How To Open Automobile Repair Shop? [A Complete Guide]

Table of Contents:

1. How Do I Succeed In Auto Repair Business?

2. how to start a automobile repair shop, 3. types of equipment that you'll need to open an auto repair shop, 4. layout and structure for auto repair business, 5. what are the most profitable automobile repair shop ideas.

Do you have an interest in automobiles and want to open your auto repair business one day? It is impossible to own a vehicle, and not having to get it repaired, at some time or another. In India, more and more people are buying luxury cars, so the focus for repairs has shifted from cost to quality. Vehicles have become very technical, so most people take them to a workshop for even simple things like changing the oil.

So, an auto repair business is definitely a lucrative idea. An automobile repair workshop is a garage where modern vehicles are repaired by mechanics and technicians. It is a highly unorganised sector but has good potential. So, more and more entrepreneurs are entering this business to provide customers assured car services and repair. Like all other businesses, you have to put in a lot of time, money, and effort to be successful.

automobile workshop business plan india

Starting an automobile repair workshop must figure in a list of top 10 small business ideas . However, it is better to start small and slowly build traction as the business grows. Another reason is that the equipment and tools are quite expensive, so you will need some time to build up your arsenal! Here, we describe how you can start an auto repair business:

  • Have A Business Plan- A clear business plan is necessary to make your enterprise a success. Make a business plan and define the scope of your operation. Determine how many customers can you manage in a day, and in what ways can you help them. You can either start an auto shop business from the scratch or buy an existing business. Starting a business from scratch means that you have to buy all the tools and equipment. Franchising is another option. Though the initial fees are high, you get the advantage of marketing and a national brand name.
  • Location- Starting an auto repair shop at a strategic location where there are not too many such services around will be a smart decision. It should also be close to main roads and highways, and at a centralised location concerning your customer base. If you have a garage or shed at home, you can start your business from there. One thing to note is that there should be enough space in the workshop to accommodate all your future needs.
  • Finance- To start this business, you have to make some investments or get a loan. You will need some funds to lease or rent your workshop space, buy the equipment, decorate the space, and put up a signboard. Your business’s break-even analysis will be based on the average running costs, including fixed costs such as utilities, rent, etc., and salaries. Your business plan will help you create a set of financial projections that will help you to secure investments or get a loan to start your shop. Managing cash flow can be a challenge for some auto shops. The minimum return on investment should be 30 percent per annum. The car repair service cost is an important factor while pricing the services.

animated banner of manpower

4. Manpower- Modern cars have many high-tech features like lane-centering steering, adaptive cruise control, and Bluetooth entertainment systems, that take a lot of expertise. You have to hire highly-skilled, professional technicians who are trained to attend to any issues arising on the vehicles. The mechanics should be able to handle multiple types of car engines. People skills along with a caring personality are important in this job.

If you care about your work, you would need the right tools and equipment to get started. You can buy a lot of equipment second hand, where you can get a good deal.

  • Floor Jacks and jack-stands to lift up the cars.
  • A heavy-duty air compressor to power your garage.
  • Wrenches, belts, gear, shafts, and other specialty tools.
  • Oil drain bucket to hold coolant or oil.
  • Battery charger and jumper to jump cars, especially if they are towed to your garage.
  • Engine hoist for servicing engines.
  • Brake blades-buy a good brand because these are going to be your bread and butter.
  • A wall-mounted strut compressor will allow you to do suspension work on customer’s cars. Cars need to change their struts after around every 100,000 km. This gadget will help you to do that.
  • Working bays where you will service the cars.
  • A brake lathe.

All these types of equipment will help your business to be seamless, once it becomes operational.

Also read: Air Compressor Manufacturer in India

While starting an auto repair business , you have to carefully plan the layout of your shop. Since you will be using a clear-lift hoist, the ceiling should be at least 14 feet high. Also, the access must be wide enough for the customers to drive their cars in. Among the different areas, you will need a reception hall for customers, a car lift area, a workbench area, a warehouse to keep spare parts and tires, and an office.

