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Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

  • Brake repair
  • Powertrain repair
  • Muffler & exhaust repair
  • Heating repair
  • Electrical system repair
  • Wheel alignment and repair
  • Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

  • Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
  • Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
  • The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

  • Auto repair shop build-out: $100,000
  • Equipment, supplies, and materials: $40,000
  • Three months of overhead expenses (payroll, utilities): $90,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

  • Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
  • Has begun negotiations to purchase the warehouse that will become the shop.
  • Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
  • Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

  • Individual vehicle owners
  • Delivery drivers
  • Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

  • Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
  • Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

  • Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

  • Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
  • Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
  • Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
  • Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average number of vehicles serviced per month: 450
  • Average fees per month: $15,000
  • Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

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Auto Repair Shop Business Plan

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Not everyone has the talent and technique to repair and restore cars, and if you have those skills, you might have thought of starting an auto repair business.

After all, most people prefer the autonomy having a business offers. But with autonomy comes responsibility. And to fulfill that you’ll need an auto repair business plan.

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample auto repair shop business plan  created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of  services-related business plans.

Industry Overview

In 2021, 162000 establishments had a combined annual revenue of $115 billion in the US auto repair industry.

The growth has mainly come from the increasing number of cars on the road. Also, the growing mileage consumption has played a huge role.

Opening up a car repair shop requires you to pay for construction costs, labor, and equipment.

As the auto repair business is a profitable one it attracts a lot of competition, and to stay ahead of it you’ll need skills and a proper business plan.

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Things to Consider Before Writing an Auto Repair Business Plan

Select what area of repairs you’ll work on.

Auto repairs shops take up a variety of jobs like repairing and painting car bodies, transforming old vehicles, or doing tire and mechanical repairs.

So, it is necessary to decide what you want to do before getting started. Specialization helps you get more expertise in the area and makes you more reliable for the job to customers.

Pick a suitable location

An accessible location is a must for an auto repair business. Your location would also rely on the niche you’ll be working on. Tire repair services are usually on the road to make them accessible for emergencies.

While transformation services are mostly opened inside the city for easier pickup and drop.

Hire an efficient team

An auto repair business’s success relies heavily on the quality of services you provide. That helps you retain customers and get more. Hence, it is important to have a team that can provide quality services to your customers.

Apart from that, it is also important to have a team with good technical and soft skills to understand your customer’s problems better.

Formulate marketing strategies

Marketing your business is essential to attract customers and building your brand’s identity. Hence, it is important to have a marketing strategy for all the platforms your target audience uses to find repair services.

Chalking out Your Business Plan

A business plan helps you leverage the best of your resources, and get the maximum out of your efforts.

A business plan also comes in handy if you need funding or loans for your business, as investors and banks prefer to see a business plan before they give the money.

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample auto repair shop business plan template for you to get a good idea about how a perfect auto repair shop business plan should look like and what details you will need to include in your stunning business plan.

Auto Repair Shop Business Plan Outline

This is the standard auto repair shop business plan outline which will cover all important sections that you should include in your business plan.

  • Keys to Success
  • Mission Statement
  • Vision Statement
  • 3 Year profit forecast
  • Business Structure
  • Startup cost
  • Products and Services
  • Market Trends
  • Target Market
  • Market Segmentation
  • SWOT Analysis
  • Sales Strategy
  • Local Publications
  • Community Events/Organizations
  • Commuter Advertising
  • Customer Loyalty Programs
  • Direct Mail
  • Pricing Strategy
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

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Download a sample auto repair shop business plan

Need help writing your business plan from scratch? Here you go;  download our free auto repair shop business plan pdf  to start.

It’s a modern business plan template specifically designed for your auto repair shop business. Use the example business plan as a guide for writing your own.

After  getting started with Upmetrics , you can copy this sample auto repair shop business plan template into your business plan and modify the required information and download your auto repair shop business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Download Auto Repair Shop Business Plan

How to write an effective auto repair shop business plan

How to write an effective auto repair shop business plan

Key takeaways

  • An auto repair shop business plan will provide a blueprint for the launch of your business and increase your chances of success
  • Investors and lenders use business plans to determine whether your auto shop can reach profitability
  • There are seven main sections of an auto shop business plan that can help clarify the vision of your business

Want to start your own auto repair shop but don’t know where to start? Before jumping ahead and launching your new business on a whim, consider investing the extra time and effort in writing an auto repair shop business plan .

A business plan not only provides a roadmap to grow your business , but it actually increases the chances that your endeavor will succeed. Business owners who write a business plan generally grow 30% faster than businesses that don’t.

Roll up your sleeves and use this guide as your very own auto repair shop business plan template .

7 core sections of an auto repair shop business plan

Auto repair shop mechanic working underneath suspended vehicle

One of the main reasons for coming up with a business plan is to show readers—especially lenders and investors—that your business model is financially sound and can be profitable. It’s also a guide that helps you organize your thoughts, set goals, and clarify your vision. Essentially, it’s your business blueprint.

Beyond that, you can use a business plan to get feedback on your idea and determine whether it’s worth pursuing. Third parties, like other auto shop owners or financial advisors, can also read through your business plan and give you any suggestions or advice.

An auto repair shop business plan should include the following sections:

  • Executive summary
  • Business description
  • Market analysis
  • Services or product line
  • Operations and management
  • Marketing and sales
  • Financial factors

Each section serves a specific purpose and will help you plan your car repair business from every angle.

1. Executive summary

The executive summary kicks off your auto repair shop business plan and provides an overview of what’s to come. It should be clear, concise, and engaging enough to encourage people to read the rest of your business plan .

While this section is a culmination of all your research, keep it brief and to the point. Your executive summary should include the following:

  • Mission statement
  • Description of your business
  • The leadership team and number of employees
  • Auto repair services you offer
  • Where you’re doing business
  • Why you’ll succeed

Even though the executive summary is the first section of your business plan , it’s best to write it after you’ve completed all the other sections. This way, you have a thorough understanding of all aspects of your plan before you summarize it.

2. Business description

The business description is an overview of what your business actually does. It should cover:

  • What makes your company unique
  • Your competitive advantages
  • The customers you plan to serve

Describe the strengths of your business model and any competitive advantages your auto shop has. Do your mechanics have many years of experience and training that other local shops may not have? Were you able to secure prime real estate in a high-traffic area that can bring in more business?

You should also explain your target market and which customers will find value in your automotive services . For example, some auto shops may focus solely on everyday customers who want to service their personal vehicles. Other auto shops may aim to service commercial fleet vehicles for other businesses like electricians or landscaping companies.

3. Market analysis

It’s imperative to understand the state of the auto repair industry before you decide to launch your own small business . This section of the business plan provides proof to readers that there’s a healthy demand for your business to be successful.

First, determine if such a demand exists for a new automotive repair business in your area. You can come up with a general market analysis by tracking how many auto businesses are operating in your region and if they have an influx of customers.

The market analysis section should also include a competitive analysis. Find out what your competitors are doing right and opportunities for improvement. Scanning through Yelp reviews is an easy way to gauge the strengths and weaknesses of other car repair shops in your area. You can mimic tactics that are successful and capitalize on their areas of weakness.

Browse through our guide on how to do market research for helpful ideas on conducting market research for your business plan without having to spend a fortune.

4. Services or product line

Readers need to know how your business will make money. This section of your business plan is where you highlight the specific services and products that will help you reach profitability.

For example, maybe you want to offer general auto services, or perhaps you decide to specialize in certain areas—like transmission or engine repair , oil changes , or auto body repair. Be specific if you plan on serving a niche that sets you apart from competitors.

You can also include a list of different auto parts or products that you expect will generate revenue. For example, you can include price estimates of specific products, such as vehicle headlights, engine oil, or oil filters.

5. Operations and management

The operations and management section discusses what type of business structure you will form and who will be running your company.

Start by explaining the legal business entity you will be creating. You’ll have the option of forming a sole proprietorship , partnership, limited liability company (LLC) , or corporation. You can find more details in our guide to registering your business .

You can then lay out an organizational chart or company summary that shows the hierarchy of leadership in your car repair business. You’ll also want to highlight the years of experience each employee has and what specialties they bring to provide high-quality work and help your company succeed. If you’re the only employee, provide a professional overview of yourself and why you’re qualified to make your auto shop a success.

6. Marketing and sales

Readers will be interested in your auto repair marketing plan and how you expect to find new customers—specifically, which traditional and digital marketing channels you’ll use to draw up business.

When you start an auto mechanic shop, you need to advertise your business to not only attract new customers , but to also retain them and turn them into repeat buyers.

A professional-looking website will be a main area of focus. It will serve as the online face of your company and hub for incoming traffic from other digital marketing efforts, such as:

  • Email marketing
  • Referral program
  • Pay-per-click digital advertising
  • Social media marketing
  • Claiming your Yelp Business Page
  • Search engine optimization (SEO)
  • Content marketing

You can also use more traditional marketing ideas to advertise and grow your auto shop like business cards, referral incentives, or loyalty programs. In this part of your business plan , explain how you will use each of these different marketing channels to earn your first customers and get your business off the ground. For more ideas, see our guide on affordable auto repair marketing ideas .

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7. Financial factors

Those reading your auto repair shop business plan —especially lenders and investors—will need to know if your new business is financially viable. This section will include a financial plan and tangible evidence that your business is capable of succeeding.

Businesses that are already up and running can provide income statements, balance sheets , or cash flow statements. For those that haven’t launched yet, you can produce financial projections based on your startup costs and pricing —including equipment, tools, property rental, and monthly utilities. Once you have a detailed overview of your startup costs , you can set the pricing for your small business services .

This is also where you would include a funding request if you need one from an investor or lender. Explain the amount of funds you’re seeking and how you’ll allocate any investment dollars. On top of that, give an estimate of when you will reach profitability based on your financial projections.

Drive your auto repair business to success

You should aim to be as thorough as possible when writing your own business plan . If you put in the hard work upfront, your business will be better off in the long run.

Start going through each section of your plan and provide as much research and data to support your findings. Also, remember that it makes more sense to write your executive summary after completing all other sections.

Lastly, put yourself in an investor or lender’s shoes. What would you be looking for if you were thinking about investing in a small auto repair business? Make sure you can answer these six questions when starting your own business and you’ll be off to a great start.

The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.

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How to write a stellar business plan for an auto repair shop

auto repair shop business plan

Are you passionate about fixing cars and restoring them to their former glory? If so, you may have been dreaming about setting up your very own car garage for some time. Before fully taking the plunge, however, you'll need a tailor-made business plan.

To guide you through this process, we've written the guide below to offer our top tips for making your auto repair shop business plan a reality.

On the menu:

  • Why do you need a business plan?
  • What type of auto repair shop should I open?
  • What do you need to create your auto repair shop business plan?
  • What is the financial forecast for an auto repair shop?
  • What does the written part of an auto repair shop business plan look like?
  • What tool should I use to write my business plan?
  • Business plan template of an auto repair shop.
  • Three things you should know before writing an auto repair shop business plan

1. Why do you need an auto repair shop business plan?

Did you know that 60% of all new businesses in the UK are likely to cease trading within their first three years? Durham City Incubator believes that a "lack of business planning" is the number one reason for the failure rate being so high.

Writing out an auto repair shop business plan is, therefore, essential for your new business.

An auto repair shop business plan allows you to identify the level of initial financing that is required. It also helps you:

  • Anticipate any potential cash flow problems along the way
  • Estimate how much profit your business is likely to make, within its first three to five years of trading
  • Obtain financing from the bank - Small Biz Trends concludes that you are twice as likely to secure funding if you have a business plan

2. What type of auto repair shop should I open?

According to A Plus Auto Glass, there are multiple types of auto repair shops that you could open:

Auto repair service technicians

This is perhaps the most standardized service from the lot. It entails basic checks such as oil fluid levels and electricals.

You'll likely receive several repeat customers if you choose this model (especially those who drive a considerable amount) because servicing a car is recommended every 12 months or 10,000-12,000 miles (whichever comes first)!

Diagnostic technicians

This model is slightly more specialized. Such technicians carry out skilled checks that underline any issues vehicles might have.

It requires a higher level of skill because these issues cannot be seen on the vehicle's surface.

Auto system expert

If you choose to offer this model, you will specialize in surveying key systems that the vehicle has.

Engines, brakes and gear sets are all critical systems in most vehicles.

This business model has the potential to earn you high revenue.

Auto body repair clinic

This clinic or repair centre deals with vehicles that have been involved in accidents or roadside crashes.

If you choose this model, you may not have the volume of customers that the previous models may have but the revenue per sale is likely to be much higher.

You'll repair and retouch cars to ensure that they look as good as new and that any scratches or broken parts are fixed.

auto repair shop business plan car mechanic

Auto repair painters

If you choose this model, you will repaint vehicles or add touches to them.

Vehicles often need a fresh layer of paint, especially if they are being driven in areas where there is a lot of environmental pollution.

Expert auto glass repair

This model offers customers the chance to repair their windshield, windows or any other glass-related parts from their vehicle.

You'll likely require a high level of skill to do so but the rewards can be exponential, earnings wise.

You might also receive several clients who just want to repair small cracks in their vehicles.

3. What do you need to create your auto repair shop business plan?

Before writing your auto repair shop business plan and creating the financial forecast for your auto repair shop, you must first gather the data needed to create a comprehensive business plan.

You'll achieve this by...

  • Carrying out market research for your auto repair shop 
  • Building your marketing plan
  • Evaluating the operational costs and investments involved in setting up your business

Conducting market research for an auto repair shop

This is the longest and, admittedly, most tedious step in creating an auto repair shop business plan, but once you've got the right method - there's no excuse for mistakes.

As you move through the market research, you'll develop an understanding of the needs of your target market, as well as the current state of the industry. 

This enables you to then determine hot industry trends and identify where you should position yourself within the market to make your auto repair shop a success. 

Should your auto repair shop provide in-depth expertise on electronics, for example, or should it focus instead on motorcycle repairs or the sale of spare parts?

You must also assess the area in which you want to place your auto repair shop. This will give you a better idea of the local market, including the needs of residents and what services competitors are already offering. 

Developing the marketing plan for your auto repair shop

Once the market research is completed, the next step is setting out the marketing strategy for your auto repair shop's business plan. 

This is an opportunity to identify how you'll get your name out on the market and stand out from your competitors.

There are many ways of promoting an auto repair shop, from setting up a website and social media network to paid newspaper advertising and handing out street flyers. 

Taking the time to decide which marketing actions you want to go for will help you determine how much money you need to set aside for each one and how many customers you can expect, which you can then factor into your financial forecast later on.

auto repair shop business plan setting up a website

Evaluating operational costs and investments

To keep an auto repair shop running smoothly, you need a team you can count on. Typically, the size of a small car garage team is around 3 to 4 employees. You'll need a receptionist to welcome customers and at least two employees with experience in car mechanics - with the salary of each staff member being allocated according to their qualifications.

Additionally, you'll need a lot of technical equipment to get an auto repair shop up and running. Repairing vehicles requires having the right tools, as well as a full stock of car parts to help you meet the diverse demands of each car owner. 

To get an exact figure for the price of each item, you'll need to contact suppliers and ask them for quotes to integrate in your business plan for an auto repair shop. These quotes will then be integrated into the financial forecast.

