Business plan for an auto repair shop

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Last Updated: February 3, References 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. There are 14 references cited in this article, which can be found at the bottom of the page. This article has 19 testimonials from our readers, earning it our reader-approved status.
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How to Create an Auto Repair Shop Business Plan

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Auto Repair Shop Business Plan Sample Template

Starting your own automotive repair shop or automotive workshop is the dream of good mechanics everywhere. I have lived that dream. If you are a highly skilled and versatile mechanic, you may find it to be very restricting working for someone else when you could be running your own business and making real money at the same time. The right equipment is essential to opening an auto shop.
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Auto Repair Shop Business Plan

There are thousands of new auto repair shops that start each year. The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business. Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner. In this article, I am going to walk you through the process of creating financial projections for the first 3 years of business as an Auto Repair Shop. To open your shop you are probably going to need to get a loan or investment to get started.
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It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialize in certain areas. The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes such as do-it-yourself work mean that the pricing for such services are very competitive.
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