This is a very lucrative business to start, you will employ qualified mechanics to offer exceptional services to car owners and companies with fleets. Other services a mechanic shop may offer to consumers include; tint installation, stereo and alarms, and many other aftermarket vehicle upgrades. If you think a mechanic shop business is right for you don’t hesitate to put things together to see your business operational.
These are some of the fundamental steps to follow when starting up a car mechanic shop. There is more than meets the eye before your business becomes operations. Aside from paying government legal fees here are some other steps you should follow for the success of your business:
Draw a business plan: When you have a business idea, it is a good practice to put it down as a business plan on paper. The business plan will help you in many ways such as when sourcing for extra financial support from lenders and banks. A clear business plan is beneficial to any entrepreneur. You will be able to highlight some of the specifics regarding your business plus, you can uncover the fear of the unknown. In your business plan, you will highlight some of the important features that will help you along the way. For example; startup and running costs, target market, how to charge consumers reasonably, and most importantly the name of your business startup. Regarding the cost factor; here are some of the items you should consider:
- Business license
- Certifications
- Insurances
- Hydraulic mechanic lift
- Diagnostic machine
- Shop rent
- Mechanic toolset
Ongoing expenses include salaries for employed automobile mechanics, energy bills, and shop rent if the owner is renting the space.
Target market: The target market for a mechanic shop includes car owners with serviceable or faulty vehicles. A mechanic must fix these problems for car owners to enjoy their ride. Customers with serviceable contracts are some of the best clients a mechanic shop can have while there are one-time customers who come once or twice and they vanish into the thin air or look for services elsewhere convenient to them.
Cashflow for a mechanic shop
A mechanic shop charges clients either per hour worked or a flat rate fee depending on the type of repair done. Some services offered are charged based on spare parts and labour costs. While some simple routines such as changing engine oil attract a flat-rate fee. How a mechanic shop charges customers depends on the location and the type of business. Mechanic shops located in cities charge more than those located in rural areas while established dealership companies charge more than individual shops.
How to make a mechanic shop more profitable
Starting up a car servicing business is not an easy thing but making it more profitable is just a matter of specialization. Converting your shop to a specialist repair shop will attract more customers and also improve the skills and experience of mechanics employed bringing in steady income per month. This is viable if your shop is the only specialist shop in the area and it will build your business name to go beyond borders. It is also safe for a business owner to register the shop as a limited company to distance himself from the liabilities of the shop. Also, separate a business bank account from personal accounts for the strict management of cash flow and profits gained every month.