The auto shop should maintain a uniform, professional appearance for customers, maximising space and improving the consumer experience. The waiting area should be nice because this is where the customers are going to sit while their cars are being serviced. Make sure to have a TV and a coffee vending machine installed to make them feel comfortable.

Also Read: Best Tyre Brands In India


It is very important to keep the workplace and the office area clean. This will convey a professional look and also impress the customers. Customers can judge the quality of work in your shop, by how clean the place is.

The major issues that affect auto repair shops are a lack of standardised service, transparency, and trust. You would need to build the right infrastructure to give great service.  The range of services that your workshop can provide are:

  • Periodic maintenance and oil change
  • Body repairs and denting- painting
  • Wheel balancing
  • Brake and engine service
  • Repair and maintenance of fuel injection system.
  • Overhaul of clutch and suspension system
  • AC diagnostics and service.
  • Tire service
  • Automatic car wash

Your workshop can offer other value-added services like pick-up-and-drop, annual service maintenance plan, roadside assistance, cashless inspection and repair covered by insurance, etc. Other additional services might include the installation of customised alarm systems, the tinting of windows, and the beautification of the vehicle. Auto collision repair is another niche and profitable field.

All of the above require you to have proprietary knowledge, hi-tech tools, and software. You can also stock genuine spare parts because Original Equipment Manufacturer (OEM) parts are often difficult to obtain. You can also start an auto body shop and repair business. This will be able to fix any damage to a car or SUV. This includes glass and windshield replacement and paint refinishing.


To avoid wasting resources, labor, and time in your auto shop, proper organisation is the key. Smart design and efficient use of space enhance aesthetics and streamline work. An efficient workshop should serve the daily needs of technicians, allowing them to work comfortably and efficiently. You have to make a catalog of all your special tools so that you don’t waste time looking for them. Wall systems and storage cabinets can be used to keep the tools and make the workspace clutter-free.

An organised auto-shop ensures ease of access for parts and tools, logical procedural sequences, and efficient use of space. Customer satisfaction should be your number one goal. You should form a tie-up with the major insurance service providers so that when a customer turns up with a damaged car, you can provide him with a cashless repair. This will be a seamless experience for the customer.

mechanic carrying tools in his hand against the car

Marketing Strategies

To keep your customers coming back, and to grow your business, you need to implement trackable marketing strategies. You can ask your satisfied customers to give you good reviews, which you can post on your social media page. You can list your business on any relevant business site like GoogleMy Business, and share relevant information like shop timings, prices of services, and more. All over the globe, the auto repair business is important, because there is a constant need to get cars fixed. So, this business will never be extinct, and there are lots of opportunities to make money in this venture.

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How to start an Automobile Repair Business in India: Profitable Business Idea for Entrepreneurs & Startup

Automobile Repair Business

How To Open Automobile Repair Shop: Small Business Idea

Starting an automobile repair business in India can be a lucrative endeavor, but there are a few things you need to know before you get started. Here are some tips to help you get started:

Automobile Repair Market in India

The automobile repair market in India is growing rapidly, as more and more people are becoming interested in fixing their own cars.

If you’re thinking of starting an automobile repair business in India, here are a few things you need to know:

1. The market is competitive, so you need to find ways to set yourself apart from the competition. One way to do this is by offering superior customer service.

2. You’ll need to have a good understanding of automotive mechanics if you want to be successful in this business.

3. It’s important to have a well-equipped workshop if you want to be able to handle a wide range of repairs.

4. You’ll also need to be able to market your business effectively if you want to attract new customers.

How to start an Automobile Repair Business in India

If you are thinking of starting an automobile repair business in India, there are a few things you need to know.

Establish a business plan.

This is essential for any business, and it is especially important when starting a new business in a competitive market like automotive repair.

Your business plan should include a detailed overview of your business, including information on your target market, your competitors, your marketing strategy, and your financial forecast.

Choose the right location.

When starting an automobile repair business, it is important to choose a location that is convenient for your customers. You want to be in an area with a lot of traffic and plenty of potential customers.

Invest in the right equipment.

