How to start Auto Repair shop in less Money (Things to know) – Autoacxy – Autoacxy

How to start Auto Repair shop in less Money (Things to know) – Autoacxy

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Last Updated on by S Prakash


Well, starting a Auto repair shop or a Car repair center (whatever you called it) can be a difficult business to start because it requires lot of money, skills and passion.

However, it’s not a big deal for those who have experience in this field like as Mechanic, Worker, Automobile or Mechanical Engineer, Etc.

But still there are lot of question which came into mind like- is it a Profitable Business to start? or how much investment require?  is there any license require? or  how much will i earn as an owner?

Well, if you want to know the answers of this type of questions and want to start your own Auto repair shop with less money; then you should checkout this things before starting a Auto repair shop.

So Here are the important things, which you must be aware of before staring a Auto repair shop- 

(Click on any of this sections to directly know about it) 

A) Qualities That Owner Should Have?

B) How Much Investment Required?

C) Auto Repair shop Profit Margin

Well, as you starting the Auto repair shop it is essential that you must know this qualities which every Auto repair shop owner mostly have-

A) Qualities That Owner Should Have:-

 start auto repair shop with no money

First Thing– To Build an Auto repair shop and to be a Owner of it, you must have a Few Year Work experience in this Field.

So that you can learn; how the works are regulated and how the things should be done.

Second Thing- As I Said that you must have an Work Experience in this field, But that doesn’t mean that the Qualification Experience is Useless.

You should have atleast a few year of qualification related to  this field like Degree, Diploma or Any Other Courses.

That’s because  the Automobile Industry is changing fast day by day and you cannot  survive in this field, if you  don’t have  some Basic Theoretical Knowledge.

Theoretical Knowledge means you must know the basics  of  Automobile to understand the modern Automobile concepts. So educate yourself before starting this type of business.

Well, after you prepare yourself the second most important thing you need to know is ‘Investment’. So here are the some investment which you have to do before starting an Auto repair shop-

B) How Much Investment Required:-

Now let us come to crucial part of the business planning which is investment; and if you have some financial knowledge, then you can start the auto repair shop with less money by taking a  Business loan.

Let’s Divide the Investment Section into Three Major Parts:-

  1. PLACE
  2. MANPOWER
  3. MACHINERY & EQUIPMENT’S.

1) PLACE

start auto repair shop with no money

Nowadays as you know the property Rates are Touching the sky; Let say the investment for the Place could be Huge as compare to others.

But, as it takes huge Investment, it  also plays an important role in your Business.

What to Do Buy or Rent?

Buying– It Simple, if you have the chance and you can manage the amount to buy the plot for your Repair Shop; then you should definitely buy it.

It would be great for your business  because it will give you Full Control on your business.

Renting– It Obvious, if you don’t have too much Finance or you won’t get a chance; then you should Rent or Lease a Plot.

But, Keep in mind while renting a place, you should calculate your Average profit Margin (how much you will  earn  after  starting  Repair shop) to come over all your expenses like Renting bill, Electricity Bills, Taxes, Etc. otherwise you will be in Debt.

NOTE– You should also make a Long Term Agreement like 10 to 15 Years to safeguard your Business.

 Location of Service center

You must be heard off, “that you should have a place near Highway or Crossroad” so that it will bring more Customers. Yes, it’s important but not necessary.

The only thing customers need from the Car Repair Shop is a Trustworthy Service with Reasonable PriceClick To Tweet

 For Example– When I working in Multi-car workshop in Mumbai, I notice that a Customer brings his Mahindra XUV having a Suspension problem which at-least takes 4 to 5 days to get repaired from our workshop due to unavailable parts; but  still he said OK!! take your time & repair as soon as possible.

After watching this I asked to our work manager why didn’t he go to Mahindra’s Authorized   Service Center; which is just opposite to our workshop where he can get his car repaired quickly as compare to us.

Then he said that we giving a best service to this customer  in reasonable price from past 3 years; that’s why he has a Trust on us and there are many customers who come to us far from 100 to 200 km.

NOTE:- Your trustworthy service will attract the customers not only the Location.

2) MANPOWER-

auto repair shop business plan

It was the basic need to run your Auto Repair Shop. Before finding  a place, you must be focus on finding the Professional Mechanics; So you can run your Auto Repair Shop Properly.

If you are thinking that,”were should I find best and Professional mechanics” that’s why I said, you must have work experience in this field. I hope you are smart enough to understand what I mean.

If you don’t find Professional mechanics; then you should find Amateur Mechanics, but he should be curious to learn things faster.

Investment for Manpower – You can calculate as

No. of Mechanics (6) x Salary (₹15 k) = ₹90 k 

No. of Workers (4) x Salary (₹12 k) = ₹48 k

And If you can play the role of Manager, then you can save up to ₹25 k to ₹35 k.

3) MACHINERY & EQUIPMENT’S- 

auto repair shop equipment list

Below is the auto repair shop equipment list which consists of some Machinery you must have from beginning to create a Professional image of your Auto repair shop  in front of the New customers.

1) Hydraulic Ram (₹50 k to 80 k) (At least 2)

2) Air Compressor (₹30 k to 40 k) (At least 2)

3) Diagnostic Device (₹1 to 2 lac) (for Multi-car)

4) Washing Bay (₹20 k to 25 k) (At least 1)

5) Vacuum Panting Boot (₹50 k to 60 k) (At least 1)

6) All Types of Mechanical Tools (₹1 Lacs to 1.5 Lacs)

NOTE:-  It’s an one time Investment for Auto repair shop equipment list.


So, by calculating all the three major investments – the overall investment you need is atmost ₹8 Lacs.

Now do your calculation by making some change in investment sections if want to do, then create your own business plan.

C) Auto Repair shop Profit Margin

auto repair shop profit margin

 Now, if  we talk about How much you can  Earn from  a Auto Repair shop, then it mostly depends  on your service and pricing.

Because if your customer like your service and pricing, then only you  can Earn Huge  Profit.

Usually, the Average Income of Auto Repair Shop is around ₹5 Lac to ₹8 Lacs per Month.

However, as I said if your customer likes your service and pricing, then they will always prefer your Auto Repair shop and also recommend others.

So in this case, you can earn up to ₹12 Lacs to ₹25 Lacs per month  after  you shop gets popular.

NOTE- The Profit Margins  can be more or less depends on your service and Loyalty.

 

So to be concluded, 

Gain some work experience in this  field and  by doing that you will learn lot of things  and also gets easier for you to start a Auto Repair shop   in  less money.

Otherwise,  starting  a Auto Repair shop can be a  big  failure for you.

If   you want to start a small Business in this field, then checkout this 5   small Automobile business for Beginners.

Well, If you still have any doubts regarding Auto repair shop Start-up? Then Feel free to tell us in the comments section below.

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