How to write a Auto Repair Shop

Business Plan

Executive Summary

When writing a business plan for an auto repair shop, start with the executive summary. 

Think of the executive summary as an introduction to your business plan. It sets the tone for the entire plan and provides readers with the most important information. 

Your executive summary should inform readers who you are, what you plan to do, and how you plan to do it. In this case, it's to open an auto repair shop.

Keep this part of your plan one page long. These are some elements that should be included in your executive summary:

• General information about your auto repair shop (business name and location)
• A concise description of the services you're offering
• The current state of operations (if your auto repair shop is already in business)
• A financial summary (a brief overview of financial projections)
• Unique selling proposition (what makes your shop stand out from competitors)
• Future vision
• Funding requirements (if applicable) 

An executive summary is supposed to say, "Hey, this is who we are and what we plan to do. With your help, we will do it in XYZ ways."

Starting with such an important part of your plan might seem daunting. Some people like to leave the executive summary last when writing their business plan. 

This way, you will know which areas to focus on, and you will already have all the key info. 

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Business Description

Giving a thorough description of your business should be the next part of your auto repair shop business plan.

But this part of your business plan involves more than just stating what you do. There are other key elements you must add to make the plan fool-proof, such as:

1. Legal structure 
2. Mission statement 
3. Vision statement
4. Short-term and long-term goals
5. Critical success factors

First, discuss the legal and ownership details of your auto repair shop. State whether it's a sole proprietorship, partnership, or corporation.

The mission and vision statements are very important. You should take your time to think of something memorable. 

The mission statement should capture your business's purpose and core values. Here's an example of a great mission statement for an auto repair shop:

Our mission is to provide high-quality, reliable, and transparent auto repair services to our community. We are committed to ensuring every vehicle we service is safe and roadworthy while delivering exceptional customer care. We strive to build long-lasting relationships with our customers based on trust, affordability, and efficiency.

The same goes for the vision statement, where you have to explain your vision for your business. 

Include a special section for your short-term and long-term goals. Your short-term goals illustrate your plans for the next year. Your long-term goals refer to what you want to achieve in the next few years.

Lastly, add a section on critical success factors, which you can present like this:

Market Analysis

The market analysis will be one of the focal points of your auto shop business plan.

In this part of your business plan, you have to present your research on your market or industry. 

Understanding your market is crucial if you want your auto repair shop to succeed. These are some points to focus on:

• Target market analysis
• Industry overview
• Marked need
• Competitor analysis
• Market trends
• SWOT analysis

First, you will want to identify and describe your ideal customers. Tell the readers who they are, where they live, and what their needs are in terms of auto repair services. 

You will also want to analyse your industry. This can include industry size and growth, as well as the most common industry trends. 

One of the most important parts of this section is competitor analysis. This includes your direct and indirect competitors.

Direct competitors are other auto repair shops in your area. For each, assess their strengths, weaknesses, pricing, service offerings, customer reviews, and reputation.

Indirect competitors can include mobile mechanics, DIY auto repair, or online diagnostic tools.

Use tables and charts to make complex data easier to understand. For example:

Doing market research is not an easy task. You need to gather data about your potential customers, competitors, and industry trends. 

It's best to leave it to someone who understands how the market works and how to analyse it effectively.

Organisation and Management 

The next part of your mechanic shop business plan is the organisation and management. 

It outlines how your business is structured, who is running the business, and the roles and responsibilities of the team.

When writing this part of your plan, make separate sections on:

1. Business structure
2. Ownership details
3. Management team
4. Organisational structure
5. Staffing needs

Provide the names of the owners and their backgrounds. For example, experiences, ownership percentages, and their roles in the company.

Describe the key members of your management team. This includes their roles, qualifications, and experience. For example:

John Smith – Owner/Shop Manager: John will oversee daily operations, manage the team of technicians, and ensure the quality of all repairs. He is ASE certified and has 15 years of experience managing repair shops, with expertise in diagnostics, engine repairs, and transmission systems.

You can also create an organisational chart that visually represents the hierarchy of your team, showing who reports to whom. 

Here's a great example:

Outline the staffing requirements for your auto repair shop. 

This includes the number of employees, their roles, and the skills or qualifications needed for each position.

• Types of employees

List the roles you will need (e.g., mechanics, service advisors, customer service representatives, office staff).

• Employee qualifications

Specify the necessary certifications (e.g., ASE certification for mechanics), experience, or skills required for each position.

• Training and development

Include any plans for staff training. Also, talk about certifications necessary for high-quality services and compliance with industry standards.

Products or Services

In this section, you should list all the services your auto repair shop offers. These could include:

1. General maintenance: Oil changes, tyre services, brake inspections, etc.
2. Diagnostics and repair: Engine repair, transmission services, electrical system repair.
3. Specialised services: Hybrid/electric vehicle repairs and fleet maintenance.
4. Preventative maintenance: Regular maintenance services to prevent breakdowns. 
5. Other services: Towing, vehicle inspections, or partnerships with local dealerships.
6. Emergency and roadside help: Any towing or emergency repair services.

