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How to Start a Car Restoration Business in 14 Steps (In-Depth Guide)

Updated:   March 22, 2024

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Classic car restoration is big business, with the global automotive restoration industry reaching $5.5 billion in 2022. The market continues to grow at a projected compound annual growth rate )CAGR) of 11.2% from 2022 to 2030.

As the number of antique, vintage, and classic vehicles continues to grow, so does the need for quality restoration services to keep them looking and running their best. Many classic car owners are more than willing to pay top dollar to have their vehicles expertly restored.

This guide will walk you through how to start a car restoration business. Topics include building a business plan through thorough market research, registering an EIN, obtaining business insurance, forming a legal business entity, marketing, and more.

1. Conduct Car Restoration Market Research

Market research is essential when starting a successful car restoration business. It offers insight into auto restoration shop trends, your target market, and local competitors. Market research also helps newcomers to the market learn more about classic car enthusiasts and develop a thorough business plan.

Some details you’ll learn through market research on complete restoration businesses include:

• While the overall automotive repair industry is highly fragmented with over 156,000 businesses nationally, the niche of antique car restoration is far less saturated.
• Less than 3% of automotive shops specialize in classics and vintage vehicles, presenting major expansion opportunities.
• Areas like Seattle, Denver, and San Francisco have both high incomes and a growing population of collector car owners.
• Positioning yourself as a niche restoration expert in European, American, or Asian vintage cars can further differentiate your business in this specialized industry.
• Developing unique technical capabilities and certifications is another avenue for commanding premium pricing and client retention.

Conducting detailed market research on restoration work is key before diving into this capital-intensive industry. But with a passion for vintage vehicles and proper planning around target markets, capabilities, and shop location, the road ahead looks promising for aspiring automotive restoration entrepreneurs.

2. Analyze the Competition

Vintage car restoration is a niche industry, but new entrepreneurs still need to assess their local competitive landscape. Start by identifying shops within a 20-mile radius, and searching business directories and online maps.

Evaluate competitors’ websites and social media presence for services offered, years in business, sample project galleries, and customer reviews. Pay attention to the volume and quality of their online presence – a strong social following and positive reviews are good indicators of customer satisfaction.

Conduct on-site visits to inspect their facilities first-hand. How professional is the shop aesthetic? What equipment, bays, and parts inventory is visible? Speaking with the owner can reveal an insider perspective. Take notes on strengths and weaknesses to inform your service offerings.

Research service specialization like European classics or muscle cars. Track website traffic estimates through SimilarWeb and organic search traffic rankings with SEMRush . Monitoring sites like Yelp reveals real customer experiences.

Be sure to also assess national leaders like Speedy Auto Service highlighting their unique value propositions. How could elements like luxury showrooms, concierge services, or online parts stores set your restoration business apart?

Ongoing competitive analysis fuels continuous improvement once up and running too. Sign up for competitors’ e-newsletters and monitor the trade press to continually fine-tune and differentiate your vintage restoration services.

3. Costs to Start a Car Restoration Business

Starting a business venture in the automotive industry requires some financial investment. Both startup and ongoing costs are required to build a successful business strategy. Some of the costs you’ll encounter include:

Startup Costs

Properly setting up a car restoration shop takes significant capital investment, with costs quickly tallying depending on the services offered.

• Shop Real Estate – Leasing at a minimum of 2,500 sq ft of industrial warehouse space averages $4-$8 per sq ft monthly, translating to $12,000-$24,000 per year according to Loopnet data. Purchasing property requires $200,000+.
• Renovations & Build Out – After securing real estate, expect to invest $50,000-$150,000 in the shop buildout itself – everything from floor coating, lighting, ventilation, fire suppression systems, air compressors, equipment mounts, and custom welded work benches.
• Core Restoration Equipment – From pullers, hydraulic lifts, and brake lathes to plasma cutters, MIG welders, and metal shaping tools, properly equipping a shop will run $80,000-$120,000+. Plus specialty tools for tasks like cylinder head servicing or fabricating custom metal panels.
• Specialized Tools & Equipment – Stock $20,000+ worth of essential hand/power tools like impact guns, buffers, sanders, spray guns, drill presses, etc. Specialty repair equipment like a chassis dynamometer or advanced computer diagnostic systems can quickly add $30,000+.
• Parts Inventory – Whether fabricating in-house or sourcing from vendors, expect to stock at least $15,000-$25,000 in fast-moving restoration parts from hardware and sheet metal to engine components and tires. Limited runs of patterns, fabric, vinyl, and other specialty media should be $5,000+.
• Office Equipment – Outfitting your office with furnishings, computer workstations, phones/internet, security system, and point of sale system tallies around $15,000.
• Licensing, Insurance & Permits – Finalizing your business licensing, commercial auto/garage liability policies, and permitting fees with the city will total $3,000-$5,000. Custom shop signage is also $3,000+.

Ongoing Costs

Regular operating expenses quickly add up in the car restoration business:

• Assuming 2-3 restorers plus a front office associate and office manager, staff payroll tallies $110,000+ annually.
• Shop lease payments hit $12,000-$24,000 yearly.
• With extensive parts sourcing and hardware/media supplies, the average inventory and materials cost per full restoration project is $15,000-$30,000+, significantly varying by car make/model.
• Between machinery/equipment maintenance and general shop upkeep, facilities and maintenance fees reach ~$25,000 per year.
• Insurance, licensing renewals, and standard utilities like electricity and waste removal tally ~$15,000 annually.
• Marketing costs like website hosting, search engine, and social ads spend an average of $8,000 per year or more to generate customer leads.

Proper planning around these fixed and variable operating expenses is imperative for sustaining profitability in the capital and labor-intensive vintage car restoration business.

4. Form a Legal Business Entity

When starting an auto restoration business, the legal structure you choose impacts everything from personal liability to taxes owed. Weigh these options carefully:

Sole Proprietorship

A sole proprietorship is the simplest as you operate under your name without formal registration. However, you assume all liability for debts and legal actions personally. Income passes directly to you to report on personal tax returns as well. While easy to set up, risks are higher.

Partnership

A general partnership shares ownership and management between 2+ people. You divide profits and share control per your agreement without needing to formally register the business. It also means unlimited, personal liability, if your partner makes poor decisions like taking on debt, you’re both financially on the hook.

Limited Liability Company (LLC)

An LLC or limited liability company provides personal asset protection while allowing pass-through income tax treatment like a partnership. Owners aren’t personally responsible for business debts and liabilities. Only the LLC assets are impacted. Gives flexibility to a number of owners and buy-sell control rules.

Corporation

A corporation establishes the business as a separate legal entity from the owners entirely. Requires significant formal registration and strict record keeping. Owners are only liable up to their investment in company stock. Given regulations and double taxation of income, likely excessive structure for most restoration shops compared to an LLC.

5. Register Your Business For Taxes

Before accepting any payments, your vintage car restoration LLC must be registered for federal and state taxes via an EIN.

An Employer Identification Number (EIN) serves as the business’s equivalent to a social security number establishing a unique ID for filing taxes and employing workers. Acquire your EIN directly from the IRS at IRS.gov in just minutes:

• Access the EIN Assistant and select ‘View Additional Types’ including LLC under Limited Liability Companies.
• Work through the online questions including responsible party, LLC ownership structure, and foreign investments if any.
• Receive immediate EIN assignment once the short application is submitted. Print a confirmation letter containing the EIN for business records.

This EIN now links to your business tax accounts reporting revenue, deducting expenses, depreciating assets, and paying quarterly estimated taxes.

Contact your state revenue department to register for applicable sales tax collection based on the services provided. For example, California requires registration within 15 business days under select NAICS codes covering auto repair and restoration.

Filing for sales permits helps legitimize your new shop in the client’s eyes. It also streamlines tracking depreciable purchases made where you were charged sales tax initially.

6. Setup Your Accounting

Meticulous financial record keeping is crucial in the vintage car restoration business given the high costs of parts, materials, and labor on every unique project. There are many forms of accounting help to invest in as you start your business, including:

Accounting Software

QuickBooks handles all your bookkeeping needs, generating invoices, tracking payables/receivables, financial reporting, tax-ready documents, and managing payroll. Dashboards give real-time insight into profit margins across projects. Built-in templates are tailored specifically for auto repair shops , sparing tedious setups.

Hire an Accountant

Partnering with an accounting firm protects you during tax season and during key business milestones. Full-service bookkeepers offer specialized small business accounting including:

• Monthly reconciliation of bank/CC statements with QB data
• Payroll/Sales tax filings
• Adjusting books with inventory/job costing
• Optimizing cash flow analysis
• Compiling financial statements
• Sales tax optimization

Come year-end, your accountant handles completing complex depreciation schedules for all those key shop asset additions and navigating QB data import into tax returns to minimize liability. Expect to invest $200 per month plus $1000+ for annual tax prep.