In order to run a successful automotive repair business, you need to invest in the right equipment. This includes tools and equipment for diagnosing and repairing cars, as well as a workshop area that is properly equipped and organized.

Train your staff.

In order to provide quality service, it is important to train your staff properly. This includes providing them with the necessary skills and knowledge to diagnose and repair automobiles.

Promote your business.

In order to attract customers, you need to promote your business. This can be done through traditional marketing methods such as print and television advertising, as well as online marketing techniques such as search engine optimization and social media marketing.

By following these tips, you can increase your chances of success when starting an automobile repair business in India.

With a little hard work and dedication, you can build a successful business that will provide you with a good income.

Equipment That You’ll require To Open An Auto Repair Shop?

Opening an auto repair shop can be a great business venture. However, before you get started, you’ll need to make sure that you have the right equipment. Here’s a look at some of the types of equipment that you’ll need:

Diagnostic tools

In order to properly diagnose and repair cars, you’ll need to have a good selection of diagnostic tools. This includes everything from code readers to scan tools.

A good auto repair shop will have at least two lifts. These are necessary for lifting cars off the ground so that you can work on them more easily.

Jacks and stands

In addition to lifts, you’ll also need a good selection of jacks and stands. These are necessary for supporting cars while you’re working on them.

Of course, you’ll also need a wide variety of tools to properly repair cars. This includes everything from wrenches to screwdrivers to impact guns.

Parts washer

A parts washer is a critical piece of equipment for any auto repair shop. This is used for cleaning parts and components so that they can be reused.

Air compressor

An air compressor is necessary for operating many of the tools in your shop. It’s also useful for inflating tires.

If you plan on doing any welding, you’ll need a welder. This is used for joining metal parts together.

Painting equipment

If you plan on painting cars, you’ll need a good selection of painting equipment. This includes everything from paint guns to air compressors.

Office equipment

In addition to the equipment needed for repairing cars, you’ll also need a good selection of office equipment. This includes everything from computers to fax machines.

Shop supplies

Finally, you’ll need a variety of shop supplies. This includes things like cleaners, rags, and oil absorbent pads.

By investing in the right equipment, you can set up a successful auto repair shop. Just make sure that you take the time to research the different types of equipment that you’ll need before you get started.

What Are The Different Types Of Services That Auto Repair Shops Offer?

Auto repair shops offer a wide variety of services. Here’s a look at some of the most common types of services that these businesses offer:

Oil changes

One of the most common services that auto repair shops offer is oil changes. This involves draining the old oil from a car and replacing it with new oil.

Tire rotation

Automobile Repair Business

Tire rotation is another common service offered by auto repair shops. This involves taking the tires off of a car and switching them around so that they wear evenly.

Brake repairs

Brakes are an important part of a car, and they need to be repaired when they wear down. This is a service that auto repair shops offer.

Transmission repairs

Transmission problems can be expensive to fix, but they’re often necessary. Auto repair shops offer transmission repairs to help keep cars running properly.

Engine repairs

automobile workshop business plan india

Engine problems can be very expensive to fix, but they’re often necessary. Auto repair shops offer engine repairs to help keep cars running properly.

These are just a few of the different types of services that auto repair shops offer. By offering these services, you can attract a wide range of customers.

How To Advertise Your Auto Repair Shop

There are a few different ways that you can advertise your auto repair shop. Here are a few ideas:

  • Create flyers – You can create flyers and distribute them in local businesses. This is a great way to reach potential customers who may not be aware of your business.
  • Place ads in local newspapers – You can place ads in local newspapers and reach a wide audience.
  • Place ads on online classifieds sites – You can place ads on online classifieds sites like Craigslist and reach a large number of potential customers.
  • Create a website – You can create a website for your business and reach a global audience.
  • Use social media – You can use social media to reach a wide audience and promote your business.

By advertising your auto repair shop, you can reach a large number of potential customers. Just make sure that you choose the right method of advertising for your business.