4. What is the financial forecast for an auto repair shop?

Establishing the financial forecast is an integral step in the development of your auto repair shop's business plan. 

It is composed of 4 main tables, highlighting different financial aspects of the company:

  • Projected profit and loss statement
  • Projected balance sheet
  • Projected cash flow statement
  • Initial financing plan

The projected P&L of your auto repair shop

This table, which starts with the turnover, allows you to evaluate the growth, evolution of the cost structure of your auto repair shop, and its expected profitability over the coming years.

auto repair shop business plan P&L

The projected balance sheet of your auto repair shop

This table shows the value of the company's assets at a given time, and, in particular, the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc.).

auto repair shop business plan balance sheet

The projected cash flow statement

This table is essential in helping you keep an eye on the company's cash flow, particularly to ensure that the company generates enough cash to be able to repay its loans and regularly renew equipment.

auto repair shop business plan cash flow statement

The initial financing plan

This table gives your bank or potential investor a quick overview of the resources needed to launch your auto repair shop and their costs - as well as the personal contribution you plan to make.

auto repair shop business plan funding plan

5. What does the written part of an auto repair shop business plan look like?

This part cannot be neglected. To be able to interpret your figures and judge the relevance of the assumptions used to build your forecast, it's necessary to have sufficient details about the project.

The editorial part of your business plan is made up of the following sections:

The executive summary 

The executive summary for your auto repair shop's business plan is the equivalent of a cover letter for your auto repair shop business plan.

The aim here is to introduce your business project to investors in as engaging and concise a way as possible, encouraging them to read on and learn more about your exciting venture.

In this part, you place a spotlight on the business's partners and their roles, as well as the distribution of the company's capital and the location of the auto repair shop. 

Be sure to mention who the business is managed by and the percentage of ownership that each partner possesses.

In terms of the management team, you should list any relevant experience that staff or managers hold, along with any qualifications achieved.

Products and services

This section explains the products and services offered by your auto repair shop. 

For example, if you choose a traditional auto repair shop model, this section could look something like this:

Change of oil

As part of our routine maintenance, we recommend that you carry out this service each time you visit our garage (provided it's within a reasonable time frame).

Brake repairs

This includes inspecting the brake pads or checking how smooth the brakes are on your vehicle. Again, this is part of our routine maintenance.

Full diagnosis 

This service includes both of the above and as well as other aspects such as headlights and coolant/fluid levels.

Market research

It's within this section that you'll present the results of the market research we mentioned at the beginning of this article.

The objective here is to demonstrate that there is indeed a viable business opportunity for a new garage in the area you've chosen.

Mention why you have a unique selling point over other auto repair shops and how your skill set helps you in this regard.

In this part, you'll reveal three key plans for your auto repair shop business plan:

  • Your pricing strategy-  the prices you'll set for your services / spare parts / new parts
  • Your marketing strategy -  the actions you'll take to attract customers and build customer loyalty
  • Your risk management strategy -  how you'll minimise the risks related to your business

The operational part

From your employees to your relationship with suppliers, you'll detail the operational organisation of your business within your auto repair shop business plan. 

It's important to mention what suppliers you'll be using to source your spare parts and equipment from. You might have few or many suppliers, depending on your concept.

Also, think about the payment terms that you might obtain with them. Are you a new business? If so, you may need to pay upfront.

The financial plan 

The financial plan puts your numbers into tables that you'll be able to present to potential investors so they get a better idea as to your expected profitability and how much funding you need.

6. What tool should I use to write my business plan?

We've established that to set up your auto repair shop, you need a business plan. What you may not know yet, however, is how you'd like to write it. There are three options available to you:

Write your business plan using Word or Excel

This solution has one major advantage: it's cheap.

Be wary, however, that you'll need to have an accounting background (or at least be very good with numbers) to write your plan in this way without making mistakes in the calculations.

Hiring a consultant to write your financial forecast

Hiring a chartered accountant or consultant to take care of the financial part of your business is a good way to avoid errors. 

However, the fees are generally quite expensive: budget around ÂŁ1.5k ($2.0k) for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders).

Using online business plan software for your auto repair shop's business plan

If you're not used to writing business plans, another good solution would be to use our online business plan software .

auto repair shop business plan table of contents

There are several advantages to using specialized software:

  • You are guided through the writing process by detailed instructions and examples for each part of the plan.
  • You can be inspired by already written business plan templates
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you.
  • You get a professional document, formatted and ready to be sent to your bank.

If you are interested in this type of solution, you can try our software for free by signing up to The Business Plan Shop today .

7. Business plan template of an auto repair shop.

A business plan template will give you a better understanding of how to frame your own business plan, as well as what investors are looking for.

Our  auto repair shop business plan template will be off great help to you!

8. Three things you should know before writing an auto repair shop business plan

Firstly, make a list of the potential risks that your auto repair shop could face. This could include both external and internal factors. Think about how you might deal with them efficiently.

Secondly, consider trends that are currently high-flying in the auto repair industry. For example, auto parts are being replaced much less frequently  thanks to advanced technology resulting in greater durability.

Thirdly, the same study also believes that there is a shortage in the number of skilled automobile technicians. This is because several experienced workers have now retired or moved on from the industry.

That's it for now, we hope this article has helped you better understand how to write an auto repair shop plan. If you have any questions related to setting up your business, please do not hesitate to contact us.

Also on The Business Plan Shop

  • Business plan vs budget: what's the difference?
  • How to buy an existing auto repair shop?
  • How to create a financial forecast for your auto repair shop?

Know someone who might be interested in this article? Share it with just one click!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Complete Guide on Auto Repair Shop Business Plan (2023)

auto repair shop business plan

Table of Contents

Success in the auto repair business starts with a good plan. Your shop’s future depends on it. One mistake can be a big problem. That’s why you need to make sure you have everything in place for a successful auto repair business.

In this blog, we’ll help you create a strong business plan for an auto repair shop, whether you’re starting out or already have a shop. We’ll also give you a business plan sample for an auto repair shop that you can use. 

Let’s get started!”

Looking to expand your auto repair shop? Schedule a demo now.

What is an auto repair shop business plan? 

An auto repair shop business plan is like a roadmap for your car repair business. It’s a document that explains your business idea to potential investors or partners.

Imagine you’re planning a long road trip. 

Before you start, you make a detailed plan with the places you want to visit, the things you want to do, and the route you’ll take. 

Similarly, an auto repair shop business plan is like that plan for your car repair business. It’s a written guide that outlines what your business wants to achieve, how it will do it, and why it’s a good idea. 

You use this plan to show to others, like investors, so they understand your business and may want to be part of it. It’s like the master plan for your car repair adventure!

Why you need a business plan for auto repair shop: 

You will understand your business better:.

  • Your business plan is your GPS. It gives you a clear route to your goals.
  • Identify and tackle obstacles with confidence by sticking to your plan.
  • It’s your guide for financing, hiring, operations, and branding.

It will give you a Smooth Driving:

  • Prevent hiccups by investing wisely.
  • Your business plan helps you choose the right people, processes, technology, and marketing.
  • Ensure your investments align with your long-term goals.

Make your business sustainable: 

  • Map out a sustainable and viable business model.
  • Secure funding, plan expansion, and achieve growth milestones.

It will give you Clear Path:

  • Engage in a regular enjoyable activity.
  • Form habits that help you focus and organize thoughts.
  • Find solitude to regain focus on business goals.
  • Personalize your approach for clarity and success.

Creating an auto repair shop business plan: 

Understanding the basics.

It is important that you first clever the basics before you create a business plan. 

For that, you need to understand the type of your business. There are many types of business such as startup business plan, internal business plan, and strategies plan.

For an auto body repair shop business plan, you need to form some key elements in your company such as market, company description, sales strategies, management, product/service, fundings, financial projections. Etc. 

Company Description: 

This chapter is the heart of your business plan. Here you will tell your story. Why do you want to start an auto repair business? What is the mission behind it? You will explain your services. 

This is your chance to give a unique identity to your repair shop. This can help you gain competitive advantage. Let’s discuss these things one by one: 

Overview: 

Give your readers a sense of what your auto repair shop is all about. You can tell the essence of your shop here. You need to discuss the history of your business, founders; story, and company culture, 

Mission Statement: 

Articulate the core purpose of your business – what it aims to achieve and how it serves its customers or clients.

Vision Statement: 

Describe the future you envision for your company. What impact do you want to have on your industry, community, or the world?

Products or Services

Now discuss what you are offering. Describe your services that show a unique value proposition. It is important that it is relevant to your auto repair customers. 

Market Positioning

Marketing and branding is very important to have a successful auto repair business. Focusing on market positioning is crucial. You need to touch on points like target audience, competitive advantage and market niche. 

Short-Term Goals: 

These could include milestones like launching a new product, reaching a specific revenue target, or expanding your customer base.

Long-Term Goals: 

Detail your overarching aspirations, such as becoming an industry leader, expanding globally, or achieving a certain level of market share.

Market Analysis

You need to know what you are dealing with on a daily basis. 

What do your ideal customers want? What is trending in the market? How can you attract more and more customers? 

For this, you need to have a comprehensive knowledge of the auto repair market. There are three things you need to cover: 

Target Market: 

Understand your audience. Check out the following things in your customers: 

  • Income level 
  • Values 
  • Lifestyles 
  • Purchasing behaviors

Address the market needs: 

You need to find out the needs of your market. Identify the pain points of your customers.

Pro tip: you can conduct surveys or focus groups to find out the pain points of your target audience. 

After finding out the paint points, come up with unique selling point that covers the needs of your market. Clearly articulate how your products or services stand out and provide distinct advantages over competitors.

Analyzing the Competitive Landscape: 

In every market, competition is a reality. By analyzing your competitors, you gain insights into their strengths, weaknesses, and strategies. Find out direct competitors that offer similar services. 

After finding your competitors, you can set your business apart by offering better services from them. 

Market Size and Growth Potential

Assessing the overall market size and growth potential provides a snapshot of the opportunity at hand. It helps you understand the scope of your market and whether it’s expanding or contracting.

Industry Trends: 

Now you need to collect data related to auto repair shops. This can help you in finding industry trends. Find out the merging technologies that you can use in your shop. 

Marketing and Sales Strategies

Now we know our services and market for the auto repair shop. But how are we gonna sell our service to the market

That’s here, you need marketing strategies for your auto repair shops. Follow the following steps to define your strategies: 

  • Identify the platforms you’ll use to reach your audience. 
  • Craft a consistent and compelling message that resonates with your target audience.
  • Plan the creation and distribution of valuable content that educates, entertains, or solves problems for your audience. 
  • Detail how you’ll guide potential customers through the sales journey, from initial contact to making a purchase.
  • Explain how you’ll attract potential customers.
  • Describe how you’ll build relationships with leads over time. 
  • Outline the steps you’ll take to convert leads into paying customers. 
  • Allocate funds to different marketing strategies
  • Explain how you’ll measure the effectiveness of your marketing and sales efforts.
  • Identify the KPIs you’ll monitor, such as website traffic, conversion rates, click-through rates, and customer acquisition cost.

Organization and Management

Now, you need to discuss the management of your auto repair shop. Highlighting key team members and explaining their roles adds depth and credibility to your business plan.you can discuss the following things: 

  • Organizational Structure
  • Hierarchical Chart.
  • Functional Divisions
  • Key Management Team
  • Founder(s) and CEO
  • Executive Team Members
  • Responsibilities and Roles
  • Founder’s Role
  • Key Executives’ Roles
  • Team Strengths and Expertise
  • Relevant Experience
  • Growth Plans
  • Recruitment Strategy

Product or Service Line

In this chapter, you’ll provide a thorough exploration of your products or services. You can discuss the following things: 

  • Introduction to Your Offerings
  • Detailed Description
  • Development and Design
  • Intellectual Property
  • Product Life Cycle
  • Future Development
  • Visuals and Media
  • Customer Testimonials and Case Studies
  • Pricing Strategy
  • Regulatory and Compliance
  • Sustainability and Ethics

Financial Projections

In this chapter, you will do a proper financial analysis. You will discuss the financial dynamics of your business. 

1. Profit and Loss: 

In this, you will show projected profit and loss for the forecast period. Below is an example from the business plan for an existing auto repair shop. you can use it to make your own a profit and loss sheet. 

profit and loss sheet - auto repair shop business plan

2.Cash flow projection: The next thing is the cash flow projection. Cash flow is critical for business sustainability. Illustrate how cash moves in and out of your business, highlighting periods of potential cash shortages and surpluses. This helps in planning for working capital needs and managing liquidity. Below is an example that you can use:

Cash notes projection - auto repair shop business plan

3. Balance Sheet Projection

Provide a snapshot of your business’s financial position, including assets, liabilities, and equity. This showcases the overall health and stability of your business.

4. Break Even Analysis

Determine the point at which your business becomes profitable. A breakeven analysis helps you understand how much revenue you need to cover all costs. Below is an example of a business plan for an existing auto repair shop. You can see to understand better.

Break even analysis - auto repair shop business plan

Risk Assessment and Contingency Planning

No business journey is without its obstacles. Recognizing potential risks and challenges upfront and having a plan to address them is crucial. 

This chapter focuses on identifying risks, evaluating their potential impact, and outlining strategies to mitigate their effects.

First thing is to identify the risk. You can see the picture below to identify risks. 

After identifying risks, you need to come with risk mitigation strategies such as: 

Preventive Measures: Outline steps you’ll take to prevent risks from occurring. 

Mitigation Plans: Describe your plans to minimize the impact if a risk does materialize. 

Crafting a business plan is a labor of love. It’s more than a document; it’s your business’s roadmap to success. Each chapter contributes to the bigger picture, forming a comprehensive strategy that aligns your ambitions with actionable steps. Now that you have this guide, take the first step towards creating a winning business plan that paves the way for your entrepreneurial journey.

You can also take your auto repair business to the next level with a good auto repair management software. Moreover , torque 360 offers all-round automotive management software as well. It includes many features such as scheduling, invoicing , estimating , digital vehicle inspection , repair order management , technician portal , POS integration , and marketing solutions. 

About the Author: Torque360

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Auto Repair Business Plan Template & Guidebook

If you're starting a new auto repair business, a detailed and comprehensive business plan is essential. Many entrepreneurs know they need a business plan, but don't have the time or know-how to craft one on their own. The #1 Auto Repair Business Plan Template & Guidebook provides an easy-to-use template and guidebook that offers all the information needed to create a successful plan while minimizing the time and effort required. With this powerful tool, new auto repair business owners have access to expert advice every step of the way to ensure their success.

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Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Auto Repair Business [11 Steps]
  • 25 Catchy Auto Repair Business Names:
  • List of the Best Marketing Ideas For Your Auto Repair Service:

How to Write a Auto Repair Business Plan in 7 Steps:

1. describe the purpose of your auto repair business..

The first step to writing your business plan is to describe the purpose of your auto repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a auto repair business:

The mission of our Auto Repair business is to provide quality, reliable, and fairly priced auto repair services to our community while creating a positive and comfortable professional environment for staff and customers alike. We strive to foster long-term relationships with each person we serve, so we can continue to be their go-to auto repair resource for years to come.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Auto Repair Business.

