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Auto repair shop monthly expenses6/19/2023 The hiring process should start at least a month before your grand opening. If you have a couple of lifts and want to maximize your capacity, you’ll need additional mechanics to help service vehicles. If you have a very small shop, you might do all of the work yourself, but you will probably still need at least one employee to handle telephone calls and customers. You don’t have to retain a lawyer, but it can save you from a lot of mistakes along the way. A lawyer is invaluable during this process, helping you ensure every “i” is dotted and “t” crossed. You’ll need to obtain a business license, look into the regulations surrounding liability insurance requirements, open accounts to handle payroll and tax reporting, file your articles of incorporation, and other pre-sale steps. Get Legal AdviceĪ lot more goes into opening a business than just finding a location and serving customers. If you want to specialize, you’ll need to do some serious market research to make sure there is enough demand to support your new shop. Before you open up, you need to know the scope of the services you plan to offer. ![]() If you specialize, you might earn a reputation as the best garage for brakes, but you lost out on a lot of other business. You can also specialize in repairs for specific car manufacturers or types of repair. To Specialize or Not To SpecializeĪSE certification is broken down into 16 different specialties with Master Technician status available in: Choosing to buy an existing auto shop can also affect the bottom line. Buying a building and making alterations can significantly change that number, depending on construction costs. ![]() According to Appointment-Plus, the total cost is right around $47,000, in equipment, insurance, and rent. While it is impossible to project certain costs ahead of time, the most common and expensive line items are easily predicted. If you don’t, you might run out of funds before gaining your first customer. Know the Startup Costsīefore you spend a dime opening your shop, you need to know the total projected cost to get up and running. Before you qualify to take the certification test, you’ll need a minimum of two years of work and educational experience combined, with at least one year obtained on the job. It gives car owners confidence, and can be a very important marketing tool. ASE certification tells potential customers that you know what you’re doing. You’re not required to have ASE certification to work on cars, but without it, you might find it substantially more difficult or expensive to obtain liability insurance and find financing for your new business. ![]() Before you start looking for money to get your garage doors up, planning is critical. When you own the shop, the only limit on profits is the capacity of the garage. When you work on the shop floor without ownership, your earnings top out at your salary or hourly wage. You can set the hours, work with customers on pricing, specialize on interesting vehicles, and take control over the future of your career. If you’re a mechanic or working on becoming a mechanic, reaching that dream might start with the idea of opening your own auto repair shop. For many, owning a business is a part of the American Dream and a path to personal wealth.
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