How To Get Customers For Your Auto Repair Shop

There are a few different ways that you can get customers for your auto repair shop. Here are a few ideas:

automobile workshop business plan india

  • Offer discounts – You can offer discounts to customers who bring their cars in for repairs. This is a great way to attract new customers.
  • Offer loyalty programs – You can offer loyalty programs to customers who continue to use your services. This is a great way to build long-term relationships with customers.
  • Offer referral programs – You can offer referral programs to customers who refer new customers to your business. This is a great way to generate new leads.
  • Run promotions – You can run promotions and offer special deals to customers. This is a great way to attract new customers.
  • Advertise – You can advertise your business to reach a wider audience.

By offering discounts and running promotions, you can attract new customers to your auto repair shop. Just make sure that you choose the right methods of advertising and marketing for your business.

Read also: How to start Car Washing Business in India: Small Business Idea

These are just a few tips on how to start an automobile repair business in India. If you follow these tips, you’ll be well on your way to success.

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Automobile workshop provide services of preventive maintenance of motor vehicles as well as for repairs and overhauls, Preventive maintenance cuts the down time and increases, life of the vehicle a reliable and well equipped automobile workshop is a must for this purpose. Usually such workshops particularly undertake servicing of cars with the active collaboration of cars manufacturers as an authorized service station. With the growth of automobile industry the potential for automobile workshop is also increasing in the same ratio. A well equipped workshop located at strategic position is need for every metro, mini-metro and major towns.


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Auto Repair Shop Business Plan

Start your own auto repair shop business plan

F and R Auto Repair

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

F & R Auto (F & R) is the desire of John Ford and Michael Ronald who together have 30 years experience as auto mechanics. Both have a dream of starting up their own company and offering better service to their clients than competitors.

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.

Auto repair shop business plan, executive summary chart image

1.2 Keys to Success

In the auto repair industry  a company builds its client base one customer at a time and mostly through word of mouth marketing. With this in mind, the keys to success for F & R Auto Repair are:

  • High-quality work.
  • Constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress.
  • Knowledgeable mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.

1.3 Mission

The mission of F & R Auto Repair is to provide high quality, convenient and comprehensive auto repair at low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.

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How to Start a Car Repair Business

Last Updated: October 10, 2023 Approved

This article was co-authored by Jason Shackelford . Jason Shackelford is the Owner of Stingray Auto Repair, a family owned and operated auto repair shop with locations in Seattle and Redmond, Washington. He has over 24 years of experience in auto repair and services, and every single technician on Jason’s team has more than 10 years of experience. There are 13 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 19 testimonials and 92% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 456,605 times.

If you are interested in opening your own car repair shop, now is a great time because the market for mechanics is currently experiencing significant profit gains. Most drivers now have cars that are at least 10 years old, which means that the need for an auto mechanic is growing for more consumers. [1] X Research source Starting your own car repair shop can give you control over your own hours and allow you to reap the benefits of owning your own business.

Opening Your Store

Step 1 Obtain a license to operate your business.

  • Fill out an application . Your motor vehicle department can provide you with an application to apply for your license.
  • Meet eligibility requirements . In most states, you will need to meet certain eligibility requirements to be allowed to apply. These requirements may include things like your age, credit, and criminal record.
  • Provide required documents and information . You may need to include some other documents and information such as proof that the building you plan to use has been zoned for your business, your tax ID number, and color photographs of your facility.
  • Pay any fees required to process the application . The application fee may be as low as $20, but if approved, you may need to pay $300 or more to obtain the license. [2] X Research source [3] X Research source

Step 2 Purchase insurance for your business.

  • Check with your state's motor vehicle department to determine how much insurance you will need to obtain for your business.

Step 3 Fulfill your administrative needs.

  • Consider hiring an accountant or a financial advisor to help you establish a budget for your expenses as a new business. An accountant can help you manage your taxes, your payroll system, and advise you on the best bookkeeping system to use in your business.
  • You should also consider retaining a lawyer in case you face any suits or claims from your clients. Ask other mechanics in your area which lawyers they use and like.

Step 4 Implement a marketing strategy.