Open a Business Bank Account and Credit Card

To successfully navigate your business finances, the IRS recommends separating personal and professional finances. Opening a business bank account and credit card for business purchases keeps you accountable and makes it easier to organize tax filings.

7. Obtain Licenses and Permits

Before opening the garage bay doors, your restoration shop must comply with federal, state, and local licensing regulations. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At a minimum, acquire your state’s auto repair shop registration proving certified technicians on staff. In California for example, the Bureau of Automotive Repair issues registration for facilities. Registration involves facility inspection, $200 initial fee, and $100 annual renewals.

Specialized smog check licensing is another consideration in states requiring emissions testing prior to vehicle registration. Contact agencies like California’s BAR or NY DMV to understand requirements like technician certification, equipment standards, and ongoing training if offering these profitable services.

Occupancy permits from city or county building departments validate your commercial space meets zoning, safety, and accessibility codes. Jurisdictions like LA County may also require additional plan check approvals and permits related to signage, electrical, plumbing, or mechanical systems.

Environmental agencies monitor issues like hazardous waste disposal from chemicals, paint booth emissions, and sanitation compliance. For example, Hennepin County’s hazardous materials licenses ensure proper handling while their hygienic standards govern sink basins, restrooms, and drainage.

If performing any custom metal fabrication like restoring chassis, door skins, or engine parts, also consider site-specific air quality permits regulating the use of MIG welders, grinding/sanding stations, and metal finishing chemical tanks.

8. Get Business Insurance

Restoring classic cars always carries an element of unpredictability, from receiving vehicles in unknown internal conditions to the intricacies of custom fabrication. Carrying adequate garage insurance defends your new business against unforeseen disasters.

Policies like those from The Hartford shield your company’s assets and personal finances should vulnerable situations arise like:

• Employee error during disassembly permanently damages a rare engine component. The owner sues for the $50,000 to replace and devaluation.
• An electrical fire sparked by outdated wiring destroys half your shop and the 4 vehicles inside causing $500,000 in damages.
• Brake failure while test driving a repaired classic Corvette after servicing leads to a multi-car accident injuring others.

Claims against your garage’s liability or property damage have bankruptcy potential without insurance buffers that also facilitate rebuilding.

Protect yourself by bundling these essential policies:

• General Liability – Covers 3rd party bodily injury, property damage, personal injury, and advertising injury claims. Limits often $1-$5 million.
• Auto / Garagekeepers Liability – This applies when customers’ vehicles are damaged while being moved or stored on the premises.
• Umbrella – Additional liability limits protecting business assets from lawsuits.
• Commercial Property- Repair/replacement coverage for business property damaged by covered causes like fire, theft, and vandalism.
• Workers Compensation- Mandatory in most states covering medical and partial income costs of employees injured on the job.

Reaching out to specialty brokers saves money by packaging niche policies meeting your custom restoration shop’s unique needs versus general contractors. Expect costs between $150-$300 monthly for ample protection to make scary worst-case scenarios less daunting.

9. Create an Office Space

An office area allows client consultations, paperwork, and phone calls without interrupting shop work.

Options balancing convenience, professionalism, and affordability include:

Home Office

A home office works for sole proprietors just starting. Use a spare bedroom or basement space for an office/computer area and storage. Meet clients at their location or in public spaces. Minimal financial outlay but appears less established.

Coworking Office

For about $300 per month, a coworking space like WeWork provides a business address, desk space, conference rooms, phone booths, internet, and printing/copying. Great for meeting clientele away from the shop in a modern environment conducive to paperwork. No lease commitment.

Retail Office

A storefront office offers the most visibility – clients can drop vehicles at the same location as your restoration shop. Invest $2,000 per month for 1,000 sq ft including furnishings in a high-traffic area to capture walk-in business too. Managing both spaces splits focus.

10. Source Your Equipment

A restoration shop needs heavy machinery for metal shaping, welding, and painting plus hand tools, lifts, and specialty gear. Evaluate new, used, and rental options:

Buying new enables customizing your dream setup but carries premium pricing, quickly totaling $100k+ for all necessities. Invest in durable top brands like SnapOn or Hunter that hold value should you later resell. Use equipment financing from suppliers like Home Depot or banks to ease the cash flow strain of large one-time purchases.

Used Equipment

Auction sites like IronPlanet and GovPlanet offer 30-50% savings off retail. Search locally on Facebook Marketplace and Craigslist for deals as well. Closely inspect condition prior, noting hours used for big machinery, which may require near-term replacement parts like brake system rebuild kits adding costs later.

Renting assets like plasma cutters, mag drills, tubing benders, and English wheels costs $100 daily but avoids huge upfront costs. Useful for occasional specialty projects without enough volume to justify buying outright. Loss/damage waivers protect your budget. Rental centers allow trying before buying to assess necessity long term.

For versatile gear like lifts, research leasing options that let you steadily upgrade equipment like QuickJack portable scissor lifts while building business credit. Canceled anytime with 30-day notice terms like 36 months cost reasonable monthly payments while leaving working capital free for parts and shop expansion needs versus debt.

11. Establish Your Brand Assets

Crafting a recognizable identity attracts the clientele willing to pay premium rates for show-quality restorations. Define logo, contact info, web presence, and signage conveying your shop’s specialized expertise and service caliber.

Get a Business Phone Number

A memorable business phone number via RingCentral offers customizable recorded greetings and extensions so customers easily connect with sales or technicians. Online fax/SMS capabilities and toll-free options project professionalism.

Design a Logo

Your shop logo and brand assets like letterhead, uniforms, and bay signage should share cohesive colors and fonts, known as a visual identity system. A classic logo from Looka with vintage iconography and strong typography brands your niche.

Print Business Cards

Business cards from Vistaprint provide sales staff professional collateral to exchange at events with prospects used to close deals later. Custom signage adds credibility on-site.

Buy a Domain Name

Secure the perfect domain name like ClassicCarRestoration using Namecheap for $15/year. Short, descriptive names build awareness and trust.

Design a Website

An information-rich website and portfolio convey capabilities. Use Wix drag-and-drop tools for easy self-service site creation at $23/month. Or hire a freelancer through Fiverr starting at $100.

12. Join Associations and Groups

Networking with other restorers shares valuable insider tips helping your shop save time and money. Join industry associations, attend trade events, and connect online.

Local Associations

Local associations like the Classic Car Restoration Club provide camaraderie through group rides while learning restoration techniques at tech sessions and swap meets. Regional clubs abound for marque-specific owners like Jaguar, so connect with your niche.

Local Meetups

Attend local meetups and trade shows found via sites like Meetup to discover new tools and materials from vendor booths while bonding over classic models on display. The $1000+ for premium parking inside events pays dividends in future business referrals.

Facebook Groups

Facebook groups like Classic Car Restoration! and Old Car Restoration offer Q&A from thousands nationwide. Learn paint codes, source NOS parts traders, and ask about fabrication challenges. Use search to uncover groups specific to your niche.

13. How to Market a Car Restoration Business

Effective marketing conveys your specialty services and craftsmanship so classic car owners seek out your shop over competitors or tackle projects themselves. Leverage digital platforms and word-of-mouth networks to drive conversions.

Referral Marketing

Satisfied clients referring their fellow collectors to secure reservations for a 2-year restoration waitlist is ideal. Entice brand loyalty with 5% discounts on multi-vehicle packages while requesting social media tags and online reviews after delivery to organically showcase your work.

Digital Marketing

Digital tactics effective at low costs with targeted reach include:

• Google Ads campaigns geo-targeting regional enthusiasts searching terms like “Corvette restoration”
• Facebook/Instagram ads showcasing before/after project photos sent to custom audiences who engage with niche auto brands
• An educational YouTube channel or TikTok documenting full restorations from procurement to reveal event glamour shots
• Guest blog posts on sites like Hagerty highlighting specialization services or parts fabrication techniques
• SEO-optimized website content bringing organic search traffic for unique processes only your shop offers

Traditional Marketing

Traditional approaches still hold relevance for niche hobbyists reading specialty publications:

• Classified listings in Hemmings Motor News and Sports Car Market emphasize your marque expertise
• Flyers at Cars and Coffee events and Concours d’Elegance shows attended by your target demographic
• Radio segments on local NPR affiliates resonate with educated, cultured collectors prizing fine automobiles
• Direct mail postcards to households with registered classics in affluent ZIP codes nearby

Mixing digital discovery and physical outreach captures prospects however they best consume antique auto media. Relying solely on word-of-mouth referrals risks slow growth if existing customers remain satisfied with the current stable of vehicles. Seize every channel to convey mastery in restoring their beloved rides.

