Auto repair shops need highly skilled workers.
With millions of drivers on the roads, there is an ongoing need for auto repair businesses to keep cars running safely and efficiently. Auto repair businesses represent an attractive startup venture for some investors or entrepreneurs with an interest in auto repair or special skills in the field. But auto repair businesses also represent risks for owners, investors and workers.
Business Risks
Auto repair businesses face some of the same business risks as any new venture. Competition with dealership service centers, independent mechanics and auto repair franchises, as well as do-it-yourself auto enthusiasts, is strong in many communities. An auto repair business without an established record of excellent service or good value may need to pursue aggressive marketing or pricing specials to attract customers and start paying off the high costs of specialized equipment and maintaining a staff and garage space. Defaulting on startup loans can ruin an entrepreneur's chance of starting an auto repair business.
Franchise Costs
Some auto repair businesses are franchises. This means that a national or regional company allows individual owners to pay a franchising fee to open a branch locally. Owners are responsible for construction costs, building leases, payroll and the cost of equipment. The parent company handles some marketing and gives the owner access to supply chains, recruitment and training resources, and a recognizable, trusted brand name. But hefty franchising fees can make it even more difficult for a new auto repair business to turn a profit. Those who perform poorly risk losing their franchise license.
Workforce Issues
An auto repair business can profit only if it has a knowledgeable, efficient staff of automotive technicians. As automakers introduce new systems, technicians must continually learn new repair and diagnostic methods. For example, onboard computer diagnostic systems can make car repair much easier but only after auto repair shops secure workers who can operate the software. Electric-hybrid drivetrains also require special training for services such as battery replacement. This may require auto repair businesses to pay for additional training and grant paid time off for employees to attend seminars.
Safety Risks
The auto repair business puts workers in hazardous situations that can be dangerous without proper safety training and equipment. An auto repair shop needs a strong safety policy in order to reduce the risk of workplace accidents. Insurance is also a must to protect the owners from liability in the event of an accident. In keeping with insurance policies, customers should not be allowed in the work area and only trained technicians should be allowed to operate the most dangerous equipment such as welding torches, lifts and hoists.
Tags: repair businesses, auto repair, repair business, auto repair, auto repair business
