business plan for automotive shop

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 .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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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Auto Repair Business Plan

Written by Dave Lavinsky

You’ve come to the right place to create your Auto Repair shop business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Auto Repair shops.

Auto Repair Business Plan Example

Below is a template to help you create each section of your Automotive Repair business plan.

Executive Summary

Business overview.

Tim’s Timely Auto Repair is a startup auto repair shop located in St. Louis, Missouri. The Company is founded by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge on how to manage an auto repair shop during the past 15 years while working at Fast Cars Auto Repair. Now that Tim has experienced managing an auto repair shop, he is ready to start his own company, Tim’s Timely Auto Repair. Tim is confident that his auto repair skills, combined with his understanding of business management, will enable him to run a profitable auto repair shop of his own. Tim is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of auto repair shop operations – sales and marketing, customer service, and financial reporting.

Tim’s Timely Auto Repair will provide reliable auto repair services for customers in the St. Louis area. Tim’s Timely will be the go-to auto repair shop in St. Louis for convenient scheduling, quality work, and timely repairs. The Company will be the ultimate choice for busy individuals, providing the best customer service in the area.

Product Offering

Auto Repair will provide the following repair services for most vehicle makes and models:

• Brake repair
• Powertrain repair
• Muffler & exhaust repair
• Heating repair
• Electrical system repair
• Wheel alignment and repair
• Preventative repair & maintenance

Customer Focus

Tim’s Timely Auto Repair will target personal vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results.

Management Team

Tim’s Timely Auto Repair will be owned and operated by Tim Martinez. Tim is a graduate of Missouri University with a Bachelor’s degree in Automotive Technology. He has 15 years of experience working as an auto repair technician and manager of another local shop. Tim will be the Company’s CEO and the Head Auto Repair Technician. He will oversee the day-to-day operations, auto repair equipment management, and auto technician staff’s activities.

Tim has recruited his former administrative assistant, Jen Jackson, to be the Company’s Chief Operations Officer and help oversee the auto repair shop’s daily operations and customer relations. Jen has a Master’s degree in Business Administration. She has worked in the auto repair industry for many years and understands what it takes to effectively run this type of business.

Success Factors

Tim’s Timely Auto Repair will be able to achieve success by offering the following competitive advantages:

• Skilled team of auto repair technicians who will be able to diagnose and repair a wide variety of vehicle issues in a timely manner.
• Tim’s Timely Auto Repair makes it easy for customers to schedule appointments, pay for service, and check on the status of their vehicle through a user-friendly customer app.
• The Company offers competitive pricing and discounts for regular customers.

Financial Highlights

Tim’s Timely Auto Repair is seeking $250,000 in debt financing to launch its auto repair business. The funding will be dedicated towards securing the auto repair shop and purchasing auto repair equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Auto repair shop build-out: $100,000
• Equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, utilities): $90,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Tim’s Timely Auto Repair.

Company Overview

Who is tim’s timely auto repair.

Tim’s Timely Auto Repair is a newly established auto repair business in St. Louis, Missouri. Tim’s Timely will be the first choice for vehicle owners in St. Louis and the surrounding communities for its reliable and timely repair services. The Company is able to service almost any vehicle make and model and has the ability to accommodate customers’ busy schedules.

Tim’s Timely Auto Repair will be able to guarantee the quality of its repairs thanks to the latest and most reliable auto repair equipment and technology combined with stringent quality control standards. The Company’s team of highly qualified professionals experienced in a wide range of automotive issues will be able to provide timely diagnosis and repair. Customers can easily schedule appointments, check on their vehicle, and make payments using the Company’s customer app.

Tim’s Timely Auto Repair History

Tim’s Timely Auto Repair is owned and operated by Tim Martinez, an experienced auto mechanic who has gained valuable knowledge during his 15 year tenure working as an auto repair technician and manager at another local auto repair shop. Now that Tim has gained the experience and knowledge of how to manage an auto repair shop, he is ready to start one of his own. Tim has begun recruiting a team of highly qualified professionals to help manage the day to day complexities of running an auto repair shop – sales and marketing, customer service, and financial reporting.

Since incorporation, Tim’s Timely Auto Repair has achieved the following milestones:

• Registered Tim’s Timely Auto Repair, LLC to transact business in the state of Missouri.
• Has begun negotiations to purchase the warehouse that will become the shop.
• Reached out to numerous contacts to include past customers, local businesses, and friends and family members to start spreading the word about the new shop.
• Began recruiting a staff of accountants, auto repair technicians, maintenance workers, and sales personnel to work at Tim’s Timely Auto Repair.

Tim’s Timely Auto Repair Services

Industry analysis.

The United States auto repair market is valued at $78B with approximately 280,000 businesses in operation and over 614,000 employees working in the industry across the country. The auto repair industry has grown steadily over the past five years. Much of this growth can be attributed to more vehicles on the road combined with an increasing age of the vehicles in service. Additionally, rising disposable incomes have led to more people foregoing DIY repairs, and instead, taking their vehicles to industry operators when they need to be repaired.

One of the biggest challenges facing the auto repair industry is the growing shortage of technicians as many are retiring and there are not enough new technicians joining the field to fill the vacancies. Additional challenges include increased digitization and evolving technologies. Industry operators will need to keep up with the latest innovations to remain competitive.

Customer Analysis

Demographic profile of target market.

Tim’s Timely Auto Repair will target vehicle owners in St. Louis. The Company will also target small businesses who use a vehicle for their company’s operations such as delivery drivers, plumbers, and other mobile businesses. No matter the customer, Tim’s Timely Auto Repair will deliver the best communication, service, and results..

The precise demographics for St. Louis, Missouri are:

Customer Segmentation

Tim’s Timely will primarily target the following customer profiles:

• Individual vehicle owners
• Delivery drivers
• Mobile service providers who use vehicles for their business operations (e.g., plumbers, HVAC, mobile pet grooming, non-emergency medical transport, solar panel installers, etc.)

Competitive Analysis

Direct and indirect competitors.

Tim’s Timely Auto Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

Fast Cars Auto Repair

Established in 1975, Fast Cars Auto Repair is one of the largest auto repair companies in Missouri. The company provides a wide range of repair and maintenance services for many vehicle makes and models, with a focus on sports cars, luxury cars, and race cars. Fast Cars Auto Repair’s leadership team continuously introduces new technology and repair training for its staff to ensure all technicians are equipped to repair the latest model vehicles. The company has four locations in St. Louis, with more being built in the near future.

JP’s Affordable Auto Repair

JP’s Affordable Auto Repair is a small auto repair shop catering to local vehicle owners in St. Louis, Missouri and surrounding areas. JP’s Affordable Auto Repair provides efficient service at affordable prices. The company provides same day and 48-hour repairs for an extra fee. The owners of JP’s Affordable Auto Repair have been in the automotive business for over 40 years, so they keenly understand the ins-and-outs of running an auto repair shop.

Dependable Dan’s Auto Repair

Dependable Dan’s Auto Repair is a trusted St. Louis, Missouri-based auto repair shop that provides superior service to vehicle owners in St. Louis and the surrounding areas. The company is able to provide a wide variety of repair services for both personal and commercial vehicles. Dependable Dan’s Auto Repair has been family owned and operated since 1999. The company prides itself on being the number one choice for quality auto repair services at competitive prices.

Competitive Advantage

Tim’s Timely Auto Repair will be able to offer the following advantages over the competition:

• Skilled team of auto repair technicians who are highly skilled and trained in a wide variety of vehicle issues to provide reliable results for almost any make or model.
• Tim’s Timely Auto Repair makes it easy for customers to obtain the Company’s services. Customers can schedule appointments, check on their vehicle, and make payments through the convenience of the customer app.

Marketing Plan

Brand & value proposition.

Tim’s Timely Auto Repair will offer the unique value proposition to its clientele:

• Tim’s Timely Auto Repair provides reliable results in a timely manner for most vehicle makes and models.

Promotions Strategy

The promotions strategy for Tim’s Timely Auto Repair is as follows:

Social Media Marketing

The Company will enlist the help of a marketing director to create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube.  The marketing director will ensure Tim’s Timely maintains an active social media presence with regular updates and informative content.

Professional Associations and Networking

Tim’s Timely Auto Repair will become a member of professional associations such as the Automotive Service Association, Auto Care Association, National Automobile Dealers Association, and the International Automotive Technicians Network. The leadership team will focus their networking efforts on expanding the Company’s customer network.

Print Advertising

Tim’s Timely Auto Repair will invest in professionally designed print ads to display in programs or flyers at industry networking events. The Company will also send direct mailers to local businesses who may be interested in auto repair services.

Publications

The Company will invest in advertisements in major industry publications such as Auto Body Repair News Magazine, Auto Inc., and Auto Service Professional publications. Additionally, the Company will invest in local advertising through newspapers, magazines, and community newsletters.

Website/SEO Marketing

Tim’s Timely Auto Repair will create a company website. The website will be well organized, informative, and list all the services that Tim’s Timely is able to provide. The Company’s marketing director will also manage the Company’s website presence with SEO marketing tactics so that when someone types in a search engine “St. Louis auto repair shop” or “auto repair shop near me”, Tim’s Timely Auto Repair will be listed at the top of the search results.

The pricing of Tim’s Timely Auto Repair will be moderate and on par with competitors so customers feel they receive value when purchasing the Company’s superior repair services.

Operations Plan

The following will be the operations plan for Tim’s Timely Auto Repair.

Operation Functions:

• Tim Martinez will be the CEO and Head Auto Repair Technician. He will oversee the auto repair technicians, repair process, and the auto repair equipment maintenance. Tim has spent the past year recruiting the following staff:
• Jen Jackson – Chief Operating Officer who will manage the bookkeeping, customer relationships, and help oversee the daily operations for the Company.
• Andrea Miller – Accountant who will provide all accounting, tax payments, and monthly financial reporting.
• Bill Smith – Marketing Director who will oversee all marketing strategies for the Company and manage the website, social media, and outreach.

Milestones:

Tim’s Timely Auto Repair will have the following milestones complete in the next six months.

11/1/2022 – Finalize contract to purchase property.

11/15/2022 – Finalize personnel and staff employment contracts for the Tim’s Timely Auto Repair management team.

12/1/2022 – Begin build-out of the shop and purchase equipment and supplies.

12/15/2022 – Begin networking at industry events and implement the marketing plan.

1/15/2023 – Finalize contracts for auto repair technicians.

2/15/2023 – Tim’s Timely Auto Repair officially opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Tim’s Timely Auto Repair are the fees charged to customers in exchange for the Company’s auto repair services.

The cost drivers will be the overhead costs required in order to staff an auto repair shop. The expenses will be the payroll cost, utilities, auto repair equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of vehicles serviced per month: 450
• Average fees per month: $15,000
• Overhead costs per year: $140,000

Financial Projections

Income statement, balance sheet, cash flow statement, auto repair business plan faqs, what is an auto repair business plan.

An auto repair  business plan is a plan to start and/or grow your auto repair company business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your auto repair  business plan using our Auto Repair  Business Plan Template here .

What are the Main Types of Auto Repair Companies?

There are a number of different kinds of auto repair companies , some examples include: Auto Service Shop, Transmission Repair Shop, and Body Repair Shop.

How Do You Get Funding for Your Auto Repair Business Plan?

Auto repair companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. A thorough  business plan for auto repair shop will show investors you are well-prepared to start a business on your own.

Auto Repair Business Plan Template

Written by Dave Lavinsky

Auto Repair Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their auto repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an auto repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Auto Repair Business Plan?

A business plan provides a snapshot of your auto repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Auto Repair Business

If you’re looking to start an auto repair business, or grow your existing auto repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your auto repair business in order to improve your chances of success. Your auto repair business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Auto Repair Businesses

With regards to funding, the main sources of funding for an auto repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for an auto repair business.

Finish Your Business Plan Today!

If you want to start an auto repair business or expand your current one, you need a business plan. Below are links to each section of your auto repair business plan template:

Executive Summary

Your executive summary provides an introduction to your mechanic shop business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair business you are operating and the status. For example, are you a startup, do you have an auto repair business that you would like to grow, or are you operating a chain of auto repair businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the auto repair industry. Discuss the type of auto repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of auto repair business you are operating.

For example, you might operate one of the following types of auto repair businesses:

• Auto Service Shop : this type of auto repair business focuses on routine servicing of cars and trucks, such as oil changes and tire rotation.
• Transmission Repair Shop: this type of business focuses on maintenancing, diagnosing and repairing transmissions in all types of cars.
• Body Repair Shop: this type of repair shop focuses on repairing damage to the body of a vehicle, primarily cosmetic damage due to collision.

In addition to explaining the type of auto repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, amount of monthly revenue, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the auto repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the auto repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your automotive business plan:

• How big is the auto repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your auto repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mechanic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: car owners, truck owners, luxury vehicle owners, classic vehicle owners, and businesses that own vehicles such as car rentals, car dealers, delivery businesses, and repairmen.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of auto repair business you operate. Clearly, luxury vehicle owners would respond to different marketing promotions than truck owners, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most auto repair businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other auto repair businesses.

Indirect competitors are other options that customers have to choose from that aren’t direct competitors. This includes auto parts stores (for DIY repair). You need to mention such competition as well.

With regards to direct competition, you want to describe the other auto repair businesses with which you compete. Most likely, your direct competitors will be auto repairs located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of vehicles do they maintenance and repair, or what types of maintenance and repairs do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better maintenance and repair services?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a car service business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of auto repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to auto repair, will you provide car rental services, repair financing or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your auto repair company. Document your location and mention how the location will impact your success. For example, is your auto repair business located in a busy retail district, industrial area, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your auto repair marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your auto repair business, including speaking with vehicle owners in person or on the phone, maintenancing and repairing vehicles.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 50th car, or when you hope to reach $X in revenue. It could also be when you expect to expand your auto repair business to a new city.  

Management Team

To demonstrate your auto repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing auto repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing auto repair shops or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many cars will you repair per week? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your auto repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an auto repair business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your shop location lease or descriptions of repairs you are working on.   Summary Putting together a business plan for your auto repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the auto repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful auto repair business.  

Auto Repair Business Plan FAQs

What is the easiest way to complete my auto repair shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Auto Repair Shop Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of auto repair shop you are operating and the status; for example, are you a startup, do you have an auto repair shop that you would like to grow, or are you operating a chain of auto repair shops?

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you. Other Helpful Business Plan Articles & Templates

Complete Guide on Auto Repair Shop Business Plan (2023)

Table of Contents

Success in the auto repair business starts with a good plan. Your shop’s future depends on it. One mistake can be a big problem. That’s why you need to make sure you have everything in place for a successful auto repair business.

In this blog, we’ll help you create a strong business plan for an auto repair shop, whether you’re starting out or already have a shop. We’ll also give you a business plan sample for an auto repair shop that you can use. 

Let’s get started!”

Looking to expand your auto repair shop? Schedule a demo now.

What is an auto repair shop business plan? 

An auto repair shop business plan is like a roadmap for your car repair business. It’s a document that explains your business idea to potential investors or partners.

Imagine you’re planning a long road trip. 

Before you start, you make a detailed plan with the places you want to visit, the things you want to do, and the route you’ll take. 

Similarly, an auto repair shop business plan is like that plan for your car repair business. It’s a written guide that outlines what your business wants to achieve, how it will do it, and why it’s a good idea. 

You use this plan to show to others, like investors, so they understand your business and may want to be part of it. It’s like the master plan for your car repair adventure!

Why you need a business plan for auto repair shop: 

You will understand your business better:.

• Your business plan is your GPS. It gives you a clear route to your goals.
• Identify and tackle obstacles with confidence by sticking to your plan.
• It’s your guide for financing, hiring, operations, and branding.

It will give you a Smooth Driving:

• Prevent hiccups by investing wisely.
• Your business plan helps you choose the right people, processes, technology, and marketing.
• Ensure your investments align with your long-term goals.

Make your business sustainable: 

• Map out a sustainable and viable business model.
• Secure funding, plan expansion, and achieve growth milestones.

It will give you Clear Path:

• Engage in a regular enjoyable activity.
• Form habits that help you focus and organize thoughts.
• Find solitude to regain focus on business goals.
• Personalize your approach for clarity and success.

Creating an auto repair shop business plan: 

Understanding the basics.

It is important that you first clever the basics before you create a business plan. 

For that, you need to understand the type of your business. There are many types of business such as startup business plan, internal business plan, and strategies plan.

For an auto body repair shop business plan, you need to form some key elements in your company such as market, company description, sales strategies, management, product/service, fundings, financial projections. Etc. 

Company Description: 

This chapter is the heart of your business plan. Here you will tell your story. Why do you want to start an auto repair business? What is the mission behind it? You will explain your services. 

This is your chance to give a unique identity to your repair shop. This can help you gain competitive advantage. Let’s discuss these things one by one: 

Overview: 

Give your readers a sense of what your auto repair shop is all about. You can tell the essence of your shop here. You need to discuss the history of your business, founders; story, and company culture, 

Mission Statement: 

Articulate the core purpose of your business – what it aims to achieve and how it serves its customers or clients.

Vision Statement: 

Describe the future you envision for your company. What impact do you want to have on your industry, community, or the world?

Products or Services

Now discuss what you are offering. Describe your services that show a unique value proposition. It is important that it is relevant to your auto repair customers. 

Market Positioning

Marketing and branding is very important to have a successful auto repair business. Focusing on market positioning is crucial. You need to touch on points like target audience, competitive advantage and market niche. 

Short-Term Goals: 

These could include milestones like launching a new product, reaching a specific revenue target, or expanding your customer base.