14. Focus on the Customer

Restoring sentimental vehicles is an emotional experience for clients. How you make them feel during this lengthy, expensive journey determines referrals and repeats.

Initiate the relationship by showing genuine passion for the models they bring rather than dollar signs. Send progress photos over the multi-year project, welcoming walkthrough shop tours. Celebrate milestones like sourcing that rare trim piece together.

When issues inevitably arise with custom fabrication or changes in scope, immediately consult owners to align on options rather than deciding unilaterally. The trust and rapport built via transparency preserves the partnership even if additional costs are involved.

With waiting lists stretching years out, new customer acquisition loses its urgency. Pouring effort into existing client relationships ensures your calendar stays filled as their show car friends take note and inquire about your availability for their classics.

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How to Write an Auto Repair Shop Business Plan + Free PDF

Elon Glucklich

8 min. read

Updated February 16, 2024

Looking for a free, downloadable auto repair shop business plan Word doc or PDF to help you create a business plan of your own? Bplans has you covered.

You don’t need to find a sample business plan that exactly matches your business. Whether you’re starting an independent garage, a specialty shop for imports, or an auto body shop, the basics of the plan will be the same.

More than 280 million registered vehicles were on the road across the United States at the end of 2022. With a vast majority of them being used vehicles, the need for skilled auto repair technicians is higher than ever.

In this article, we’ll cover the basic elements of how to write an auto repair shop business plan, from your marketing plan to your financials. We also provide a sample auto repair shop business plan PDF for you to download and incorporate into your own plan.

What should you include in an auto repair shop business plan?

Are you writing a business plan for your auto shop because you’re seeking a loan ? Are you looking to clarify your path to creating a profitable, long-lasting business? 

Independent auto repair shops account for three-quarters of all used car repairs in the U.S., so there are numerous examples of successful business models to guide your business. 

But no two auto shops are exactly the same, so your plan will differ from others based on who you’ve identified as your target market , and what products and services you’re offering them.

Many business plans include the following sections:

• Executive summary
• Company overview and funding needs
• Market and competitive analysis
• Products and services
• Operational plan
• Business structure
• Marketing and customer acquisition strategies
• Financial planning and projections

One thing that makes an auto repair business plan different from many other service-based business plans is the sheer number of different products and services you might offer. 

For instance, besides providing auto repair services, you might also sell parts, accessories, and car care products. Each might require a different promotional strategy to maximize the number of sales you make.

You may also want to think about how you’re pricing your services and if you have specific staffing requirements or training programs.

Here’s an example of an auto repair shop business plan outline.

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The 8 elements of an effective auto repair shop business plan

1. executive summary.

The executive summary is a high-level overview of your business plan. 

It shouldn’t be more than two pages, and even though it goes at the beginning of the plan, you should write it last. That’s because the executive summary is basically a condensed version of your business plan.

Your executive summary should include a mission statement that describes the purpose of your business and what sets it apart from competitors. Maybe you can guarantee a quicker service time than other shops in your area, or you offer a unique mix of services.

Your business plan helps you focus on these key factors that will help your auto repair shop thrive, and the executive summary makes your plan more credible to anyone reading your plan.

2. Company overview and funding needs

The company overview is a short summary of your auto repair shop, including its legal structure , location, and history. 

If you aren’t seeking a loan or investment for your business, you can likely skip this section. 

If you are writing the business plan for funding, clearly state: 

• How much you need
• What you will use it for
• How it will benefit the business

For instance, you may need funds to renovate your building, buy equipment, or place advertisements.

3. Marketing plan and competitive analysis

The marketing plan focuses on analyzing the auto repair shop market in your area, both in terms of potential customers’ needs, and how other shops in the area are (or aren’t) meeting those needs.

Researching your market involves researching local demand for auto repair services. For instance, a shop in a colder climate might have customers with different car issues than a shop in a warmer area. A shop in a lower-income market might get more customers with older vehicle models than one in a high-income market.

The market analysis should also examine your competitors , noting their strengths and weaknesses and how you can differentiate your shop.

4. Products and services

This section outlines the range of services your auto repair shop will offer. You can list them as bullet points, though you should also take some time to explain why you are offering them. 

Start with your most profitable services, and work your way down. Also, separate any unique services products that differentiate your auto repair shop from competitors (you’ll need to do market research to know which services will set you apart).

A list of products and services could include:

• Engine repairs
• Transmission work
• Suspension and steering
• Brake repair
• General maintenance
• Auto part sales

You can also include specialty services like:

• Classic car restoration
• Hybrid and electric vehicle maintenance 

5. Operational Plan

The operations section details the everyday functioning of the auto repair shop. It includes the shop’s operational hours, workflow management, and customer service policies.

The idea with this section is to cover the processes that you’ll deploy in your business to make sure your shop is operating efficiently, so you can maximize the number of customers you’ll serve and revenue you’ll bring in. 

Be sure to touch on how you’ll manage inventory , work with parts suppliers, and ensure equipment maintenance protocols are being followed. Also, outline safety procedures and environmental compliance measures you’ll implement.

6. Business structure and management

This section describes the organizational structure and management of the auto repair shop. If you skipped the Company Summary and Funding Needs section, include information about your legal structure here. 

Many owners choose to incorporate their business as Limited Liability Companies (LLCs) . This option strikes a balance between protecting the business from legal liabilities while providing flexibility in how they operate their business.

The management team section provides information about the auto repair shop’s key personnel. This includes the shop owner, managers, technicians and front office support. 

Briefly explain their roles, responsibilities, qualifications, and experience. 

7. Marketing and customer acquisition strategies

This section is where you’ll outline your strategies for attracting and retaining customers. You might want to offer loyalty programs for repeat customers, discounts for customers coming to your shop for the first time, or add-on services like a free car wash.

Cover the various marketing channels you’ll use, like local advertising or online marketing. Maybe you want to create a strong website and leverage social media. Or maybe you’ll rely more on partnerships with local businesses and participation in community events. 

Focus on how you plan to build a strong reputation to attract and retain customers.

8. Financial planning and projections

Your financial plan should give detailed financial projections, including sales , expenses , and profitability . If you’re running an existing business, you can start with your previous year’s numbers. If you’re just starting out, put in your best guess.

Set a goal for yourself — maybe you want to grow revenue by 5 percent. Create a 12-month cash flow statement, income statement, and balance sheet that rises by 5 percent from the beginning of the year to the end.

Then, run your business. 

As you compare your actuals to the forecast over time, you’ll see where you need to make strategic adjustments in order to reach your goal or if you need to revise your target. 

It’s totally fine to adjust your forecast over time — forecasts are just guesses, after all.

Building a successful auto repair shop business plan: Key considerations

Understanding your target customer’s needs is crucial to writing an auto repair shop business plan that you can use effectively. 

To ensure your business plan is the foundation of a growing operation, ask yourself whether you’re taking these considerations into account.

1. Service range

Vehicle owners have varied needs. 

You should offer a broad spectrum of services that meet as many of the needs in your market as you can realistically provide, from basic maintenance to specialized repairs. Catering to more customer segments than your competitors is a good way to set your shop apart.

2. Pricing strategy

Competitive pricing is crucial. You want to attract customers with reasonable rates, while ensuring profitability by bringing in more revenue than expenses. Researching your competitors’ prices should help inform your pricing decisions.

3. Technician expertise

Skilled technicians are vital to your reputation and your bottom line. Make sure your technicians undergo regular training so that they’re up to date with the latest automotive trends and technologies. 

Take some time to research technician wages in your area, to ensure you’re paying a competitive wage that will attract qualified employees.

4. Online presence

A strong digital footprint is essential. 

Even if you plan to rely on traditional advertising and word-of-mouth sales, a website that is search engine optimized can help you generate good online reviews and attract customers in your area who are searching for auto repair services online. 

If this isn’t an area of strength for you, consider hiring a website designer .

5. Shop environment

It may not make or break your business, but providing a welcoming environment at your shop signals to customers that you’re running a credible organization—a factor that might affect whether or not they return. 

Focus on cleanliness, organization, and professional service.

Download your free auto repair shop sample business plan PDF

Download your free auto repair shop sample business plan PDF now, or explore Bplans’ collection of over 550 sample business plans for other options.

There are numerous reasons auto repair shop owners can benefit from writing a business plan — you’ll almost certainly need to write one if you need a bank loan.

But even if you’re not seeking funding, writing a business plan increases your chances for sustained growth .

