repair business, you could have a customer for a decade or maybe five or six decades.
Clearly, you must make sure that your customers are happy. And here again we see another advantage of the auto repair franchise business plan. If somebody likes the service,they get at a franchised auto repair business and then move, they’re likely to look for another franchise location of that same company in their new home town. But that doesn’t mean you don’t need to advertise. You do. A good auto repair business plan will factor in advertising costs, especially early on when advertising is most important.
If you would like to learn about Tuffy Tire & Auto Service’s business plan, please click here.Back