The next step is to outline your products and services for your auto repair business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your auto repair business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your auto repair business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your auto repair business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

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auto service business plan

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a auto repair business?

  • Diagnostic and Repair Tools
  • Computer Software
  • Business License/Permits
  • Insurance Coverage

5. Management & Organization of Your Auto Repair Business.

The second part of your auto repair business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your auto repair business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Auto Repair Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a auto repair business varies based on many different variables, but below are a few different types of startup costs for a auto repair business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your auto repair business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your auto repair business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your auto repair business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

auto service business plan

Frequently Asked Questions About Auto Repair Business Plans:

Why do you need a business plan for a auto repair business.

A business plan for an auto repair business provides a roadmap of the business’s current and future operations. It outlines the necessary information to achieve success, including the market analysis, organizational structure, financial projections, marketing strategy, and operational plans. By developing a comprehensive plan for your auto repair business, you can set goals, track progress, and make changes to ensure that you are staying on track to reach your desired results.

Who should you ask for help with your auto repair business plan?

You should ask a business consultant, mentor, or financial planner for help with your auto repair business plan. Additionally, you can find resources online such as templates and sample business plans to help you structure your business plan.

Can you write a auto repair business plan yourself?

Yes, it is possible to write an auto repair business plan yourself. Writing a business plan can require a lot of research and strategizing, but it can be done with the right preparation and knowledge. When writing a business plan for an auto repair business, you should include an executive summary that outlines your overall vision for the business, as well as any key objectives; a market analysis to define your target audience and consider the potential competitors in the area; a description of your services and pricing; a risk analysis for potential threats; financial projections for initial investments, overhead costs, and revenue forecasts; a description of any required labor or equipment; and finally, an action plan that details how you will implement your strategy.

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How to Start and Finance Your Own Auto Repair Business in 2023

How to Start and Finance Your Own Auto Repair Business in 2023

Business owners looking to start an auto repair business can create a successful enterprise if they understand the industry and how to run a small business. Opening an auto mechanic shop requires industry expertise and small business know-how — all of which is possible to learn. 

In this Nav article, we cover what the auto repair industry looks like today, the challenges of opening an auto repair shop and how to handle them, and the steps to take when applying for auto shop financing. 

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Current State and Outlook of the Auto Repair Industry

The outlook for the auto repair industry is very positive — it’s expected to grow by over $93 billion from 2022 to 2027. There’s an increasing demand for auto repair shops because there are more drivers on the road than ever before. All these additional vehicles will need repairs from auto body shops.

Many customers prefer to rely on local businesses for oil changes or tire services as opposed to dealerships because of the lower costs and better accessibility. However, there are likely going to be issues with small repair shops getting the information they need from automakers to repair electric vehicles . It’s worth keeping an eye on the proposed laws in the coming years if you’re planning to open an auto repair shop, but either way, the demand for combustion engine repair will still be there for the foreseeable future. 

Why Auto Repair Is a Lucrative Business

Almost 92% of U.S. households own one vehicle , and 22% have three or more vehicles. That means there are a lot of vehicles in the country that need repairs. With the growth that is expected to happen in the auto repair industry, it’s a secure industry to enter. It’s a good idea to add any necessary technology to be able to repair hybrid vehicles to maintain your competitive advantage.

Opening an auto repair business can be a lucrative endeavor, but like any small business, it doesn’t come without challenges, which we discuss below.

Challenges to Building an Auto Repair Shop

Auto repair shop owners face challenges, like any small business. Here are the issues you’re most likely to encounter.

Having limited access to funding

Starting an auto repair business can be expensive, and many people may not have enough money to cover the startup and operating costs from their personal assets. Lenders offer small business loans to qualifying business owners to help them increase their working capital. 

Qualifying for a business loan depends on factors like your time in business and your credit history. Learn how to establish business credit in this guide from Nav.

Dealing with limited experience

Starting a business can be challenging, especially for those without experience in the industry or in running a business. Running an auto mechanic shop requires knowledge of the industry or the ability to hire trained staff. And starting a business requires a lot of time and planning. 

Luckily, there are many resources small business owners can tap into, including Nav. For example, learn how to decide whether you should establish your business as a sole proprietorship or limited liability company (LLC) in this guide from Nav. 

Choosing a suitable location

It can be difficult to find a shop location that’s easily accessible, has enough space, is in a suitable area, and is affordable. You’ll need to be able to perform car repairs, park cars, and store parts. Also, the shop will need to be in an area that has enough customers to make it a viable business. 

Attracting customers

With so many auto repair businesses out there, it can be difficult to attract and retain customers. Social media and a good website can be a big help with this. You can post updates, information about services, hours, and more on social media and encourage customers to leave reviews. This can help draw in new customers. 

Hiring employees

It’s essential that you find skilled and reliable employees to manage your new customers, but it can be a challenge to get the right fit. Training new employees takes up time and costs money, but it’s worth it to have the help you need to grow your business.

Meeting legal requirements

There are many legal requirements to start and operate an auto repair business, and failure to comply with them can result in fines or legal issues. You’ll need to obtain the appropriate local and state licenses and permits to make sure you’re operating compliantly. 

Staying up to date with technology

As technology advances, it’s important for auto repair businesses to stay current with new tools and equipment to remain competitive. This is especially important as more drivers switch to hybrid or electric vehicles, even for auto body repair shops.

Managing cash flow

Cash flow is one of the main challenges for new businesses, especially in the beginning when revenue may be limited. It’s important to budget and manage cash flow carefully to avoid financial issues. Nav’s Cash Flow Tool can help you track and manage the cash flow for your business needs.

Building a reputation

Building a positive reputation in the community takes time and effort, and negative reviews or experiences can harm the business. It’s important to manage and respond to negative reviews in order to reassure potential customers that you value customer service.

Keeping up with industry trends

The auto repair industry is constantly changing, and it’s important to stay up to date with new trends and technologies to remain competitive. The world of automobiles is rapidly shifting, so keep an eye out for new technologies by reading, researching, and networking on a regular basis.

Improve your business’s financial health profile to unlock better financing options

Improve your business’s financial health profile to unlock better financing options

Improve your business credit history through tradeline reporting, know your borrowing power from your credit details, and access the best funding – only at Nav.

Identify the Market and Demand for an Auto Repair Business in Your Area

Before opening an automotive repair business, you’ll want to complete a market analysis and market research to find your ideal customer and make sure the customer base is there. You should also do a competitive analysis to find where your competitors thrive and struggle to try to find a gap in the market. For example, if no competitors in your area offer tire services, you might consider including that as part of your offerings. In this way, seeing what the market is like is invaluable to creating your best business plan.

Determine the Best Location for Your Business

Location is a big factor in the success of your business. When you conduct market research, you’ll need to make sure there are enough customers to grow your business. 

Opening up an auto repair shop means you have to decide whether you will lease or buy property. If you rent property, you may pay a higher rent than you would for a mortgage, but you’ll also be more flexible and won’t have to put down a large down payment. On the other hand, you can have more control over your business’s operations and upgrades if you own the property.

Develop a Business Plan Specific to Your Speciality

A business plan is a strategy for running and growing your business. It can help you to prioritize your goals, create layers of accountability so tasks get done, and finalize your mission statement. It should include information about the leadership of your business, your location, and your employees. A business plan can help you to make decisions along your journey. 

If you plan to apply for financing, like a bank loan or business line of credit, you can include that in your business plan. See Nav’s breakdown on how to write a business plan for more.

How to Get Financing for Your Auto Mechanic Shop

Getting auto repair shop financing can be a long process for business owners, but there are many funding options that you may qualify for. (Pro tip: Use Nav to find the right financing for your business quickly and efficiently). Business financing can be the best option for increasing your staff members, adding new technology, or expanding your shop. 

Most lenders require small business owners to have a business bank account before they lend to them. Find the business checking account option for your business with Nav.

While traditional banks tend to have longer approval processes and more strict requirements, many online lenders offer fast, digital application processes that are often easier to qualify for. Borrowers get repayment terms and interest rates depending on factors like their time in business, annual revenue, and credit history. The rates for alternative financing, like online loans, may be higher than traditional banks. 

Here are some great options for financing your auto repair shop:

Hire Employees

You’ll need to hire employees if you want to expand your business or be able to take on new clients. A mechanic is your number one priority in your employee base so they can help work on vehicles. A body shop may also need to add an auto body and glass repairer. You may then need to add a manager to run the shop and a receptionist to greet customers.

Get the Necessary Licenses and Permits

Whether or not you need business licenses or permits depends on where your business is located and whether or not you have employees. For employees, you’ll need to offer workers’ compensation. You’ll need to contact your local Chamber of Commerce, Department of Revenue, or other government branches to find what licensing you need. 

Learn where to find the information you need for which licenses you’ll have to get based on your state in this guide from Nav .

Launch Your Auto Repair Shop Right From the Start

Small business owners and entrepreneurs need a solid foundation for their business before they launch. You’ll need to make sure you register as the right business entity, get the licensing you need, have a good accounting and bookkeeping process, and more. This is a lot of work to do yourself, so turning to a business formation service can make the process much easier and smoother to make sure you start off on the right foot.

Here’s How Nav Can Help

Understanding your financing and loan options is an essential step to growing your business. Financing can help you hire a bigger team, stock inventory, or move to a better location. But getting the right financing can be a struggle. Using Nav is the best way to find personalized financing solutions for your auto repair shop business. The more information you add, the more accurate your financing results will be.

This article was originally written on August 11, 2023.

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Tiffany Verbeck

Tiffany Verbeck is a Digital Marketing Copywriter for Nav. She uses the skills she learned from her master’s degree in writing to provide guidance to small businesses trying to navigate the ins-and-outs of financing. Previously, she ran a writing business for three years, and her work has appeared on sites like Business Insider, VaroWorth, and Mission Lane.

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Auto Repair Business Plan Sample

NOV.11, 2016

auto repair shop business plan

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

  • Understand the market needs and tailoring the services right
  • Managing their resources well
  • Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

  • Professional Automobile Drivers
  • New Car Owners (Households/ Individuals)
  • Used Car Owners (Households/ Individuals)

2.4 Business Target

  • To achieve an NPS score above 80 within two years of our launch
  • To achieve a CSAT score of 95 to 98% within a year of our launch
  • To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Auto Repair Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Auto Repair Business Plan - Startup Cost

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

  • Automobile engines
  • Automobile exhaust systems
  • Automobile brakes
  • Automobile radiators
  • Ignition System
  • Electric repairs
  • Spark plug, fuel cap, and others
  • Tire pressure monitoring
  • Wheel alignment
  • Regulating radiator fluid, brake fluid, transmission fluid, etc.
  • Maintaining car’s air conditioning system
  • Installing Efficient air filters
  • Installing the latest stereo system
  • Brake discs
  • Backup camera
  • Turbochargers and more
  • Seat covers
  • Dash covers
  • Fuel consumption meters
  • Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Auto Repair Business Plan - Marketing Segmentation

5.2.1 Professional Automobile Drivers

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services.

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To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

5.3 Business Target

Our business targets are:

  • To earn a net profit of $24.5k per month by the end of the third year
  • To obtain a repeat purchase rate of 80% throughout our service years
  • To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
  • To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

  • Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
  • We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
  • Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

  • We’ll advertise our startup through posters, Google Local ads service, and social media.
  • We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
  • We’ll offer a 50% discount on our services for the first month of the launch.
  • We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

Auto Repair Business Plan - Sales Monthly

6.4 Sales Yearly

Auto Repair Business Plan - Sales Yearly

6.5 Sales Forecast

Auto Repair Business Plan - Unit Sales

Personnel plan

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

  • 1 Supervisor to help in the management
  • 8 Auto Mechanics to perform the major work
  • 2 Technicians to provide overall support
  • 1 Database Manager to manage company’s sites and arrange video calls
  • 1 Accountant to maintain financial records
  • 1 Front Desk Manager/ Call Operator
  • 2 General Assistants
  • 1 Sales Executive

7.2 Average Salary of Employees

Financial plan, great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

8.2 brake-even analysis.

Auto Repair Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Auto Repair Business Plan - Profit Monthly

8.3.2 Profit Yearly

Auto Repair Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Auto Repair Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Auto Repair Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Auto Repair Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Business Plan Template for Auto Mechanics

Business Plan Template for Auto Mechanics

Starting your own auto repair business can be both exciting and challenging. You have the skills and the passion, but do you have a solid plan to drive your success? Look no further than ClickUp's Business Plan Template for Auto Mechanics.

With this template, you can:

  • Clearly define your vision and goals for your auto repair shop
  • Analyze your target market and identify your ideal customers
  • Develop effective marketing strategies to attract and retain clients
  • Outline your service offerings and pricing structure
  • Create operational plans to streamline your business processes

Don't leave the success of your auto repair business to chance. Get started with ClickUp's Business Plan Template for Auto Mechanics and drive your way to a profitable and thriving business today!

Business Plan Template for Auto Mechanics Benefits

Creating a solid business plan is crucial for auto mechanics looking to thrive in a competitive industry. With the Business Plan Template for Auto Mechanics, you can:

  • Clearly define your vision and mission for your auto repair business
  • Set realistic financial goals and develop strategies to achieve them
  • Conduct a comprehensive analysis of your target market to identify opportunities for growth
  • Create effective marketing strategies to attract new customers and retain existing ones
  • Outline your service offerings and operational plans to ensure smooth day-to-day operations
  • Secure funding and investments by presenting a professional and well-structured business plan

Main Elements of Auto Mechanics Business Plan Template

When creating a business plan for your auto repair shop or freelance auto mechanic business, ClickUp's Business Plan Template has got you covered. Here are the main elements of this List template:

  • Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that you stay organized and know exactly where you stand with each section of your business plan.
  • Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add important details and categorize different aspects of your plan, making it easy to navigate and update as needed.
  • Custom Views: Access five different views to help you effectively manage your business plan, including Topics to focus on specific sections, Status to track progress on each task, Timeline to visualize your plan's timeline, Business Plan to see the entire plan at a glance, and the Getting Started Guide to assist you in navigating and using the template effectively.

With ClickUp's Business Plan Template, you can confidently outline and manage the key components of your auto repair business strategy.

How To Use Business Plan Template for Auto Mechanics

If you're an auto mechanic looking to create a business plan, the Business Plan Template in ClickUp can be a valuable tool. Follow these steps to make the most of it:

1. Define your business concept

Start by clearly defining your auto mechanic business concept. What services will you offer? Who is your target market? What makes your business unique? Use the Goals feature in ClickUp to outline your business concept and set specific objectives you want to achieve.

2. Conduct market research

Next, conduct thorough market research to understand the competitive landscape and identify opportunities for growth. Research other auto mechanic businesses in your area, analyze customer preferences, and gather data on industry trends. Use the Table view in ClickUp to organize and analyze your market research findings.

3. Identify your target market

Once you have completed your market research, identify your target market. Consider factors such as demographics, psychographics, and geographic location. Use custom fields in ClickUp to record and categorize information about your target market, such as age range, income level, and car preferences.

4. Develop a marketing strategy

With your target market in mind, develop a comprehensive marketing strategy to promote your auto mechanic business. Identify the most effective channels to reach your audience, such as social media, local advertising, or partnerships with automotive suppliers. Use the Automations feature in ClickUp to automate marketing tasks and streamline your efforts.

