5 Tips of Starting an Automotive Repair Shop

Want to start a repair shop? Moving from being a technician to a shop owner? What do you need to know before starting your own shop? Today Bogi from All Girls Garage joins me with 5 tips to starting your own automotive repair shop. This is something many of us technicians consider at some point in our career

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[phillipboyle]

I disagree with tip number one and two... I am an independent shop owner. I am my own boss. I'm making more than triple the amount of money what I was making while working in someones garage. I work way less and have more time for life things. I am also an individual who enjoys wrenching... I enjoy being a technician and diagnosing cars. As for why customers come to my shop instead of any other big shops or dealership... Because people trust me more. People would rather give money to small local shop and support they're local small businesses. As for your last tip... If you were running around for 3 years going crazy and not making any money then you weren't doing things right. Starting up as an individual is way easier than trying to have employees and a huge operation. Trying to go big too soon can prevent you from being successful. Its best to stay small as long as you can making good money while keeping expenses down. The moment you hire anybody or get a partner you loose out on half the money in your pocket and you loose out on reinvesting that into the tools and equipment that you use.

[ja]

Wow! I just opened my own shop, in September it will be one year I been opened. A lot of the things y’all are saying is very discouraging 😔 I’m glad I didn’t watch this before I decided to take that leap. Starting my own shop was the best decision I’ve ever made. I don’t know about y’all but I’m making triple of what I used too working for someone, and business is going good! I heard other people encouraging on taking that leap and chasing your dreams those were the ones that encouraged me to do it. After listening to this one I was like wow y’all making it seem scary and discouraging to start your own business. I’m glad I didn’t hear this before I made the best decision in my life cause it would’ve put that fear in me and I probably wouldn’t of did it. J/S 🤷🏽‍♂️ come on guys let’s encourage not discourage 🤦🏻‍♂️

[danr]

Many mechanics/shops have the "we fix it right the first time" motto. Remember that "fixing it right the first time" does not mean that you demand your customer agrees to repair or "make new" every part or system that could possibly cause a comeback and cost you money. In other words, make sure fixing it right the first time also benefits the customer and
not just you.
Remember that being successful does not have to involve taking advantage of your employees or your customers but also remember that you must make a profit. Profit is not a dirty word. We see the 15.00 per hour figure mentioned a good bit in regards to fast food workers. Are you prepared to pay your hourly people a living wage (search what a living wage is in your area). Cycling multiple people through your business because you refuse to pay fairly (and your plan is to use people until they wise up, ) not a good business plan.
I have seen this "cycling employees" technique performed regularly by the sales dept. They hire a person in, get him to make sales to his/her family and friends. When the person has no more family and friends to sell to, they move a new person in to your spot.

[bedlamite]

when you run your own business, you can work half days. pick any 12 hours.

[Madamediesel]

I own my own business with no employees and I have more free time and money then I have ever had. My business is not just a job, and I am not tied to it. My overhead is affordable and I haven't taken loans out for anything ai couldn't afford.

[dwaynemathias]

Do NOT start a business with family or friends unless you want a war.

[Halibrand]

I started a automotive repair shop in Sweden right after school, Everyone from my shop class told me that i would fail within the first year including my teachers.. i would have to work 12h+ days to make money and its just not worth doing it. That was 13 years ago, im still in business. I work 8-5 Mon-Fri making three times more then my class mates does at the dealerships. I now have two employes, five bay shop with 4 two posts and a 4 post with alignment, i wrench around 5-6h each day, the rest of my day goes to taking care of customers, doing estimates, cleaning the shop, paying bills and doing choires. I was always bad at school, i hate numbers and rather wrench the rest of my life. I pay an auditor to do all my numbers, each monday i get an report of my expenses, income and profit for the past week and offcouse monthly and yearly reports aswell. I bought all my equipment with cash, first year i had a 1980s used 2 post lift and cheap basic tools, after 6 months i could buy a brand new 2 post cash and at that point i started making alot more money. This year 3 new shops in my city has failed, they bought too much equipment with money they did not have, and that caught up with they within the first year. So that would be my advice if you are looking into starting a new shop. Take it easy, invest in equipment when you can acctually afford them.

