4 Things To Consider Before Starting An Auto Repair Business

By CarsFellow 7 Min Read

A lot of people these days are looking for ways to be their own bosses, so they don’t need to work a 9-5 job. One way of achieving this is running your own business. However, starting a business and ensuring its long-term success is no easy feat. It requires adequate planning and preparation.

If you’re passionate about cars, for instance, you could launch an auto repair business. But what factors should you consider to guarantee its success?

Read on to find out.

1. Marketing

Marketing is a crucial player in ensuring your auto repair business succeeds. It’ll give your brand presence in the auto repair industry. It can be easy or challenging, depending on how you approach it. If you implement the wrong strategy, you’ll end up wasting your resources. But if you do apply the right one, you’ll reap its benefits, one of which is business growth.

To get marketing right, you need to determine your target audience. These are the people you expect your business to serve. Suppose your target audience is high-end car owners. You want to learn everything about them to know how best to reach them. For instance, if they spend most of their time on Twitter or Instagram, you must create an account and advertise your brand on these social media pages. Your accounts will give them quick access to your business details and location, providing convenience.

Moreover, you need to highlight your brand’s uniqueness to carry an effective auto repair business marketing campaign. Think of why customers should seek your services and not others. Once you figure out what sets your business apart, you’ll be able to attract potential customers.

2. Finances

It won’t be possible to run a business in the long and short term without finances. Hence, you need to prepare yourself well by taking important steps.

Start by identifying how much it’ll cost to start an auto repair shop. Your list should include the required stock, business premises, licenses, and registration. Next, what are the operational costs? These costs cover rent, wages, benefits and allowances, license renewal, and security.

The list doesn’t end there, though. Once you open your shop, you’re less likely to start making sales from the first day. It might take some time, and the sales you might get will likely be minimal.

Therefore, it’s best to avail at least six months of finances to pay for the operational costs, like rent and wages. If you don’t do this, you might lose your business premises or your workers because of unpaid wages.

In other words, you need to have the funds that can cover all business-related expenses before you start your business.

One secret to making it as a startup is reducing operational costs as much as possible. For example, you should hire only one or two workers instead of a team of ten. Once operations pick up, you’ll have the funds to hire more workers and pay them wages and other benefits.

Aside from hiring employees, consider renting small premises first. After your business expands, you can move to a bigger space.

3. Return On Investment

The bottom line is to make profits even as you look to become your own boss. Thus, you should consider return on investment (ROI) of your business and its structure. ROI looks at how much your business is making in relation to the amount of money you’re investing.

You’ll be able to see how much you’ve invested in your auto repair shop, from registration to transport to stock. Just don’t assume any small amount you’ve spent. In business, no amount is too small; it can either break or make your business.

Next, you want to know the sales you’ll make. Since you’ve not begun operations yet, it’ll be a prediction of the sales you expect to make—that is, should everything go as planned. Be realistic when you make predictions.

Compare the sales you’ll likely make to your investment: Which is more, your sales or investment? Consider a different approach to your auto repair business if your investment is higher. Do the same if the ROI is small. Ensure you settle for a business plan that’ll give you a high ROI.

4. Market Demand

Like many other industries, you’ll have competition. Since many businesses offer similar products and services, the market is likely saturated, which might make it challenging for you to enter.

However, you can still make it by studying the market. Find a location with fewer auto repair shops to reduce competition.

Alternatively, you can set up your business in a saturated area but brand your business by offering different services from the others. For instance, you can focus on handling selected car brands, such as luxury ones. Since car owners already frequent the area, you’ll be able to acquire customers. You can also offer similar repair services but add complementary ones, like car maintenance and servicing.


An auto repair business is one you can easily start and run as long as you have the right guidance. With this article as a guide, you’ll do well in planning and preparing your business.

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