5. Create a financial plan

Finally, create a detailed financial plan for your auto mechanic business. This should include an analysis of startup costs, projected revenue and expenses, and a break-even analysis. Use the Gantt chart feature in ClickUp to create a timeline for financial milestones and track your progress. Additionally, use the Dashboards feature to visualize financial data and monitor key metrics.

By following these steps and utilizing the Business Plan Template in ClickUp, you can effectively plan and strategize for the success of your auto mechanic business.

Get Started with ClickUp’s Business Plan Template for Auto Mechanics

Auto repair shop owners and freelance auto mechanics can use this Business Plan Template for Auto Mechanics to effectively plan and manage their auto repair business.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

  • Use the Topics View to outline different sections of your business plan, such as vision, financial goals, target market analysis, marketing strategies, service offerings, and operational plans
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  • Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and information
  • Monitor and analyze your business plan to ensure it aligns with your goals and objectives
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Auto Repair Shop Business Plan Sample

Have you ever considered opening an automotive repair shop?  Auto shops are known as businesses that have strong cash flow, and fair profits.  In this auto repair shop business plan sample we will show you what goes into developing a strong plan.  Please remember this is merely a guide, and the best business plans are fully-customized to each individual company.

Before commencing on your auto repair shop, you may have a few questions. How profitable are auto repair shops? How to grow an auto repair business? How much does it cost to start an auto repair shop? How do I get more customers in my auto repair shop? How to market an auto repair business?

Brace yourself, because in this article, our team has prepared a comprehensive automotive repair shop business plan, which should help address these queries.

To conquer the largest auto repair companies in the USA, you must first grasp the auto repair industries intricate nuances. Automotive repair service companies in the US provide a wide range of automotive repair and mechanic services to ensure optimal performance and longevity of vehicles. Whether you are looking to start a mechanic business or small auto shop, we can help you with a customized automotive repair business plan or mechanic shop business plan, which is catered to your specific goals and requirements.

As things take shape, it will be time to paint the operational landscape of your auto repair shop. Envision the perfect location, layout, and equipment needed to manifest your vision. Map out the staffing requirements, employee training protocols, and the smooth workflow process, which will ultimately define your mechanic shop’s efficiency.

Seek out and foster relationships with trustworthy vendors and suppliers who can provide you with leading automotive parts, tools, and supplies. Engage with those who offer competitive prices, exceptional quality, and lightning-fast delivery to fortify your shop’s operations.

Navigate regulations. Familiarize yourself with local, state, and federal rules governing the auto repair industry. Obtain the necessary licenses and permits to properly operate your shop, and of course, ensure your business adheres to the highest environmental and safety standards.

In conclusion, for an ambitious entrepreneur , crafting a comprehensive business plan for your auto repair shop is your ticket to triumph in this fiercely competitive industry. We hope you enjoy this auto shop business plan example.

1.0 Executive Summary

“Your Canadian Auto Shop” (The Company) is a Tire and Customization Shop with nine locations spanning across British Columbia, Alberta and Saskatchewan.  Over the past ten years the company has gained recognition across Western Canada as a leader in tire, wheel, rim and accessory customization.  With a sprawling population, the City of Saskatoon has been identified as an ideal location for Your Canadian Auto Shop’s tenth Tire and Customization Shop.

With the support of senior management, Ralph Walzek  will open an incorporated business, and raise $122,750 through the Canada Small Business Financing Program (CSBFP) for the equipment and leasehold improvements required to successfully launch this location.  Ralph Walzek  will receive an annual management salary of $75,000, and 20% of the Saskatoon Location’s net income.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.  This demand, and low-barriers to entry has resulted in a level of saturation within the industry; notwithstanding, Your Canadian Auto Shop has established a process which sets them apart in this competitive landscape.

By offering affordable customizations, unmatched selection, a culture of customer satisfaction, and a convenient selection of payment options, Your Canadian Auto Shop stands out in an otherwise crowded marketplace.  Regardless of this increasingly competitive landscape, the company has continued to grow year after year.  In partnership with senior management, Ralph Walzek  will utilize over two decades of professional management experience to guarantee the success of this tenth Your Canadian Auto Shop location.

According to Statistics Canada’s 2020 Consensus, Saskatoon is currently the third fastest growing metropolitan region in Canada.  With a thriving business sector, Saskatoon is an attractive and vibrant city that is a primary engine for the province’s wider economy.  With an experienced management team, reputable brand, profitable business model, and strong demographics, this location is positioned to be a flourishing Tire and Customization shop for many years to come.  Furthermore, Ralph Walzek  is committed to being a fair and equitable employer, to support the local labour market, and the community of Saskatoon at large.

2.0 Business Overview

Your Canadian Auto Shop was established 10 years ago in Edmonton, Alberta.  Since then, the company has grown to nine locations across Western Canada, and is poised to continue it’s track record of growth.  Ralph Walzek  seeks to incorporate a company and secure a $122,750 loan for the equipment and leasehold improvements of this tenth location in Saskatoon, Saskatchewan.  This incorporated business will operate under the Your Canadian Auto Shop brand in the Tire and Customization Industry.

2.1 Industry Overview

North American Industry Classification System (NAICS) Code – 44132

Tire Dealerships

Establishments: 2,383

0-99 Employees: 100%

Average Revenue: $1.1 million

Profitable: 76.1%

This industry comprises establishments primarily engaged in retailing tires and tubes. These establishments also typically provide complementary services, such as tire mounting and wheel balancing and aligning.

2.2 Mission Statement

OUR MISSION IS TO PROVIDE THE CITY OF SASKATOON WITH LEADING AUTO REPAIR SERVICES.

2.3 Goals and Objectives

  • Approval from TD Business Banking to proceed with incorporation
  • Ralph Walzek will incorporate a business and provide documentation to CIBC
  • Secure $122,750 through the Canada Small Business Financing Program
  • Secure a location for the shop in Saskatoon, Saskatchewan
  • Purchase all equipment and inventory outlined in “6.0 Financial Plan”
  • Recruit one Sales Rep and Tire Technician from the Regina location, as agreed upon
  • Open for business on July 1, 2021

2.4 Key Success Factors

Safety in the Workplace : Focus on maintaining safe working conditions.  In addition to protecting our staff, our location’s image revolves around safety and consciousness.

Inventory Management Skills : Able to control stock on hand and install accurate costing systems.

Employment of Skilled Automotive Technicians : Access to skilled technicians in a workforce that is becoming more technologically advanced.

After Sales Service and Support : Provide superior customer service in a segment that can be very competitive.

Location Close to Key Markets: Location in the heart of Saskatoon, therefore determining  market size, average customer income, vehicle count, population, and competition.

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3.0 Staffing

AUTOMOTIVE TIRE TECHNICIAN

  • Interact with Commercial Sales Consultants and/or Counter Sales Service Associates to obtain work orders and commercial customer service specific requirements.
  • Install, balance, rotate and repair tires at Saskatoon location in a safe and efficient manner.
  • Support fellow Tire Technicians and Sales Rep as required.
  • Install and service all tires up to qualifications.
  • Deliver customer tire maintenance program to businesses by visiting assigned locations to complete fleet checks.
  • Accurately complete all documentation/paperwork in relation to service work provided so that efficient billing can be conducted.
  • Inventory, maintenance, cleaning and other duties as assigned by management for both the shop and the service trucks.
  • Ensure service vehicle and all equipment is maintained in a safe, neat and clean manner at all times.
  • Assist the shop associates to ensure the shop and service vehicles are kept in a safe, neat and clean manner at all times both inside and outside.
  • Conduct efficient Receiving/Shipping of all inventories that enters and leaves the shop.
  • Professionally interact and communicate with customers to explain service details and advise on any additional service maintenance that has been identified.

Requirements

  • Internal Candidates – Intermediate PLT Skills
  • Valid Driver’s License with a clean abstract
  • Basic mechanical aptitude and previous exposure to automotive work
  • Interest in further expanding knowledge about the tire industry
  • Well developed people skills with the ability to professionally interact with customers
  • Maintain a clean and professional personal appearance and grooming.
  • Farm and small OTR tire experience preferred.

4.0 Products & Services

We specialize in getting customers the right tire that suits the vehicle and application. Snowflake Rated All Terrain Tires, All-Weather Tires, All-Season Tires, Performance Tires, Track Tires, Mud Tires, All Terrain Tires, Rugged Terrains, Mud Boggers, Winter Tires, Semi, Agricultural, and the list goes on.  We are committed to providing tires for every price point.

Wheels and rims for a auto repair shop.

WHEELS & RIMS

Your Canadian Auto Shop has access to all types of rims and custom wheels. We are factory direct, which means huge discounts and quick turnaround times for our customers. We specialize in high offset and low offset wheels, staggered wheel fitment, American muscle, tuner cars, winter rim & tire combos, concave wheels, deep dish, and all sizes.  We are confident our offering of Armed Brand Wheels will be well received in the Saskatoon area.

wheels for a repair shop business plan.

ACCESSORIES

  • Multiple brands of lift and leveling kits
  • Multiple brands of exhaust tips
  • Multiple brands of mud flaps
  • Multiple brands of tonneau covers
  • Fender Flares
  • Exhaust Systems
  • Multiple brand of front and rear bumpers
  • Cold air intake
  • Multiple brands of side steps

5.0 Operations

Securing a strategic and busy location, prominently visible within Saskatoon, will be a key element of our operations.  Not only will our shop be easily accessible, but also well positioned; therefore, increasing market exposure.

Ensuring a safe and healthy workplace will be our highest priority.  Owner and Location Manager, Ralph Walzek  has extensive experience in ensuring the health and safety of his team members.  “Safety starts at the top” and by utilizing over two decades of safe work practices, Ralphwill lead by example in day to day operations.  Each and every morning a safety meeting will be conducted to review best work practices, and weekly topics; while everyone on the team will be encouraged to participate.

5.2 Payment & Financing

  • Payment with cash
  • Payment via credit cards, point of sale machines, or EFT
  • Payment via mobile money transfer
  • We also have in place Driver Capital no credit check financing

5.3 Hours of Operation

Monday 9AM – 6PM

Tuesday 9AM – 6PM

Wednesday 9AM – 6PM

Thursday 9AM – 6PM

Friday 9AM – 6PM

Saturday 9AM – 5PM

Sunday – CLOSED

5.4 Equipment

Please refer to “6.0 Financial Plan” for a complete list of required equipment.

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6.0 Market Analysis

Over the coming years, operators in the Tire Dealers industry in Canada are set to benefit from improving economic conditions, particularly within several of the industry’s key commercial markets, as the Canadian economy recovers from the COVID-19 pandemic.

With expected growth in corporate profit over the five years to 2025, which will be coming off a relatively low base level, many companies are expected to expand or upgrade their existing vehicle fleets and generate significant demand for retailers of tires, repair services and miscellaneous vehicle parts and accessories. Moving forward, rising levels of disposable income are expected to bolster demand for industry services, as these trends are anticipated to enable a greater number of Canadian consumers to upgrade existing vehicles, causing the industry’s customer base to expand.

As a result of these factors, IBISWorld projects industry revenue will increase at an annualized rate of 3.0% to $5.5 billion over the five years to 2025.

Commercial markets are anticipated to expand as industrial production growth is expected to occur within the Canadian economy. Moreover, corporate profit in Canada is forecast to increase at an annualized rate of 8.3% over the five years to 2025, enabling many of the industry’s transportation and wholesaling clients to increase investments in their vehicle fleets.

To further strengthen demand from this segment, operators are expected to grow business relationships and secure long-term distribution contracts over the next five years. For example, national and regional repair garages are expected to work to gain a competitive edge against smaller shops by entering into long-term commercial relationships with tire dealers.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.

In turn, these positive trends are expected to support demand for industry operators. Industry profit is also expected to increase marginally over the next five years, as the profit margin is expected to recover from a low level in 2020.  At the same time, rising levels of disposable income are anticipated to encourage many consumers to purchase tires and repair services from external car dealerships or mechanics.

6.1 Market Trends

  • Amid COVID-19, industry profit is expected to temporarily decline
  • Despite high competition, revenue has expanded over the past five years
  • New vehicle sales are expected to grow from a low base level in 2020
  • The industry will likely benefit from consistent growth in the Canadian population
  • Small-scale operators are expected to continue entering the tire-dealer market
  • Industry profit will likely decline as operators seek to gain market share by offering discounts on products and services

6.2 Competitive Advantage

The following list outlines the three competitive advantages that will differentiate Your Canadian Auto Shop Saskatoon from the competition:

  • We are uniquely equipped to utilize the sales from all other stores to give us substantial buying power in obtaining our products cheaper from suppliers; subsequently, allowing for more affordable and competitive pricing for customers.
  • Through our agreement with Driver Capital No Credit Financing, we are able to appeal to a vast customer base by eliminating insufficient credit as a barrier to purchase.
  • We will be the only dealer in Saskatoon offering the extremely popular brand, Armed Wheels.

6.3 Risk Analysis

Total vehicle-kilometres.

Tires most often degrade from extended use and age. As a result, the more a vehicle is driven, the more often replacement tires or retreads will be required. The number of total vehicle-kilometres was expected to increase in 2020. However, due to the COVID-19 pandemic, people have reduced nonessential travel and have commuted less by car, leading to an expected decline in the number of total vehicle-kilometres driven, which poses a potential threat to the industry.

World price of crude oil

High gasoline prices, which are dictated by crude oil price trends, generally decrease vehicle sales and cause consumers to switch to alternative modes of transportation. For instance, consumers may use public transportation when gasoline prices are high instead of driving their own vehicles and incurring the expense of gasoline. As a result, when consumers use their cars less, they will not require tires as quickly, thus decreasing industry demand.

Per capita disposable income

Per capita disposable income influences the timing and value of tire purchases. Consumers with more disposable income are quicker to replace worn tires and are more likely to purchase expensive, high-performance tires. Alternatively, consumers with less disposable income may be hesitant to purchase expensive products or to replace worn tires.

New vehicle sales

New vehicles are sold with a set of factory-installed tires. Increases in vehicles sold boost industry revenue for the long term as it increases the base of potential vehicles that need replacement tires. In the short term, new cars typically do not need replacement tires. When consumers buy new vehicles over maintaining their current ones, industry revenue is negatively affected. As of its last update, new vehicle sales were expected to increase in 2020. Due to the coronavirus pandemic, however, consumers are expected to purchase fewer new vehicles, which represents a potential opportunity for the industry. 3

7.0 Sales & Marketing Plan

Our Sales & Marketing Plan is founded on the strength of Your Canadian Auto Shop’ well-established brand.  The company has a proven marketing strategy that targets multiple social media platforms in order to attract an array of target customers. The Saskatoon shop will have the benefit of people already recognizing the name and stellar reputation of the Canadian Custom Autoworks’ brand.  Our Saskatoon Shop will leverage the brand through signage, placement on the company’s website, and awareness on social media.

7.1 Target Customers

HOUSEHOLD CONSUMERS

The Tire Dealers industry in Canada serves a broad range of customers, with everyday household consumers accounting for the vast majority of the industry’s total revenue.