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• What to include in your business plan
• Elements of a business plan
• Key sections
• Example and template

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How To Start A Car Restoration Business Full Guide | Thesofte

The question of how to start a car restoration business is one that many people have asked over the years. Very few have carried out this step successfully because it takes a lot more than just buying the parts needed and having the tools. They also need to understand how much work goes into restoring an entire motor vehicle from the bare shell to the beautiful car that it is today. This step-by-step guide will show you how to start a car restoration business properly, what pitfalls to avoid, and where you can go for help if needed.

Start Where You Are Now

The first thing that needs to be done is to assess where the company currently stands in terms of knowledge, skills, and equipment. This can be done by asking employees, friends, and family to answer the following questions:

• Who is qualified to do what within the company?
• What type of background or experience does someone need for certain tasks?
• How much training is required before an employee can start a certain task?

Once these questions have been answered, employees can be allocated to their designated areas. This should give the business owner an idea of what type of qualifications are needed for each task and how much training is required before someone can perform that task safely and effectively.

What Are The Necessary Skills?

The next step should provide you with a list of the skills necessary for this business. The more skills you have, the better because it means that each employee can provide different types of work while still maintaining a high level of quality in your products.

The key areas that need to be covered by employees are welding, painting, mechanical ability, electrical knowledge and ability, metalworking (knowledge of exactly how to cut and bend metal), and last but not least, an eye for detail. All of these skills do not have to be completed by one person, though; there is more than enough work required to keep a few people busy at all times.

What Are The Necessary Tools?

Many tools will be required to get the job done. The first area that should be looked at is the electrical system, which will require a small amount of equipment. One person can get by with an electric drill, circular saw, jigsaw, and table saw; all of these are fairly inexpensive but will provide enough power for this business’s needs.

For the metalworking side of things, a band saw, and an angle grinder will suffice. The angle grinder can be used for cutting and grinding metals and removing rust from steel panels before painting them. It is also useful if you need to grind down bolts or screws; this eliminates any problems that may arise when trying to use an angle grinder on smaller items.

The welding process requires at least one to two welders to get the job done; again, this is not expensive equipment but is also powerful enough for all the welding needs of this business. The last area that needs to be looked at is painting because having a paint booth will speed up the entire painting process and improve the final results. This area requires a paint sprayer, paint booth, isolation fan, and compressor to do it properly.

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Concluding Thoughts

Although there are many steps involved in starting a car restoration business, they can be broken down into easier-to-handle portions that can then be implemented. The amount of preparation, time and energy needed to get the company up and running is very small compared to what is required for a business owner once it’s open.

So before starting a car restoration business or any type of auto body shop, make sure that you have all the proper knowledge and tools to run a successful business.

I hope you enjoyed the article and that it provides helpful tips for anyone planning to start a car restoration business or an auto body shop of their own.

If there are any topics, you would like for me to cover, please comment below. And if you liked this article, please share it with your friends! Thank You!

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Setting Up A Classic Car Restoration Workshop

Car enthusiasts are always on the lookout for the classics. While sometimes they may find a car in good condition, most of the time they need to invest in the restoration of the classic. Here’s a fact, the business potential for car restoration workshops is growing with the demand for classic cars .

Whether a collector, an exhibitioner, or simply a first-time car buyer, they all head up to the classics for their needs. Perhaps, setting up a classic car restoration workshop is a feasible and scalable business idea.

That being said, thinking about setting up the workshop and making it a reality are two ends of a rope. There is a lot of planning that goes into making the ends meet. Besides, there are several preparations that need to be undertaken to set up a fully functional workshop.

Here are a few tips that can help you get your classic car restoration workshop on track.

Begin With Understanding The Market In Your Community And Around

This might seem like a no brainer, but the fact is, this is the most crucial part that can decide the overall success of your business. Well, you may already know that your market has the potential for classic cars, but what you need to figure out is the scale of this potential. In other words, are there enough buyers to make your business run sustainably? Here are a few quick pointers that can help you figure out the scaling potential for your business.

• Identify the key communities around your business location.
• Learn about their interests and taste in cars and classics.
• Try to measure and establish a range to their disposable income.
• Make sure you account for your own expenses when calculating the potential for your business’s growth.

In a nutshell, you would need to collect and process a lot of data in order to plan your business goals. Essentially, you would not only be measuring the communities that are interested but also how frequently they spend their money on such projects.

Clearly Define Your Objectives Based On Your Market Analysis

Learning about the market needs is the first step, but it alone cannot promise the success of your workshop business. Market analysis when combined with effective planning act as the founding pillars for any business. And your workshop business also needs to comply with this fundamental practice. Creating a business plan and defining tangible objectives can ensure a better brand image for your business. For example, besides regular restoration tasks, if your workshop can offer detailing services within the same price bracket, you can expect more business. After all, your happy customers would spread out the word for your extraordinary customer services and would bring in referral leads for your business. Therefore, having clearly defined goals, such as how many projects would you take up in a week, the time you would dedicate on a single project, and so on can have a far-reaching impact on your customers. So much so, that clearly defined objectives are a mark of professionalism and dedication towards your work.

Prepare A List Of Essential Equipment You Need Right From The First Day

A lot of people make a severe mistake of buying tools and equipment without thinking through the need for them. The end result is, they either spend their money on equipment that they may never use, or they miss out on the necessary ones. In either case, the consequences are detrimental to the business. You must avoid making any such mistakes. Instead, you must prepare a list of tools and equipment that you would need in all projects, right from the very start. For example, wrenches, pliers, welding machines, drills, and so forth, are some of the common tools that you would need in every restoration project. Apart from this, you would also need to ensure continuous power supply to your workshop. For this purpose, you must invest in a diesel generator. Notably, a standby generator such as https://www.ablesales.com.au/industrial-diesel-generators/7-20kva can ensure that all of your power equipment is supplied with enough energy and that too at an economical expense. After all, you can’t be working without electricity. You can’t operate the lift, power tools, or even the air pumps without electricity.

Get Your Business License, And Start Operations In Your Workshop

By now, you must have a raw plan, a blueprint for your business with you. But still, the work isn’t over yet. You would need to comply with the legal obligations for starting a business. For instance, you may need to get your business registered with the local authorities. Furthermore, you may also need to comply with the necessary documentation for tax purposes. It is always better to consult with a legal attorney who can assist you through the business registration process. Perhaps, they can save you from any troubles in the future. Once you fulfill all the legal obligations for setting up a business , it’s time you make the major investments. Choosing a site for your business, however, is an investment that you may require to make before getting your business license. The rest of the investments including purchasing inventory, marketing, and promotions for your business, and installing the design elements to your workshop can be done after you get your license.

Starting a classic car restoration workshop is a lot easier said than done. But with the right knowledge, and of course, guidance the problems and hurdles can be overcome easily. No businessman ever wishes to invest in a plan that could not guarantee returns. The evaluation of returns is only after the business starts its operations. In other words, starting up a workshop surely has the potential for returns on investment. But the size of the returns can only be decided after the workshop starts its operations. So, once you start working on restoration projects, you must also start planning for scaling up your business, and expanding its reach to newer markets.

Summing it up, a classic restoration business is surely a promising investment.

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• Start up business ideas
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Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

• Dealing with stress
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• How to work out tax and NI
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• Looking after your customers
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• Buying IT for your new business
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• How to scale up your business
• Funding business growth
• Start exporting
• Personal development

How to start up a classic car restoring business

Sales of classic cars have been booming in recent years, providing opportunities for the restoration sector. Get the essentials for starting up and running your own classic car restoration business in our practical guide.

Research the classic car restoration market

Decide what restoration and repair services you will offer, why will people choose your car restoration business, price your car repair and restoration services, promote your car restoration business, buy an existing car restorers.

Classic cars are popular in the UK, and there is a fairly steady demand for restoration and repair services. However, the industry is competitive and restoration services are available from many different sources with your main competitors being existing specialist classic car businesses, ranging from one man outfits working in a small garage to businesses located in large industrial units. Some classic car dealers operate their own restoration workshops and some general car repair businesses also undertake occasional work on classic cars.

You will want to make sure there is enough demand for your classic car restoration business. A look through the relevant classifications on Yell.com and other similar online directories will give you an idea of the level of competition. You could also try looking in classic car magazines. Try to identify how many other businesses are already providing classic car repairs, maintenance and restoration locally. If you intend to specialise in a particular make of car, you may need to think about the demand from all over the UK. You'll need to look at motor sport magazines and contact owners clubs to find out how many specialist restorers exist for the particular marque and whether owners will be prepared to transport the vehicle to your workshop for restoration.