Long-Term Goals: 

Detail your overarching aspirations, such as becoming an industry leader, expanding globally, or achieving a certain level of market share.

Market Analysis

You need to know what you are dealing with on a daily basis. 

What do your ideal customers want? What is trending in the market? How can you attract more and more customers? 

For this, you need to have a comprehensive knowledge of the auto repair market. There are three things you need to cover: 

Target Market: 

Understand your audience. Check out the following things in your customers: 

• Income level 
• Values 
• Lifestyles 
• Purchasing behaviors

Address the market needs: 

You need to find out the needs of your market. Identify the pain points of your customers.

Pro tip: you can conduct surveys or focus groups to find out the pain points of your target audience. 

After finding out the paint points, come up with unique selling point that covers the needs of your market. Clearly articulate how your products or services stand out and provide distinct advantages over competitors.

Analyzing the Competitive Landscape: 

In every market, competition is a reality. By analyzing your competitors, you gain insights into their strengths, weaknesses, and strategies. Find out direct competitors that offer similar services. 

After finding your competitors, you can set your business apart by offering better services from them. 

Market Size and Growth Potential

Assessing the overall market size and growth potential provides a snapshot of the opportunity at hand. It helps you understand the scope of your market and whether it’s expanding or contracting.

Industry Trends: 

Now you need to collect data related to auto repair shops. This can help you in finding industry trends. Find out the merging technologies that you can use in your shop. 

Marketing and Sales Strategies

Now we know our services and market for the auto repair shop. But how are we gonna sell our service to the market

That’s here, you need marketing strategies for your auto repair shops. Follow the following steps to define your strategies: 

• Identify the platforms you’ll use to reach your audience. 
• Craft a consistent and compelling message that resonates with your target audience.
• Plan the creation and distribution of valuable content that educates, entertains, or solves problems for your audience. 
• Detail how you’ll guide potential customers through the sales journey, from initial contact to making a purchase.
• Explain how you’ll attract potential customers.
• Describe how you’ll build relationships with leads over time. 
• Outline the steps you’ll take to convert leads into paying customers. 
• Allocate funds to different marketing strategies
• Explain how you’ll measure the effectiveness of your marketing and sales efforts.
• Identify the KPIs you’ll monitor, such as website traffic, conversion rates, click-through rates, and customer acquisition cost.

Organization and Management

Now, you need to discuss the management of your auto repair shop. Highlighting key team members and explaining their roles adds depth and credibility to your business plan.you can discuss the following things: 

• Organizational Structure
• Hierarchical Chart.
• Functional Divisions
• Key Management Team
• Founder(s) and CEO
• Executive Team Members
• Responsibilities and Roles
• Founder’s Role
• Key Executives’ Roles
• Team Strengths and Expertise
• Relevant Experience
• Growth Plans
• Recruitment Strategy

Product or Service Line

In this chapter, you’ll provide a thorough exploration of your products or services. You can discuss the following things: 

• Introduction to Your Offerings
• Detailed Description
• Development and Design
• Intellectual Property
• Product Life Cycle
• Future Development
• Visuals and Media
• Customer Testimonials and Case Studies
• Pricing Strategy
• Regulatory and Compliance
• Sustainability and Ethics

Financial Projections

In this chapter, you will do a proper financial analysis. You will discuss the financial dynamics of your business. 

1. Profit and Loss: 

In this, you will show projected profit and loss for the forecast period. Below is an example from the business plan for an existing auto repair shop. you can use it to make your own a profit and loss sheet. 

2.Cash flow projection: The next thing is the cash flow projection. Cash flow is critical for business sustainability. Illustrate how cash moves in and out of your business, highlighting periods of potential cash shortages and surpluses. This helps in planning for working capital needs and managing liquidity. Below is an example that you can use:

3. Balance Sheet Projection

Provide a snapshot of your business’s financial position, including assets, liabilities, and equity. This showcases the overall health and stability of your business.

4. Break Even Analysis

Determine the point at which your business becomes profitable. A breakeven analysis helps you understand how much revenue you need to cover all costs. Below is an example of a business plan for an existing auto repair shop. You can see to understand better.

Risk Assessment and Contingency Planning

No business journey is without its obstacles. Recognizing potential risks and challenges upfront and having a plan to address them is crucial. 

This chapter focuses on identifying risks, evaluating their potential impact, and outlining strategies to mitigate their effects.

First thing is to identify the risk. You can see the picture below to identify risks. 

After identifying risks, you need to come with risk mitigation strategies such as: 

Preventive Measures: Outline steps you’ll take to prevent risks from occurring. 

Mitigation Plans: Describe your plans to minimize the impact if a risk does materialize. 

Crafting a business plan is a labor of love. It’s more than a document; it’s your business’s roadmap to success. Each chapter contributes to the bigger picture, forming a comprehensive strategy that aligns your ambitions with actionable steps. Now that you have this guide, take the first step towards creating a winning business plan that paves the way for your entrepreneurial journey.

You can also take your auto repair business to the next level with a good auto repair management software. Moreover , torque 360 offers all-round automotive management software as well. It includes many features such as scheduling, invoicing , estimating , digital vehicle inspection , repair order management , technician portal , POS integration , and marketing solutions. 

About the Author: Torque360

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Here is a free business plan sample for an auto repair shop.

Have you been toying with the idea of opening your own auto repair shop but feel overwhelmed about where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for the auto repair industry.

As any seasoned entrepreneur will tell you, a robust business plan is crucial to navigating the road to success. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to steer your business to profitability.

To shift your planning into high gear without any detours, you can utilize our auto repair shop business plan template. Our specialists are also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your auto repair shop?

A good business plan for an auto repair shop must reflect the unique aspects of the automotive service industry.

To start, it's crucial to provide a comprehensive overview of the auto repair market. This includes up-to-date statistics and identifying emerging trends within the industry, similar to what we've incorporated in our auto repair shop business plan template .

Then, you need to articulate your business concept effectively. This encompasses your vision, pinpointing your target market (such as local residents, fleet services, or corporate clients), and the distinct positioning of your auto repair shop (specializing in certain types of vehicles, offering quick services, eco-friendly practices, etc.).

The market analysis section is vital. It requires a thorough understanding of local competitors, automotive industry trends, and customer needs and preferences.

For an auto repair shop, particular emphasis should be placed on the services you plan to provide. Detail your service offerings - general maintenance, specialized repairs, diagnostics, tire services - and explain how they cater to the demands and expectations of your target customers.

The operational plan is equally important. It should outline the location of your shop, the layout of the service bays, equipment and tool investments, supplier relationships for parts, and the repair process.

In the auto repair business, it is critical to highlight the expertise of your technicians, the quality of parts used, and adherence to safety and environmental regulations.

Then, delve into your marketing and sales strategy. How will you draw in and keep customers coming back? Consider advertising tactics, customer loyalty programs, and value-added services (like courtesy cars or shuttle services).

Utilizing digital strategies, such as a professional website or an active social media presence, is also vital in the modern marketplace.

The financial plan is another fundamental component. This includes the initial investment, revenue projections, ongoing expenses, and the point at which the business will start to turn a profit.

In an auto repair shop, understanding the profit margins for various services is essential, so meticulous planning and a firm grasp of your financials are necessary. For assistance, you can refer to our financial forecast for an auto repair shop .

Compared to other business plans, an auto repair shop's plan must pay special attention to factors such as inventory management for parts, certifications and training for technicians, and the potential for insurance partnerships or contracts.

A well-crafted business plan will not only help the owner to define their strategies and vision but also to attract investors or secure loans.

Lenders and investors are looking for a solid market analysis, realistic financial projections, and a clear understanding of the day-to-day operations of an auto repair shop.

By presenting a thorough and substantiated plan, you showcase your dedication and preparedness for the success of your venture.

To achieve these goals while saving time, you can simply fill out our auto repair shop business plan template .

A free example of business plan for an auto repair shop

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an auto repair shop .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The auto repair industry is a vital component of the global economy with significant growth potential.

Recent estimates value the global automotive repair and maintenance services market at over 700 billion dollars, with expectations for continued growth driven by the increasing number of vehicles on the road and the aging vehicle fleet.

In the United States alone, there are over 230,000 auto repair shops, generating a combined annual revenue of approximately 115 billion dollars. This underscores the critical role auto repair shops play in the American economy and in the daily lives of vehicle owners.

The auto repair industry is witnessing several key trends that are shaping its future.

There is a growing emphasis on technology, with shops incorporating advanced diagnostic tools and software to efficiently service modern vehicles. This includes the use of telematics to predict maintenance issues before they occur.

Electric and hybrid vehicles are becoming more prevalent, leading to a demand for specialized repair services for these types of vehicles.

Environmental concerns are also influencing the industry, with a push towards more sustainable practices, such as recycling parts and fluids, and using eco-friendly products.

Convenience services, such as mobile repair units and online appointment scheduling, are becoming more popular, reflecting customers' desires for more accessible and time-saving options.

Lastly, transparency in service, pricing, and customer communication is increasingly important to consumers, who want to ensure they are getting fair and honest service.

Success Factors

Several factors contribute to the success of an auto repair shop.

Quality of service is paramount. Shops that offer reliable, efficient, and high-quality repairs are more likely to build a loyal customer base.

Expertise in a wide range of services, including the latest automotive technologies, can set a shop apart in a competitive market.

Location is also critical, as a conveniently located shop can attract more customers and provide easier access for vehicle drop-off and pick-up.

Exceptional customer service is essential for creating a positive experience and encouraging repeat business.

Finally, effective cost management, the ability to adapt to industry changes, and a commitment to sustainability are important for the long-term success of an auto repair shop.

The Project

Project presentation.

Our auto repair shop project is designed to cater to the increasing number of vehicle owners who require reliable, high-quality maintenance and repair services. Situated in an area with high vehicle traffic or near automotive hubs, this shop will offer a comprehensive range of services, from routine maintenance and oil changes to complex engine repairs and diagnostics, all performed by certified mechanics using state-of-the-art equipment.

The focus will be on providing exceptional service, transparent pricing, and quick turnaround times to ensure customer satisfaction and vehicle safety.

This auto repair shop aims to become a trusted destination for vehicle owners, thereby enhancing the reliability and longevity of their vehicles.

Value Proposition

The value proposition of our auto repair shop project is based on delivering trustworthy and expert automotive repair and maintenance services that vehicle owners can depend on.

Our commitment to quality workmanship, fair pricing, and efficient service offers a superior automotive care experience, while contributing to the safety and performance of our customers' vehicles.

We are dedicated to fostering a transparent and customer-focused environment where vehicle owners can receive honest advice and top-notch service, and aim to educate our customers about the importance of regular vehicle maintenance.

Our auto repair shop aspires to become a cornerstone of the community, providing a reliable alternative to dealership services and enhancing the overall vehicle ownership experience for our customers.

Project Owner

The project owner is an automotive enthusiast with a comprehensive understanding of the automotive repair industry.

With a background in mechanical engineering and years of experience in auto repair management, he is determined to establish an auto repair shop that stands out for its dedication to excellence, customer service, and technical expertise.

With a vision of integrity and customer education, he is committed to offering high-quality automotive services that contribute to the safety and satisfaction of the local community.

His commitment to superior service and his passion for automobiles make him the driving force behind this project, aiming to enhance the vehicle maintenance experience for all customers.

The Market Study

Market segments.

The market segments for this auto repair shop are divided into several categories.

First, there are individual car owners who require regular maintenance and repair services to keep their vehicles in optimal condition.

Next, there are car enthusiasts and hobbyists who seek specialized modification and customization services for their vehicles.

The market also includes corporate clients with fleet vehicles that need consistent maintenance and repair to ensure business operations run smoothly.

Finally, insurance companies can be a key segment by partnering with the repair shop to handle claims for vehicle repairs after accidents or damages.

SWOT Analysis

A SWOT analysis of this auto repair shop project reveals several aspects.

Strengths include a team of certified and experienced mechanics, a strong reputation for quality service, and a strategic location accessible to a large customer base.

Weaknesses could include the initial costs of setting up a fully equipped shop and the challenge of building a customer base in a competitive market.

Opportunities lie in the increasing number of vehicles on the road, the potential for partnerships with local businesses, and the ability to specialize in certain types of repairs or services.

Finally, threats could include the rapid advancement of automotive technology requiring continuous training and investment in new equipment, and the potential for economic downturns affecting consumer spending on non-essential services.

Competitor Analysis

Competitor analysis in the auto repair industry reveals a mix of competition.

Among direct competitors are other local auto repair shops, franchise operations, and dealerships with service departments.

These players compete on factors such as price, service speed, customer service, and expertise in specific types of repairs.

Potential competitive advantages include a strong focus on customer satisfaction, the ability to provide a wide range of services, and the establishment of a loyal customer base through trust and transparency.

A thorough understanding of competitors' strengths and weaknesses is essential for developing effective differentiation and customer retention strategies.

Competitive Advantages

Our commitment to providing high-quality and reliable auto repair services is at the heart of our success.

We offer a comprehensive range of services, from routine maintenance to complex repairs, all performed by our team of skilled and certified mechanics.

Furthermore, our focus on customer education helps clients understand the importance of vehicle maintenance, thus fostering long-term relationships.

We take pride in our honesty and integrity, providing upfront pricing and clear communication about the services needed, which reassures our customers and builds trust in our brand.

You can also read our articles about: - how to open an auto repair shop: a complete guide - the customer segments of an auto repair shop - the competition study for an auto repair shop

The Strategy

Development plan.

Our three-year development plan for the auto repair shop is designed to establish us as a leader in vehicle maintenance and repair services.

In the first year, we will concentrate on building a strong local reputation for reliability and expert service. We will invest in state-of-the-art diagnostic equipment and ensure our technicians are highly trained.

The second year will focus on expanding our services to include specialized repairs and performance upgrades, as well as establishing fleet maintenance contracts with local businesses.

In the third year, we plan to explore the possibility of opening additional locations and offering mobile repair services to increase convenience for our customers.

Throughout this period, we will commit to exceptional customer service, continuous improvement, and staying abreast of the latest automotive technology trends.

Business Model Canvas

The Business Model Canvas for our auto repair shop targets vehicle owners in need of maintenance, repair services, and performance enhancements.

Our value proposition is centered on providing reliable, high-quality, and timely automotive services with a focus on customer education and transparency.

We offer our services through our physical shop location and potential mobile repair units, utilizing key resources such as our certified mechanics and advanced diagnostic tools.

Key activities include vehicle diagnostics, repairs, maintenance services, and customer service excellence.

Our revenue streams are generated from the various automotive services we provide, while our costs are mainly associated with labor, parts inventory, and operational expenses.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is focused on building trust and demonstrating expertise in the automotive repair industry.

We aim to educate our customers on the importance of regular vehicle maintenance and the value of quality repairs. Our approach includes local advertising, community engagement events, and informative content on vehicle care.

We will also develop partnerships with local businesses and car dealerships to expand our customer base.

Additionally, we will leverage social media and online reviews to showcase our work and customer satisfaction, while offering promotions and loyalty programs to retain and attract new clients.

Risk Policy

The risk policy for our auto repair shop is designed to minimize operational and financial risks.

We will adhere to industry standards and regulations, ensuring all repairs meet or exceed safety requirements. Our technicians will undergo continuous training to stay current with automotive advancements.

We will implement rigorous inventory management and cost control measures to maintain profitability.

Furthermore, we will secure comprehensive insurance coverage to protect against potential liabilities associated with vehicle repairs. Our priority is to deliver safe and dependable services while safeguarding our business and customers.

Why Our Project is Viable

We are committed to establishing an auto repair shop that meets the growing demand for professional and trustworthy vehicle maintenance services.

With our dedication to quality, customer education, and staying ahead of automotive trends, we are confident in our ability to thrive in this competitive market.

We are enthusiastic about enhancing the driving experience of our customers and building a robust business.

We remain adaptable to industry changes to ensure our goals are met, and we look forward to a successful future in the auto repair industry.

You can also read our articles about: - the Business Model Canvas of an auto repair shop - the marketing strategy for an auto repair shop

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an auto repair shop and our financial plan for an auto repair shop .

Initial expenses for our auto repair shop include acquiring a suitable location, purchasing state-of-the-art automotive repair equipment, obtaining necessary permits and licenses, investing in high-quality tools and diagnostic software, and costs related to branding and launching targeted marketing campaigns to attract vehicle owners in the area.

Our revenue assumptions are based on a thorough analysis of local demand for auto repair services, taking into account the number of vehicles in the area, the average age of these vehicles, and the propensity of owners to invest in vehicle maintenance and repair.

We anticipate a steady increase in customer patronage, starting with a conservative estimate and expanding as our reputation for reliable and efficient service grows.

The projected income statement outlines expected revenues from our auto repair services, including labor, parts markup, and other services, as well as operating expenses (rent, marketing, salaries, utilities, insurance, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our auto repair shop.

The projected balance sheet reflects assets specific to our business, such as automotive repair equipment, parts inventory, and receivables, along with liabilities including loans and accounts payable.

It provides a snapshot of the financial standing of our auto repair shop at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to plan for cash requirements throughout the year. This is crucial for maintaining a healthy cash balance to support day-to-day operations.

The projected financing plan identifies the sources of funding we intend to use to cover our initial setup costs and any additional equipment purchases.

The working capital requirement for our auto repair shop will be carefully managed to ensure we have sufficient funds to cover routine expenses such as parts procurement, inventory management, and payroll.

The break-even analysis for our auto repair shop will calculate the volume of services we need to provide to cover all our costs, including the initial investment, and begin generating a profit.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the gross profit margin on services provided, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to determine the profitability of the capital invested in our auto repair shop.

