How to Write an Auto Repair Shop Business Plan

How to Write an Auto Repair Shop or Mobile Mechanic Business Plan or Template

The auto repair shop and mobile mechanic business industry has continuously grown 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 pro forma financial projections.

The growth rate for these businesses can be credited for various reasons.  For instance, as automobiles like cars and trucks advance in technology, even basic maintenance tasks such as oil changes become complex without the right equipment and expertise.  Due to this, fewer people are opting to conduct minor maintenance on their vehicles, preferring to delegate these tasks to trained auto mechanics instead.  Additionally, our business plan writer has noted that an increasing number of auto mechanics are adding a mobile repair service to their range of offerings.  This not only boosts income for the repair shop but also fosters a dedicated clientele.

Regardless of the reason for the rising need for auto repair or auto mechanic business plans, possessing one is a wise strategic decision.  Building on this observation, our business plan writer has provided several guidelines and suggestions to assist business owners in crafting their own mechanic business plan, template, and pro forma financial forecasts (10/23).


Executive Summary for an Auto Repair Shop or Mobile Mechanic Business Plan.

The executive summary of an auto repair or auto mechanic business plan should commence similarly to conventional business plans.  This involves mentioning the firm's name, address, and typical services rendered to clients.  Additionally, our business plan writer suggests highlighting one or two unique characteristics that set the repair shop apart.  As an illustration, some auto repair business plans might detail mobile services that the establishment offers alongside its usual garage-based operations.  By spotlighting one or two unique features, the business plan writer can swiftly present the reader with novel offerings while demonstrating a firm grasp of standard automotive care services.

Company Information and Location.

Within the company information and location segment, our business plan writer advises detailing not just the interior ambiance of the repair facility but also its closeness to the intended clientele.  For instance, if the auto mechanic establishment primarily mends semi trucks for fleet managers, its position should ideally be near significant roads or holding areas for these large vehicles.  Demonstrating this correlation between the shop's location and its primary customers, entrepreneurs can underscore the strategic significance of their site relative to their desired audience.

Need Help Writing an Auto Mechanic Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.



Hours of Operation: Monday through Friday, 8 am to 9 pm EST.

Our business plan writer is located in Orlando, FL.


Service Description and Competitive Advantages

When a mechanic decides to start or grow their auto repair shop or mobile mechanic venture, outlining a primary set of services in a business plan is essential.  In crafting a business plan for such businesses, begin by creating a bulleted list that highlights each primary service the mechanics offer.  It is wise to limit this list to about five or six services.  Extending beyond this number in the service description can make this section too lengthy compared to other parts of the plan.  If there are more than six services, include those additional services in an appendix.  At the conclusion of the service description, indicate that supplementary services can be found in the appendix.  This approach enables car repair shop proprietors to highlight their pivotal services while also demonstrating the full range of their offerings.

Moreover, when organizing your bullet points, it's advisable to order the services based on expected revenue or popularity.  If your business has a specialty, like domestic engine repair, position that service at the forefront of the list.  This format reinforces your primary services and the core expertise mentioned elsewhere in the business plan.

Target Market for an Auto Repair Shop or Mobile Mechanic Business Plan Template

The target audiences for an auto repair shop and mobile mechanic service often differ based on our business plan writer's experience.  Auto repair shops typically cater to routine maintenance and scheduled repairs.  In contrast, mobile mechanics often handle emergencies like roadside breakdowns or repairs at homes or offices.  Recognizing these distinct client needs allows businesses to correctly define target markets in their plan.  With these markets defined, they can then mold their business strategies to best attract and serve these specific audiences.

Industry Research for an Auto Repair Shop or Mobile Mechanic Business Plan

By examining national trends, begin the industry research section for an auto repair or mobile mechanic business.  Both types of businesses fit within the US auto mechanic industry.  Given this overlap, general industry statistics are relevant to both.  A brief online search can yield vital statistics to inform your business plan.  For instance, IBI has reported that the US auto mechanic industry garnered $65.3 billion in the past year.  Revenue growth has declined by about .5% annually over the last five years.  However, projections indicate a 1% growth rate in the coming years, potentially leading to an 8% profit margin for players in the sector.  With this base knowledge, business owners can then focus on specific data that better aligns with their individual business models.

Owner and Management Section

The owner and management section for both auto repair shops and mobile mechanic businesses should be consistent in layout and depth of detail.  Regardless of the business type, when drafting this segment, emphasize any work experience tied to automobiles.  Incorporating a detailed resume that showcases past employers and tasks undertaken can be beneficial.  From there, business proprietors can link their educational or vocational achievements, like mechanic certifications or academic degrees, to further validate their background and future goals.

Funding Request for an Auto Repair Shop or Mobile Mechanic Business Plan

Initiating or growing an auto repair shop or mobile mechanic business necessitates a well-structured funding request section in the business plan.  Many are aware that establishing such a business demands significant capital due to the requirement for specialized apparatus like engine hoists, diagnostic machinery, and, for mobile mechanics, vehicles equipped to transport these specialized tools.  Additionally, a vast assortment of hand tools is essential.  Rather than enumerating every single tool and piece of equipment in the funding request section, it is more efficient to group them into subcategories.  For instance, an auto repair shop owner might delineate categories such as heavy machinery, different types of lifts, hand tools, and so on.  Each of these categories can then have specific monetary values attached to them, serving as budgetary guidelines.  This organized approach allows business proprietors to communicate to potential investors or lenders how the funds will be utilized while retaining some leeway for pricing adjustments.

Financials and Financial Projections for an Auto Repair Shop or Mobile Mechanic Business Plan

The sections on financials and projections for an auto repair or mobile mechanic business should adopt a standardized structure.  Some enterprises might choose to base their financial model on the average fees for commonly rendered services.  However, our business plan writer suggests that a more effective approach for this sector is to pinpoint the average expenditure by each customer.  Once this average is determined, business proprietors can then deduce typical markups, laying the groundwork for estimating average variable costs.  This method enables business owners to concentrate on attracting a specific number of clients daily.  Upon achieving these target figures, they can confidently predict their expected profits and expenses.  This streamlined financial model is also simpler to communicate and understand than more intricate financial frameworks.

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, email or call us. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan and Quality Business Consultant.

Date: 10/6/2023