How to Start an Auto Mechanic Shop

If you have the skills to be a mechanic, you can start your own auto mechanic shop and work for yourself. This type of business is always in demand and can bring in a continuous flow of customers, which can be lucrative.

How to Start an Auto Mechanic Shop

1. Create a business plan that detail how you want to operate the business. It should list money for startup, marketing and goals. It will have a step-by-step plan that will help your business grow.


2. Obtain funds to start the shop. Banks, credit unions and investors are good places to start looking for money.


3. Check with your local city clerk to determine which licenses and permits you will need to start the shop. You should come up with a name for the shop. Fill out all necessary paperwork and pay the fees to register your business and obtain a license and/or permit.


4. Apply for a tax identification number for the business through the Internal Revenue Service. Before applying the identification number, you will have to decide which business entity your business will fall under. Check with an attorney or a CPA to help you decide. Open a business bank account for the business.


5. Look for a building for the mechanic shop. Consult with a commercial real estate agent to help you find a place.


6. Purchase insurance for your shop. The insurance will protect your customers and your business. Contact an insurance agent to help you determine your insurance needs.


7. Obtain all of the equipment and supplies you need to successfully run the business. You will need diagnostic machines, tools, jacks, computer equipment and furniture. Look on the Internet or talk to other shops to get ideas.


8. Begin marketing your business. Place an ad in the newspaper and the Internet. Make sure the business is listed in the phone directory. Leave flyers and business cards in auto body shops, auto dealers and with towing businesses.