The growing number of automobiles on road also `brings a happy tale along with it- the growing opportunities for auto repair workers. In fact, setting up an auto repair workshop is one of the most promising professions these days. Consider this, neither the people are going to stop using cars nor the cars will stop to cause problems. Thus, there are endless possibilities for generating revenue in this trade.
If you’re keen on setting up your own repair shop, this article will provide you with all the necessary information. Using this information you can set up your shop from scratch and turn it into a profitable business.
Fulfill Legal Obligations
The first thing that you need to do is find out the legal obligations that you need to fulfill. For instance, you would need to register your business under a name, obtain a tax account number and a business address. These are the basic legal requirements that almost every business needs to fulfill. Besides these, for your specific repair shop, you may also need to apply and obtain a license from the local authorities. Only after fulfilling these requirements, you must start setting up your business. An important part of legal formalities is determining the type of business you wish to register. Do you wish it to be an LLC or a private firm, or start it in partnership with a fellow repairman? You would need to decide all of these necessary things when registering your repair shop with the authorities. Once you have all the decisions regarding your business’s legal formalities, you must consult with your local authorities. Every region has its own standard operating procedure, and consulting with the authorities can help you decide where to begin. They shall also guide you through the right order of steps that you must follow when setting up your business, legally.
Identify Inventory & Setup Needs
Fulfilling the legal formalities is only the beginning. The real deal begins after you have registered your business. You would need to decide the location for your repair shop, the tools, and the type of equipment that you shall need. As already mentioned, you need to share the address of your repair shop with the authorities to obtain the licenses for your business. Apart from this, you would need to identify other inventory items as well. For example, common hand and power tools including pliers, wrenches, welders, and alike are common to all repair shops. Besides this, you must also find out if you need to invest in hydraulic equipment such as lifts and tire balancing equipment. Most importantly, you must ensure that you have a backup power source such as the ones listed here, https://www.ablesales.com.au/diesel-generators-perth-melbourne-brisbane/diesel-generator/ for your repair shop. All of these inventory items will determine how much you will need to spend on setting up your shop.
Arrange For The Setup Cost
By now, you must have an idea about how much capital you’d need to start your repair shop. However, you may need to decide how do you wish to arrange for this capital. Regardless of whether you have savings or not, it is best to seek financial assistance when setting up a business. This form of capital investment allows better control over the company shares and dividends of the profits. You have the option of arranging the capital from a bank or a private investor. The difference lies in how the lender demands the repayment of the investment. Usually, banks would demand an interest over the principal amount, whereas, an investor would demand a stake in the company.
Prepare A Marketing Plan
A business without a marketing strategy is nothing more than a deserted island. In other words, if no one knows about your repair shop, then the possibilities of drawing in customers are also meek. For starters, you can choose a location for your repair shop, which is not too far away from the city center. This would allow any passers-by to identify and regard your business. Besides choosing the location, you may also need to invest in advertisements, such as billboards, pamphlets, posters, or even digital ads over Facebook and Google. All of these marketing strategies would only help acquire more leads for your business. Thus, promising higher profitability for your repair business.
Setting up an auto repair shop is a lot easier said than done. That being said, once you have the basic setup and customers rolling into your shop, there’s nothing stopping you from achieving the success.