This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. The increasing lifespan of late-model cars and light trucks will further increase demand for qualified workers. Learn about trends in the auto repair business and where to find more info about how to open your own auto repair business. Slower economic activity during the recession led to fewer businesses using vehicles to conduct trade, however a resumption of economic growth since 2010, has seen this segment strengthen. Company) is a new york based corporation that will provide automotive repair services and part sales in its targeted market.
As such, management does not anticipate that negative changes in the overall economic climate will impact the companys ability to generate revenues and maintain profitability Buy now Auto Repair Shop Business Plan
. About 130,000 companies in the us are involved primarily in auto repair, with combined annual revenue of 65 billion. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. Doe has more than 10 years of experience in the automotive repair industry. Separate industry profiles cover automotive oil change & lubrication services and car washes, which are included in the automotive repair and maintenance services industry.
The company is registered as a corporation in the state of new york. The industry is highly fragmented the 50 largest companies generate less than 10 percent of revenue. This segment includes businesses that depend on motor vehicles for the daily running of the company, as well as taxi and rental car companies, and truck businesses many of whom can not afford in-house repair and maintenance shops Auto Repair Shop Business Plan Buy now
The business generates income from both the sale of the mechanics labor and the sale of after-market parts which may be needed for the repairs. The household market segment has increased slightly as a percentage of total revenue over the past 5 years. This section of the analysis will detail the economic climate, the automotive repair industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Demand depends on car usage and the number of cars on the road. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
Doe brings the business to profitability, he intends to further expand the after-market auto parts revenue center and increase the sports tuning services, which command higher premiums that standard automotive repair Buy Auto Repair Shop Business Plan at a discount
The company was founded in 2009 by john doe. Doe intends on using a number of marketing strategies that will allow the automotive repair shop to easily target men and women within the target market. Currently, the economic market condition in the united states is in recession. Below are the expected financials over the next three years. In this section, describe the pricing of your services and products.
The majority of job openings will be in automobile dealerships and independent repair shops, where most service technicians currently work. Below is a breakdown of how these funds will be used if the business is very successful, mr. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows Buy Online Auto Repair Shop Business Plan
Companies with higher revenue typically operate more than one location, with revenue per location close to 1 million. The company will have the ability to service most domestic and foreign automobiles. Advances in auto manufacturing technology are having many impacts on the auto repair business hybrid designs (and other new systems) require additional training for mechanics sometimes these changes can give auto dealers an advantage, if their teams are trained on a more regular cycle than the local auto repair shop. The primary service offered by the company is the general repair of automobiles for the general public. Companys targeted market via the use of flyers, local newspaper advertisements, and word of mouth Buy Auto Repair Shop Business Plan Online at a discount
This business plan assumes that the business will receive a 10 year loan with a 9 fixed interest rate. You should provide as much information as possible about your pricing as possible in this section. Large companies are more likely to use expensive diagnostic equipment efficiently and benefit from advertising, but the economies of scale arent large. This includes greater development of after-market tuning and performance enhancing services which generate a larger margin that standard automotive repair. These strategies include traditional print advertisements and ads placed on search engines on the internet.
About 130,000 companies in the us are involved primarily in auto repair, with combined annual revenue of 65 billion Auto Repair Shop Business Plan For Sale
If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with serviceproducts that are of better quality or less expensive than your competition. However, automotive repair shops operate with great economic stability as vehicles are necessity and very few people have the ability to fix their own vehicles beyond very minor repairs. The company will also develop its own online website. However, continuing consolidation in the automotive industry may lessen the need for new mechanics. Employment of automotive service technicians and mechanics is expected to grow 17 percent from 2010 to 2020, about as fast as the average for all occupations For Sale Auto Repair Shop Business Plan
Doe may seek to sell the business to a third party for a significant earnings multiple. The us automotive repair and maintenance services market will grow four percent annually. The company will generate revenues from both the sale of mechanic labor and from after-market replacement automobile parts. Management anticipates that its expected service clientele will be a local, middle to upper middle income earning male and females between the ages of 25 and 75. Employment of automotive service technicians and mechanics is expected to grow 17 percent from 2010 to 2020, about as fast as the average for all occupations.
However, the needs-based nature of the industry, a recovering economy that is helping grow personal income and reduce the unemployment rate is expected to produce average annual revenue growth of 1 Sale Auto Repair Shop Business Plan