How to Start an Auto Repair Shop That Profits

Creating a Business Plan

There are online help guides to prepare a business plan. The US Small Business Administration (SBA) provides a template for business plans. Have these details ready:

• Summarize why you expect your auto-repair business idea to be a success
• Describe in detail the problems your shop will solve
• Research the market- what’s your competition doing?
• How will you organize, legally? Uncle Sam will need to know. Will you be a sole proprietor, LLC, C or S Corp? There are taxes to be paid!
• Outline your services
• How will you sell yourself? Sales and Marketing Plan
• Website Development/ Social Media Advertising
• Get Customers in the door and retain them
• Outline your funding requirements for 5 years (Bank account, credit)
• Know your costs and how you will pay for them

What to Keep in Mind When Starting an Auto Repair Shop

Remember the expression, “…you’ve got to spend money to make money”? While estimates vary depending on the size of your shop, let’s crunch the numbers. Initial start-up could cost in the neighborhood of $50,000. There’s a few more items in the red column, add on: Labor costs including mechanics and administrative will be $25-$100/hour per person. Insurance will cost about $4,000 a year and budget up to $20K per month for overhead like supplies, equipment, inventory, etc. Don’t forget your certificate of occupancy, permits, licenses, real estate costs, and insurance!

Building brand recognition and trust takes time. During this period, businesses may need to sustain ongoing expenses without immediate returns. This requires financial patience and resilience, which can be particularly challenging for new businesses with limited resources. 

Once all of those positives and negatives are accounted for, there is still the hassle of creating a website and setting aside a budget for marketing expenses as well. Overall, there could be a total investment of hundreds of thousands of dollars. With so many hurdles to overcome and unknown or unplanned expenses, it is no surprise that so many independently owned businesses struggle to succeed. 

Consider Auto Repair Franchising

Another option that could be worth your while is to consider buying into an existing franchise in the auto repair industry. AAMCO prides itself in providing a full investment picture, taking guesswork out of the equation and preparing franchisees for a total investment. With that, you are the owner of a highly recognized brand which has been around more than 60 years. Franchisees receive on-going education in the ever-changing world of auto repair as well as looking towards the future of the industry. Your investment will cover all the details required to open a franchise following the AAMCO business model. 

In addition to the brand strength franchising can offer you, AAMCO franchisees acquire numerous advantages over independent auto repair business owners. The model itself has proven to be resistant to the challenges of recession. Those reasons for confidence only add to the industry-leading operational support. 

Not only do franchisees gain access to proprietary operational systems but also the website and marketing material that are so often neglected. Entrepreneurs also receive assistance through the real estate process and training on the latest trends and cutting-edge technology – a necessity since vehicles are continually being updated and improved.

AAMCO franchisees invest in a proven brand and a business model that is set up for future success. As cars stay on the road longer than ever, complex repairs are growing in importance. Alongside those trends, the total car care expertise synonymous with AAMCO perfectly positions its centers to attract business around emerging technology such as electric or hybrid vehicle repair moving forward. 

AAMCO Franchise Opportunity

AAMCO is a well-known automotive franchise specializing in car repair, especially transmissions. People trust them for their expertise in complex car repairs. AAMCO’s successful business model, along with training and support, gives franchisees a profitable and lasting chance for success.

The widespread national presence of AAMCO franchises underscores the brand’s scale and universal appeal. AAMCO is the top leader in transmission repair franchises. They prioritize customer trust, strategic marketing, and strong support for franchisees. 

To learn more about starting a successful transmission repair franchise, request a free franchise information report.