Own car service is a fairly profitable business that will be in demand in any city. That is why the business plan of a car service will be very relevant, which will allow you to calculate the profitability of such activities.
The number of cars is increasing every year. Any car will sooner or later need to be repaired, and this, in turn, will provide your business with stable customers and profit.
A car service is a company whose main activity is aimed at servicing cars. Main activities: diagnostics, washing, engine repair, wheel alignment, tire fitting and other minor repairs.
You can read about how to open a car service in this article .
A car service that provides a large number of services can bring a profit of $100,000 per month.
The main benefits of implementing a car service project
This business is beneficial in that you can do it even without special knowledge. You just need to choose a good place for such activities, buy high-quality equipment, and properly organize such a business.
To attract customers, you need to spend money on advertising, it can be placed in newspapers, magazines, websites of your city. Read more about how to conduct market research here .
It is very important to place outdoor advertising. Investments in advertising at the initial stage can range from 10 to 30 thousand dollars.
With the right business organization, a car service project can pay off in 6-12 months.
What needs to be done before writing a car service business plan?
First of all, it is necessary to determine the direction of activity. The concept of a car service is very broad and, depending on the imagination of the business organizer, may include: tire fitting, car wash, bodywork, engine and chassis repairs, minor repairs, incl. oil change, engine diagnostics, electrical repairs…
It makes no sense to implement all directions at once. You need to focus first on one thing, on the direction in which you are the most expert. Or the direction that is easiest to implement.
For example, tire fitting can be attributed to a business with minimal investment. For information on how to write a tire fitting business plan, read this article . It is also relatively easy to open a car wash, primarily because the work at the car wash does not require special staff qualifications. You can read about how a car wash business plan in this article .
Also, at the initial stage, you can provide individual car repair services in the garage. But this is only if you are a car repair professional. By the way, this is a good job. Some professional masters earn from 30-50 thousand dollars in addition.
For information on what kind of business you can do in a garage, read the article » Small Business: Manufacturing in a Garage «.
How to choose a car service room?
Car service can be placed in a modular type room (this design is easy and quick to assemble). The area of the premises is from 30 to 100 m2. According to sanitary standards, the area of the premises (excluding the area occupied by the equipment) must be at least 5 m2 per employee. Installation time — 2 — 3 weeks.
The car service room cannot be located in a residential building, and also closer than 50 meters from residential premises.
Ideal for placing a car service garage box in the immediate vicinity of the road, gas station, as well as auto shops.
Necessary equipment to include in a car service business plan
To organize a car wash:
— 2 mobile washing machines (cold wash — 50-100 thousand rubles, with heated water — 100-150 thousand rubles);
— a vacuum cleaner for cleaning the interior -10-20 thousand rubles;
— purification system (this system is necessary for the purification and circulation of water, it also saves water)
The total amount of investment in equipment when organizing a car wash will be from 200 to 350 thousand dollars (depending on whether you complete a one- or two-station car wash).
For the organization of service stations:
-rack-mount lifts 2 pcs. — about 100 thousand dollars x 2 pieces = about 200 thousand dollars;
— a diagnostic complex that is connected to the on-board computer — 500 thousand dollars;
— milling and lathe — 180 thousand dollars;
— a set of locksmith tools
— welding machine;
— press
In total, you will have to invest from 800 thousand to 1500 thousand dollars in service station equipment, depending on the scale of the business and the range of services provided.
To organize a tire fitting:
— Tire changer;
— balancing machine;
— compressor;
— capacity for washing tires;
— movable jack;
– consumables (including rubber bands, lubricants, weights…)
The total amount of starting investments for the implementation of the tire fitting business plan is in the range from 400 to 600 thousand dollars.
Other equipment:
— racks and counters, furniture;
— consumables
Total project implementation requires from 200 thousand dollars to 2 million dollars
Possible risks when implementing a car service business plan
The biggest risk is the selection of professional employees. The wider the specialization of employees, the more customers there will be. Therefore, people need to be selected very carefully, and deal with this issue already at the stage of writing a business plan.
It is also necessary to pay attention to the package of documents required when opening this type of activity. When opening a car service, there is no need to obtain a license. But before starting activities, it is necessary to obtain permission from the supervisory authorities.
The package of documents for organizing a car service includes:
- Contract for the sale or lease of premises;
- SES permission;
- Permission of fire authorities;
- Contracts with resource-supplying organizations (electricity, water);
- Waste disposal and waste disposal contracts.
To implement a car service business plan, you must:
- Believe in your idea, because only those people who do not give up at the first difficulties achieve results.
- Have sufficient initial capital, or take a loan from a bank secured by property. You can read about where to get start-up capital for a business here .
- Choose a convenient place so that even visiting drivers can find their way to you (put signs, locate a car service near the main roads)
- Find a spacious room where several cars could be serviced at once. It is also desirable that in the selected premises it was possible to provide additional services (to open a cafe, a car shop).
- Buy high-quality equipment (you can rely on the experience of colleagues) so as not to buy too much or unnecessary.
- Decide on the areas of activity of a car service.
- Select conscientious and professional employees.