These metrics will assist us in gauging the financial health and success of our business venture.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an auto repair shop .

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Designing an Auto Repair Shop Business Plan That Clarifies Your Vision

Craft your auto repair shop business plan to achieve your objectives. select a shop management system that can help you bring your vision to life., mapping out a business plan and investing in a shop management system like tekmetric will help you help more people in the long run. find out how in our step-by-step guide..

Mapping out a business plan and investing in a shop management system like Tekmetric will help you help more people in the long run.

Starting a business can be a big risk. But if you map out a plan and execute it right, the outcome is well worth it. Having a solid automotive repair shop business plan in place is especially important if you ever plan on owning multiple shops. 

When you realized that you wanted to be a shop owner, it’s likely you considered the good you can do for both yourself and other people. Helping customers get their vehicles back on the road, and helping service advisors and technicians grow in their careers is an exceptionally rewarding aspect of owning and operating a repair shop. 

Plan for your shop's success at the very beginning.

Find the right tools.

In order to make the ride to becoming a successful shop owner a smooth one, your present self will need to have your future self’s back. You’ll need to ensure all of your ducks are in a row. And by ducks, we mean your people, processes, and systems. And most importantly, you’ll need to make sure that you are ready to take on this venture. 

You may even get excited thinking about the far future of your business—when it’s feasible to expand your business to include multiple shops. It’s good to dream big, and especially in auto repair, more shops means that you can help more people. But it’s important to understand how you’re going to get there, and what pitfalls to avoid. 

Before we jump into how your business can expand, let’s take a look at some of the reasons why new business ventures don’t make it . Don’t let this waiver your goals as a shop owner though. In fact, we’re writing these out so you can beat the odds.

6 Common Reasons Why New Businesses Fail 

Each business, and each story, is different. But there are a few common themes that usually lead to new businesses failing.

1. Not investigating the market 

When you’re opening up a new business, it’s crucial to consider the demand for auto repair and the unmet auto repair needs within the area you plan on opening shop. It’s easier to satisfy a known need rather than creating a need and having to convince your customers. 

2. Business plan issues

Your business plan is like your company’s Bible. You’ll spend months, or even years, making sure it is the perfect guidebook for your shop. Once your business plan is created, it’s important to follow it.

Taking chances that aren’t outlined in your plan could lead to further setbacks. Although setbacks are less common if you’ve carefully and diligently mapped out your plan, there’s always the possibility that your plan isn’t 100% sound. If that’s the case, determine the issue, find a solution, and adjust your plan accordingly. 

3. Not enough financing

Financial planning is crucial for any new business venture. If you don’t start off with enough money and end up having to stretch the financial line too thin, it’s possible your business may never get off the ground. 

4. Bad location, absent online presence, and other marketing issues

The location of your business, the online presence of your business, and the marketing efforts conducted throughout your business’ lifecycle are pivotal to your shop’s success. If you start an auto repair shop that focuses on truck repairs in the middle of a city where there aren’t a lot of truck drivers, it’s likely your shop won’t succeed. The same goes for online presence and marketing efforts.

You need to reach the people who may not regularly drive by your shop by considering where they spend their time online. What social media channels are they on? How do they use search engines to find local businesses? Tailored advertising efforts and five-star raving reviews will help bring more business to your shop. Without the best location, an established online presence, and the right marketing strategies , your business has less potential to last. 

5. Becoming complacent 

Just because you’ve finished up your business plan and started your business doesn’t mean the research should stop there. It’s always important to remain in-the-know on key market trends. By keeping an eye on the auto repair market, you’ll know exactly when and how you need to make adjustments to your business in order to keep growing. 

6. Expanding too fast 

Sometimes a business owner that is experiencing newfound success may keep reaching and reaching, and reaching, until their finances are drained. While it’s important to have an entrepreneurial spirit, it’s just as important to make smart investments.

If you want to open up more shops in the future, it’s important to give your new shop just as much tender love and care as you gave your first location.

Make sure you have a solid understanding of where you want your next location to be, who your intended customers are, whether you want to try selling new products or services, and how exactly you plan on testing the success of any new ideas.

According to Investopedia.org , the bottom line is this: “Though the rate of business failure in the first two years is around 20%, it doesn't mean that you have to fail. Through research, planning, and flexibility, you can avoid many of the pitfalls of a new business and be a part of the 25% that make it to 15 years and beyond.”

What Is An Auto Repair Shop Business Plan? 

The best way to execute your business is with a plan. An automotive repair shop business plan will outline your auto repair shop business so that you can present it to investors or any other stakeholders that you want to bring along on your business venture.

A business plan is the overall vision of your business, the goals you want to achieve, and the roadmap that will keep your company afloat. 

Your Auto Repair Shop Business Plan Serves as a Roadmap

A clear auto repair shop business plan will provide you with:

• Clarity on what needs to be done 
• The ability to spot issues as early as possible while making good investments 
• A sustainable and viable business model  

Clarity On What Needs To Be Done

An auto repair shop business plan will make it easy for you to explain your business model and where your shop is headed. You’re going to encounter obstacles, and in order to tackle them head on, you need to stick to your strategic plan and adjust accordingly. 

Your automotive repair shop business plan will provide you with clarity on: 

To Spot Issues Early While Making Good Investments

To prevent setbacks, you need to invest in the right things. The way you invest prior to opening up your shop, during your business’ lifecycle, and once expansion is on the horizon, will make or break your business.

Your auto repair shop business plan will help you determine the right routes to take when it comes to investing in: 

A Sustainable and Viable Business Model

By carefully mapping out your business’ roadmap, you’ll have the ability to achieve a sustainable and viable business model. 

Your auto repair shop business plan will help you: 

• Secure funding 
• Know when and how to expand
• Stick to growth goals and milestones

Each three of these categories can be more attainable with a clear mind. According to Walter Isaacson’s The Book of Jobs , Steve Jobs would often stress that the driving factor behind his creative inspiration was a clear mind through meditation.

So, before you get started crafting your quintessential automotive repair shop business plan, try to gift yourself the ability to tune out the noise during important decision-making matters. Here are three ways you can go into your business ownership journey with a clear state of mind: 

• Set aside time to commit to a muscle memory activity. A muscle memory activity could be going on a walk every morning with your dogs, heading to the driving range to hit a few golf balls in the evenings, playing an instrument, or picking up a good book. 
• Choose an activity that you genuinely enjoy doing and make it a habit. If meditating isn’t for you, you won’t be able to let go of the daily noise and distractions, and in turn you won’t be able to gain clarity of mind. Whatever you choose should be something you look forward to doing so that you can place all of your focus on that activity. Being able to focus is incredibly important for business owners because there are so many things that can occupy your mind in a given moment. Find an activity that helps you organize and become more aware of your thought process. 
• Reduce the noise around you by finding an activity that you can do by yourself. Finding an activity that helps you clear your mind and step away from others’ input will help you get back in tune with where you really want your business to go. 

These are just three tips. What works for one person may not work for you. Our primary recommendation for new business owners is to commit to not only working on your auto repair shop business plan but also commit to working on yourself so that when you hit the road, you’re able to face any and all obstacles with a clear, open mind. 

So, What’s Included in an Auto Repair Shop Business Plan? 

There are nine steps to crafting the quintessential automotive repair shop business plan that will help you achieve your business goals—from owning one auto repair shop to becoming a multi-shop owner.   

• Write an executive summary
• Describe your shop
• State your business goals
• Describe your products and services
• Do your market research
• Outline your marketing and sales plan
• Perform a business financial analysis
• Make financial projections
• Create a plan for growth and expansion 

Sure, those nine steps may sound tedious, but it pays to plan.

According to entrepreneur masterminds Francis J. Greene and Christian Hopp , high-growth oriented entrepreneurs are 7% more likely to plan out their business.

Furthermore, entrepreneurs who write business plans are 16% more likely to achieve viability than entrepreneurs who don’t develop a plan.

What Do You Need to Create Your Auto Repair Shop Business Plan?

You can build a successful launching pad for your auto repair business by conducting market research, developing a marketing plan for your auto repair shop, and evaluating the operational costs and investments you will need to make. 

Conduct market research

Here are four steps you can follow to successfully conduct local market research: 

• Determine your shop’s market area 
• Create a profile of your shop’s ideal customers 
• Determine the size of your market (pro-tip: check out City-Data for a detailed, informative profile of your target market). 
• Find out how many competitors are in your target market area

Remember that drivers are typically willing to drive a few miles to get their vehicle serviced, but driving over 10 miles might not be realistic for someone if their vehicle has an issue. So you may want to start looking at the demographics within a 10 mile radius of your auto repair shop. 

When looking at your target area, you can ask the following questions to get a good sense of your business’ market: 

• Is there a desire for your products or services? 
• How many people would be interested in your offering? 
• What is the income range and employment rate of your customers? 
• How many similar options are already available to consumers in your area? 
• How much do potential customers pay for these alternatives? ‍

Even after you open shop, keep conducting market research. You want to be able to keep up with the latest auto repair industry trends so that your shop’s profits keep growing. Getting a feel for the type of customers your shop serves will set a strong foundation for your auto repair shop business plan. 

Develop a marketing plan for your auto repair shop

Once you know your audience, develop a marketing plan that aligns your vision with the people you plan on serving. Here’s an overview of marketing strategies you can use to attract customers to your new shop: 

• Get involved in your community
• Run special promotions for first-time customers
• Partner up with an adjacent local business like a body shop
• Advertise locally
• Run targeted social media ad campaigns
• Up your shop’s search engine optimization (SEO) game

‍ Evaluate operational costs and investments

When it comes to successfully launch i ng your business, you’ll need to weigh any potential costs and investments that you intend on making. Always leave a bit of wiggle room for unexpected expenses, like hiring one more person that you anticipated, or paying a little extra for a more reliable shop management system. Sometimes spending a little extra means getting a higher return on investment, making it well worth the cost. But you have to ensure that you have the wiggle room first. 

The investments you put into your shop at the beginning will play a huge role in determining how profitable your auto repair shop will be in the future . You’ll want to evaluate: 

• The location you will operate your shop from
• The equipment you will invest in 
• The shop management system that will support you from day one and beyond 

The right shop management system will give you and your team: 

• ‍ ‍ The ability to gain experience 
• ‍ A methodical system for analysis
• Digital tools and integrations
• Guardrails that prevent errors
• The ability to track declined jobs
• Better compliance standards
• A workflow to quickly build accurate estimates
• A direct tie to all shop systems
• The capacity to set and reach profit goals
• A clear framework for enhancing customer experience

9 Steps to Create a Business Plan for Your Shop

But before we get too excited about finding the right shop management system, here’s the moment you’ve been waiting for: the nine steps you can take to craft an automotive repair shop business plan that will help you reach new heights and open up more shops in the future.  

1. Write An Executive Summary

Your business plan’s executive summary is designed to capture any investors’ or stakeholders’ attention. It gives them an overview of your shop’s business opportunities and an overview of the rest of your auto repair shop business plan. 

In your executive summary, you will briefly explain the problem you are solving, your business ideas, the target audience, and any key financial information. Your business plan’s executive summary should capture each of the aforementioned topics in no more than two pages . 

‍ The problem statement: this introduces the reader to the gap and/or problem in the auto repair industry that your business aims to solve. 

‍ The business statement (aka your business model): this will show the reader exactly how you plan to tackle the problem—both how you plan to approach the problem and how you plan to solve it. During this section, you want to briefly explain how your auto repair business will help solve whatever problem you found in the market. 

‍ The target audience statement: during this section, you’ll map out any customer demographic details and how you plan on targeting these audiences. 

‍ The financial plan summary: any financial institution or investor you approach will want to know how you plan on spending their funds. During this section of the executive summary, you want to cover where you plan on allocating funds and any applicable financial projections. 

Find a Shop Management System That Will Make Tracking Your Shop’s Financial History a Breeze  

‍ For those of you who are current shop owners and want to craft a new automotive repair shop business plan, the financial plan in your executive summary will have to include a history of your shop’s past financial performance.  With Tekmetric, you can use accurate, real-time data to easily track how money flows through your shop. Tekmetric’s Real-Time Financial Reports include three reports that are particularly useful during this step of your auto repair shop business plan:  1. End of Day Report  ‍ The End of Day Report is an overview of how effectively your shop has been selling repair work during a given time range. You can select what time range you want to view a financial report for. The End of Day Report breaks down your shop’s overall shop metrics, including Total RO’s, Hours Presented, Hours Sold, Close Ratio, Effective Labor Rate, Average Repair Order (ARO) Sales, ARO Profit, ARO Profit Margin, Gross Sales, and Gross Profit.  2. Profit Details Report ‍ The Profit Details Report will show you the exact profit you’ve made across all of your shop’s ROs. A perk to the Profit Details Report is that you can also break it down even further to show the profit your shop has made within individual ROs.  3. Sales Details Report  ‍ The Sales Details Report will show you how much your shop has sold in parts and labor over a given time range, how much money has been collected from sublets, fees, and taxes, as well as the dollar amount of the discount your shop has provided to customers. 

2. Describe Your Shop

What makes your business stand out? What’s your company’s mission? What are the most important aspects of your business? These are the questions this section of your auto repair shop business plan will answer. 

When determining your shop’s mission statement, try to keep the following tips in mind: 

• Make it a long-term mission statement 
• Think big picture and high level  
• Keep it short and concise
• Use “Our” and “We” when writing your mission statement. For example, “We provide the highest quality repair services to the drivers of East Omaha, Nebraska”
• Work with your potential stakeholders and/or employees to come up with your mission statement
• Don’t be afraid to change it 

Let’s take a look at ten popular mission statements. If you can think of the company’s name, then their mission statement did its job. 

• “To bring inspiration and innovation to every athlete in the world.*
• If you have a body, you are an athlete.”
• “To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.”
• “To inspire humanity—both in the air and on the ground.” 
• “To accelerate the world's transition to sustainable energy.”
• “Spread ideas.” 
• “To give everyone the power to create and share ideas and information instantly, without barriers.”
• “To organize the world’s information and make it universally accessible and useful.”
• “We save people money so they can live better.”
• “To be a company that inspires and fulfills your curiosity.”
• “To build and deliver an integrated set of digital tools that complement one another and empower shop owners to grow a thriving automotive repair business.”

In order from top to bottom, the mission statements belong to Nike, Warby Parker, JetBlue, Tesla, TED, Twitter, Google, Walmart, Sony, and Tekmetric. 

What do each of the above mission statements have in common? They uncover the primary existence for each company, and they deliver their purpose and overall intention. 

As you’re developing your automotive repair shop business plan, think of ways your auto shop can stand out in your community. If you want a good example, check out our Shop Spotlight of Turbo Tim’s Anything Automotive . Turbo Tim’s shop owner Tim Suggs crafted his shop around a unique and relatable culture that gives back to the community. Their focus is on “average cars, average people.” 

‍ “Early on, it was apparent that if I put people first, the money would come. I focused on building an atmosphere that was both fun and professional for employees and customers alike. One of the most instrumental, yet unintentional, parts of our culture came from a cat I found at a machine shop. I’ve always been a cat person, and I asked the technicians there if that was their cat. They said it was a stray that they regularly fed. After checking that he wasn’t microchipped and didn’t belong to anyone, I brought him home with me.

‍ And that’s the origin story of Bobby, our original shop cat. We now have multiple cats who greet folks in our waiting room. Bobby also positively affected our marketing. Halfway through our growth, we began branding ourselves with a cat logo inspired by Bobby. Today, customers who put Bobby bumper stickers on their cars get 10% off for life. Less productive are our chickens, who ‘work’ in the chicken coop on our outdoor patio.”  ‍

When you describe your company in your auto repair shop business plan, you want to unveil what you see your shop being. Yes, you’ll want to mention the mission, but you also want to capture your shop’s values and culture, and what sets your shop apart from the rest.  

Invest In a Shop Management System That Allows Room For Integrations 

‍ Tekmetric partners with other industry-leading solutions to let shop owners fine-tune the repair experience for their team and their customers.  ‍

• We partner with Mechanic Advisor to bring your customers’ real-time scheduling
• We partner with Shop Owner Coach to bring your shop personalized coaching and training
• We partner with Advance Auto Parts so that your team can easily find a good deal on a wide selection of parts
• We partner with BG Products, Inc. so that you easily provide high-quality maintenance to customers
• We partner with MyShopManager to ensure your shop’s marketing communication leads to higher customer engagement
• And that’s just five out of 30+ integration partners your shop can choose from. 

‍ See how the right mix of automotive computer programs fuels business innovation.  

3. State Your Business Goals

The next section of your auto repair shop business plan is where you should state your business goals. Here you’ll want to list out the short-term, medium-term, and long-term goals that you want to achieve with your business. 

• Short-term business goals: these business goals are to be accomplished in no more than one year. 
• Medium-term business goals: these business goals should be completed in more than one year, but less than five years. 
• Long-term business goals: these business goals are what you want to accomplish in five years and beyond. 

As you’re coming up with your shop’s goals, you need to make sure that they are realistic, attainable, and strategic. Ask yourself these six questions as you come up with your business goals: 

• Why is this goal important?
• Can we achieve this goal?
• What can impede or stop us from achieving this goal? 
• If we set this goal, what are the action steps? 
• If we meet this goal, how do we take it to the next level?
• If we don’t meet this goal, how do we rebound? 

Now that you have those six guiding questions, you can start to come up with your shop’s unique business goals. Ask yourself the following questions to help you come up with your company goals: 

• Why do we do what we do?
• Where do I see my business this year, next year, and five years from now?
• What are we selling beyond auto repair?
• How do we feel about the problems we solve?
• What values do we want to stand by no matter how big we grow? 
• What do our customers want?
• Which promises do we want to make? Which promises can we keep? (Only make promises that you know that you can keep) 
• What do we need to do today to make sure that we can keep doing the things we want to do tomorrow? 