  • 18 – 65 years of age
  • All income levels, as we deal in lower level, mid-level and premium level products
  • Resides in the Saskatoon Metropolitan Region (population of 325,806 – 2019 Q4)
  • Major Ethnicities (European 72.2%, Aboriginal 11.2%, South Asian 4.7%, Filipino 3.9%) 4
  • Drives a motor-vehicle

BUSINESSES FOR END USE

Businesses for end use, including trucking companies, construction companies, farmers and mining outfits, represent the second-largest source of revenue for industry operators.

  • We will establish relationships with local companies, in an effort to provide wheels and tires for their fleets.

DEALERSHIPS

  • Kia of Saskatoon, Ens Toyota, Ens Lexus, Oakwood Nissan, Bema Autosport BMW, Porsche Centre Saskatchewan, Saskatoon Mitsubishi, Mercedes-Benz Saskatoon, Saskatoon South Hyundai, Volvo Cars Saskatoon, Acura Centre of Saskatoon, Jaguar Saskatoon, Mid City Auto Centre, Saskatoon Auto Connections Sales Centre, Wheaton GMC Buick, Subaru of Saskatoon, Studio Fiat, Mainway Mazda, Bright City Auto Sales

7.2 Key Channels

We understand the nature of our referral based industry.  Our focus is to provide the most professional experience available, consequently laying the groundwork for a consistent stream of referrals.

SOCIAL MEDIA

Social media will reach our target customers in two ways; pre-established Your Canadian Auto Shop pages will drive wider brand recognition and messaging, while our location will create a Facebook page for our community of direct customers in the Saskatoon area.

GOOGLE MY BUSINESS

A Google My Business account will be established to receive reviews from customers, to assist customers with finding the shop, to keep the public up to date on hours of operation, and provide additional contact information.

GOOGLE SEARCH

The company’s website will be imperative in assisting buyers through the sales process.  By learning more about our products in one central place, people can transition from prospects to paying customers quickly.

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7.3 swot analysis.

SWOT analysis for a repair shop.

8.0 Financial Plan

Capital requirements for a auto repair shop.

8.1 Five Year Pro Forma Cash Flow Statement

auto service business plan

Are you interested in seeing more business plan samples? Here is a variety of business plan samples   to help guide you through your entrepreneurial journey.  If you need any help in developing a custom business plan contact us here!

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Car Service Center Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Auto Repair

Are you about starting a car service center? If YES, here is a complete sample car service center business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a car service center. We also took it further by analyzing and drafting a sample car service center marketing plan template backed up by actionable guerrilla marketing ideas for car service centers. So let’s proceed to the business planning section.

If you are interested in starting your own car service centre, it can never be a better time since the market for mechanics is currently showing significant and promising profit gains.

We all know that most drivers in the industry now have cars that are at least 10 years old, which means that the need for a car servicer is growing for more consumers in the industry. It is very important to note that beginning your own car service centre can guarantee or rather give you adequate control over your own hours and allow you to enjoy the advantage of being your own boss.

If you enjoy working on automobiles, then starting a car service centre might be what you’re looking for to remain relevant and enjoy your steady income.

However, the automobile industry has its own economics and is changing with each coming day with the advent of technology. For example, recycling oil is one way automotive dealers, manufacturers and repair shops are helping to preserve the environment.

Additionally, cars are being manufactured to run more efficiently and control emissions that affect the air. Therefore, be wise to write a business plan to serve as a commandment for your business, protect and Make sure that you go according to plan.

A Sample Car Service Center Business Plan Template

1. industry overview.

We all can attest to the fact that during the Great Recession of 2008-2010 a lot of people felt that the end of the American automobile industry has finally come like the sun setting in the west. But while that real risk was narrowly avoided for the automobile manufacturing industry, what most individuals don’t or have not understood is the huge industry that arrives after the car is manufactured and sold.

We all know that the automotive aftermarket, as against the sales of new cars, performed very well during that economic recession – and is still booming even after the recession. We all know that these machines call automobiles are complex machines that increasingly include sophisticated computers.

But we also know that the said machines are absolutely essential to the majority of the working population, and are always a point of pride for their owners. They needed by both regular and emergency service, replacement parts, paint, cleaning, stereo system installations and a whole lot more.

It is also crucial to note that the automotive aftermarket provides these parts and services, and massively flourishes during economic uncertainty. Because when individuals aren’t buying new cars they are keeping older cars longer.

It is a known fact that the average age of vehicles in the united states is high – and has been climbing steadily over the last several years, and even new cars need regular service but as they get old they need more care and they break down faster than new ones. Service stations and parts retailers both benefit from these particular actions.

It has been estimated that the US automotive aftermarket will be worth $273.4 billion in 2017 – an increase of almost $35 billion in just four years. This we believe puts the aftermarket between 1.5 and 2% of the US Gross Domestic Product.

It is also estimated that over 4.3 million individuals work in the industry and growth is expected frequently in the industry.

We believe that the large and growing fleet of vehicles and their high average age will be the key adrenaline pushing the industry forward. It is also known that older cars need more care and an aging and older national fleet is great news for aftermarket providers.

It has been estimated in the industry that the value of the repair/replacement market for vehicles 0-4 years old is $20.7 billion, but the value of the aftermarket for those 8 or more years old is a whopping $77.3 billion.

2. Executive Summary

Fast Repair Auto Car Services (FRACS) is a new start-up car service centre that offers a complete car service and repair as well as a full-featured retail parts store to the good people of New Orleans, Louisiana. We at FRACS hope to give the people of New Orleans our astounding services with four unique and convenient locations.

We at FRACS plan to grow our venture into a business with outstanding sales by year three and also create a substantial clientele base. We at FRACS understand how competitive the market is and how hard it tends to get, but we believe that only us will be offering the unique service we hope to offer.

We also plan to differentiate our business completely from our competitors by not only offering a hassle-free repair service, but a fully stocked parts store and other car related services.

We hope that not only will this serve a wide range of customers for both service and parts, but the parts department will support the service department by allowing the service department to turnaround jobs far faster than the competition with generally all of the needed parts in stock and on location.

We at FRACS plan to also differentiate our astounding business by having 12 bays at every location we establish. We believe that this will offer incredible value to customers who need their cars fixed right away. We at FRACS do not entertain the idea of wait for service and parts.

We also hope to offer our clients unlimited shuttle service for repair which will make the entire service experience as painless and convenient as possible. We at FRACS will also attract and maintain a loyal customer base through our customer-oriented focus on business.

We also want to make it known that all our employees are trained and held In charge of  providing superior service, building a long lasting trust bond with clients. Because we believe it is very important in the car service centre industry.

3. Our Products and Services

We believe that we have the core competencies within our large workforce to work on all makes and models of domestic and foreign vehicles brought to our service centre. We believe that with twelve service bays at each location, and all our employees dedicated to offer superior customer service, we will be known as the solution to any car problem.

We will always strive to be accurate and honest with customers in terms of quoting cost estimates and repair completion time estimates in order to gain their trust and acceptance. We believe that our employees will always focus on delivering what they promise to our customers at any expected time.

FRACS is dedicated to build a lasting strong customer relationships based on trust and integrity, which we believe will be the catalyst in establishing a strong regular customer base in the industry. FRACS hopes to offer these various kinds of services:

  • Mechanical job like engine , gear, accelerator, shock-absorber etc.
  • Electrical job like horn, light etc.
  • Car air conditioner service
  • Wheel balancing and alignment
  • Sell of car parts and accessories
  • Several oil change service like engine oil, gear oil, steering oil etc.
  • Car body repair service like painting and denting
  • Battery service
  • Car body polish service

4. Our Mission and Vision Statement

  • Our vision at FRACS is to build a standard and world class car service centre with breath taking services and brand that will serve not only the good people of New Orleans, but the United States of America.
  • Our mission at FRACS is to offer high-quality car services and a full range of auto parts to our prospective customers. We at FRACS hope to focus on personalized service channelled to our customers by offering convenience and rapid service which will make us the leading figure in the market.

We at FRACS believe that we are technologically savvy with computerized monitoring of all parts inventory, to make sure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. We at FRACS can also boost of having a strong vendor relationships with the most service conscious vendors who can go to the limit in order to ship major parts rapidly to us.

Our Business Structure

FRACS believe that we have a strong management team that will allow us to actualize and execute our goals and visions. It is very important to note that FRACS have four founding partners, Ernest Brighton, Donald Meth, Wesley Shinuf, and Luke Chin. Ernest Brighton has a background of sales, 15 years of working with Chevrolet.

We believe he will be in charge of the sales and marketing for FRACS. Donald’s core experience is from the management from Advent motors where he was a Vice President in charge a department of 306workers. Wesley is also a product of the auto industry, specifically the car service industry. He spent 8 years at Nino palmers Dealers and then 6 years at Toyota .

He enjoys and participated in multiple roles within the business allowing him to bring to credit FRACS with multiple skills and experience.

However, Luke Chin popularly known as the Oracle of Shanghai brings an astounding 15 years of finance, investment and administration experience to FRACS. Luke was trained in China but later established Chin transcorp, a real estate firm based in Louisiana. He is also known for his unique eye for investment and proper business management.

FRACS believes that our business is an exciting business opportunity that settles the huge need of having a full car service centre that also has a complete retail parts centre. We believe that these distinct services will have benchmarked customer service, something that the industry is not known for having.

We at FRACS believe that our business will be led by a seasoned management team comprising of our four founding partners and other employed workforce, all of whom have extensive industry experience to push us to the top. The portfolios include:

Chief Executive Officer

Service Supervisor

Human Resources and Admin Manager

  • Sales and Marketing Executive
  • Car Service Engineers / Technicians (12)
  • Car wash Attendant

Client Service Executive

5. Job Roles and Responsibilities

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • In charge of providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • In charge of signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Serves as project manager of the organization; works directly with employees
  • Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
  • Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
  • Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
  • Maintains quality service by establishing and enforcing organization standards.
  • Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
  • Makes certain that the auto repair and maintenance department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
  • Make sure that the organization works in line with international best practices.
  • In charge of overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • In charge of training, evaluation and assessment of employees
  • In charge of arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office and factory activities.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyse the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • In charge of handling business research, market surveys and feasibility studies for clients
  • In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Creates new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier

  • In charge of preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • In charge of financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • In charge of developing and managing financial systems and policies
  • In charge of administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the business
  • Serves as internal auditor for the business

Car Service Engineers and Technicians (12}

  • Repairs and replaces automotive engines
  • Performing general automotive repairs
  • Handles Power train repair services
  • Handles Brake repair services
  • Scheduled and preventative repair and maintenance services
  • Repairs trucks
  • Keeps and swaps automotive exhaust systems
  • Maintains and replaces mufflers
  • In charge of car body maintenance and repair
  • Maintains automotive transmissions
  • Repairs automotive brakes
  • Implements automotive electric repairs
  • Implements automotive wheel alignments
  • Repairs automotive radiators
  • Handles wheel alignment and repair services
  • Handles other repair and maintenance services

Car wash attendant

  • Dusts loose dirt and wash cars off with water
  • Makes sure that car windows and doors are properly secured before dusting and washing
  • Adjusts water pressure in hoses to Make sure that no damage occurs
  • Mixes soap and water in appropriate quantities
  • Uses cloth or sponge to soap cars and wash them down
  • Makes sure that windscreens are not scratched during the soaping procedure
  • Hoses down cars properly and make sure that no trace of soap is left behind
  • Dusts the interior of the car and make sure that any trash is disposed-off properly
  • Polishes interior surfaces and vacuum carpeted area inside the car
  • Makes sure that the roof of the car is cleaned or wiped according to instructions
  • Waxes and polishes the car from the outside
  • Makes sure that the car is properly dried from the inside and the outside
  • Puts back placemats after dusting, washing and drying them
  • Drives cars through the car wash area when specifically instructed by car owners
  • Makes sure that any accessories taken out of the car during the car wash procedure are put back before handing the car to the owner
  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Makes sure s that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Serves as a auto parts sell attendant
  • Manages administrative duties assigned by the creative director in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to Make sure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The primary service offered by is at FRACS is the general repair of automobiles for the general public. We at FRACS will have the ability to service most domestic and foreign automobiles. We at FRACS plan to maintain an extensive shop which can fix any automotive issue.

We will also generate income from both the sale of the mechanic’s labour and the sale of after-market parts which may be needed for the repairs. We have adequate plans to make our business the best in the industry, which is why we contacted Access Business Consultants to do our SWOT Analysis for us.

Access Business Consultants are known for the experience and agility they posses in terms of business consulting and analysis. They were very thorough with their dealings and outlined below is a summary of the SWOT Analysis they conducted for us:

According to our SWOT Analysis, the strength of FRACS rests on the power, dedication and experience of our workforce. Our team at FRACS comprises of individuals who understand the automobile industry in and out, they have been in the industry and they understand the changing trends and the quality of innovation needed to stay relevant in the industry.

They also have been put through specialized monitored training that will boost the approach to customers and adequate understanding and adjustment to situation.

It was very easy to note in the SWOT Analysis that the industry we are into is very competitive. It was also noted that our weakness include the time it might take us to  development an identity and consumer brand acceptance, develop and execute effective marketing communications, Identify and execute ongoing affiliate revenue generation, advertising, and ecommerce revenue stream. We believe all these are issues we can handle properly and very fast.

  • Opportunities

Our SWOT Analysis noted that the automotive industry is a huge, diverse set of manufacturing and service businesses that bring cars and trucks to market, keep them in working order, paint, clean, fix and even trash them when it’s time. It stated that the industry will keep growing and we remain an important aspect of the US economy.

Our SWOT Analysis noted that just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new car service centre in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trend

We at FRACS understand how the car service centre industry works and how fast things change. We understand the trend in the industry, which is why we have put it on ourselves to outline them in our comprehensive business plan. They trends in the industry, both old and new, will be properly considered at FRACS, and they include:

  • The increase in complexity of vehicles often requires specialized training. Repair shops can gain an edge by specializing and staying current. However this specialization is leading to a shortage of trained techs in the market.
  • Electric and hybrid cars are bringing new opportunities to market– service, parts, and fuel businesses will need to expand to support these trends.
  • Service providers are now able to leverage technology to gain marketing efficiencies. For example, timely reminders about snow tires and oil changes have already proven to provide an uptick in return business.
  • New cars are getting more reliable. Improvements in technology and materials are increasing useful life and requiring fewer services. New cars, in other words, are able to last longer with less money spent in aftermarket services. Some automobile manufacturers are even recommending longer intervals between standard maintenance services such as oil changes or tire rotations.
  • On the flip side, people do wash new cars more frequently!
  • There are a lot of cars on the road, and keeping them running, keeping them clean and making them your own is big business. This breadth of opportunity and such strong market trends make 2016 an exciting time to get involved!

8. Our Target Market

We at FRACS have conducted a market survey and feasibility studies and we believe that there is a vast range of both corporate and individual clients who would need the services of a car service centre, which we hope to offer with breathtaking services.

