Building an auto shop is complex and will test the resolve and determination of any mechanically-minded individual. A meticulous eye for detail will be required and a solid understanding of financial management will also be conducive to a successful project. Profitable auto shops do not necessarily have to be the biggest. As long as staffing needs are met effectively and a regular volume of work can be assured, an auto shop can start off on a very simple basis with a view to expand at a later stage.
Study the demographics of your local area and determine how much business an auto shop will be able to generate. Investigate the number of local competitors already running businesses and pay attention to traffic levels and vehicle use. Establish the type of location where you would like to set up in and spend some time searching for a suitable lease property.
Establish how much money you would like to invest in your new business or, if money is tight, find out if there are any loan options available for business start-ups. Draw up a solid business plan and make an appointment at your bank to speak to a business management adviser. Listen to any ideas that the adviser gives you and try to incorporate them into your own plans. Make sure the business plan includes realistic financial projections that can be substantiated if you are planning to apply for a loan.
Make the lists all the equipment you are going to need. Most also shops will require a two or four-post ramp for lifting cars of the ground. For engine tuning work, a rolling road will also be required. Remember to allocate money for essential tools. Many modern vehicles are diagnosed through the Engine Control Unit (ECU) so calculate the cost of code-reading equipment into all of your financial estimations, and remembering that some of these items will need to be purchased in multiples, depending on the size of your staff. Don't forget that auto shop basic supplies like oils, cloths and hand washing solutions.
Consider where your work is going to come from while your reputation is being built. It is highly unlikely that you will find a stream of customers beating their way to your doors as soon as they open. Investigate local companies within your area who have their own fleet of vehicles and contact them with a proposal for preferential rates if they use your company for all of their mechanical requirements. Also talk to local insurance companies to see if any mechanical-related work can be carried out through your premises.
Determine how your auto shop build will be staffed. If you are going to carry out all of the mechanical repairs yourself, consider hiring an additional person to take care of telephone calls and paperwork. A family member is often ideal while a business is just starting up. If you are intending to hire mechanics to carry out the work for you, make sure interviews contain a series of open-ended questions to get applicants talking. In a small business situation, managers and employees have to work together closely, so communication levels must effective. Utilize your own time wisely to chase down work and liaise with clients so that your business can continue to grow.
