How to Start a Car Repair Shop

If you have skills as a mechanic, you can make a good living by opening your own car repair shop. This type of business will always be around as long as cars keep breaking down until the owner wants to sell the car repair shop. If the business is run properly, many people in the area will use it.

How to Start a Car Repair Shop

1. Create a business plan for the car repair shops. You should list what you expect to gain from the shop. This is a good time to think about what type of service you want to include, employees you want to hire, where you will get the money to open the business, advertising and the type of equipment you will need. Include everything you will need for the business from start to finish. This will help the business succeed. Put it on paper and type it up for lenders to see.


2. Apply for and pay the fees to receive a business license. You can do this with your local government. You will need to submit a name for the business at this time. They will let you know if your name is taken or not and you can decide on another. You will receive notice about the license by mail or may be able to pick it up. Go on the website of the Internal Revenue Service and apply for a tax identification number for the business.


3. Look around for money to start the business if you need it. Go to banks, credit unions or other financial sources for financing.


4. Open a business account for your business and make sure that you keep it separate from your personal expenses.


5. Decide where you want the car repair shop located. Contact a commercial real estate agent to help you locate a building. The car repair shop must be allowed within a particular zone and the agents will be know where the shop can and cannot be located within an area because of the hazardous materials and nose that will be coming from the shop.


6. Locate an insurance agent to help you will your insurance options. You will need the insurance to protect your business, employees and customers.


7. Purchase all of the tools and equipment you will need for the entire repair shop. You will need tools, desks, computers, printers and other items to help the shop run smoothly.


8. Hire the people you will need to help run the business. You will need someone to answer phones as well as qualified mechanics. Only hire mechanics that are ASE certified.


9. Prepare for the grand opening. Advertise the shop with towing companies by leaving business cards or flyers with them. Put an ad on the Internet and in the phone book. Placing an ad in the Sunday paper is a great way to bring in customers.