[michaelovers]

I have owned a shop for 20 years My wife is the Boss have been very successful I pick jobs I want .Never take a partner period hire a good accountant

[carlosvazquez]

Anyone thinking about Starting a Garage. If You have No actual business experience Don't Dive in !!! Keep your Daytime job, find yourself a small place and do it part-time. Start building a faithful strong client base, start off with maintanance and light repairs until you get more equipment. You will start getting a feel of running a garage and gathering some business experience at the same time. Do it Part-time until you have a Business plan, and you feel in your heart you ready to go out and do it Full-time. Make sure you have at least a girlfriend that can help you with the adminstrative duties. And DON'T take short cuts... You will end up paying it back in the long run, Good luck!

[gtobob]

Whew, I guess I'll just become a drug dealer where my killer instincts come into play, verbal contracts are binding, minimal overhead, and there are nearly non-existant legal regulations and standards other than those pesky laws which helps keep me alert, on my toes, and allows for me to have enormous profit potential at the retail/street level with minimal hours and maximum flexibility. Thanks for the advice!

[pringledinglefringle]

My advice to any new shop owners don't take in stuff your unsure of I'm looking to open a shop but a smaller one I'm gonna pay the right tech top dollar no aligning or tires imma set that up with a tire shop the cost of alignment rack and software is just to high I currently run a shop solo using identifix

[anthonycrasa]

All great advice. I have worked in our family owned shop my entire life, over 60 years in business. As the owners son I would say it's imperative to pace yourself for the long haul and stay goal oriented. Always have a goal to work towards. Goals develop direction and purpose for the business and the employees. Yes we all want to make money, yes we all want the cars to go out properly with no comebacks but have a vision for the business. Always ask whats next? How can we do it better? This lack of vision is admittedly our greatest mistake in our business so I thought I should share it.

[randygould]

i have started three different business and sold them all .now i work as a shop foreman on salary and i love it . it toke thirty years to figure it out i love to dig cars

[donaldisrael]

Yes, the joys of shop owner and operator.Two weeks working on crutches.Saturday and Sunday work, Ignorant and irrational customers.No good deed goes unpunished.Friends expect miracles that Jesus couldn't pull off.I had to give it up after 37 years.That was 10 years ago. I miss it every day.

[amccauley]

I'm a licensed Mobile Mechanic/Sole proprietor. I agreed with everything you said but the not having employee's just being a job. With planning and the correct insurance, I'm able to take more vacations now than ever. It really boils down to the work you put into it. The taxes that you pay is a little overwhelming though.

[Willbemeful]

I want to thank you both for making this video. For a LONG time I struggled with what I wanted to do with my life (due to the economic crash in 2005 when I graduated high school). For me I love cars, like to fix on them but didn't see myself doing that for the rest of my life. I always had a interest in accounting as a career but cars are my hobby and extreme interest for me. You always hear "do something that interest you or that you love to do". I think I have an answer to what I want to do now (Hell, I'm 33 Now!). But it's never to late to be great in my book. Thanks guys.

[gmans]

Thanks Guys! EZ...Look before you leap. #6 (as my Father in- Law sez) never, never, ever jeopardize
the roof over your head!

[s.j.]

I once considered opening my own shop, until I did the math. To be successful you have to make a certain amount of money per day. Divide that by the eight plus hours you work per day - that is what you have to charge for labor basically. Now what happens when business is slow or you get stuck with some difficult jobs? How do you make up for the money not made because of those factors? How & when can you take a vacation? Who is going to watch the shop? Can you put a sign on the door saying "closed for two weeks" and expect to have those customers when you get back? Lawsuits, non-paying customers, slow or fair mechanics, waiting on parts, expensive tools, etc. That is why when I go for an inspection I will tip the owner or tech because I know that it is not a money maker. I know the next time I go there they will gladly fit me in & not try to find "extras".

[DanielIles]

I COMPLETELY agree with you in that being a business owner isn't always as luxurious as it seems. I made a video on this but W2 income is usually WAY better and easier than to have to run a shop. Being a technician is so different than being a "business owner".

[crpopken]

Great video! Every time I think about how great it would be to own a shop, I remember how nice it is to be able to go home at night, or on the weekends and not have to think about the shop.