business plan for auto repair shop
2 minutes

Every year, there is an increase in the number of cars on the road. Unfortunately, not everyone can afford the car of their dreams straight out of the dealership. Statistically, over the past five years, the average age of vehicles has increased. Which means that the demand for auto repair shops is as high as ever.

About the reviewer

Jakub Babkins, expert in developing strategic business plans for small-to-medium sized businesses at OGS Capital, a leading business consulting firm.

Keeping a stable revenue at an auto repair shop

When developing a sample business plan for auto repair shop, you have to figure out how you are going to keep up revenues. An auto repair shop covers more services than simply repair and renovation works after an accident or because a car wouldn’t start for some reason. Thus, along with providing services in mechanical and electrical repair, scheduled maintenance and checkups are what builds the core for stable revenues.

Understanding market needs

Understanding the needs of a target markets allows a business to:

  1. Tailor its services to meet market demands;
  2. Management of available resources efficiently;
  3. Stay up-to-date with changes in quality expectations, prices, technological advancements;
  4. Address scalability.

Change is a very subjective question; every industry is different, and the scale and how quickly something, like technology, is changing is dependent on the industry.

What to do about scalability?

One of the goals of a business is growth. Growth can be achieved by expansion into new locations, orders, or an increase in a business’s client base. Scalability should be resolved at the stages of business planning. Otherwise, a business may face problems such as not having sufficient storage space, delays in deliveries and incomplete orders piling up. As a consequence, scalability is not always about opening new auto repair shops in other areas; it could be as simple as the expansion of work and storage areas at an existing location.

Understanding your customers

An auto repair business can expect to have three groups of customers. Firstly, it is the owners of used cars; with those, you might even carry out a preliminary examination of a car, before a sale is closed. Secondly, owners of new cars, as even new cars need maintenance and check-ups. And, finally, professional drivers. Their expectations and needs might differ slightly; however, what they all want is for their car to be fixed and ready to go as soon as possible.

Figuring out a marketing approach

A feasibility study will evaluate if a startup in auto repairs has potential in the chosen area. However, a feasibility study evaluates numbers, whereas for a repairs shop to attract new customers, it has to build a reputation alongside with a strong web presence. Marketing strategy should focus on communicating experiences, building trust and creating lasting links with potential customers.


A stable, planned flow of income is what guarantees a business to stay afloat even during low seasons. For an auto repair shop, it could be services like scheduled maintenance and checkups. These types of services can be offered on an established, regular basis, guaranteeing a stable cash inflow. Market analysis doesn’t stop once the business plan is developed. For a company to become and stay competitive, there is a constant need for market analysis, including advancements in technology. For an auto repair shop, building and maintaining a reputation is crucial to staying competitive.

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