Determine the Best Business Model for Mechanical Services

In the U.S., the average age of cars is estimated to be more than 11 years. So, there will be an increase in the need for car repair, starting a small auto repair business would be a smart move, but there are several things required to consider when opening up an auto repair business.

Figuring out the Best Business Model that works

Types of Services:

Basic services such as oil and tire changes or comprehensive services such as collision repair, engine maintenance, and electrical services can be provided. Determine how many customers can be planned to serve per day and to the maximum extent to help them.

New or current shop:

Determining to start from scratch or buy a current shop is an important factor. Buying new means there will need to buy everything including tools and equipment, whereas buying a current shop might mean that business is already geared up with everything needed to run business.

Franchise or Independent:

For example, starting as a franchise like Jiffy Lube or Midas requires franchising fees of about $200,000 to $400,000 including an ongoing royalty fee of three percent. Therefore, the financing is considered as a huge barrier. However, if an entrepreneur is able to afford it, they get the advantages of marketing and the recognition of a national brand name. Adding to that the development of Uber for mechanic services app will make business to go places.