We have also created strategies that will help us reach out to various corporate organizations and households who we know can’t afford to do without our services. Below is a list of the people and organizations that we have specifically market our products and services to;

  • Banks, Insurance Companies and other related Financial Institutions
  • Blue Chips Companies
  • Corporate Organizations
  • Manufacturers and Distributors
  • Transport Companies
  • Haulage Companies
  • Individuals and households
  • School with transportation system for students

Our competitive advantage

Our competitive at FRACS rests on the vision and unity of our partners, who understand better than many of their rivals that a service visit does not just include repairing a client’s car; it inculcates the entire service experience from the first time a client talks to their mechanic until they decide to stop driving.

We at FRACS understand perfectly that the long-term profitability of a service firm of this type lies in the repeat customer that finds our services unique and enjoy our excellent experience, even if they must have suffered an inconvenient breakdown.

We all FRACS believe that we will seek to examine every aspects of the service experience to look for ways to improve our customer satisfaction. Also, we believe that all our employees will be rigorously trained and retrained to think about customer satisfaction in order to create a self-sustaining company culture that revolves around this issue at FRACS.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Just we stated above, the primary service to be offered by FRACS is the general service of automobiles for the general public. We believe that we will have the ability to service most domestic and foreign automobiles. We also plan to maintain an extensive shop and outlets which can fix any automotive issue.

We will generate income from both the sale of the mechanic’s labour and the sale of after-market parts which may be needed for the repairs. Below is the outline of the services we will offer and make income from them:

10. Sales Forecast

We at FRACS understand perfectly that the car service centre industry is, operationally, a job-shop environment; it is somewhat difficult to estimate sales. For job-shops, each individual product or service is tailored or unique to that job, and is only initiated once an order is made.

However, our sales projections reflects the professional opinion of our sales and marketing team who believe that in how much we make at FRACS will depend solely on the following assumptions:

  • The number of clients out founding workforce can attract from their previous companies.
  • The outcome of planned promotions and word-of-mouth marketing.
  • Current prices and costs of doing business .
  • The types of automobiles and jobs that will occur in every month.

Yet we believe in the strength of our workforce, which even our SWOT Analysis noted and we believe that we are built on the foundation of success. Our sales and marketing team noted that definite sales projections cannot be analysed, given the prospect of the industry we are into, but are very prepared to shoot FRACS to the top.

  • Marketing Strategy and Sales Strategy

It is utmost goal at FRACS to become the local leader in quality and service experience of all the small car service centre business within the New Orleans area while also striving to keep a low cost plan.

We believe that once a reputation for quality and service experience has been created, and a strong network of referrals is attracting new business, we at FRACS plan to re-evaluate all our strategy and positioning within the market to see if a differentiation strategy is viable.

We believe that this will allow us at FRACS to increase prices and raise profit margins in relation to our competitors on the industry.

We believe that this process is will help us achieve long-term growth until we at FRACS can reach a regional scope of operations. We at FRACS have a simple, direct and modest program of marketing our breath taking services to our target market that includes the following:

  • Direct mailers.
  • Newspaper ads.
  • Yellow pages.
  • Referrals through other local businesses.

We believe that each of these marketing aspects has the benefit of being low cost and creating service awareness that will catapult us into limelight. Our long-term marketing goals at FRACS is to use local radio and TV ads in making sure that people know what we do and where we offer them.

We at FRACS also hope to consider the possibility of having a grand opening program that would feature discounts, food, a local radio disc jockey, and other promotional ideas, and we hope we will actualize it because it is a diehard marketing strategy.

11. Publicity and Advertising Strategy

We understand how competitive the industry is and the level of importance attached to publicity, which is why we expect that a significant number of our founding partners and employees pre-existing clients ( both personal and where they worked ) will desire to switch to FRACS retain the services of their personal mechanics who they believe understand how they automobiles function.

We believe that this will provide a sufficient income until we at FRACS can build up a brand affinity or reputation and see our marketing program take effect in the entire industry. We at FRACS believe that our publicity and advertising strategy will take the form of flyers, direct mailers, price discounts, and advertisements in newspapers and yellow pages.

We at FRACS do not intend to spend a large amount on marketing until the firm is ready to expand either into new facilities or open up new ones. It is estimated this will occur sometime after year five, but we will leverage some approaches to boost our brand awareness and they are;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our Bill Boards on strategic locations all around New Orleans
  • Engage in road show from time to time in targeted neighbourhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of FRACS and the services we offer
  • List our auto repair, servicing and maintenance business in local directories / yellow pages
  • Advertise our auto repair, servicing and maintenance business in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

We at FRACS understand that we exist in a purely competitive environment where each business must be a price taker. This simply means that a business that has no ability to affect the market price of its services, regardless of how many automobiles it services is destined for a crash.

Therefore, putting it, that marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, we at FRACS can service automobiles at total capacity without affecting the price in the market.

All these simply mean that we at FRACS must strive or look to charge our clients at the market price (or lower). It has been estimated that the average price is approximately $400 per vehicle, and we understand that as long as marginal costs do not surpass revenues, the method to increase short-run profits is to service automobiles at maximum capacity.

  • Payment Options

Having done our research and studies, we understand that payment options are the forces that bring a car service centre closer to the heart of the people, and we hope to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.

  • Payment by via bank transfer
  • Payment via POS machine
  • Payment via online bank transfer
  • Payment via mobile money
  • Payment with cash

To provide all these outstanding services, we have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

13. Startup Expenditure (Budget)

We at FRACS understand that no matter how breath taking your ideas and goals might be or how attractive your business plan might be, without proper and enough financing your ideas are just like water poured on a rock.

In every business enterprise fund is a big ingredient that can move a business to the limelight and without a detailed business plan; a business won’t be able to land substantial funds from prospective investors. We have analysed the market and have decided on how we plan to spend our start up fund. These are the key areas where we will spend our start – up capital on;

  • Business incorporation fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring a garage facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
  • The amount required to purchase the needed tool box and repair equipment – $25,000
  • Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
  • Amount required to purchase the needed software applications to run our business – $3,500
  • Launching an official Website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

From our detailed cost analysis above, we will need approximately two hundred and fifty dollars ( $250,000 ) to start FRACS. All our partners are inclined to raise this fund and build a standard business.

Generating Funding / Start up Capital for Fast Repair Auto Car Services (FRCS)

FRACS is a new car service centre business formed or that have four founding partners, Ernest Brighton, Donald Meth, Wesley Shinuf, and Luke Chin. We are the sole owners and operators of the business and they intend to remain so till further notice.

We have been able to raise the required funds need to start FRACS from personal savings. We intend to build a business that will take over the market completely while also giving customers what they want. Their objectives is to make sure sales revenues increase steadily through year three and also to institute a program of superior customer service through rigorous evaluation of service experience.

14. Sustainability and Expansion Strategy

We at FRACS understand that in the car service industry, every business builds its client base one customer at a time and mostly through word of mouth marketing.

Which is why we will also strive to keep our customers with our High-quality work, constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress, and employ intelligent mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.

We also understand that the industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.

We understand perfectly that suppliers have a great deal of power in setting and negotiating the prices of their products and services to car service shops. We believe that this is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies.

We believe that these companies are more consolidated that the car service industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to the car service industry.

This only goes to mean that these companies can set whatever price they wish to. Also, the barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exit the market are low.

The large number of competitors in this field including substitutes means that the pricing for such services are very competitive. We believe that the only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

Also the technological revolution in computers has enhanced our abilities to diagnose and repair our client’s vehicles. We at FRACS have put all these into consideration and believe we will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop.

We will continue to seek new ways to provide a better service through technology and also remain vigilant for new trends.

Checklist/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

Related Posts:

  • Auto Repair Shop Business Plan [Sample Template]
  • Small Engine Repair Business Plan [Sample Template]
  • Mobile Auto Mechanic Business Plan [Sample Template]
  • Windshield Repair Business Plan [Sample Template]
  • Diesel Engine Repair Shop Business Plan [Sample Template]
  • Auto Repair and Car Wash Business Plan [Sample Template]
  • Luxury Car Rental Business Plan [Sample Template]

auto service business plan

Create a form in Word that users can complete or print

In Word, you can create a form that others can fill out and save or print.  To do this, you will start with baseline content in a document, potentially via a form template.  Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to database information.  Following are the recommended action steps in sequence.  

Show the Developer tab

In Word, be sure you have the Developer tab displayed in the ribbon.  (See how here:  Show the developer tab .)

Open a template or a blank document on which to base the form

You can start with a template or just start from scratch with a blank document.

Start with a form template

Go to File > New .

In the  Search for online templates  field, type  Forms or the kind of form you want. Then press Enter .

In the displayed results, right-click any item, then select  Create. 

Start with a blank document 

Select Blank document .

Add content to the form

Go to the  Developer  tab Controls section where you can choose controls to add to your document or form. Hover over any icon therein to see what control type it represents. The various control types are described below. You can set properties on a control once it has been inserted.

To delete a content control, right-click it, then select Remove content control  in the pop-up menu. 

Note:  You can print a form that was created via content controls. However, the boxes around the content controls will not print.

Insert a text control

The rich text content control enables users to format text (e.g., bold, italic) and type multiple paragraphs. To limit these capabilities, use the plain text content control . 

Click or tap where you want to insert the control.

Rich text control button

To learn about setting specific properties on these controls, see Set or change properties for content controls .

Insert a picture control

A picture control is most often used for templates, but you can also add a picture control to a form.

Picture control button

Insert a building block control

Use a building block control  when you want users to choose a specific block of text. These are helpful when you need to add different boilerplate text depending on the document's specific purpose. You can create rich text content controls for each version of the boilerplate text, and then use a building block control as the container for the rich text content controls.

building block gallery control

Select Developer and content controls for the building block.

Developer tab showing content controls

Insert a combo box or a drop-down list

In a combo box, users can select from a list of choices that you provide or they can type in their own information. In a drop-down list, users can only select from the list of choices.

combo box button

Select the content control, and then select Properties .

To create a list of choices, select Add under Drop-Down List Properties .

Type a choice in Display Name , such as Yes , No , or Maybe .

Repeat this step until all of the choices are in the drop-down list.

Fill in any other properties that you want.

Note:  If you select the Contents cannot be edited check box, users won’t be able to click a choice.

Insert a date picker

Click or tap where you want to insert the date picker control.

Date picker button

Insert a check box

Click or tap where you want to insert the check box control.

Check box button

Use the legacy form controls

Legacy form controls are for compatibility with older versions of Word and consist of legacy form and Active X controls.

Click or tap where you want to insert a legacy control.

Legacy control button

Select the Legacy Form control or Active X Control that you want to include.

Set or change properties for content controls

Each content control has properties that you can set or change. For example, the Date Picker control offers options for the format you want to use to display the date.

Select the content control that you want to change.

Go to Developer > Properties .

Controls Properties  button

Change the properties that you want.

Add protection to a form

If you want to limit how much others can edit or format a form, use the Restrict Editing command:

Open the form that you want to lock or protect.

Select Developer > Restrict Editing .

Restrict editing button

After selecting restrictions, select Yes, Start Enforcing Protection .

Restrict editing panel

Advanced Tip:

If you want to protect only parts of the document, separate the document into sections and only protect the sections you want.

To do this, choose Select Sections in the Restrict Editing panel. For more info on sections, see Insert a section break .

Sections selector on Resrict sections panel

If the developer tab isn't displayed in the ribbon, see Show the Developer tab .

Open a template or use a blank document

To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you’re familiar with databases, these content controls can even be linked to data.

Go to File > New from Template .

New from template option

In Search, type form .

Double-click the template you want to use.

Select File > Save As , and pick a location to save the form.

In Save As , type a file name and then select Save .

Start with a blank document

Go to File > New Document .

New document option

Go to File > Save As .

Go to Developer , and then choose the controls that you want to add to the document or form. To remove a content control, select the control and press Delete. You can set Options on controls once inserted. From Options, you can add entry and exit macros to run when users interact with the controls, as well as list items for combo boxes, .

Adding content controls to your form

In the document, click or tap where you want to add a content control.

On Developer , select Text Box , Check Box , or Combo Box .

Developer tab with content controls

To set specific properties for the control, select Options , and set .

Repeat steps 1 through 3 for each control that you want to add.

Set options

Options let you set common settings, as well as control specific settings. Select a control and then select Options to set up or make changes.

Set common properties.

Select Macro to Run on lets you choose a recorded or custom macro to run on Entry or Exit from the field.

Bookmark Set a unique name or bookmark for each control.

Calculate on exit This forces Word to run or refresh any calculations, such as total price when the user exits the field.

Add Help Text Give hints or instructions for each field.

OK Saves settings and exits the panel.

Cancel Forgets changes and exits the panel.

Set specific properties for a Text box

Type Select form Regular text, Number, Date, Current Date, Current Time, or Calculation.

Default text sets optional instructional text that's displayed in the text box before the user types in the field. Set Text box enabled to allow the user to enter text into the field.

Maximum length sets the length of text that a user can enter. The default is Unlimited .

Text format can set whether text automatically formats to Uppercase , Lowercase , First capital, or Title case .

Text box enabled Lets the user enter text into a field. If there is default text, user text replaces it.

Set specific properties for a Check box .

Default Value Choose between Not checked or checked as default.

Checkbox size Set a size Exactly or Auto to change size as needed.

Check box enabled Lets the user check or clear the text box.

Set specific properties for a Combo box

Drop-down item Type in strings for the list box items. Press + or Enter to add an item to the list.

Items in drop-down list Shows your current list. Select an item and use the up or down arrows to change the order, Press - to remove a selected item.

Drop-down enabled Lets the user open the combo box and make selections.

Protect the form

Go to Developer > Protect Form .

Protect form button on the Developer tab

Note:  To unprotect the form and continue editing, select Protect Form again.

Save and close the form.

Test the form (optional)

If you want, you can test the form before you distribute it.

Protect the form.

Reopen the form, fill it out as the user would, and then save a copy.

Creating fillable forms isn’t available in Word for the web.

You can create the form with the desktop version of Word with the instructions in Create a fillable form .

When you save the document and reopen it in Word for the web, you’ll see the changes you made.

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Sample Car Rental Business Plan

car rental business plan

Writing a business plan is a crucial step in starting a car rental. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring car rental business owners, having access to a sample car rental business plan can be especially helpful in providing direction and gaining insight into how to draft their own car rental business plan.

Download our Ultimate Car Rental Business Plan Template

Having a thorough business plan in place is critical for any successful car rental venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A car rental business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The car rental business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your car rental as Growthink’s Ultimate Car Rental Business Plan Template , but it can help you write a car rental business plan of your own.

Example – WheelsJourney Rentals

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At WheelsJourney Rentals, based in Dallas, TX, we are committed to transforming the car rental landscape through our exceptional service offerings. Our focus is on providing a diverse and well-maintained fleet of vehicles, complemented by superior customer service. We emphasize the importance of a seamless rental process, facilitated by our advanced online booking system and flexible rental plans designed to meet a wide range of customer needs. Our dedication to safety, reliability, comfort, and customer satisfaction positions us as a leader in the local car rental industry.

Our success stems from our competitive rates, high-quality service, and the use of cutting-edge technology to enhance the rental experience. We have established ourselves as the preferred choice for car rentals in Dallas by prioritizing customer needs and offering customizable rental solutions. Our achievements to date highlight our ability to adapt to market demands and maintain a competitive edge through continuous improvement in our services and fleet quality.