Whether your goal is to have a 20% profit margin year one or open up a second location in the next five years, the business goals section in your automotive repair shop business plan will help you remember why you set that goal in the first place. 

Choose a Shop Management System That Makes it Easy to Reach Your Goals ‍

‍ If your goal is to increase your sales and ARO, then you’ll like Tekmetric’s Digital Vehicle Inspection (DVI) feature. Tekmetric’s DVIs are designed to inform and show your customers exactly what’s going on under the hood. And the better you can explain vehicle issues, the more likely your customers will be on board with getting the recommended repair work done.  Tekmetric’s DVIs include six core features that will benefit both your team and your customers:  ‍

• A searchable DVI history  
• The ability for technicians to attach photos and videos to inspections
• A color-coded system that indicates the severity of inspection findings
• A direct tie-in to parts and labor data when building estimates
• The ability to add canned jobs when building estimates
• Digital authorization for jobs
• A declined jobs report that automatically saves and tracks declined jobs

‍ See what else Tekmetric’s DVIs can do for your shop. 

4. Describe Your Products and Services

In the products and services section of your auto repair shop business plan, it’s important to focus on your customers’ perspective and needs. The overall goal of the products and services section is to prove that your shop will fill a market need and remain viable. 

Here are some questions you’ll want to answer in this section:

‍ What kind of vehicles will your shop fix?

Do you want to run a general auto repair shop or a specialty auto repair shop? You can determine whether your shop will focus on exotic vehicle repairs, diesel engine repairs, fleet work, or stick with the standard independent garage clientele. 

‍ ‍What type of services will your shop provide?

Along with determining the kinds of vehicles you’ll service, you’ll also want to consider each service your shop will provide. Will your main focus be on oil changes, tune-ups, and regular maintenance? Will you want to sublet some of your repair work? It could be that you focus on standard repairs, but when a customer comes in with a specific job that you don’t want to turn down, you can have that repair work done through a subcontractor, but you’d have to establish that partnership . 

‍ How will your shop’s name and brand clarify your audience and services?

Your shop’s main focus may be something you’ve already thought of, but what about your shop’s name? It’s a good idea to choose a name that speaks to your shop’s target customers and the types of services you provide. For example, Bavarian Motor Repairs specializes in servicing BMWs, MINIs, and Rolls Royces. Or maybe you want your shop to cater to everything auto repair related like Turbo Tim’s Anything Automotive. 

‍ What types of products will your shop provide?

Knowing the types of vehicles and services your shop will provide to customers is great, but what about the types of products you plan to sell to your customers? Many shops choose to sell specific types of fluids that their customers can rely on. Similarly, shop owners may sell products and equipment that can make their customers’ vehicles last longer and perform better. You can also offer products that make for an easy upsell such as air fresheners, floor mats, or even merchandise with your shop’s logo on it.  

Find a Shop Management System That Expedites The Parts Purchasing Process  ‍

‍ Tekmetric’s Canned Jobs Board pulls from inventory to see what parts you already have on hand and what parts you need to purchase. You can also set a parts markup on inventory items that are added to canned jobs so that you can lock in your parts margin.

This addition to your parts management strategy will cut out all the guesswork and streamline jobs. Your team can save time sorting through parts and spend it actually repairing vehicles and providing excellent customer service.

In Tekmetric, you can view and sort canned jobs by:

• Job category

To make your parts purchasing experience even easier, Tekmetric has partnered with some of the most trusted parts vendors in the industry: 

• MyPlace4Parts
• OEC Repair Link

5. Do Your Market Research

You probably did some market research when you first began forming your business plan. But as you write this section, you’ll really want to sharpen your market research and organize your findings.

There are two main types of market research that you can do when planning your business. 

‍ Primary Market Research: any type of research that you collect yourself. Examples include surveys, interviews, and observations. 

Secondary Market Research: any type of research that involves compiling existing data. Examples include searching websites, going to libraries, looking at government statistics, or even using internal resources like your shop’s average revenue per sale, customer retention rates, and any other historical data you see fit (this is especially useful for current shop owners looking to expand). 

To successfully conduct market research, you should follow these fives steps: 

1. Determine the purpose of your market research

Before starting your market research, determine your goal for doing it in the first place (aside from creating the business plan, of course). Common reasons why business owners conduct market research include wanting to understand a new market or to gauge the success and strategies of competitors. 

2. Research the current state of the auto repair industry

Look at where the auto repair industry currently is and where it seems to be heading. The goal here is to determine any potential trends and projected growth that can give your business a competitive edge in the auto repair industry. Check out Ratchet+Wrench for the latest auto care insights.

3. Define your buyers’ personas, aka “marketing personas” 

Creating buyer personas will help you understand who your customers are. Your buyer personas should include age, gender, location, job titles, family sizes, incomes, needs, interests, etc. Keep in mind that as you build out your buyer personas, you don’t have to limit yourself to just one persona. There are many different types of drivers and people that need auto repair services. 

There are many useful tools you can use to develop your personas. Here is HubSpot’s free tool that might come in handy while you’re building your personas. 

4. Understand your competition  

To understand your competition, we recommend listing out each of your shop’s competitors. From there, determine what those shops do differently from what you plan to do. Consider their strengths and weaknesses, and any advantages they have in the auto repair market in your area. You can also do a SWOT analysis where you determine their strengths, weaknesses, opportunities, and threats. It’s also good to do a SWOT analysis of your own business, too. 

5. Gather, analyze, and summarize your findings  

Any information you find during your market research will be your friend. You can never have too much data—as long as it’s from a credible source. Here are some resources you can use for credible research: 

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• State and local commerce sites
• Your own SWOT analysis
• Market surveys or questionnaires

When it comes to analyzing your market data, it’s best to organize it all into sections that make the most sense to you, your stakeholders, and your investors. The main topics you want to focus on are your shop’s purpose, the target market, and your competition. Examples of elements within your market research analysis can include your customers’ buying trends, forecasted growth, how much customers are willing to pay for your services, and an industry overlook, including the industry’s size and growth rate. 

Invest in a Shop Management System That Tracks Your Customers’ Historical Data 

‍ Tekmetric’s customer reports help keep your market research fresh. You can see which service you sell is the most popular and who your most frequent customers are. You can also get more accurate data about different customers’ buying behavior when you start generating with Tekmetric’s customer reports. 

‍ Customer List Report: Tekmetric’s Customer List Report gives you an overview of each customer’s Lifetime Visits, Lifetime Spend, Lifetime Profit, Lifetime ARO, Lifetime Close Ratio and other key stats.

‍ Declined Jobs Report: With the Declined Jobs Report, service advisors can see all jobs that have been declined on past ROs so that they can get them back in the shop. Identify which jobs are declined most often so that you can create effective promotional campaigns that upsell, cross-sell and improve your Close Ratio.

6. Outline Your Marketing and Sales Plan

After conducting market research and deciding on the products and services your shop will provide, you can work on your marketing strategy. Your marketing strategy should specify how you plan on marketing different services and products to different demographics. 

For example, if you decide you want to focus on diagnostics for BMWs, then your marketing plan will show how you plan to target BMW owners for that particular service. Maybe you could go find BMW groups or figure out where BMW owners like to shop or frequent, and advertise there. 

A strong marketing and sales strategy will help your shop maximize and leverage profits. Marketing expenses are something you need to invest in, but you also need to ensure that you’re getting a strong return on your marketing investments. 

‍ Here are a few examples of impactful marketing strategies: 

• Website branding
• Local reviews
• Social media campaigns
• Email marketing
• Content marketing
• Referral program
• Reward program
• Pay-per-click ads
• Print and physical marketing

Whatever marketing efforts you choose to invest in, make sure you track the data so you know what works and what doesn’t. 

Choose a Shop Management System That Helps You Refine Your Marketing Strategies

‍ A shop management system like Tekmetric can show you whether or not your strategies are working. 

‍ Marketing Source Report: You can track the payoff that each marketing strategy brings your shop by using Tekmetric’s Marketing Source Report. With the RO Marketing Source Report, you can explore how much of your business comes from new sales or repeat sales, and identify which marketing sources are bringing in the most business.  

Integrations: Tekmetric integrates with several marketing solutions that will help your shop further grow its customer base. Our marketing integrations include Mechanic Advisor, KUKUI, MyShopManager, MechanicNet, RepairPal, and more.

7. Perform a Business Financial Analysis

In the financial analysis portion of your auto repair shop business plan, you want to unpack how much money your shop will need to get off the ground and exactly how you plan on spending it. 

Some common capital and startup expenses include: 

• Rent or lease payments
• Utilities costs such as telephone and internet, electricity, heating, etc.
• Maintenance costs such as mending leaks, maintaining equipment, snow plowing, landscaping services, etc.
• Taxes, including state income tax, property tax, payroll tax, sales tax, fuel tax, etc.
• Office equipment such as computers, printers, tablets, desks, chairs, etc.
• Marketing expenses
• License renewals
• Lobby supplies such as water, coffee, snacks, etc.
• Employee appreciation such as gifts, holiday outings, meals, team bonding, etc.
• Ongoing training and education opportunities

Another key component to your financial analysis is your break-even analysis. A break-even analysis is when you factor in both your costs and your shop’s sales to determine the moment you will break even. 

So, what is a break-even point? A break-even point is when your business will begin making a revenue that should cover your total amount of overhead costs—both the fixed and variable costs accumulated over time. 

‍ Break-Even Point Formula: 

(Overhead Costs + Balance Sheet Payments) / Gross Margin = Break-Even Point

For example: ($30,000 + $10,000) / 95% = $42,105.26

In the example above, it concludes that you need to sell a total of $42,105 to make sure that you cover your overhead costs and balance sheet payments.

Choose a Shop Management System That Can Assist in Managing Your Shop’s Common Expenses   

‍ While Tekmetric can help you track the cost of goods through reports, your accounting tools such as QuickBooks, is where you’ll track a lot of your daily expenses. Tekmetric doesn’t include a built-in accounting system, but we do have an accounting link through one of our integration partners, The Back Office, which gives you the ability to manage your books, track income and expenses, and easily perform audits for all your accounting needs with just a few clicks.

Tek-Tip: improve your profits and fine-tune your shop’s goals with Tekmetric’s built-in Parts Matrix and Labor Matrix. Tekmetric makes it easy for shop owners and service advisors to include the right markups on each and every job.

8. Forecast future opportunities

According to Entrepreneur.com , here are some ways you can make financial forecasts more realistic: 

• Use at least two financial projection scenarios. One can be more optimistic and the other can be more cautious. It’s best to err on the side of caution while also making space for the optimistic predictive forecasts that new and aspiring business owners are prone to make. 
• Predict your expenses first, then your revenues. 
• Identify and include assumptions that are outside of your control, including how much you predict the market will grow, any possible changes in the competitors you’ve found, and any advancements in technology that could impact your business. 
• Assess, reassess, and reassess again. Forecasts shouldn’t be stagnant. The more up-to-date your forecasts are, the more prepared you will be to make informed strategic decisions.

Invest in a Shop Management System That Lets You Categorize Reports into Different Time Periods 

‍ Tekmetric’s real-time reports empower shop owners to forecast and strategize by choosing between annual and weekly forecasting. 

‍ Annual Forecasting: With annual forecasting, you can get a sense of where your shop is at and how the rest of the year is likely to play out. If you notice that business is slowing down month to month, it might be time to adjust your marketing strategies. Or maybe you notice that the year has been busier than usual, in which case you may want to consider bringing on more talent to help service your new influx of customers. 

‍ Weekly Forecasting: With weekly forecasting, you can combine sales in progress with closed sales data to get an idea of how much profit your shop is lined up to make by the end of the week.  ‍ Read more about how you can forecast with real-time reports .

9. Create a Plan for Growth and Expansion 

Although this section isn’t necessarily a part of a standard business plan, you’ll want to incorporate it into your automotive repair shop business plan if you eventually want to open additional repair shops. 

To prepare yourself for future growth, you’ll want to ensure that 1) the auto repair shop business plan you’re creating now can be replicated if all goes according to plan and 2) the shop management system you select can grow with you. 

If you play your cards right—or in this case, you craft the optimal automotive repair shop business plan and invest in foundational tools—you’ll be well on your way to becoming a successful owner of multiple auto repair businesses. 

Tekmetric: Your Shop’s Go-To System For Present-Day Planning and Future Expansion 

Just as your automotive repair shop business plan will help you navigate any potential setbacks, the Tekmetric shop management system will help you hammer away as you grow your business.  

The right planning and shop management system will help you determine—in advance—things that can help you achieve your goals, as well as avoid things that can potentially prevent you from achieving those goals. 

Tekmetric will: 

• Make tracking your shops’ financial history a breeze
• Allow room for integrations 
• Make reaching goals easier
• Expedite the parts purchasing process
• Help you track your customers’ historical data
• Help you refine marketing strategies
• Assist in managing your shop’s common expenses   
• Empower you to make financial decisions for future growth
• Create a plan for growth and expansion

Not only will investing time into planning help your vision come to fruition, but it will also help you achieve the dream you stood by since day one: helping your customers get their vehicles back on the road safely. 

Mapping out an auto repair shop business plan and investing in a shop management system like Tekmetric will help you help more people in the long run. 

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The 7-Step Business Plan to Grow Your Auto Repair Shop

Free profit and valuation ebook.

Discover and implement essential shop management strategies for building a profitable, high-valuation business.

• By Kyle Zhao
• | February 23, 2022
• | Business Advice , Tips

Does your auto repair shop’s growth rely merely on hope, or do you strategize how to drive your business forward?

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While many auto repair shops and most businesses operate on hope—whether it’s hoping new target customers and repeat customers show up to spend a lot of money—it’s not an effective plan, says Al Wheeler, Chief Executive Officer of ShopPros , a management and training company that offers a complete business system for independent auto repair shops.

Wheeler, who has 35 years of experience in the automotive industry, understands the challenges that every auto repair shop owner faces. In a recent webinar , Wheeler shared why shops should consider creating a detailed financial plan for growing and sustaining their auto repair business.

“As business owners, we typically spend the majority of our time working in the business and not on the business,” Wheeler says. “I think it’s especially prevalent in our industry because you’re wearing so many hats throughout the day, and our days seem to be consumed by firefighting much of the time. As a result, the business trends really tend to drive us, rather than us driving business.”

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The sample auto repair shop business plan discussed in this article outlines a strategy for:

• Discovering the potential in your auto repair shop
• Analyzing the current status of your auto repair shop
• Setting repair shop goals
• Training and planning
• Implementing change
• Monitoring and measuring

Why do you need a business plan for your auto repair shop?

Think of a business plan as a GPS for your auto repair shop. Not only will a business model provide details and direct you from point A to point B, but it also optimizes your route and helps you avoid potential pitfalls along the way.

According to research by Entrepreneurial Dynamics , using business plans helps you become:

• Twice as likely to obtain a bank loan
• Twice as likely to create investment value 
• 49% more likely to grow

While goal setting remains an important aspect of this equation, it’s not the same as business plans, which analyze current performance and define specific actions to reach purposeful results. “Keep in mind that setting goals, while important in business, does not constitute a business plan,” Wheeler says.

“Business planning really lays the foundation for continuous improvement,” Wheeler says. “I like to call it a success cycle for your business. What fundamental steps do you need to take to create an environment of continuous improvement within the business?”

Creating a cycle of success is essential for your auto repair shop, and where a clearly defined business plan will play a big role.

• The success cycle starts with a practical understanding of current performance against your desired or optimized outcome. Complete this analysis in thoughtful detail.
• The planning process then kicks in, helping you define specific actions to take advantage of outcomes. 
• As results of this success cycle start to roll in, employees across your auto repair shop will begin to believe more and more in the business’s potential. This positive energy keeps the success cycle in motion, resulting in even more growth.

“It’s about establishing (this) success cycle for your business. It builds on belief, establishes potential, and leverages the specific actions you choose to deliver those purposeful results,” Wheeler says.

Can your shop survive without a plan?

According to the U.S. Bureau of Labor Statistics (BLS) , approximately 20% of new businesses fail during the first two years of starting operations, 45% during the first five years, and 65% during the first ten years. Only 25% of businesses make it to 15 years or more. Why’s that?

From this industry overview, it’s clear a major reason for failure is their lack of a business plan.  This is where an auto repair business plan will help. With the right high-level overview and strategy, determination of how much funding you need, and enough flexibility, your auto repair shop will have a better chance of success. The future becomes much clearer once a business plan is in place to get the ball rolling.

Creating an auto repair business plan

Now that you know why this type of plan is important, it’s time to put pen to paper. Here are some pointers to help your auto repair shop get started:

Step 1: Discover potential at your auto shop

To discover your auto repair shop’s potential, it’s key to establish a ceiling and baseline so you can measure performance.

In the industry, an auto repair shop’s primary revenue producer is billed hours. It’s critical to determine your production capacity because that helps determine the ceiling of your financial plan, Wheeler says. Production hours will drive business potential in terms of revenue and gross projected profit, which ultimately your employees generate. Incorporate this business idea into your auto repair shop’s own business plan and create a more efficient system to generate money.

One of the common elements includes examining relevant benchmarks of other shops of a similar type and size, and their quality work performance.

Step 2: Analyze your auto shop’s current status

Determining the current status of your auto repair shop helps you understand how your shop compares to its potential. This includes analyzing store averages in daily, weekly, and monthly production, revenue, and gross projected profit.

Not only do you want to scrutinize business performance, but also individual performance. This executive summary includes auto mechanics’ average production, service advisor average gross profit, and service advisor billable hours and revenue. Keep these factors in mind when forming the business plan for your auto repair shop.