Be aware that demand for classic cars - and the range of services that owning and running them requires - does rise and fall over the years.

It may be that you will only be competing directly against some of these because you will be targeting a particular area of the market or offering specialist services that are hard to find elsewhere. Look at the existing businesses to establish:

• whether they specialise in any way (either in a particular make of car, or in the type of work they undertake)
• whether they offer full scale restoration services or tend to concentrate on smaller jobs
• if they offer MOT preparation and testing
• if they offer paint spraying services
• what other services they offer (for example upholstery repairs, convertible roof replacement and so on)
• what prices they charge
• how knowledgeable and helpful their staff are
• whether the premises and fittings are modern and smart

Try to find out if there is a gap in the local market that your business can fill.

Your market

Most of your customers are likely to be classic car enthusiasts. Many will need regular servicing and repairs to keep their vehicles roadworthy, rust-free and in reasonable condition. Note that from 20 May 2018 most vehicles over 40 years old (on a rolling basis) are exempt from MOT testing, but they must be in safe roadworthy condition if they are used on public roads. Cars that have been substantially changed must continue to be tested annually.

As well as private motorists, you may get work from classic car dealers and exporters, classic car hire firms, funeral directors and wedding hire companies that use old vehicles.

Find out what people want

As you are likely to face tough competition, it is important to find out what people want and if there are any particular services you can offer which will attract customers. Many classic car owners work on their own vehicles and only use professional help for large and/or difficult jobs. It is important to consider this when deciding what services to offer. You could contact local motor clubs, classic car dealers or owners clubs for particular makes of car to see if there are any particular services that are in demand.

Research current trends, plus legal and tax issues

• Sector trends for classic car restorers
• Legal issues for classic car restorers
• VAT rules concerning classic car restorers

Many classic car restoration businesses undertake jobs ranging from small bodywork and mechanical repairs to large restoration projects and accident repairs that involve completely rebuilding a car. Others carry out MOT preparation work, often involving repairing corroded areas. Note that from 20 May 2018 most vehicles over 40 years old (on a rolling basis) are exempt from MOT testing, but they must be in safe roadworthy condition if they are used on public roads, and cars that have been substantially changed must continue to be tested annually. Some restoration businesses offer general servicing, modifications or preparation for classic car racing or rallying. Typically (and depending on the focus of your business) you might expect partial or full restorations to make up about 65% of your work and ongoing maintenance and repair work 35%.

Rust proofing - including initial treatment and periodic 'top-ups' - is another service which most classic car owners will require and is often applied as an essential part of a major restoration. There are several proprietary products and systems on the market, with many classic car specialists opting for Waxoyl or Dinitrol. Many firms make occasional use of other specialists for certain jobs, particularly things like re-trimming and upholstery repairs.

You could decide to buy and sell some classic vehicles as well as undertaking restoration services. And you might decide to offer a classic car hire service - this could appeal to wedding customers and others organising special events.

Full restoration services

Carrying out the complete restoration of a classic car can be complex, time consuming and require many skills and in depth knowledge. If you have worked in the sector before setting up your own business, you may feel able to undertake this type of work from the outset, but otherwise you may wish to carry out more straightforward jobs to begin with. Remember that some cars are easier to restore than others - for example, a Morris Minor is far less complex than an Aston Martin, and spare parts will also be easier to find and less expensive.

To provide full restoration services, you and your employees will need the skills to be able to carry out:

• mechanical, engine and wiring work
• welding, bodywork and re-spraying
• interior work

For a full restoration, the vehicle will have to be transported to your workshop, restored over a period of three or four months and then transported or driven back to the customer.

Specialising in a particular service, marque or model

Specialising can be a good way to distinguish your business from other car restorers and help you to compete effectively. Your market research might have revealed a gap in the market that you can fill by offering a specialist service. For example, perhaps no one in your area specialises in engine rebuilding or interior re-trimming. Alternatively, you might decide to specialise in a particular make such as MG or Triumph or even a single model such as the VW Beetle, the Mark 1 Ford Escort or the Morris Minor. You could also focus on range of vehicles of a certain type such as classic British sports cars or American cars.

Think carefully about how you might specialise. Popular cars such as MGBs, Morris Minors and air cooled VWs are often used daily and so there is a fairly steady demand for servicing, repairing and restoring these cars. However, there are already many specialists that deal with these kinds of cars and so competition can be tough. If you specialise in a less common type of classic car, you will face less competition, but you will of course be chasing a smaller number of possible customers.

Bear in mind the location of your business and its potential customer base. In some places (rural areas, for example), it might be necessary to undertake a wide range of jobs in order to get enough work. In this case it might be best, at least while your business is getting established, to undertake whatever work comes your way, on any type of car. You can always specialise later on if it seems that there will be enough work.

You need to make sure that enough people will choose your business rather than taking their car elsewhere.

Many of your jobs are likely to be small repairs, such as bodywork, structural welding, mechanical repairs and overhauls. For this type of work you will be competing against other classic car specialists as well as general car repair businesses that also undertake work on classic cars.

For smaller jobs like these, particularly those which don't require any specialist knowledge of the type of car being worked on, it's likely that you'll face competition from a number of local restoration and repair businesses, with some potential customers making their choice solely based on price. However, to many classic car owners price is not everything, and potential customers will also consider factors such as your reputation, the level of service you offer and the quality of work done. Classic cars are often prized possessions, owned by enthusiasts for whom the quality of work is even more important than the cost. It is also quite common for a classic vehicle to be viewed as an investment and the value of such a vehicle may be compromised if work isn't done to the required standard or if undesirable parts are used.

You might also take on larger projects, such as completely restoring a car that has not been used for many years. Alternatively, your market research may have revealed a gap in the local market that you can fill. For example, perhaps no one in your area specialises in engine rebuilding.

You could consider contacting local classic car clubs to let them know of your services and possibly offer a discount to members. You may decide to specialise in a particular make - in this case contact the owners' club for that type of car. You can find lists of the clubs in classic car magazines. Most clubs produce regular newsletters or magazines in which you could advertise. Many also have online forums, although there may be rules about blatant commercial advertising on them.

Whether or not you decide to specialise in a particular type of work, or make of car, try to emphasise the quality of your services. Joining a trade association quality scheme will demonstrate that your business is run to a high standard. Similarly, a friendly and knowledgeable approach will inspire confidence in potential customers. People working in classic car repair and restoration businesses usually have a keen interest in cars and should be happy to discuss matters with customers and to offer advice. An in-depth knowledge of older cars, restoration techniques, modifications and so on is a real strength. Classic car owners are often enthusiasts who will greatly appreciate a friendly approach and knowledgeable personal service. Make the most of these strengths and ensure your customers are aware of what you can offer.

Getting the price right is very important. When considering your pricing policy, remember that you must be able to cover your costs, overheads and drawings.

Invoices for general repair work are usually itemised, with the cost of replacement mechanical parts, panels, paint and so on, listed together with a separate charge for labour.

The charge made to a customer for parts is usually the cost price of the parts increased by a certain amount as profit margin. Many businesses add around 15% or 20%.

The labour charge depends on how long it takes you to do the job and the set rate charged per hour. Hourly rates vary considerably - you could check the competition to see what rates are charged in your area.

With other work, it is up to you to decide what to charge. For simple jobs, you may decide on a set fee - for example a fixed price for replacing a wheel bearing, re-spraying a bonnet or wing, or undersealing a medium-sized car.

For most classic car repairs it will usually be necessary to assess each job as it comes in, and agree a price with the customer beforehand. When you're doing accident repairs for insurance companies they'll expect you to quote a very competitive price and keep a tight lid on costs. Experience is necessary to estimate the extent of the work required and set a fair price. Make it clear that the price you quote is an estimate, which could increase to a certain extent if problems arise. Even so, be sure to get the customer's consent before you embark on any additional work not originally budgeted for.

Complete restoration work

Be particularly careful if you undertake complex restoration work. Disputes often arise because the amount of work required (and hence the cost) can be difficult to judge until a car is completely dismantled. A reasonable looking vehicle may turn out to be a can of worms, with extensive corrosion hiding beneath a sound looking exterior. Although you may well be an enthusiast who enjoys the work, be sure to keep track of all the hours you spend on a job and charge for them appropriately - otherwise you could end up working for little or nothing. Take care when making estimates and avoid misunderstandings by keeping customers regularly updated on how the restoration is progressing. Total restorations can take months and can cost thousands or even tens of thousands of pounds to complete. In such cases, an arrangement is often made with the customer to pay for the work in stages.

Special offers and discounts

You may decide to offer a standard discount as a matter of course to any trade customers. How much discount will depend on your pricing policy and the level of local competition.