The car rental industry is highly competitive and influenced by technological advancements, customer preferences, and economic factors. In Dallas, TX, the demand for car rentals is driven by tourism, business travel, and local residents’ needs. The industry’s success is closely tied to the overall health of the economy and the travel industry. Companies that leverage technology to improve the customer experience and offer flexible, cost-effective solutions are well-positioned to succeed. The current trend towards eco-friendly and technologically advanced vehicles presents an opportunity for growth and differentiation within the market.

Our primary target customers include tourists, business travelers, and local residents seeking reliable and convenient transportation solutions in Dallas. These customers value flexibility, quality, and efficiency in their rental experience. By understanding and catering to the specific needs of these diverse customer segments, we aim to build lasting relationships and encourage repeat business. Our focus on customer satisfaction and tailored services enables us to meet the expectations of our target market effectively.

Top competitors in the Dallas car rental market include established national chains and local providers. These competitors offer a range of vehicles and services, but WheelsJourney Rentals distinguishes itself through competitive rates, superior service quality, and a user-friendly online booking system. Our commitment to customer satisfaction and flexibility in rental plans further enhances our competitive advantage, making us a leader in the local market.

WheelsJourney Rentals employs a multifaceted marketing strategy that combines online and traditional advertising methods to reach a broad audience in Dallas, TX. Our online marketing efforts focus on social media engagement, SEO, and targeted email campaigns, while traditional advertising includes billboards and local radio ads. We also leverage partnerships with local businesses and tourism agencies for cross-promotion. Customer referral and loyalty programs are integral to our strategy, encouraging repeat business and attracting new customers through word-of-mouth. Participation in local events and exhibitions allows us to engage directly with potential customers, showcasing our services and fleet quality. This comprehensive approach ensures that WheelsJourney Rentals remains a preferred choice in the vehicle rental market.

Our operations are centered around providing a seamless rental experience, from vehicle selection to return. Key operational processes include fleet maintenance, customer service, and the efficient handling of bookings through our online platform. We have set milestones for expanding our fleet, incorporating eco-friendly vehicles, and upgrading our technology to enhance the customer experience. Achieving these milestones will be critical to our growth and the continuous improvement of our services.

Our management team comprises industry veterans with extensive experience in car rentals, customer service, and business management. Their expertise is instrumental in guiding WheelsJourney Rentals towards achieving its strategic goals and maintaining its competitive edge in the Dallas market. The team’s commitment to excellence and innovation ensures that we remain at the forefront of the car rental industry.

WheelsJourney Rentals is a new Car Rental serving customers in Dallas, TX. As a local car rental business, we saw a gap in the market for high-quality local car rentals in the area and decided to fill it. Our mission is to provide our customers with an unparalleled rental experience, offering a wide range of services tailored to meet their needs.

Our product and service offerings are comprehensive, designed to cater to a wide array of customer needs. We offer daily rental options for those in need of a short-term solution, as well as long-term or monthly rentals for customers requiring a more extended service. For those arriving or departing from the airport, our airport transfer service ensures a seamless travel experience. Additionally, we provide chauffeur services for clients looking for premium convenience and luxury. For our corporate clients, we offer corporate rentals, allowing businesses to meet their mobility needs efficiently and effectively.

Based in Dallas, TX, WheelsJourney Rentals is perfectly positioned to serve customers within the Dallas area. Our local insight and dedication to the community make us the go-to choice for all car rental needs in the region.

Our success is built on a solid foundation. The founder of WheelsJourney Rentals brings a wealth of experience from previously running a successful car rental business. This experience, combined with our commitment to offering better car rental services at competitive rates, sets us apart from the competition. We are uniquely qualified to succeed in the Dallas car rental market.

Since our founding on January 4th, 2024, we have achieved several key milestones as a S Corporation. We have developed a distinctive logo that resonates with our brand identity, carefully selected and trademarked our company name, and secured a prime location that will serve as the base for our operations. These accomplishments mark the beginning of our journey to becoming a leading car rental service in Dallas, TX.

The Car Rental industry in the United States is a thriving and lucrative market. According to recent market research, the industry generated approximately $38 billion in revenue in 2020. This impressive figure showcases the size and potential of the market, indicating promising opportunities for new players like WheelsJourney Rentals.

Furthermore, the Car Rental industry is expected to experience steady growth in the coming years. Market forecasts estimate a compound annual growth rate (CAGR) of 5.6% from 2021 to 2026. This growth can be attributed to various factors, including increasing disposable incomes, rising urbanization, and the growing popularity of domestic and international travel. As a result, WheelsJourney Rentals can anticipate a favorable market environment to establish its presence and attract a significant customer base.

Trends in the Car Rental industry also align favorably with the business model of WheelsJourney Rentals. One significant trend is the rising demand for flexible and convenient mobility solutions. Customers now prefer on-demand car rentals rather than owning a vehicle outright. Additionally, the increasing popularity of ride-sharing platforms and the need for reliable transportation options in urban areas contribute to the growth of the Car Rental industry. By providing hassle-free car rental services in Dallas, TX, WheelsJourney Rentals is well-positioned to tap into this growing trend and capture a substantial share of the market.

Below is a description of our target customers and their core needs.

Target Customers

WheelsJourney Rentals will target local residents who are in need of a temporary vehicle. This customer segment includes individuals whose cars are temporarily unavailable due to maintenance or repairs. The service will tailor its offers to meet the convenience and flexibility that local residents require, providing them with a seamless rental experience.

Additionally, WheelsJourney Rentals will also serve customers who are looking for an upgrade or a special vehicle for occasions such as weddings, anniversaries, or weekend getaways. This segment seeks luxury and premium vehicle options that are not typically available in their personal garages. The company will ensure a variety of vehicle options are available to meet these specific needs.

Moreover, WheelsJourney Rentals is poised to meet the demands of business travelers and professionals who visit Dallas for short-term assignments or corporate events. This segment values efficiency, reliability, and convenience. The company will streamline its booking and vehicle collection processes to cater to the fast-paced nature of business travelers’ schedules.

Customer Needs

Customers in search of reliable transportation solutions can find exceptional value and convenience at WheelsJourney Rentals. They expect a wide range of well-maintained, modern vehicles that cater to diverse needs, whether it’s a compact car for city driving or a spacious SUV for family vacations. Providing the best car rental services means ensuring each vehicle offers comfort, safety, and the latest technology features to enhance the driving experience.

Flexibility in rental terms is another crucial need WheelsJourney Rentals fulfills. Customers appreciate the ability to choose short-term or long-term rentals, adapting to their changing needs whether they’re in town for business, pleasure, or facing unexpected personal circumstances. This flexibility extends to customized pick-up and drop-off options, making the rental process seamless and accommodating to busy schedules.

Moreover, WheelsJourney Rentals understands the importance of transparent pricing and exceptional customer service. Customers seek clear, upfront information about costs, without hidden fees, ensuring they can make informed decisions that fit their budget. Exceptional customer service, including responsive support and quick resolution of any issues, reinforces trust and loyalty, making WheelsJourney Rentals a preferred choice for car rental services in the area.

WheelsJourney Rentals’s competitors include the following companies:

Alamo Rent A Car offers a range of services including economy cars, SUVs, and luxury vehicles for both leisure and business travelers. Their price points vary depending on vehicle type, rental duration, and location but are competitive within the industry. Alamo generates significant revenue from both domestic and international travelers, thanks to its presence in major airports across the United States and in several other countries. Alamo serves a wide customer segment including individual travelers, families, and business professionals. They operate in numerous geographies including the United States, Canada, Mexico, Europe, Australia, and South America. A key strength of Alamo is their self-service kiosks that expedite the rental process for customers. However, a potential weakness is their reliance on airport locations, which may limit their reach to local renters who prefer more accessible city or neighborhood locations.

Enterprise Rent-A-Car offers a broad spectrum of vehicles including cars, trucks, and vans to cater to a variety of customer needs. Their pricing is flexible, with options for daily, weekly, and long-term rentals, often including deals and discounts for certain customer segments. Enterprise boasts substantial revenues, underpinned by a strong brand and extensive network of locations. Enterprise targets a diverse customer base from individual renters to large corporations requiring fleet services. The company has a vast geographical presence, operating not just in the United States but also in Europe, Canada, Asia, and beyond. One of Enterprise’s key strengths is its customer service, often recognized as industry-leading. However, its size and scope can sometimes lead to inconsistencies in service quality across different locations.

Rose Car Rentals might not have the same level of brand recognition as Alamo or Enterprise but offers competitive products and services in select markets. Their vehicle offerings include standard cars, luxury models, and specialty vehicles. Rose Car Rentals’ pricing strategy aims to attract budget-conscious consumers with competitive rates and transparent fees. Rose Car Rentals primarily serves customers in urban and suburban areas, focusing on convenience and personalized service. They operate in a limited geographical area but are looking to expand their presence. A strength of Rose Car Rentals is their focus on customer satisfaction and local market expertise. However, their limited geographical reach and smaller fleet size compared to larger competitors could be seen as weaknesses.

Competitive Advantages

At WheelsJourney Rentals, we pride ourselves on delivering superior car rental services that set us apart from the competition. Our dedication to excellence ensures that customers receive not only competitive rates but also unparalleled quality in every aspect of our service. We understand that to stand out in the bustling Dallas market, it is crucial to offer more than just affordability. Therefore, we focus intently on maintaining a fleet of vehicles that are not only diverse to cater to the varied preferences and needs of our clients but are also meticulously maintained to ensure safety, reliability, and comfort. Our commitment to providing exceptional customer service further enhances our competitive edge, making us a preferred choice for both locals and visitors.

In addition to our competitive rates and superior service quality, we also leverage the latest technology to streamline the rental process, making it more efficient and user-friendly. Our online booking platform is designed with the customer in mind, offering a seamless experience from selection to payment. Furthermore, we understand the importance of flexibility in today’s fast-paced world, which is why we offer customizable rental plans that can be tailored to meet the specific needs of our clients. Whether it’s a short-term rental for a quick trip or a long-term arrangement for extended stays, we have the capability to accommodate various requirements with ease. This adaptability, combined with our unwavering commitment to customer satisfaction, solidifies our position as a leader in the Dallas car rental market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

For customers seeking versatile transportation options in Dallas, WheelsJourney Rentals offers a suite of car rental services tailored to meet a variety of needs. From daily rentals for quick trips around town to long-term or monthly rentals for extended stays, each service is designed with customer convenience and satisfaction in mind. Moreover, WheelsJourney Rentals facilitates seamless airport transfers and provides chauffeur services for those desiring a more luxurious and relaxed travel experience. For businesses, the company’s corporate rentals offer a reliable solution for accommodating visiting professionals or facilitating company travel requirements.

The daily rental service allows customers to enjoy the flexibility of having a car for short durations without the commitment of a long-term contract. Prices for daily rentals start from an average of $45 per day, depending on the vehicle model chosen. This option is perfect for tourists or locals needing a temporary vehicle.

For clients requiring a vehicle for a longer period, the long-term or monthly rental service presents an economical and hassle-free alternative to leasing or purchasing. Prices for this service are competitive, with rates averaging $900 per month. This option is ideal for individuals on extended stays or businesses in need of a fleet for a project duration.

Ensuring a smooth and comfortable transition from the airport to the final destination, WheelsJourney Rentals offers airport transfer services. With prices starting at $60, clients can expect a seamless experience right from their arrival, without the common hassles associated with airport transportation.

Chauffeur services cater to those seeking a premium travel experience, whether for special occasions, business, or leisure. Clients can enjoy the luxury of being driven by a professional chauffeur in a high-end vehicle. This service is priced from $150, varying by the duration and specific requirements of the client.

Finally, corporate rentals provide businesses with a flexible and cost-effective solution for their transportation needs. Whether it’s accommodating employees on business trips or managing a temporary increase in operational demand, WheelsJourney Rentals offers tailored packages with special rates, starting from an average price of $800 per month for corporate clients.

WheelsJourney Rentals is committed to delivering exceptional service and value across all its offerings, ensuring that every customer finds the perfect vehicle solution for their needs in Dallas.

Promotions Plan

WheelsJourney Rentals employs a variety of promotional methods and tactics to attract customers in Dallas, TX. Online marketing stands at the forefront of these efforts, leveraging the power of social media platforms, search engine optimization (SEO), and targeted email campaigns. By engaging potential customers where they spend a significant portion of their time, WheelsJourney Rentals ensures its visibility and relevance in a competitive market.

In addition to online marketing, WheelsJourney Rentals also utilizes traditional advertising methods such as billboards and local radio ads. These mediums offer broad exposure, helping to build brand recognition and trust within the community. Furthermore, partnerships with local businesses and tourism agencies will play a crucial role in cross-promotion, reaching an audience that is already interested in travel and vehicle rental services.

Customer referral programs are another key tactic in WheelsJourney Rentals’ promotional strategy. By incentivizing current customers to refer friends and family, the company taps into the power of word-of-mouth marketing. This not only increases the customer base but also strengthens customer loyalty, as people tend to trust recommendations from people they know.

Loyalty programs will also be implemented to encourage repeat business. These programs reward customers for their continued patronage, offering discounts, special offers, and exclusive benefits. This approach not only fosters a loyal customer base but also differentiates WheelsJourney Rentals from its competitors.

Lastly, attending and sponsoring local events and exhibitions will raise the profile of WheelsJourney Rentals. Participation in such events demonstrates the company’s commitment to the community and allows for direct engagement with potential customers. It provides an excellent opportunity to showcase the range of services and the quality of vehicles offered, creating a lasting impression on event attendees.

By employing these promotional methods and tactics, WheelsJourney Rentals expects to attract a wide range of customers in Dallas, TX. The combination of online and traditional marketing, alongside customer engagement programs, ensures that WheelsJourney Rentals remains competitive and becomes a preferred choice for vehicle rental services.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of WheelsJourney Rentals, there are several key day-to-day operational processes that we will perform.

  • Vehicle Maintenance and Cleaning: We ensure all vehicles are thoroughly cleaned and sanitized before each rental. Regular maintenance checks are conducted to ensure safety and reliability.
  • Inventory Management: We track the availability of our fleet in real-time, allowing us to efficiently manage reservations and anticipate vehicle needs.
  • Customer Service: We provide exceptional customer service, handling inquiries, reservations, and any issues that arise, promptly and professionally.
  • Booking and Reservation Management: We utilize an online booking system that allows customers to easily rent vehicles. This system is regularly updated to reflect our current inventory.
  • Payment Processing: We securely process payments, offering multiple payment options to cater to all customers. We also manage financial records for each transaction.
  • Insurance and Liability Management: We ensure all vehicles are covered by comprehensive insurance policies and manage any claims that may arise.
  • Marketing and Promotions: We actively engage in marketing activities, including social media promotion, to attract new customers and retain existing ones.
  • Compliance and Regulations: We stay updated on and comply with all local and federal regulations that affect the car rental industry, ensuring our operation is legal and ethical.
  • Feedback Collection and Analysis: We collect customer feedback through various channels and analyze it to identify areas for improvement and to enhance customer satisfaction.
  • Employee Training: We conduct regular training for our staff to ensure they are knowledgeable about our fleet, customer service best practices, and safety protocols.

