Tips for Opening Your Own Auto Repair Business After You Graduate
If you aspire to own a business, enrolling in an automotive technology program is a great place to start. The vehicle repair industry offers ample opportunity to open a repair shop as an independent entrepreneur. NYADI The College of Transportation Technology teaches certification and associate degree programs in Jamaica, New York, to prepare future auto technicians for a variety of careers, including business ownership. Here, we discuss how to open a mechanic shop post-graduation and provide tips for success.
Understand Your Expenses and Secure Financing
Starting an auto shop isn’t cheap. It comes with a list of expenses which can be a major investment. Too many would-be business owners are blindsided by the cost. The resulting financial shock can be discouraging. Instead of getting caught unprepared, set yourself up for success by budgeting out your expenses:
- Renting or purchasing a business property
- Renovating your facility for auto repair work
- Purchasing up-to-date diagnostic tools and software
- Equipping your shop with high-grade tools
- Securing business insurance to protect your assets
- Paying your employees a competitive salary
- Protecting employees with worker’s compensation coverage
You should also have a plan for where this money will come from. Many auto repair shops receive financing from Small Business Administration (SBA) loans. These loans are insured by the federal government, allowing lenders to offer more flexible terms and lower interest rates. This makes them a great option for new businesses trying to get on their feet.
Build a Business Plan
Once you’ve figured out finances, it’s time to make a business plan. Attracting customers isn’t as simple as opening the door; you’ll also need to understand your market and formulate an approach to maximize your success. Here are some aspects to consider:
- Competitive analysis: Examine the repair industry in your area, including your competitors. Understand what they do well, how they fail, and where there are gaps in service.
- Individual features: Outline what sets your shop apart from the others around it. Your shop’s unique features will be what attracts customers to you rather than elsewhere.
- Service line: Determine what services your auto shop will offer. Will you repair small cars or diesel? Will you run a general mechanics shop for parts and systems, or will you specialize?
- Marketing tactics: Come up with a plan to draw customers to your shop through advertising, social media, community connections, and other marketing techniques.
- Organization and management: Design your business model. Determine what structure you will register for, how many employees you will hire, and your leadership hierarchy.
This plan will help you determine whether starting a shop is a feasible venture. It’ll also keep your thoughts organized, eliminating uncertainty and helping you focus on your goals.
Emphasize Customer Service
While the technical skills you learn through NYADI automotive programs can be the foundation for a business, they aren’t the only skills you will need. Customer relations are also vital. People don’t just look for somebody to repair their vehicle; they also want a familiar face they know they can trust.
A nice lobby is a good start. Vehicle repairs can take time, so providing somewhere comfortable to wait will greatly improve the customer experience. You’ll also want to be friendly but professional when you interact with customers. Listen attentively to their concerns, communicate and keep customers up to date on their vehicle’s status, and discuss prices transparently. This will establish you as a reliable individual who they can trust on a return visit.
The same extends to your employees. If you plan on hiring a team, whether to help you in the shop or at the front desk, they will play an important role in customers’ experience when visiting your shop. Look for hires who can help customers feel confident enough to come back.
Learn How to Open a Mechanic Shop at NYADI
Every successful venture starts with top-quality training. At NYADI, we don’t just teach students how to open a mechanic shop; we equip them with tools for success. Taught by instructors who are experienced in the industry, our programs cover business and customer service skills in addition to auto repair topics. Contact an admissions representative to learn more about enrollment in Jamaica, NY, or to discuss financial aid options if you qualify.