Here's how you can quickly recap your auto repair services:

Our auto repair shop will offer a wide range of services, including routine maintenance, engine diagnostics, brake repairs, tyre services, and electrical system repairs. We will also specialise in hybrid and electric vehicle repairs to cater to the growing number of environmentally conscious drivers in the area.

You can also break down the specific services you offer and describe them in detail. 

Explain if you have service packages and pricing. Will you offer any bundled services or maintenance packages? 

They can be an attractive selling point for customers looking for convenience and savings.

If you have partnerships with auto part suppliers or other businesses, mention them here. Reliable suppliers make sure you have access to quality parts and materials.

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Marketing and Sales Strategies

The marketing and sales section is one of the most important parts of your auto repair shop business plan.

It shows how you will attract and retain customers, build your brand, and generate revenue.

First, explain your marketing strategy in detail, including:

• Marketing channels
• Promotional strategies
• Success metrics 

When listing your target marketing channels, make sure to list both online and offline channels. 

Online marketing can include social media marketing, online advertising, and SEO. Offline marketing refers to fliers, brochures, local partnerships, and referral programs. 

Both can be effective for advertising auto repair services. 

Next is the sales strategy. Here, you have to explain how you will convert leads into paying customers, maintain customer loyalty, and increase sales over time.

Here are some points to include in your sales strategy:

1. Customer acquisition

Explain how you will attract new customers through marketing efforts, promotions, or partnerships.

2. Customer retention

Outline strategies to retain customers. These could include loyalty programs, excellent customer service, and follow-up communication. For example, reminders for regular maintenance.

3. Upselling and cross-selling

Train staff to recommend extra services or products based on vehicle needs. For instance, offering tyre rotations with an oil change or suggesting a maintenance package.

4. Service packages

Offer discounted bundles of services to increase customer spending and satisfaction. These could include a basic maintenance package. This package can include an oil change, tyre rotation, and brake inspection.

Operations Plan

Your operations plan lists the services and activities that will take place in your auto repair shop every day.

Here, you can focus on your staff, the equipment, and workflow.

Add the following sections to this part of your business plan:

• Location and facilities
• Operating hours
• Equipment and tools
• Suppliers and inventory management
• Staffing and roles
• Workflow and customer service
• Health and safety procedures

First, describe where your auto repair shop will be located. Provide necessary details about the facility.

Then, you can add the shop's operating hours, including on the weekends and holidays.

As an auto repair shop owner, you will need to have special equipment and tools for everyday tasks. This can include diagnostic tools, machinery, lifts, and specialised equipment for particular types of vehicles.

Make sure to outline the types of equipment and tools you will need for smooth operation.

Discuss how you will manage your parts and supplies, as well as who your key suppliers will be.

Next, devote a section to staffing and roles. Outline the key positions and responsibilities required to run the shop, including how many staff members you will need to hire.

You will also want to describe how your shop will handle the flow of customers and vehicles from the time they enter to when they leave. 

Explain how you will comply with health and safety regulations to protect your employees, customers, and the environment.

Financial Plan

You need a financial plan if you want to secure funding for your auto repair business. That's why writing an effective business plan is so important. 

Your financial plan should include the following elements:

1. Startup costs
2. Revenue projections
3. Operating expenses
4. Cash flow projections
5. Break-even analysis
6. Profit and loss statements
7. Balance sheet
8. Funding requirements 

Start with the costs related to getting your auto repair shop in business. This includes everything from lease payments to equipment purchases, marketing, and working capital.

Then, estimate your expected revenue from auto repairs and services. 

This section should forecast monthly and annual revenue. It should be based on factors like the number of customers, average service ticket size, and pricing strategy.

Include all fixed and variable expenses required to run your business. 

These are ongoing costs that don't directly relate to individual services. But, they are required to keep your shop open.

Include tables for cash flow projections, profit and loss statements, balance sheet, and break-even analysis. 

All these revenue projections are equally important for your auto shop business plan. 

But the most important element might be the funding requirements. 

If you are seeking external funding, clearly state how much money you need, what it will be used for, and how you plan to repay it.

If you're seeking funding, this table will help investors better understand your funding needs. 

Conclusion

Finish your auto repair shop business plan with a good conclusion.

This final part of your business plan is used to:

• Provide a final summary
• Reinforce the key points made throughout the document
• Bring attention to your auto repair business's potential
• Reiterate your funding needs 

You can also write a section on future milestones, which you can list in a table, like the one in our free universal business plan template:

Don't forget to finish off with a CTA, especially if you're seeking funding. 

Appendix

Adding an appendix to your auto repair shop business plan is not mandatory. But, if you'd like to attach supporting documentation, this is where you can do it.

Add an appendix if you want to attach:

• Resumes of owners/managers
• Lease agreements or facility photos
• Equipment lists and vendor contracts
• Licenses and permits
• Insurance information

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