WheelsJourney Rentals expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure a Strategic Location: Identify and secure a prime location in Dallas, TX, that is accessible and visible to potential customers, such as near airports, hotels, or major tourist attractions.
  • Fleet Acquisition: Purchase or lease a diverse and reliable fleet of vehicles that cater to a wide range of customer preferences, including economy, luxury, and specialty vehicles.
  • Obtain Necessary Licenses and Insurance: Ensure all regulatory requirements are met, including obtaining a business license, vehicle insurance, and liability coverage to protect the company and its customers.
  • Develop an Online Booking System: Launch a user-friendly website and mobile app that allows customers to easily browse the fleet, make reservations, and manage their bookings.
  • Launch Marketing Campaigns: Implement targeted marketing strategies to build brand awareness and attract customers. This includes digital marketing, partnerships with local businesses, and promotional offers.
  • Hire and Train Staff: Recruit a team of professionals for customer service, vehicle maintenance, and operations. Provide comprehensive training to ensure high-quality service and safety standards are met.
  • Launch Our Car Rental: Officially open for business and start serving customers. This involves making sure all the previous steps are completed successfully and the service is ready for public use.
  • Implement Customer Feedback Mechanisms: Establish channels for receiving and analyzing customer feedback to continually improve service quality and customer satisfaction.
  • Reach $15,000/Month in Revenue: Focus on growing the customer base and increasing rental volume to achieve a monthly revenue target of $15,000, indicating initial signs of profitability and market acceptance.
  • Expand Fleet and Services: Based on demand and customer feedback, gradually expand the fleet with additional vehicles and potentially introduce new services like car sharing or long-term rentals to diversify revenue streams. These milestones are designed to systematically address the key aspects of launching and growing a successful car rental business in Dallas, TX, while mitigating risks associated with new business ventures.

WheelsJourney Rentals management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

William Johnson, CEO

With a proven track record of entrepreneurial success, William Johnson brings a wealth of knowledge and expertise to WheelsJourney Rentals. Having successfully run a car rental business in the past, Johnson possesses a deep understanding of the industry’s intricacies. His leadership skills, coupled with his ability to navigate the competitive landscape of car rentals, make him exceptionally qualified to guide WheelsJourney Rentals towards achieving its goals. Johnson’s strategic vision and commitment to excellence are foundational to fostering a culture of innovation and customer satisfaction within the company.

To reach our growth goals, WheelsJourney Rentals requires significant investment in fleet expansion, technology upgrades, and marketing initiatives. The financial plan outlines our strategy for securing the necessary funding to support these initiatives and ensure our continued success in the competitive Dallas car rental market.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Car Rental Business Plan Example PDF

Download our Car Rental Business Plan PDF here. This is a free car rental business plan example to help you get started on your own car rental plan.  

How to Finish Your Car Rental Business Plan in 1 Day!

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MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

Moscow

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

moscow-initiatives

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

  • Weighted scoring
  • Value vs. complexity
  • Buy-a-feature
  • Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

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Moscow International Business Center: The Latest Architecture and News

Moscow's high rise bohemia: the international business district with no business.

Moscow's High Rise Bohemia: The International Business District With No Business - Featured Image

The Moscow International Business Center (Also known as Moskva-City ) was meant to be Russia ’s ticket into the Western world. First conceived in 1992, the district at the edge of Moscow’s city center is intended to contain up to 300,000 inhabitants, employees and visitors at any given moment and, when completed, will house over 4 million square meters of prime retail, hotel and office space to create what the Russian government desired most from this project: an enormous financial district that could dwarf London’s Canary Wharf and challenge Manhattan . Twenty three years later though, Moscow-based real estate company Blackwood estimates that as much as 45% of this new space is entirely vacant and rents have plummeted far below the average for the rest of Moscow. The only press Moskva-City is attracting is for tenants like the High Level Hostel , a hostel catering to backpackers and other asset-poor tourists on the 43rd floor of the Imperia Tower , with prices starting at $25.50 for a bed in a six-person room. This is not the glittering world of western high finance that was envisioned back in the post-Soviet 90s; but what has it become instead?

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How to Write a Cleaning Service Business Plan + Free Sample Plan PDF

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Elon Glucklich

7 min. read

Updated February 17, 2024

Free Download: Cleaning Service Business Plan Template

With busy schedules and job demands, not everyone has time to clean up after themselves. 

That’s why nearly 10 percent of Americans hired residential cleaning services as of 2020, and the demand for cleaners is rising. And despite a resistance to return to the office, commercial cleaning remains a $100 billion industry . Building owners still need pristine spaces if a lease or sale opportunity arises.

If you’re getting into the cleaning industry, or trying to grow your existing business, you’ll need to do some upfront work. That’s where a business plan comes in. This article will help you ensure that you’re meeting the right market opportunity, and that your business brings in enough revenue to be profitable long-term. If you need a bank loan or investment , a business plan will be crucial.

Are you looking for a free, downloadable cleaning service sample business plan PDF to help start your own business plan, Bplans has you covered.

  • What should you include in a cleaning service business plan?

Keep your plan concise, and focus only on the most important sections for your business. Your plan will likely include some or all of these sections:

  • Executive summary
  • Market analysis
  • Products and services
  • Marketing and sales strategy
  • Company overview
  • Financial plan

It’s especially important for a cleaning service business plan to consider the wide range of services and related products you may offer. Your business might provide specialized cleaning services, or sell eco-friendly cleaning products along with cleaning homes or office spaces.

You’ll need to detail your strategies for promoting each of these products and services to maximize the revenue you generate from each client.

Here’s an example of a cleaning service business plan outline.

A sample outline for a cleaning service business plan.

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  • The 8 elements of an effective cleaning service business plan

1. Executive summary

The executive summary is a broad overview of your plan. Without going over one to two pages, outline all of the components of your cleaning service business. 

Include a mission statement in your executive summary. This simple, action-oriented statement explains your company’s purpose. Maybe your goal is to grow into your area’s leading residential cleaning service. Or to expand the market for eco-friendly cleaning solutions. It summarizes what your company does for customers, employees, and owners. It also helps someone reading your business understand in greater detail what sets your business apart from competitors, and how it will be profitable.

If you’re writing your plan for a bank or investor, they will start with the executive summary. So it’s where you’ll want to make a good first impression. Try to draw them in right away by showing you have a clear value proposition.

2. Market analysis

The market analysis section is where you make the case that your business can generate enough demand to be successful. To do that, you’ll need to thoroughly assess your market, identifying key trends in the region’s home or commercial real estate sectors that might indicate a need for your services.

Evaluate the size of your potential market , including residential and commercial segments. You should also analyze the competition . Start by identifying the number of existing providers and their service offerings, and highlight any gaps you observe in the market that your business can fill.

3. Cleaning services and products

This section should detail the cleaning services and products you offer. These may include various residential and commercial cleaning services, like standard cleaning, deep cleaning, specialized disinfection services, or eco-friendly cleaning options.

If you plan to use specific cleaning products or specialized equipment, also detail these. Emphasize any services or products that set your business apart from the competition, like allergen-free cleaning services for homes or exclusively green cleaning products.

4 . Marketing and sales strategy

Your marketing and sales strategy is how you put your market research into action to attract and retain customers for your cleaning service.

Start by identifying the most effective marketing channels for reaching your target market, such as online advertising, social media , local flyers, or partnerships with real estate agencies.

To reach the broadest customer base possible, outline your digital and traditional marketing strategies. Discuss the importance of a strong online presence, including a user-friendly website and active social media profiles to build brand awareness and credibility. 

You should also provide information about your pricing strategy , and whether you’ll offer special promotions or loyalty programs to encourage repeat business and referrals.

5. Milestones

The milestones section is where you outline the key objectives for your business and timelines for achieving them. This section can be short, with individual milestones listed as bullet points.

Milestones could include securing initial funding, acquiring necessary licenses, launching your marketing campaign, reaching a certain number of clients, or hitting revenue targets. Be sure to list when you expect to achieve each milestone, and which members of your team will be responsible for reaching them.

6. Company overview

The company summary gives a brief overview of your cleaning business. Include the legal structure , target service area, and history of your business if it already exists.

If you’re writing your plan because you’re seeking funding for your business from a bank, clearly state how much you’ll need, how you plan to use it, and how it will benefit the business. Funding uses could include purchasing new equipment to expand your services, or hiring additional staff to widen your service area.

You can also include a brief management team section covering your key employees, their roles, responsibilities, qualifications, and experience. 

If you plan to contract with cleaning crews instead of hiring employees, describe how this arrangement will work and why you think it will benefit your business.

7. Financial plan and forecasts

Your financial plan should present detailed financial projections, including revenue , costs , and profitability .

If you’re a new business, list your startup costs , including initial equipment, supplies, licensing, and marketing investments. Also, outline your funding sources, such as loans, investments, or personal savings going into the business.

Include a cash flow statement , income statement , and balance sheet . The financial statements and projections should demonstrate your cleaning service’s potential to generate sustainable profits over the long term.

8. Appendix

The appendix is an optional section for you to add supporting information or documents that don’t fit within the plan. This could include market research data, lease agreements, employee contracts, or licensing and permit documents.

  • Writing an effective cleaning service business plan: Key considerations

When writing your cleaning service business plan, focus on these areas to increase your likelihood of success.

1. Offer diverse service offerings

The cleaning industry caters to a wide array of customer needs, from residential homes with regular upkeep, to commercial spaces that need specialized sanitation. Offering services to the broadest customer base you can manage will help you expand your share of the market .

2. Pricing strategy  

Your pricing strategy is vital to balance attracting and retaining customers to ensure your business remains profitable. 

Extensive market research into competitors should help you understand what represents a competitive pricing structure in your target area. Offering flexible pricing models, like flat rates for certain services or discounts for recurring appointments, can also appeal to a broader customer base. Just make sure your forecasts show that you’ll generate more revenue from repeat business through any discounts you decide to offer.

3. Protect your reputation

Trust and reputation are crucial in the cleaning service industry, where small mistakes can cost you customers. Consider in your marketing plan whether your branding and customer feedback policies emphasize your commitment to quality work and reliable service. And make sure to check how your business is being reviewed online.

4. Professional training and standards

To achieve a reputation as a high-quality cleaning service, your standards as a business owner need to trickle down to your employees. The operations section of your plan should include training your workers on the latest cleaning techniques, customer service best practices, and safety protocols to ensure your team meets those high standards you’ve set.

5. Online marketing and presence

We touched on this in the marketing and sales strategy section, but strong online and social media presences are fairly low-cost tactics for reaching new customers. Consider how much a professionally designed website that’s search engine optimized, active social media engagement, and strategic online advertising might increase your visibility.

  • Download your cleaning service sample business plan PDF

Download this cleaning service sample business plan PDF for free right now, or visit Bplans’ gallery of more than 550 sample business plans if you want more options.

Don’t get hung up on finding a sample business plan that exactly matches your cleaning service. Whether you’re setting up a boutique eco-friendly cleaning service or a broad-scale commercial cleaning operation, the core elements of your business plan will largely be consistent.

There are plenty of reasons cleaning service business owners can benefit from writing a business plan — you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, thinking through every aspect of your business will help you ensure you’re not overlooking anything critical as you grow.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Check out LivePlan

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    Written by Dave Lavinsky Auto Repair Business Plan You've come to the right place to create your Auto Repair shop business plan. We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

  2. How to Write an Auto Repair Shop Business Plan + PDF| Bplans

    The 8 elements of an effective auto repair shop business plan 1. Executive summary The executive summary is a high-level overview of your business plan. It shouldn't be more than two pages, and even though it goes at the beginning of the plan, you should write it last.

  3. Auto Repair Shop Business Plan Example

    1.1 Objectives The objectives over the next three years for F & R Auto Repair are the following: Sales revenues increase steadily through year three. Institute a program of superior customer service through rigorous evaluation of service experience. Hire three more mechanics. Need actual charts?

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    Your auto repair business plan is a living document that should be updated annually as your company grows and changes. Sources of Funding for Auto Repair Businesses With regards to funding, the main sources of funding for an auto repair business are personal savings, credit cards, bank loans and angel investors.

  5. Auto Repair Shop Business Plan: Guide & Template (2024)

    Industry Overview In 2021, 162000 establishments had a combined annual revenue of $115 billion in the US auto repair industry. The growth has mainly come from the increasing number of cars on the road. Also, the growing mileage consumption has played a huge role.

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    Services 👇 Check all our resources on auto repair businesses 👇 📘 Business Plan 💰 Startup costs 📊 Financial plan 🔎 KPIs 📈 Profits & Break-even Whether you're looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your auto repair shop, you will need to prepare a solid business plan.

  7. How to write a winning auto repair shop business plan

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    Start your own auto repair service business plan Quick and Dirty Auto Repair Executive Summary Opportunity Problem Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts.

  10. Complete Guide on Auto Repair Shop Business Plan (2023)

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  11. The #1 Auto Repair Business Plan Template & Guidebook

    How to Write a Auto Repair Business Plan in 7 Steps: 1. Describe the Purpose of Your Auto Repair Business. The first step to writing your business plan is to describe the purpose of your auto repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  12. How to Start and Finance Your Own Auto Repair Shop

    Form an LLC, corporation, or nonprofit, and get an EIN, business license, or registered agent service. Use Nav to find the right business formation service for your business. Compare Now Current State and Outlook of the Auto Repair Industry

  13. Auto Repair Business Plan Sample

    NOV.11, 2016 Auto Repair Business Plan Sample ( 7 votes, average: 4.57 out of 5) Article Auto Business plans Auto Detail & Repair Business Plans Business Plan Templates Table of Content Do you want to start an auto repair shop business? Are you thinking of starting an auto repair shop?

  14. Business Plan Template for Auto Mechanics

    When creating a business plan for your auto repair shop or freelance auto mechanic business, ClickUp's Business Plan Template has got you covered. Here are the main elements of this List template: Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that you stay organized ...

  15. Auto Repair Shop Business Plan Sample

    Navigate regulations. Familiarize yourself with local, state, and federal rules governing the auto repair industry. Obtain the necessary licenses and permits to properly operate your shop, and of course, ensure your business adheres to the highest environmental and safety standards.

  16. Auto Repair Shop Business Plan [Sample Template]

    1. Industry Overview Auto repair business is amongst the highly thriving and profitable easy to setup auto services related business idea an entrepreneur can successfully start. All over the world, car repairs is one business that never goes into extinction.

  17. How to Write Auto Repair Shop Business Plan? Guide & Template

    An auto repair shop business plan is a comprehensive document that outlines the goals, strategies, financial projections, and operational details of your automotive repair business. It serves as a ...

  18. Car Service Center Business Plan [Sample Template]

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  21. Auto Repair Shop Business Plan Template + Example

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  25. Auto Services Business Plan Examples

    Not sure where to start? Download one of our Auto Services Sample Plans for an outline of everything you need in your business plan. If you're looking to develop a more modern business plan, we recommend you try LivePlan. It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

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  29. How to Write a Cleaning Service Business Plan

    Here's an example of a cleaning service business plan outline. Brought to you by. Create a professional business plan Using AI and step-by-step instructions Create Your Plan. Secure funding. Validate ideas. Build a strategy. The 8 elements of an effective cleaning service business plan 1. Executive summary