The revenue achieved by US auto body shops rose by 3.4 percent in 2018 to reach $47bn. This was attributed to a growing population of people with disposable income which can afford cars. This only means that the auto body works business is bound to expand.
If you are looking to take advantage of the increasing opportunities in the auto repair sector, starting a body shop seems a good idea. You are assured of flow of business in repair, refurbishment, and modification of cars.
In this article, we give you 7 key tips for opening your own auto body shop.
1. Get The Experience And Knowledge On Auto Repair Industry
Auto body repair is a specialized field where you will need some experience to run it. You might need to be a trained mechanic or acquire skills through vocational training. You will also need to have worked in another auto body shop to learn the tips for opening your own auto body shop.
The reason you need to have been in an auto bodyshop environment is that you get to know where to get parts, supplies, and how to go around a client’s car. Auto body shops are known for their fine work and you do not want to get a bad reputation in your workmanship.
2. Seek a Location Ideal For Your Work
Where you locate your business will determine the number of clients you get. You need to select a location that has a higher flow of cars. Also, your locality should be safe and accessible to allow clients to drive in at will.
Space is essential as it allows you to handle many cars at the same time. It also allows you to build several bays, stores, parts shop, and offices to support your business. Clients might not like a squeezed up auto body shop.
3. Secure Financing
You have this great idea and have developed your business plan. You also know exactly where to get your clients. This, however, might be of no importance if you are not sure how you will finance your business.
This is even more important if you are considering building a new shop from scratch. The cost of equipment used for an auto body shop can derail your plan if you have not figured where to get finances.
There are many ways of raising your capital. Whichever method works for you, ensure to develop a repayment formula based on projected profits.
4. Buy The Equipment Needed For The Job
Maintenance and repair of automobiles have become very advanced. You will need special equipment to precisely diagnose and repair the car interior as well as the body. Paint has to be done in the same shade as the original color.
Clients will pass many auto body shops and come to your shop because you have advanced equipment. Make a list of the equipment you will need, from the most basic to the most advanced before starting an automotive repair shop. This way, you will know what you have at any given time.
Some equipment can be quite expensive and you will need a strategy of how to acquire them. This can be done either through direct purchase or leasing it from other auto repair garages. Evaluate what works for you at a given time.
5. Suppliers of Auto Parts Can Give You Tips for Opening Your Own Auto Body Shop
When you are new to the auto body shop business, you will need people who will show you how to run a successful automotive repair shop. These could be fellow mechanics or even suppliers of auto parts. You will gain much by linking up with these suppliers since they will help you out with a supply of parts.
If you build a relationship with auto part dealers, you are likely to get a competitive advantage. This is through discounts and money back guarantees. This helps your automotive repair business to offer clients affordable services.
Some parts sellers normally form a network with other people in the automotive repair industry making it easier for you to tap into a bigger group of people. Take advantage of this network and use it to market your business.
6. Hire People With Experience
You could be experienced in managing an auto body shop, but your team is not. You might even know a thing or two about producing that sleek auto body. But you need to have other professionals helping you with work.
Your main role is to make sure the shop is running smoothly including knowing where to source the supply as well as the target market. Let those you hire as mechanics prove they know their trade. A bad move by one worker will affect your business negatively.
Ensure you have installed systems to run the auto body shop so that those you hire can continue to work efficiently even when you are around. It’s a requirement in many auto body shops to have mechanics certified.
7. Get Certification, Licenses, and Insurance Cover
In your automotive repair business plan, ensure you include the cost of getting an insurance cover and licenses. An insurance cover is very important as it shields you from damages that might happen in your repair shop. The types of cover will include fire, theft, as well as body injuries to your workers.
Besides, include the cost that would come in acquiring training for you and your staff. It’s important that your workers are certified and you might need to pay for their licenses.
The business licenses and other fees payable to authorities should also be considered. Ensure you are operating a legally approved business.
Business Planning and Smart Management Will Make or Break Your Auto Body Shop
Starting an automotive repair shop can be challenging especially if you are working with a tight budget. It’s important to ensure that your automotive repair business plan has all that is needed to run a successful automotive repair shop.
As a business person, do your research and acquire tips for opening your own auto body shop. Your plan should be elaborate in listing all the needs of your business as well as plans to make it work.