Auto Service Business Plan

Auto Service Business Plan-27
In this article, I am going to walk you through the process of creating financial projections for the first 3 years of business as an Auto Repair Shop.

In this article, I am going to walk you through the process of creating financial projections for the first 3 years of business as an Auto Repair Shop.

Initially you need to know the cost to acquire 1 new customer so that you can set an adequate startup marketing budget.

You need to have enough money set aside for initial marketing to be able to secure a core of repeat customers.

This is not asking how many actually come to the shop each month, just how many people would you consider to be on your repeat customer list. Of course not every customer comes in every month, but we will address that with the next step.

So rather than try to estimate what percentage of your customers will come in each month, it might be easiest to just estimate an annual dollar amount that the average vehicle will cost an owner each year in repairs and maintenance.

Finally, you will get to your total customers per month.

So in this model that I am building, this number represents your repeat customers.

Maybe that number is

So in this model that I am building, this number represents your repeat customers.

Maybe that number is $1,000 per year for the average car.

So then all you have to do is divide $1,000 by 12 months and you end up with your average revenue per customer per month.

The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business.

Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner.

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So in this model that I am building, this number represents your repeat customers.Maybe that number is $1,000 per year for the average car.So then all you have to do is divide $1,000 by 12 months and you end up with your average revenue per customer per month.The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business.Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner.It is very common for people to ask each other where they take their car when it has a problem.Not everyone is going to share, maybe it is just 5%, but those 5% can be very powerful.So maybe you send out mailers with coupons for a $10 oil change.You will need to estimate how much it will cost to send out each mailer and what percentage of people who get the mailer will actually come in.The following table shows the 10 services, the average number of jobs per week of that service, and the average price for that service.So in order to create realistic projections for your startup, you can’t just assume that you are going to start out from day 1 doing the average.

,000 per year for the average car.

So then all you have to do is divide

So in this model that I am building, this number represents your repeat customers.

Maybe that number is $1,000 per year for the average car.

So then all you have to do is divide $1,000 by 12 months and you end up with your average revenue per customer per month.

The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business.

Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner.

||

So in this model that I am building, this number represents your repeat customers.Maybe that number is $1,000 per year for the average car.So then all you have to do is divide $1,000 by 12 months and you end up with your average revenue per customer per month.The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business.Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner.It is very common for people to ask each other where they take their car when it has a problem.Not everyone is going to share, maybe it is just 5%, but those 5% can be very powerful.So maybe you send out mailers with coupons for a $10 oil change.You will need to estimate how much it will cost to send out each mailer and what percentage of people who get the mailer will actually come in.The following table shows the 10 services, the average number of jobs per week of that service, and the average price for that service.So in order to create realistic projections for your startup, you can’t just assume that you are going to start out from day 1 doing the average.

,000 by 12 months and you end up with your average revenue per customer per month.

The challenge is that many new owners are great mechanics, good with cars, and assume they can run a successful business.

Just like a good cook is not always a good restaurant owner, a good mechanic is not always a good auto repair shop owner.

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