How to Write an Auto Repair Shop or Mobile Mechanic Business Plan or Template
The auto repair shop and mobile mechanic business industry has been growing continuously over the last several years., which has elevated the need and demand for auto mechanic business plans, auto mechanic business plan templates, and auto mechanic proforma financial projections.
The growth rate for these businesses may be attributed to several factors. For example, as cars and trucks become more technologically capable, even simple car maintenance activities like changing oil become complicated without the proper tools and training. Because of this, fewer individuals are performing even minor maintenance on the vehicles and leaving the work to trained auto mechanics. Also, our auto mechanic business plan writer has found that more and more auto mechanics are incorporating a mobile repair division enter their business capabilities. Not only does this generate additional revenues for the repair shop but also creates a loyal customer following.
Regardless of why the auto repair or auto mechanic business plan needs are growing to have one is an excellent strategic move. From this, our business plan writer has come up with some tips and tricks to help business owners write their own mechanic business plan, business plan template, and pro forma financial projections (3/22).
Executive Summary for an Auto Repair Shop or Mobile Mechanic Business Plan.
The executive summary section for an auto repair or auto mechanic business plan should start similar to a traditional business plan, which would include stating the company’s name, address, and common auto mechanic services provided to customers. Further, our auto mechanic business plan writer also recommends discussing one or two important differentiating traits for the repair shop. For example, some auto repair business plans may include discussions about mobile services provided by the shop in addition to their traditional garage business model. By including one or two differentiating factors, the business plan writer may be able to quickly show the reader innovative services offered as well as a sound understanding of the traditional automotive care services provided (4/22).
In the company information and location section, our auto mechanic business plan writer recommends not only describing the interior of the repair shop but also its proximity to its target market. For example, if the auto mechanic shop specializes in repairing semi trucks for fleet operators, then the location should be relatively close to either major thoroughfares or storage areas for semi-trucks. By showing alignment between location and mechanics' target market, business owners are able to highlight the importance of their location in regard to their target market (5/22).
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Service Description and Competitive Advantages
For the most part, regardless if a mechanic is starting or expanding their auto repair shop or mobile mechanic business, having a core set of services and describing them in a business plan or template is a critical step in the business plan writing process. From this, when writing a business plan for this type of business, first start with identifying, in a bulleted point list, each popular service provided by the mechanics. Make sure to leave the list to maybe five or six services. Expanding past five or six services in the service description section will make the segment disproportionately longer as compared to other segments of the business plan. For additional services past five or six, those services are in an appendix. Also, make sure to note at the bottom of the service description section that additional services are in the appendix. By following this practice, automobile repair shop owners are able to convey their most important services offered while still showing the breadth of services in the plan.
In addition, when you structure the bolded pointless, make sure to also list your services based on either expected revenues generated or most popular services. For example, if your organization specializes in domestic engine repair, then at the top of the bolded point list for services, make sure to have domestic engine repair as number one and then other engine repair services following the leader, and so on. This structure, once implemented, all too often will further support your specialty services as well as core competencies claimed in other aspects of the business plan.
The target market for an auto repair shop and mobile mechanic business inherently are different, based on experience from our business plan writer. For example, auto repair shop business owners tend to service vehicles for preventative maintenance and scheduled repair services. In contrast, mobile mechanics often work with emergency services, such as roadside assistance or home/office-based repairs. By understanding customers and their inherent needs, business owners can then accurately classify target markets in the business plan. Further, with target markets identified, business owners can then fashion various business models to best appeal to their respective target markets.
Industry research for an Auto Repair Shop or Mobile Mechanic Business Plan
The industry research section for an auto repair shop or mobile mechanic business plan should start with evaluating national trends in the industry. For example, both business structures fall within the auto mechanics in the US industry. Because of this commonality, common statistics in the industry are applicable to both business structures. Quick Internet research may provide important statistics to base your industry research segments of the business plan. For example, IBI has found that auto mechanics in the US industry has achieved $65.3 billion in revenues over the last 12 months. Further, revenue growth for the industry in the last five years has declined by approximately .5% annually. Fortunately, though, industry experts anticipate a 1% annual growth rate for the future. This may lead to profit margins of approximately 8% for industry competitors. From this foundation, auto repair shop and mobile mechanic business owners can then deviate from the general industry research to more business-specific statistics that align better with their business models.
The owner and management section for both, and auto repair shops and mobile mechanic businesses, should be similar in structure and quantity of information. Regardless of business type, business owners, when writing the owner and management section of the business plan, should first focus on work experience related to automobiles. A great way to discuss work experience is by including a well-written resume showing previous employers and services performed for these employers. From this foundation, auto repair shop and mobile mechanic business owners can then tie in their educational or vocational activities, like mechanic certifications or management degrees, to better support their experiences and future aspirations.
Funding Request for an Auto Repair Shop or Mobile Mechanic Business Plan
When starting or expanding an auto repair shop or mobile mechanic business, the funding request section is a critical component of the business plan. As most people know, starting this type of business is capital-intensive due to the need for specialized equipment like engine lifts, diagnostic equipment, and mobile mechanics, the vehicle to transport the specialized items. Further, hand tools galore are required as well. Instead of making a laundry list of equipment and tools needed for the funding request section, a better strategy is to categorize equipment into subcategories. For example, an auto repair shop business owner may identify heavy equipment, various lifts, hand tools, etc., as categories related to funding. With each one of these categories, business owners can then assign specific dollar amounts to serve as budgetary restraints for the areas. By following the structure, business owners are able to convey to the reader where funding will be going well still maintaining flexibility for pricing purposes.
The financials and financial projection segments for the auto repair shop and mobile mechanic business plan or template should be constructed in a similar manner. Some businesses prefer to make the business model focused on average prices for popular services performed. However, our business plan writer has found that for this industry, a better strategy is to determine the average dollar amount spent by each customer. From this, business owners are then able to estimate average markups, which would be the starting point for calculating variable cost averages. By following the structure, business owners are able to then focus efforts on attaining specific numbers of customers on a daily basis. By reaching these numbers, they inevitably know with her estimated profits and cost will be. Further, business owners are able to better explain this structure as compared to other more complicated financial model constructs.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author