An auto mechanic is familiar with the intricacies of the car engine.
Operating an auto repair shop can be a very lucrative business if it is run correctly. In a nation where it's necessary to drive almost everywhere, people depend on their cars. A car that's out of commission means lost pay, missed appointments and general inconvenience. That's good news for a skilled auto mechanic. Solid mechanical skills can easily translate into owning your own business, however, running a successful auto repair shop requires adequate planning and solid business practices. There are several steps you can take to increase your chance of success.
Instructions
1. Get a good education. Nothing can replace the basics. With hands-on training, you possess a valuable commodity that is the foundation of your business. Don't skimp on education, and take every opportunity you can to keep learning. Take additional classes after you graduate from an accredited program to stay up to date on the latest techniques and expand your repertoire.
2. Gain some real world experience. While education is great, it is reinforced by time on the job. Work for someone else before you venture out on your own, and learn everything from auto repair to business management.
3. Save your money, and manage your credit. The more money you have to put into your business initially, the better. When a lending institution sees that you are willing to invest in yourself, they feel better about investing in you. An excellent credit standing helps too. Prove to the lender that you are able to manage your money and meet your obligations, and you will have a better chance of getting a loan if and when you need one.
4. Start looking for opportunities. As you drive around town, take note of locations for your shop. Scout around for shop owners who are ready to retire and sell an already thriving business to a newcomer. While it's fine to start from scratch, you will be light-years ahead if you can get in on a business that's already up and running. Consider a partnership in a smaller business looking to expand also.
5. Attend to the business details. Once you decide which route to take, you need to register your business with the IRS to obtain an employee identification number (EIN), register with the state Department of Taxation and register your business name with the Secretary of State. Also register with any local authorities in the location where you plan to do business. Don't let these things slide or try to get by without doing them. You'll only cause your self a headache when they catch up with you.
6. Set up a bank account for your business. You will usually need your EIN for this. Shop around for a bank which offers benefits to businesses such as the ability to deposit checks from a remote location, online bill payment and other benefits.
7. Hire a good staff. Remember how important it is to delegate. Many business owners try to do everything themselves and then experience burnout. If you have a staff of trusted employees, your business will run more smoothly, and you can focus on the work at hand.
8. Advertise your business. When you are on a tight budget, you need the most bang for your advertising buck. Hand your card out everywhere you go. Even if it's a breakdown at the side of the road, stop and give them your information. They might be so impressed they'll have their car towed to your shop. Look for cost-effective advertising. Small local newspapers, church bulletin advertising sections, flyers and discounts for customers who refer a friend, are all cheap ways to build your business as opposed to big-ticket advertising like billboards and television commercials.
9. Keep track of your money. Invest in a solid accounting program, and know where your money goes. In the early years, do not spend recklessly. Sock away as much money as you can to see you through the hard times, and maintain your same lifestyle. There is always time to be extravagant when your business is booming.
Tags: your business, your money, auto mechanic, auto repair, auto repair shop
