3 Things to Know When Opening Your Own Auto Shop
Auto repair shops are always going to be necessary for this country. There are a lot of people who require assistance with their vehicles when they break down. These folks need to know that there are shops they can turn to in order to get that help.
The top six independent car maintenance shops in America increased revenues by $1 million between 2019 and 2020, according to research. This is not to say that they haven’t had their struggles, such as having to overcome the technician shortage, but they’ve figured out a way to make it work. Today, we want to look at a few things that anyone needs to know before trying to open an auto repair shop.
Secure Financing
It’s necessary to secure the financing you need to get the shop off the ground. It’s necessary to raise the capital required to keep the shop running in good times and bad ones. Ensuring that financing is properly in place is the first step. It sounds obvious, but it’s important to have a business plan before you dive right in. You need a plan of attack for how you will ultimately handle pricing, labor, and many other important factors. If you don’t have a strong business plan in place, then your shop will surely fall by the wayside or be consumed by the competition.
Form a Legal Entity
You’ll need to form a legal entity for your own protection. This might look like forming a corporation or an LLC. The purpose of either one of these is to make sure you reduce your legal liabilities as much as possible. Most likely, you will need certain permits and licenses to operate a business in your local area. You should secure those as quickly as possible so you have everything lined up just the way you need it before you get too far down the road.
Open a Business Bank Account and Credit Card
Keeping your personal finances and business finances separated is critically important. You should open a business account and a credit card that is linked to that account. If you do this, you can ensure that all expenses are kept separate so accounting is easier for you.
If you’ve been considering opening your own auto repair shop, be sure to follow the above tips. Protect yourself and your business from experiencing any problems.