“This is a good way to effectively establish the baseline in which we’re going to judge performance improvement in those key areas and within our key employees,” Wheeler says.

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Step 3: set goals for your auto shop team.

Team involvement remains necessary to achieve individual and store-level goals. “This is where it’s critical to have team involvement and remember the SMART acronym—specific, measurable, achievable, relevant, and timestamp goals,” Wheeler says.

To remain on track with your automotive repair shop business plan, set specific monthly, weekly, and daily goals, both at individual and store levels. It’s important to involve your team in establishing these repair services goals and possess effective ways to measure them.

Step 4: Train and plan for auto shop growth

Training and business planning become critical components of facilitating change. Investing in your team as part of your own plan not only shows you care but allows them to grow in knowledge and skill.

Planning becomes part of the long-term business strategy. While many shops set business plans and goals around needing more car repair services completed, which drives sales, shops should first build the underlying fundamentals for a great customer experience

“We don’t need more cars for the sake of cars,” Wheeler says. “We need more cars to develop long-term loyal customers, and if we don’t have a conversion strategy for those guests, more cars are not going to sustain our growth.”

Step 5: Implement change to grow your auto repair business

A business plan won’t become effective unless it’s put into practice. To do this, good communication and accountability remain key.

“I’ve seen companies develop these great missions and vision statements, only for them to become artwork on the wall,” Wheeler says. “They really don’t have any substance behind them, and they aren’t lived out each day.”

Step 6: Monitor and measure your auto shop’s performance

To measure success, your auto repair shop needs to set relative benchmarks so they can obtain broader insights into the business and performance. This information will help you determine next steps on how to attract customers and generate new business. An excellent way to do this within your automotive repair shop business plan is by investing in automotive repair business software, such as AutoLeap .

While it’s important to monitor and measure repair services goals in your new plan, it’s also important to communicate with your team in daily or weekly meetings.

“What we’re doing in this business plan is essentially establishing the playbook in which you’re going to operate your auto repair business,” Wheeler says. “It’s going to drive the customer engagement system within your shop, so your business plan really should strive to eliminate randomness in your auto repair business. Nothing should happen by accident, everything should be intentional around achieving your objectives.”

Step 7: Adapting to the changing auto repair industry

Your auto repair shop must keep up with the changing dynamics of the automotive repair industry, technology, and customers’ behavior. Within the plan you put together, your auto repair shop  must prepare for the electrification of vehicles and equip itself to deal with the latest technology, such as Advanced Driver Assistance Systems (ADAS) . How will your business plan account for these emerging vehicle technologies and the potential customers they draw?

“I understand changing an operating system is painful, but in many cases, it’s going to be necessary,” Wheeler says.

An auto repair shop should consider:

• What could you be doing based on your existing staffing by location?
• A performance dashboard that can provide relevant data at a glance.
• A plan built and owned by the business with discrete actions.
• Standards/goals set for every tech and advisor to measure performance and reward/recognize high achievers.
• Benchmarking against every competing auto repair shop gives you insight into your relative performance and identifies areas to improve.
• Effective technology and systems that ensure great customer experiences.

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Your auto repair shop business plan, much like other goals, is only effective and only as good as it’s acted upon, Wheeler points out.

“It’s kind of like Newton’s first law that we all learned in school—objects in motion will remain in motion until acted upon by an external force,” Wheeler says. “In other words, your business will continue on the path that it’s on unless you engage the energy necessary to change that trajectory…If you think you can do better, then I think one of the energy components that you can use, or should consider, is a comprehensive business plan.”

Now that you’ve learned the steps to prepare an auto repair shop business plan and explored several benefits, it’s time to execute on this clear vision and  grow your business .

Customers with older vehicles are more likely to need auto repair services. Why is this? For one, older vehicles tend to break down more. Warning signs like check engine lights will appear more frequently, requiring a visit to your shop.

To write a business plan for your auto shop, you will need to: 

• Analyze your shop’s current status 
• Set SMART goals for your shop team
• Include plans for training and growth 
• Prioritize communication and accountability  
• Establish and measure performance benchmarks
• Account for evolving industry trends

Auto repair shops’ profitability depends on many factors. But the revenue potential is significant. Nearly one third of surveyed shops in AutoLeap’s 2022 State of the Auto Repair Industry Report generated $1 million or more in 2021 revenue. 

Successful promotion helps maintenance shops earn new business. Targeted email marketing and aggressive word-of-mouth outreach are two widely used strategies. Referral programs, organic SEO and active social media presences also help attract new customers. 

You can promote your car repair business by: 

• Launching social media accounts and posting regularly 
• Targeting local search terms with paid marketing 
• Sending creative promotional emails to your target customers
• Creating a referral program
• Building up your organic keyword rankings

Auto Repair Shop Management Software

AutoLeap is a powerful all-in-one auto repair shop software that helps to keep complete track of your business – from scheduling appointments to managing technicians and generating invoices.

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How to Create an Auto Repair Shop Business Plan

• by Sonya Stinson Sonya Stinson is a New ... more
• January 9, 2020
• 4  Minute Read
• Home > Blog > Planning for Growth > How to Create an Auto Repair Shop Business Plan

Jack’s Car Clinic opened three years ago on a shoestring budget, with some borrowed tools, personal savings and financial assistance from family members. Now word-of-mouth about the auto repair shop’s stellar service keeps a steady stream of customers driving into Jack’s garage. Jack sketched out a loose auto repair shop business plan in a notebook before launching the company, but never got around to formalizing it. Now the business is ready to grow, and a small business loan would help provide the resources Jack needs to expand. To prep for the loan application process, Jack needs to update his business plan to show lenders.

If you, like Jack, are an auto repair shop owner who is facing the task of writing a formal business plan for the first time — or updating an old plan — you may need help getting started.

Here’s a guide to help you develop an auto repair shop business plan that will get your new venture on track for greater success.

Why You Need a Business Plan

It probably doesn’t matter to Jack’s loyal customers that the car shop started up with a business plan that would fit on a repair order form. They only care that the shop’s reliable service keeps their vehicles in mint condition. But a potential lender may require more thorough paperwork to assess whether Jack’s business is a good investment.

If you’re thinking of applying for an auto repair business loan , you can’t afford to put off creating a business plan any longer. A solid business plan may help potential lenders feel confident that you know how to manage an auto repair shop and have a clear vision for how you want to use the loan funds to grow your business.

How to Structure Your Business Plan

There’s no single business plan template, but it’s probably wise to adhere to some of the more common practices and traditional lender expectations.

Business plan styles generally fall into one of two categories, according to the U.S. Small Business Administration : traditional or lean startup. The more common, traditional plans are longer and more detailed, while lean startup plans stick to brief summaries that typically fill a single page, according to the SBA.

Your choice may depend in part on the preferences of the lenders you plan to approach, keeping in mind that some lenders may not require you to have a formal business plan at all. The SBA notes that business owners seeking financing from traditional sources may want to go with a traditional business plan. Other considerations include the complexity of your business and how often you expect to update your plan.

Ultimately, your goal should be to write the auto repair shop business plan that best fits your company’s current needs and guides it to the next stage.

Lean and Traditional Business Plans

The SBA lists nine common elements each for lean startup and traditional business plans, with the former list taken from the well-known Business Model Canvas template, created by Swiss business theorist Alexander Osterwalder.

Sections of a Lean Startup Business Plan

• Key partnerships – e.g., suppliers, manufacturers, subcontractors
• Key activities – methods your business will use for competitive advantage
• Key resources – e.g., staff, capital, intellectual property, networks, organizations
• Value proposition – your company’s unique value in the market
• Customer relationships – how customers will interact with your business
• Customer segments – your target market(s)
• Channels – ways you will communicate with customers
• Cost structure – your key business costs and spending strategy
• Revenue streams – how your business will make money

Sections of a Traditional Business Plan

• Executive summary – overview of the purpose, leadership, staff and finances of your business
• Company description – more detailed discussion of the mission, target market, structure, etc.
• Market analysis – research-based report on industry trends and market competition
• Organization and management – details about company’s legal structure, key team members
• Service or product line – what you will sell and how these offerings will help your customers
• Marketing and sales – your marketing strategy and selling process
• Funding request – how much money you want to borrow and how you will use it
• Financial projection – your five-year financial forecast, including budget, income, cash flow
• Appendix – supporting documents like credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents and other contracts

Tweaking the Template for Your Business

Your business plan may be similar to other auto repair companies, or any service business, for that matter. But there are still ways to tweak your plan to make it stand out from the crowd.

Let’s say you don’t have the time to develop a highly detailed, comprehensive plan and you think your business model can be explained in a simpler, shorter plan. For those reasons, you might start with a basic lean startup template and put a special emphasis on highlighting those elements that show your company’s best strengths. For example, you’ll want to highlight competitive edges — like hiring graduates of a top-rated automotive mechanics’ school or using a revolutionary enterprise software system for diagnosing mechanical problems — in the key activities section. Maybe you’ve developed a robust email communications and social media strategy you’d like to tout in the section describing your channels for customer engagement.

If you enjoy delving into the details — or you simply must buckle down and do it to qualify for the financing you seek — the longer traditional business plan format is probably the way to go. You might decide to put extra effort into your market analysis of the automotive repairs industry and sizing up your local competition. If recent trends in your own business have you rethinking your product and service line or your long-term financial projections, it makes sense to focus on those areas when you create a new or updated business plan.

Like Jack, you’ve learned a lot about how to manage an auto repair shop since you put up your sign and saw your first customer drive up. Incorporating those lessons into a vision and plan for growing your business is an essential step in acquiring the financing you need to fuel its success.

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Auto Repair Business Plan Sample

Nov.11, 2016

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Table of Content

Do you want to start an auto repair shop business?

Are you thinking of starting an auto repair shop? Well, auto repair is one of those businesses that allow you to earn considerable profits even by managing a small team. The business provides repair and maintenance services for automobiles. Moreover, in many cases, auto repair shops also offer aftermarket modifications and upgradation services.

So, if you have made up your mind to enter this venture, you should first prepare a auto repair shop business plan . If you don’t know how to open an auto repair shop or how to make an accurate auto repair shop business plan , you can take help from here.

The essence of an Auto Repair Shop Business Plan

Over the years, we have been monitoring the operations and success of some auto repair shops in a bid to determine the strategies that they use to grow their enterprises. Here are some of the findings that we feel will have a great impact on your new auto repair shop.

• Understand the market needs and tailoring the services right
• Managing their resources well
• Embracing new technology

It is important that you learn how to cope with these problems to business continuity plan checklist reigning supreme and achieve your short and long-term goals such as achieving financial stability. Here are some of the challenges that you will face if you venture into this business without a proper auto repair shop business plan.

Scalability Issues

As the auto business grows and attracts more clients, you will encounter many challenges that need to be responded to well. Simple mistakes can bring down your business no matter the success that you have achieved so far. For instance, an increase in customers can lead to the lack of enough space to store business the various materials. The most plausible solution to such a problem is by expanding your workspace or renting a large facility.

A auto repair shop business plan is not complete if it does not give instructions on how scalability challenges or issues will be resolved. As mentioned earlier, we have been monitoring some facilities over the last three years. The research has given us an in-depth understanding of the industry, and we will use the same knowledge to come up with credible recommendations that you can use to jump the hurdles.

In this blog, we’re providing a sample auto repair shop business plan of a startup, Auto Fix & Services.

Executive Summary

2.1 the business.

Auto Fix & Services will be a registered and licensed auto repair shop in Austin. The business will provide usual repair and maintenance services ranging from oil change to parts replacement. The business will also offer car modification and upgradation services such as window tinting, installing air filters, etc.

2.2 Management of auto repair shop

Running an auto repair shop requires a relatively smaller team. Still, you need to have a proper management plan. Because, without strict supervision, your workers may do some negligence during repair work – resulting in losing your customer’s trust.

The best way to ensure efficient management is to create a comprehensive auto repair shop business plan . In which you’ll list all the details of how to start a auto repair shop and how to manage it successfully.

2.3 Customers of auto repair shop

Before exploring how to open up a auto repair shop you should think of who’ll be your customers. As that will enable you to do the relevant preparations.

Auto Fix & Services identified its customers as the following groups:

• Professional Automobile Drivers
• New Car Owners (Households/ Individuals)
• Used Car Owners (Households/ Individuals)

2.4 Business Target

• To achieve an NPS score above 80 within two years of our launch
• To achieve a CSAT score of 95 to 98% within a year of our launch
• To earn a net profit margin of $24.5k per month by the end of the third year of our launch

Company Summary

3.1 company owner.

Auto Fix & Services will be owned by Robin Redford. Robin is a talented person with exceptional managing skills. He started his career by working in an auto repair shop as an auto mechanic. After working for four years, he got promoted to a managing post. However, he served as a manager for just three years and eventually decided to start his own business.

3.2 Why the auto repair shop is being started

Due to a great demand for trustworthy auto repair works, Robin decided to start his own shop. By starting a auto repair shop Robin wanted to make considerable profits and introduce 100 percent reliable services.

3.3 How the auto repair shop will be started

Step1: Write Auto Repair Shop Description

To start an auto repair shop, the first step is to make a detailed auto repair shop business plan . For that purpose, you can read any example auto repair shop business plan available on the web like this sample business plan for auto repair shop. Or you can hire a professional to make your auto repair shop business plan .

Step2: Make The Arrangements

The second step is to get the licenses and permits to start an auto repair shop. After getting his business registered, Robin will rent a facility to turn it into a repair shop. At the same time, he’ll procure the machinery and tools required to provide his services.

Step3: Recruit Your Staff

Robin will hire the expert and certified auto mechanics for his shop. The complete list of his employees will be given in the upcoming sections.

Step4: Promote & Market

After that Robin will devise his sales strategy to reach out to his customers. He has decided to offer several discounts in the startup phase to get more and more customers.

Step5: Ensure Strong Web Presence

Lastly, you have to ensure a strong online presence so that people can find you whenever they search for the relevant services on Google.

The costs required to carry out all of the above steps are provided in the following table:

Owning your own auto repair shop allows you to offer a wide range of services. From this business plan for auto repair shop , you can see the services provided by Auto Fix & Services.

• Automobile engines
• Automobile exhaust systems
• Automobile brakes
• Automobile radiators
• Ignition System
• Electric repairs
• Spark plug, fuel cap, and others
• Tire pressure monitoring
• Wheel alignment
• Regulating radiator fluid, brake fluid, transmission fluid, etc.
• Maintaining car’s air conditioning system
• Installing Efficient air filters
• Installing the latest stereo system
• Brake discs
• Backup camera
• Turbochargers and more
• Seat covers
• Dash covers
• Fuel consumption meters
• Steering wheel covers

Marketing Analysis of Auto Repair Shop

Before opening an auto repair shop business plan you should carry out detailed marketing analysis to explore the market trends and the competitors’ strategies. This critical examination will help you in introducing competitive aspects for your own shop. Moreover, in your auto repair workshop business plan you should also identify the groups of your target customers so that you can devise your policies and pricing plan accordingly.

If you are starting an auto repair shop business plan but don’t know how to write a business plan for auto repair shop, you can take help from here. However, if you think that you don’t possess the skillset to make an accurate marketing plan, you should prefer hiring a professional marketing analyst.

5.1 Market Trends

According to SBDCNet, nearly 160k auto repair and maintenance shops are running in the United States – generating a collective annual revenue of $115 billion. The demand for such services is increasing because of an overall increase in automobile purchases. Along with the fact that cars need regular maintenance after a certain mileage. And that maintenance and upgradation cannot be done without proper space and machinery.

5.2 Marketing Segmentation

Auto Fix & Services divided its target market into separate groups to study their needs and expectations thoroughly. The detailed marketing segmentation done by them is provided below:

Business plan for investors

5.2.1 professional automobile drivers.

This will be the group of our major target customers. Professional automobile drivers such as Uber drivers, taxi drivers, bus drivers, and others, need car maintenance and repair services much frequently than all other groups. It is because of their long hour driving and large mileage. Moreover, this group is also expected to be a significant buyer of our car parts and accessories.

5.2.2 Used Car Owners (Households/ Individuals)

Our second target customers will be the owners of used cars. People who buy used cars often get the old parts such as seat covers, engine, brakes, replaced by newer ones. Thus, they are expected to avail of all of our services especially car upgradation and repairs.

5.2.3 New Car Owners (Households/ Individuals)

Lastly, new car owners who would want to upgrade their automobiles will also be our target customers. This group is usually very careful about their cars. Thus, they are expected to avail of our regular maintenance services more frequently. Moreover, they’ll also acquire our upgradation services. https://ticket-drama.fun/buytickets/onegin/?date=9.07.21/kiev

To turn these people into potential/ repeat purchasers, we’ll offer several benefits to them. The biggest benefit our repeat customers will get is free video consultation. Whenever they encounter any problem while being far away from us, we’ll help them to resolve the issue themselves. Moreover, we’ll also send our auto mechanics to their location if the fault is of complicated nature.

5.3 Business Target

Our business targets are:

• To earn a net profit of $24.5k per month by the end of the third year
• To obtain a repeat purchase rate of 80% throughout our service years
• To achieve and maintain a CSAT score of 95 to 98% within a year of our launch
• To achieve a Net Promoter Score of above 80 within two years of our launch

5.4 Product Pricing

Our prices are almost in a similar range as that of our competitors. However, we still expect to get more customers due to our competitive advantages.

Marketing Strategy

After you have fulfilled all the requirements to open an auto repair shop business plan , you should start thinking about its promotion. To get introduced to a larger audience, you need to develop an accurate auto repair shop marketing plan.