Many businesses also give discounts to employees, regular customers, family and friends. A reduced rate could be offered to members of a classic car club. Check out the local opposition for ideas and keep a close eye on any special offers you do make to be sure that they are working for you. After all, these kinds of promotions might encourage extra business, but they will also affect the amount of profit you make on each job.

It's important to think about how potential customers will view your business and how you will get your key message across to them.

The right image

People's first impression of your business may be influenced by the way it looks - so it is vital to project the right image. Try to keep your premises clean and tidy and if necessary, consider repainting to brighten things up. Use signs to indicate what services you offer. If possible, have a separate reception/waiting area, where you can talk to customers.

If you operate a tow truck for collecting vehicles that are not roadworthy, bear in mind that it will be a highly visible advertisement for your business. It doesn't need to be new - it could even be a classic vehicle - but it should look smart and well maintained.

Good service

Even more important than appearance is the attitude shown to customers. Treating customers in a friendly, helpful and polite way will help to create a good impression. Reputation can only be built over time, but from the outset you should aim to offer a high level of service and ensure customers are satisfied with the work done.

Deal with any questions or complaints promptly and politely. Take care when making estimates and always contact customers before embarking on work not originally budgeted for. This is particularly important when undertaking restoration work as the amount of rust needing work can't usually be seen until a vehicle is completely dismantled. Make sure that customers are kept well informed as the restoration progresses.

Quality standards

High standards are essential to attract and retain customers. Some owners clubs publish lists of recommended specialists that are updated annually. If you specialise in a particular make, contact the relevant owners club to see if it operates such a scheme.

Various trade associations have quality assurance schemes that set strict standards for their members. Schemes include:

• the Motor Ombudsman Code for Service and Repair
• the Good Garage Scheme, which enables people to give and read feedback on participating businesses
• National Body Repair Association (NBRA) quality control schemes and the Thatcham BSI Kitemark award for vehicle body repair developed in conjunction with the NBRA, part of the Retail Motor Industry Federation (RMIF)

You may be required to undergo training and your premises may have to reach set standards before the business earns the right to display something like the NBRA sign. The effort is worth it though as you will demonstrate to potential customers the high level of service on offer.

Advertising and marketing your business

It is important that you advertise your business effectively so that potential customers know about you, the services you offer and the quality standards you work to. There are a number of things you can do to promote your business:

• use well-designed signs at your premises to inform and attract passing trade
• advertise in your local newspaper and any local directories
• advertise in classic car magazines
• contact local classic car clubs
• contact the appropriate owners club if you specialise in a particular make
• launch your own website to reach a wider market - particularly relevant if you offer specialist services not easily found elsewhere
• use social media, industry forums and blogs
• contact any nearby businesses that might have classic cars (for example, wedding hire businesses, museums, classic car hire companies) to let them know about your services and pricing structure

You might decide to buy an existing car restoration business rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises and equipment are already in place.

But  buying a business  can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.

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Vehicle Restoration Planning w/ Free Printable Checklist

Restoration checklist and planning.

Starting a new or first ever project on vehicle restoration is as exciting as learning to ride your first bike. (For some of us)

We hope to give you some considerations and some guidance that may help with your car restoration or truck restoration along the way.

One of the most important issues to consider for your auto restoration is the space you will need. So many people get so wrapped up in the possibility of the project that they don’t consider the comfort and organization needs of a long-term project. Let’s face it, this will not be a few weeks and in most cases, you are going to go through a few seasons of inclement weather.

SPACE: It’s all about the space (Kinda)

The ultimate space for a project is at least a 2-car garage or equivalent space with a roof. Consider the vehicle, the tools, the need for power outlets.

You will be removing the interior, body panels (which also need to be stripped) and stored as well as new replacement parts and panels. You may also need space to remove and rebuild or replace the engine.

OUTSOURCING:

Consider the project parts, for a classic car restoration , that you may need to outsource. Do you have a painter in mind? Interior restoration, which will require specialized tools? Have you given any thought to the transmission and rear axles? Many of these items are best handled by experienced professionals. Including serious engine work, such as cylinder boring.

With automotive bodywork, if you want it done right, you will either need to learn to do it yourself or farm it out to a reputable shop. The same thing goes for welding.

To avoid a project that sits for years, give yourself a little time to sketch a plan and consider your options and what you will need. Some research on planning for the unexpected will help you a great deal.

**YOU CAN NOW SQUARE THE VEHICLE AND CHECK CASTER, CAMBER AND TOE WITH ALL IN ONE NEW 5th GEN QuickString is  HERE

Let’s do a little pre-planning and avoid the haunting dream of graveyard of cars.

Here are a few guidelines:

How do you plan on using the car when completed?

• Daily driver
• High School Reunion
• Weekends and occasional cruise nights
• Barrett-Jackson (Wink, wink)

How much of the work will you do yourself?

• Some mechanical
• Most mechanical
• Some bodywork
• Most bodywork

For outsourcing

• Are they an enthusiast like you, or just interested in money?
• Are they easy to talk with, and are they listening?
• Do they have a history of competence and quality?
• What is their timeframe for completion?

Including initial cost, what is your estimated budget for this project?

• Under $5,000
• Between $5,000 and $10,000
• Between $10,000 and $15,000
• Over $15,000
• Barrett-Jackson ($50k+)

How much time are you willing and able to spend on the project and when do you want it complete?

• 4 to 8 hours a week
• 8 to 16 hours a week
• 16 to 32 hours a week
• More than 32 hours a week

These are just some of the considerations. There is no one way procedure for doing all the individual tasks involved. You can separate the overall project into parts and give yourself some organized breathing room:

• Accessorize

If you only have one work space, try to set up two separate areas. That way, you can work on two different things at the same time. When weather or parts availability stops progress on one, switch to the other. Eventually, everything will be finished, and you can reassemble the car in reverse of above. Make sure you document everything with photographs of before and after removal for your restoration car project. This will help you remember where everything sat in its original place. Don’t fool yourself into thinking you will remember in 15 months or 2 or 3 years.

Create a book and log everything. This will be of great value to you in the future and to the future owner, whether it is an heirloom build or to be sold.

Automotive enthusiasts are a supportive family of people. This holds true for most of the manufacturers as well as the builders. Don’t be afraid to ask for discounts and support in exchange for recognition on social media, at shows, etc during and after the build. Speaking as a manufacturer and enthusiast, I can tell you we are always willing to offer discounts for QuickTrick family in exchange for some social media and recognition. (You can email us when you are ready to start your project and we will back that statement up. Just email me directly at [email protected] )

Now, to top all of that mind boggling info off from above, here is a basic checklist that we hope will help on your journey.

RESTORATION-CHECKLIST

If there are other topics you would like to see, just email us at the same email above and we will see what we can do. We always learn new things when helping others learn something new. If you think we should add something to the list below, PLEASE, share so we can help others.

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Project Plan Template for Car Restoration

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

• Manage tasks and resources efficiently
• Set milestones for each stage of the project
• Easily track progress so that nothing gets missed

Benefits of a Car Restoration Project Plan Template

• Helps you keep track of all the steps involved in the project
• Makes sure you have all the materials you need before starting work
• Provides detailed instructions on how to complete each step of the project
• Prevents mistakes from being made and leads to a better-looking end result

Main Elements of a Project Plan Template for Car Restoration

• Project kickoff meeting
• Master plan/schedule
• Crew roster
• Parts and materials acquisition
• Car restoration process

How to Use a Car Restoration Project Plan Template

1. gather your materials., 2. estimate costs., 3. outline tasks & timeline., 4. set up reporting structure., related project plan templates.

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Car Customization & Modification Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Automotive Sector

Are you about starting a car modification company ? If YES, here is a complete sample car customization business plan template & feasibility report you can use for FREE .

A car customization and modification business could be a fun and profitable business for someone who is interested in the automobile industry. With the right location, top-notch services and good marketing, you can serve several customers that require the interior and exterior of their automobiles to be customized to fit into their style or the brand they represent.

Please note that starting a car customization and modification business also needs a significant investment capital, solid planning and concentration to detail in order to keep your business profitable. Below is a sample car customization and modification business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Car Customization & Modification Business Plan Template

1. industry overview.

In the united states of America and even all over the world, the car customization and modification line of business accommodates highly skilled auto mechanics who have what it takes to give their customers far beyond what they are expecting; it is indeed a highly creative industry.

Car customization and modification garages engage in customizing and modifying cars by altering some parts or the whole car to improve its performance, often they alter or replace the engine and transmission and also they work on the body and sound system.

A customized car may be a personal “styling” statement, making the car look unlike any car delivered from the factory. A car customization and modification engineer may adopt the visual and performance characteristics of some relevant modification styles, and combine these as requested by the client.

