Opening your own auto body shop can be an exciting challenge as an entrepreneur; however, it can also be difficult. While it may seem like an easy task to take on, the truth is that there are many difficulties that come with the opening of a new auto body shop.
People who have been in the service industry for years will tell you opening an auto body shop has its own special set of challenges. Whether you’re thinking about opening your own business or are just curious about the things to consider, you’ll find information and resources here to help you in your journey.
To start off with, learning how to deal with estimating and insurance companies, how to handle employees, and how to run a successful auto body shop is not always easy. With that in mind, there are still other things for you to consider when opening an auto body shop.
How Lucrative is Auto Body Shop?
Opening a new auto body shop can be a lucrative business venture. The business is recession-proof and you will be able to make a lot of money if you follow the right steps, but this won’t happen overnight.
There are several elements that play an important role in the success of this business. A lot of people take on this business because they are passionate about cars and they believe they can do a great job in repairing damaged cars. However, you should also look at it from a financial aspect and make sure you have the capital to start off with before you take on an auto body repair shop as a business venture.
It is estimated that auto body repair shops make about $11,000 in profits each year. Auto body shops are also good for insurance companies because they are able to fix cars at a cheap rate, which means that the insurance company does not have to pay as much when it comes to making claims. Auto body repair shops can also benefit from incentives from the insurer. Having an auto body repair shop on hand also makes sure customers are happy with their car and that the company has the opportunity to gain new customers through referrals.
The profit margin for an auto body repair shop on average is estimated to be around 25%. This is more than double the average business profit margin which is at 12%. This large profit margin makes it easier for auto body repair shops to grow. If you are starting an auto body shop, there are some things that you should keep in mind.
Things to Consider When Opening an Auto Body Shop
The following three points should be considered before opening an auto body shop:
The first thing that you need to think about when opening an auto body repair shop is the right location. You should find a place that is centrally located with good visibility to passing traffic. People need to be able to see your signs and easily find your business. You should also look for a place that is close to the highway so that people who live further away can still come to you for auto repairs.
Choosing the right auto body shop location is one of the most important decisions you will make. Also, you will want to check with the local zoning board before deciding on a location, however, as they may require that you have a hardcover over your garage area or that you provide parking space for customers.
The amount of training necessary to run your own repair shop depends on what type of work you plan to do. If you only plan on doing minor cosmetic repairs, then a lot of formal training may not be necessary. However, if you plan on repairing more severe damage, then you will need more training for you and your staff from experienced professionals before you can start working on cars in other to build a good reputation for your shop.
Services and Price
Another thing to consider is what kind of services you are going to offer as well as the price range for these services. You have to look into your market and find out what kind of prices other shops are offering before setting up shop yourself. Make sure that the services you offer will be in demand in your area and that they are priced fairly. If you tell people that their car will be fixed right the first time and then it isn’t, they will feel like they cannot trust you.
As you continue to research the subject, you will find that there are a lot of decisions that have to be made in order for you to fully understand how to run a successful auto body shop. In order for someone to how to run a successful auto body shop, they must take all of the little things into consideration.