For your help, we’re providing the marketing strategy planned by Auto Fix & Services.

6.1 Competitive Analysis

• Our auto mechanics hold ASE certification. All of our workers are highly experienced and skillful.
• We also provide remote auto repair services throughout Austin. However, this service will be provided in special cases where bringing the vehicle to our facility wouldn’t be feasible.
• Only we in the entire city provide video call assistance so that customers can repair minor faults themselves. However, this service will only be valid for return customers and repeat customers.

6.2 Sales Strategy

• We’ll advertise our startup through posters, Google Local ads service, and social media.
• We’ll ensure a strong web presence to reach out to a wider audience and to keep track of our return/ repeat customers.
• We’ll offer a 50% discount on our services for the first month of the launch.
• We’ll offer a 15% discount on automobile accessories for the first two months of our launch.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan.

It is essential to make a list of the employees you’ll need to run your business. When you write business plan auto repair shop you must make your personnel plan enlisting required staff and their expected salaries.

7.1 Company Staff

Robin will hire the following people for his assistance:

• 1 Supervisor to help in the management
• 8 Auto Mechanics to perform the major work
• 2 Technicians to provide overall support
• 1 Database Manager to manage company’s sites and arrange video calls
• 1 Accountant to maintain financial records
• 1 Front Desk Manager/ Call Operator
• 2 General Assistants
• 1 Sales Executive

7.2 Average Salary of Employees

Financial plan, great service.

Great service. Good turnaround time and quality work. Thanks!

The last thing to do before launching your auto repair shop business plan is to create a detailed financial plan. Your financial plan should describe the expenses, net worth of your startup, projected loss and profits, and balance sheets for at least three years.

Since startup and running costs for auto repair shops are usually high, it is essential to devise a trajectory to achieve your financial goals – provided the limited resources, sales, and investment. Understanding the importance of an accurate financial plan, Robin hired a professional financial analyst to create an auto repair shop business plan . The financial plan developed by him is given here to provide you an idea of auto repair shop finances.

8.1 Important Assumptions

8.2 brake-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

Download Template Business Plan for Auto Repair Shop in pdf

Professional writers OGS capital specialized also on a theme such as auto parts business plan , starting an auto dealership business the right way , car dealership business plan , car wash business plan , car shop business plan , car accessories business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Executive Summary of an Auto Repair Shop (Example)

• December 29, 2023
• Business Plan , Executive Summary

The executive summary is a critical component of your bike shop business plan. It offers a concise yet comprehensive view of your business within the bike retail and service market, including competitive analysis and financial forecasts. This section is crucial for attracting investors and partners, as it highlights your business’s potential and strategic plans.

A two-slide PowerPoint presentation is recommended for this summary. The first slide should detail your business model, covering the range of products and services unique to your bike shop. The second slide should focus on your management team’s qualifications and financial goals, giving a snapshot of anticipated market performance and growth prospects.

Auto Repair Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary: Page 1

Business Overview

In the executive summary of an auto repair shop business plan , the business overview section is crucial for detailing the shop’s offerings and operational capabilities. This includes the shop’s location, facility features, range of services, brand specialization, and any additional customer-focused services.

For an auto repair shop, it’s important to emphasize the expertise in specific vehicle brands, the advanced technological equipment available, and the comprehensive nature of services offered, from routine maintenance to complex repairs. The inclusion of customer convenience features, such as loaner vehicles and service guarantees, also plays a significant role in differentiating the shop in the market.

Example: AutoFix Hub, situated in a prime automotive district, operates from a 10,000 sq ft workshop equipped with state-of-the-art diagnostic and repair tools. Specializing in European brands like BMW and Mercedes-Benz, the shop offers a full spectrum of services and stands out with additional customer conveniences like loaner vehicles and a 90-day service guarantee.

Market Overview

The market analysis section should assess the size, growth, trends, and competitive landscape of the auto repair industry. It’s crucial to provide insights into the industry’s dynamics, such as the demand for specialized repair services due to increasing vehicle complexity and the shift of consumer preference towards independent repair shops.

Understanding the competitive environment, including the presence of major chains and local service providers, is vital for identifying the shop’s market position and opportunities for growth.

Example: The US auto repair market, valued at $76.8 billion, is growing steadily. AutoFix Hub is positioned in a market with 281,000 shops, differentiating itself through specialized services for European models. The shop capitalizes on the trend of consumers preferring independent shops for better value, distinguishing itself among 7 key local competitors.

Executive Summary: Page 2

Management Team

In this section, the focus is on the background and expertise of the management team leading the auto repair shop. It’s important to highlight their experience in the automotive industry and their roles within the shop.

The management team’s qualifications are a key aspect of the business’s ability to deliver quality services and manage operations efficiently. This part of the summary should instill confidence in the team’s capabilities to drive business growth and maintain high standards of service.

Example: The CEO, a co-founder of AutoFix Hub, brings over 15 years of industry experience, including management roles at leading auto repair chains. The Lead Mechanic, also a co-founder, possesses extensive expertise in servicing European models, ensuring high-quality repair work and customer satisfaction.

Financial Plan

The financial plan overview provides a snapshot of the auto repair shop’s revenue and profit targets. It outlines the financial goals, including specifics like aiming to reach $7.8 million in annual revenue with a 23% EBITDA margin by 2027.

This section reflects the shop’s financial health and potential for profitability, taking into account market positioning, service offerings, and operational strategies.

Example: AutoFix Hub aims to achieve $7.8 million in yearly revenue with a 23% profit margin by 2027. This financial goal is underpinned by strategic expansion of services, targeting high-value vehicle brands, and leveraging the growing consumer trend towards independent repair shops for specialized services.

Privacy Overview

Auto repair shop business plan template

Download this auto repair shop business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our auto repair shop business plan template

Our auto repair shop business plan template gives you the structure to write a professional plan.

Not accustomed to writing business plans? Our auto repair shop business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a auto repair shop in France, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

7 day free trial. No credit card required. Auto repair shop business plan template available with paid plans only.

How to use this auto repair shop business plan template

Edit the auto repair shop business plan template online, or download it.

There are 3 ways to use this template:

• Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
• Download in PDF: if you're just after a little inspiration, you can download the auto repair shop business plan template in PDF to read over it
• Download in Word format: want to edit your plan on Word? Simply export the auto repair shop business plan template to Ms Word (.docx) format

Auto repair shop business plan template content

This template includes a complete auto repair shop business plan example, with a financial forecast and the following sections:

• Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
• Company: this section lays out the structure of your business, including its location, management team and legal form
• Products and services: here, you'll give an overview of the repair, diagnostics, painting and maintenance services offered by your auto repair shop
• Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
• Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: this step lays out the company's operational organisation, including the recruitment plan
• Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statement).
• Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Executive summary of the auto repair shop's business plan

The executive summary gives the reader a clear and concise overview of your business idea.

Our auto repair shop business plan example's executive summary is formed of the following subsections:

• Business overview: in this subsection, we outline who the auto repair shop founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
• Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the auto repair shop's owners and explain who they might target (our auto repair shop business plan template targets residents of Louvigny and the surrounding area as well as passing motorists)
• Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the auto repair shop over the first 3 years of operation
• Our ask: in this subsection, we outline the amount of financing required to start the auto repair shop and how it's going to be funded (the founders are seeking a bank loan to start their auto repair shop)

Company overview included in our auto repair shop business plan sample

This section lays out the structure of your business, including its location, management team and legal form.

Our auto repair shop business plan template's company section is formed of the following subsections:

• Structure & Ownership: in this subsection, we outline who the auto repair shop shareholders are, what legal form they've chosen for the business
• Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
• Management Team: in this subsection, we give an overview of the background of each of the auto repair shop's founders and explain how they met and why they decided to start a company together

Products and services offered by the auto repair shop

The products and services section is where you will present the services offered by your auto repair shop.

In our auto repair shop business plan template products and services section, we cover:

• Maintenance: a maintenance package available for new or used cars including oil change and repairs
• Spare parts: sale of parts and tires with a guaranteed 48 hour delivery for parts which are out of stock
• Repair service: car repair services available including brake repairs, emergency repairs, electrical diagnostics, bodywork and paint
• Breakdown service: assistance in the event of a breakdown as well as access to a courtesy vehicle whilst repairs are ongoing

Market analysis for the opening of the auto repair shop

The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)

Our auto repair shop business plan example's market analysis section is formed of the following subsections:

• Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
• Target market: in this subsection, our founders explain who they view as their ideal customers (our auto repair shop business plan template targets residents of Louvigny and its surroundings as well as passing motorists) and why they chose to target them
• Competition: in this subsection, we take a look at the direct competition (other garages nearby) to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of a new auto repair shop
• Regulation: in this subsection, we give an overview of the main regulation applicable to our auto repair shop

Setting the strategy for our auto repair shop

This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.

Our auto repair shop business plan template strategy section is formed of the following subsections:

• Pricing: in this subsection, we explain how we set the prices of our main categories of services (maintenance, breakdown services, car repairs, bodywork and paint) and the rationale behind our choice
• Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among auto repair shop customers
• Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
• Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our auto repair shop and outline how we intend to mitigate them

Operations section of the auto repair shop business plan template

This part lays out the company's operational organisation, including the recruitment plan.

Our auto repair shop business plan example's operations section is formed of the following subsections:

• Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsabilities of each of our auto repair shop staff members
• Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
• Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them

Financial plan included in our auto repair shop business plan template

This section presents the expected financial performance of the auto repair shop over the next 3 years.

Our auto repair shop business plan example's financial plan is formed of the following subsections:

• Start-up funding: in this subsection, we list the cost of each item required to launch the auto repair shop
• Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the auto repair shop's financial forecast
• Sales forecast: in this subsection, we detail the expected revenues and growth rate for our auto repair shop in the coming years
• Cost structure: in this subsection, we list all the expenses required for our auto repair shop to operate smoothly
• Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our auto repair shop over the next 3 years
• Projected cash flow statement: in this subsection, we analyse the expected cash generation of the auto repair shop
• Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet

Appendices of the auto repair shop business plan template

This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Our auto repair shop business plan template's appendices include:

• A Maturity profile chart showing the principal repayments of their loans over the next 3 years
• A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations

Auto repair shop business plan template sample

Executive summary, business overview.

Louvigny Auto will be a generalist car garage offering both the maintenance and repair of new and used cars. 

The garage seeks to welcome all vehicles, regardless of the make or age of the car. 

We will offer a courteous and personalized service, making sure to carry out any necessary service needed to maintain the car in question, and will also offer professional advice to our customers. 

The company will be located at 25 Route de Louvigny in the town of Louvigny, which is considered as one of the main "commuter towns" of Caen.

The Route de Louvigny is one of the most popular roads among employees travelling regularly between Caen and Louvigny. It's also located near the historical Prairie Racetrack, the Exhibition Centre, the Malherbe Stadium, and The Zénith concert hall.

The garage is, therefore, very visible to those moving in and out of Caen and close to major events such as concerts and soccer matches, which is ideal if someone's car breaks down, as it can provide assistance quickly and efficiently. 

The company's legal structure is as a limited company. It will have two partners, Valentine D and Loïc C., who both hold 50% of the shares. 

Having worked in the same garage together for almost five years, the two managers know each other very well and their individual skills complement one another's perfectly. 

Valentine D. worked as an executive assistant in a local garage for 10 years. She will be in charge of the administrative and commercial management of the company.

Loïc C. has 7 years of experience in mechanics. He will be in charge of the auto-repair workshop, and more broadly the operational part of the company.

Market Overview

Domestic Market

It is estimated that 83% of the 67 million people living in France own a car - making it a country filled with motorists. For many, the car is an everyday necessity.

The steep increase in how frequently and how far people travel, coupled with the longer lifespan of cars on the road means there's a higher demand for car garages than ever before.

With the average lifespan of a car being around 8.5 years, regular maintenance and inspection is required to ensure it continues to function smoothly. 

At 32.7 million, privately owned vehicles make up the majority of all cars registered within France. They're followed by commercial cars, estimated at 6.1 million, and 1 million light-duty vehicles (including pick-up trucks and vans), which also require the services of a car garage. 

Since the 2000s, the French have favoured the purchase of brand new cars over used vehicles - with 2.11 million new cars sold in 2017. 

This is due, in particular, to the scrappage bonuses introduced by the government, as well as a tightening of rules to bring car owners in line with changes regarding technical inspections and environmental regulations. 

As for the budget each car owner must set aside for maintenance, the average annual cost was said to vary from €872 to €1,801 in 2018, depending on the type of car.

Garage visits have also become more frequent due to the increasing presence of electric cars, which explains why individuals can no longer afford to forgo specialised labour.

According to INSEE figures, there are 41,600 maintenance and auto repair businesses throughout France - with about 1 garage for every 1,600 inhabitants.

The French car repair market is not very cyclical. However, we have noted a slight decrease in overall revenues between 2010 and 2015, due to fewer road accidents.

From 2016, the overall turnover of the auto repair market increased by 4% - from 21.2 billion euros in 2016, to 22.1 billion euros in 2017.

In terms of purchasing habits, a car owner is most likely to seek out a car garage they already know and trust when they need work done on their car - so it's very important to provide a quality service that builds customer loyalty. 

On the other hand, for incidents such as emergency breakdowns, proximity is an essential consideration because the need is immediate.

Local Market

The Caen agglomeration alone has more than twenty garages. There is, however, only one other garage in Louvigny - with five more located in the neighbouring towns.

According to Statista.fr, there were 145,934 new passenger car registrations in Normandy in 2017, with the local market representing about 7.2% of the French market. 

As Normandy is a rural region, having a vast number of car garages is essential.

We have identified two customer segments for our garage:

• Residents of Louvigny and the surrounding area : these customers are residents located around Caen who want a garage they can trust. Their needs include maintenance, repairs, spare parts, and advice.
• Passing motorists who break down:  these motorists often need emergency repairs because they have broken down whilst passing through the region. The necessary services here include mainly towing and repairs.

Financial Highlights

We expect our company to be profitable at the operating level from the first year, and fully profitable from year 2.

We believe we can achieve a total turnover of €429,850 for year 1. We plan to develop our business over the following years, by building customer loyalty and implementing the actions indicated in our marketing plan. This should allow us to reach revenues of €454,900 in year 2 (with 5.83% of growth) and €461,600 in year 3 (with 1.47% of growth).

We expect to achieve an EBITDA of €22,499 (with a 5.23% margin) in year 1, €39,989 in year 2 (with a 8.79% margin) and €44,077 (with a 9.55% margin) in year 3.

Net operating cash flow should be positive throughout the plan, enabling us to meet our loan repayments while providing leeway for us to renew our equipment and deal with any contingencies.

The creation of our car garage will require an initial investment of €240,000. The partners will contribute €70,000 (29%) and we would like to obtain the below bank financing to fund the remaining €170,000:

• VAT Bridging loan: €35,000
• Medium-term financing: €135,000

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Quite frankly excellent because I was able to finalize my business plan in less time than expected. This software offers a very coherent and complete approach to writing your project.

It is a very well designed software that allows you to visualise each step of your project, understand if the idea is viable or not and think about the steps needed to start your business.

The software is just impeccable. Of course, it meets the requirements of people starting a business. In addition to having a tool for putting together a proper financial forecast, there is also a tool to help write the business plan.

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Auto repair shop business plan template faq.

A auto repair shop business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.

It consists of two main parts:

• A written part that presents, in detail, your auto repair shop business, the team, your strategy, and your medium-term objectives.
• A financial forecast that highlights the expected profitability of the auto repair shop and the initial funding requirements.

The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a auto repair shop, writing a business plan is a must-have in order to reduce the risk of failure of your project.

Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your auto repair shop.

Writing a auto repair shop business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:

• You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
• You may encounter writer's block (especially if it's the first time you're writing a business plan for your auto repair shop)
• You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
• You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
• Any updates to your auto repair shop business plan or financial forecast will need to be done manually

Luckily for you, The Business Plan Shop's online platform and auto repair shop business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.

Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.

Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.

And with our forecasting software all the calculations are done for you, without errors.

The budget to start and run a auto repair shop will depend on the exact concept and location.

A small auto repair shop doing mostly repairs storage requires limited investment. A bigger garage selling a variety of spare parts as well as providing additional services will likely require a larger upfront investment and more staff to operate (the budget for hiring skilled mechanics, support staff, training and salaries all contribute to startup costs).

The cost of renting or purchasing a property for the auto repair shop will vary depending on the location. Prime locations in urban centers or busy commercial areas may have higher real estate costs, impacting the startup budget.

As an example, in our auto repair shop business plan template the total initial funding requirement amounted to €240,000 (c. $257,000 or £207,000), with the founders contributing €70,000 (c. $75,000 or £60,000).

In order to assess the exact budget for your auto repair shop idea, you need to do a financial forecast using a financial projection tool such as the one we offer .

The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:

• Access to one of the best business plan software on the market
• Access to our auto repair shop business plan template which contains a complete example of a written business plan and financial forecast to start a auto repair shop
• Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
• Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily

But you shouldn't take our word for it: try our solution for free and make your own opinion!

The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.

Some features are limited during the free trial, the main limits are:

• You can only create one business plan
• The financials of the first year are visible, but data for other years are hidden
• You can export your plan in PDF but not in Word or CSV
• No access to our business plan templates

You can create your account and start your free trial here .

Access to our template is included with all our paid subscriptions.

Please visit our pricing page to learn about this in more detail.

Other business plan templates and resources to discover

Auto Repair Shop Business Plan Sample

Have you ever considered opening an automotive repair shop?  Auto shops are known as businesses that have strong cash flow, and fair profits.  In this auto repair shop business plan sample we will show you what goes into developing a strong plan.  Please remember this is merely a guide, and the best business plans are fully-customized to each individual company.

