Not quite! It's expensive to start a business and franchises are no different. While the costs will be more on the business and administrative side than the equipment and resource side, you should still expect to spend $30,000-$200,000 to open your franchise. Choose another answer!
Try again! If you already have a large following of customers who will go to your new shop or location, you may want to skip the franchise. There are many expenses associated and you don't have as much freedom as you would with your own shop. Guess again!
Nope! If you can, avoid opening your business in an out of the way location. You want to be near a town or highway so that it's easy and convenient for people to get to you and back, regardless of whether you have a franchise or your own shop. Click on another answer to find the right one...
Correct! If you do have a large following, you may want to steer clear of the franchise. If you're just getting started in the industry and looking to build a customer base, however, a franchise might be right for you! Read on for another quiz question.
Want more quizzes?
Keep testing yourself!
Part 2 of 3:
Opening Your Store
How to Start a Car Repair Business Picture 6
Obtain a license to operate your business. States have different licensing requirements for auto repair business. Check your local motor vehicle department for information about the type of license that you will need to operate an auto repair shop in your state. To obtain a license in your state, you will need to:
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.[7]XResearch source[8]XResearch source
How to Start a Car Repair Business Picture 7
Purchase insurance for your business. Before approving your application, most states require you to have a minimum amount of insurance for liability purposes. This amount may be as low as $50,000 or as high as $300,000.[9]XResearch source[10]XResearch source
Check with your state's motor vehicle department to determine how much insurance you will need to obtain for your business.
How to Start a Car Repair Business Picture 8
Fulfill your administrative needs. You will need a clear financial system in place in order to operate as a business and to anticipate potential pitfalls.[11]XResearch source
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.
How to Start a Car Repair Business Picture 9
Implement a marketing strategy. Your success as a business will depend on how you relate to your customers and potential customers
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."[12]XResearch 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.[13]XResearch 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.
How to Start a Car Repair Business Picture 10
Make alliances with car dealerships. Some car dealers have their own mechanical shops attached to their businesses, but others don't. You should consider approaching dealers and asking them if they could refer customers to your business. In return, you could also advertise for their business when your customers want to buy a new car.
Score 0 / 0
Part 2 Quiz
Ultimately, the success of your business depends on:
Try again! It's important for any business to have a clear financial system. This will ensure that works get down, bills get paid and parts get ordered. Still, there's something even more fundamental to consider. Try again...
Nope! Teaming up with local car dealerships might help you to establish and build your brand. Still, it isn't a necessity and there are more fundamental things to consider. Guess again!
Absolutely! At the end of the day, the work you do and the way you made your customers feel is really what matters! Strive to have a consistent, upbeat and effective business that people can rely on. Read on for another quiz question.
Almost! Establishing a niche can be effective for building your business. Perhaps you work on classic cars, vans or motorcycles. Still, this isn't the most important step when it comes to the success of your business. Try another answer...
Want more quizzes?
Keep testing yourself!
Part 3 of 3:
Expanding Your Business
How to Start a Car Repair Business Picture 11
Consider going mobile. For minor repairs -- like tire changes -- you might consider offering roadside assistance or going to customers' homes to help them. This will help your customers associate you with loyalty and convenience.[14]XResearch source
How to Start a Car Repair Business Picture 12
Encourage your employees to get certified. Your business can only grow in prestige if your technicians gain certification. Most automotive technicians gain certification from the National Institute for Automotive Service Excellence.
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.[15]XResearch source
Gaining certification can help your business gain more credibility in the eyes of your customers.
How to Start a Car Repair Business Picture 13
Open additional branches of your business. If your shop becomes profitable, and you have a surplus of customers, consider opening an additional location in an area that you would be more convenient to other customers.[16]XResearch source
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.
Score 0 / 0
Part 3 Quiz
True or False: If you're expertly running the day-to-day business of your company all on your own, you should open up another location.
Close! If your company is doing well and you have a team of people you know you can rely on, go ahead and consider opening another shop. If you're still the one in charge, however, another shop might not be the right choice. Try another answer...
That's right! If you have a great team running the day to day of your shop, then go ahead and start the new location process. Still, if you're still in charge of the daily tasks and responsibilities, now isn't the right time for a new location. Read on for another quiz question.