If you are ready to open an automotive repair shop, one of the most critical skills you will need is organizational skills. You must develop a detailed business plan documenting your plan to build a successful enterprise. A cohesive business plan includes several levels of information. Review the list below to make sure you have the necessary components.

Location

You will need to document where you will open your shop. Discuss the reasons behind your decision about your shop location. Whether building a new center or updating an old shop, you must document your real estate loan and equipment financing plans.

Mission Statement

Every business requires a solid mission statement. This two- or three-sentence statement addresses the reason behind your business. It doesn’t describe the type of business you are opening. Instead, it discusses the purpose that drives your operation.

Goals

Once your mission statement is developed, establish goals for your company. Short- and long-term objectives help you take abstract concepts and assign measurable goals to them. This keeps you on track and builds upon your success. Samples business objectives may include:

• Increase the average repair order cost by 10% in 12 months
• Maintain an online rating of at least 4.8
• Ensure employees have at least one automotive repair certification within three months of their hire date

Services

Your business plan must describe the type of repair service you will provide. Provide details on the types of vehicles you will serve, like passenger, bus, or heavy-duty vehicles. State the types of engines you will support – electric, gas, or diesel.

Funding Requirements

A thorough business plan helps lenders and investors examine your business through your eyes. They see your passion for the project and recognize your skills as a business owner. The most common types of loans for an automotive repair shop owner are:

• Commercial real estate loan
• Equipment leasing
• Equipment Financing
• Merchant cash advance
• Line of credit

Resumes

Lenders will examine the resumes of all business owners. Include any business ownership experience as well as relevant work history. They want to lend money to a business with the necessary support structure.

Target Audience

Include a description of your target audience in your business plan. This is an analysis of your ideal customer. Defining your ideal customer makes it easier to develop a solid marketing strategy to attract that person to your shop.

A great business plan keeps you focused on long-term company goals. Review your business plan annually to remain focused. If you have changed direction, you must either redirect your business to the original intent or reevaluate your objects to reflect the new business model.