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
Check with your state’s motor vehicle department to determine how much insurance you will need to obtain for your business.
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.
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.
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
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.
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.
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.
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. Gaining certification can help your business gain more credibility in the eyes of your customers. [15] X Expert Source Jason ShackelfordAuto Technician Expert Interview. 11 June 2019.
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.
