How To Set Up an Auto Repair Business

 If you are great at fixing all types of automobiles and want to be your own boss, starting an auto repair business may be the perfect fit for your career plans. Yet like any other business, there are many steps involved in getting your business up and running in the best possible manner. To make sure you don’t run into any unexpected complications along the way, here are some essential steps to setting up your car repair business.

Form Your Business Plan


First, always create a detailed business plan for your auto repair business. This should include your startup costs and ongoing expenses, your target market, and the name you will select for your business. Remember, you will need a hydraulic lift, diagnostic machines, and a set of specialized tools, all of which could cost you at least $20,000.

Get Licensing, Insurance, and Certifications


To legally operate your business, you will need a business license from your town or city, which generally costs $25-$100. Also, you will need to purchase insurance for your business. This is important since there is always the possibility you or perhaps an employee could be injured while on the job. Finally, don’t forget about various certifications, especially the ASE certification. For more and more customers, taking their vehicles to mechanics with ASE certification is a determining factor in the businesses they patronize.

Determine How Much You Will Charge


When you are looking around at similar businesses such as Teddy Bear’s Auto Parts & Salvage Inc., take note of what they charge customers for certain services. In doing so, this will give you a better idea of the types of prices you should charge your customers for various services. While you don’t want to price your services too low, you also don’t want to be known as the most expensive mechanic in town.

Decide on a Legal Entity


While you may think it makes little difference whether you are a sole proprietorship or an LLC, it can make all the difference in the world should legal trouble head your way. If you decide to make your business an LLC or corporation, this will protect you from being held personally liable if someone decides to sue your business. Before making your final decision on this matter, always talk it over with an attorney.


A business that is always in demand, setting up an auto repair business and gaining a great reputation with your customers will soon have you reaping the financial rewards of all your hard work.

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