1.0 Executive Summary

“Your Canadian Auto Shop” (The Company) is a Tire and Customization Shop with nine locations spanning across British Columbia, Alberta and Saskatchewan.  Over the past ten years the company has gained recognition across Western Canada as a leader in tire, wheel, rim and accessory customization.  With a sprawling population, the City of Saskatoon has been identified as an ideal location for Your Canadian Auto Shop’s tenth Tire and Customization Shop.

With the support of senior management, Ralph Walzek  will open an incorporated business, and raise $122,750 through the Canada Small Business Financing Program (CSBFP) for the equipment and leasehold improvements required to successfully launch this location.  Ralph Walzek  will receive an annual management salary of $75,000, and 20% of the Saskatoon Location’s net income.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.  This demand, and low-barriers to entry has resulted in a level of saturation within the industry; notwithstanding, Your Canadian Auto Shop has established a process which sets them apart in this competitive landscape.

By offering affordable customizations, unmatched selection, a culture of customer satisfaction, and a convenient selection of payment options, Your Canadian Auto Shop stands out in an otherwise crowded marketplace.  Regardless of this increasingly competitive landscape, the company has continued to grow year after year.  In partnership with senior management, Ralph Walzek  will utilize over two decades of professional management experience to guarantee the success of this tenth Your Canadian Auto Shop location.

According to Statistics Canada’s 2020 Consensus, Saskatoon is currently the third fastest growing metropolitan region in Canada.  With a thriving business sector, Saskatoon is an attractive and vibrant city that is a primary engine for the province’s wider economy.  With an experienced management team, reputable brand, profitable business model, and strong demographics, this location is positioned to be a flourishing Tire and Customization shop for many years to come.  Furthermore, Ralph Walzek  is committed to being a fair and equitable employer, to support the local labour market, and the community of Saskatoon at large.

2.0 Business Overview

Your Canadian Auto Shop was established 10 years ago in Edmonton, Alberta.  Since then, the company has grown to nine locations across Western Canada, and is poised to continue it’s track record of growth.  Ralph Walzek  seeks to incorporate a company and secure a $122,750 loan for the equipment and leasehold improvements of this tenth location in Saskatoon, Saskatchewan.  This incorporated business will operate under the Your Canadian Auto Shop brand in the Tire and Customization Industry.

2.1 Industry Overview

North American Industry Classification System (NAICS) Code – 44132

Tire Dealerships

Establishments: 2,383

0-99 Employees: 100%

Average Revenue: $1.1 million

Profitable: 76.1%

This industry comprises establishments primarily engaged in retailing tires and tubes. These establishments also typically provide complementary services, such as tire mounting and wheel balancing and aligning.

2.2 Mission Statement

OUR MISSION IS TO PROVIDE THE CITY OF SASKATOON WITH LEADING AUTO REPAIR SERVICES.

2.3 Goals and Objectives

• Approval from TD Business Banking to proceed with incorporation
• Ralph Walzek will incorporate a business and provide documentation to CIBC
• Secure $122,750 through the Canada Small Business Financing Program
• Secure a location for the shop in Saskatoon, Saskatchewan
• Purchase all equipment and inventory outlined in “6.0 Financial Plan”
• Recruit one Sales Rep and Tire Technician from the Regina location, as agreed upon
• Open for business on July 1, 2021

2.4 Key Success Factors

Safety in the Workplace : Focus on maintaining safe working conditions.  In addition to protecting our staff, our location’s image revolves around safety and consciousness.

Inventory Management Skills : Able to control stock on hand and install accurate costing systems.

Employment of Skilled Automotive Technicians : Access to skilled technicians in a workforce that is becoming more technologically advanced.

After Sales Service and Support : Provide superior customer service in a segment that can be very competitive.

Location Close to Key Markets: Location in the heart of Saskatoon, therefore determining  market size, average customer income, vehicle count, population, and competition.

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3.0 Staffing

AUTOMOTIVE TIRE TECHNICIAN

• Interact with Commercial Sales Consultants and/or Counter Sales Service Associates to obtain work orders and commercial customer service specific requirements.
• Install, balance, rotate and repair tires at Saskatoon location in a safe and efficient manner.
• Support fellow Tire Technicians and Sales Rep as required.
• Install and service all tires up to qualifications.
• Deliver customer tire maintenance program to businesses by visiting assigned locations to complete fleet checks.
• Accurately complete all documentation/paperwork in relation to service work provided so that efficient billing can be conducted.
• Inventory, maintenance, cleaning and other duties as assigned by management for both the shop and the service trucks.
• Ensure service vehicle and all equipment is maintained in a safe, neat and clean manner at all times.
• Assist the shop associates to ensure the shop and service vehicles are kept in a safe, neat and clean manner at all times both inside and outside.
• Conduct efficient Receiving/Shipping of all inventories that enters and leaves the shop.
• Professionally interact and communicate with customers to explain service details and advise on any additional service maintenance that has been identified.

Requirements

• Internal Candidates – Intermediate PLT Skills
• Valid Driver’s License with a clean abstract
• Basic mechanical aptitude and previous exposure to automotive work
• Interest in further expanding knowledge about the tire industry
• Well developed people skills with the ability to professionally interact with customers
• Maintain a clean and professional personal appearance and grooming.
• Farm and small OTR tire experience preferred.

4.0 Products & Services

We specialize in getting customers the right tire that suits the vehicle and application. Snowflake Rated All Terrain Tires, All-Weather Tires, All-Season Tires, Performance Tires, Track Tires, Mud Tires, All Terrain Tires, Rugged Terrains, Mud Boggers, Winter Tires, Semi, Agricultural, and the list goes on.  We are committed to providing tires for every price point.

WHEELS & RIMS

Your Canadian Auto Shop has access to all types of rims and custom wheels. We are factory direct, which means huge discounts and quick turnaround times for our customers. We specialize in high offset and low offset wheels, staggered wheel fitment, American muscle, tuner cars, winter rim & tire combos, concave wheels, deep dish, and all sizes.  We are confident our offering of Armed Brand Wheels will be well received in the Saskatoon area.

ACCESSORIES

• Multiple brands of lift and leveling kits
• Multiple brands of exhaust tips
• Multiple brands of mud flaps
• Multiple brands of tonneau covers
• Fender Flares
• Exhaust Systems
• Multiple brand of front and rear bumpers
• Cold air intake
• Multiple brands of side steps

5.0 Operations

Securing a strategic and busy location, prominently visible within Saskatoon, will be a key element of our operations.  Not only will our shop be easily accessible, but also well positioned; therefore, increasing market exposure.

Ensuring a safe and healthy workplace will be our highest priority.  Owner and Location Manager, Ralph Walzek  has extensive experience in ensuring the health and safety of his team members.  “Safety starts at the top” and by utilizing over two decades of safe work practices, Ralphwill lead by example in day to day operations.  Each and every morning a safety meeting will be conducted to review best work practices, and weekly topics; while everyone on the team will be encouraged to participate.

5.2 Payment & Financing

• Payment with cash
• Payment via credit cards, point of sale machines, or EFT
• Payment via mobile money transfer
• We also have in place Driver Capital no credit check financing

5.3 Hours of Operation

Monday 9AM – 6PM

Tuesday 9AM – 6PM

Wednesday 9AM – 6PM

Thursday 9AM – 6PM

Friday 9AM – 6PM

Saturday 9AM – 5PM

Sunday – CLOSED

5.4 Equipment

Please refer to “6.0 Financial Plan” for a complete list of required equipment.

Have Questions? Looking To Get Started?

• Your Name *
• Phone Number

6.0 Market Analysis

Over the coming years, operators in the Tire Dealers industry in Canada are set to benefit from improving economic conditions, particularly within several of the industry’s key commercial markets, as the Canadian economy recovers from the COVID-19 pandemic.

With expected growth in corporate profit over the five years to 2025, which will be coming off a relatively low base level, many companies are expected to expand or upgrade their existing vehicle fleets and generate significant demand for retailers of tires, repair services and miscellaneous vehicle parts and accessories. Moving forward, rising levels of disposable income are expected to bolster demand for industry services, as these trends are anticipated to enable a greater number of Canadian consumers to upgrade existing vehicles, causing the industry’s customer base to expand.

As a result of these factors, IBISWorld projects industry revenue will increase at an annualized rate of 3.0% to $5.5 billion over the five years to 2025.

Commercial markets are anticipated to expand as industrial production growth is expected to occur within the Canadian economy. Moreover, corporate profit in Canada is forecast to increase at an annualized rate of 8.3% over the five years to 2025, enabling many of the industry’s transportation and wholesaling clients to increase investments in their vehicle fleets.

To further strengthen demand from this segment, operators are expected to grow business relationships and secure long-term distribution contracts over the next five years. For example, national and regional repair garages are expected to work to gain a competitive edge against smaller shops by entering into long-term commercial relationships with tire dealers.

Given the essential role that cars, trucks and other vehicles play in everyday life, overall demand for vehicle support services is projected to expand over the next five years, in line with rising population figures and increased consumer spending.

In turn, these positive trends are expected to support demand for industry operators. Industry profit is also expected to increase marginally over the next five years, as the profit margin is expected to recover from a low level in 2020.  At the same time, rising levels of disposable income are anticipated to encourage many consumers to purchase tires and repair services from external car dealerships or mechanics.

6.1 Market Trends

• Amid COVID-19, industry profit is expected to temporarily decline
• Despite high competition, revenue has expanded over the past five years
• New vehicle sales are expected to grow from a low base level in 2020
• The industry will likely benefit from consistent growth in the Canadian population
• Small-scale operators are expected to continue entering the tire-dealer market
• Industry profit will likely decline as operators seek to gain market share by offering discounts on products and services

6.2 Competitive Advantage

The following list outlines the three competitive advantages that will differentiate Your Canadian Auto Shop Saskatoon from the competition:

• We are uniquely equipped to utilize the sales from all other stores to give us substantial buying power in obtaining our products cheaper from suppliers; subsequently, allowing for more affordable and competitive pricing for customers.
• Through our agreement with Driver Capital No Credit Financing, we are able to appeal to a vast customer base by eliminating insufficient credit as a barrier to purchase.
• We will be the only dealer in Saskatoon offering the extremely popular brand, Armed Wheels.

6.3 Risk Analysis

Total vehicle-kilometres.

Tires most often degrade from extended use and age. As a result, the more a vehicle is driven, the more often replacement tires or retreads will be required. The number of total vehicle-kilometres was expected to increase in 2020. However, due to the COVID-19 pandemic, people have reduced nonessential travel and have commuted less by car, leading to an expected decline in the number of total vehicle-kilometres driven, which poses a potential threat to the industry.

World price of crude oil

High gasoline prices, which are dictated by crude oil price trends, generally decrease vehicle sales and cause consumers to switch to alternative modes of transportation. For instance, consumers may use public transportation when gasoline prices are high instead of driving their own vehicles and incurring the expense of gasoline. As a result, when consumers use their cars less, they will not require tires as quickly, thus decreasing industry demand.

Per capita disposable income

Per capita disposable income influences the timing and value of tire purchases. Consumers with more disposable income are quicker to replace worn tires and are more likely to purchase expensive, high-performance tires. Alternatively, consumers with less disposable income may be hesitant to purchase expensive products or to replace worn tires.

New vehicle sales

New vehicles are sold with a set of factory-installed tires. Increases in vehicles sold boost industry revenue for the long term as it increases the base of potential vehicles that need replacement tires. In the short term, new cars typically do not need replacement tires. When consumers buy new vehicles over maintaining their current ones, industry revenue is negatively affected. As of its last update, new vehicle sales were expected to increase in 2020. Due to the coronavirus pandemic, however, consumers are expected to purchase fewer new vehicles, which represents a potential opportunity for the industry. 3

7.0 Sales & Marketing Plan

Our Sales & Marketing Plan is founded on the strength of Your Canadian Auto Shop’ well-established brand.  The company has a proven marketing strategy that targets multiple social media platforms in order to attract an array of target customers. The Saskatoon shop will have the benefit of people already recognizing the name and stellar reputation of the Canadian Custom Autoworks’ brand.  Our Saskatoon Shop will leverage the brand through signage, placement on the company’s website, and awareness on social media.

7.1 Target Customers

HOUSEHOLD CONSUMERS

The Tire Dealers industry in Canada serves a broad range of customers, with everyday household consumers accounting for the vast majority of the industry’s total revenue.

• 18 – 65 years of age
• All income levels, as we deal in lower level, mid-level and premium level products
• Resides in the Saskatoon Metropolitan Region (population of 325,806 – 2019 Q4)
• Major Ethnicities (European 72.2%, Aboriginal 11.2%, South Asian 4.7%, Filipino 3.9%) 4
• Drives a motor-vehicle

BUSINESSES FOR END USE

Businesses for end use, including trucking companies, construction companies, farmers and mining outfits, represent the second-largest source of revenue for industry operators.

• We will establish relationships with local companies, in an effort to provide wheels and tires for their fleets.

DEALERSHIPS

• Kia of Saskatoon, Ens Toyota, Ens Lexus, Oakwood Nissan, Bema Autosport BMW, Porsche Centre Saskatchewan, Saskatoon Mitsubishi, Mercedes-Benz Saskatoon, Saskatoon South Hyundai, Volvo Cars Saskatoon, Acura Centre of Saskatoon, Jaguar Saskatoon, Mid City Auto Centre, Saskatoon Auto Connections Sales Centre, Wheaton GMC Buick, Subaru of Saskatoon, Studio Fiat, Mainway Mazda, Bright City Auto Sales

7.2 Key Channels

We understand the nature of our referral based industry.  Our focus is to provide the most professional experience available, consequently laying the groundwork for a consistent stream of referrals.

SOCIAL MEDIA

Social media will reach our target customers in two ways; pre-established Your Canadian Auto Shop pages will drive wider brand recognition and messaging, while our location will create a Facebook page for our community of direct customers in the Saskatoon area.

GOOGLE MY BUSINESS

A Google My Business account will be established to receive reviews from customers, to assist customers with finding the shop, to keep the public up to date on hours of operation, and provide additional contact information.

GOOGLE SEARCH

The company’s website will be imperative in assisting buyers through the sales process.  By learning more about our products in one central place, people can transition from prospects to paying customers quickly.

Let's Get Started!

7.3 swot analysis.

8.0 Financial Plan

8.1 Five Year Pro Forma Cash Flow Statement

Are you interested in seeing more business plan samples? Here is a variety of business plan samples   to help guide you through your entrepreneurial journey.  If you need any help in developing a custom business plan contact us here!

How can we help you?

Get in touch with us or visit our office

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A Plan to Remake the Middle East

While talks for a cease-fire between israel and hamas continue, another set of negotiations is happening behind the scenes..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

From New York Times, I’m Michael Barbaro. This is The Daily.

[MUSIC CONTINUES]

Today, if and when Israel and Hamas reach a deal for a ceasefire fire, the United States will immediately turn to a different set of negotiations over a grand diplomatic bargain that it believes could rebuild Gaza and remake the Middle East. My colleague Michael Crowley has been reporting on that plan and explains why those involved in it believe they have so little time left to get it done.

It’s Wednesday, May 8.

Michael, I want to start with what feels like a pretty dizzying set of developments in this conflict over the past few days. Just walk us through them?

Well, over the weekend, there was an intense round of negotiations in an effort, backed by the United States, to reach a ceasefire in the Gaza war.

The latest ceasefire proposal would reportedly see as many as 33 Israeli hostages released in exchange for potentially hundreds of Palestinian prisoners.

US officials were very eager to get this deal.

Pressure for a ceasefire has been building ahead of a threatened Israeli assault on Rafah.

Because Israel has been threatening a military offensive in the Southern Palestinian city of Rafah, where a huge number of people are crowded.

Fleeing the violence to the North. And now they’re packed into Rafah. Exposed and vulnerable, they need to be protected.

And the US says it would be a humanitarian catastrophe on top of the emergency that’s already underway.

Breaking news this hour — very important breaking news. An official Hamas source has told The BBC that it does accept a proposal for a ceasefire deal in Gaza.

And for a few hours on Monday, it looked like there might have been a major breakthrough when Hamas put out a statement saying that it had accepted a negotiating proposal.

Israeli Prime Minister Benjamin Netanyahu says the ceasefire proposal does not meet his country’s requirements. But Netanyahu says he will send a delegation of mediators to continue those talks. Now, the terms —

But those hopes were dashed pretty quickly when the Israelis took a look at what Hamas was saying and said that it was not a proposal that they had agreed to. It had been modified.

And overnight —

Israeli troops stormed into Rafah. Video showing tanks crashing over a sign at the entrance of the city.

— the Israelis launched a partial invasion of Rafah.

It says Hamas used the area to launch a deadly attack on Israeli troops over the weekend.

And they have now secured a border crossing at the Southern end of Gaza and are conducting targeted strikes. This is not yet the full scale invasion that President Biden has adamantly warned Israel against undertaking, but it is an escalation by Israel.

So while all that drama might suggest that these talks are in big trouble, these talks are very much still alive and ongoing and there is still a possibility of a ceasefire deal.

And the reason that’s so important is not just to stop the fighting in Gaza and relieve the suffering there, but a ceasefire also opens the door to a grand diplomatic bargain, one that involves Israel and its Arab neighbors and the Palestinians, and would have very far-reaching implications.

And what is that grand bargain. Describe what you’re talking about?

Well, it’s incredibly ambitious. It would reshape Israel’s relationship with its Arab neighbors, principally Saudi Arabia. But it’s important to understand that this is a vision that has actually been around since well before October 7. This was a diplomatic project that President Biden had been investing in and negotiating actually in a very real and tangible way long before the Hamas attacks and the Gaza war.