  • Define your core values as a brand . What are three words your customers should think of when they think of your business? You might think of words like "honest,""loyal," and "dependable." [7] X Research source
  • Print eye-catching flyers . You can place them in places where lots of customers might congregate, such as gyms, civic centers, office parks, and the parking lots at universities and college campuses.
  • Establish a loyalty program . You might offer your customers a free oil change after they come to see you for another service (like an engine repair or heating/air conditioning repair). You can also send coupons in the mail to your neighbors or consider offering a digital discount through a service like Groupon. [8] X Research source
  • Consider advertising on TV or on the radio. TV commercials and radio ads may also help you to reach a wider audience and gain new customers.

Step 5 Make alliances with car dealerships.

Designing a Business Plan

Step 1 Define the scope of your business.

  • Will you only offer a specialized service, such as oil changes and tire repairs, or will you offer a more comprehensive range of repairs?
  • Will you buy a currently operating car repair shop or start a brand new one from scratch? What are the costs and benefits of each of these options?
  • Do you plan to remain an independent repair shop or will you join a franchise like Jiffy Lube or Midas? You will generally need $30,000-$200,000 to join a franchise, but the advantage is that they will handle marketing and they often have a nationally trusted brand name for potential customers. If you do not have any existing customers in your current career that you know would follow you to a new business, joining a franchise might be worth the investment. [9] X Research source

Step 2 Describe potential locations.

  • Look for locations that are convenient to either highway or main road access. If your shop is very isolated, it is unlikely customers will come to you, especially when towing costs are often tallied by the mile.
  • Your location should also be able to accommodate an office for you to take care of your administrative needs and a waiting room area for your customers.

Step 3 Determine your equipment needs.

  • You should clearly detail any loans your plan to apply for in order to fund your business? Will you apply for a business loan from your bank, from the Small Business Administration, or from another source? To get approved, you must have a healthy financial history (with good credit, no history of bankruptcy) and be able to demonstrate that you have roughly 70% of the funding already raised. [11] X Research source
  • If you are denied a loan from the Small Business Administration or your local bank, then you could consider other lenders like OnDeck and Kabbage if you need cash quickly. These lenders are meant for short-term loans because their interest rates are very high. [12] X Research source
  • If you choose to take a loan from friends or family members, still put the repayment terms of this loan in writing. You do not want to risk losing relationships in the event that you cannot repay the loan in a timely manner.

Step 5 Define your Unique Selling Point.

  • You can also consider if you will specialize in a niche field, like restoring old cars, or providing environmentally friendly or "green" services to your customers. [13] X Research source
  • Defining your USP will help lay the foundation for your broader marketing plan once you open your store.

Expanding Your Business

Step 1 Consider going mobile.

  • Technicians must have a two-year degree and a year of formal experience working as an automotive technician (or mechanic).
  • You can become certified in a number of specializations, ranging from school bus repair, collision repair, trucking equipment, and more.

Jason Shackelford

  • You should only do this if you get to the point where your first branch runs smoothly on a daily basis. Make sure you have reliable and capable managers to help you. If you still have to run daily demands by yourself, then it might not be the best time to expand.

Expert Q&A

Jason Shackelford

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  • ↑ Jason Shackelford. Auto Technician. Expert Interview. 11 June 2019.
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About This Article

Jason Shackelford

If you want to start your own car repair business, contact your local motor vehicle department to learn all of the requirements for opening and operating a shop in your state. Purchase insurance, hire your administrative staff and mechanics, and start spreading the word to get customers. You can design eye-catching flyers to put in public places like gyms, office parks, and college campuses, and you can also advertise on TV, radio, and social media. To learn how to grow your business by having your employees become certified, read on! Did this summary help you? Yes No

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How to start an automobile repair business in India

Do you want to start your own business but lack the business ideas? Have you an interest in automobiles? Then, opening an auto repair shop can be one of the best options to start own business. In this article, I have mentioned all the important aspects necessary to start an auto repair shop. Auto repair business is one of the most profitable business ideas and is considered to be a good money making venture.

Auto repair business: Introduction

Factors to be considered before starting an auto-repairing business.