The car customization and modification business is indeed a growing and profitable business. Statistics has it that household customers account for the largest share of car customization and modification revenue at approximately 76 percent.

Car customization and modification household customers are broadly defined as consumers that have a driver’s license, own a car, and are older than 16 years of age. This demographic is further segmented by income brackets, with households in the highest division representing the greatest demand for car customization and modification services.

Business customers contribute 22% of industry revenue. Revenue from this segment is largely derived from celebrity managers. Slower economic activity during the recession led to fewer businesses using vehicles to conduct shows, however a resumption of economic growth since 2010, has seen this segment strengthen.

Government customers comprise approximately 2% of the car customization and modification revenue. This segment includes federal, state, and local government organizations.

The car customization and modification line of business will continue to experience growth in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al. As a matter of fact, there are no companies with a leading market share in the industry.

Statistics has it that in the United States of America alone, there are about 61,332 licensed and registered car customization and modification businesses responsible for employing about 194,594 employees and the industry rakes in a whooping sum of $9bn annually with an annual growth rate projected at 2.7 percent.

Over and above, car customization and modification businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

Jolly Bosco® Car Customization & Modification Garage, LLC is a registered car customization and modification company that will be located in Fort Lauderdale, Florida – United States of America and we plan to also cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Miami Beach, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We chose to operate in these cities because we know that our car customization and modification services will be in high demand due to the growing number of automobile owners in these cities. Jolly Bosco® Car Customization & Modification Garage, LLC is located in a full-service automobile garage.

We will offer standard car customization and modification services that produce a pristine level of detail; it involves cleaning and restoring the surface of the car’s finish, chrome trim, windows, wheels, and tires, as well as other visible components on the exterior and of course interior of a vehicle.

We are well trained and equipped to service the market segments that require car customization and modification services for their automobiles.

Although our intention of starting a Jolly Bosco® Car Customization & Modification Garage, LLC is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

We will offer both in-station and off station services. Our customers will have the option of choosing from our different packages – we have the plans to serve both individual clients (households) and corporate clients (celebrities), which is why we designed various packages.

At Jolly Bosco® Car Customization & Modification Garage, LLC we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own car customization and modification business; we are in the industry to make a positive mark.

We are quite optimistic that our values and quality service offering will help us drive our car customization and modification business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We will be dedicated to establishing good business relationship with our clients while giving them value for their money and reasons for them to hire our services over and over again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in the car customization and modification line of business.

Our excellent customer service will position us to always welcome repeated customers and handle massive deals from both branding agencies and managers of celebrities.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Jolly Bosco® Car Customization & Modification Garage, LLC is owned and managed by Jolly Bosco and his immediate family members. He is a notable figure in the automobile industry in Florida. Aside from this new car customization and modification business, the family owns an automobile dealership business and also auto repair workshop in Florida.

3. Our Products and Services

Jolly Bosco® Car Customization & Modification Garage, LLC is a standard and well – equipped car customization and modification company that offers a wide range of services that revolves around interior and exterior of cars. We intend giving our customers every reason to always hire our services which is why we have customized our services.

4. Our Mission and Vision Statement

• Our Vision is to become the number one car customization and modification company in the whole of Florida with active presence in major cities in the United States of America and Canada.
• Our mission as a car customization and modification company is to develop a highly successful, profitable, all – round car customization and modification business which provides quality services in our community and to become the standard for an ideal car customization and modification business not only in the State of Florida but also throughout the United States of America.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our car customization and modification company on the right business foundation.

As a matter of fact, we are set to build a car customization and modification business that will be a standard for the car customization and modification line of business in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on autopilot. The success of our car customization and modification business will be anchored on the team not on any individual.

With the wide range of our service offerings, we are expected to employ more than is required to run a conventional car customization and modification business. Jolly Bosco® Car Customization & Modification Garage, LLC will employ professionals and skilled people to occupy the following position;

• Manager (Owner)

Accountant/Cashier

Marketing and Sales Executive

Client Service Executive

• Car Customization and Modification Mechanic

5. Job Roles and Responsibilities

Manager (Owner):

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals and payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities in the organization
• Prepares budget and reports for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Regularly hold meetings with key stakeholders (clients and member of the board) to review the effectiveness of the business Policies, Procedures and Processes
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily activities of organization

Car Customization and Modification Mechanics (6):

• Handles car customization, modification and restoration
• Responsible for giving quotation on the cost and materials needed to customize and modify a car
• Handles any other duty as assigned by the manager
• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents Jolly Bosco® Car Customization & Modification Garage, LLC in strategic meetings
• Helps increase sales and growth for Jolly Bosco® Car Customization & Modification Garage, LLC.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for the organization
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Jolly Bosco® Car Customization & Modification Garage, LLC.
• Serves as internal auditor for Jolly Bosco® Car Customization & Modification Garage, LLC
• Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via email and phone calls for the organization
• Distributes mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Car customization and modification business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard car customization and modification business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.

Ordinarily we can successfully run a normal car customization and modification business without the stress of writing a business plan, but because of the nature of the kind of car customization and modification business we want to establish, we don’t have any option other than to follow due process.

We hired the services of Mr. Levi Kastrup, a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Jolly Bosco® Car Customization & Modification Garage, LLC;

Jolly Bosco® Car Customization & Modification Garage, LLC is centrally located in a densely populated industrial and residential estate in Fort Lauderdale, Florida; our location is in fact one of our major strengths.

We have state of the art equipment and tools and we are also one of the very few car customization and modification companies in the whole of Fort Lauderdale – Florida that offers a wide range of services for both Japanese and American cars.

Another strength that counts for us is the power of our team; our workforce and management. We have a team of experts in the car customization and modification line of business, a team of hardworking, highly creative and dedicated individuals.

Jolly Bosco® Car Customization & Modification Garage, LLC is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are aware that it will take time for us to build trust with our clients.

• Opportunities:

We are centrally located in one of the busiest areas in Fort Lauderdale, Florida and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the car customization and modification line of business.

The truth is that there are no standard and well – equipped car customization and modification garage within the area where ours is going to be located; the closest car customization and modification company to our proposed location is about 6 miles away. In a nutshell, we do not have any direct competition within our target market area.

Some of the threats that are likely going to confront Jolly Bosco® Car Customization & Modification Garage, LLC are unfavorable government policies , seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

The market for car customization and modification services is driven by the purchase of cars and the increase in consumer spending – in essence, as the general economy of a country grows, more people will buy cars and more people will patronize the services of car customization and modification businesses especially if their driving habits encourage them to do so.

In the recent past, many cars were modified by adding extra carburetors, high compression heads, and dual exhaust. Engine swaps were often done, the object of which was to put the most powerful engine in the lightest possible frame and body combination.

Car customization and modification businesses respond to the increase in household spending and also increase in the volume of cars in a particular area or city. The trend of the market can be predicted without stress.

The trend in the car customization and modification line of business is that most companies in a bid to survive the recent global economic meltdown included additional services to their core service offerings. It is much easier for car customization and modification companies to increase their revenues by diversifying as against increasing the scope of their market.

8. Our Target Market

Before choosing a location for our car customization and modification business, we conducted a feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically, those who will benefit from our service offerings are car owners, branding agencies and celebrities.

Our Competitive Advantage

Car customization and modification business is a highly creative industry. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Fort Lauderdale – Florida. Our competitive edge is that we are a well – equipped car customization and modification business that has loads of complimentary business offerings that can easily assist us in attracting car owners within the radius of our garage.

We can confidently say that the location of our car customization and modification garage will definitely count as a positive for us amongst any competitor that might start a car customization and modification business in same location where ours is located.

For the time being, Jolly Bosco® Car Customization & Modification Garage, LLC has no real competitors that can match the quality of service we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Jolly Bosco® Car Customization & Modification Garage, LLC is established with the aim of maximizing profits in the car customization and modification line of business and we are going to go all the way out to ensure that we do all it takes to attract clients on a regular basis.

Jolly Bosco® Car Customization & Modification Garage, LLC will generate income by offering the following services: car customization, modification, restoration, and finishing. We are also open to generate income from other related services as long as it falls within the scope of the industry we are operating in.

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individual clients who would need the services of car customization and modification services.

We are well positioned to take on the available market in Fort Lauderdale – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from our first six months of operation and grow our car customization and modification business and our clientele base.

We have been able to critically examine the car customization and modification market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Fort Lauderdale – Florida.