And President Biden was looking to build on something that President Trump had done, which was a series of agreements that the Trump administration struck in which Israel and some of its Arab neighbors agreed to have normal diplomatic relations for the first time.

Right, they’re called the Abraham Accords.

That’s right. And, you know, Biden doesn’t like a lot of things, most things that Trump did. But he actually likes this, because the idea is that they contribute to stability and economic integration in the Middle East, the US likes Israel having friends and likes having a tight-knit alliance against Iran.

President Biden agrees with the Saudis and with the Israelis, that Iran is really the top threat to everybody here. So, how can you build on this? How can you expand it? Well, the next and biggest step would be normalizing relations between Israel and Saudi Arabia.

And the Saudis have made clear that they want to do this and that they’re ready to do this. They weren’t ready to do it in the Trump years. But Mohammed bin Salman, the Crown Prince of Saudi Arabia, has made clear he wants to do it now.

So this kind of triangular deal began to take shape before October 7, in which the US, Israel, and Saudi Arabia would enter this three way agreement in which everyone would get something that they wanted.

And just walk through what each side gets in this pre-October 7th version of these negotiations?

So for Israel, you get normalized ties with its most important Arab neighbor and really the country that sets the tone for the whole Muslim world, which is Saudi Arabia of course. It makes Israel feel safer and more secure. Again, it helps to build this alliance against Iran, which Israel considers its greatest threat, and it comes with benefits like economic ties and travel and tourism. And Prime Minister Benjamin Netanyahu has been very open, at least before October 7th, that this was his highest diplomatic and foreign policy priority.

For the Saudis, the rationale is similar when it comes to Israel. They think that it will bring stability. They like having a more explicitly close ally against Iran. There are economic and cultural benefits. Saudi Arabia is opening itself up in general, encouraging more tourism.

But I think that what’s most important to the Crown Prince, Mohammed bin Salman, is what he can get from the United States. And what he has been asking for are a couple of essential things. One is a security agreement whose details have always been a little bit vague, but I think essentially come down to reliable arms supplies from the United States that are not going to be cut off or paused on a whim, as he felt happened when President Biden stopped arms deliveries in 2021 because of how Saudi was conducting its war in Yemen. The Saudis were furious about that.

Saudi Arabia also wants to start a domestic nuclear power program. They are planning for a very long-term future, possibly a post-oil future. And they need help getting a nuclear program off the ground.

And they want that from the US?

And they want that from the US.

Now, those are big asks from the us. But from the perspective of President Biden, there are some really enticing things about this possible agreement. One is that it will hopefully produce more stability in the region. Again, the US likes having a tight-knit alliance against Iran.

The US also wants to have a strong relationship with Saudi Arabia. You know, despite the anger at Mohammed bin Salman over the murder of the Saudi dissident Jamal Khashoggi, the Biden administration recognizes that given the Saudis control over global oil production and their strategic importance in the Middle East, they need to have a good relationship with them. And the administration has been worried about the influence of China in the region and with the Saudis in particular.

So this is an opportunity for the US to draw the Saudis closer. Whatever our moral qualms might be about bin Salman and the Saudi government, this is an opportunity to bring the Saudis closer, which is something the Biden administration sees as a strategic benefit.

All three of these countries — big, disparate countries that normally don’t see eye-to-eye, this was a win-win-win on a military, economic, and strategic front.

That’s right. But there was one important actor in the region that did not see itself as winning, and that was the Palestinians.

[MUSIC PLAYING]

First, it’s important to understand that the Palestinians have always expected that the Arab countries in the Middle East would insist that Israel recognize a Palestinian state before those countries were willing to essentially make total peace and have normal relations with Israel.

So when the Abraham Accords happened in the Trump administration, the Palestinians felt like they’d been thrown under the bus because the Abraham Accords gave them virtually nothing. But the Palestinians did still hold out hope that Saudi Arabia would be their savior. And for years, Saudi Arabia has said that Israel must give the Palestinians a state if there’s going to be a normal relationship between Israel and Saudi Arabia.

Now the Palestinians see the Saudis in discussions with the US and Israel about a normalization agreement, and there appears to be very little on offer for the Palestinians. And they are feeling like they’re going to be left out in the cold here.

Right. And in the minds of the Palestinians, having already been essentially sold out by all their other Arab neighbors, the prospect that Saudi Arabia, of all countries, the most important Muslim Arab country in the region, would sell them out, had to be extremely painful.

It was a nightmare scenario for them. And in the minds of many analysts and US officials, this was a factor, one of many, in Hamas’s decision to stage the October 7th attacks.

Hamas, like other Palestinian leaders, was seeing the prospect that the Middle East was moving on and essentially, in their view, giving up on the Palestinian cause, and that Israel would be able to have friendly, normal relations with Arab countries around the region, and that it could continue with hardline policies toward the Palestinians and a refusal, as Prime Minister Benjamin Netanyahu has said publicly, to accept a Palestinian state.

Right. So Michael, once Hamas carries out the October 7th attacks in an effort to destroy a status quo that it thinks is leaving them less and less relevant, more and more hopeless, including potentially this prospect that Saudi Arabia is going to normalize relations with Israel, what happens to these pre-October 7th negotiations between the US, Saudi Arabia, and Israel?

Well, I think there was a snap assumption that these talks were dead and buried. That they couldn’t possibly survive a cataclysm like this.

But then something surprising happened. It became clear that all the parties were still determined to pull-off the normalization.

And most surprisingly of all, perhaps, was the continued eagerness of Saudi Arabia, which publicly was professing outrage over the Israeli response to the Hamas attacks, but privately was still very much engaged in these conversations and trying to move them forward.

And in fact, what has happened is that the scope of this effort has grown substantially. October 7th didn’t kill these talks. It actually made them bigger, more complicated, and some people would argue, more important than ever.

We’ll be right back.

Michael, walk us through what exactly happens to these three-way negotiations after October 7th that ends up making them, as you just said, more complicated and more important than ever?

Well, it’s more important than ever because of the incredible need in Gaza. And it’s going to take a deal like this and the approval of Saudi Arabia to unlock the kind of massive reconstruction project required to essentially rebuild Gaza from the rubble. Saudi Arabia and its Arab friends are also going to be instrumental in figuring out how Gaza is governed, and they might even provide troops to help secure it. None of those things are going to happen without a deal like this.

Fascinating.

But this is all much more complicated now because the price for a deal like this has gone up.

And by price, you mean?

What Israel would have to give up. [MUSIC PLAYING]

From Saudi Arabia’s perspective, you have an Arab population that is furious at Israel. It now feels like a really hard time to do a normalization deal with the Israelis. It was never going to be easy, but this is about as bad a time to do it as there has been in a generation at least. And I think that President Biden and the people around him understand that the status quo between Israel and the Palestinians is intolerable and it is going to lead to chaos and violence indefinitely.

So now you have two of the three parties to this agreement, the Saudis and the Americans, basically asking a new price after October 7th, and saying to the Israelis, if we’re going to do this deal, it has to not only do something for the Palestinians, it has to do something really big. You have to commit to the creation of a Palestinian state. Now, I’ll be specific and say that what you hear the Secretary of State, Antony Blinken, say is that the agreement has to include an irreversible time-bound path to a Palestinian state.

We don’t know exactly what that looks like, but it’s some kind of a firm commitment, the likes of which the world and certainly the Israelis have not made before.

Something that was very much not present in the pre-October 7th vision of this negotiation. So much so that, as we just talked about, the Palestinians were left feeling completely out in the cold and furious at it.

That’s right. There was no sign that people were thinking that ambitiously about the Palestinians in this deal before October 7th. And the Palestinians certainly felt like they weren’t going to get much out of it. And that has completely changed now.

So, Michael, once this big new dimension after October 7th, which is the insistence by Saudi Arabia and the US that there be a Palestinian state or a path to a Palestinian state, what is the reaction specifically from Israel, which is, of course, the third major party to this entire conversation?

Well, Israel, or at least its political leadership, hates it. You know, this is just an extremely tough sell in Israel. It would have been a tough sell before October 7th. It’s even harder now.

Prime Minister Benjamin Netanyahu is completely unrepentantly open in saying that there’s not going to be a Palestinian state on his watch. He won’t accept it. He says that it’s a strategic risk to his country. He says that it would, in effect, reward Hamas.

His argument is that terrorism has forced a conversation about statehood onto the table that wasn’t there before October 7th. Sure, it’s always in the background. It’s a perennial issue in global affairs, but it was not something certainly that the US and Israel’s Arab neighbors were actively pushing. Netanyahu also has — you know, he governs with the support of very right-wing members of a political coalition that he has cobbled together. And that coalition is quite likely to fall apart if he does embrace a Palestinian state or a path to a Palestinian state.

Now, he might be able to cobble together some sort of alternative, but it creates a political crisis for him.

And finally, you know, I think in any conversation about Israel, it’s worth bearing in mind something you hear from senior US officials these days, which is that although there is often finger pointing at Netanyahu and a desire to blame Netanyahu as this obstructionist who won’t agree to deals, what they say is Netanyahu is largely reflecting his population and the political establishment of his country, not just the right-wingers in his coalition who are clearly extremist.

But actually the prevailing views of the Israeli public. And the Israeli public and their political leaders across the spectrum right now with few exceptions, are not interested in talking about a Palestinian state when there are still dozens and dozens of Israeli hostages in tunnels beneath Gaza.

So it very much looks like this giant agreement that once seemed doable before October 7th might be more important to everyone involved than ever, given that it’s a plan for rebuilding Gaza and potentially preventing future October 7th’s from happening, but because of this higher price that Israel would have to pay, which is the acceptance of a Palestinian state, it seems from everything you’re saying, that this is more and more out of reach than ever before and hard to imagine happening in the immediate future. So if the people negotiating it are being honest, Michael, are they ready to acknowledge that it doesn’t look like this is going to happen?

Well, not quite yet. As time goes by, they certainly say it’s getting harder and harder, but they’re still trying, and they still think there’s a chance. But both the Saudis and the Biden administration understand that there’s very little time left to do this.

Well, what do you mean there’s very little time left? It would seem like time might benefit this negotiation in that it might give Israel distance from October 7th to think potentially differently about a Palestinian state?

Potentially. But Saudi Arabia wants to get this deal done in the Biden administration because Mohammed bin Salman has concluded this has to be done under a Democratic president.

Because Democrats in Congress are going to be very reluctant to approve a security agreement between the United States and Saudi Arabia.

It’s important to understand that if there is a security agreement, that’s something Congress is going to have to approve. And you’re just not going to get enough Democrats in Congress to support a deal with Saudi Arabia, who a lot of Democrats don’t like to begin with, because they see them as human rights abusers.

But if a Democratic president is asking them to do it, they’re much more likely to go along.

Right. So Saudi Arabia fears that if Biden loses and Trump is president, that those same Democrats would balk at this deal in a way that they wouldn’t if it were being negotiated under President Biden?

Exactly. Now, from President Biden’s perspective, politically, think about a president who’s running for re-election, who is presiding right now over chaos in the Middle East, who doesn’t seem to have good answers for the Israeli-Palestinian question, this is an opportunity for President Biden to deliver what could be at least what he would present as a diplomatic masterstroke that does multiple things at once, including creating a new pathway for Israel and the Palestinians to coexist, to break through the logjam, even as he is also improving Israel’s relations with Saudi Arabia.

So Biden and the Crown Prince hope that they can somehow persuade Bibi Netanyahu that in spite of all the reasons that he thinks this is a terrible idea, that this is a bet worth taking on Israel’s and the region’s long-term security and future?

That’s right. Now, no one has explained very clearly exactly how this is going to work, and it’s probably going to require artful diplomacy, possibly even a scenario where the Israelis would agree to something that maybe means one thing to them and means something else to other people. But Biden officials refuse to say that it’s hopeless and they refuse to essentially take Netanyahu’s preliminary no’s for an answer. And they still see some way that they can thread this incredibly narrow needle.

Michael, I’m curious about a constituency that we haven’t been talking about because they’re not at the table in these discussions that we are talking about here. And that would be Hamas. How does Hamas feel about the prospect of such a deal like this ever taking shape. Do they see it as any kind of a victory and vindication for what they did on October 7th?

So it’s hard to know exactly what Hamas’s leadership is thinking. I think they can feel two things. I think they can feel on the one hand, that they have established themselves as the champions of the Palestinian people who struck a blow against Israel and against a diplomatic process that was potentially going to leave the Palestinians out in the cold.

At the same time, Hamas has no interest in the kind of two-state solution that the US is trying to promote. They think Israel should be destroyed. They think the Palestinian state should cover the entire geography of what is now Israel, and they want to lead a state like that. And that’s not something that the US, Saudi Arabia, or anyone else is going to tolerate.

So what Hamas wants is to fight, to be the leader of the Palestinian people, and to destroy Israel. And they’re not interested in any sort of a peace process or statehood process.

It seems very clear from everything you’ve said here that neither Israel nor Hamas is ready to have the conversation about a grand bargain diplomatic program. And I wonder if that inevitably has any bearing on the ceasefire negotiations that are going on right now between the two of them that are supposed to bring this conflict to some sort of an end, even if it’s just temporary?

Because if, as you said, Michael, a ceasefire opens the door to this larger diplomatic solution, and these two players don’t necessarily want that larger diplomatic solution, doesn’t that inevitably impact their enthusiasm for even reaching a ceasefire?

Well, it certainly doesn’t help. You know, this is such a hellish problem. And of course, you first have the question of whether Israel and Hamas can make a deal on these immediate issues, including the hostages, Palestinian prisoners, and what the Israeli military is going to do, how long a ceasefire might last.

But on top of that, you have these much bigger diplomatic questions that are looming over them. And it’s not clear that either side is ready to turn and face those bigger questions.

So while for the Biden administration and for Saudi Arabia, this is a way out of this crisis, these larger diplomatic solutions, it’s not clear that it’s a conversation that the two parties that are actually at war here are prepared to start having.

Well, Michael, thank you very much. We appreciate it.

On Tuesday afternoon, under intense pressure from the US, delegations from Israel and Hamas arrived in Cairo to resume negotiations over a potential ceasefire. But in a statement, Israel’s Prime Minister Benjamin Netanyahu made clear that even with the talks underway, his government would, quote, “continue to wage war against Hamas.”

Here’s what else you need to know today. In a dramatic day of testimony, Stormy Daniels offered explicit details about an alleged sexual encounter with Donald Trump that ultimately led to the hush money payment at the center of his trial. Daniels testified that Trump answered the door in pajamas, that he told her not to worry that he was married, and that he did not use a condom when they had sex.

That prompted lawyers for Trump to seek a mistrial based on what they called prejudicial testimony. But the judge in the case rejected that request. And,

We’ve seen a ferocious surge of anti-Semitism in America and around the world.

In a speech on Tuesday honoring victims of the Holocaust, President Biden condemned what he said was the alarming rise of anti-Semitism in the United States after the October 7th attacks on Israel. And he expressed worry that too many Americans were already forgetting the horrors of that attack.

The Jewish community, I want you to know I see your fear, your hurt, and your pain. Let me reassure you, as your president, you’re not alone. You belong. You always have and you always will.

Today’s episode was produced by Nina Feldman, Clare Toeniskoetter, and Rikki Novetsky. It was edited by Liz O. Baylen, contains original music by Marion Lozano, Elisheba Ittoop, and Dan Powell, and was engineered by Alyssa Moxley. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

• May 9, 2024   •   34:42 One Strongman, One Billion Voters, and the Future of India
• May 8, 2024   •   28:28 A Plan to Remake the Middle East
• May 7, 2024   •   27:43 How Changing Ocean Temperatures Could Upend Life on Earth
• May 6, 2024   •   29:23 R.F.K. Jr.’s Battle to Get on the Ballot
• May 3, 2024   •   25:33 The Protesters and the President
• May 2, 2024   •   29:13 Biden Loosens Up on Weed
• May 1, 2024   •   35:16 The New Abortion Fight Before the Supreme Court
• April 30, 2024   •   27:40 The Secret Push That Could Ban TikTok
• April 29, 2024   •   47:53 Trump 2.0: What a Second Trump Presidency Would Bring
• April 26, 2024   •   21:50 Harvey Weinstein Conviction Thrown Out
• April 25, 2024   •   40:33 The Crackdown on Student Protesters
• April 24, 2024   •   32:18 Is $60 Billion Enough to Save Ukraine?

Hosted by Michael Barbaro

Featuring Michael Crowley

Produced by Nina Feldman ,  Clare Toeniskoetter and Rikki Novetsky

Edited by Liz O. Baylen

Original music by Marion Lozano ,  Elisheba Ittoop and Dan Powell

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music | YouTube

If and when Israel and Hamas reach a deal for a cease-fire, the United States will immediately turn to a different set of negotiations over a grand diplomatic bargain that it believes could rebuild Gaza and remake the Middle East.

Michael Crowley, who covers the State Department and U.S. foreign policy for The Times, explains why those involved in this plan believe they have so little time left to get it done.

On today’s episode

Michael Crowley , a reporter covering the State Department and U.S. foreign policy for The New York Times.

Background reading :

Talks on a cease-fire in the Gaza war are once again at an uncertain stage .

Here’s how the push for a deal between Israel and Saudi Arabia looked before Oct. 7 .

From early in the war, President Biden has said that a lasting resolution requires a “real” Palestinian state .

Here’s what Israeli officials are discussing about postwar Gaza.

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The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

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Michael Crowley covers the State Department and U.S. foreign policy for The Times. He has reported from nearly three dozen countries and often travels with the secretary of state. More about Michael Crowley

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