  • Business plan : The most important factor to start a business is to prepare a proper business plan. A good business plan explains all the minute details which is required to start a business. Whether selecting a location, or arrangement of finance, or hiring employees, each activity associated with the business requires planning. A business started without any plan is liable to fail. Therefore, the first step to start an auto repair business is to write down a business plan. If you are unable to write down the business plan, you can take assistance of any small business administrative.
  • Location : After business plan has been designed and finalized, the next process is selection of the location to set up the business. A good location proves to be the key of an auto-repairing business. Therefore, a survey should be done before selecting the location to start an auto-repairing business. If you select a location having cheap rent, but the frequency of automobiles coming in that location is less, then it would be hard to make money from the auto-repairing business. So, the location of auto-repairing shop must in high traffic area. Another aspect to be considered while selecting a location is the distance between two auto-repairing shops. If the auto-repairing shop is started next to an established repairing shop, then it may prove to be a disadvantage. Therefore, an auto-repairing shop must be set up at a distance from other shop offering same services. The location must be accessible to the customers and must have necessary facilities such as waiting zone and washroom. Hence, the business owner must choose a location which may prove to be profitable for the auto-repairing business in a long run.
  • Experience : Most of the people, find it hard to start an auto-repairing business. If you have hands-on experience in this field, then it's an added advantage for you. However, if you do not have any knowledge, you can join any training course and get the certification. If you do not wish to indulge yourself in servicing and just want to be the owner, then you must hire experienced mechanics and technicians for your business. Hiring qualified and talented mechanics is very difficult task. The owner of the business must take full time and do proper verification before hiring any employee.
  • Tools : A good auto repair businessman always aims to organize the garage which fits the business needs. A good auto repair shop possesses an organized room for the spare parts in which all the tools and supplies are arranged in orderly manner. The tools used in auto-repairing service can be cheap as well as expensive. The small tools such as wrenches, air tool can be bought at cheap price. But, tools like lift, wheel balancer, brake lathe are costly. If the requirement of the business is to buy additional tools in order to run the new business smoothly and effectively, then it should be purchased right away. But, budget should always be concerned. Wasting money on unnecessary and extra things is not a good idea for the business.
  • Money : A business owner should have enough finance to pay all the business as well as personal bills. Before starting the business, a person should try to arrange the money from family members, friends and relatives. One can take loans from the bank providing the necessary documents. Do not waste the money on unwanted things. A good businessman never lets the situation go off the head and is always prepared for the worst situation. Therefore, financial management is very important to run the business efficiently.
  • Type of service : One of the important aspects to be considered while starting an auto repair business is the type of services being provided by your shop. There are several services offered to automobiles. Some of the shops specialize in servicing body parts such as brakes, types, windshields, transmission, and automobile electrician. Some shops have the specialization in oil servicing, paintwork for scratches and dent repair. So, it is important to decide the service which is going to be offered by the auto repair business. In India, usually, all type of services is provided by the auto repair shop.
  • Rate : Set up the competitive rate for the services being offered at your auto repair shop. The rates must neither be too high that customers find the service expensive and hesitate to come to your shop. Nor, it must be too low that your business goes in the loss.
  • Name of the business : Though it is not a difficult task, but the name of the business must be attractive and should describe the business. A silly name of the business may fail to attract customers to the shop. One should be creative and should select the name which is unique and easily identified. The name should set your business apart and different from other competitive business.
  • Advertisement : Publicity of your business is must. Use pamphlets, newspapers to advertize your business. The flyer must mention your business, name, address and contact number if possible. One can ask the local distributor to place the pamphlets in the daily newspaper. You can place a small advertisement in the classified section of the newspaper. Ask your friends and relatives to tell others about your shop and its services. Try to provide attractive offers to attract the customers. You will have to be creative to make your business popular. A proper assessment helps the businessman to know that profit is generated from which type of advertisement. Do a survey to know that most of the customers coming to your shop come from which area.
  • Registration and license : After everything has been set up at proper place, register your shop/garage/ auto repair business. Obtain the license and permits to start the auto repair shop.
  • Protection and insurance : Protection is must for any business. A good business is the one who has made all the necessary arrangements to tackle any type of mishaps. Therefore try to get correct insurance for your which would protect you and your business completely.

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