Below is the sales projection for Jolly Bosco® Car Customization & Modification Garage, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;

• First Year: $350,000
• Second Year: $950,000
• Third Year: $750,000

N.B : This projection is done based on what is obtainable in the car customization and modification line of business and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Jolly Bosco® Car Customization & Modification Garage, LLC is going to be driven basically by unique finishing, excellent customer service and quality service delivery. We will ensure that we build a loyal customer base.

We want to drive sales via the output of our jobs and via referrals from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like car customization and modification services.

Jolly Bosco® Car Customization & Modification Garage, LLC is a car customization and modification business that is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible to our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Jolly Bosco® Car Customization & Modification Garage, LLC.

Our goal is to grow Jolly Bosco® Car Customization & Modification Garage, LLC to become the leading car customization and modification company in Fort Lauderdale – Florida which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the car customization and modification industry.

Jolly Bosco® Car Customization & Modification Garage, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our car customization and modification business by sending introductory letters alongside our brochure to corporate organizations, branding companies, households and key stake holders in Fort Lauderdale – Florida
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like bars, night clubs, libraries, and local coffee shops et al
• Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our customized services
• Advertise our car customization and modification company in relevant auto magazines, newspapers, TV and radio stations
• Attend relevant expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied students
• Join local chambers of commerce and industry to market our services

11. Publicity and Advertising Strategy

Jolly Bosco® Car Customization & Modification Garage, LLC is set to create a standard for car customization and modification businesses in Fort Lauderdale – Florida and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business.

Good enough there is no hard and fast rule on how to advertise or promote a car customization and modification business. The challenge is that most car customization and modification companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our car customization and modification business. Here are the platforms we intend leveraging on to promote and advertise Jolly Bosco® Car Customization & Modification Garage, LLC;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our car customization and modification business in relevant magazines, local newspaper, local TV and local radio stations
• Promote our business online via our official website
• List our business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards on strategic locations in and around Fort Lauderdale – Florida
• Direct coupon mailing approach
• Engage in roadshows from time to time in target communities
• Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the car customization and modification line of business, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Fort Lauderdale – Florida.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.

• Payment Options

The payment policy adopted by Jolly Bosco® Car Customization & Modification Garage, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Jolly Bosco® Car Customization & Modification Garage, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.

13. Startup Expenditure (Budget)

We have been able to pull together cash that will be enough for us to successfully launch a standard car customization and modification company in Fort Lauderdale – Florida US. These are the key areas where we will spend our startup capital on;

• The Total Fee for Registering the Business in Fort Lauderdale – Florida – $750
• Legal expenses for obtaining licenses and permits – $1,500
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• Cost for hiring Business Consultant – $2,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing standard warehouse facility- $100,000
• Cost for facility remodeling – $10,000
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for startup inventory – $15,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost for car modification equipment – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• Cost for the purchase of utility truck – $15,000
• The cost for our grand opening party – $1,500
• Miscellaneous: $10,000

We would need an estimate of three hundred and fifty thousand US dollars ( $350,000 ) to successfully launch our car customization and modification business in Fort Lauderdale – Florida US. Please note that this amount includes the salaries of all our staff members within 3 months of operations.

Generating Startup Capital for Jolly Bosco® Car Customization & Modification Garage, LLC

Jolly Bosco® Car Customization & Modification Garage, LLC is a business that will be owned and managed by Jolly Bosco and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Jolly Bosco® Car Customization & Modification Garage, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent and unique car customization and modification services at pocket friendly rates.

At Jolly Bosco® Car Customization & Modification Garage, LLC, we will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed tool box and equipment, electronic appliances, office appliances and bar accessories: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress

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Car Rental Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful car rental. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your car rental’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a car rental business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your car rental concept into reality. Let’s dive in!

Our car rental business plan is designed to provide a detailed roadmap for establishing and scaling our car rental service. This plan covers key areas essential for a robust business strategy, including operational procedures, marketing strategies, analysis of the market environment and competitors, organizational structure, and financial projections.

• Executive Summary : Offers an overview of your car rental business concept, market analysis , management, and financial strategy.
• Car Rental Facility & Location: Describes the operational aspects of your car rental service, including fleet management, vehicle maintenance, and the strategic importance of your location(s) for accessibility and customer convenience.
• Fleet & Rates: Lists the types of vehicles and rental services offered, including any special packages (e.g., insurance, GPS, luxury vehicle options), along with a clear pricing structure .
• Key Stats: Shares industry size , growth trends, and relevant statistics for the car rental market.
• Key Trends: Highlights recent trends in the car rental industry, such as the impact of technology on bookings and vehicle management, and the shift towards eco-friendly vehicles.
• Key Competitors : Analyzes main competitors in your area and differentiates your service in terms of vehicle range, customer service, and pricing.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis specific to your car rental business.
• Marketing Plan : Details strategies for promoting your car rental service, including digital marketing, partnerships, and loyalty programs.
• Timeline : Key milestones and objectives from launch through the first year of operation, such as fleet expansion, service diversification, and market penetration goals.
• Management: Information on who manages the car rental service and their roles, emphasizing experience in the automotive or service industry.
• Financial Plan: Projects the car rental service’s 5-year financial performance, including revenue streams (daily rentals, long-term leases, additional services), profit margins, and significant expenses (vehicle acquisition, maintenance, staffing).

Car Rental Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary presents a brief overview of your car rental business plan, highlighting the core aspects of your operation. It should elaborate on your market positioning, detailing the variety of vehicles and rental services you offer, its prime location, fleet size, and an overview of daily operations.

This section must also delve into how your car rental service will integrate into the local market, including an analysis of direct competitors in the vicinity, identifying who they are, along with your business’s unique selling propositions that set it apart from these competitors.

Additionally, information regarding the management and founding team should be included, specifying their roles and how they contribute to the success of the car rental business. A summary of financial projections, including expected revenue and profits over the next five years, should also be presented here to provide a clear picture of your business’s financial outlook.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Car Rental, the Business Overview section can be efficiently organized into 2 main parts:

Car Rental Facility & Location

Describe the car rental fleet, focusing on the variety and quality of vehicles available for rent, including economy cars, SUVs, luxury vehicles, and any specialty vehicles such as electric or hybrid models. Also, Highlight the rental location’s features, emphasizing its strategic positioning for ease of access, such as proximity to airports, major transit hubs, or tourist attractions. Discuss why this location benefits your business in attracting your target customers , including tourists, business travelers, or locals needing temporary transportation.

Fleet & Rates

Detail the range of rental services offered, from short-term daily rentals to long-term leasing options. Include any specialized services like one-way rentals, vehicle delivery and pickup, or international booking capabilities. Outline your pricing structure, ensuring it is competitive yet reflects the value and quality of your fleet and services. Additionally, Emphasize any unique offerings, such as flexible rental periods, comprehensive insurance options, or loyalty programs, to encourage repeat business and enhance customer loyalty.

Make sure to cover here _ Car Rental Facility & Location _ Fleet & Rates

Market Overview

Industry size & growth.

In the Market Overview of your car rental business plan, begin by evaluating the size of the car rental industry and its growth prospects. This analysis is essential to comprehend the market’s extent and pinpoint opportunities for expansion.

Key Market Trends

Next, explore recent trends within the market, such as the increasing demand for flexible transportation solutions, the growth of car-sharing and ride-hailing services, and the shift towards electric and hybrid vehicles. Highlight the need for services that offer convenience, such as online booking and diverse rental options, as well as the growing consumer interest in environmentally friendly transportation alternatives.

Key Competitors

Finally, assess the competitive landscape, which ranges from large multinational chains to local independent rental agencies, as well as alternative transportation services like ride-sharing apps. Focus on what sets your car rental service apart, whether it’s through superior customer experience, a wide range of vehicle options, or niche services like luxury or eco-friendly vehicles. This section will help outline the demand for car rental services, the competitive environment, and how your business is poised to succeed in this evolving market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, perform a SWOT analysis for the car rental , identifying Strengths (such as a diverse fleet of vehicles and convenient location), Weaknesses (including potential high maintenance costs or the impact of seasonal demand fluctuations), Opportunities (for instance, the growing trend in eco-tourism driving demand for electric vehicle rentals), and Threats (like changes in regulatory environments or economic downturns affecting travel budgets).

Marketing Plan

Then, devise a marketing strategy that outlines methods to attract and retain customers through strategic advertising campaigns, competitive pricing models, a strong online presence, and partnerships with travel agencies and local businesses.

Lastly, establish a comprehensive timeline detailing key milestones for the car rental’s launch, marketing initiatives, customer base development, and growth plans, ensuring the business progresses with clear goals and objectives.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The management section focuses on the car rental’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the car rental towards its financial and operational goals.

For your car rental business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your car rental’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your car rental business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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