Auto body shop business is all about providing services regarding auto-body repairing, new bodybuilding, and selling spare parts and accessories related to the vehicle body. As the number of vehicles is growing, the business opportunity of auto-body store is also increasing globally. Auto body shop business is vast in nature and has a diversified variety of services. An aspiring entrepreneur having passion and interest in the automobile industry can initiate this venture with moderate capital investment.
Regardless of the state and country, vehicle accidents always happen unfortunately on a regular basis. Commercial vehicles need to get repairing for renewal of their registration and private vehicle owners are also in searching for best auto repairing store in their locality.
Here is a 10 Step Business Plan Guide to Start an Auto Body Shop Business
1. Learn the Skills
Anyone interested in entering into auto body shop business, it is critical to have some technical know-how about the trade. Skills related to repairing a damaged car, painting works, and other jobs related to auto body shop services. It is advised to attend and finish vocational auto body related course programs from a technical training institute.
2. Do Market Research Before Opening Auto Body Shop Business
Do adequate market research on the location where you want to establish your auto body store. Learn about the type of vehicles and about the other auto body store in the locality. What services they are giving? These will help you to craft a business plan of your own auto-body store business.
3. Name Your Auto Body Shop
Like any other business, naming an auto body shop is a critical aspect for long term profitability and success. Choose a catchy and easy to remember business name which customers can easily relate to your business services. Check this article to know more about naming a business.
4. Create a Business Plan
Before initiating auto-body store business, it is extremely important to you have a properly documented business plan. Determine the specific services that you will go to provide to customers. Accordingly, you will need to calculate the equipment cost and manpower cost. Craft your marketing and promotion strategy.
Decide on who will be your target customer niche. Are you going to focus on the large commercial vehicle or in-car segment? Calculate your startup budget and expected revenue return. Having a business plan will help you to understand the feasibility part of the business. Additionally, it will also help you with arranging finance.
5. Make Your Auto Body Shop Business Legally Compliant
Set up a proper business structure under which you are going to run your auto body shop business. Talk to the competent authorities and get required licenses and permits to legally operate in the locality. In addition, buy liability business insurance to reduce risks in case of an unfortunate situation.
6. Buy a Business Insurance
It is advised to buy a business insurance policy as a protection for unfortunate consequences while running your auto body shop. If you are having employees working at your shop, you might need to provide workers compensation insurance to tour staffs.
7. Fix Proper Location
As with any automobile retail business choosing best-fit, the right location is important. Choose an accessible and widely visible location. You can consider having space behind near high traffic parking zone or beside the highway. Auto-body store business requires a lot of space. In finalizing the location consider having a clear idea about how much square feet actually you need to have.
8. Hire Manpower
Personnel is very crucial in auto-body store business as jobs require specific skills to perform. You must have certified technicians to perform the repairing jobs.
9. Buy Equipment
Purchase the equipment from a reliable vendor with a reasonable price. Generally, machine equipment providers give on-site training for the handling of the equipment. The major equipment you will need to have include dent pulling statin, dent repair tools, paint shakers, paint stripping, spray equipment, spray guns tool board and automatic spray zone, etc
10. Market your Auto Body Shop
Do some outdoor advertising activity. Go for some media publication. Establish a business relationship with other automobile service stations that don’t have body repairing setup. Create an online presence of your business. Offer your customer some free value-added services. You can also offer discounts for some specific days like ‘Monsoon Camp Repairing’. Concentrate on building goodwill and ask satisfied customers to give feedback.